AppFolio Deep Dive
Announcing the release of our 66-page Extensive Research Report on AppFolio
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Almost no successful businesses are started this way.
In contrast to most entrepreneurs who start with a problem and need to find a solution, the AppFolio founders began with a solution—and went searching for a problem to match it.
Early to notice how the internet would change not just how software was distributed, but also how it would lower the cost of development and dramatically speed up product iteration, the founders looked for the best vertical to offer software to and apply their insights.
They looked at everything from car repair shops to yoga studios before settling on an industry to transform: real estate property managers. Not only was it a very valuable industry, it was a surprisingly fragmented and antiquated one. Millions of rental transactions were still being managed with spreadsheets and paper.
While legacy competitors served the largest property managers, AppFolio would go after the smallest: something that was only made possible by their insights into how the internet could change the economics and architecture of software development.
Having gotten the attention of legendary and reclusive investor Reece Duca of IGSB early on, they secured funding early on, allowing them to focus on nothing but executing.
Today they have over 8mn units that are on their platform and they collect over $7 a month for each. A figure that keeps increasing, driving revenues to grow at over a 30% CAGR for the past decade. With admirable progress on bringing small property managers into the SaaS age, they are now expanding their horizons by taking aim at the largest property managers. At the same time, they are pushing to become not just an application, but a full platform.
AppFolio is so successful that Billionaire CEO Mark Leonard of Constellation Software recently named them as one of only two companies that he wanted his organization to learn from!
Read our 66-page report to explore the opportunity that still exists for AppFolio, as well as learn many business lessons along the way!
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If you are a member, you can access the AppFolio report here.
The Synopsis Podcast.
We will be releasing a company episode just on AppFolio in the future. Follow our Podcast below to make sure you get it when it is released!
AppFolio Table of Contents
Founding History
Business History
Business
Market Size.
Competition
Yardi
Real Page
Entrata
MRI Software
The AppFolio Model
ROIC & Capital Allocation
Valuation
Risks
Summary Model
Conclusion
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