AppFolio (APPF) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 24% year-over-year to $206 million, driven by strong customer focus, innovation, and higher usage of payment, tenant screening, and risk mitigation services.

• Net income for Q3 2024 was $33 million, up from $26.4 million in Q3 2023; diluted EPS was $0.90 GAAP and $1.29 non-GAAP.

• Non-GAAP operating margin expanded to 28.7%, and free cash flow margin reached 27.1%.

• Launched FolioSpace, a next-gen resident experience, and acquired LiveEasy (Move EZ, Inc.) for $80 million to enhance resident services and onboarding.

• Leadership transition announced with CFO Fay Sien Goon departing and Tim Eaton named interim CFO.

Financial highlights

• Q3 revenue: $206 million, up 24% year-over-year; nine-month revenue: $590.5 million, up 32%.

• Core solutions revenue: $46 million, up 16% year-over-year; value-added services revenue: $158 million, up 28%.

• Non-GAAP operating margin: 28.7% (vs. 16.1% last year); free cash flow margin: 27.1% (vs. 20.3%).

• Cash, cash equivalents, and investments totaled $331 million at quarter end.

• Net cash from operating activities for the nine months was $151.6 million, up from $29.1 million last year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $786–$790 million, implying 27% annual growth at midpoint.

• Full-year non-GAAP operating margin guidance increased to 24.5%–25.5%; free cash flow margin at 22%–24%.

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

• Q4 operating margin expected to decline sequentially due to seasonality and LiveEasy acquisition costs.

• Cost of revenue, sales and marketing, R&D, and G&A expenses expected to decrease as a percentage of revenue for the full year.