AppFolio (NASDAQ:APPF), a cloud-based company focused on small to mid-size business, has been impressing investors over the last two years with its amazing growth story. The significant growth in financial numbers over the last two years reflects smart business strategies and active management. The company’s average revenue growth in the last three years was standing around 60%, while it expects to extend the momentum this year.

AppFolio’s strategy of generating a sustainable growth through investing strongly in their businesses and expanding their product portfolio seems to be working. Moreover, increasing leverage and improving efficiencies are also helping in increasing financial numbers.

AppFolio plans to announce new value plus service and renters insurance to expand their existing tenant liability insurance offering. It is also working on improving electronic payments value plus service, while the company announced integration with Alexa Amazon’s cloud-based voice service.

In the latest quarter, its core revenue was standing around $14.7 million, representing a growth of 30% over the past year period, thanks to a 17% growth in property manager customers. AppFolio experienced sharp growth of 22% in property manager units under management, relative to almost 3.1 million units in the prior year period.

Furthermore, AppFolio generated positive earnings of $0.10 per diluted share in the latest quarter, compared to a loss of $0.03 per share one year ago.

Its stock price increased considerably in the first three quarters of the last year. However, APPF stock price has been under pressure over the last three months. After hitting the highest level in $52 a share, APPF shares lost 17% of their value in the last three months, due to investors profit-taking. Nevertheless, the dip in its share price offers the potential entry point, as its full-year revenues are likely to increase around 33% compared to the prior year period.  AppFolio has strong future fundamentals and its financial number would offer a support to the share price. Therefore, buying APPF on the dip is a wise strategy.  

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