Good afternoon. Thank you for standing by, and welcome to AppFolio Inc.'s Third 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, Gigi. 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 Third 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 we get started, I would like to remind everyone the 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 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 has been 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 third quarter earnings release posted on the Investor Relations section of our website. With that, I'd like to turn the call over to Shane Trigg. Shane, please go ahead.

Thanks, Lori, and welcome to our third quarter 2023 earnings call. This quarter, we continued to execute our strategy, while delivering profitable growth. I'm pleased to report that, revenue was up 32% year-over-year to $165 million and we now serve more than 7.8 million units. In addition, we improved our margins driving non-GAAP operating margin to 16% and non-GAAP free cash flow margin to 20%. These results are a reflection of our commitment to delivering industry-leading innovation to our customers while being disciplined operators. Since our last call, we reduced the size of our team by nearly 9% a decision that while difficult better positions us to focus on the real estate industry and efficiently execute the opportunity in front of us. Our pursuit of profitable growth is in service of our customers because to be the innovative long-term partner they can rely on to power their businesses we must be a healthy resilient business ourselves. We are accelerating the pace of our innovation with advancing technology like generative AI delivering on our customers' needs through a wealth of new product functionality and creating exceptional value to help our customers perform through all market conditions and thrive in any environment. Just last month we announced new and meaningful ways to leverage our platform at the sold-out 11th Annual AppFolio customer conference. More than 800 customers representing over 1.4 million units came to customer conference to learn how to put our technology, partnerships and services to work so they can drive more meaningful outcomes for their businesses. Customers left the conference with a deeper understanding of how we're innovating to streamline critical workflows and help them operate more efficiently. One of the most exciting innovations announced at the customer conference stage was Realm-X our new conversational interface leveraging generative AI to…

Thank you, Shane. The third quarter demonstrates success in our focus on achieving profitable revenue growth. We delivered revenue growth of 32% year-over-year to $165.4 million and generated free cash flow amounting to 20.3% of revenue. Core solutions revenue was $39.8 million in Q3 a 17% year-over-year increase driven by new customers and additional total units on platform along with continued adoption of AppFolio Property Manager Plus. At the end of the third quarter we managed approximately 7.8 million units from 19,418 customers compared to 7.1 million units from 18,109 customers a year earlier. This represents a 7% increase in customers and a 10% increase in ending units. For Value Added Services, revenue in Q3 grew 39% year-over-year to $123.2 million. This growth in our payments business was a result of increased online rent payments adoption and higher volume rent transactions paid using a debit or credit card and our decision to stop our eCheck fees. Additionally, risk mitigation and screening grew in line with our seasonal Q3 expectations. Our Q3 results demonstrate our ability to grow profitably in spite of macroeconomic conditions. Our innovation and reach from property managers to investors and owners to vendors and residents makes us resilient. Turning to spending. We exited the quarter with 1,683 employees which is a decline of 4% compared to the third quarter of 2022 and this includes 149 employees that were impacted from our previously announced reduction in force as Shane mentioned earlier. The mid-quarter restructuring of head count affected all areas of the business and while difficult aligns our structure risk strategy to empower our employees to better serve our customers. Non-GAAP cost of revenue exclusive of depreciation and amortization was 36% of revenue compared to 40% in the third quarter of last year. Turning now to non-GAAP operating…