AppFolioNASDAQ: APPF

Real estate operators with diverse portfolios continue to turn to AppFolio for its robust platform, innovative AI-powered solutions Real estate operators with diverse portfolios continue to turn to AppFolio for its robust platform, innovative AI-powered solutions

AppFolio (APPF) is well positioned to outperform the market, as it exhibits above-average growth in financials.

Here is how AppFolio (APPF) and Agilysys (AGYS) have performed compared to their sector so far this year.

AppFolio Realm-X saves property managers over 10 hours of work per week and transforms the resident experience AppFolio Realm-X saves property managers over 10 hours of work per week and transforms the resident experience

AppFolio (APPF) possesses solid growth attributes, which could help it handily outperform the market.

I maintain a buy rating for AppFolio due to its strong growth potential and favorable macroeconomic conditions supporting new home demand. AppFolio reported 24% y/y revenue growth in the latest quarter, driven by core solutions and value-added services, with expanding margins and strong operating leverage. The integration of LiveEasy and upcoming product enhancements, including AI-driven tools, position AppFolio to capture more market share and improve productivity.

AppFolio delivered tremendous Q3 results, beating Wall Street's expectations by a wide mile and also boosting its full-year outlook. Its latest outlook calls for 27% y/y growth in FY24 (versus 24-25% growth previously) driven by sales expansion, with a new Chief Revenue Officer enhancing its growth prospects. AppFolio's comprehensive platform, AI innovations, and secular tailwinds in the rental market position it as a high-quality, growth-oriented investment despite its premium valuation.

Incremental revenue is dropping straight to the bottom line.

While the top- and bottom-line numbers for AppFolio (APPF) give a sense of how the business performed in the quarter ended September 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.