Bessemer Venture Partners Top Ten Revenue Growth: #3 APPF

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#3 AppFolio (APPF)

Revenue Growth: 37.7%

What APPF Does:

AppFolio, Inc., together with its subsidiaries, provides cloud business management solutions for the real estate industry in the United States. The company provides a cloud-based platform that enables users to automate and optimize common workflows; tools that assist with leasing, maintenance, and accounting; and other technology and services offered by third parties. It offers AppFolio Property Manager Core, a platform that provides the basic functionalities required to operate a property management business, as well as serves as a system of record; AppFolio Property Manager Plus, which offers housing management, student housing management, complex accounting, leasing insights, large-scale operations support, role-based permissions, stack integrations, and enhanced customer support services; AppFolio Property Manager Max offers customer relationship management functionality, field customization, customer database functionality, and customer success management services; and AppFolio Investment Manager, a software that provides investment management, asset management, and relationship management solutions.

What AppFolio says about AppFolio:

AppFolio streamlines and automates real estate management, unlocking your potential and giving you the freedom to focus on what matters most.

Current Data:

Current Price: $247.31 (Intraday)
52 Wk Range: 138.49 - 256.73
Market Cap: $9B Give or take
YTD Momentum: 42.8%
EV/Forward Revenue: 9.9
Gross Margins: 65.5

Latest QRTLY Report:

CC Transcript:

https://seekingalpha.com/article/4686452-appfolio-inc-appf-q1-2024-earnings-call-transcript?source=content_type%3Areact|section%3Aearnings_summary|section_asset%3Aearnings_history|first_level_url%3Asymbol|button%3Atranscript

Highlights:

  • Revenue grew 38% year-over-year to $187.4 million.

  • Total units under management grew 11% year-over-year to 8.3 million.

  • Non-GAAP operating income was $48.2 million, or 25.7% of revenue, compared to an operating loss of ($2.1 million), or (1.6%) of revenue, in Q1 2023.

  • Net cash provided by operating activities was $43.0 million, or 22.9% of revenue, compared to $1.6 million, or 1.2% of revenue, in Q1 2023.

  • Non-GAAP free cash flow was $41.0 million, or 21.9% of revenue, compared to ($0.4 million), or (0.3%) of revenue, in Q1 2023.

Last 4 Quarters Revenue Growth:

37.7%
38.5
32.3
25.2

Guidance was provided for the full year and comes in at about 25% at the high end. They will beat that marginally but not by enough to attract the High Growth crowd. Good company and rock stable. A way to ‘own’ rental property without the headaches of management.

Couple of Scouting Reports:

https://seekingalpha.com/article/4686949-appfolio-digital-rent-payment-shift-to-fuel-top-line-growth?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A1

https://seekingalpha.com/article/4671851-appfolio-gaap-profitable-and-growing-at-high-20s-percent-cagr?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A2

All the Best,
BDH Investing

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