AppFolio's Q2 2025 Earnings Call: Discrepancies in AI Adoption, Revenue Growth, and Customer Retention

Strong Revenue Growth and AI Integration:
- AppFolio reported revenue of $236 million for Q2, up 19% year-over-year.
- Growth was driven by increased adoption of AI-powered solutions, including Realm-X, which has been utilized by 96% of customers since the beginning of 2025.

Value-Added Services and Screenings:
- Revenue from value-added services grew 19% year-over-year to $180 million.
- This increase was due to higher use and adoption of screening, risk mitigation services, and payments, particularly with FolioScreen Trusted Renter, which incorporates advanced fraud detection and fair housing compliance.

Employee Growth and Operational Efficiency:
- AppFolio had 1,685 employees at the end of Q2, reflecting an 11% increase from the previous year.
- This growth was offset by efficiencies in operations, maintaining a flat cost of revenue as a percentage of revenue at 35%.

AI Leadership and Customer Adoption:
- AppFolio's strategic pillar focused on AI differentiators, showcased at NAA Apartmentalize, contributed to increased customer adoption of AI solutions.
- The company's AI-native platform architecture enabled rapid innovation delivery, with customers experiencing tangible performance benefits from Realm-X solutions.