Preview: AppFolio's Earnings

AppFolio APPF is preparing to release its quarterly earnings on Thursday, 2024-10-24. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect AppFolio to report an earnings per share (EPS) of $1.03.

AppFolio bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.16, leading to a 10.85% drop in the share price on the subsequent day.

Here's a look at AppFolio's past performance and the resulting price change:

Performance of AppFolio Shares

Shares of AppFolio were trading at $198.43 as of October 22. Over the last 52-week period, shares are up 10.61%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about AppFolio

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on AppFolio.

The consensus rating for AppFolio is Outperform, derived from 3 analyst ratings. An average one-year price target of $300.0 implies a potential 51.19% upside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of Confluent, CCC Intelligent Solutions and SPS Commerce, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Confluent received a Buy consensus from analysts, with an average 1-year price target of $29.87, implying a potential 84.95% downside.
• CCC Intelligent Solutions is maintaining an Buy status according to analysts, with an average 1-year price target of $14.0, indicating a potential 92.94% downside.
• As per analysts' assessments, SPS Commerce is favoring an Buy trajectory, with an average 1-year price target of $221.43, suggesting a potential 11.59% upside.

Peer Metrics Summary

In the peer analysis summary, key metrics for Confluent, CCC Intelligent Solutions and SPS Commerce are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

AppFolio ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity. Overall, AppFolio is positioned at the top in terms of Revenue Growth and Gross Profit, but at the bottom in Return on Equity compared to its peers.

Discovering AppFolio: A Closer Look

AppFolio Inc is a provider of cloud-based software solutions for real estate industry. Its property management software provides property managers with an end-to-end solution to their business needs. Its products include cloud-based property management software (Appfolio Property Manager). It also offers value-added services, such as screening, risk mitigation and electronic payment services. The business activity of the firm predominantly functions through the United States and it generates revenue in the form of subscription fees.

AppFolio's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: AppFolio's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 34.2%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: AppFolio's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 15.03%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): AppFolio's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.35% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 6.46%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.12, AppFolio adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for AppFolio visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.