AppFolio Q2 2025 Earnings Conference Call: Shane Trigg on Results

AppFolio, Inc. reported Q2 2025 earnings with Shane Trigg, President and CEO, and Lori Barker, Investor Relations. The call was webcast on the Investor Relations section of their website. AppFolio's safe harbor policy was mentioned, noting that forward-looking statements are subject to risks and uncertainties. The actual future results could differ from expressed statements due to various factors.

AppFolio, Inc. (APPF) reported its Q2 2025 earnings on July 2, 2025, showcasing robust financial performance and significant adoption of artificial intelligence (AI) solutions. The earnings call, webcast on the Investor Relations section of their website, provided insights into the company's strategic initiatives and future outlook.

Shane Trigg, President and CEO, highlighted that AppFolio's revenue for the second quarter was $236 million, representing a 19% year-over-year increase. This growth was driven by new business wins, customers moving to premium tiers, and increased adoption of value-added services. Trigg emphasized the company's central AI-native platform architecture and the significant momentum for Realm-X, stating that 96% of customers have utilized one or more AI-powered solutions since the beginning of 2025.

Notably, AppFolio announced the introduction of full Agentic AI through Realm-X performers, empowering operators to delegate entire workflows to their technology. The company also reported new partnerships and customer wins, with Northpoint Asset Management and Chamberlin & Associates adopting AppFolio's premium solutions. Additionally, Tim Eaton was appointed Chief Financial Officer, following his interim service since October 2024.

The company's revenue from value-added services grew 19% year-over-year to $180 million, with strong performance from screening, risk mitigation, and payments. Cost of revenue, exclusive of depreciation and amortization, remained flat year-over-year at 35% of revenue. Combined sales and marketing, R&D, and G&A expenses were also flat at 38% compared to the previous year.

AppFolio ended the quarter with $128 million in cash and investment securities and repurchased 244,000 shares in the second quarter, totaling 689,000 shares year-to-date.

Looking ahead, AppFolio expects its 2025 annual revenue to range between $935 million and $945 million, representing a full-year growth rate of 18%. The company anticipates delivering non-GAAP operating margins between 24.5% and 26.5%. Headcount is projected to grow, but the rate of headcount growth will be less than revenue growth to maintain operational efficiency.

The company also entered into a strategic partnership with Second Nature to enhance the resident experience, which included purchasing a minority noncontrolling equity interest for $75 million.

AppFolio's second quarter results reflect strong revenue growth, significant adoption of AI-powered solutions, and expanding partnerships. The company continues to prioritize innovation through its Realm-X platform, operational efficiency, and value creation for customers, while its leadership team is bolstered by the permanent appointment of a new CFO. The ongoing focus on delivering measurable performance outcomes and scaling through technology and partnerships positions AppFolio for continued momentum as it enters the second half of the year.

References:
[1] https://seekingalpha.com/news/4476178-appfolio-outlines-18-percent-full-year-revenue-growth-target-amid-strong-ai-adoption-and-new
[2] https://www.quiverquant.com/news/AppFolio%2C+Inc.+Announces+Strong+Q2+2025+Financial+Results+with+19%25+Revenue+Growth