Thu, Apr 24, 8:09 PM (29 days ago)
**AppFolio, Inc. (APPF) Q1 2025 Financial Summary** **Revenue & Profitability:** - **Revenue:** $217.7 million, up 16% YoY, driven by increased usage of payments, tenant screening, and risk mitigation services. - **Net Income:** $31.4 million, down 18.6% YoY, due to higher operating expenses and tax provisions. - **Profit Margins:** Operating margin at 15.5%, down from 18.2% YoY; Net margin at 14.5%, down from 20.6% YoY. **Cash Flow:** - **Operating Cash Flow:** $38.5 million, down 10.7% YoY, due to higher operating expenditures. - **Investing Cash Flow:** $80.8 million, up from an outflow of $23.0 million YoY, due to higher sales and maturities of investment securities. - **Financing Cash Flow:** Outflow of $104.8 million, up from $10.2 million YoY, primarily due to share repurchases. **Earnings Changes:** - **EPS (Basic):** $0.86, down 19.6% YoY. - **EPS (Diluted):** $0.86, down 18.1% YoY. **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by a 6% increase in property management units under management and higher usage of Value Added Services. - **Operating Expenses:** Increased due to higher personnel-related costs, advertising, and targeted go-to-market investments. - **Tax Provision:** Higher due to a decrease in excess tax benefits from stock-based compensation. **Trends & Uncertainties:** - **Positive Trends:** Continued growth in property management units under management and increased adoption of Value Added Services. - **Uncertainties:** Dependence on market acceptance of software solutions, changes in customer adoption, and potential need for additional financing. **Future Operations Impact:** - **Share Repurchase:** Board authorized a $300 million share repurchase program, which may impact cash reserves and stock price volatility. - **Strategic Partnership:** Entered into a partnership with Second Nature Brands, Inc., which may open new revenue streams. **Key Metrics:** - **Property Management Units Under Management:** 8.8 million as of Q1 2025, up from 8.3 million YoY. - **Property Management Customers:** 21,105 as of Q1 2025, up from 19,941 YoY.