AppFolio (APPF) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenue grew 19% year-over-year to $204 million, with full year revenue up 28% to $794 million.

• Non-GAAP operating margin more than doubled year-over-year, reaching 25% for the full year.

• Customer base and units under management increased, with 8.7 million units from 20,784 customers at year-end, up 6% year-over-year.

• Strategic focus on AI innovation, customer value, and operational efficiency drove results.

• Achieved strong 2024 performance driven by innovation in AI and resident experience.

Financial highlights

• Q4 2024 revenue grew 19% year-over-year to $204 million; full-year revenue up 28% to $794 million.

• Q4 GAAP operating income was $23 million (11.3% margin), down from $28 million (16.4%) in Q4 2023; non-GAAP operating income was $41 million (20.2% margin), slightly below $42 million (24.3%) last year.

• Full-year GAAP operating income surged to $136 million (17.1% margin) from $1 million (0.2%) in 2023; non-GAAP operating income rose to $200 million (25.2% margin) from $76 million (12.2%).

• Q4 net income was $103 million, up from $30 million in Q4 2023; full-year net income was $204 million, up from $3 million.

• Q4 free cash flow was $35 million (17.3% margin); full-year free cash flow was $182 million (22.9% margin), both up year-over-year.

Outlook and guidance

• 2025 annual revenue guidance is $920-$940 million, implying 17% growth at the midpoint.

• Non-GAAP operating margin expected between 24.5%-26.5% for 2025.

• Customer and unit growth anticipated to continue, with seasonality similar to 2024.

• High interest rates expected to limit customer portfolio expansion.

• Diluted weighted average shares outstanding expected to be approximately 37 million.