Good afternoon. My name is Christine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the AppFolio, Inc. Announces Second Quarter 2019 Financial Results Conference Call. 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, Christine. Good afternoon, ladies and gentlemen. Thank you for joining us today as we report AppFolio's second quarter 2019 financial results. I am 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 website 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. Actual results or performance may be materially different from any results or performance expressed or implied by the forward-looking statements. 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. Please see our filings with the SEC for greater detail about risks and uncertainties. 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. Ida, please go ahead.

Thank you, Erica, and welcome to everyone joining us on the call today for AppFolio's second quarter 2019 financial results. Total revenue for the quarter increased by 35% over the same period one year ago to $63.6 million. GAAP net income was $23.2 million or $0.65 per diluted share, which includes an income tax benefit of $21.3 million, primarily related to the relief of a valuation allowance against deferred tax assets. Our second quarter performance reflects our continued investment in growth initiative in advance of expected revenue generation. We believe these growth initiatives will positively impact long-term shareholder value and include the following: AppFolio Property Manager Plus, our offering that serves larger, more complex real estate property manager customers; AppFolio Investment Management, which serves real estate investment managers; LISA, AppFolio's AI leasing assistant, which we developed from the technology acquired through the Dynasty acquisition and is now offered as a Value+ service to our real estate customers; and AppFolio utility management, which we developed from technology acquired through the WegoWise acquisition and is now also offered as a Value+ service to our real estate customers. Also included in our second quarter results is $1.7 million in noncash charges related to stock-based compensation. For those of you who track non-GAAP results, our Form 10-Q that was filed today includes more detailed information that you might find helpful in calculating non-GAAP results. Core solutions revenue was $21.6 million in the second quarter, a 27% increase year-over-year, primarily due to a 19% increase in property manager units under management related to a 12% increase in the number property manager customers. We closed the second quarter with 13,737 property manager customers managing 4.23 million units. As a reminder, we define real estate property manager customers as the number of customers subscribing to our core…

Thanks, Ida, and thanks to everyone for joining us today as we report our second quarter 2019 financial results. During the quarter, we continued on our mission to revolutionize vertical industry businesses by providing great software and services to our expanding customer base. We did this by maintaining our focus on delivering value to our customers through end-to-end customer experiences, product innovation, investments in technology and supporting our team and our thriving culture. In our real estate vertical, we maintained our focus on innovation and advancing our technology platform to provide systems of intelligent solutions that empower businesses to deliver excellent customer and employee experiences. During the second quarter, we released a new Value+ service, LISA, AppFolio's AI leasing assistant, which we built leveraging technology from our recent acquisition of Dynasty. We designed the AppFolio AI leasing assistant to address key challenges faced by property management companies, stemming from a high volume of rental inquiries that make it challenging to follow up on every lead in a timely fashion, which may result in missed revenue, poor customer experience and longer vacancy times. The AppFolio AI leasing assistant works 24/7 as part of a property's leasing team to provide thoughtful, personable responses via text messages and email. LISA communicates to prospective renters in real time and leverages integrated reporting to track leasing performance with accurate data, which can be used by our customers to drive increased occupancy rates and operational efficiency. Property managers utilizing the AppFolio AI leasing assistant stand to benefit from robust, need-to-lease data and insights, ultimately enhancing, optimizing and automating the leasing flow and extending their team's capabilities. Kayla Roeder, Chief Operating Officer of Cambridge Management Group and AppFolio property manager customer, who recently added AppFolio's AI leasing assistant says, “Our team's performance has increased dramatically with no…