The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. CONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)(in thousands) March 31,2025 December 31,2024Assets Current assets Cash and cash equivalents$56,933 $42,504 Investment securities—current 153,881 235,745 Accounts receivable, net 27,462 24,346 Prepaid expenses and other current assets 33,738 32,807 Total current assets 272,014 335,402 Property and equipment, net 23,413 24,483 Operating lease right-of-use assets 16,971 17,472 Capitalized software development costs, net 13,649 15,429 Goodwill 96,410 96,410 Intangible assets, net 46,500 49,057 Deferred income taxes 82,451 76,910 Other long-term assets 13,325 11,515 Total assets$564,733 $626,678 Liabilities and Stockholders’ Equity Current liabilities Accounts payable$4,934 $2,378 Accrued employee expenses 21,775 30,157 Accrued expenses 15,724 14,658 Other current liabilities 16,173 16,087 Total current liabilities 58,606 63,280 Operating lease liabilities 36,328 37,476 Other liabilities 7,680 6,632 Total liabilities 102,614 107,388 Stockholders’ equity 462,119 519,290 Total liabilities and stockholders’ equity$564,733 $626,678 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)(in thousands, except per share amounts) Three Months EndedMarch 31, 2025 2024 Revenue(1)$217,702 $187,430 Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization)(2) 79,498 64,646 Sales and marketing(2) 31,057 24,455 Research and product development(2) 43,758 37,895 General and administrative(2) 23,351 21,132 Depreciation and amortization 6,255 5,212 Total costs and operating expenses 183,919 153,340 Income from operations 33,783 34,090 Other income, net 56 — Interest income, net 2,953 2,992 Income before provision for income taxes 36,792 37,082 Provision (benefit from) for income taxes 5,409 (1,581)Net income$31,383 $38,663 Net income per common share: Basic$0.86 $1.07 Diluted$0.86 $1.05 Weighted average common shares outstanding Basic 36,302 36,087 Diluted 36,648 36,674 (1) The following table presents our revenue categories: Three Months EndedMarch 31, 2025 2024 Core solutions$49,513 $42,920 Value Added Services 164,706 142,331 Other 3,483 2,179 Total revenue$217,702 $187,430 (2) Includes stock-based compensation expense as follows: Three Months EndedMarch 31, 2025 2024 Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization)$1,287 $960 Sales and marketing 2,848 1,510 Research and product development 6,931 5,682 General and administrative 5,305 5,322 Total stock-based compensation expense$16,371 $13,474 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)(in thousands) Three Months EndedMarch 31, 2025 2024 Cash from operating activities Net income$31,383 $38,663 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,255 5,211 Amortization of operating lease right-of-use assets 501 523 Amortization of costs capitalized to obtain revenue contracts, net 2,720 2,500 Deferred income taxes (5,541) — Stock-based compensation, including as amortized 16,371 13,474 Other (917) (1,824)Changes in operating assets and liabilities: Accounts receivable (3,116) (5,470)Prepaid expenses and other assets (5,460) 6,349 Accounts payable 2,546 733 Operating lease liabilities (1,051) (475)Accrued expenses and other liabilities (5,226) (16,730) Net cash provided by operating activities 38,465 42,954 Cash from investing activities Purchases of available-for-sale investments (62,302) (57,162)Proceeds from sales of available-for-sale investments 102,718 — Proceeds from maturities of available-for-sale investments 42,150 36,670 Purchases of property and equipment (230) (1,420)Capitalization of software development costs (636) (1,125)Cash paid in business acquisition, net of cash acquired (906) — Net cash used in investing activities 80,794 (23,037)Cash from financing activities Proceeds from stock option exercises 11 3,874 Tax withholding for net share settlement (9,078) (14,086)Purchase of common stock (95,763) — Net cash used in financing activities (104,830) (10,212)Net decrease in cash, cash equivalents and restricted cash 14,429 9,705 Cash, cash equivalents and restricted cash Beginning of period 42,754 49,759 End of period$57,183 $59,464 RECONCILIATION FROM GAAP TO NON-GAAP RESULTS(UNAUDITED)(in thousands, except per share data) Three Months EndedMarch 31, 2025 2024 Costs and operating expenses: GAAP cost of revenue (exclusive of depreciation and amortization)$79,498 $64,646 Stock-based compensation expense (1,287) (960)Non-GAAP cost of revenue (exclusive of depreciation and amortization)$78,211 $63,686 GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 37 % 34 %Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue 36 % 34 % GAAP sales and marketing$31,057 $24,455 Stock-based compensation expense (2,848) (1,510)Non-GAAP sales and marketing$28,209 $22,945 GAAP sales and marketing as a percentage of revenue 14 % 13 %Non-GAAP sales and marketing as a percentage of revenue 13 % 12 % GAAP research and product development$43,758 $37,895 Stock-based compensation expense (6,931) (5,682)Non-GAAP research and product development$36,827 $32,213 GAAP research and product development as a percentage of revenue 20 % 20 %Non-GAAP research and product development as a percentage of revenue 17 % 17 % GAAP general and administrative$23,351 $21,132 Stock-based compensation expense (5,305) (5,322)Non-GAAP general and administrative$18,046 $15,810 GAAP general and administrative as a percentage of revenue 11 % 11 %Non-GAAP general and administrative as a percentage of revenue 8 % 8 % GAAP depreciation and amortization$6,255 $5,212 Amortization of stock-based compensation capitalized in software development costs (241) (518)Amortization of purchased intangibles (2,558) (119)Non-GAAP depreciation and amortization$3,456 $4,575 GAAP depreciation and amortization as a percentage of revenue 3 % 3 %Non-GAAP depreciation and amortization as a percentage of revenue 2 % 2 % Three Months EndedMarch 31, 2025 2024 Income from operations: GAAP income from operations$33,783 $34,090 Stock-based compensation expense 16,371 13,474 Amortization of stock-based compensation capitalized in software development costs 241 518 Amortization of purchased intangibles 2,558 119 Non-GAAP income from operations$52,953 $48,201 Operating margin: GAAP operating margin 15.5 % 18.2 %Stock-based compensation expense as a percentage of revenue 7.5 7.1 Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue 0.1 0.3 Amortization of purchased intangibles as a percentage of revenue 1.2 0.1 Non-GAAP operating margin 24.3 % 25.7 % Net income (loss): GAAP net income$31,383 $38,663 Stock-based compensation expense 16,371 13,474 Amortization of stock-based compensation capitalized in software development costs 241 518 Amortization of purchased intangibles 2,558 119 Income tax effect of adjustments (6,343) (14,379)Non-GAAP net income$44,210 $38,395 Net income per share, basic: GAAP net income per share, basic$0.86 $1.07 Non-GAAP adjustments to net income 0.36 (0.01)Non-GAAP net income per share, basic$1.22 $1.06 Net income per share, diluted: GAAP net income per share, diluted$0.86 $1.05 Non-GAAP adjustments to net income 0.35 — Non-GAAP net income per share, diluted$1.21 $1.05 Weighted-average shares used in GAAP and non-GAAP per share calculation Basic 36,302 36,087 Diluted 36,648 36,674 Statement Regarding the Use of Non-GAAP Financial Measures We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.
In particular, forward-looking statements contained in this press release relate to future operating results and financial position, including the Company's fiscal year 2025 financial outlook, anticipated future expenses and investments, the Company's business opportunities, the impact of the Company's strategic actions and initiatives, the effect of the Company's 2025 Share Repurchase Program, the potential benefits and effect of the Company's resident experience related services, including FolioSpace, and their impact on the Company’s plans, objectives, expectations and capabilities.
The risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include those risks, uncertainties and other factors described in the section entitled "Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on February 6, 2025, as such risk factors may be updated from time to time in our subsequent filings with the SEC, and the section entitled "Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in the Company's other filings with the SEC.
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