APPF - Earnings call transcript Q1 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the AppFolio, Inc.

First Quarter 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions].

I would now like to hand the conference over to your speaker today, Erica Abrams. ahead. go Please

Erica Abrams

today Good Officer. for Josh. www.appfolioinc.com. of first and And webcast Kane, Investor the gentlemen. XXXX and the AppFolio’s Thank and on call CEO; us afternoon, website is today our you Ida call on me joining results. Chief AppFolio's section Jason as thank at Randall, financial President Financial you, AppFolio’s With ladies are This we Relations quarter being report simultaneously

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

the plans. the may Forward-looking plans, future operations, development referring any or objectives uncertainties. today XX-Q conditions, greater results to statements business business was earlier plans AppFolio’s effects see our upon of forecasts of statements, such relate SEC and and our and which pandemic financial filed potential impacts product plans with including to Form risks about strategic and detail for including filings and the Please COVID-XX

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

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

Ida Kane

first XXXX AppFolio’s joining Erica, the and today on financial quarter for fiscal you, to of everyone year us Thank welcome results. call

time. hope this to you the First are your of and all unprecedented staying and safe foremost COVID-XX pandemic, families regards we during with

our of ensure protect We communities. on our and employees, continue increasing employees, to COVID-XX to as and customers, strengthen workforce. to implemented safety a measures mitigate position our hard financial efforts of to non-essential our operations, and position. and of our number reducing may state have To local adopting the as surrounding have best business expenditures, impact recommendations we the well health as adverse government eliminating, welfare deferring our to and work the health cash include protect our These or available and well our as

Beginning transitioned work restricted minimized all employees to X,XXX our in associated mid-March, facilities. non-essential environment, we with travel, our remote costs running and employee

We our business to and broader trends continue our necessary steps additional be customers, operations. employees, monitor in determine to markets may the and closely what for

this also designed as In addition, strategic to in of uncertainty, to and able capitalize existing AppFolio to taken we've ensure but move steps forward. that protect period new we we're opportunities not only on

in compared million, healthy $X first of quarter, in we GAAP revenue of $X.X Turning the was had per to is $XX.X of quarter million to results our or in quarter related income last share diluted year-over-year. the We Also net and GAAP per or included $X.X services. year. non-cash increase share diluted demand net compensation. $X.XX $X.XX first stock-based to million, during charges the first income reported million, our products quarter, XX% a total for

non-GAAP in helpful results, might you your own. calculating was non-GAAP you on details more of our track includes those that XX-Q For and today find who results filed Form

solutions in core Revenue was year-over-year. from up the quarter $XX.X million, first XX%

revenue increased of services our payments, of as a as property usage Revenue increased number we XX% base each $XX.X management. manager screening property Value+ increase of a be and was serve. larger units under majority to in First was driven manager insurance a increase XX% electronic an manager customers primarily year-over-year. a in revenue the and property continues million, in high growth services services Value+ quarter The of areas from well these by XX% by our of customers units by in number driven year-over-year. increase Growth of management under

variability, experience in and During place negative U.S. XXXX, did in XX, the Value+ in both put positive we demand government March months the services ended after were three restrictions some for certain

expenses, quarter a increased first and total costs XX% year-over-year compared expenses operating for an in basis to total GAAP increase Turning the on revenue. to overall XX%

is value. Partially due expense offsetting accruals for costs Our changes growth COVID-XX. in long-term year-over-year $X.X new of million increase impact compensation that and increase positively an impact adjustment related the believe year-over-year incentive-based quarter XX% expenses the and of to in enable to shareholder is to in primarily headcount we future customers to growth operating offerings will first reflecting support potential our in the to

XXXX we As given we in of expected this would the have uncertainty. more variability have could than otherwise progress we through the balance expense

closed from ended up under real in XX,XXX with the million portfolios year and ago. ago. vertical In property aggregate XX,XXX customers managing X.X first we the quarter reported year customers million units with management XX,XXX We of their estate manager XX,XXX an to quarter legal the X.XX compared one one units customers

to and of drew investment $XX.X million million Moving equivalents that down our the from total balance revolving closed quarter. the securities $XX.X cash, and sheet, This quarter debt. the approximately cash we in with facility we $XX during million includes

million in We generated operating quarter. $X.X the from first activities

million is a corporate the our XXXX. quarter the and build that to of in and growth be facilities, completed capital Our Barbara property of for during in were majority quarter expected uses second headquarters continued purchase to relates the which expenditures of equipment $X substantially Santa primary to of the out of expansion cash of our

technology offering. also development of in services with realized connection software in capitalized We $X.X costs our million investments continued and

related Finally, of of repurchase shares we spent repurchase program. the and the for to under our $X.X $X million million contingent share current Dynasty acquisition consideration paid

healthy began demand for which enable their XXXX of manage our businesses summary, with designed we to fiscal and many customers In our products services, year to are virtually.

will the positive variability for services of unclear products impacts be although demand negative. continue presently could a cumulative result pandemic, the expect and is as We our COVID-XX or it whether

best close to responding we are customers in We their to with that the ensure to solutions. needs innovative environment stay with continue and current to our listen

unable for more the products and impact potential While the our extent our services, COVID-XX first by with full encouraged of certainty demand of business and we’re our reasonable financial and results pandemic we’re to results. of the any the quarter predict degree of on recent the

are we previously withdrawing result, for the to XX year average to a communicated approximately expect weighted shares. share diluted be full We As continue million our XXXX. year do revenue year count for outlook our fiscal

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

Jason Randall

for the service customer to first base. businesses industry expanding to and software In Ida, you, thanks continued revolutionize our providing great to our and on vertical us Thank mission joining everyone we of XXXX today. quarter by

safety rapidly those work wellbeing our employees. bring education COVID-XX and to changed lives and customers, our value customers and As we our ensure strategically the of quickly our of and to and

Our systems experiences. the customer serves end-to-end engagement technology record, and of intelligence as mission-critical delivers our for and customers

result, their our to customers. to run software on continuity to and business serve maintain a customers rely been their cloud-based have As businesses able our and continue

on vertical, thankful and Property over business In on told safe our and vendors, focused AppFolio us teams residents, of so that with units their Parker, Management PLUS real are estate keeping recently and am business owners managers AppFolio.” Artcraft President Manager maintaining operations. customer run property homeowners our X,XXX we Alethea “I while

our taken our and submit make it work not communicate PLUS, as corporate the payments online lets while could team and maintenance and protect AppFolio with vendors remotely. Manager steps to orders teams have our residents pay We can office, Property without residents

operations teams their We Lisa, enables leasing experience. leasing available functionality customers of units Assistant, video showings leases with the maintain contact. any This virtual show AppFolio have Leasing to end-to-end to expanded leasing live and prospective walkthroughs providing by new without allowing AI include sign to AI-powered residents, in-person virtual hosting

AppFolio.” so Property AI units are doing of COO maintenance much. everything what Manager early expressed of us but easily Assistant showings with don't has and virtually through remotely how AppFolio center times, now getting and AppFolio support. Hartman], be to These told her your We're Leasing and all-in-one communicate contact uncertain wasn't managing and able user business. in virtual tools recently over amazing the Manager AppFolio to “I PLUS AppFolio being work [Rosen alongside it Fairline has for helped like if leverage we're know worked and support we it right an would She Management, team X,XXX Property

across workflow to maintenance We also as ability post announcements managers the custom the and to property such homeowner resident, owner to post communication AppFolio tools released enable important enhanced functionality added policies. to and portals safety

easier capabilities and to empower We waive plans online collection, it fees our improved capabilities for to efficiency rent for customers including and late track our make renters. that payment flexibility and provide payment deliver to

around logistics communication a customers throughout This that request stay community while and to leverage For we messaging, feature for a single association in-app the allow architectural portal excellent capabilities a communication them review features and to experience. to sync extended disparate and in of manager record without keeps streamlines managing delivering project portfolios, discussing In letting homeowner our homeowners channels. association the

Management, including shared flow as electronic page the In Investment portal portfolio a leveraging revamped can online deal signing. improvements fund their document raising we communication are Investor via AppFolio investors. visibility QX, and for our tools to customers well online that be released AppFolio as

document reporting. our to Investor login and activation We statements made uploads sharing also and flow, Portal improvements and investor and

good. any level It's stated, from better Investment Partner Point of our institutional investors recently strive any some Managing Feedback Five system AppFolio of of Gluckstal, simple and love service. is the that It's what Management. designer that investment Estate for.” Corey than should so Real “I is is correspondence

Prior held estate to all be AppFolio experience, at In management experience AppFolio, extensive at in real will Software, We he Salesforce and roles, as business services. I'm President to to Prior believe strategy software-as-a-service joining General Trigg has the Shane right I've Real Intuit joined Estate positions Real vertical that Solutions. lead for Shane in reporting product and variety leadership to well Manager formerly recently happy the perspective me. announce future. most the of brings at Commerce mentioned, of and that property to Vice enhancements Senior also execution Estate leadership a AppFolio Shane to mid he our the the spent April, real addition into products to eight Cloud. skills that years leading leadership and MRI estate

working MyCase. that capture without MyCase enabling entries customers new more a enabled two-way find including that has we billable time expanded to overlooked feature released Law quarter, features is Time an recently to love firms in new email while lose houses.” while We In and home. MyCase revenue, Smart the text continuity beat MyCase. Finder, our the attorneys we a messaging of My Christie work Christie helps business and clients “MyCase capabilities of ever working maximize several past Firm said, remotely. the centralizes help together case communication releasing time. automated tool To me can leaving better not from maintain Nicole

to firms continue solution. we'll ahead deliver features look cases one help in we improve their communication designed revenue, and As manage to maximize centralized

Turning deliver to safety seriously. investment our and and deep tools team, very availability well even we of families, our remote performance we have workforce to designed their communities required our the cloud-based software, we of our a take to a business employees, this usual to services. infrastructure prepared technology maintain in in during That's time, continuity the and be the capacity. as our with allowed operate Because

building remaining I'm have inception, AppFolio. our agility that and customers’ team they focused prioritized collaboration has to needs. work while ethic, the I team's an to for outstanding built continue the Since have our by for our culture commitment we cross be and department positive impressed on thankful AppFolio and

continue and culture Our Great for strong FORTUNE Texas Work, the and innovative recognition to and to best innovative including as technology industry, places to and our awards gain in culture, Place Magazine from leadership. received leadership we work throughout

the Assistant, Business Group addition, Intelligence by Intelligence AI Excellence AppFolio Leasing In Artificial Award the are AppFolio with for products recognized Lisa.

engaged In on business, enable continue our team. for to our business, and areas and growth we focused remain long-term sustainable that customers' happy summary, our

actively navigate with listening and businesses a our and to for partnering future. their for help to continue solid their customers challenges to are We build provide the them foundation and

our in in business ongoing while the committed needs our we contributing customer expect and the to growth ahead, success. long-term remain for driving customer sustainable fluctuations we to months market While

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

Operator

replay, As at very this much. use PM X:XX great access day. conference Eastern the a XXX-XXXX a of Thanks you dial XXXXXXX. reminder, to event which ID available the a today, conference will (XXX) time. to and Have replay is In enter be code order starting listen please to your

AppFolio (APPF) 4 May 202020 Q1 Earnings call transcript