AppFolio (APPF) Q1 2025 earnings summary

Executive summary

• Revenue grew 16% year over year to $218 million in Q1 2025, driven by new customer growth, increased adoption of services, and expanded resident experience initiatives.

• Net income was $31.4 million, down from $38.7 million in Q1 2024, reflecting higher operating expenses.

• Managed 8.8 million property management units from 21,105 customers, up 6% year over year.

• Strategic partnerships and integrations, including Second Nature, Zillow, and LiveEasy, accelerated resident strategy.

• Substantial share repurchases in Q1 2025 and a new $300 million repurchase program authorized.

Financial highlights

• Q1 2025 revenue: $218 million, up 16% year over year.

• Core Solutions revenue: $49.5 million, up 15% year over year; Value-added services revenue: $165 million, up 16%.

• Non-GAAP operating margin: 24.3% vs. 25.7% last year; GAAP operating margin: 15.5%, down from 18.2%.

• Net cash from operating activities: $38 million (17.7% of revenue), down from $43 million (22.9% of revenue) last year.

• Ended quarter with $211 million in cash and current investment securities.

Outlook and guidance

• 2025 annual revenue guidance: $920–$940 million, 17% growth at midpoint.

• Non-GAAP operating margin expected between 24.5%–26.5%.

• Diluted weighted average shares outstanding projected at 37 million for the year.

• Revenue seasonality expected to be consistent with 2024.

• Depreciation and amortization expected to increase due to recent acquisitions.