Compensation ImpactThe company's profit was impacted by a $13 million performance-based compensation accrual, which affected quarterly margins and full-year guidance.
Margin GuidanceManagement's updated guidance for 2025 includes lower non-GAAP operating margins compared to prior guidance, influenced by the compensation accrual.
Profitability OutlookShares of Appfolio are down ~10% after hours in response to a lowered FY25 profitability outlook which incorporates elevated operating expenses.