AppFolio, a Goleta-based property management software developer, saw its net income drop more than 75% over the past year in an earnings report released May 10.
The company reported net income of $479,000, or 1 cent per share, for the first quarter of 2021, down from $1.98 million, or 6 cents per share, in the same quarter a year earlier.
AppFolio did not release a statement attributing the decrease to any one factor, but in the financial report it filed, many of the company’s expenses were much higher in 2021 than they had been in 2020. The company’s cost of revenue rose from $126,000 to $471,000. The sales and marketing budget almost doubled, going from $225,000 to $402,000 in a year’s time, and the company poured a lot of resources into research and development, as that department’s budget went from $294,000 to $857,000.
General and administrative expenses were also up at AppFolio, rising more than 230%, and the company announced that its CFO, Ida Kane, has decided to step down. Kane’s last date with AppFolio has not been announced.
In its release, AppFolio announced it expects to have a revenue between $348-355 million for the year.
Shares of Appfolio closed at $127.36 on May 10 and had dropped by about 5%, to $121, in the two hours after the earnings were released.