Core Insights - AppFolio reported quarterly earnings of $1.31 per share, missing the Zacks Consensus Estimate of $1.45 per share, representing an earnings surprise of -9.66% [1] - The company posted revenues of $249.35 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.52% and showing a year-over-year increase from $205.73 million [2] - AppFolio has underperformed the market, with shares down about 3.3% year-to-date compared to the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $244 million, and for the current fiscal year, it is $5.36 on revenues of $942.91 million [7] - The estimate revisions trend for AppFolio was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which AppFolio belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Company Performance - AppFolio (APPF) closed at $223.31, down 2.29% from the previous trading session, underperforming the S&P 500's loss of 0.63% [1] - Over the past month, AppFolio shares have decreased by 17.42%, contrasting with the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 0.92% [1] Upcoming Financial Results - AppFolio is expected to report EPS of $1.45, reflecting an 11.54% increase from the prior-year quarter [2] - Revenue is anticipated to be $246.08 million, indicating a 19.61% increase from the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $5.36 per share, representing a 22.65% increase from the prior year [3] - Revenue for the fiscal year is estimated at $943.55 million, showing an 18.8% increase from the previous year [3] Analyst Estimates and Stock Performance - Recent changes to analyst estimates for AppFolio are crucial for investors, as positive revisions indicate optimism regarding business and profitability [3][4] - The Zacks Rank system, which assesses estimated changes, currently ranks AppFolio at 3 (Hold) [5] Valuation Metrics - AppFolio is trading at a Forward P/E ratio of 42.64, which is a premium compared to its industry's Forward P/E of 29.25 [5] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 62, placing it in the top 26% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

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 - 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]

Company Performance - AppFolio (APPF) closed at $220.45, reflecting a -3.13% change from the previous day, underperforming compared to the S&P 500's loss of 0.84% [1] - Over the past month, AppFolio's shares have increased by 3.96%, while the Computer and Technology sector remained flat and the S&P 500 gained 1.44% [1] Upcoming Earnings - AppFolio's upcoming earnings per share (EPS) are projected to be $1.28, indicating a 14.29% increase from the same quarter last year [2] - The consensus estimate for quarterly revenue is $230.3 million, which represents a 16.68% increase from the previous year [2] Annual Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of $5.14 per share and revenue of $930.84 million, reflecting increases of +17.62% and +17.2% respectively compared to the previous year [3] - Recent adjustments to analyst estimates suggest a positive outlook for AppFolio's business performance and profit potential [3] Valuation Metrics - AppFolio has a Forward P/E ratio of 60.85, which is higher than the industry average Forward P/E of 45.44 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 47, placing it in the top 20% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong historical performance, with 1 rated stocks averaging an annual return of +25% since 1988 [5] - Currently, AppFolio holds a Zacks Rank of 3 (Hold), with a recent 1.84% decrease in the consensus EPS estimate over the last 30 days [5]

Group 1: Stock Performance - AppFolio's stock closed at $215.80, reflecting a -1.01% change from the previous day, underperforming the S&P 500's loss of 0.53% [1] - Over the past month, AppFolio shares have appreciated by 1.63%, lagging behind the Computer and Technology sector's gain of 8.67% and the S&P 500's gain of 5.17% [1] Group 2: Earnings Forecast - AppFolio is expected to report an EPS of $1.28, indicating a 14.29% growth compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projecting net sales of $230.3 million, up 16.68% from the year-ago period [2] Group 3: Full Year Estimates - For the full year, analysts expect earnings of $5.21 per share and revenue of $930.84 million, representing changes of +19.22% and +17.2% respectively from last year [3] Group 4: Analyst Forecast Revisions - Recent revisions to analyst forecasts for AppFolio should be monitored, as positive estimate revisions are interpreted as a good sign for the company's business outlook [4] Group 5: Zacks Rank and Valuation - AppFolio currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [6] - The company is trading with a Forward P/E ratio of 41.88, which is higher than the industry average Forward P/E of 29.65, indicating a premium valuation [7] Group 6: Industry Context - The Internet - Software industry, to which AppFolio belongs, is part of the Computer and Technology sector, which has a Zacks Industry Rank of 55, placing it in the top 23% of all industries [7][8]