AppFolio, Inc. (APPF) saw its loss narrow to $1.12 million, or $0.03 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $4.76 million, or $0.14 a share. On an adjusted basis, net profit for the quarter was $0.16 million, when compared with net loss $4.48 million in the last year period.
Revenue during the quarter surged 38.69 percent to $28.16 million from $20.30 million in the previous year period. Gross margin for the quarter expanded 427 basis points over the previous year period to 58.65 percent. Operating margin for the quarter stood at negative 4.28 percent as compared to a negative 21.23 percent for the previous year period.
Operating loss for the quarter was $1.20 million, compared with an operating loss of $4.31 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2.72 million compared to negative $2.39 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 9.66 percent for the quarter compared to negative 11.79 percent in the last year period.
"We are pleased with our results in the quarter, achieving strong revenue, increasing units under management and continuing to realize operating leverage," commented Brian Donahoo, president and chief executive officer of AppFolio. "During the quarter we hosted over 700 property manager customers at our Fourth Annual Customer Conference for three days of industry education, networking events, and hands-on product demonstrations and feedback sessions with AppFolio experts. We also announced two new product offerings for our Property Managers customers, including Collections and Revenue Management, which will enhance our platform and further highlight our commitment to helping our customers successfully manage and grow their businesses and expand our market opportunity."
For financial year 2016, AppFolio, Inc. projects revenue to be in the range of $104 million to $105 million.
Operating cash flow turns positive
AppFolio, Inc. has generated cash of $4.72 million from operating activities during the nine month period as against cash outgo of $3.77 million in the last year period.
The company has spent $9.32 million cash to meet investing activities during the nine month period as against cash outgo of $63.14 million in the last year period.
Cash flow from financing activities was $0.14 million for the nine month period, down 99.81 percent or $73.12 million, when compared with the last year period.
Cash and cash equivalents stood at $7.60 million as on Sep. 30, 2016, down 35.34 percent or $4.15 million from $11.76 million on Sep. 30, 2015.
Working capital drops significantly
AppFolio, Inc. has witnessed a decline in the working capital over the last year. It stood at $6.50 million as at Sep. 30, 2016, down 76.35 percent or $20.98 million from $27.48 million on Sep. 30, 2015. Current ratio was at 1.37 as on Sep. 30, 2016, down from 2.59 on Sep. 30, 2015.
Days sales outstanding went down to 9 days for the quarter compared with 11 days for the same period last year.
At the same time, days payable outstanding went down to 14 days for the quarter from 27 for the same period last year.
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