AppFolio’s Value-Added Services Segment Poised to Drive Future Growth

U.S. property management software provider, AppFolio (NASDAQ: APPF), announced its second quarter 2024 earnings, revealing a significant 34.2% increase in revenue year-over-year, reaching $197 million. For the full year, analysts expect continued double-digit growth of 26%, with total revenue estimated at $779 million. Historically, AppFolio’s revenue has been driven by its value-added services segment. In 2020, value-added services accounted for 63% of AppFolio’s total revenue, while core solutions contributed 33%. Based on Visible Alpha consensus, by 2025, the value-added services segment is expected to account for 77% of AppFolio’s total revenue, with core solutions’ share declining to 22%.

AppFolio provides a range of property management services via its core solutions segment, which includes AppFolio Property Manager Core, Plus, and Max. Its value-added services segment includes online transaction services for property managers, tenant screening services, event insurance services to renters and landlords, and automated marketing tools.