APPF - Earnings call transcript Q4 2019

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Operator

Thank you for joining us today. Welcome to the AppFolio, Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call.

I would now like to turn the call over to Erica Abrams. Thank you.

Erica Abrams

Thank you, Christine. gentlemen. and ladies afternoon Good Thank you fourth we AppFolio's today joining and fiscal us quarter results. as year report for XXXX financial today and Randall discuss by of joined to these Ida AppFolio results. I'm Kane Jason our being is the section webcast This website call www.appfolioinc.com. simultaneously at Investor on Relations of

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

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

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

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

Ida Kane

XX% a fiscal XXXX. $XX was call diluted share XXXX, million, share and fiscal results. Thank the us We on in XXXX million diluted fourth for a fiscal $XXX our reported everyone AppFolio’s year-over-year. or had compared or of $X.XX revenue GAAP net strong joining income to increase million Erica, year $XX.X per $X.XX welcome quarter full financial per to with and you, today year year

year are compensation. benefit, million related our allowance assets. related valuation Fiscal charges in Also tax year results of based XXXX release stock $X.X XXXX to against the million results income non-cash $XX.X fiscal primarily net of to included deferred tax included

calculating filed includes relevant you non-GAAP form on in XX-K of own. detailed data you your results helpful might today results, our financial those who non-GAAP that points For any and find more track was

one a X.X of the XX,XXX increase X.XX portfolios, million The with million to XX,XXX and average Manager acquired customer an is of units real-estate year and year We Customers, management. customers result compared continued counts reported management customers with Property year-over-year managing efforts their size ago. in under ended unit acquiring in our fiscal higher units XXXX net new under success aggregate of

reminder, customers real-estate the Manager and PLUS to solutions. as These our we Customer Property are manage As Property AppFolio Property Manager define their number a Manager a grow subscribing base customers businesses. using AppFolio of or to core

up the In vertical, year from we ago. legal with customers one closed year the XX,XXX XX,XXX

our Manager annual information XX, filing December XXX% and on dollar base expansion. you year our net for customers. I respectively encourage based This how dollar for today compares XXX% in to customers for expansion of law XXXX. XXXX fiscal to X-K our read calculate As our net firm XXX% Property was we annual XXX% more and

XX% quarter, recent million. for most $XX.X a our to was increased quarter Turning the the total income $X.XX GAAP-net or same year diluted tax includes fourth share, over period per one benefit. which income million $X.X million revenue to ago $X.X

in in increase year-over-year, was solutions Core and due customers. Manager a $XX.X Property the a a XX% million, XX% under XX% of in to the Property increase revenue quarter units fourth number primarily Manager increase management

higher of usage was to under by year-over-year. be Revenue our a and Customers, payments, continues value by screening area from of services as base a insurance each year-over-year. a plus electronic this value increase Manager in as number quarter million, services $XX.X plus services our units growth of management. well increased Fourth majority XX% revenue of driven of larger increased Property The

for discussed fees Other offer, standalone a hosting website Customers our $X.X we Property upgrading as revenue fourth from our the generated customer as with we to million well revenue as quarter, was in Manager to new related associated subscriptions services last primarily quarter.

expenses to operating The for XX% primarily term and an related expenses, XX% to will increase positively is growth areas total overall year-over-year in quarter the revenue. costs compared costs value. increased long a support shareholder impact XX% in fourth we believe Turning to in increase year-over-year, total to that growth headcount

larger, Property areas These Customers, AppFolio Management include Property Manager Investment investments PLUS which real-estate our to offering in real that more our complex more will Jason Managers. service additional Investment service AppFolio and estate Manager investment speak shortly.

debt. cash our the balance closed million and cash, $XX.X sheet, $XX.X million we in securities equivalents Moving quarter of approximately with and investment to

At sheets During have assets our related building. signed liabilities on Santa the for long-term leases places. million balance ownership million to new $XX fourth end our of and change XXXX Barbara in existing the majority $XX in we approximately these with the we quarter of in in year campus the of connection recorded lease

fiscal million For generated activities. $XX.X the from we year, operating

our did repurchase uses We million. $X.X in the in of for any primary cash share stock XXXX $XX million software million of costs of and authorized repurchases million year Our acquisition expanding employee purchase $XXX and $XX offices not with development during our were program for capitalized fiscal base. of property equipment Dynasty, connection initiate and against the

look and growth our we over our we long business, to fiscal drivers investments the As XXXX, remain about term. enthusiastic

million, For full the revenue XX%. range to which XX% million represents of range year to $XXX fiscal to in XXXX, be expect of growth we the $XXX in

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

that, I'll comments. prepared additional With That turn my the concludes to call over for remarks. Jason

Jason Randall

year report Ida. Thanks financial as quarter we you fiscal fourth today for XXXX results. and Thank our us joining

progress customer our We term on reflect experience on focus delivering enabling and their our and revolutionizing exceptional an business. our company attribute financial in service our results all stakeholders, vertical culture, with thriving our XXXX sustainable in industry a success for customers great steadfast and focusing growth providing innovating continued businesses, our by to Our and to while focus customers. software long

improvements APM software, peer designed We steps managing our AppFolio vertical business, important development a term needs. our in important with position award our more through Manager long to and larger winning both made internal PLUS, to for In that real-estate for of advance acquisition we businesses took Property complex continue AppFolio success. PLUS,

deeper Our portfolios. innovative focus efficiency, at workflows, here insights was and as for automation manage capabilities our in improve more such risk extended customers with business provide teams to complex more mitigate large, to We property customers to provide who configurable continue business scale. dispersed flexibility help

also feedback focus We PLUS prospects. adoption customers reviews center growing management of with an The auditing APM actions provide improving for employees’ customers of platform. greater continued the functionality favorable and is across and and from of our oversight result on

know, incorporate assistant our AI plus products offering. to service into many marketplace continue Dynasty early acquired AppFolio and released here XXXX our we technology as businesses. improve to a of As Lisa, leasing value you we AI customer’s in quickly From

released the core powerful We developed bring now Smart the of offering. and will Manager that is feature of further feature well artificial harnesses enable included the Bill hours up intelligence revolutionize in real invoice Property by that through a AI future. us This power to entry automation. into technology Entry, believe our a industry We AppFolio estate

in XXXX. oil manage to gas Also Management, the a portfolio water, plus provides in launched technology XXXX more September information efficiently they on Utility larger and the that energy, value legalized was use. based offering This need cost owners we AppFolio early acquisition and managers

community to Board association other managers and improvements their areas community enhanced association investment to In boost Member and product efficiencies Board serving continued processes we streamline tracking such managers larger as features automation and through with our and further in communication. enable Management

fundraising, XXXX their real-estate and early AppFolio for launched communication. an reporting investors better we empowers modern Management, streamlining In AppFolio managers. designed real-estate managers with by Investment offering serve a Investment investment Management to investment solution

while This along visualize key offering is increased with self-service designed investment Investor providing metrics, ways flexible XXXX estate investors In for portal. performance for we automatically calculating transparency by new investors, enhanced customers for provide and personalized to managers. providing AppFolio the real investments for of reporting in QX, their performance the to capabilities tools experience

and click Homes Brooke in investment to in information of distributions. early using can Herman, Controller place and recently ecstatic AppFolio individual our Investment to Customer been they Management, an see Manager and AppFolio all investors adopter of have log AppFolio one single into have every since Property their Pacific where said, Management Investment Apartment

We that estate the ability will of in invest real continue innovation our growing extends segment to serve to market.

law remained performance added business the capabilities client. performance, better helping and and help that throughout and serve that we end measure decisions. we to customers insights make allow introduce our that management improve case Turning legal To on provide firms XXXX legal business to vertical, and marketing better modern focused dashboards firms to financial

e-signature add new to outstanding automated also the and text new managing We plans. continue collect payment continue firms enable finally, payments of addition payment their offering and including to with cases, And law the messaging. enhance the to balances, to to efficiency we more of of methods improve features

growth in experience. XXX relies focusing and of XXXX, places culture, recognition During Employers with strong At experience, our that fosters AppFolio fourth culture an and believe a continued to industry solely technology. XXXX culture, gain best honored work the for award on was the results building the company, that Award for Choice innovation, excellent AppFolio In that former on recognizing and current the strong innovative a we AppFolio employees. employee in input Glassdoor customer to quarter,

the AppFolio. and Board development Klaus As press and has and May Walker and Strategist our company's deeply of X XXXX and co-founded Chief our AppFolio. of from leaders His as vision in continue in Klaus been a Klaus on filed AppFolio culture. AppFolio have contributions been force release Directors. throughout know will for AppFolio’s embedded within X-K strategy retire are driving you and today, effective influential may strategists Jon Schauser

work Board. his passionate continue member retirement in of did he active business closely as to As work our years, into will AppFolio’s expect I and with Klaus active transition a and

for are leadership and in and his his for this thank him Klaus chapter begin to We life vision next of AppFolio. excited

growth we summary, business. areas enable that sustainable term remain long our for on focused In

create We happy by all by experiences our that exceptional to an and modern engaged customers, technology solutions fueled expect and delivering this team. accomplish for innovative

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

[No Q&A this Session for event]

Thank today, ID today's conference X:XX This March replay results for The X, in fourth number you on ID replay to number for the call. replay Again, will is XXX-XX-XX. through the PM is eastern XX:XX at dial is available X-XXX-XXX-XXXX. financial The for beginning XXXX quarter for XXX-XX-XX. eastern be AppFolio call replay conference XXXX. conference participating for PM

concludes This today's call.

disconnect. now may You

AppFolio (APPF) 2 Mar 202019 Q4 Earnings call transcript