APPF

Appfolio Inc - Ordinary Shares - Class A

TMT


Presented:11/10/2023
Price:$198.85
Cap:$7.11B
Current Price:$201.97
Cap:$7.33B

Presented

Date11/10/2023
Price$198.85
Market Cap$7.11B
Ent Value$6.52B
P/E RatioN/A
Book Value$7.35
Div Yield0%
Shares O/S35.76M
Ave Daily Vol158,142
Short Int3.21%

Current

Price$201.97
Market Cap$7.33B
AppFolio, Inc., provides industry-specific cloud-based business software solutions, services, and data analytics for the real estate industry. The firm offers AppFolio Property Manager, a property management solution designed to address the operational and business requirements of property management companies and their business ecosystems and AppFolio Investment Management, a cloud-based software solution for real estate investment managers of various sizes that provides tools and services designed to streamline their real estate investment management businesses. It also provides Value+ services that are designed to enhance, automate, and streamline processes and workflows for property management businesses, such as artificial intelligence leasing assistant, tenant screening, electronic payment, utility management, maintenance contact center, tenant debt collection, and mailing services. The company was founded by Brian Donahoo, Klaus Schauser and Jonathan Walker in 2006 and is headquartered in Santa Barbara, CA.

Publicly traded companies mentioned herein: Appfolio Inc (APPF)

Highlights

The presenter is short shares of Appfolio Inc (APPF), a property management software provider that is up ~80% YTD. New units on the platform surged during the pandemic as property managers looked to offer digital rent payment options to tenants, and the added convenience for landlords and tenants allowed that trend to continue until recently. The core fundamentals of the business are now decelerating due to the macroeconomic landscape, but this dynamic is being masked by two meaningful levers that management pulled in Q3 (eCheck fees, headcount reduction). The presenter expects APPF to miss on 2024 revenues and potentially margins depending on management’s commentary when APPF hosts its November 14th Investor Day, setting up the stock as a strong short following the Investor Day. 

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Idea Discussion

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