Shares of real estate management software company AppFolio (NASDAQ: APPF) popped on Friday following the release of financial results for the third quarter of 2022. As of 11:15 a.m. ET, AppFolio stock was up almost 13%.

In Q3, AppFolio generated revenue of $125 million, up 31% year over year and slightly ahead of analysts' expectations. The company's software is used by landlords to manage their real estate portfolios. Therefore, it's important to note that AppFolio ended Q3 with 7.1 million units being managed on its platform, up sharply from the 6.8 million units on the platform at the end of the second quarter.

AppFolio's profitability is a mixed bag. On the one hand, the company was free cash flow (FCF) positive in Q3 with a 10% FCF margin compared to a 7% FCF margin in the same quarter last year. On the other hand, AppFolio has a $52.4 million loss from operations so far in 2022, with non-cash expenses like stock-based compensation and impairment charges eating into operating profits. That said, the company's bottom line is better than Wall Street expected, which contributed to the stock's gains today.

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Source Fool.com