Appfolio Inc (APPF) 2023 Q3 法說會逐字稿

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.

午安.感謝您的耐心等待，歡迎參加 AppFolio, Inc. 的 2023 年第三季財務業績電話會議。請注意，今天的會議正在錄製中，重播將在 AppFolio 的投資者關係網站上提供。

I would now like to hand the conference over to Lori Barker, Investor Relations.

我現在想將會議交給投資者關係部門的 Lori Barker。

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.

謝謝你，吉吉。大家下午好。我是 AppFolio 投資者關係部門的 Lori Barker，感謝您今天加入我們，報告 AppFolio 2023 年第三季的財務表現。

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.

今天與我一起參加電話會議的是 AppFolio 總裁兼執行長 Shane Trigg；以及 AppFolio 財務長 Fay Sien Goon。本次電話會議同時在我們網站 appfolioinc.com 的投資人關係部分進行網路直播。

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.

在開始之前，我想提醒大家 AppFolio 的安全港政策。本次電話會議和網路廣播中發表的評論包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，並存在風險和不確定性。任何涉及未來事件的預期、預測或其他特徵的聲明，包括財務預測、未來市場狀況或未來產品增強或開發，均屬於前瞻性聲明。

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.

AppFolio 的實際結果可能因任何原因與此類前瞻性聲明中表達的結果存在重大差異，包括我們在 SEC 文件中列出的結果。 AppFolio 不承擔更新任何此類前瞻性聲明的義務，除非法律要求。有關風險和不確定性的更多詳細信息，請參閱我們向 SEC 提交的文件，包括我們於 2023 年 2 月 9 日向 SEC 提交的截至 2022 年 12 月 31 日財年的 10-K 表格。

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.

此外，本次電話會議還包括非公認會計準則財務指標。這些非公認會計原則財務指標與最直接可比較的公認會計原則指標的對帳包含在我們網站投資者關係部分發布的第三季財報中。

With that, I'd like to turn the call over to Shane Trigg. Shane, please go ahead.

說到這裡，我想把電話轉給 Shane Trigg。謝恩，請繼續。

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.

謝謝 Lori，歡迎參加我們的 2023 年第三季財報電話會議。本季度，我們繼續執行我們的策略，同時實現獲利成長。我很高興地向您報告，營收年增 32%，達到 1.65 億美元，我們現在服務的設備數量超過 780 萬台。此外，我們還提高了利潤率，將非 GAAP 營業利潤率提高至 16%，將非 GAAP 自由現金流利潤率提高至 20%。這些結果反映了我們致力於為客戶提供業界領先的創新，同時成為紀律嚴明的營運商。

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.

自從上次電話會議以來，我們將團隊規模縮小了近 9%，這一決定雖然困難重重，但卻能讓我們更好地專注於房地產行業並有效地抓住我們面前的機會。我們對獲利成長的追求是為客戶服務，因為要成為他們可以信賴的創新長期合作夥伴，為他們的業務提供動力，我們自己必須是一個健康、有彈性的企業。

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.

我們正在利用生成式人工智慧等先進技術加快創新步伐，透過豐富的新產品功能滿足客戶的需求，並創造卓越的價值，幫助我們的客戶在所有市場條件下表現出色並在任何環境中蓬勃發展。

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.

就在上個月，我們在第 11 屆年度 AppFolio 客戶大會上宣布了利用我們平台的新的、有意義的方式。代表超過 140 萬台設備的 800 多名客戶參加了客戶會議，了解如何運用我們的技術、合作夥伴關係和服務，以便為他們的業務帶來更有意義的成果。會議結束後，客戶對我們如何透過創新來簡化關鍵工作流程並幫助他們更有效率地運作有了更深入的了解。

One of the most exciting innovations announced at the customer conference stage was Realm-X, our new conversational interface leveraging generative AI to let users interact with AppFolio in plain language. We are currently piloting Realm-X with a select group of customers, ahead of its wider availability in 2024.

在客戶會議階段宣布的最令人興奮的創新之一是 Realm-X，我們的新對話介面利用生成式人工智慧，讓使用者以簡單的語言與 AppFolio 進行互動。我們目前正在與選定的一組客戶一起試用 Realm-X，以便在 2024 年更廣泛地提供。

Realm-X has 3 components we refer to as ask, tell and teach. Customers can ask Realm-X a question. They might ask for a report like a rent roll or can ask questions like, which vendors are available for a maintenance requests. They can tell Realm-X to do something for them like drafting an e-mail to residents or requesting vendor quotes. And they can teach Realm-X a common workflow automating it so their teams can focus on higher value work like building resident relationships and driving business performance.

Realm-X 有 3 個組成部分，我們稱之為詢問、講述和教導。客戶可以向 Realm-X 詢問問題。他們可能會要求提供租金清單之類的報告，或者可以提出諸如哪些供應商可以滿足維護請求之類的問題。他們可以告訴 Realm-X 為他們做一些事情，例如起草發給居民的電子郵件或要求供應商報價。他們可以向 Realm-X 教授一個通用的工作流程，使其自動化，讓他們的團隊可以專注於更高價值的工作，例如建立居民關係和提高業務績效。

Our early investment in AI is paying off. Last quarter, we talked about AppFolio Realm, representing our full suite of AI capabilities. From traditional AI models, we use in capabilities like Smart Bill Entry to new generative AI models employed in Realm-X.

我們對人工智慧的早期投資正在獲得回報。上個季度，我們討論了 AppFolio Realm，它代表了我們全套的 AI 功能。從傳統的人工智慧模型，我們使用智慧帳單輸入等功能到 Realm-X 中採用的新的生成人工智慧模型。

We're now at a point where 85% of customers using 1 or more of Realm's capabilities, more than twice the adoption we saw just 1 year ago. Going forward, the generative AI power of Realm-X will increase efficiency for our customers by eliminating repetitive tasks, freeing teams to focus on what matters, people and performance.

現在，85% 的客戶使用一種或多種 Realm 功能，是 1 年前採用率的兩倍多。展望未來，Realm-X 的生成式人工智慧能力將消除重複性任務，讓團隊專注於重要的事情、人員和績效，從而提高客戶的效率。

We recently surveyed more than 2,300 U.S. property management company employees, an overwhelming 88% agree that technology makes their job easier, indicating that almost 1/3 of their typical work week could be optimized or streamlined through technology. According to 1 customer conference attendee, Karyn Seabrooke, owner and realtor at Key Realty and Property Management in Oklahoma City with 500 units on AppFolio.

我們最近對2,300 多名美國物業管理公司員工進行了調查，絕大多數88% 的員工認為科技讓他們的工作變得更輕鬆，這表明他們每週的典型工作時間有近1/3 可以透過技術得到優化或簡化。一位客戶會議與會者 Karyn Seabrooke 表示，他是俄克拉荷馬城 Key Realty and Property Management 的業主兼房地產經紀人，在 AppFolio 上擁有 500 個單位。

And I quote, "AppFolio is always thinking ahead. We are so pleased with the new AI integration that will help propel our business in the future. Our clients will be impressed, and we are so excited for the new updates." We're grateful to all of our customers for choosing to grow their businesses with AppFolio and trusting us with their future.

我引用的是：「AppFolio 總是超前思考。我們對新的人工智慧整合感到非常高興，它將有助於推動我們未來的業務。我們的客戶將會印象深刻，我們對新的更新感到非常興奮。”我們感謝所有客戶選擇透過 AppFolio 發展他們的業務，並將他們的未來託付給我們。

In addition to announcing Realm-X, we continue delivering innovation that builds engaging and lasting customer relationships, the first of our 3 strategic pillars. In fact, in the past year, we have deployed more than 300 features that customers directly requested through our user community, demonstrating our commitment to our value that listening to customers is in our DNA.

除了宣布 Realm-X 之外，我們還繼續提供創新，建立有吸引力和持久的客戶關係，這是我們 3 個策略支柱中的第一個。事實上，在過去的一年裡，我們已經部署了 300 多項客戶透過我們的用戶社群直接請求的功能，證明了我們對價值觀的承諾，即傾聽客戶的聲音是我們的 DNA。

For owners, we provided more transparency and on-demand access to their property data, documents and action items. They can easily see and improved work order estimates and electronically sign and reference important documents like their management agreement. We're excited about the potential of this innovation to nurture more strategic relationships between property managers and owners.

對於業主來說，我們提供了更高的透明度和對其財產資料、文件和行動項目的按需存取。他們可以輕鬆查看和改進工單估算，並以電子方式簽署和參考管理協議等重要文件。我們對這項創新在物業經理和業主之間培養更具策略性關係的潛力感到興奮。

For residents, we recently upgraded the maintenance intake process. Maintenance intake now uses AI to triage and get to the root of a residence maintenance issue. It helps property management teams quickly identify and understand problems, eliminating the need for follow-up and clarification and speeds up time to resolution.

對於居民，我們最近升級了維護接收流程。維護人員現在使用人工智慧進行分類並找到住宅維護問題的根源。它可以幫助物業管理團隊快速識別和理解問題，消除後續和澄清的需要，並加快解決問題的時間。

Many times, we can troubleshoot and resolve problems without requiring a maintenance tech to come on site. Examples like these demonstrate our focus on delivering elevated, differentiated experiences that set us and our customers apart in the market.

很多時候，我們可以排除故障並解決問題，而無需維護技術人員到現場。這些例子顯示我們專注於提供優質、差異化的體驗，使我們和我們的客戶在市場上脫穎而出。

The second pillar of our strategy is unlocking unit growth by acquiring new customers up market. Customers are looking for ways to grow occupancy and net operating income in the leasing process. Through our leasing CRM introduced at customer conference, we give customers visibility into everything that's happening in the leasing funnel, enabling leasing agents to have conversations at the prospect level instead of the property level, critical for customers with multifamily properties and on-site teams.

我們策略的第二個支柱是透過在上游市場獲取新客戶來釋放單位成長。客戶正在尋找在租賃過程中提高入住率和淨營業收入的方法。透過我們在客戶會議上推出的租賃CRM，我們讓客戶能夠了解租賃管道中發生的所有事情，使租賃代理商能夠在潛在客戶層面而不是房產層面進行對話，這對於擁有多戶房產和現場團隊的客戶至關重要。

Our AI leasing assistant, Lisa, seamlessly integrates with leasing CRM, empowering customers to have complete control over when to engage with potential residents.

我們的人工智慧租賃助理 Lisa 與租賃 CRM 無縫集成，使客戶能夠完全控制何時與潛在居民互動。

Expanding our coverage of additional property types also contributes to our ability to win and retain upmarket customers. Affordable housing is now available as part of AppFolio Property Manager Plus. From project-based Section 8 to LIHTC and HUD, AppFolio has tools for customers that need to track compliance and manage their affordable housing and conventional units, all on 1 platform.

擴大我們對其他物業類型的覆蓋範圍也有助於我們贏得和留住高端客戶的能力。經濟適用房現已作為 AppFolio Property Manager Plus 的一部分提供。從基於專案的第 8 部分到 LIHTC 和 HUD，AppFolio 為需要追蹤合規性並管理經濟適用房和傳統單元的客戶提供了工具，所有這些都在 1 個平台上進行。

Jessica Hoff Berzac, co-owner in principle of UPholdings, with 2,300 units across 4 states on AppFolio says and I quote, "Before AppFolio, we had a variety of technological solutions. One of the biggest things that AppFolio has done for us is bring all of that under 1 umbrella. It is all an AppFolio now."

UPholdings 的共同所有者Jessica Hoff Berzac（在AppFolio 上擁有4 個州的2,300 個單位）說（我引用一下）：「在AppFolio 之前，我們有多種技術解決方案。AppFolio 為我們做的最重要的事情之一就是帶來了所有這些都集中在一個保護傘下。現在全部都是 AppFolio。”

In addition to adding property types, we are powering mixed portfolios by extending the value of our platform to scale with complex operations, whether built natively or delivered by our integration partners.

除了添加財產類型之外，我們還透過擴展平台的價值來擴展複雜的運營，無論是本地構建還是由我們的整合合作夥伴交付，從而為混合投資組合提供動力。

Take our new bulk actions functionality. Instead of completing 1 move out after another, customers can now efficiently set dates, take necessary accounting actions and download disposition letters all in 1 streamlined workflow. This is important to our upmarket customers, particularly those with student housing in their portfolio.

採用我們新的批次操作功能。客戶現在可以透過 1 個簡化的工作流程有效地設定日期、採取必要的會計操作並下載處置函，而無需完成一次又一次的搬出。這對我們的高端客戶非常重要，尤其是那些擁有學生住房的客戶。

Another key component of our strategy is to unlock unit growth upmarket with AppFolio Stack. With 48 partners and 1.3 million connected units, our integration partner ecosystem continues to expand, offering customers increased flexibility to integrate their favorite PropTech solutions into their workflows.

我們策略的另一個關鍵組成部分是透過 AppFolio Stack 解鎖高端市場的單位成長。我們的整合合作夥伴生態系統擁有 48 個合作夥伴和 130 萬個連接單元，不斷擴大，為客戶提供更大的靈活性，將他們最喜歡的 PropTech 解決方案整合到他們的工作流程中。

One of our newest partners is Birdeye, a leader in digital customer experiences, which offers tools for reputation and review management, online listings, messaging, surveys and competitive benchmarking. This integration will equip connected AppFolio customers with actionable AI-powered insights they can use to find and convert more leads.

Birdeye 是我們最新的合作夥伴之一，它是數位客戶體驗領域的領導者，提供聲譽和評論管理、線上清單、訊息、調查和競爭基準測試工具。此次整合將為互聯的 AppFolio 客戶提供可操作的人工智慧驅動的見解，他們可以利用這些見解來尋找和轉換更多潛在客戶。

The third pillar of our strategy is to expand customer adoption AppFolio Property Manager Plus and our value-added services. In the third quarter, we expanded our customer education program to better help customers and their teams build critical AppFolio expertise. These capabilities empower our customers to quickly adopt and use our products and services, leading to more meaningful business outcomes.

我們策略的第三個支柱是擴大客戶對 AppFolio Property Manager Plus 和我們的加值服務的採用。在第三季度，我們擴大了客戶教育計劃，以更好地幫助客戶及其團隊建立關鍵的 AppFolio 專業知識。這些功能使我們的客戶能夠快速採用和使用我們的產品和服務，從而實現更有意義的業務成果。

The expanded program has 3 components: First, the new and improved AppFolio Academy, a 24/7 on-demand learning center with educational content tailored to ramp new hires quickly and assist more experienced employees when they need help with advanced topics; second, academy training customized training sessions led by our product -- a team of product experts, specifically designed to meet the needs of customers who require a personalized and immersive learning experience; the third and newest component is academy certifications, which are dedicated, self-guided courses designed to up-level and certify our customers AppFolio expertise.

擴展後的計劃由3 個組成部分組成：首先，經過改進的全新AppFolio 學院，這是一個24/7 的按需學習中心，提供量身定制的教育內容，可快速培養新員工，並在更有經驗的員工需要高級主題的幫助時為他們提供幫助；第二，學院培訓由我們的產品－產品專家團隊主導的客製化訓練課程，專為滿足需要個人化、沉浸式學習體驗的客戶的需求而設計；第三個也是最新的組成部分是學院認證，這是專門的自學課程，旨在提升和認證我們客戶的 AppFolio 專業知識。

Our expanded education program aims to provide comprehensive support. However, there still may be occasions when our customers need to seek specialized skills outside of their organization. In such situations, finding high-quality partners with the right expertise can be challenging.

我們擴大的教育計劃旨在提供全面的支援。然而，有時我們的客戶仍然需要在其組織之外尋求專業技能。在這種情況下，尋找具有適當專業知識的高品質合作夥伴可能具有挑戰性。

We've set up to solve this problem by recently launching AppFolio Stack solution partners, a network of industry experts ready to help customers achieve their business goals. Through this new category, we can now offer customers easy access to some of the best accounting and consulting solution providers in the industry, which only further helps our customers succeed on our platform and inspires expanded use and adoption.

為了解決這個問題，我們最近推出了 AppFolio Stack 解決方案合作夥伴，這是一個由行業專家組成的網絡，隨時準備好幫助客戶實現其業務目標。透過這個新類別，我們現在可以讓客戶輕鬆接觸業內一些最好的會計和諮詢解決方案提供商，這只會進一步幫助我們的客戶在我們的平台上取得成功，並激發擴大使用和採用。

In summary, we are pleased with our continued strategic execution and resulting profitable revenue growth in the third quarter. Thank you to our customers, partners and team members who help make the customer conference a huge success. We remain focused on creating exceptional value that powers the future of the real estate industry and sets our customers apart from the rest.

總之，我們對第三季持續的策略執行和獲利收入成長感到滿意。感謝我們的客戶、合作夥伴和團隊成員，他們的幫助使客戶會議取得了巨大成功。我們始終致力於創造卓越的價值，為房地產行業的未來提供動力，並使我們的客戶與眾不同。

I will now hand it over to Fay Sien.

現在我將把它交給Fay Sien。

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.

謝謝你，謝恩。第三季證明了我們在實現獲利性收入成長方面取得了成功。我們的營收年增 32%，達到 1.654 億美元，產生的自由現金流佔營收的 20.3%。第三季核心解決方案營收為 3,980 萬美元，年增 17%，這得益於新客戶和平台上總單位數量的增加，以及 AppFolio Property Manager Plus 的持續採用。

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.

截至第三季末，我們管理 19,418 名客戶的約 780 萬台，而去年同期管理著 18,109 名客戶的 710 萬台。這意味著客戶數量增加了 7%，最終單位數量增加了 10%。

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.

在加值服務方面，第三季營收年增 39%，達到 1.232 億美元。我們支付業務的成長是由於線上租金增加、支付採用、使用金融卡或信用卡支付的租金交易量增加以及我們決定停止電子支票費用的結果。此外，風險緩解和篩檢的成長符合我們第三季的季節性預期。

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.

我們第三季的業績表明，儘管宏觀經濟條件不佳，我們仍有能力實現獲利成長。我們的創新以及從物業經理到投資者、業主、供應商和居民的影響力使我們具有韌性。

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.

轉向支出。本季結束時，我們有 1,683 名員工，與 2022 年第三季相比減少了 4%，其中包括受到我們先前宣布的裁員影響的 149 名員工，正如 Shane 之前提到的。季度中期的人員重組影響了業務的所有領域，雖然很困難，但調整了我們的結構風險策略，使我們的員工能夠更好地為客戶服務。

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 expenses. Our year-over-year dollar increase in operating expenses for Q3 is primarily due to employee costs associated with retaining talent, particularly in specialized areas such as R&D.

不計折舊和攤銷的非 GAAP 收入成本佔收入的 36%，而去年第三季為 40%。現在轉向非公認會計準則營運費用。第三季營運費用年增主要是由於與留住人才相關的員工成本，特別是在研發等專業領域。

As a percent of revenue, combined sales and marketing, R&D and G&A, fell to 44% in the third quarter of 2023 from 52% in the third quarter of 2022 due to growth in revenue and our multi-quarter focus on operational efficiency. Sales and marketing expenses as a percentage of revenue, decreased from 19% in the prior year to 15% this year. R&D expenses as a percentage of revenue, was 20% in both the third quarter of this year and last year. Our G&A expenses as a percentage of revenue, decreased from 13% in the prior year to 10% this quarter.

由於收入成長以及我們多個季度對營運效率的關注，銷售和行銷、研發和一般行政費用合計佔收入的百分比從 2022 年第三季的 52% 降至 2023 年第三季的 44%。銷售和行銷費用佔收入的比例從去年的 19% 下降至今年的 15%。今年第三季和去年的研發費用佔營收的比例均為20%。我們的 G&A 費用佔收入的百分比從前一年的 13% 下降到本季的 10%。

Overall, our non-GAAP operating margin in the third quarter of this year improved to 16.1% compared to 3.7% in the third quarter of last year. Free cash flow this quarter was 20.3% compared to 9.5% in the same quarter last year.

總體而言，今年第三季我們的非公認會計準則營業利潤率從去年第三季的 3.7% 提高至 16.1%。本季自由現金流為 20.3%，去年同期為 9.5%。

We are pleased to be increasing our projected full year 2023 revenue guidance range to $608 million to $612 million. The midpoint of this range represents a full year growth rate of 29%. We expect that full year 2023 cost of revenue exclusive of depreciation and amortization will be higher than Q3 2023 as a percentage of revenue due to a normalization of product mix within our value-added services revenue. Our 2023 ending head count is projected to be below 2022 ending headcount.

我們很高興將 2023 年全年預計收入指引範圍提高至 6.08 億美元至 6.12 億美元。此範圍的中點代表全年成長率為 29%。我們預計，由於我們的增值服務收入中的產品組合正常化，2023 年全年不包括折舊和攤提的收入成本佔收入的百分比將高於 2023 年第三季。我們 2023 年期末員工人數預計將低於 2022 年期末員工人數。

As a result of improving operational efficiencies and the increase to our revenue guidance, we are increasing our full year non-GAAP operating margin expectation to 10.5% to 11% of revenue, and free cash flow is projected to grow to 10.5% to 11.5% of revenue. Basic weighted average shares outstanding are expected to be approximately 36 million shares for the full year.

由於營運效率的提高和收入指引的增加，我們將全年非公認會計準則營業利潤率預期提高至收入的 10.5% 至 11%，自由現金流預計將增長至 10.5% 至 11.5%的收入。預計全年基本加權平均流通股數約3,600萬股。

In summary, third quarter results are an excellent example of how AppFolio focus on delivering profitable growth and industry innovation. We are looking forward to sharing more information and seeing many of you in person over [joy] during our November 14 Investor Meeting.

總之，第三季的業績是 AppFolio 如何專注於實現獲利成長和產業創新的一個很好的例子。我們期待在 11 月 14 日的投資者會議上分享更多資訊並與你們中的許多人見面 [喜悅]。

Thank you, all, for joining us today. and we look forward to seeing you soon. Operator, this concludes today's call.

謝謝大家今天加入我們。我們期待很快見到您。接線員，今天的通話到此結束。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。