AppFolio, Inc. (NASDAQ:APPF) Q4 2018 Earnings Conference Call Transcript

Feb 28, 2019 • 04:30 pm ET

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AppFolio, Inc. (NASDAQ:APPF) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Chris, and I'll be your conference operator today. At this time, I would like to welcome everyone to the AppFolio, Inc., announces Fourth Quarter and Fiscal Year 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. (Operator Instructions) Thank you.

Erica Abrams, you may begin your conference.

Executive
Erica Abrams

Thank you, Chris. Good afternoon, ladies and gentlemen. Thank you for joining us today as we report AppFolio's fourth quarter and fiscal year 2018 financial results. I'm joined today by Jason Randall, CEO, and Ida Kane of AppFolio, to discuss these results. This call is being simultaneously webcast on the Investor Relations section of our website at www.appfolioinc.com.

Before we get started, I would like to call everyone's attention to our safe harbor policy. Please note that certain statements made on this call will be forward-looking and are subject to considerable risks and uncertainties. These forward-looking statements may relate to future plans and financial conditions, results of operations, business forecasts and plans, strategic plans and objectives and product development plans.

Forward-looking statements involve numerous risks and uncertainties that may cause actual results or performance to be materially different from any results or performance expressed or implied by the forward-looking statements. We discussed risks and uncertainty in greater detail in the Risk Factors section of our filings with the SEC. Forward-looking statements are based on assumptions as of today and we assume no obligation to update any forward-looking statements after today, even if new information becomes available in the future.

With that, I'll turn the call over to Ida. Ida, please go ahead.

Executive
Ida Kane

Thank you, Erica. And welcome to everyone joining us on the call today for AppFolio's fourth quarter and fiscal year 2018 financial results. We had a strong fiscal year 2018 with full-year total revenue of $190.1 million, a 32% increase year-over-year and full year GAAP net income of $20 million or $0.56 per diluted share compared to $9.7 million and $0.28 per diluted share in fiscal 2017.

Included in our 2018 results, is revenue of $400,000 and net loss of $1.4 million attributed to the acquisition of WegoWise. Also included in our fiscal year 2018 results is $6.3 million of non-cash charges related to stock-based compensation. For those of you who track non-GAAP results, our Form 10-K was filed today and includes more detailed financial data points that you may find helpful in calculating non-GAAP results on your own.

In addition, as previously disclosed, we adopted ASC 606 using the modified retrospective method on January 1, 2018 and our Form 10-K provides the reconciliation of the impact of the adoption on our current year results which may be helpful when comparing to prior year results. We ended the year with approximately 13,050 real estate property manager customers, managing an aggregate of 3.91 million units in their portfolios, compared to approximately 11,700 customers and 3.25 million units under management reported a year ago.

The year-over-year increase in the average size