Appfolio Inc (APPF)

Operating profit margin

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	61,583	963	-47,228	-54,980	-84,231	-72,370	-59,760	-51,954	-20,878	-11,878	-7,288	-3,915	1,284	9,783	12,624	13,398	9,349	6,461	9,069	10,412
Revenue (ttm)	US$ in thousands	680,437	627,476	577,852	536,077	505,125	473,067	444,385	414,806	386,300	359,871	336,457	323,816	315,202	308,229	302,747	287,049	269,765	254,358	237,843	220,663
Operating profit margin		9.05%	0.15%	-8.17%	-10.26%	-16.68%	-15.30%	-13.45%	-12.52%	-5.40%	-3.30%	-2.17%	-1.21%	0.41%	3.17%	4.17%	4.67%	3.47%	2.54%	3.81%	4.72%

March 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $61,583K ÷ $680,437K
= 9.05%

The operating profit margin of Appfolio Inc has exhibited fluctuations over the past several quarters. The margin improved significantly in the first quarter of 2024 to 9.05%, marking a substantial increase compared to the previous quarter's 0.15%. This improvement suggests that the company's ability to generate profits from its core operations has strengthened.

Prior to the increase in the latest quarter, the operating profit margin had been negative for several consecutive quarters, with particularly low margins in the third and fourth quarters of 2022 and the first quarter of 2023. During this period, the company faced challenges in managing operating expenses relative to its revenue generation.

However, the company started to show signs of recovery in the second half of 2023, with a gradual improvement in the operating profit margin. This positive trend continued into the first quarter of 2024, indicating a potential turnaround in the company's operational efficiency.

Overall, the varying operating profit margins reflect Appfolio Inc's efforts to control costs and enhance its operational performance. Investors and stakeholders may monitor future financial reports to assess the company's ability to sustain and further improve its profitability.