AppFolio (APPF) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 34% year-over-year to $197.4 million, driven by adoption of AI features, payment, tenant screening, and risk mitigation services.

• Net income for Q2 2024 was $29.7 million, or $0.81 per diluted share, reversing a net loss of $18.9 million in Q2 2023.

• Managed 8.4 million units from over 20,000 customers, up 9% and 5% year-over-year, respectively.

• Strategic focus on upmarket customers, platform integrations, and new property types like student and affordable housing.

• Continued investment in people, culture, and innovation, with slight headcount increase to 1,524.

Financial highlights

• Q2 2024 revenue: $197.4 million, up from $147.1 million in Q2 2023.

• Non-GAAP operating margin rose to 26% from 6.4% last year; GAAP operating income was $36.0 million (18.3% margin).

• Non-GAAP free cash flow margin reached 25% from 4.2% last year; free cash flow was $49.4 million.

• Core solutions revenue: $44 million, up 14% year-over-year; Value Added Services revenue: $152 million, up 43%.

• Cash, cash equivalents, and investment securities totaled $281.3 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $772–$778 million, implying 25% annual growth at midpoint.

• Full-year non-GAAP operating margin guidance increased to 23.5%–24.5%.

• Free cash flow margin guidance raised to 22%–24%.

• Diluted weighted average shares outstanding expected to be ~37 million for the year.