Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
SANTA BARBARA - AppFolio Inc. (NASDAQ:APPF) shares plunged 12% in after hours trading after the real estate software provider reported third-quarter earnings that fell short of analyst expectations, despite posting better-than-expected revenue and raising its full-year outlook.
The company reported adjusted earnings of $1.31 per share for the third quarter, missing the analyst consensus of $1.46 by $0.15. Revenue came in at $249.35 million, exceeding analyst estimates of $245.39 million and representing 21% growth YoY. The company’s total units under management grew 7% YoY to 9.1 million.
The significant stock decline reflects investor disappointment with the earnings miss, which overshadowed the company’s revenue performance. AppFolio’s non-GAAP operating margin fell to 23.5% from 28.7% in the same period last year, indicating pressure on profitability despite top-line growth.
"I’m pleased with our third quarter results, as we continue to win in the market. We are expanding the value we deliver to our existing customers while effectively capturing new market share," said Shane Trigg, President and CEO of AppFolio.
Looking ahead, AppFolio raised its full-year revenue guidance to $945-950 million, above the consensus estimate of $942.8 million. The company expects full-year non-GAAP operating margin to be between 23.5% and 24.5%, with approximately 36 million diluted weighted average shares outstanding.
The company’s cash flow showed strength, with net cash provided by operating activities reaching $86 million, or 34.5% of revenue, compared to $58 million, or 28.1% of revenue, in the third quarter of 2024.
AppFolio’s growth continues to be driven by its value-added services, which generated $192.1 million in revenue during the quarter, while core solutions contributed $53.8 million.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.