Core Insights - AppFolio is hosting FUTURE 2025, a real estate conference aimed at addressing the industry's current challenges and innovations [3][4] - The event will feature prominent speakers from various sectors, including technology and real estate, to discuss transformative strategies and frameworks [5][6] - Attendees will have access to nearly 60 sessions led by 125 industry experts, focusing on critical topics such as AI, business intelligence, and customer experience [6][7] Industry Context - The real estate industry is at a critical juncture, facing economic pressures and heightened expectations from residents and property owners [4] - Property managers are encouraged to move beyond routine tasks to create lasting value and enhance business performance [4] Event Highlights - Keynote speakers include Edward Norton and Robin Arzón, alongside AppFolio executives [5] - The conference will also feature the second annual FUTUREist Awards, recognizing outstanding contributions to the real estate sector [8] Learning Opportunities - Attendees will learn about new business strategies and the implementation of agentic AI in operations [10] - The event will provide hands-on training and certification sessions for AppFolio customers to enhance their product expertise [10] Sponsorship and Participation - The conference will have various sponsorship levels, including Diamond, Platinum, Gold, and Silver sponsors, showcasing a wide range of industry partners [11]

Company Performance - AppFolio's stock closed at $273.54, reflecting a -1.38% change from the previous day, which is less than the S&P 500's daily loss of 0.69% [1] - Over the past month, AppFolio shares have decreased by 13.66%, while the Computer and Technology sector and the S&P 500 have gained 3.71% and 3.79%, respectively [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $1.45, representing an 11.54% increase compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $246.08 million, which is a 19.61% increase from the year-ago period [2] Annual Estimates - For the annual period, earnings are projected at $5.36 per share and revenue at $943.55 million, indicating increases of +22.65% and +18.8% from the previous year [3] - Recent adjustments to analyst estimates for AppFolio are noted, with positive revisions suggesting optimism about the business outlook [3] Valuation Metrics - AppFolio currently has a Forward P/E ratio of 51.75, which is a premium compared to its industry's Forward P/E of 31.39 [5] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - Growth stocks are appealing due to their above-average financial growth, but identifying strong growth stocks can be challenging due to inherent volatility and risks [1] Group 1: Company Overview - AppFolio (APPF) is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth potential beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong investment potential [2] Group 2: Earnings Growth - AppFolio has a historical EPS growth rate of 17.5%, with projected EPS growth of 18.8% this year, surpassing the industry average of 18.6% [4] - Earnings growth is crucial for investors, particularly double-digit growth, which signals strong future prospects [3] Group 3: Cash Flow Growth - The year-over-year cash flow growth for AppFolio is 170.5%, significantly higher than the industry average of -17.8% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 16.5%, compared to the industry average of 14.7% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, and AppFolio's current-year earnings estimates have been revised upward by 1.4% over the past month [7][8] Group 5: Investment Conclusion - AppFolio has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer [9][10]

For the quarter ended June 2025, AppFolio (APPF) reported revenue of $235.58 million, up 19.4% over the same period last year. EPS came in at $1.38, compared to $1.12 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $231.16 million, representing a surprise of +1.91%. The company delivered an EPS surprise of +7.81%, with the consensus EPS estimate being $1.28.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how the ...

Core Viewpoint - AppFolio reported quarterly earnings of $1.38 per share, exceeding the Zacks Consensus Estimate of $1.28 per share, and showing an increase from $1.12 per share a year ago, indicating a positive earnings surprise of +7.81% [1][2] Financial Performance - The company achieved revenues of $235.58 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.91%, and up from $197.38 million in the same quarter last year [2] - Over the last four quarters, AppFolio has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - AppFolio shares have increased approximately 5.1% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.40, with projected revenues of $243.52 million, and for the current fiscal year, the estimate is $5.15 on revenues of $932.5 million [7] Industry Context - The Internet - Software industry, to which AppFolio belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $236 million, reflecting a 19% year-over-year growth with a non-GAAP operating margin of 26.2% [5][19] - Core solutions revenue increased to $52.5 million, also a 19% year-over-year increase, driven by more customers choosing premium tiers and growth in total units under management [16] - Revenue from value-added services grew 19% year-over-year to $180 million, attributed to increased adoption of screening and risk mitigation services [18] Business Line Data and Key Metrics Changes - The company managed approximately 8.9 million units from 21,403 customers, representing a 6% increase in both ending units and customers compared to the previous year [17] - The adoption of AI-powered solutions has been significant, with 96% of customers utilizing one or more solutions since the beginning of 2025 [8] Market Data and Key Metrics Changes - There has been a 46% increase in property management professionals' plans to use AI or agentic technology in the past nine months, indicating a growing market trend towards AI integration [6] Company Strategy and Development Direction - The company is focusing on three strategic pillars: innovation through AI, delivering value efficiently, and cultivating a strong company culture [11][14] - Partnerships are being prioritized to enhance customer value, with the AppFolio stack marketplace now having 80 partners [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, expecting annual revenue guidance to increase to between $935 million and $945 million for 2025, representing an 18% growth rate [20] - The company plans to continue investing in high-priority initiatives while maintaining operational efficiency [21] Other Important Information - The company has initiated a stock repurchase program of $300 million and has repurchased 244,000 shares in Q2 2025 [19] - Tim Eaton has been appointed as the Chief Financial Officer, having previously served as Interim CFO [15] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________. Commission File Number 001-37468 AppFolio, Inc. (Exact name of registrant as specified in its charter) (805) 364-6093 (Registrant's telepho ...

[Executive Summary & Q2 2025 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%202025%20Highlights) AppFolio reported strong Q2 2025 financial results, driven by AI-native platform adoption, with significant revenue growth and improved non-GAAP operating income [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) AppFolio, Inc. announced strong financial results for the second quarter ended June 30, 2025, driven by the adoption of its AI-native platform and Realm-X through premium tiers and value-added services - AppFolio announced its financial results for the second quarter ended June 30, 2025, highlighting strong revenue growth driven by Realm-X adoption through premium tiers and value-added services[1](index=1&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Shane Trigg emphasized the company's market success and the tangible performance benefits customers are experiencing from adopting AppFolio's central, AI-native platform, with 96% of customers utilizing AI-powered solutions - CEO Shane Trigg stated that the second quarter results reflect continued market success, with **96% of customers** using one or more AI-powered solutions and seeing tangible performance benefits from the AI-native platform[2](index=2&type=chunk) [Key Financial Highlights (Q2 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20%28Q2%202025%29) AppFolio reported significant year-over-year growth in revenue and units under management for Q2 2025, alongside improved non-GAAP operating income, demonstrating strong operational efficiency Q2 2025 Key Financial Highlights | Metric | Q2 2025 | Q2 2024 | YoY Change | Notes | | :-------------------------------- | :------ | :------ | :--------- | :---- | | Revenue (Millions USD) | $236 | - | 19% growth | | | Total Units Under Management (Millions) | 8.9 | - | 6% growth | | | GAAP Operating Income (Millions USD) | $41 | $36 | 13.9% growth | 17.2% of revenue (Q2 2025) vs 18.3% (Q2 2024) | | Non-GAAP Operating Income (Millions USD) | $62 | $51 | 21.6% growth | 26.2% of revenue (Q2 2025) vs 26.0% (Q2 2024) | | Net Cash Provided by Operating Activities (Millions USD) | $53 | $51 | 3.9% growth | 22.3% of revenue (Q2 2025) vs 25.8% (Q2 2024) | [Financial Outlook](index=1&type=section&id=Financial%20Outlook) AppFolio provides its fiscal year 2025 financial guidance, projecting revenue and non-GAAP operating margin targets [Fiscal Year 2025 Guidance](index=1&type=section&id=Fiscal%20Year%202025%20Guidance) AppFolio provided its financial outlook for the full fiscal year 2025, projecting revenue within a specific range and a target for non-GAAP operating margin Fiscal Year 2025 Financial Outlook | Metric | Guidance | | :-------------------------------- | :-------------------- | | Full Year Revenue (Millions USD) | $935 to $945 | | Full Year Non-GAAP Operating Margin | 24.5% to 26.5% of revenue | | Diluted Weighted Average Shares Outstanding (Millions) | Approximately 37 | [Corporate & Legal Information](index=1&type=section&id=Corporate%20%26%20Legal%20Information) This section provides an overview of AppFolio's corporate identity, investor relations, and forward-looking statement disclaimers [About AppFolio](index=2&type=section&id=About%20AppFolio) AppFolio is recognized as a technology leader in the real estate industry, offering an innovative platform and partnership to enhance community connections, operational efficiency, and business growth for its customers - AppFolio is a technology leader powering the future of the real estate industry, providing an innovative platform and trusted partnership to enable customers to connect communities, increase operational efficiency, and grow their business[6](index=6&type=chunk) [Investor Relations & Conference Call](index=1&type=section&id=Investor%20Relations%20%26%20Conference%20Call) The company provided details for its Q2 2025 earnings conference call and highlighted its investor relations website as a primary channel for disclosing material nonpublic information - AppFolio hosted a conference call on July 31, 2025, at 2:00 p.m. PT / 5:00 p.m. ET to discuss Q2 financial results, with a live webcast and replay available[3](index=3&type=chunk) - The company uses its Investor Relations website (https://ir.appfolioinc.com/) for disclosing material nonpublic information and complying with Regulation FD[5](index=5&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The report includes a standard disclaimer regarding forward-looking statements, emphasizing that future results may differ due to various known and unknown risks and uncertainties, and the company does not undertake to update these statements - Forward-looking statements are subject to considerable risks and uncertainties that may cause actual results to differ materially from those expressed or implied[7](index=7&type=chunk)[8](index=8&type=chunk) - These statements relate to future operating results, financial position, fiscal year 2025 outlook, anticipated expenses, business opportunities, and the impact of strategic actions and AI-powered solutions[7](index=7&type=chunk) - The company undertakes no obligation to update any forward-looking statements, except as required by law[10](index=10&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents AppFolio's condensed consolidated balance sheets, statements of operations, and cash flows for the reported periods [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a decrease in total assets compared to December 31, 2024, primarily due to a reduction in investment securities, while total liabilities saw a slight increase Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Assets | $567,403 | $626,678 | | Total Liabilities | $111,757 | $107,388 | | Stockholders' Equity | $455,646 | $519,290 | | Cash and Cash Equivalents | $73,478 | $42,504 | | Investment Securities—Current | $54,088 | $235,745 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, AppFolio reported a significant increase in revenue and net income compared to the prior year, reflecting strong top-line growth and improved profitability Condensed Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $235,575 | $197,375 | $453,277 | $384,805 | | Income from Operations | $40,512 | $36,028 | $74,295 | $70,118 | | Net Income | $35,980 | $29,665 | $67,363 | $68,328 | | Diluted EPS | $0.99 | $0.81 | $1.85 | $1.86 | [Revenue Breakdown](index=5&type=section&id=Revenue%20Breakdown) Revenue growth for Q2 2025 was primarily driven by Value Added Services, which continued to be the largest contributor, alongside solid growth in Core Solutions Revenue Categories (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Core Solutions | $52,473 | $44,024 | $101,986 | $86,944 | | Value Added Services | $180,145 | $151,620 | $344,851 | $293,951 | | Other | $2,957 | $1,731 | $6,440 | $3,910 | | Total Revenue | $235,575 | $197,375 | $453,277 | $384,805 | [Stock-Based Compensation in Operations](index=5&type=section&id=Stock-Based%20Compensation%20in%20Operations) Stock-based compensation expense increased across all operating expense categories for both the three and six months ended June 30, 2025, with research and product development showing the largest absolute increase Stock-Based Compensation Expense (in thousands) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of Revenue | $1,419 | $1,175 | $2,706 | $2,135 | | Sales and Marketing | $3,045 | $1,703 | $5,893 | $3,213 | | Research and Product Development | $8,176 | $6,472 | $15,107 | $12,154 | | General and Administrative | $5,659 | $5,444 | $10,964 | $10,766 | | Total Stock-Based Compensation Expense | $18,299 | $14,794 | $34,670 | $28,268 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities remained strong in Q2 2025, while investing activities shifted to a net cash inflow, primarily due to proceeds from sales and maturities of investments. Financing activities resulted in a significant net cash outflow, largely due to common stock purchases Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $52,643 | $50,869 | $91,108 | $93,823 | | Net Cash Used in Investing Activities | $23,765 (inflow) | $(38,034) (outflow) | $104,559 (inflow) | $(61,071) (outflow) | | Net Cash Used in Financing Activities | $(59,863) | $(12,410) | $(164,693) | $(22,622) | | Net Increase in Cash, Cash Equivalents and Restricted Cash | $16,545 | $425 | $30,974 | $10,130 | | Cash, Cash Equivalents and Restricted Cash, End of Period | $73,728 | $59,889 | $73,728 | $59,889 | [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section explains AppFolio's use of non-GAAP financial measures, their reconciliation to GAAP, and the rationale for their presentation [Introduction to Non-GAAP Measures](index=2&type=section&id=Introduction%20to%20Non-GAAP%20Measures) AppFolio utilizes non-GAAP financial measures to supplement GAAP results, providing additional insights into operating performance, but notes that it cannot provide GAAP equivalent guidance for certain forward-looking non-GAAP metrics due to the unpredictable nature of some excluded items - AppFolio uses non-GAAP financial measures in addition to GAAP, including non-GAAP income from operations, costs, operating margin, net income, and EPS, which exclude certain non-cash or non-recurring items[6](index=6&type=chunk) - The company is unable to provide GAAP equivalent guidance for non-GAAP operating margin on a forward-looking basis due to the uncertainty and unpredictability of items like stock-based compensation expense[6](index=6&type=chunk) [Reconciliation from GAAP to Non-GAAP Results](index=7&type=section&id=Reconciliation%20from%20GAAP%20to%20Non-GAAP%20Results) Detailed reconciliations are provided to bridge GAAP financial measures to their non-GAAP counterparts, primarily by adjusting for stock-based compensation expense and amortization of purchased intangibles, offering a clearer view of core operational performance [Operating Expenses Reconciliation](index=7&type=section&id=Operating%20Expenses%20Reconciliation) Non-GAAP operating expenses, excluding stock-based compensation, show a lower percentage of revenue compared to GAAP figures, indicating improved efficiency when non-cash expenses are removed Non-GAAP Operating Expenses Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 (GAAP) | Three Months Ended June 30, 2025 (Non-GAAP) | Three Months Ended June 30, 2024 (GAAP) | Three Months Ended June 30, 2024 (Non-GAAP) | | :------------------------------------------ | :-------------------------------------- | :---------------------------------------- | :-------------------------------------- | :---------------------------------------- | | Cost of Revenue (excl. D&A) | $83,827 (36% of revenue) | $82,408 (35% of revenue) | $69,601 (35% of revenue) | $68,426 (35% of revenue) | | Sales and Marketing | $36,776 (16% of revenue) | $33,731 (14% of revenue) | $27,300 (14% of revenue) | $25,597 (13% of revenue) | | Research and Product Development | $46,674 (20% of revenue) | $38,498 (16% of revenue) | $39,522 (20% of revenue) | $33,050 (17% of revenue) | | General and Administrative | $21,936 (9% of revenue) | $16,277 (7% of revenue) | $20,254 (10% of revenue) | $14,810 (8% of revenue) | | Depreciation and Amortization | $5,850 (2% of revenue) | $3,051 (1% of revenue) | $4,670 (2% of revenue) | $4,081 (2% of revenue) | [Income from Operations and Net Income Reconciliation](index=8&type=section&id=Income%20from%20Operations%20and%20Net%20Income%20Reconciliation) Non-GAAP income from operations and net income significantly exceed their GAAP equivalents, primarily due to the exclusion of stock-based compensation and amortization of purchased intangibles, resulting in higher non-GAAP operating margins and EPS Non-GAAP Income from Operations and Net Income Reconciliation (in thousands, except per share) | Metric | Three Months Ended June 30, 2025 (GAAP) | Three Months Ended June 30, 2025 (Non-GAAP) | Three Months Ended June 30, 2024 (GAAP) | Three Months Ended June 30, 2024 (Non-GAAP) | | :------------------------------------------ | :-------------------------------------- | :---------------------------------------- | :-------------------------------------- | :---------------------------------------- | | Income from Operations | $40,512 | $61,610 | $36,028 | $51,411 | | Operating Margin | 17.2% | 26.2% | 18.3% | 26.0% | | Net Income | $35,980 | $49,821 | $29,665 | $41,165 | | Net Income Per Share, Basic | $1.00 | $1.39 | $0.82 | $1.14 | | Net Income Per Share, Diluted | $0.99 | $1.38 | $0.81 | $1.12 | [Statement Regarding the Use of Non-GAAP Financial Measures](index=9&type=section&id=Statement%20Regarding%20the%20Use%20of%20Non-GAAP%20Financial%20Measures) AppFolio uses non-GAAP measures internally for performance assessment and budgeting, and externally to provide investors with supplemental information, specifically excluding stock-based compensation, amortization of purchased intangibles, and related income tax effects, which are considered non-operational or non-recurring - Non-GAAP financial measures are used internally to assess and compare operating results, for budgeting, and to evaluate financial performance, and are believed to provide useful supplemental information to investors[21](index=21&type=chunk) - Excluded items include stock-based compensation expense (for attracting/retaining employees, not operational performance), amortization of purchased intangibles (arising from pre-acquisition activities), and the income tax effect of these adjustments (using a fixed long-term projected tax rate)[21](index=21&type=chunk)[23](index=23&type=chunk) - Non-GAAP measures may not be directly comparable to other companies and should not be considered in isolation from GAAP financial information due to potential material impact of excluded expenses[22](index=22&type=chunk)

Strong revenue growth driven by Realm-X adoption through premium tiers and value added services SANTA BARBARA, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a technology leader powering the future of the real estate industry, today announced its financial results for the second quarter ended June 30, 2025. "Our second quarter results reflect that we continue to win in the market," said Shane Trigg, President and CEO, AppFolio. "Our customers are seein ...

SANTA BARBARA, Calif., July 31, 2025 (GLOBE NEWSWIRE) -- AppFolio (NASDAQ:APPF), the technology leader powering the future of the real estate industry, today announced that its Board of Directors has appointed Tim Eaton as the Chief Financial Officer of AppFolio, effective July 30, 2025. Eaton's appointment follows a distinguished tenure at AppFolio, where he most recently served as Interim Chief Financial Officer since October 2024. Since joining AppFolio in 2020, he has also held other key positions inclu ...