AppFolio(US:APPF)2025-10-30 20:11Financial Performance - Total revenue for the three months ended September 30, 2025, was $249.353 million, a 21.1% increase from $205.733 million in the same period of 2024[14] - Net income for the three months ended September 30, 2025, was $33.646 million, compared to $33.006 million for the same period in 2024, reflecting a slight increase of 1.9%[15] - The company reported a basic net income per common share of $0.94 for the three months ended September 30, 2025, compared to $0.91 for the same period in 2024, an increase of 3.3%[14] - Income from operations for the nine months ended September 30, 2025, was $109.341 million, slightly down from $112.686 million for the same period in 2024, a decrease of 3.1%[14] - Net income for the nine months ended September 30, 2025, was $101,009, compared to $101,334 for the same period in 2024, reflecting a decrease of approximately 0.32%[22] - Basic net income per share for the nine months ended September 30, 2025, was $2.80, unchanged from the same period in 2024[33] Assets and Liabilities - Total current assets decreased to $302.764 million as of September 30, 2025, from $335.402 million as of December 31, 2024, a decline of 9.7%[12] - Total liabilities increased to $141.597 million as of September 30, 2025, from $107.388 million as of December 31, 2024, representing a rise of 31.8%[12] - Total stockholders' equity decreased to $498.868 million as of September 30, 2025, from $519.290 million as of December 31, 2024, a decline of 3.9%[12] - Cash and cash equivalents increased to $76.093 million as of September 30, 2025, from $42.504 million as of December 31, 2024, a significant increase of 79.2%[12] - Total cash, cash equivalents, and restricted cash at the end of the period reached $76,343, compared to $62,667 at the end of September 2024, marking an increase of approximately 21.73%[22] - The balance of accumulated other comprehensive income (loss) was $(172,480) as of September 30, 2025[18] Expenses - Research and product development expenses for the three months ended September 30, 2025, were $54.037 million, up from $40.662 million in the same period of 2024, a growth of 32.7%[14] - The company incurred total stock-based compensation expense of $20.793 million for the three months ended September 30, 2025, compared to $16.035 million for the same period in 2024, an increase of 29.1%[14] - Stock-based compensation expense rose to $55,463 for the nine months ended September 30, 2025, compared to $44,304 in 2024, indicating an increase of about 25.16%[22] Cash Flow - Cash provided by operating activities increased to $177,115 for the nine months ended September 30, 2025, up from $151,593 in 2024, representing a growth of about 16.87%[22] - The company reported a net cash used in financing activities of $176,072 for the nine months ended September 30, 2025, compared to $31,188 in 2024, showing a significant increase in cash outflow[22] - The company reported a net increase in cash, cash equivalents, and restricted cash of $33,589 for the nine months ended September 30, 2025, compared to $12,908 in 2024, indicating a substantial increase[22] Investments - Strategic investments in privately-held companies increased to $77.0 million as of September 30, 2025, compared to $2.0 million as of December 31, 2024, indicating a substantial growth of 3,850%[45] - The company made strategic investments totaling $75,000 during the nine months ended September 30, 2025[22] Stock Repurchase - The company repurchased common stock worth $95,763 during the period ending March 31, 2025[18] - In Q1 2025, the company repurchased 445,311 shares of Class A common stock at an average price of $215.05 per share, totaling $95.8 million[60] - In Q2 2025, the company repurchased 243,987 shares at an average price of $204.77 per share, amounting to $50.0 million[61] - As of September 30, 2025, the remaining amount available for repurchases under the 2025 Stock Repurchase Program was $250.0 million[62] Taxation - The effective tax rate for Q3 2025 was 8.4%, with an income tax expense of $3.1 million[67] Revenue Breakdown - Revenue from Core Solutions in Q3 2025 was $53.8 million, up from $46.0 million in Q3 2024, representing a 16.0% increase[71] - Value Added Services revenue for Q3 2025 was $192.1 million, compared to $157.7 million in Q3 2024, reflecting a 22.0% growth[71] Other Financial Metrics - The company has a $150.0 million senior secured revolving credit facility, which is scheduled to mature on September 30, 2030, with no outstanding borrowings as of September 30, 2025[53][56] - The estimated liability for reported claims and incurred but not reported claims related to landlord insurance policies was $5.7 million as of September 30, 2025, compared to $3.9 million as of December 31, 2024, reflecting an increase of 46.2%[50] - Total prepaid expenses and other current assets increased to $68.3 million as of September 30, 2025, from $32.8 million as of December 31, 2024, marking a growth of 108.5%[46] - The fair value of cash equivalents, including money market funds, was $54.1 million as of September 30, 2025, compared to $25.2 million as of December 31, 2024, indicating a growth of 114.5%[43] - The company has not recorded any allowance for credit losses for available-for-sale investment securities as of September 30, 2025, and December 31, 2024[39] - The company is currently evaluating the impact of ASU 2025-06 on its Consolidated Financial Statements, which will be effective for the 2028 annual period[37]