Shares hit an all-time high after the company posted record revenue results.
Shares of AppFolio (APPF 6.32%) jumped Friday after the real-estate software company reported a substantial surge in revenue growth and a meaningful improvement in profitability in the third quarter. The stock touched a new all-time high early in the session, and as of 12:45 p.m. ET, it was up by 7.7%.
AppFolio shrugs off the market slump
AppFolio, which offers cloud-based software for managing rental properties, reported its results for the third quarter after the close Thursday. Revenue was up 32% year over year to $165.4 million, its highest quarterly growth rate since 2019. This was ahead of expectations, bolstered by the sequential addition of roughly 100,000 net new rental units managed by its software.
Moreover, AppFolio's operating income improved from a $7.8 million loss last year to a loss of only $100,000 this year -- essentially breakeven.
A couple of analysts raised their price targets for AppFolio stock in light of the Q3 results. For example, DA Davidson analyst Peter Heckmann has a buy recommendation on AppFolio, and according to StreetInsider, he just raised his price target on it from $230 per share to $240 per share.
AppFolio expects a strong finish in 2023
In light of that strong quarterly performance, AppFolio's management raised its full-year revenue guidance. Before, it had been predicting revenue in the range of $592 million to $598 million. Now, it expects revenue of between $608 million and $612 million.
The midpoint of that new guidance range assumes fourth-quarter revenue of $161.4 million, which would be about a 30% year-over-year jump. That's solid growth in a challenging market, and it could keep AppFolio stock flirting with its highs.
Shares of AppFolio (APPF 6.32%) jumped Friday after the real-estate software company reported a substantial surge in revenue growth and a meaningful improvement in profitability in the third quarter. The stock touched a new all-time high early in the session, and as of 12:45 p.m. ET, it was up by 7.7%.
AppFolio shrugs off the market slump
AppFolio, which offers cloud-based software for managing rental properties, reported its results for the third quarter after the close Thursday. Revenue was up 32% year over year to $165.4 million, its highest quarterly growth rate since 2019. This was ahead of expectations, bolstered by the sequential addition of roughly 100,000 net new rental units managed by its software.
Moreover, AppFolio's operating income improved from a $7.8 million loss last year to a loss of only $100,000 this year -- essentially breakeven.
A couple of analysts raised their price targets for AppFolio stock in light of the Q3 results. For example, DA Davidson analyst Peter Heckmann has a buy recommendation on AppFolio, and according to StreetInsider, he just raised his price target on it from $230 per share to $240 per share.
AppFolio expects a strong finish in 2023
In light of that strong quarterly performance, AppFolio's management raised its full-year revenue guidance. Before, it had been predicting revenue in the range of $592 million to $598 million. Now, it expects revenue of between $608 million and $612 million.
The midpoint of that new guidance range assumes fourth-quarter revenue of $161.4 million, which would be about a 30% year-over-year jump. That's solid growth in a challenging market, and it could keep AppFolio stock flirting with its highs.
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