AppFolio raised its financial outlook for the year as revenues increased sharply and losses narrowed in the second quarter, the company said Aug. 8.
AppFolio, a Goleta-based developer of property management software for small- to medium-sized property managers, raised full-year financial-guidance estimates to a range between $103 million and $105 million Aug. 8. Previous estimates predicted revenues between $100 million and $104 million.
During the second quarter, revenues increased 42 percent from $18.4 million during the second quarter of 2015 to $26.2 million in 2016. That beat analyst estimates of revenues of $24.96 million, according to S&P Capital IQ.
While revenues grew during the quarter, losses decreased substantially. AppFolio posted a net loss of $2.2 million this year, down from $3.4 million in 2015.
Accordingly, net losses per share dropped from 36 cents per share in 2015 to 7 cents per share in 2016.
“We’re really happy about where we are going into the back half of the year,” said Ida Kane, AppFolio chief financial officer on a second quarter earnings call Aug. 8.
In a news release the company attributed the revenue growth to a 32 percent increase in property managers who use AppFolio software. In filings with the Securities and Exchange Commission, the company said 9,275 property managers now use AppFolio software, compared to 7,016 at the same time last year. AppFolio also said law firms using its software increased from 4,891 in 2015 to 7,349 in 2016.
The company also went on a hiring spree as it expands. Over the past year the company hired 106 employees, increasing its headcount from 528 on June 30, 2015 to 634 on June 30, 2016.
• Contact Philip Joens at [email protected]