AppFolio earnings up as sale of MyCase unit closes
AppFolio, the Goleta-based property management software company, beat analysts’ expectations on Nov. 9 with earnings of $3.86 per share for the third quarter of 2020, driven mainly by a sale of one of its business units.
Quarterly earnings were much higher than the same quarter last year, when the company earned 14 cents per share. Net income was $137 million in the quarter, compared to just $4 million in the same quarter last year.
However, only $3.3 million of the total income in the most recent quarter came from the company’s operations. Revenue from operations was down from $4.1 million in the third quarter of 2019.
The majority of the net income in third quarter 2020 was due to AppFolio selling its MyCase legal practices suite of services for $193 million to a group of private equity funds. According to AppFolio’s earnings report, the company netted $187 million from the deal.
Total costs and operating expenses were also higher in the third quarter, at $80.7 million, compared to $63.8 million in the same quarter a year ago.