APPFOLIO INCAPPF

APPFOLIO INC Earnings Per Share Disclosure

10-KFiled Feb 5, 20262 min read
Net Income Per Share
Basic net income per share includes no dilution and is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and equity incentive awards is reflected in diluted net income per share by application of the treasury stock method. The calculation of diluted net income per share excludes all anti-dilutive common shares.
Net income per common share was the same for shares of our Class A and Class B common stock because they are entitled to the same liquidation and dividend rights and are therefore combined in the table below. The following table sets forth the computation of basic and diluted net income per common share (in thousands):
 Year Ended December 31,
 202520242023
Basic net income per share:
Numerator
Net income
$140,923 $204,068 $2,702 
Less: undistributed earnings to participating securities— 12 — 
Net income attributable to common stockholders
$140,923 $204,056 $2,702 
Denominator
Weighted average common shares outstanding36,013 36,254 35,636 
Less: Weighted average unvested restricted shares subject to repurchase— 2 7 
Weighted average common shares outstanding; basic36,013 36,252 35,629 
Net income per common share; basic
$3.91 $5.63 $0.08 
Diluted net income per share:
Numerator
Net income attributable to common stockholders
$140,923 $204,056 $2,702 
Denominator
Weighted average common shares outstanding; basic36,013 36,252 35,629 
Add: Weighted average dilutive options outstanding40 58 333 
Add: Weighted average dilutive RSUs outstanding274 472 455 
Weighted average common shares outstanding; diluted36,327 36,782 36,417 
Net income per common share; diluted
$3.88 $5.55 $0.07 
Potentially dilutive securities that are not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows (in thousands):
 Year Ended December 31,
 202520242023
Unvested Restricted Stock Awards— — 6 
Options— — 120 
Restricted Stock Units14 2 20 
Total potentially dilutive securities14 2 146 
Free Sentinel

Want the next APPFOLIO INC earnings per share disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment APPFOLIO INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards