AppFolio, Inc.
Q4 2020 Earnings Call Transcript

Published: 1 Mar 2021

[Operator:]

Ladies and gentlemen, thank you for standing by and welcome to the AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2020 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Erica Abrams. Thank you. Please go ahead.

[Erica Abrams:]

Thank you, Kristine. Good afternoon, ladies and gentlemen, and thank you for joining us today as we report AppFolio's fourth quarter and fiscal year 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.appfolio.com.

[Ida Kane:]

Thank you, Erica. Welcome to everyone joining us for AppFolio's fourth quarter and fiscal year 2020 financial results. We reported total revenue of $310.1 million for fiscal year 2020. GAAP net income was $158.4 million or $4.44 per diluted share. This includes a pretax gain of $187.7 million related to the sale of MyCase offset by a net tax expense of $51.3 million. For fiscal year 2020, we recorded income tax expense of $38.4 million. Also included in GAAP net income is $9 million in non-cash charges related to stock-based compensation. Our Form 10-K was filed today and includes more details on our results. On the call today to enhance clarity and comparability, I will discuss the results of our continuing real estate business, excluding the impact of the MyCase operation. To that end, revenue from our continuing business for fiscal year 2020 was $284.7 million, which represents an increase of 23% over revenue of $231.1 million in the year ago period. As you know, we provide innovative software, services and data analytics to customers in the real estate industry. Our solutions are used by property managers, whom we refer to as customers in our public filings and also by numerous other constituencies in the property management business ecosystem. These other constituencies include property owners, rental prospects, tenants, and service providers, whom we collectively refer to as users. We generate revenue from customers and from these users as our software and services aim to serve the full business ecosystem. Core solutions revenue derived from subscriptions to our customers in our continuing business and fiscal year 2020 was $86.5 million, an increase of 19% over $72.6 million for the year ago period. Value+ services revenue from our continuing business was $184.2 million in fiscal year 2020, an increase of 27% over $145.2 million for the year ago period.

[Jason Randall:]

Thanks, Ida, and thank you all for joining us today as we share our fourth quarter and fiscal year 2020 results. Our financial performance in 2020 is a testament to our steadfast focus on three areas. First, innovating to better enable our customers to automate essential business processes, enhanced business interactions and leverage data to predict and optimize business workflows. Second, delivering an exceptional customer experience and third, enabling a thriving company culture.

[Q -:]

[Operator:]

Thank you for participating in today's conference call. This call will be available for replay beginning at 7