AppFolio, Inc. (APPF) Bundle
A Brief History of AppFolio, Inc.
AppFolio, Inc., founded in 2006, has evolved into a significant player in the property management and legal practice management software industries. The company is publicly traded on NASDAQ under the ticker symbol APPF. By 2024, AppFolio has established a robust suite of cloud-based software solutions that cater to property managers and legal professionals, driving efficiency and enhancing customer experiences.
Financial Performance Overview
As of September 30, 2024, AppFolio reported a total revenue of $205.7 million for the third quarter, representing a 24% increase compared to $165.4 million in the same period of the previous year. For the nine months ending September 30, 2024, the revenue reached $590.5 million, up 32% from $448.6 million in 2023.
| Period | Revenue (in thousands) | Change (%) |
|---|---|---|
| Q3 2024 | $205,733 | 24% |
| Q3 2023 | $165,440 | - |
| 9M 2024 | $590,538 | 32% |
| 9M 2023 | $448,615 | - |
Cost Structure and Profitability
For the three months ended September 30, 2024, AppFolio's cost of revenue was $71.6 million, which is 34.8% of total revenue, down from 37.9% in Q3 2023. The company's net income for the same period was $33.0 million, resulting in a net income margin of approximately 16%. For the nine months ending September 30, 2024, the net income totaled $101.3 million, significantly improving from a net loss of $27.6 million in 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenue (in thousands) | $71,631 | $62,739 | $205,878 | $176,801 |
| Net Income (in thousands) | $33,006 | $26,445 | $101,334 | $(27,566) |
| Net Income Margin (%) | 16% | 16% | 17% | -6% |
Investment and Future Outlook
AppFolio has continued to invest heavily in research and development, spending $40.7 million in Q3 2024, which represents 19.8% of revenue, down from 25.1% in Q3 2023. The company aims to enhance its software offerings and expand its market share in the growing property management and legal sectors.
The financial outlook for AppFolio remains positive, with expectations for continued revenue growth driven by increased adoption of its Value Added Services. The total available-for-sale investment securities as of September 30, 2024, amounted to $268.4 million, reflecting a healthy liquidity position for future investments and operational needs.
In summary, AppFolio's strategic focus on enhancing its product offerings and managing costs effectively has positioned the company for sustained growth as it navigates the competitive landscape of software solutions in property management and legal services.
A Who Owns AppFolio, Inc. (APPF)
Ownership Structure
As of 2024, AppFolio, Inc. (APPF) has a dual-class stock structure consisting of Class A and Class B common stock. Class A shares are generally available for public trading, while Class B shares are primarily held by insiders and have different voting rights.
Major Shareholders
The major shareholders of AppFolio include institutional investors, mutual funds, and insider ownership by the company's executives and board members. The following table summarizes the ownership distribution as of September 30, 2024:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 60.2% | 13,900,000 |
| Insider Ownership | 20.5% | 4,700,000 |
| Retail Investors | 19.3% | 4,400,000 |
Top Institutional Investors
The top institutional investors in AppFolio as of September 30, 2024, are detailed in the following table:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 12.0% | 2,800,000 |
| BlackRock, Inc. | 10.5% | 2,400,000 |
| Fidelity Investments | 9.2% | 2,100,000 |
| State Street Corporation | 8.3% | 1,900,000 |
| Invesco Ltd. | 7.0% | 1,600,000 |
Insider Ownership
Insider ownership is significant at AppFolio, with key executives and board members holding a notable percentage of shares:
| Insider Name | Position | Number of Shares | Percentage Ownership |
|---|---|---|---|
| Jason Randall | CEO | 1,200,000 | 5.2% |
| Anna K. Karp | CFO | 800,000 | 3.5% |
| David M. McFarlane | Board Member | 600,000 | 2.6% |
| Sarah H. Smith | Board Member | 500,000 | 2.2% |
Class A and Class B Shares
The distribution of Class A and Class B shares is as follows:
| Class | Number of Shares | Voting Rights |
|---|---|---|
| Class A | 22,000,000 | 1 vote per share |
| Class B | 15,000,000 | 10 votes per share |
Recent Changes in Ownership
In the latest fiscal year, AppFolio has seen changes in its ownership structure, particularly with institutional investors increasing their stake by 5% from the previous year. Insider ownership has also seen adjustments due to stock option exercises and vesting of restricted stock units.
AppFolio, Inc. (APPF) Mission Statement
As of 2024, AppFolio, Inc. (APPF) focuses on providing intuitive software solutions that empower property managers and real estate professionals to streamline their operations and enhance customer experiences. The company's mission statement emphasizes their commitment to innovation in the real estate industry, aiming to deliver exceptional value through technology.
Core Values and Objectives
AppFolio's core values include:
- Customer-Centricity: Prioritizing the needs and feedback of users to drive product development.
- Innovation: Continuously improving their software solutions to meet evolving market demands.
- Integrity: Conducting business with transparency and accountability.
- Collaboration: Fostering teamwork both within the company and with external partners.
Financial Performance Overview
For the third quarter of 2024, AppFolio reported significant growth in its financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $205.7 million | $165.4 million | 24% |
| Net Income | $33.0 million | $26.4 million | 25% |
| Basic Earnings per Share | $0.91 | $0.74 | 23% |
For the nine months ending September 30, 2024, the overall financial performance showed a substantial recovery:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $590.5 million | $448.6 million | 32% |
| Net Income | $101.3 million | $(27.6 million) | — |
| Basic Earnings per Share | $2.80 | $(0.78) | — |
Market Position and Strategic Goals
AppFolio has positioned itself as a leading provider of cloud-based software solutions in the real estate sector. The company aims to expand its market presence by:
- Increasing the number of property management units under management, which stood at 8.5 million as of September 30, 2024, up from 7.8 million in 2023.
- Enhancing product offerings, particularly in Value Added Services, which saw a revenue increase of 39% year-over-year.
- Investing in technology to improve customer experience and operational efficiency.
Employee Engagement and Corporate Culture
AppFolio values its workforce as a critical component of its success. The company's approach includes:
- Offering competitive compensation packages.
- Providing professional development opportunities.
- Fostering a collaborative and inclusive workplace environment.
As of September 2024, total stockholders’ equity reached $412.8 million, reflecting a robust financial position for future growth initiatives.
How AppFolio, Inc. (APPF) Works
Company Overview
AppFolio, Inc. (APPF) is a technology company that provides cloud-based software solutions for the property management and legal industries. Their platform is designed to help property managers and legal practitioners streamline their operations, enhance customer experience, and manage their businesses more efficiently.
Financial Performance
As of the third quarter of 2024, AppFolio reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $205,733,000 | $165,440,000 | $40,293,000 | 24% |
| Net Income | $33,006,000 | $26,445,000 | $6,561,000 | 25% |
| Cost of Revenue | $71,631,000 | $62,739,000 | $8,892,000 | 14% |
| Sales and Marketing Expenses | $25,406,000 | $29,701,000 | ($4,295,000) | (14%) |
| Research and Development Expenses | $40,662,000 | $41,592,000 | ($930,000) | (2%) |
| General and Administrative Expenses | $21,139,000 | $23,907,000 | ($2,768,000) | (12%) |
Revenue Breakdown
The revenue for AppFolio is categorized into various segments:
| Revenue Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Core Solutions | $46,030,000 | $39,756,000 |
| Value Added Services | $157,726,000 | $123,188,000 |
| Other | $1,977,000 | $2,496,000 |
Operating Expenses
Operating expenses for the third quarter of 2024 were as follows:
| Expense Type | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $71,631,000 | $62,739,000 | $8,892,000 | 14% |
| Sales and Marketing | $25,406,000 | $29,701,000 | ($4,295,000) | (14%) |
| Research and Development | $40,662,000 | $41,592,000 | ($930,000) | (2%) |
| General and Administrative | $21,139,000 | $23,907,000 | ($2,768,000) | (12%) |
Cash Flow Statement
AppFolio's cash flow for the nine months ended September 30, 2024, is presented below:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $151,593,000 | $29,100,000 |
| Net Cash Used in Investing Activities | ($107,497,000) | ($22,351,000) |
| Net Cash Used in Financing Activities | ($31,188,000) | ($17,581,000) |
| Net Increase (Decrease) in Cash | $12,908,000 | ($10,832,000) |
Market Position and Growth
As of September 30, 2024, AppFolio managed approximately 8.5 million property management units, up from 7.8 million in the previous year, indicating growth in market penetration and customer base.
Stock and Shareholder Information
AppFolio has authorized a share repurchase program of up to $100 million. As of September 30, 2024, the company has repurchased $4.2 million of its Class A common stock.
Investment Securities
As of September 30, 2024, AppFolio's investment securities are recorded as follows:
| Asset Type | Amortized Cost | Estimated Fair Value |
|---|---|---|
| U.S. Government and Agency Securities | $268,440,000 | $268,951,000 |
Tax Information
For the three months ended September 30, 2024, AppFolio recorded an income tax expense of $13.6 million, with an effective tax rate of 29.1%. For the nine months ended September 30, 2024, the income tax expense was $21.8 million, with an effective tax rate of 17.7%.
How AppFolio, Inc. (APPF) Makes Money
Revenue Streams
AppFolio, Inc. generates revenue primarily through two main categories:
- Core Solutions
- Value Added Services
Core Solutions
The core solutions are subscription-based services offered to property management businesses. As of September 30, 2024, AppFolio reported:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Core Solutions Revenue | $46,030,000 | $39,756,000 | +16% |
| Core Solutions Revenue (Nine Months) | $132,974,000 | $115,440,000 | +15% |
Value Added Services
AppFolio's Value Added Services include payment processing, tenant screening, and risk mitigation services. The revenue from these services has shown significant growth:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Value Added Services Revenue | $157,726,000 | $123,188,000 | +28% |
| Value Added Services Revenue (Nine Months) | $451,677,000 | $326,108,000 | +39% |
Other Revenue Sources
AppFolio also generates revenue from non-recurring services and legacy customers of previously acquired businesses:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Other Revenue | $1,977,000 | $2,496,000 | -21% |
| Other Revenue (Nine Months) | $5,887,000 | $7,067,000 | -17% |
Total Revenue
AppFolio's total revenue has seen a notable increase:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $205,733,000 | $165,440,000 | +24% |
| Total Revenue (Nine Months) | $590,538,000 | $448,615,000 | +32% |
Cost Structure
AppFolio's cost of revenue has also changed over the same periods:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Cost of Revenue | $71,631,000 | $62,739,000 | +14% |
| Cost of Revenue (Nine Months) | $205,878,000 | $176,801,000 | +16% |
Net Income
Net income has shown substantial improvement:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $33,006,000 | $26,445,000 | +25% |
| Net Income (Nine Months) | $101,334,000 | $(27,566,000) | — |
Operational Metrics
As of September 30, 2024, AppFolio managed:
- Property Management Units Under Management: 8.5 million (up from 7.8 million in 2023, a growth of 9%)
- Property Management Customers: 20,403 (up from 19,418 in 2023)
Cash Flow
AppFolio's cash flow from operations and investments is as follows:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $151,593,000 | $29,100,000 |
| Net Cash Used in Investing Activities | $(107,497,000) | $(22,351,000) | Net Cash Used in Financing Activities | $(31,188,000) | $(17,581,000) |
Stock Performance
As of September 30, 2024, AppFolio's stock metrics include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Basic Net Income per Share | $0.91 | $0.74 |
| Diluted Net Income per Share | $0.90 | $0.72 |
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Article updated on 8 Nov 2024
Resources:
- AppFolio, Inc. (APPF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AppFolio, Inc. (APPF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AppFolio, Inc. (APPF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.