What happened

Shares of AppFolio (NASDAQ:APPF), a provider of cloud-based software used by small businesses, jumped 15% as of 1:45 p.m. EDT on Tuesday. The surging stock price is a response to upbeat second-quarter results that featured a boost to guidance.

So what

Here's a look at the headline numbers from the report that have traders feeling giddy today: 

  • Revenue jumped 31% to $47.2 million. 
  • GAAP earnings per share jumped 163% to $0.21. That compares favorably to the $0.19 that Wall Street was expecting.
BUsiness Man With Hundreds Dollat BIlls Fanned Out

Image source: Getty Images.

The strong quarterly results allowed management to raise guidance for the full year. It now expects revenue to land between $183 million and $185 million. This is a $2.5 million increase at the midpoint over its prior guidance range and represents year-over-year revenue growth of 28%. 

By contrast, Wall Street was only expecting revenue of $182.9 million for 2018.

Given the pleasing quarterly results and guidance boost, it is easy to understand why shares are flying high today.

Now what

AppFolio is on a roll. Customer counts on both its property management and legal businesses are growing by double digits. Better yet, existing users are spending more money on the company's Value+ services. At the same time, expense growth is trailing revenue. The combination is driving the triple-digit bottom-line growth.

Overall, AppFolio continues to exhibit all the traits that make for a fantastic long-term investment. That's why this happy shareholder plans on sticking around for the foreseeable future.

Brian Feroldi owns shares of AppFolio. The Motley Fool owns shares of AppFolio. The Motley Fool has a disclosure policy.