AppFolio Q2 revenue beats estimates

Overview

• AppFolio Q2 revenue grows 19% yr/yr, beating analyst expectations

• GAAP operating income rises to $41 mln, margin slightly decreases

• Co's AI-native platform adoption boosts competitive advantage

Outlook

• AppFolio expects 2025 revenue between $935 mln and $945 mln

• Company projects 2025 non-GAAP operating margin of 24.5% to 26.5%

Result Drivers

• AI PLATFORM ADOPTION - 96% of customers used AI-powered solutions, driving competitive advantage, per CEO Shane Trigg

• REVENUE GROWTH - Revenue increased by 19% yr/yr to $236 mln, attributed to AI-native platform adoption

• UNIT MANAGEMENT EXPANSION - Total units under management grew 6% yr/yr to 8.9 mln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Appfolio Inc is $253.50, about 2.2% below its July 30 closing price of $259.20

• The stock recently traded at 47 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release: ID:nGNX499rX4