Good afternoon. Thank you for standing by, and welcome to AppFolio, Inc. Second Quarter 2023 Financial Results Conference Call. Please be advised today's conference is being recorded, and a replay will be available on AppFolio's Investor Relations website. I would now like to hand the conference over to Lori Barker, Investor Relations.

Thank you. Good afternoon, everyone. I'm Lori Barker, Investor Relations for AppFolio, and I'd like to thank you for joining us today as we report AppFolio's second quarter 2023 financial results. With me on the call today are Shane Trigg, AppFolio's President and CEO; and Fay Sien Goon, AppFolio's Chief Financial Officer. This call is simultaneously being webcast on the Investor Relations section of our website at appfolioinc.com. Before I get started, we would like to remind everyone of AppFolio's safe harbor policy. Comments made during this conference call and webcast contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections or other characterizations of future events, including financial projections, future market conditions or future product enhancements or development is a forward-looking statement. AppFolio's actual future results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in our SEC filings. AppFolio assumes no obligation to update any such forward-looking statements, except as required by law. For greater detail about risks and uncertainties, please see our SEC filings, including our Form 10-K for the fiscal year ended December 31, 2022, which was filed with the SEC on February 9, 2023. In addition, this call includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our second quarter earnings release posted on the Investor Relations section of our website. With that, I will turn the call over to Shane Trigg. Shane, please go ahead.

Thanks, Lori, and welcome to our second quarter 2023 earnings call. This quarter, we continued to execute our strategy while continuing to make progress toward increasingly profitable growth. Revenue saw a healthy 25% year-over-year increase, ending at $147.1 million. Units on platform grew to approximately $7.7 million and at quarter end, we had 19,145 customers. Our non-GAAP operating margin continued to move further into positive territory, growing from 1% this time last year to 6.4% in Q2 this year. Free cash flow also improved to approximately 4.2%, up from negative 1.2% in the same quarter last year. Our results this quarter primarily stemmed from two interrelated drivers. First is our pace of innovation. We believe business is undergoing a new wave of digital transformation, thanks to the rapid advancement in generative AI ushered in by large language models. The promise this holds for property management companies is clear. In a recent AppFolio survey of more than 2,000 property managers, we heard that employees are spending more than one-third of their time on repetitive tasks they consider busy work. By automating those tasks with generative AI solutions, AppFolio is able to give customers time back to deliver a better resident experience and improve overall job satisfaction. We're in our fifth year of making meaningful R&D investments in AI through products like Smart Maintenance, our AI leasing assistant, Lisa, Bank Feed, Smart Bill Entry, Folio Guard Smart Insure and more. And now we have AppFolio Realm, which unites all of our AI-powered capabilities and better positions us to deliver on our product vision to create a world we're choosing, living in, investing in, owning and managing communities feels magical and effortless freeing people to thrive. As a part of that Folio Realm, we're piloting a new conversational interface powered by large language…

Thank you, Shane. We are pleased with our revenue growth rate and increasing profitability in the second quarter. As you heard from Shane, we delivered revenue growth of 25% year-over-year to $147.1 million and grew our free cash flow to 4.2% of revenue. Core Solutions revenue was $38.5 million in Q2, a 19% year-over-year increase driven by new customers, additional total units on platform and continued adoption of AppFolio Property Management Plus or APM Plus, particularly as we move up market. At the end of the second quarter, we managed approximately 7.7 million property management units from 19,145 property management customers compared to 6.8 million property management units from 17,878 property management customers a year earlier. This represents a 7% increase in customers and a 13% increase in our ending property management units. Value-added services revenue in Q2 grew 30% year-over-year to $106.1 million. While still attractive, the payments business growth rate was more moderate than in the previous few quarters. As we indicated in the last quarter's call, our 2023 guidance seems that the high adoption rate of cards for payments over the past few years will normalize in 2023. Also, we saw increased adoption and utilization of our risk mitigation product called Folio Guard and screening services as well as a continued benefit from the rise in property management units under management. Turning to spending. Headcount decreased 3% year-over-year to 1,723 at the end of this quarter due to normal attrition and a slower hiring rate as we strategically replace and enhance key positions with an eye to its operational efficiency and our pace of innovation. In Q2 of 2023, the non-GAAP cost of revenue, exclusive of depreciation and amortization, was 39% of revenue compared to 40% in the second quarter of 2022. Our product mix has continued…

Thank you. Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.