AppFolio, Inc.
Q1 2020 Earnings Call Transcript

Published: 4 May 2020

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

[Erica Abrams:]

Thank you, Josh. Good afternoon, ladies and gentlemen. And thank you for joining us today as we report AppFolio's first quarter 2020 financial results. With me on the call today are Jason Randall, AppFolio’s President and CEO; and Ida Kane, AppFolio’s Chief Financial Officer. This call is simultaneously being webcast on the Investor Relations section of our website at www.appfolioinc.com. Before we get started, I would like to call everyone's attention to our Safe Harbor policy. Please note that certain statements made on this call may be forward-looking statements within the meaning of the federal securities laws that are subject to considerable risks and uncertainties. Actual results or performance may be materially different from any results or performance expressed or implied by the forward-looking statements.

[Ida Kane:]

Thank you, Erica, and welcome to everyone joining us on the call today for AppFolio’s first quarter of fiscal year 2020 financial results. First and foremost with regards to the COVID-19 pandemic, we hope all of you and your families are staying safe during this unprecedented time. We continue to work hard to best ensure the health and welfare of our employees, our customers, and our surrounding communities. To mitigate the adverse impact COVID-19 may have on our business and operations, we have implemented a number of measures to protect the health and safety of our employees, as well as to strengthen our financial position. These efforts include increasing our available cash position and eliminating, reducing or deferring non-essential expenditures, as well as adopting local and state government recommendations to protect our workforce. Beginning in mid-March, we transitioned our all 1,300 employees to remote work environment, restricted non-essential employee travel, and minimized costs associated with running our facilities. We continue to closely monitor trends in our business and the broader markets to determine what additional steps may be necessary for our employees, customers, and operations. In addition, we've taken strategic steps designed not only to protect AppFolio in this period of uncertainty, but also to ensure that we're able to capitalize on new and existing opportunities as we move forward. Turning to the first quarter, we had healthy demand for our products and services. We reported total revenue of $72.5 million, a 27% increase year-over-year. GAAP net income was $2 million, or $0.06 per diluted share during the quarter, compared to GAAP net income of $3.7 million, or $0.11 per diluted share in the first quarter of last year. Also included in our first quarter results is $1.9 million in non-cash charges related to stock-based compensation. For those of you who track non-GAAP results, our Form 10-Q was filed today and includes more details that you might find helpful in calculating non-GAAP results on your own.

[Jason Randall:]

Thank you, Ida, and thanks to everyone for joining us today. In the first quarter of 2020 we continued on our mission to revolutionize vertical industry businesses by providing great software and service to our expanding customer base. As COVID-19 rapidly changed our lives and those of our customers, we work quickly and strategically to bring value and education to our customers and ensure the safety and wellbeing of our employees. Our technology serves as the systems of record, engagement and intelligence for our customers and delivers mission-critical end-to-end customer experiences. As a result, our customers rely on our cloud-based software to run their businesses and have been able to maintain business continuity and continue to serve their customers. In our real estate vertical, property managers and owners are focused on keeping their residents, vendors, teams and homeowners safe while maintaining business operations. Alethea Parker, President of Artcraft Management and AppFolio Property Manager PLUS customer with over 4,500 units recently told us “I am so thankful that we run our business on AppFolio.” We could not have taken the steps to protect our office, maintenance and corporate teams without AppFolio Property Manager PLUS, as it lets residents make payments and submit work orders online while our team can communicate with our residents and pay vendors remotely.

[Operator:]

As a reminder, a replay of this conference will be available starting at 7

[End of Q&A:]