What happened

Shares of AppFolio (NASDAQ:APPF) gained 16.1% last month, according to data from S&P Global Market Intelligence. For context, the S&P 500 index tacked on 3.6% in November, while the tech-heavy Nasdaq index was up 5%.

AppFolio is a software-as-a-service (SaaS) provider that focuses on the real estate and legal markets.

Its shares had gained 93.2% in 2019 through Tuesday, versus the S&P 500's 25.7% return over the period. 

AppFolio app screen view of two real estate rental listings.

Image source: AppFolio.

So what

AppFolio management didn't release any notable information in November, nor was the company the specific subject of any news. So, we can probably attribute the stock's rise last month in part to a continuation of the upward momentum that it has enjoyed for some time. Thanks to a series of robust quarterly reports, more investors have been discovering the fast-growing company.

The stock was probably still getting a tailwind in November from the company's release of a strong third-quarter earnings report on Oct. 28. It popped 3.1% the following day and a total of 8.2% in the two days following the release.

In Q3, AppFolio's revenue surged 36% year over year to $67.9 million, and net income came in at $5.0 million, or $0.14 per share, down slightly from $5.5 million, or $0.16 per share, in the year-ago period. That result easily beat Wall Street analysts' consensus earnings estimate of $0.09 per share. The company's profitability edged lower because it's investing in initiatives aimed at boosting long-term growth. 

Now what

Management increased its revenue guidance for the full year. It now expects revenue in the range of $254.5 million to $255.5 million, up from a prior forecast of $253 million to $255 million. At the midpoint, that would amount to 34% year-over-year growth. The company doesn't provide earnings guidance; Wall Street is modeling for earnings-per-share growth of 66.1%.