Why AppFolio Stock Dropped Today
Shares of real estate management software company (NASDAQ: APPF) dropped on Friday after the company reported its financial results for the fourth quarter of 2024. As of 12:10 p.m. ET, AppFolio stock was down about 8%.
AppFolio's management expected Q4 revenue of $195 million to $199 million. But in Q4, the company generated revenue of $204 million, which was up 19% year over year. Revenue was boosted by a 6% increase in the number of rental units being managed by its software.
One of the biggest negatives in the Q4 report is AppFolio's operating expenses. All of its operating expenses were elevated, which dropped the company's operating profit. Whereas it had $28 million in operating income in the prior-year period, it only had Q4 operating income of $23 million.
Source Fool.com
