Core Insights - AppFolio reported revenue of $203.66 million for the quarter ended December 2024, reflecting an 18.5% increase year-over-year [1] - The earnings per share (EPS) for the quarter was $0.92, up from $0.88 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $199.87 million by 1.90%, while the EPS met the consensus estimate [1] Revenue Breakdown - Revenue from Other services was $2.70 million, surpassing the average estimate of $2.09 million by three analysts, representing a 4.3% increase year-over-year [4] - Revenue from Value Added Services reached $153.33 million, exceeding the average estimate of $150.69 million, with a year-over-year change of 19.8% [4] - Revenue from Core Solutions was $47.63 million, slightly above the average estimate of $47.45 million, marking a 15.5% increase compared to the previous year [4] Stock Performance - AppFolio's shares returned 1.3% over the past month, compared to a 1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - AppFolio reported quarterly earnings of $0.92 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.88 per share a year ago [1] - The company posted revenues of $203.66 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.90% and up from $171.83 million year-over-year [2] Earnings Performance - AppFolio's earnings of $0.92 per share were in line with expectations, while the previous quarter saw a surprise with earnings of $1.30 per share against an expectation of $1.02, resulting in a 27.45% surprise [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [1] Revenue Insights - The revenue of $203.66 million for the recent quarter represents a significant increase from the previous year's $171.83 million [2] - AppFolio has consistently topped consensus revenue estimates over the last four quarters [2] Stock Performance and Outlook - AppFolio shares have increased by approximately 1.3% since the beginning of the year, compared to a 2.7% gain in the S&P 500 [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the sustainability of the recent price movements [3][4] Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is $1.29 on revenues of $219.07 million, and for the current fiscal year, it is $5.66 on revenues of $930.99 million [7] - The Internet - Software industry, to which AppFolio belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Revenue and Growth - Revenue grew 19% year-over-year to $204 million in Q4 2024[5] - Total revenue for the twelve months ended December 31, 2024, was $282.067 million, up from $238.076 million in 2023, indicating a year-over-year growth of 18.5%[20] - Full year revenue is expected to be in the range of $920 million to $940 million for fiscal year 2025[9] Income and Profitability - Net income for Q4 2024 was $102.7 million, compared to $30.3 million in Q4 2023[16] - The company reported a diluted net income per share of $2.79 for Q4 2024, compared to $0.83 for Q4 2023[16] - Net income for Q4 2024 was $102.734 million, a significant increase from $30.268 million in Q4 2023, representing a growth of 239%[18] - GAAP operating income was $23 million, or 11.3% of revenue, compared to $28 million, or 16.4% of revenue in Q4 2023[5] - Non-GAAP operating income was $41 million, or 20.2% of revenue, compared to $42 million, or 24.3% of revenue in Q4 2023[5] Cash Flow and Financial Position - Net cash provided by operating activities was $188 million, or 23.7% of revenue, compared to $60 million, or 9.7% of revenue in fiscal year 2023[5] - Non-GAAP free cash flow was $182 million, or 22.9% of revenue, compared to $74 million, or 11.9% of revenue in fiscal year 2023[5] - Operating cash flow for Q4 2024 was $36.566 million, compared to $31.183 million in Q4 2023, reflecting an increase of 17%[18] - Free cash flow for Q4 2024 was $35,313 million, slightly up from $34,267 million in Q4 2023, with a free cash flow margin of 17.3% compared to 19.9%[22] Expenses and Costs - GAAP cost of revenue for Q4 2024 was $76.189 million, which is 37% of revenue, compared to 36% in Q4 2023[20] - Non-GAAP cost of revenue for Q4 2024 was $74.928 million, also 37% of revenue, compared to 35% in Q4 2023[20] - Research and product development expenses for Q4 2024 were $42.296 million, representing 21% of revenue, compared to 20% in Q4 2023[20] - Stock-based compensation expense for Q4 2024 was $16.374 million, up from $12.980 million in Q4 2023[18] - The amortization of purchased intangibles for Q4 2024 was $1,744 million, compared to $619 million in Q4 2023, reflecting an increase in intangible asset amortization[21] Shareholder Information - The company reported a weighted-average diluted share count of 36,783 million for Q4 2024, compared to 36,596 million in Q4 2023[21] Other Financial Metrics - Full year non-GAAP operating margin is expected to be in the range of 24.5% to 26.5%[9] - The GAAP operating margin for Q4 2024 was 11.3%, down from 16.4% in Q4 2023, while Non-GAAP operating margin decreased to 20.2% from 24.3%[21] - The income tax effect of adjustments for Q4 2024 was $(86,898) million, compared to $(11,556) million in Q4 2023[21] Business Activities - The company completed a business acquisition with a cash payment of $77.421 million during the year[18] - The company incurred CEO separation costs of $11,520 million and workforce reduction costs of $10,278 million during the twelve months ended December 31, 2023[21]

Core Insights - AppFolio reported strong financial performance for the fourth quarter and fiscal year 2024, highlighting significant growth in revenue and customer retention through innovative solutions [2][6][4]. Financial Highlights for Fourth Quarter of 2024 - Revenue increased by 19% year-over-year to $204 million [6]. - Total units under management rose by 6% year-over-year to 8.7 million [6]. - GAAP operating income was $23 million, representing 11.3% of revenue, down from 16.4% in Q4 2023 [6]. - Non-GAAP operating income was $41 million, or 20.2% of revenue, compared to $42 million, or 24.3% in Q4 2023 [6]. - Net cash provided by operating activities was $37 million, or 18.0% of revenue, slightly down from 18.1% in Q4 2023 [6]. - Non-GAAP free cash flow was $35 million, or 17.3% of revenue, compared to $34 million, or 19.9% in Q4 2023 [6]. Financial Highlights for Fiscal Year 2024 - Revenue grew by 28% year-over-year to $794 million [6]. - GAAP operating income was $136 million, or 17.1% of revenue, compared to $1 million, or 0.2% in fiscal year 2023 [6]. - Non-GAAP operating income was $200 million, or 25.2% of revenue, up from $76 million, or 12.2% in fiscal year 2023 [6]. - Net cash provided by operating activities was $188 million, or 23.7% of revenue, compared to $60 million, or 9.7% in fiscal year 2023 [6]. - Non-GAAP free cash flow was $182 million, or 22.9% of revenue, compared to $74 million, or 11.9% in fiscal year 2023 [6]. Financial Outlook - The company expects full year revenue for 2025 to be in the range of $920 million to $940 million [6]. - Full year non-GAAP operating margin is anticipated to be between 24.5% and 26.5% [6]. - Diluted weighted average shares outstanding are projected to be approximately 37 million for the full year [6].

Group 1 - Investors in AppFolio, Inc. (APPF) should monitor the stock closely due to significant movements in the options market, particularly the April 17, 2024 $220 Put which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a rally or sell-off [2] - AppFolio currently holds a Zacks Rank 3 (Hold) in the Internet – Software industry, which is in the top 15% of the Zacks Industry Rank, but no analysts have increased earnings estimates for the current quarter, leading to a decrease in the Zacks Consensus Estimate from 96 cents to 92 cents per share [3] Group 2 - The high implied volatility for AppFolio could indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay [4]

Core Viewpoint - The market anticipates AppFolio (APPF) to report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended December 2024 [1] Earnings Expectations - AppFolio is expected to post quarterly earnings of $0.93 per share, reflecting a year-over-year increase of +5.7% [3] - Revenues are projected to reach $199.87 million, representing a 16.3% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised 1.98% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4] - The Most Accurate Estimate for AppFolio is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -10.06% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7] - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced a positive surprise nearly 70% of the time [8] Historical Performance - In the last reported quarter, AppFolio exceeded expectations by delivering earnings of $1.30 per share against an expected $1.02, resulting in a surprise of +27.45% [12] - Over the past four quarters, AppFolio has consistently beaten consensus EPS estimates [13] Conclusion - AppFolio does not currently appear to be a strong candidate for an earnings beat based on the current estimates and revisions, but other factors should also be considered when evaluating the stock ahead of its earnings release [16]

Core Viewpoint - AppFolio, Inc. will report its fourth quarter and year-end 2024 financial results on January 30, 2025, after the U.S. financial markets close [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call scheduled for January 30, 2025, at 5:00 p.m. Eastern Time [2] - A live webcast of the conference call will be available, and a replay will be accessible for a limited time on AppFolio's Investor Relations website [2] Group 2: Disclosure Practices - AppFolio utilizes its Investor Relations website to disclose material nonpublic information and comply with Regulation FD [3] - Investors are encouraged to monitor the Investor Relations website alongside SEC filings and public communications [3] Group 3: Company Overview - AppFolio is recognized as a technology leader in the real estate industry, providing an innovative platform that enhances operational efficiency and business growth for its customers [4]

Core Viewpoint - AppFolio, Inc. (NASDAQ: APPF) is set to report its full-year '24 results on January 23rd, after market close, prompting an analysis of expected financial metrics [1]. Financial Expectations - The upcoming earnings report is anticipated to provide insights into AppFolio's performance, with a focus on key financial indicators that may influence investor sentiment and stock valuation [1].

Core Viewpoint - AppFolio has demonstrated strong stock performance and growth potential, driven by its innovative use of AI in property management and strategic partnerships, despite facing high valuation concerns [1][9][10]. Group 1: Stock Performance - AppFolio shares have increased by 11% over the past three months, outperforming the Zacks Computer Technology sector (8.8%), Zacks Internet Software industry (10.1%), and the S&P 500 (4.7%) [1]. - The company's stock currently trades at a forward 12-month price-to-earnings (P/E) multiple of 44.2X, which is significantly higher than the industry average of 35.79X [9]. Group 2: Growth Expectations - AppFolio has a Growth Score of A, indicating strong growth quality and sustainability, with earnings expected to improve by 28.3% in 2025 and 21.9% in 2026 [2]. - Revenue is anticipated to increase by 18.2% in 2025 and 17.5% in 2026 [2]. Group 3: Technological Advancements - The company is integrating artificial intelligence into its platform to enhance customer onboarding and streamline workflows, addressing traditional barriers in property management software adoption [3]. - Recent upgrades include the introduction of generative AI and Realm-X, a conversational AI assistant that automates tasks and improves operational efficiency [5]. Group 4: Strategic Partnerships - AppFolio's collaborations with industry leaders like DocuSign, AvidXchange, and Amazon have enhanced its service offerings, simplifying contract management and automating package management [6][7]. - These partnerships have contributed to a steady growth trajectory, with a reported customer base of 20,403 in Q3 2024, reflecting a 5.1% year-over-year increase [7]. Group 5: Valuation Concerns - Despite strong growth prospects, AppFolio's high valuation raises concerns about limited upside potential in the near term, as indicated by its Zacks Value Style Score of F [9][10].

Stock Performance - AppFolio closed at $251 05, marking a -0 66% move from the prior day [1] - The stock's change was less than the S&P 500's daily gain of 0 55% [1] - The Dow lost 0 06%, while the Nasdaq added 1 24% [1] Earnings and Revenue Projections - AppFolio's upcoming earnings release is projected to have an EPS of $0 96, reflecting a 9 09% increase from the same quarter last year [2] - Revenue is expected to be $200 01 million, indicating a 16 4% increase compared to the same quarter of the previous year [2] Analyst Estimates and Revisions - Recent changes to analyst estimates for AppFolio often mirror shifting dynamics of short-term business patterns [3] - Positive estimate revisions are considered a sign of optimism about the company's business outlook [3] - Changes in estimates have a direct relationship with upcoming stock price performance [4] Zacks Rank and Valuation - AppFolio is currently a Zacks Rank 3 (Hold) [5] - The Zacks Rank system has a track record of exceeding expectations, with 1 stocks delivering an average annual return of +25% since 1988 [5] - AppFolio has a Forward P/E ratio of 44 68, signifying a premium compared to the industry average of 41 55 [6] Industry Overview - The Internet - Software industry is part of the Computer and Technology sector and has a Zacks Industry Rank of 23, placing it in the top 10% of all 250+ industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]