AppFolio Investor Day Presentation Deck

Powering the Future of the Real Estate Industry © 2023 AppFolio Investor Meeting Definitions of measures and metrics and why they matter METRIC NAME ARPU Customers Operating Margin Free Cash Flow Residential Units Community Associations Units Units DEFINITION Annualized average revenue per unit. Recurring revenue (Core revenue + Value added services revenue) divided by average ending active units on platform for the specified period. Customers which have an entitlement to an APM Core or Plus subscription at the end of the specified period. Operating margin is defined as income (loss) from operations, less stock-based compensation, amortization of stock-based compensation capitalized in software development, and other non-recurring items. Free cash flow is defined as net cash from operating activities, less purchases of property and equipment, capitalization of software development costs, and other non-recurring items. Includes single-family and multi-family rental units. Includes condominium owners' associations who manage common structures with multiple units, such as apartments and townhomes and homeowner associations who oversee single-family homes in planned developments, usually made up of individual lots and homes. Number of ending active units under management which have an entitlement to an APM Core or Plus subscription at the end of the specified period. WHY IT MATTERS Provides insight into how much revenue recognized, on average, from each unit in a given period. We believe that our ability to increase the number of property management customers under management is an indicator of our market penetration, the growth of our business, and our potential future business opportunities. Serves as a non-GAAP financial measure of profitability. Serves as a non-GAAP financial measure of profitability. Demonstrates our market for AppFolio Property Management Solution products. Demonstrates our market for AppFolio Property Management Solution products. We believe that our ability to increase the number of property management units under management is an indicator of our market penetration, the growth of our business, and our potential future business opportunities. appfolio

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