From Yahoo Finance: 2025-04-25 12:15:00

Shares of AppFolio (NASDAQ: APPF) fell 15.7% on Friday, with a 16.9% drop earlier. The software-as-a-service company reported Q1 results below expectations despite 16% sales growth. Earnings per share were $1.21, missing estimates of $1.23, with revenue at $218 million versus $220.94 million expected.

Despite revenue growth, AppFolio’s margins declined, operating margin dropped from 18.2% to 15.5% year over year. The company expects 17% revenue growth in 2025 and modest operating margin growth. CEO remains optimistic about new customer adoption and innovation driving results.

AppFolio trades at a premium with a P/E ratio of 36. While optimistic about growth, concerns arise about consistent delivery. The company was not among the 10 best stocks identified by The Motley Fool Stock Advisor team for solid returns. Join Stock Advisor for market-beating returns.

Read more: Why AppFolio Stock Is Plummeting Today