AppFolio (NASDAQ:APPF) held its first-quarter earnings conference call on Thursday. Below is the complete transcript from the call.
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View the webcast at https://edge.media-server.com/mmc/p/hja3su4g
Summary
AppFolio reported a strong start to 2026 with first quarter revenue of $262 million, marking a 20% year-over-year increase.
The company achieved a 50% year-over-year growth in GAAP operating income, reaching $51 million, and a 36% increase in non-GAAP operating income.
Strategic initiatives include the implementation of AI across the business, particularly in the Real Estate Performance Management (RPM) platform, which has driven significant customer engagement and operational efficiency.
Customer base increased to 22,520 with 9.5 million units under management, reflecting a 7% and 8% year-over-year growth respectively.
The company raised its annual revenue guidance to $1.110-$1.125 billion, with expectations for continued growth driven by premium tier offerings and AI-powered services.
Operational highlights include the introduction of new AI capabilities such as Maintenance Performer and Resident Onboarding Lift, enhancing customer service and satisfaction.
Management emphasized the role of AppFolio’s AI architecture in improving internal efficiencies and reducing R&D spending as a percentage of revenue.
The company announced a share repurchase program, deploying $125 million to repurchase 702.5 thousand shares, indicating a focus on long-term shareholder value.
Full Transcript
OPERATOR
Good afternoon. Thank you for standing by and welcome to AppFolio Inc.’s First Quarter 2026 Financial Results Conference call. Please be advised today’s conference is being recorded and a replay will be available on Appfolio’s investor relations website. I would now like to hand the conference over to Lori Barker, Investor Relations. Thank you Operator. Good afternoon everyone. I’m Lori Barker, Investor Relations for Appfolio and I’d like to thank you for joining us today as we report AppFolio’s first quarter 2026 financial results. With me on the call today are Shane Trigg, AppFolio’s president and CEO, and Tim Eaton, AppFolio’s CFO. This call is simultaneously being webcast on the investor Relations section of our website@appfolioinc.com Additionally, an audio replay of the call and a transcript of the prepared comments will be posted to the website. Before we get started, I would like to remind everyone of Appfolio’s Safe harbor policy. Comments made during this conference call and webcast contain forward looking statements within the meaning of the Private Securities Litigation Reform act of 1995 and are subject to risks and uncertainties. Any statement that refers to expectations, projections or other characterizations of future events, including financial projections, future market conditions, business performance or future product enhancements or development is a forward looking statement. Appfolio’s actual future results could differ materially from those expressed in such forward looking statements. For any reason, including those listed on our SEC filings. Appfolio assumes no obligation to update any such forward looking statements except as required by law. For greater detail about risks and uncertainties, please see our SEC filings including our Form 10K for the fiscal year ended December 31, 2025 which was filed with the SEC on February 5, 2026. In addition, this call includes non GAAP financial measures. Reconciliation of these non GAAP financial measures and the most directly comparable GAAP measures are included in our first quarter earnings release posted on the Investor Relations section of our website. With that, I’ll turn the call over to Shane Trigg. Shane, please go ahead.
Shane Trigg (President and CEO)
Thanks Lori and welcome to everyone joining us today. Appfolio is off to a strong start in 2026. First quarter revenue reached $262 million, a 20% year over year increase and up from the 16% year over year increase we delivered in Q1 2025. Non GAAP operating income grew 36% and was 27.3% of revenue and GAAP operating income increased 50% and was 19.4% of revenue. We had the best first quarter in company history for residential new business unit acquisition and units on platform grew to 9.5 million in line with our expectations and typical seasonality. This is an exciting time for our business and our industry. AI is powerful and we’re putting it to work across every dimension of our business. Accelerating performance for our customers while driving greater efficiency across our own operations. At our annual Future conference last year, we introduced Real estate performance Management, what we call rpm, a new way of thinking about value creation in real estate. RPM represents a fundamental shift from reactive task oriented property management to a holistic practice of delivering value across the entire real estate ecosystem. Residents that love where they live, investors that see consistent strong returns. Property management businesses that grow, serving communities that thrive. Achieving that requires a performance platform that provides the harness for for intelligent AI orchestration and real estate. With an AI native architecture of three interconnected systems. A system of record, a system of action and a system of growth. All accessible through one unified experience. There’s a unique advantage in operating a mission critical platform in a vertical market. Sitting at the center of how our customers operate their business. Compliance is embedded in how our platform works, not layered on after the fact. And the domain knowledge we’ve encoded across residential real estate is sharpened by tens of thousands of customers. Our RealmX performers are fully operational AI agents built directly into the platform, taking ownership of entire workflows and and doing the work with and for our customers. And by reimagining the resident experience with the services renters Demand, we turn AppFolio from a cost center into a growth driver. One whose value deepens with every customer we serve. The RPM discipline we’ve introduced and the performance platform we’ve built are redefining what it means to win in real estate. It’s gratifying to see the market embracing RPM and our customers, turning it into daily practice. Dan Rubenstein puts it well. He’s the CEO of Hampton Management Associates, a 3,000 unit Bay Area property management company that this quarter signed a three year renewal on our max plan. I quote, AppFolio is attacking the friction in our business by consolidating our tech stack and into a single platform. By integrating RealmX performers to automate core workflows, we’ve transitioned our team from manual administrative tasks …
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