AppFolio, Inc. (APPF - Free Report) reported fourth-quarter 2017 adjusted earnings of 12 cents per share as compared with in-line earnings reported in the year-ago quarter. On a GAAP basis, the company reported earnings of 7 cents per share. The Zacks Consensus Estimate is pegged at 9 cents per share.
Notably, Appfolio shares have gained 81.7% year over year, substantially outperforming the 31.6% rally of the industry it belongs to.
Quarter Details
Revenues surged 35% year over year to $37.9 million and also beat the Zacks Consensus estimate of $35 million. Core solution revenue came in at $15.5 million during the quarter, up 27% year over year. The increase was primarily driven by increase in the number of property manager customers (up 17%) and 21% higher property manager units under management.
The company ended the quarter with roughly 11,700 property managers, up from approximately 10,000 customers in the year-ago period. Legal customers count grew 15% year over year and came in at 9,350.
Notably, the company upgraded product suite during the fourth quarter with enhancements including the likes of AppFolio Renters Insurance, a new Value+ Service, and same day ACH, an addition to the existing Electronic Payments Value+ Platform. During the quarter, Value + services revenue was $20.8 million, up 42% year over year.
Total cost and operating expenses for the quarter increased 21% year over year and came in at $35.5 million. The increase can primarily be attributed to higher revenues and increase in headcount.
Operating income during the quarter came in at $2.4 million against an operating loss of $1.3 million reported in the year-ago quarter.
The company ended the quarter with cash and short-term investments of $45.9 million. Operating cash flow was $7.8 million during the quarter.
2017 at a Glance
GAAP net income was 28 cents per share, compared with a loss of 25 cents per share delivered in 2016. Revenues increased 36% to $143.8 million for full year 2017.
Guidance
For 2018, the company forecasts revenues between $179 million and $182 million, representing year-over-year growth of 26% at the mid-point of the range. The Zacks Consensus Estimate is pegged at $180.9 million.
Zacks Rank and Stocks to Consider
AppFolio has a Zacks Rank #4 (Sell).
Paycom Software (PAYC - Free Report) , Facebook and The Trade Desk (TTD - Free Report) are some better-ranked stocks worth considering in the broader technology sector. While Paycom sports a Zacks Rank #1 (Strong Buy), Facebook and The Trade Desk, both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Paycom, Facebook and The Trade Desk are currently pegged at 25.75%, 26.51% and 25%, respectively.
Zacks Top 10 Stocks for 2018
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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AppFolio, Inc. (APPF - Free Report) reported fourth-quarter 2017 adjusted earnings of 12 cents per share as compared with in-line earnings reported in the year-ago quarter. On a GAAP basis, the company reported earnings of 7 cents per share. The Zacks Consensus Estimate is pegged at 9 cents per share.
Notably, Appfolio shares have gained 81.7% year over year, substantially outperforming the 31.6% rally of the industry it belongs to.
Quarter Details
Revenues surged 35% year over year to $37.9 million and also beat the Zacks Consensus estimate of $35 million. Core solution revenue came in at $15.5 million during the quarter, up 27% year over year. The increase was primarily driven by increase in the number of property manager customers (up 17%) and 21% higher property manager units under management.
The company ended the quarter with roughly 11,700 property managers, up from approximately 10,000 customers in the year-ago period. Legal customers count grew 15% year over year and came in at 9,350.
Notably, the company upgraded product suite during the fourth quarter with enhancements including the likes of AppFolio Renters Insurance, a new Value+ Service, and same day ACH, an addition to the existing Electronic Payments Value+ Platform. During the quarter, Value + services revenue was $20.8 million, up 42% year over year.
Total cost and operating expenses for the quarter increased 21% year over year and came in at $35.5 million. The increase can primarily be attributed to higher revenues and increase in headcount.
Operating income during the quarter came in at $2.4 million against an operating loss of $1.3 million reported in the year-ago quarter.
The company ended the quarter with cash and short-term investments of $45.9 million. Operating cash flow was $7.8 million during the quarter.
2017 at a Glance
GAAP net income was 28 cents per share, compared with a loss of 25 cents per share delivered in 2016. Revenues increased 36% to $143.8 million for full year 2017.
Guidance
For 2018, the company forecasts revenues between $179 million and $182 million, representing year-over-year growth of 26% at the mid-point of the range. The Zacks Consensus Estimate is pegged at $180.9 million.
Zacks Rank and Stocks to Consider
AppFolio has a Zacks Rank #4 (Sell).
Paycom Software (PAYC - Free Report) , Facebook and The Trade Desk (TTD - Free Report) are some better-ranked stocks worth considering in the broader technology sector. While Paycom sports a Zacks Rank #1 (Strong Buy), Facebook and The Trade Desk, both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Paycom, Facebook and The Trade Desk are currently pegged at 25.75%, 26.51% and 25%, respectively.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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