Part 5/8:
The second company discussed is AppFolio, which provides software solutions tailored to niche markets, specifically in property management. Easing the workload for small property management companies, AppFolio combines essential services such as tenant communication, billing, and maintenance tracking into a single cloud-based platform.
The acquisition of MyCase, which serves legal professionals, hints at AppFolio's potential for diversification. With a customer retention rate of 97% and revenue growth of 40% year-over-year—totaling approximately $144 million—AppFolio exemplifies the power of retaining clients through a sticky service. The company operates within a projected $5 billion opportunity, alongside its successful property management services.