AppFolio(APPF) - 2022 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue increased by 31% year-over-year to $125 million in Q3 2022, with approximately 7.1 million units served [6][17] - Positive free cash flow of $11.9 million, representing about 10% of revenue, compared to $6.8 million or 7% in the same quarter last year [21][23] - Full year 2022 revenue guidance raised to a range of $462 million to $466 million, indicating a growth rate of 29% [21] Business Line Data and Key Metrics Changes - Core Solutions revenue reached $33.9 million, a 26% year-over-year increase [17] - Value-added services revenue grew by 35% year-over-year to $88.4 million, driven by an increase in property management units [19] Market Data and Key Metrics Changes - The Corporate segment was the fastest-growing residential segment, contributing to expected future Average Revenue Per User (ARPU) growth [11] - The number of property management units increased by 17% year-over-year, with a focus on larger unit portfolios driving higher adoption rates of APM PLUS [18] Company Strategy and Development Direction - The company is focused on customer satisfaction, acquiring new customers, and expanding adoption and usage of its services [15][23] - New product innovations include AI-driven features like Bank Feed and Smart Insurer, aimed at enhancing customer experience and operational efficiency [9][10] - Expansion into affordable housing and short-term rentals is part of the long-term growth strategy [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term strategy, emphasizing the importance of customer success for overall growth [8][23] - The company anticipates a typical seasonal decline in value-added services revenue in Q4 due to fewer resident moves during winter months [22] Other Important Information - The company hosted its 10th Annual Customer Conference, which was well-received and provided valuable customer feedback for future innovations [7][8] - AppFolio was recognized as one of Fortune's 40 Best Large Workplaces in technology, enhancing its reputation among customers and potential employees [15] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating the end of the conference call [25]