Appfolio, Inc. · NASDAQ:APPF

Appfolio — Investor Day (October 2022)

84 slides from Appfolio's investor day presentation, Oct 12, 2022

Slide 1: AppFolio Investor Meeting October 12, 2022
83 2022 © AppFolio, Inc. Opening Video AppFolio Investor Meeting October 12, 2022 Welcome
Slide 2: Agenda
84 2022 © AppFolio, Inc. AppFolio Vision & Strategy Jason Randall President & CEO Customer-Centric Innovation: The Key to our Future Shane Trigg General Manager, Real Estate One Powerful Platform: The Key to Differentiation Will Moxley Sr. Vice President, Product 15 min break Partnering to Win: AppF
Slide 3: Safe Harbor Statement and Other Information
85 2022 © AppFolio, Inc. Safe Harbor Statement and Other Information This presentation contains forward-looking statements within the meaning of federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements made in this presentation are based prima
Slide 5: Our Mission
2 2022 © AppFolio, Inc. Our mission is to revolutionize vertical industry businesses by providing great software and services. Our Mission
Slide 6: Consistent Resilient Growth
3 2022 © AppFolio, Inc. Consistent Resilient Growth $65M $117M Real Estate Revenue CAGR 30%
Slide 7: Consistent Growth: Land, Expand, Retain, Scale
4 2022 © AppFolio, Inc. Expand Retain Scale Land Grow Consistent Growth
Slide 8: AppFolio Through the Years: Growth & Innovation
5 2022 © AppFolio, Inc. Screening Insurance Payments First Value Added Service AppFolio Through the Years: Growth & Innovation 2008 2009 2010 2011 2012 2015 2018 2020 Q1 2022 Q2 2022 AppFolio, Inc. Opens its Doors 2006 AppFolio Property Manager Launches Customer Websites IPO AppFolio Property Manage
Slide 9: Substantial Market for AppFolio Products
6 2022 © AppFolio, Inc. 51M Residential Units Substantial Market for AppFolio Products 2022 Unit TAM Residential Units Primary Source: Rental Housing Finance Survey (RHFS) 2018* Community Associations Units: Community Associations Institute 2021* *AppFolio estimate as of Q2 2022 28M Community Associ
Slide 10: Landing New Customers
7 2022 © AppFolio, Inc. Landing New Customers CAGR +9% 14,729 AppFolio Property Manager Customers ,87817
Slide 11: Experienced Leadership
8 2022 © AppFolio, Inc. Shane Trigg General Manager, Real Estate Experienced Leadership Jason Randall President and Chief Executive Officer Amy Meyer Chief People Officer Jon Walker Co-Founder & Chief Technology Officer Matt Mazza Chief Legal Officer Fay Sien Goon Chief Financial Officer Jay Choi Ch
Slide 12: Our Values Guide our Business
9 2022 © AppFolio, Inc. Simpler is better Great, innovative products are key to a great business Great people make a great company Listening to customers is in our DNA Small, focused teams keep us agile We do the right thing; It's good for business Our Values Guide our Business
Slide 13: Strategy for Long Term Growth
10 2022 © AppFolio, Inc. Keep Existing Customers Happy Acquire New Customers Expand Adoption & Use by Existing Customers Enter & Expand New Adjacent Markets Strategy for Long Term Growth Operational Excellence
Slide 14: Customer-Centric Innovation: The Key to our Future
11 2022 © AppFolio, Inc. Customer-Centric Innovation: The Key to our Future Shane Trigg General Manager, Real Estate
Slide 15: 51M Residential Unit TAM
12 2022 © AppFolio, Inc. Single-family Residential Multifamily Residential Affordable Housing Student Housing Senior Housing Primary Source: Rental Housing Finance Survey (RHFS) 2018* *AppFolio estimate as of Q2 2022 Total TAM rounded to the nearest million. 51M Residential Unit TAM Short Term Renta
Slide 16: Our Opportunity
13 2022 © AppFolio, Inc. Our Opportunity Expand Unit expansion Retain Product innovation, ease of use, exceptional service, customer experience Scale AppFolio Stack™, prop tech ecosystem Land Customers, units Grow ARPU through APM Plus, Value Added Services, product innovation
Slide 18: A Balanced Portfolio
15 2022 © AppFolio, Inc. SEGMENT SIZE DEFINITION SMB 50-499 units Mid-Market 500-1,499 units Corporate 1.5K+ units Associations 50 - 20K units A Balanced Portfolio AppFolio is positioned to build upon its SMB leadership as it further penetrates the market
Slide 19: Repeatable Process for Success
16 2022 © AppFolio, Inc. Customer feedback loop Disciplined market validation process Repeatable Process for Success APM Core & APM Plus Value Added Services Customer Service APPFOLIO TECHNOLOGY PLATFORM System of Intelligence System of Engagement System of Record
Slide 20: The Challenges We Solve
17 2022 © AppFolio, Inc. The Challenges We Solve Source: AppFolio Property Manager Top Challenges Research, 2022 01 02 03 Property Manager Top Challenges Operational Efficiency Maximizing Revenue & Profits HR, Staffing & Recruitment
Slide 21: Focus Areas
18 2022 © AppFolio, Inc. Focus Areas Property Type Expansion Customer Experience Product Innovation Differentiate Partnerships & Integrations
Slide 22: Focus Areas: Property Type Expansion
19 2022 © AppFolio, Inc. Focus Areas Property Type Expansion ● Accelerating the pace at which we grow net new units on our platform across our market segments ● Adding new capabilities that improve our ability to win upmarket ● Investing in new property types
Slide 23: Focus Areas: Customer Experience
20 2022 © AppFolio, Inc. Focus Areas Customer Experience ● Creating a product- driven, effortless service experience ● Enabling our customers to gain value fast, adopt more of our workflows and achieve their business goals
Slide 24: Focus Areas: Product Innovation
21 2022 © AppFolio, Inc. Focus Areas Product Innovation ● Multiplying our approach to innovation in solving new customer problems ● Creating new revenue streams
Slide 25: Focus Areas: Differentiate
22 2022 © AppFolio, Inc. Focus Areas Differentiate Continuing innovation in data, mobile, and AI
Slide 26: Focus Areas: Partnerships & Integrations
23 2022 © AppFolio, Inc. Focus Areas Partnerships & Integrations Giving larger, upmarket customers greater ability to manage complex portfolios, and run their entire business from a centralized hub
Slide 27: Our Strategy
24 2022 © AppFolio, Inc. Continue SMB Leadership Win Upmarket Grow Value Added Services Our Strategy
Slide 28: Value Added Services Growth
25 2022 © AppFolio, Inc. Value Added Services Growth Expansion of Value Added Services: ● Grows revenue per unit ● Increases customer retention
Slide 29: ARPU Growth
26 2022 © AppFolio, Inc. ARPU Growth Chris Force, CPA, MBA Director of Accounting and Business Operations Alexander Forrest Investments, LLC “We are big fans of AppFolio and AI Leasing Assistant, Lisa in particular as it has provided value to our property owners and allows AFI to be much more cost e
Slide 30: AppFolio is Poised to Win
27 2022 © AppFolio, Inc. Search Volume by Brand AppFolio is Poised to Win AppFolio Real Page EntrataYardi Buildium Source: trends.google.com
Slide 31: Strategy for an Efficient Go-to-Market
28 2022 © AppFolio, Inc. Strategy for an Efficient Go-to-Market Product Strategy Development Messaging Marketing Sales Onboarding Client Services Market Segments Evaluation, win and switching capture rates Sales Execution Bookings attainment and wallet share Time to Value Attach rates, Value Added S
Slide 32: One Powerful Platform: The Key to Differentiation
29 2022 © AppFolio, Inc. One Powerful Platform: The Key to Differentiation Will Moxley Sr. Vice President, Product
Slide 33: Addressing Our Customers' Challenges
30 2022 © AppFolio, Inc. Addressing Our Customers’ Challenges Source: AppFolio Property Manager Top Challenges Research, 2022 01 02 03 Property Manager Top Challenges Operational Efficiency Maximizing Revenue & Profits HR, Staffing & Recruitment
Slide 34: Product Vision
31 2022 © AppFolio, Inc. Property Managers ResidentsInvestors & Owners Create a world where choosing, living in, owning, and managing communities feels magical and effortless, freeing people to thrive. Product Vision
Slide 35: Why Does That Matter?
32 2022 © AppFolio, Inc. Source: Institute for Real Estate Management Income Expense/IQ Report Why Does That Matter? Payroll is the #2 expense For residential property managers, just after taxes.
Slide 36: 40% of time spent on busywork
33 2022 © AppFolio, Inc. 40% Of time property management staff reportedly spend on “busywork” according to a survey by AppFolio Staff spend almost two days per week “turning the crank” Source: AppFolio Property Manager March 2022 Property Management Employee Experience Survey
Slide 38: An Integrated Platform
35 2022 © AppFolio, Inc. Platform Layer Application Layer Common Components for a Better Experience: Portals & Mobile | Communication | Documents | Reporting | Search | Workflows | Identity Cloud Operations for Reliability | Performance | Security Tooling for Rapid Innovation | Constant Updates AI F
Slide 39: Innovation Over the Years
36 2022 © AppFolio, Inc. AppFolio Stack™ FolioGuard Security Deposit Alternative Mobile Inspections Report Builder Bank Feed PDF Leases Project Budgeting Cost Centers Security Deposit Return via eCheck Flexible Screening Home Sale Docs integration (CA) Bank Transfers (CA) Smart Maintenance Unit Turn
Slide 40: Three Major Themes of Innovation
37 2022 © AppFolio, Inc. 01 02 03 Three Major Themes of Innovation Expanding Upmarket AI Differentiation Customer Experience
Slide 42: AppFolio StayManager
39 2022 © AppFolio, Inc. AppFolio StayManager™ +35% increase in the industry average annual revenue per short-term rental last year Source: AirDNA, The 2022 Vacation Rental Outlook Report In Development
Slide 43: Affordable Housing Platform
40 2022 © AppFolio, Inc. A Single Platform to Efficiently Manage Affordable Housing & Stay Compliant In Development
Slide 45: AppFolio Stack Partners
42 2022 © AppFolio, Inc. IoT & Smart PropertiesMarketing & LeasingMaintenance Utility Management Compliance appfolio.com/stack AppFolio Stack™ Partners New
Slide 52: Customer Experience
49 2022 © AppFolio, Inc. 01 02 03 Expanding Upmarket AI Differentiation Customer Experience
Slide 56: Income Verification in AppFolio Screening
53 2022 © AppFolio, Inc. 75% of time saved in the application review process.* Income Verification in AppFolio Screening Up to Product Improvement *Customer response in an AppFolio product validation interview
Slide 57: Three Major Themes of Innovation
54 2022 © AppFolio, Inc. 01 02 03 Three Major Themes of Innovation Expanding Upmarket AI Differentiation Customer Experience
Slide 58: Partnering to Win: AppFolio Customer Panel
56 2022 © AppFolio, Inc. Partnering to Win: AppFolio Customer Panel Shane Trigg General Manager, Real Estate
Slide 59: Brooks Baskin, 2B Living, Inc.
57 2022 © AppFolio, Inc. Brooks Baskin Founder & CEO 2B Living, Inc. San Carlos, CA 3000 Units Customer since 2016 Single-family, Multifamily, Commercial Screening Premium Leads Payments Smart Maintenance Insurance Automated AP Collections Website IM
Slide 60: Gozen Hartman, Fairlawn Management, Inc.
58 2022 © AppFolio, Inc. Gozen Hartman Co-Founder and Chief Operating Officer Fairlawn Management, Inc. Champaign, IL 4800 Units Customer since 2019 Single-family, Multifamily, Commercial, Student Housing IM Screening Premium Leads Payments Smart Maintenance Insurance AI Leasing Assistant, Lisa Coll
Slide 61: JT Morrison, Horizons Asset Management
59 2022 © AppFolio, Inc. JT Morrison President Horizons Asset Management, LLC Columbus, Ohio 1100 Units Customer since 2016 Multifamily, Commercial Screening AI Leasing Assistant, Lisa Payments Collections Insurance Website Smart Maintenance
Slide 62: Ross Nelson, Marshall Reddick Real Estate
60 2022 © AppFolio, Inc. Ross Nelson CEO/Broker Marshall Reddick Real Estate Newport Beach, CA 2400 units Customer since 2020 Single-family, Multifamily IM Screening Collections Payments Insurance
Slide 63: Marco Vartanian, Sullivan Property Management
61 2022 © AppFolio, Inc. Marco Vartanian President & CEO Sullivan Property Management Santa Ana, CA 5100 Units Customer since 2018 Single-family, Multifamily, Commercial Screening Smart Maintenance Payments Insurance
Slide 64: AppFolio Customer Panel
62 2022 © AppFolio, Inc. Payments Screening Insurance Collections AI Leasing Assistant, Lisa Premium Leads Smart Maintenance Website AppFolio Customer Panel Gozen Hartman Co-Founder and Chief Operating Officer Fairlawn Management, Inc. Champaign, IL 4800 Units Customer since 2019 Single-family, Mult
Slide 67: Path to Profitability, Resilient Business, Consistent Revenue Growth
65 2022 © AppFolio, Inc. Path to Profitability Resilient Business FOCUS AREAS Consistent Revenue Growth
Slide 68: Consistent Revenue Growth
66 2022 © AppFolio, Inc. Consistent Revenue Growth Expand Unit expansion Retain Product innovation, ease of use, exceptional service, customer experience Scale AppFolio Stack™, Prop tech ecosystem Land Customers, Units Grow ARPU through APM Plus, Value Added Services, product innovation $65M $117MRe
Slide 69: Landing New Units, Growing ARPU
67 2022 © AppFolio, Inc. Landing New Units Growing ARPU CAGR Q1 FY20 to Q2 FY22 ARPU Units Real Estate Revenue+ 12% 17% 30%
Slide 70: Expanding Unit Growth Focused on Residential Units
68 2022 © AppFolio, Inc. Expanding Unit Growth Focused on Residential Units 5M 7M AppFolio Property Manager Units by Segment CAGR 17% Q1 FY20 Q2 FY22 Residential Corporate 1,500+ units Residential Mid-Market 500-1,499 units Residential SMB 50-499 units Community Associations
Slide 71: Long Runway for Future ARPU Growth
69 2022 © AppFolio, Inc. W H O LE N U M B E R S AverageLowest 100 Customers ~$20 Highest 100 Customers ~$110 Long Runway for Future ARPU Growth Average ARPU Numbers for Q2 ‘22 Average ARPU Increased AppFolio Property Manager Plus adoption & Value Added Services usage
Slide 72: Strong Growth Potential with APM Plus
70 2022 © AppFolio, Inc. Strong Growth Potential with APM Plus ~6x APM Plus Corporate segment penetration vs. other segments Higher ARPU APM Plus vs APM Core APM Plus customer ARPU APM Core customer APRU APM Plus Core ARPU Value Added Services ARPU Value Added Services ARPU APM Core ARPU +60%
Slide 73: Resilient Business
71 2022 © AppFolio, Inc. Revenue from Entire Real Estate Lifecycle High Retention Customers Strong Balance Sheet Resilient Business 3 Workflows
Slide 74: Deeply Embedded in the Real Estate Life Cycle
72 2022 © AppFolio, Inc. Deeply Embedded in the Real Estate Life Cycle Residents Leasing Maintenance Property Managers Vendors Investors/Owners Accounting
Slide 75: Revenue From the Entire Real Estate Life Cycle
73 2022 © AppFolio, Inc. Revenue From the Entire Real Estate Life Cycle FY19 FY22 H1 Residents Property Manager & Owners Real Estate Revenue Mix by Payer Type Revenue proportions are calculated based on payer type. 0% 100%
Slide 76: Strong Debt-free Balance Sheet
74 2022 © AppFolio, Inc. Strong Debt-free Balance Sheet FY19 FY22 H1 Cash & Investments $51M $168M
Slide 78: Path to Profitability Examples
76 2022 © AppFolio, Inc. Cost of Revenue Best-in-class client services using intelligent automation and increased self-service ● Service excellence at scale accelerates time to value ● Increase self-serve to deliver realtime support Result - Positive Free Cash Flow Path to Profitability EXAMPLES Sal
Slide 79: Strategy for Long Term Growth
77 2022 © AppFolio, Inc. Operational Excellence Keep Existing Customers Happy Acquire New Customers Expand Adoption & Use by Existing Customers Enter & Expand New Adjacent Markets Strategy for Long Term Growth
Slide 83: Metric Definitions
81 2022 © AppFolio, Inc. METRIC NAME DEFINITION WHY IT MATTERS ARPU Average annualized revenue per unit. (APM Core revenue + APM Value added services revenue) divided by average ending active units on platform for the specified period. Provides insight into how much revenue recognized, on average, f
Slide 84: Revenue by Industry
82 2022 © AppFolio, Inc. Revenue by Industry Industry Q1-FY20 Q2-FY20 Q3-FY20 Q4-FY20 FY20 Real Estate Revenue $65 $73 $75 $72 $285 Legal Revenue* 8 8 9 - 25 Total Revenue $73 $81 $84 $72 $310 - - - - Industry Q1-FY21 Q2-FY21 Q3-FY21 Q4-FY21 FY21 Real Estate Revenue $79 $89 $96 $96 $359 Legal Revenu

Appfolio — Investor Day (October 2022) on 6ix

Appfolio — Investor Day (October 2022)

Slide 1: AppFolio Investor Meeting October 12, 2022

Slide 2: Agenda

Slide 3: Safe Harbor Statement and Other Information

Slide 4: AppFolio Vision & Strategy

Slide 5: Our Mission

Slide 6: Consistent Resilient Growth

Slide 7: Consistent Growth: Land, Expand, Retain, Scale

Slide 8: AppFolio Through the Years: Growth & Innovation

Slide 9: Substantial Market for AppFolio Products

Slide 10: Landing New Customers

Slide 11: Experienced Leadership

Slide 12: Our Values Guide our Business

Slide 13: Strategy for Long Term Growth

Slide 14: Customer-Centric Innovation: The Key to our Future

Slide 15: 51M Residential Unit TAM

Slide 16: Our Opportunity

Slide 17: Our Customers

Slide 18: A Balanced Portfolio

Slide 19: Repeatable Process for Success

Slide 20: The Challenges We Solve

Slide 21: Focus Areas

Slide 22: Focus Areas: Property Type Expansion

Slide 23: Focus Areas: Customer Experience

Slide 24: Focus Areas: Product Innovation

Slide 25: Focus Areas: Differentiate

Slide 26: Focus Areas: Partnerships & Integrations

Slide 27: Our Strategy

Slide 28: Value Added Services Growth

Slide 29: ARPU Growth

Slide 30: AppFolio is Poised to Win

Slide 31: Strategy for an Efficient Go-to-Market

Slide 32: One Powerful Platform: The Key to Differentiation

Slide 33: Addressing Our Customers' Challenges

Slide 34: Product Vision

Slide 35: Why Does That Matter?

Slide 36: 40% of time spent on busywork

Slide 37: Magical & Effortless

Slide 38: An Integrated Platform

Slide 39: Innovation Over the Years

Slide 40: Three Major Themes of Innovation

Slide 41: Expanding Upmarket

Slide 42: AppFolio StayManager

Slide 43: Affordable Housing Platform

Slide 44: AppFolio Stack

Slide 45: AppFolio Stack Partners

Slide 46: Centralization & Automation

Slide 47: Report Builder

Slide 48: AI Differentiation

Slide 49: AI Magic

Slide 50: Bank Feed

Slide 51: Smart Ensure

Slide 52: Customer Experience

Slide 53: Security Deposit Alternative

Slide 54: Security Deposit Refund

Slide 55: Apple Pay

Slide 56: Income Verification in AppFolio Screening

Slide 57: Three Major Themes of Innovation

Slide 58: Partnering to Win: AppFolio Customer Panel

Slide 59: Brooks Baskin, 2B Living, Inc.

Slide 60: Gozen Hartman, Fairlawn Management, Inc.

Slide 61: JT Morrison, Horizons Asset Management

Slide 62: Ross Nelson, Marshall Reddick Real Estate

Slide 63: Marco Vartanian, Sullivan Property Management

Slide 64: AppFolio Customer Panel

Slide 65: Thank You AppFolio Customers!

Slide 66: Financial Overview

Slide 67: Path to Profitability, Resilient Business, Consistent Revenue Growth

Slide 68: Consistent Revenue Growth

Slide 69: Landing New Units, Growing ARPU

Slide 70: Expanding Unit Growth Focused on Residential Units

Slide 71: Long Runway for Future ARPU Growth

Slide 72: Strong Growth Potential with APM Plus

Slide 73: Resilient Business

Slide 74: Deeply Embedded in the Real Estate Life Cycle

Slide 75: Revenue From the Entire Real Estate Life Cycle

Slide 76: Strong Debt-free Balance Sheet

Slide 77: Path to Profitability

Slide 78: Path to Profitability Examples

Slide 79: Strategy for Long Term Growth