Summary
AppFolio closed fiscal 2024 with fourth quarter revenue of $203.7 million, up 18.5% from the prior-year quarter. Full-year revenue reached $794.2 million, up 28.0% from fiscal 2023. The quarter capped a year of product and platform work, including new AppFolio Realm-X capabilities and a transformed resident vision. Property management units under management ended the year at 8.7 million, up 6% year over year. The company served 20,784 property management customers as of December 31, 2024, compared with 19,737 a year earlier. AppFolio also acquired Move EZ, Inc. in the fourth quarter of 2024, which added intangible assets and goodwill to the balance sheet.
Profitability was mixed. Fourth quarter GAAP operating income was $22.96 million, down 18.7% from the prior-year quarter. GAAP operating margin was 11.3%, down 5.2 percentage points from a year earlier. For the full year, GAAP operating income was $135.64 million, up 13,985.6% from fiscal 2023, and full-year GAAP operating margin was 17.1%, up 16.9 percentage points. Net income was $102.73 million in the fourth quarter, up 239.4% from the prior-year quarter. Full-year net income was $204.07 million, up 7,452.5%. Diluted earnings per share for the full year was $5.55, up 7,828.6%. The wide gap between full-year operating income and net income reflects an income tax benefit tied to the release of a valuation allowance against certain U.S. federal and state deferred tax assets, as described in the annual report. Non-GAAP operating income was $41 million in the fourth quarter, or 20.2% of revenue, compared with $42 million, or 24.3%, in the prior-year quarter. For the full year, non-GAAP operating income was $200 million, or 25.2% of revenue, compared with $76 million, or 12.2%, in fiscal 2023.
Cash generation remained a strength. Fourth quarter operating cash flow was $36.57 million, up 17.3% from the prior-year quarter. Full-year operating cash flow was $188.16 million, up 212.1%. Capital expenditures were $0.20 million in the quarter, down 93.7%, and $2.02 million for the full year, down 77.7%. Operating cash flow and free cash flow are different measures. Non-GAAP free cash flow, which subtracts purchases of property and equipment, capitalized software development costs, separation payments, lease termination payments, and severance payments, was $35 million in the fourth quarter, or 17.3% of revenue, compared with $34 million, or 19.9%, in the prior-year quarter. Full-year non-GAAP free cash flow was $182 million, or 22.9% of revenue, compared with $74 million, or 11.9%, in fiscal 2023.
Management's outlook for the full fiscal year 2025 points to a range of $920 million to $940 million. Full-year non-GAAP operating margin is expected to be 24.5% to 26.5%. Diluted weighted average shares outstanding are expected to be approximately 37 million for the full year. The company expects its top line for the year ending December 31, 2025 to increase compared with 2024 as it adds customers and units and sees more adoption of Value Added Services. It expects cost of revenue to stay relatively flat as a percentage of revenue, sales and marketing to slightly increase as a percentage of revenue, research and product development to decrease as a percentage of revenue, and general and administrative expenses to decrease as a percentage of revenue. Depreciation and amortization is expected to increase as a percentage of revenue because of amortization from the Move EZ acquisition.
Risks include seasonality in Value Added Services. AppFolio typically sees a sequential revenue decline in the fourth quarter after higher leasing activity in the second quarter and move-in related demand in the third quarter. Macroeconomic factors, tenant behavior, product mix, and adoption of less seasonal Value Added Services can amplify that pattern. The annual report also notes non-cancelable purchase commitments of $57.5 million due mostly over the next three years and operating lease obligations of $50.4 million, with $32.9 million due over the next five years. The company has a share repurchase authorization of up to $100.0 million and has repurchased $4.2 million of Class A common stock under the program. The valuation allowance release that lifted 2024 net income may not repeat, and the company still faces execution risk around acquisitions, new product adoption, and competition.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $203.7M | $205.7M | -1.0% | $171.8M | +18.5% |
| Research & development | $42.3M | $40.7M | +4.0% | $34.8M | +21.4% |
| Sales & marketing | $33.4M | $25.4M | +31.6% | $21.5M | +55.5% |
| General & administrative | $23.4M | $21.1M | +10.9% | $19.0M | +23.2% |
| Total operating expenses | $180.7M | $163.2M | +10.8% | $143.6M | +25.8% |
| Operating income (loss) | $23.0M | $42.6M | -46.1% | $28.2M | -18.7% |
| Operating margin | 11.3% | 20.7% | -9.4 pp | 16.4% | -5.2 pp |
| Net income (loss) | $102.7M | $33.0M | +211.3% | $30.3M | +239.4% |
| Net margin | 50.4% | 16.0% | +34.4 pp | 17.6% | +32.8 pp |
| Diluted EPS | $2.79 | $0.90 | +$1.89 | $0.83 | +$1.96 |
Risks
Tenant screening services are highly regulated under the FCRA, Fair Housing Act, and state laws; the company is routinely accused of noncompliance and has faced FTC and CFPB scrutiny, including a January 2021 FTC settlement with ongoing compliance obligations. Failure to comply could result in per-occurrence fines, litigation, or an injunction against providing tenant screening services.
The electronic payment services business relies on a limited number of third-party providers, including a sponsoring clearing bank and card processors, with no backup for some services. The company bears return and chargeback losses if it cannot collect from customers, and has experienced financial loss from third-party bad actors accessing its systems or customers' systems.
All revenues are currently generated from customers in the real estate industry, so higher interest rates, rental-market conditions, customer consolidation, bankruptcies, or real estate-specific regulatory changes could reduce demand and increase attrition. This concentration exposes results to factors unique to the real estate industry.
The company stores and transmits sensitive personal and proprietary data, and it has previously taken corrective action against cyber attackers and had code improperly accessed through third-party code hosting platforms. A security breach or human error could result in loss, theft, or unauthorized access to customer or employee data, leading to litigation, fines, penalties, reputational damage, and customer loss.
The company employs machine learning and generative AI in its product and service offerings, exposing it to evolving AI laws, increased regulatory oversight, litigation, and intellectual property infringement claims. Biased, misleading, or harmful AI outputs could damage brand and reputation or create liability.
The company acquired Move EZ, Inc. in 2024 and has limited experience integrating acquisitions; it may fail to achieve anticipated synergies or may incur impairment charges on acquired goodwill and intangible assets. Depreciation and amortization expense is expected to increase as a percentage of revenue in 2025 due to amortization of Move EZ intangible assets.
Value Added Services revenue is seasonally higher in the second quarter due to leasing activity, typically producing sequential revenue increases in the first, second, and third quarters and a sequential decline in the fourth quarter. Quarterly results may fluctuate significantly, and period-to-period comparisons may not be meaningful.
Certain functionality depends on third-party providers for cloud hosting, customer relationship management, texting, emailing, electronic payments, tenant screening, and insurance offerings. If providers cease providing products, fail to perform, or are acquired by competitors, the company's solutions and demand may be harmed.
Algorithmic pricing tools in the real estate industry have faced criminal and civil antitrust investigations, regulatory enforcement actions, and private class actions. Even if the company believes its services comply with antitrust laws, similar challenges could cause significant expenses, management distraction, reputational damage, fines, damages, or settlement costs.
The company depends on highly skilled personnel and faces intense competition for talent with upward pressure on compensation. If the perceived value of equity awards declines or the stock price is volatile, the company may have greater difficulty retaining and hiring qualified employees, which could impair strategic objectives.
Adverse global and regional economic conditions, including recessionary or inflationary pressures, tightening credit markets, reduced consumer confidence, geopolitical events, and other macroeconomic developments, could reduce demand for the company's products or increase its costs.
SaaS KPIs
All quarters →Property management customers
Non-GAAP operating margin
Non-GAAP Free Cash Flow Margin
Total units under management
Summary, forecast, risks and KPIs are extracted from APPFOLIO INC's SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.