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.
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.
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.
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.