Appfolio Inc (APPF)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	7,997	-66,717	1,734	196,831	4,823
Revenue	US$ in thousands	627,476	477,223	360,251	495,865	254,358
Pretax margin		1.27%	-13.98%	0.48%	39.69%	1.90%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $7,997K ÷ $627,476K
= 1.27%

The pretax margin of Appfolio Inc has varied significantly over the past five years. In 2023, the pretax margin was 1.27%, indicating that the company generated $0.0127 in pretax profit for every dollar of revenue. This suggests that the company was able to improve its profitability compared to the previous year when it had a negative pretax margin of -13.98%. The negative pretax margin in 2022 might have indicated operational challenges or one-time expenses that impacted the company's profitability negatively.

The pretax margin of 0.48% in 2021 demonstrates a slight improvement in profitability compared to 2019 when the pretax margin was 1.90%. However, the pretax margin in 2021 was relatively low, indicating that the company's profitability was somewhat constrained.

The significant pretax margin of 39.69% in 2020 stands out as a particularly strong performance, suggesting that Appfolio Inc was able to generate high levels of profits relative to its revenue that year. This exceptional profitability may have been driven by various factors, such as cost efficiencies, revenue growth, or favorable market conditions.

Overall, the fluctuations in Appfolio Inc's pretax margin over the five-year period indicate varying levels of profitability and operational efficiency. Analyzing the trends in pretax margin can provide insights into the company's financial performance and management's ability to control costs and generate profits.