- AppFolio's full-year 2020 GAAP earnings were goosed by a one-time divestment of its MyCase legal business.
- Total costs are keeping up with revenue growth and yoy GAAP earnings would have likely been down were it not for the divestment.
- The company trades at a forward P/E=200x while facing increased competition and a market that is showing signs of contraction.
- While the stock price has corrected 20%+ YTD, it appears to have further to go on the downside. I would avoid the shares.
For further details see:
AppFolio: The 'Correction' Is Not Over By A Long-Shot