Looking back in hindsight, why do you think AppFolio has won a part of this market in the SMB sub-1,000 units or 500 units section?

When we entered the market it was due to the lack of suitable solutions for people in that segment. At that time, Yardi and RealPage were the main players, but they were primarily servicing the enterprise market. There was no good solution for the smaller players. When we entered the market, most people were still using outdated versions of Yardi. Some were even using the DOS version as late as 2011. There was no real competition in the market, which allowed us to capture a significant share. It's a very sticky market with low churn, so as we captured the market, people didn't leave. This allowed us to take a dominant position in the SMB market. Even as AppFolio moved upmarket, they maintained their presence in the SMB sector, growing their customer base.

If I gave you $50 million today, how would you go about displacing AppFolio?

I would focus on the areas of the market that aren't using AppFolio and try to capture those. Attempting to displace someone off of AppFolio would be incredibly time-consuming and expensive. For example, RealPage acquired Propertyware before Buildium. Propertyware was a disaster for them, barely held together. I spoke to the General Manager of that business after he left RealPage. He mentioned a week-long outage where customers couldn't log into their property. Despite this, and an NPS score of negative 80, the churn rate for his business that year was still below 3%. It seems that even if customers hate the product, they don't leave.