AppFolio (APPF) AI Stock Analysis

• Market Cap: $7.44B
• Dividend Yield: N/A
• Average Volume (3M): 379.56K
• Price to Earnings (P/E): 38.6
• Beta (1Y): 0.90
• Revenue Growth: 22.73%
• EPS Growth: 154.79%
• Country: US
• Employees: 1,634
• Sector: Technology
• Sector Strength: 69
• Industry: Software - Application
• EPS (TTM): 5.35
• Shares Outstanding: 23,047,321
• 10 Day Avg. Volume: 478,150
• 30 Day Avg. Volume: 379,563
• PEG Ratio: 0.25
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 16.01
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $237.67
• Price Target Upside: 12.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

AppFolio exhibits strong financial performance with notable revenue and profit growth, supported by strategic initiatives and robust earnings guidance. Technical analysis suggests caution due to bearish trends and high valuation, while recent corporate events reinforce positive growth prospects. Overall, AppFolio is well-positioned for continued success, albeit with some valuation concerns.

Positive Factors

Market Performance

AppFolio has outperformed the Nasdaq, attributed to its strong execution in driving share gains, expanding ARPU, and meaningfully improving margins.

Product Adoption

Management said demand for AppFolio’s AI solutions within Realm-X have continued to push customers to upgrade to higher APM tiers.

Software Capabilities

Positive feedback regarding new features, quality of customer service and the ease of scaling AppFolio software.

Negative Factors

Growth Expectations

AppFolio's 2025 is seen as a transitional year with tough comparisons and leadership changes, leading to lower growth expectations.

Leadership Changes

Recent leadership changes, including a new CRO and ongoing CFO search, create some near-term execution risk for AppFolio.

Valuation

AppFolio is considered a high-quality business but is currently fairly valued with limited near-term catalysts, leading to a downgrade to Sector Weight.

AppFolio Business Overview & Revenue Model

Company Description

AppFolio, Inc. is a leading provider of cloud-based software solutions, primarily serving small and medium-sized businesses in the property management and legal industries. The company's core offerings include comprehensive property management software that streamlines operations for property managers, and legal practice management software designed to enhance the efficiency of law firms. AppFolio's platforms are designed to provide an intuitive user experience and integrate various functionalities, such as accounting, marketing, and communication, to support the operational needs of its clients.

How the Company Makes Money

AppFolio generates revenue primarily through a subscription-based model. Clients pay recurring fees to access the company's cloud-based software solutions. The revenue streams are largely driven by the property management software, which charges fees based on the number of units managed through the platform. Additionally, AppFolio supplements its subscription revenue with value-added services, such as electronic payment processing, tenant screening, and insurance offerings, providing additional layers of convenience and functionality for users. The company also earns from its legal practice management software, which operates on a similar subscription basis. AppFolio's growth is supported by its focus on delivering innovative solutions and maintaining strong customer relationships, which contribute to high customer retention rates and the potential for upselling additional services.

AppFolio Financial Statement Overview

Summary

AppFolio demonstrates strong financial health, with robust revenue growth, excellent profit margins, and efficient cash flow generation. The balance sheet is stable with low leverage, though maintaining asset growth is essential for future expansion.

Income Statement

AppFolio has demonstrated strong revenue growth with a TTM increase to $824.47M, reflecting a significant rise from prior years. The gross profit margin stands at 62.8%, showcasing excellent cost management. The net profit margin is robust at 23.9%, indicating effective operational strategies leading to profitability. The company has improved its EBIT and EBITDA margins, currently at 16.4% and 19.9% respectively, indicating strong operational efficiency. Overall, the income statement reflects a positive growth trajectory and profitability improvement.

Balance Sheet

The balance sheet of AppFolio reveals a strong equity position with a debt-to-equity ratio of 0.08, indicating low leverage and financial stability. The equity ratio is high at 81.9%, suggesting a solid asset base funded by equity. Return on equity is impressive at 42.6%, highlighting effective use of shareholders' funds. However, the decrease in total assets and equity over the recent periods could pose a potential risk if not addressed.

Cash Flow

AppFolio's cash flow statement shows a strong operating cash flow to net income ratio of 0.93, indicating good cash generation relative to its net income. Free cash flow has grown consistently, with a TTM free cash flow of $179.86M, demonstrating the company's ability to generate cash after capital expenditures. The free cash flow to net income ratio is high at 0.91, supporting the company's sustainable cash flow generation. Overall, cash flows are stable and supportive of ongoing operations and potential growth investments.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
794.20M	620.45M	471.88M	359.37M	310.06M
	Gross Profit
492.59M	382.37M	280.06M	215.43M	191.03M
	EBIT
135.64M	963.00K	-72.37M	-11.88M	9.78M
	EBITDA
169.87M	29.95M	-38.36M	20.35M	17.39M
	Net Income Common Stockholders
204.07M	2.70M	-68.12M	1.03M	158.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
278.25M	211.71M	160.07M	122.45M	168.52M
	Total Assets
626.68M	408.89M	381.22M	408.02M	389.48M
	Total Debt
37.48M	44.74M	50.24M	55.73M	40.15M
	Net Debt
-5.03M	-4.77M	-20.53M	-2.11M	-100.12M
	Total Liabilities
107.39M	111.58M	115.67M	110.64M	103.56M
	Stockholders Equity
519.29M	297.31M	265.55M	297.38M	285.92M
Cash Flow		Free Cash Flow
186.14M	51.24M	4.14M	2.67M	3.22M
	Operating Cash Flow
188.16M	60.28M	25.36M	35.39M	48.30M
	Investing Cash Flow
-151.76M	-55.58M	-6.47M	-110.46M	146.51M
	Financing Cash Flow
-43.40M	-25.96M	-6.16M	-7.35M	-70.36M

AppFolio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 212.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APPF, the sentiment is Negative. The current price of 212.06 is below the 20-day moving average (MA) of 216.32, below the 50-day MA of 217.01, and below the 200-day MA of 229.89, indicating a bearish trend. The MACD of -3.87 indicates Positive momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 34.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for APPF.

AppFolio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APPF	77 Outperform	$7.44B	38.59	49.11%	―	22.73%	154.79%
CWAN	76 Outperform	$6.63B	13.92	58.14%	―	23.21%	―
DBX	73 Outperform	$8.30B	20.57	-60.11%	―	1.86%	6.21%
U	64 Neutral	$8.80B	―	-20.84%	―	-17.10%	21.82%
Sector *	60 Neutral	$10.95B	10.52	-7.07%	3.00%	7.30%	-12.04%
GTLB	59 Neutral	$6.87B	―	-0.20%	―	30.93%	99.45%
CFLT	55 Neutral	$6.74B	―	-34.18%	―	24.11%	21.87%

AppFolio Corporate Events

AppFolio Announces $300M Stock Repurchase Program

On April 24, 2025, AppFolio announced a new $300 million stock repurchase program for its Class A common stock, replacing a previous $100 million program. The company also reported strong financial results for the first quarter of 2025, with a 16% year-over-year revenue growth to $218 million and strategic partnerships enhancing its resident strategy, positioning it well for future growth.

Spark’s Take on APPF Stock

According to Spark, TipRanks’ AI Analyst, APPF is a Outperform.

AppFolio’s stock is supported by robust financial performance and positive earnings guidance, countered by high valuation concerns and mixed technical signals. Strategic corporate events are viewed positively, contributing to future growth prospects.

To see Spark’s full report on APPF stock, click here.

AppFolio Expands Board with New Independent Director

On April 3, 2025, AppFolio‘s Board of Directors expanded from eight to nine members, appointing Robert Donald Casey III as a new independent director. Mr. Casey, with extensive experience in technology and investment, is expected to enhance the company’s strategic direction and governance.

Spark’s Take on APPF Stock

According to Spark, TipRanks’ AI Analyst, APPF is a Outperform.

AppFolio presents a strong financial position with notable revenue growth and operational efficiency. However, technical indicators suggest caution due to potential bearish trends. The stock’s high valuation and lack of dividend yield may be concerning for some investors, but positive earnings guidance and strategic initiatives could drive future growth.

To see Spark’s full report on APPF stock, click here.