We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AppFolio's (APPF) Q3 Earnings and Revenues Increase Y/Y
Read MoreHide Full Article
AppFolio, Inc. (APPF - Free Report) reported third-quarter 2020 earnings of $3.86 per share that came ahead of 14 cents reported in the year-ago quarter. The Zacks Consensus Estimate was pegged at 19 cents.
Revenues of $84.1 million beat the Zacks Consensus Estimate by 0.1%, while increasing 23.8% on a year-over-year basis.
Shares of the company rose 3.2% in premarket trading on Nov 10 on the back of better-than-expected third-quarter results.
The company also announced that it concluded the sale of its wholly-owned subsidiary company, MyCase, for $193 million on Sep 30, 2020. MyCase is engaged in providing its clients with legal practice software solutions.
Segment Revenue Details
Core Solutions’ revenues were $27.2 million, up 20.5% on a year-over-year basis. In the quarter under review, MyCase contributed $5.2 million to the Core Solutions’ top line.
Further, Value+ Services revenues came in at $53.4 million, up 28% year over year. The top line was driven by higher uptake of the company’s electronic payment services. The revenue contribution to Value+ segment from MyCase was $4.3 million in the third quarter.
In the third quarter, average number of property manager customers increased 9% to 15,352. The average number of property management units increased 16.1% to 5.12 million units.
Amid the ongoing pandemic, need to maintain social distancing is high and this is driving the need for online leasing services. The company is optimistic about its virtual 3D tours of the housing units to aid property managers to lease out the properties during COVID-19 crisis.
In the third quarter, management added lease renewal and resident screening features to its AppFolio Property Manager solution. Further, AppFolio unveiled income verification screening tool (limited basis) under its tenant screening feature. The income verification tool will help to online confirm the income of the applicant, thereby saving time of the property managers.
For AppFolio Property Manager PLUS customers, the software solution now comprises of enhanced reporting abilities as well as extended workflow dashboard. The latest upgrade will facilitate clients to improve management of their portfolio.
Management also added new functionalities to its AppFolio Investment Management solution in the third quarter. The latest upgrades include dividend distribution reinvestment strategies for investors and single-asset summary layout.
Margins
Total operating expenses of $80.7 million, increased 27% year over year, mainly due to higher research and product development costs along with increases in general and administrative expenditures.
Meanwhile, the company reported income from operations of $3.4 million, down 18.7% year over year mainly due to higher costs. As a percentage of revenues, operating income was 4% down 210 basis points (bps) from the year-ago quarter’s figure.
Balance Sheet
As of Sep 30, 2020, AppFolio’s cash and cash equivalents (and investment securities) came in at $181.9 million compared with $80.2 million as of Jun 30, 2020. The increase in liquidity is mainly due to the proceeds received from the divestment of MyCase.
In the third quarter, AppFolio repaid $97.2 million under its existing credit agreement.
In the third quarter, cash provided by operating activities stood at $17.8 million compared with $24.3 million generated in the previous quarter.
Guidance
AppFolio refrained from providing any guidance for the fourth quarter or full year 2020 due to the coronavirus-triggered uncertainty prevailing in the market.
The Zacks Consensus Estimate for fourth quarter and 2020 revenues is currently pegged at $82.5 million and $320 million, respectively.
Further, the consensus mark for earnings per share for the fourth quarter and 2020 are currently pegged at 15 cents and 93 cents, respectively.
Zacks Rank & Stock to Consider
AppFolio currently carries a Zacks Rank #3 (Hold).
The long-term earnings growth rate for Jabil, Oracle and NVIDIA is currently pegged at 12%, 9%, and 20.1%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
AppFolio's (APPF) Q3 Earnings and Revenues Increase Y/Y
AppFolio, Inc. (APPF - Free Report) reported third-quarter 2020 earnings of $3.86 per share that came ahead of 14 cents reported in the year-ago quarter. The Zacks Consensus Estimate was pegged at 19 cents.
Revenues of $84.1 million beat the Zacks Consensus Estimate by 0.1%, while increasing 23.8% on a year-over-year basis.
Shares of the company rose 3.2% in premarket trading on Nov 10 on the back of better-than-expected third-quarter results.
AppFolio, Inc. Price, Consensus and EPS Surprise
AppFolio, Inc. price-consensus-eps-surprise-chart | AppFolio, Inc. Quote
The company also announced that it concluded the sale of its wholly-owned subsidiary company, MyCase, for $193 million on Sep 30, 2020. MyCase is engaged in providing its clients with legal practice software solutions.
Segment Revenue Details
Core Solutions’ revenues were $27.2 million, up 20.5% on a year-over-year basis. In the quarter under review, MyCase contributed $5.2 million to the Core Solutions’ top line.
Further, Value+ Services revenues came in at $53.4 million, up 28% year over year. The top line was driven by higher uptake of the company’s electronic payment services. The revenue contribution to Value+ segment from MyCase was $4.3 million in the third quarter.
In the third quarter, average number of property manager customers increased 9% to 15,352. The average number of property management units increased 16.1% to 5.12 million units.
Amid the ongoing pandemic, need to maintain social distancing is high and this is driving the need for online leasing services. The company is optimistic about its virtual 3D tours of the housing units to aid property managers to lease out the properties during COVID-19 crisis.
In the third quarter, management added lease renewal and resident screening features to its AppFolio Property Manager solution. Further, AppFolio unveiled income verification screening tool (limited basis) under its tenant screening feature. The income verification tool will help to online confirm the income of the applicant, thereby saving time of the property managers.
For AppFolio Property Manager PLUS customers, the software solution now comprises of enhanced reporting abilities as well as extended workflow dashboard. The latest upgrade will facilitate clients to improve management of their portfolio.
Management also added new functionalities to its AppFolio Investment Management solution in the third quarter. The latest upgrades include dividend distribution reinvestment strategies for investors and single-asset summary layout.
Margins
Total operating expenses of $80.7 million, increased 27% year over year, mainly due to higher research and product development costs along with increases in general and administrative expenditures.
Meanwhile, the company reported income from operations of $3.4 million, down 18.7% year over year mainly due to higher costs. As a percentage of revenues, operating income was 4% down 210 basis points (bps) from the year-ago quarter’s figure.
Balance Sheet
As of Sep 30, 2020, AppFolio’s cash and cash equivalents (and investment securities) came in at $181.9 million compared with $80.2 million as of Jun 30, 2020. The increase in liquidity is mainly due to the proceeds received from the divestment of MyCase.
In the third quarter, AppFolio repaid $97.2 million under its existing credit agreement.
In the third quarter, cash provided by operating activities stood at $17.8 million compared with $24.3 million generated in the previous quarter.
Guidance
AppFolio refrained from providing any guidance for the fourth quarter or full year 2020 due to the coronavirus-triggered uncertainty prevailing in the market.
The Zacks Consensus Estimate for fourth quarter and 2020 revenues is currently pegged at $82.5 million and $320 million, respectively.
Further, the consensus mark for earnings per share for the fourth quarter and 2020 are currently pegged at 15 cents and 93 cents, respectively.
Zacks Rank & Stock to Consider
AppFolio currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Jabil (JBL - Free Report) , Oracle (ORCL - Free Report) and NVIDIA (NVDA - Free Report) . Jabil sports a Zacks Rank #1 (Strong Buy), while Oracle and NVIDIA carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Jabil, Oracle and NVIDIA is currently pegged at 12%, 9%, and 20.1%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>