Appfolio Inc (APPF)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	150,322	7,997	-66,717	1,734	196,831
Revenue	US$ in thousands	794,202	627,476	477,223	360,251	495,865
Pretax margin		18.93%	1.27%	-13.98%	0.48%	39.69%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $150,322K ÷ $794,202K
= 18.93%

Based on the data provided, the pretax margin of Appfolio Inc has displayed fluctuations over the years:

1. December 31, 2020: The pretax margin was strong at 39.69%, indicating that the company was able to generate a significant profit before accounting for taxes.

2. December 31, 2021: The pretax margin significantly dropped to a mere 0.48%, suggesting a considerable decrease in profitability compared to the previous year.

3. December 31, 2022: The pretax margin turned negative at -13.98%, indicating that the company incurred losses before taxes, possibly due to increased expenses or declining revenues.

4. December 31, 2023: The pretax margin slightly improved to 1.27%, but it remained relatively low, indicating that the company's profitability was still recovering.

5. December 31, 2024: The pretax margin experienced a notable increase to 18.93%, showing a significant improvement in profitability compared to the previous years, potentially due to better cost management or increased revenues.

Overall, Appfolio Inc's pretax margin has been volatile, with significant fluctuations in profitability over the years. It is important for the company to address the factors contributing to these fluctuations to ensure long-term financial stability and success.