Revenue grows 31%

AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a leading provider of cloud business management solutions for the real estate industry, today announced its financial results for the third quarter ended September 30, 2022.

“AppFolio increased the number of units served year-over-year by more than one million units for the second consecutive quarter – a clear testament that our customers rely on AppFolio products to optimize their operations, maximize their revenue and profits, and solve their staffing challenges,” said Jason Randall, President and CEO, AppFolio. “Our strategy for long-term growth is rooted in keeping existing customers happy, acquiring new customers, expanding adoption and usage, and delivering new capabilities and product value – all on a foundation of operational excellence.”

Financial Highlights

• Revenue: Total revenue was $125.1 million in the third quarter of 2022, a 31% increase from $95.8 million in the third quarter of 2021.
• Units Served: Total units on the AppFolio Property Manager platform increased to approximately 7.1 million in the third quarter of 2022 from approximately 6.0 million at the end of the third quarter of 2021.
• Income (Loss) from Operations: GAAP loss from operations in the third quarter of 2022 was $7.8 million, or 6% of revenue, compared to GAAP break-even in the same quarter of 2021. Non-GAAP income from operations in the third quarter of 2022 was $4.7 million, or 4% of revenue, compared to Non-GAAP income from operations of $3.8 million, or 4% of revenue, in the third quarter of 2021.
• Cash: Cash, cash equivalents, and investment securities were $184.5 million as of September 30, 2022. Non-GAAP free cash flow was $11.9 million, or 10% of revenue, in the third quarter of 2022, compared to $6.8 million, or 7% of revenue, in the same quarter of 2021.

Financial Outlook
Based on information available as of October 27, 2022, AppFolio's outlook for fiscal year 2022 follows:

• Full year revenue is expected to be in the range of $462 million to $466 million.
• Full year non-GAAP operating margin as a percentage of revenue is expected to be a loss of 1.5-2.5%.
• Weighted average shares outstanding are expected to be approximately 35 million for the full year.

Conference Call Information
As previously announced, the Company will host a conference call today, October 27, 2022, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the company’s third quarter 2022 financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/b7297keo. To access the call by phone, please go to the following link: https://register.vevent.com/register/BIf67920663fb34bef80ab9b99d00c89ec, and you will be provided with dial in details. A replay of the webcast will also be available for a limited time on AppFolio’s Investor Relations website at https://ir.appfolioinc.com/news-events/events.

The Company also provides announcements regarding its financial results and other matters, including SEC filings, investor events, and press releases, on its Investor Relations website at https://ir.appfolioinc.com/, as a means of disclosing material nonpublic information and for complying with AppFolio's disclosure obligations under Regulation FD.