Hello, ladies and gentlemen, and thank you for joining us today for the AppFolio's Third Quarter Financial Results Conference Call. I'm joined on the call by Erica Abrams. All lines have been placed on mute to prevent any background noise. [Operator Instructions] Thank you. Erica Abrams, you may begin your conference.

Thank you, Emily. Good afternoon, ladies and gentlemen. Thank you for joining us today as we report AppFolio's third quarter of fiscal year 2018 financial results. I'm joined today by Jason Randall and Ida Kane of AppFolio to discuss these results. This call is simultaneously being webcast on the Investor Relations section of our Web site at www.appfolioinc.com. Before we get started, I would like to call everyone's attention to our Safe Harbor policy. Please note that certain statements made on this call will be forward-looking statements, which are subject to considerable risks and uncertainties. These forward-looking statements may relate to future plans and financial conditions, results of operations, business forecasts and plans, strategic plans and objectives, and product development plans. Forward-looking statements involve numerous risks and uncertainties that may cause actual results or performance to be materially different from any results or performance expressed or implied by the forward-looking statements. We discuss risks and uncertainties in greater detail in the Risk Factor's section of our filings with the SEC. Forward-looking statements are based on assumptions as of today, and we assume no obligation to update any forward-looking statements after today, even if new information becomes available in the future. With that, I'll turn the call over to Ida. Please go ahead.

Thank you, Erica, and welcome to everyone joining us on the call today for AppFolio's third quarter 2018 financial results. Today, we reported third quarter revenue of $50.1 million, a 32% increase year-over-year and GAAP net income of $5.5 million or $0.16 per diluted share, a 50% increase year-over-year. Included in our third quarter 2018 results are $1.8 million of non-cash charges related to stock-based compensation. For those of you who track non-GAAP results, our Form 10-Q was filed today and includes more detailed financial data points that you may find helpful in calculating non-GAAP results on your own. In addition, as previously discussed, we adopted ASC 606 using the modified retrospective method on January 1, 2018. Our Form 10-Q also provides the reconciliation of the impact of the adoption of ASC 606 on our third quarter and year-to-date financial results. Core Solutions revenue was $17.9 million in the third quarter, up 22% from one year ago, primarily due to a 20% increase in Property Manager units under management related to a 12% increase in the number of Property Manager customers. We ended the third quarter with 12,640 Property Manager customers, managing an aggregate 3.7 million units in their portfolios compared to approximately 11,250 customers and 3.08 million units under management reported one year ago. The increase year-over-year in average size of net new customers acquired during the quarter is a result of our efforts to acquire higher value customers with more units under management. In the legal vertical, customer count increased 11% year-over-year to approximately 10,170. Customer-related metrics are also included in our 10-Q filing for your reference. Third quarter Value+ services revenue was $30.8 million, up 42% year-over-year. Each of the Value+ services increased year-over-year with the majority of our increase driven by electronic payment services, screening services,…

Thank you, Ida. Hello and thank you for joining us today. We continue to execute against our mission of revolutionizing vertical industry businesses by providing great cloud-based business management software and services to our customers. During the third quarter, we continued to deliver value to our customers via our rapid pace of innovation and by developing products and services that enable customer success in an ever-changing technology landscape. We are proud of our healthy culture and growing employee base and the recognition we received during the quarter. In our real estate vertical, we announced the acquisition of substantially all of the assets of WegoWise, a cloud based utility analytic software company serving building owners and third-party property managers to help them better manage operating and capital expenditures related to utilities. We expect that the acquisition will provide enhanced functionality to our AppFolio real estate customers over time. We also released AppFolio Property Manager Plus, a new tier of AppFolio Property Manager designed to empower larger organizations to gain key insights and make strategic decisions to drive the performance of their businesses at scale. Building on the ease of use, mobility and functionality of our award winning AppFolio Property Manager software, this expanded suite of capabilities includes a performance insights dashboard, configurable workflows and revenue management and optimization. To further support larger, more complex organizations, we enhanced user role functionality to add increased granular controls for each user definition and enable customers to better manage sensitive information and accommodate more roles within an organization at scale. We also continue to expand our functionality associations with capabilities that streamlined and digitized communications allowing association managers to track customers who consent to electronic delivery of official documents. In September, we hosted our sixth annual AppFolio Property Manager Customer Conference here in Santa Barbara.…

Ladies and gentlemen, that concludes our call today. You may access a replay of this call by dialing 855-859-2056 or 404-537-3406 for international callers. You may now disconnect.