AppFolio revenue, earnings grow in 2019
Revenue at AppFolio climbed 33 percent in the fourth quarter to $67.3 million, while net income grew even faster, gaining 67 percent to $4.4 million.
Earnings per share of 13 cents were well above analyst expectations of 3 cents per share, but a moderate outlook for fiscal 2020 and news that co-founder Klaus Schauser planned to retire as chief strategist in May sent shares down 3.8 percent in after-hours trading to $118.70.
The Goleta property management software firm said it expects $312 million to $320 million in revenue in 2020, slightly lower than average analyst estimates of $324.4 million.
The guidance compares to 2019 revenue results of $256 million, a gain of nearly 35 percent over the prior year. Net income rose 82 percent to $36.3 million, or $1.07 per share, for the full fiscal year, outpacing analyst estimates of 93 cents per share.
The company ended the quarter with 14,385 property management customers with a combined 4.64 million units under management, CFO Ida Kane said on a conference call with investors. The latter gain reflects a concentrated effort by the software firm to acquire customers with higher unit counts.
During the year, the company also grew its head count 38 percent to support development of new AppFolio Property Manager Plus offerings as it targeted customers with larger, more complex operations, Kane said. It also launched AppFolio Investment Management for real estate investment managers in April 2019.
Personnel-related costs rose $11.5 million compared to 2018, according to filings with regulators. The company has more than 1,200 employees globally, including around 650 in the Tri-Counties.
AppFolio stock had been on a tear in early 2020 and reached new highs around $148 on Feb. 20. Shares remain up more than 9 percent year-to-date, despite widespread market losses.
- Contact Marissa Nall at email@example.com