APPF - Earnings call transcript Q2 2019

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Operator

Good afternoon. My name is Christine, and I'll be your conference operator today. At this time, I would like to welcome everyone to the AppFolio, Inc. Announces Second Quarter 2019 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. you. Thank Instructions] [Operator

may conference. you begin Abrams, your Erica

Erica Abrams

today Thank you we for Good AppFolio afternoon, to am report Kane results. and gentlemen. Thank ladies and joined I joining results. second discuss XXXX you, Jason of quarter Randall Ida Christine. AppFolio's financial by us these today as

www.appfolioinc.com. webcast This being Investor section on call is of Relations the simultaneously our website at

this Safe certain would uncertainties. Before to may call considerable on our started, statements or any to from that note I to like materially or will be statements, Harbor get Actual forward-looking Please implied performance we attention policy. subject statements. performance be which expressed call made the everyone's by results different results are or and risks forward-looking

and plans financial strategic detail see for future to about conditions, and of our SEC and business development relate may and filings uncertainties. statements plans plans. operations, plans, greater risks and forecasts objectives, product Please the results with Forward-looking

Forward-looking to today, statements if becomes are based future. assume available today in any new statements update no even information the of after we and forward-looking on assumptions, as obligation

that, With call turn Ida, to ahead. I'll please go Ida. the over

Ida Kane

relief income $XX.X valuation million. a an $XX.X diluted benefit tax GAAP Total increased AppFolio's tax period to to of you, call for for Thank includes us financial net deferred income which ago to second of year the revenue one by was quarter results. primarily on quarter welcome joining the $XX.X XX% per today million over or allowance share, XXXX $X.XX assets. same million, the Erica, everyone against and related the

these shareholder and expected advance in investment positively include the growth impact revenue long-term Our in value second quarter continued will our generation. believe We initiatives performance of following: growth reflects initiative

estate as serves real acquisition developed through that assistant, estate to serves offered we Plus, real a which leasing is Investment acquisition customers; Manager estate investment AppFolio included stock-based second from management, which quarter and related our estate Management, and in to as our complex which charges the from customers. utility acquired is the WegoWise we also the Property and AppFolio service real Dynasty LISA, offered to is developed million Value+ managers; through AI noncash compensation. customers; service $X.X manager real in Value+ AppFolio AppFolio's property our now our Also technology now acquired more results larger, offering a technology

non-GAAP For primarily helpful results, to in $XX.X million find in more Core was that increase you our filed XX-Q to the year-over-year, due customers. results. manager under revenue increase non-GAAP increase property track a in manager was those who number XX% management today second related in units information Form quarter, of solutions that XX% a you calculating detailed includes XX% might the property a

closed million XX,XXX customers We property X.XX managing quarter units. the manager second with

of property X% real count. subscribing into core core manager we not year-over-year estate to reminder, unit a our as and solutions the not customer define subscribed Customers vertical, solution. our XX,XXX. As included customers our number our legal customers customer in that count to In increased are are

a from screening usage year-over-year. number electronic Revenue increase services each manager Value+ of of services The Value+ insurance of quarter and and new of year-over-year, increased higher derived services in units Second our a increased by from in property management. growth majority was and quarter. payments, base customers larger introduced under XX% $XX.X were million, our was services of revenue the a Value+ Value+ services

increase an overall expenses Total basis XX% compared the expenses: cost in quarter a to XX% second Turning and on revenue. to total for year-over-year increased GAAP operating

tax released primary of existing $XX.X our growth during tax customers benefit increase our to the assets our which million. the Our initiatives. primarily against expanding cost year-over-year to allowance headcount quarter, our second income our We is related an valuation support deferred XX% in of growth in and factor base in

Our and balance which on in balance offset reflects approximately $XX.X believe tax we million use quarter to sheet, $XX.X $X.X securities million investment million $X.X million a with the expenses. capitalized of million and activities, $XX.X asset, future equivalents property June and at tax We sheet used million additional we operating can Also we generated product $XX.X from debt. to equipment XXth and deferred cash closed the software. innovation in via cash, invested purchase

any initiate the during stock not repurchases did second quarter. We

$XXX Given million, XXXX growth XX% midpoint. to-date, revenue year-over-year range revenue $XXX million our year now expect in full of at which we performance the the of represents to

approximately to weighted be continue expect shares million. our diluted We XX full year to average the for

submit of our to are form Investor a Q&A located Investor invited on As the investors website. questions via the section reminder, Overview

that, call additional some turn comments. to the I'll for over With Jason

Jason Randall

joining everyone for second Thanks, report to financial XXXX thanks Ida, quarter today our us as we and results.

to product we experiences, customer vertical software on the quarter, We in our technology and mission continued great services to our supporting culture. expanding base. team and businesses industry our During end-to-end through this to customers innovation, value providing thriving on revolutionize customer our and by maintaining focus by delivering investments our our did

our systems that vertical, empower to deliver businesses focus our intelligent and technology excellent customer of real advancing on platform employee solutions we maintained innovation our and In estate experiences. to provide

leasing assistant, second During built of acquisition technology recent we service, from Dynasty. released the AppFolio's a we which new quarter, our LISA, Value+ leveraging AI

provide responses and team result and AppFolio email. in messages thoughtful, experience revenue, property's volume longer fashion, it property part AI management faced a by The text works AppFolio timely customer may leasing a stemming vacancy which to follow inquiries AI times. lead assistant assistant in rental to poor leasing every challenging on designed via high leasing key as up from a personable that We XX/X challenges missed of the companies, to address make of

leverages reporting customers rates can LISA renters in increased prospective to the leasing utilizing capabilities. track with leasing Property flow automating the and stand data our accurate real and and assistant team's ultimately occupancy benefit efficiency. AI time extending enhancing, robust, leasing performance need-to-lease their operational and managers integrated to AppFolio drive optimizing be to insights, communicates and to which used by data, from

Operating performance with assistant after great getting team's lag hours has Roeder, customer, AppFolio AppFolio's LISA Management misleads response. Officer dramatically or Cambridge they're prospects, Kayla Chief Group “Our added with our for conversations AI manager feel like time allows service. who continued says, increased recently property of and who in leasing no

Our team higher-level focus on to is able interactions.”

Cambridge's AI use software. of AppFolio's integrated AI assistant leasing the when leasing a fully entire Property of power it's AppFolio's as demonstrates property's part of Management into experience

more owners is assistant scale. efficiency, customers' and systems and automating prospects property large experience their for leasing of overall managers and AppFolio intelligence increasing AI a Our tenants tasks and Property strengthens Manager our and AppFolio for repetitive Manager Property at capabilities by built portfolio Plus streamlined creating

the a to and net significant AppFolio continued and capital customers AppFolio AppFolio manage income. Property During replacing Property utility to Value+ and service the that quarter, relating of expenditures minimizes we utilities Plus of on-time and eliminating operating the process a better launch one by with billing burden manual late management, operating with Manager providing maximizes invoicing fees Manager errors

second analytics real of AppFolio and efficiency released managers the estate continue earlier by streamlines syndication function and management AppFolio in resident property owners. processing provides billing, to product management. increased utility Investment bill empower year new a to fund utility that designed this and expand automating solution a Management, we and Also modern robust critical for investment the quarter, managers with capabilities a large

within transform further signing, materials AppFolio help investment We processes customers' investor sign experience. the capabilities document investors' operations, automate and our the all lets and new to businesses, to such subscription Document investors agreements, released track and important fund-raising including signing documents, improve portal. exchange, optimize as

that Argo AppFolio and Property AppFolio and to and investment added uses a Philadelphia it property modernize AppFolio Property investment in integrates of Manager, and recently Group, automate because Investment communications into estate suite Manager AppFolio company products Investment fully Property real with based Manager. their AppFolio Argo chose Management development services. management

Management Argo's us, Terr, Chief from us. investor. our with ultimately the our clearly us process partner, told and greater It helps us capital Officer and business, are more gives Investment investing raise investors Jeremy even and confidence they recently confidently more individual fund-raising communicate streamlines in each Risk consistently so and helps AppFolio

commitment our delivering solutions facing innovation reflect challenges offerings and rapid product new services and to the AppFolio's top our ongoing to solve technology to customers.

be Manager look where is and we to to our to seventh our We connect Santa forward event part Xth here Staying directly with in customers to Property a Barbara. October We conference AppFolio of are annual announce Xrd this excited close our Customer critical held customers. mission.

relationship partner relationship hopefully truly we to and can our to great continuing come.” we AppFolio. for leaned what Recently the commented, look forward in Investment we have decades in Baskin, on a safely successful boarded AppFolio Management to I partnership big means Plus be believer and it customer, AppFolio Manager growing a business. Brooks Property and “I'm AppFolio into Living, say believe XB a successful have I CEO, found

case functionality process firms of In Recently and business make our electronic And help financial on MyCase improve business to better legal of allows dashboards firms continue law intake focus data. simplify vertical, to now new provide the prospective insights decisions. automate help and performance. collecting to management we lead introduced that clients management

for our new Stevie services a was Business customer-first company best acknowledging as and technology are second At with category. AppFolio the AppFolio, Property two bring innovation during Gold to the Awards: products; we both Solution great Stevie our Manager American keys these driving quarter, One estate, real Best Customer Awards to the in great to and that Construction Service, principles, best AppFolio with from of customers. rapid believe the people recognizing in continues make Plus a that approach the recognized our Reinforcing Gold and Management pace

remain while customer delivering we growth, experiences, of ahead, long-term and executing -- strategy technology Looking on exceptional focused service. our our customer sustainable unsurpassed leading

call and for you that us joining our today. for concludes Thank

End of Q&A

XXXX, copy at will Monday, note, available of as of recording Eastern. be PM Please July the a X:XX XX,

You call. may XXXXXXX. entering concludes access conference and by dialing This today's X-XXX-XXX-XXXX the recording

may You disconnect. now

AppFolio (APPF) 29 Jul 192019 Q2 Earnings call transcript