AppFolio tumbles after first rev miss in four years

AppFolio

25/04/2025 14:41

** AppFolio Inc's APPF.O shares down 14.6% to $200.33 early Fri after property management software provider reported rare top-line miss

** APPF shares hit about 6-mth low and tracking biggest daily pct decline since March 2021

** Santa Barbara, California-based firm, which offers solutions to the real estate industry, said late Thurs Q1 rev grew 16% y/y to $217.7 mln, but below LSEG estimate of $220.4 mln

** APPF had surpassed Wall Street's rev expectations for the past 14 qtrs, with last shortfall in Q2 2021

** Adj EPS of $1.21 in qtr was a penny below consensus

** Co reiterated 2025 rev outlook of $920-$940 mln, compared to analysts' expectation of $935.2 mln

** KBW, which rates APPF 'underperform', cut its PT by $5 to $205, saying rev miss driven by lower value-added services (VAS) average rev per user (ARPU)

** Maintaining full-yr guidance likely to disappoint given co's consistent "beat-and-raise story" over the last four years, KBW said

** Of 8 brokerages covering APPF, recommendation breakdown is 5 "strong buy" or "buy", 2 "hold" and KBW is lone bear with "sell" equivalent rating; median PT is $246.11 - LSEG data

** With move on Fri, stock off ~19% YTD vs ~13% drop in S&P 400 Software & Services index .SPMDCIS

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))