APPFOLIO INC Q3 FY2024 earnings call

• Unveiled FolioSpace, a next-generation resident experience to redefine property manager-resident connection. • Acquired LiveEasy to accelerate resident industry segment potential, integrating its services into FolioSpace. • Released Realm-X Assistant and flows, leveraging generative AI to automate tasks, streamline communications, with beta customers saving significant time. • Strategy components: unlocking upmarket customers via platform extension, elevating customers with anti-fraud solutions, and focusing on great people and culture with new leadership hires. • Continued innovation in property types, including affordable housing wait list capabilities.

Revenue for the third quarter was $206 million, up 24% year-over-year. Core solutions revenue was $46 million in Q3, a 15.8% year-over-year increase. Value added services revenue grew 28% year-over-year to $158 million. Core solutions contributed approximately 22.3% to total revenue ($46M / $206M), while value added services contributed approximately 76.7% ($158M / $206M).

• Raised full-year revenue guidance to $786 million to $790 million, implying 27% annual growth. • Raised full-year non-GAAP operating margin guidance to 24.5% to 25.5%. • Free cash flow margin guidance remains 22% to 24%. • Anticipates fourth quarter to have a higher percentage of revenue due to seasonal nature of some value-added services, with a sequential decline in operating margin due to seasonality and LiveEasy acquisition impact.