Last quarter, we talked about our new Bulk Actions functionality available to users of AppFolio Property Manager PLUS and Max, that supports customer needs of around managing move-ins and move-outs at scale. It’s valuable to our upmarket customers, particularly those with student housing in their portfolio given the seasonal patterns of the residential lifecycle. This past quarter, we expanded this functionality to Bulk Lease Renewals. We recently heard from one customer, Gozen Hartman, CEO of Champagne, Illinois-based Fairlawn Real Estate, which manages more than 5,000 units on AppFolio Property Manager PLUS, that our Bulk Lease Renewal tool has reduced the time her team spends sending out lease renewals by 75%. According to Gozen and I quote, it turns something that was looming and difficult into being easier and that ultimately enabled most of our team to continue leasing apartments and providing great customer service, end quote.
That’s the kind of improvement that makes a difference to people every day. That’s how we elevate our customers. The fourth component of our strategy is to scale the business. 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. In 2023, we made a commitment to operational efficiency. We sharpened our focus on the closest to home initiatives that drive efficient growth and deliver extraordinary customer value. We right-sized our team and real estate footprint and we drove meaningful improvement in our infrastructure spend. Ongoing discipline and our execution will allow us to reinvest in our platform, reach new customers and drive efficient growth.
At the same time, we will continue to add and enhance our capabilities to grow ARPU, particularly in the upmarket segment. The final component of our strategy is great people and culture. I’m inspired by our team’s ability to rise to every challenge and deliver customer innovation and value at an exceptional pace. Earlier this month, we presented AppFolio’s strategic priorities to our employees at AppFolio Kickoff 2024. During the event, we had a chance to meet several customers who are using AppFolio in meaningful ways, hearing how our innovations are sparking productivity and helping communities thrive are powerful reminders of the impact we’re making. One of those customers, Neil Cadman, President of El Segundo, California-based Cadman Group managing 1,100 units on AppFolio Property Manager PLUS had this to say and I quote, I’m way past understanding a lot of the Xs and Os of AppFolio.
I just know when I turn on my computer, when I look at my phone, tenants can pay rent, we can lease units, it all works. We view AppFolio as Cadman Group and Cadman Group as AppFolio. It’s why we keep coming back, end quote. Everything our team does is in service of customers like Neil and our great people and culture are creating these experiences. I am grateful to every one of our customers, proud of our accomplishments and deeply believe in the direction of our Company. Through our relentless focus on our customers, our disciplined investments, our passion to deliver industry-leading innovation, and our great people and culture, we are truly building the platform where the real estate industry comes to do business. I’ll now turn the call over to Fay Sien for more details on AppFolio’s fourth quarter financial results.
Fay Sien Goon: Thank you, Shane. The fourth quarter marked an excellent end to a successful year, where we achieved strong revenue growth and accelerated profitability, while 2023 results laid the foundation for financial flexibility to help us achieve our goals in 2024. In the fourth quarter, we delivered revenue of $172 million, growing 39% year-over-year and we generated free cash flow of 19.9% of revenue compared to 1% in the same period of last year. Core solutions revenue was $41 million in the fourth quarter, a 17% year-over-year increase driven by new customers, additional units on platform, and continued adoption of AppFolio Property Manager PLUS. At the end of the year, we managed approximately 8.2 million units from 19,737 customers compared to 7.3 million units from 18,441 customers a year earlier.
This represents a 7% increase in customers and a 13% increase in ending units. Growth in units was primarily driven by the timing of units added by new customers and existing customers expanded their portfolios at a higher rate than prior quarters during 2023. For the full year, core solutions revenue grew 18% year-over-year. Fourth quarter value-added services revenue grew 48% year-over-year to $128 million, resulting in full year revenue growth of 39%. Annual growth was fueled by unit growth, continued strengthening in card adoption for rent payments, and our decision to stop waiving the eCheck fee. Card adoption for rent payments continues to exceed our expectations. Turning to spending. We exited the quarter with 1504 employees, which is a decline of 16% compared to the fourth quarter of 2022, as the result of our efforts to align structure to strategy.
