AppFolio Inc (NASDAQ:APPF) Q2 2020 Earnings Conference Call - Final Transcript

Aug 03, 2020 • 04:30 pm ET

Previous

AppFolio Inc (NASDAQ:APPF) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the AppFolio Inc. announces Second Quarter 2020 Financial Results Conference Call. [Operator Instructions]

I would now like to turn the call over to your host, Ms. Erica Abrams. You may begin.

Executive
Erica Abrams

Thank you. Good afternoon, ladies and gentlemen, and thank you for joining us today as we report AppFolio's second quarter 2020 financial results. With me on the call today are Jason Randall, AppFolio's President and CEO; and Ida Kane, AppFolio's Chief Financial Officer. This call is simultaneously being 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 maybe forward-looking statements within the meaning of the federal securities laws that are subject to considerable risks and uncertainties. Actual results or performance may be materially different from any results, performance expressed or implied by the forward-looking statements. Forward-looking statements including any such statements referring to the potential effects or impacts of the COVID-19 pandemic on AppFolio's business may relate to future plans and financial conditions, results of operations, business forecasts and plans, strategic plans and objectives, product development plans, trends affecting our business and industry and the economy as a whole, capital needs and financing plans and various commitments and contingencies, including with respect to the outcome of legal proceedings or regulatory matters. Please see our filings with the SEC, including our Form 10-Q which was filed earlier today for greater detail about risks and uncertainty.

Forward-looking statements are based on reasonable 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, unless required by law.

Now, I will turn the call over to Ida Kane, CFO of AppFolio.

Executive
Ida Kane

Thank you, Erica, and welcome to everyone joining us on the call today for AppFolio's second quarter of fiscal year 2020 financial results.

Before I get started on the financial highlights for the quarter, I wanted to take a moment to thank our over 1,300 employees and their families for their professionalism and dedication during these difficult times. Our AppFolians have remained focused on developing innovative products and providing excellent services and support to our customers, and we are proud of their commitment to our business. We believe our people and culture are the heart of our success and the current environment has only amplified that belief.

Turning to the numbers, we reported total revenue of $81 million during the second quarter, a 27% increase year-over-year. GAAP net income was $19.3 million or $0.54 per diluted share for the quarter, including an income tax benefit of $13.5 million, which is attributable to tax benefit associated with stock-based compensation expense and research and development tax credits that follow our forecasted pre-tax results for the year. Also included in our second quarter results are $2.8 million in non-cash charges related to stock-based compensation. For those