• AppFolio, Inc. Announces First Quarter 2021 Financial Results

    Source: Nasdaq GlobeNewswire / 10 May 2021 16:10:00   America/New_York

    SANTA BARBARA, Calif., May 10, 2021 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a leading provider of cloud-based business software solutions, services, and data analytics to the real estate market, today announced its financial results for the first quarter ended March 31, 2021.

    AppFolio's operating results for the first quarter of 2021 are summarized in the tables accompanying this press release. The Company nevertheless urges investors to read its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the "SEC") on March 1, 2021, as well as its more detailed first quarter 2021 results that will be included in the Company's Quarterly Report on Form 10-Q, which will be filed with the SEC today. These periodic report filings, together with other documents the Company files with the SEC from time to time, will be accessible on AppFolio's website, http://ir.appfolioinc.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

    Financial Outlook

    Based on information available as of May 10, 2021, AppFolio's outlook for fiscal year 2021 follows:

    • Full year revenue is expected to be in the range of $348 million to $355 million.
    • Diluted weighted average shares are expected to be approximately 36 million for the full year.

    Executive Management Transition
    AppFolio announced that its Chief Financial Officer, Ida Kane, has notified its Board of Directors of her plans to depart the Company. Ms. Kane will remain in her current position until a mutually determined future date. The Company is initiating a search for her successor and all parties are committed to ensuring a smooth transition.

    Conference Call Information
    As previously announced, the Company will host a conference call today, May 10, 2021, at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, to discuss its financial results. Participants who wish to dial into the conference call please register in advance at http://www.directeventreg.com/registration/event/6585354. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. Registration will be open through the start of the live call.

    Following the conference call, a replay will be available at (800) 585-8367 (domestic) or (416) 621-4642 (international). The replay passcode is 6585354. An archived webcast of this conference call will also be available on AppFolio’s Investor Relations website at http://ir.appfolioinc.com.

    About AppFolio, Inc.
    AppFolio provides innovative software, services and data analytics to the real estate industry. Our industry-specific, cloud-based business management solutions are designed to enable our customers to digitally transform their businesses, address critical business operations and enable exceptional customer service. Today our core solutions include AppFolio Property Manager, AppFolio Property Manager PLUS, and AppFolio Investment Management. In addition, the Company offers a variety of Value+ services that are designed to enhance, automate and streamline essential processes and workflows for our customers. AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at www.appfolioinc.com.

    Investor Relations Contact: ir@appfolio.com 

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts, “projects,” “seeks,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release relate to the Company's future or assumed revenues and weighted-average outstanding shares, as well as its future growth and success.

    Forward-looking statements represent AppFolio's current beliefs and assumptions based on information currently available. Forward-looking statements involve numerous known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Some of the risks and uncertainties that may cause the Company's actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled “Risk Factors” in AppFolio's Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, which will be filed with the SEC today, as well as in the Company's other filings with the SEC. You should read this press release with the understanding that the Company's actual future results may be materially different from the results expressed or implied by these forward looking statements.

    Except as required by applicable law or the rules of the NASDAQ Global Market, AppFolio assumes no obligation to update any forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.


    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
    (in thousands, except par values)

     March 31,
    2021    		 December 31,
    2020
    Assets   
    Current assets   
    Cash and cash equivalents$44,744  $140,263 
    Investment securities—current103,341  28,256 
    Accounts receivable, net12,524  10,057 
    Prepaid expenses and other current assets20,843  20,777 
    Total current assets181,452  199,353 
    Investment securities—noncurrent11,806  6,770 
    Property and equipment, net26,530  26,439 
    Operating lease right-of-use assets30,021  30,561 
    Capitalized software development costs, net37,554  35,459 
    Goodwill56,147  56,147 
    Intangible assets, net15,170  16,357 
    Deferred income taxes—noncurrent13,401  12,181 
    Other long-term assets6,616  6,213 
    Total assets$378,697  $389,480 
    Liabilities and Stockholders’ Equity    
    Current liabilities   
    Accounts payable$2,262  $1,040 
    Accrued employee expenses—current20,050  18,888 
    Accrued expenses10,231  14,069 
    Deferred revenue3,135  2,262 
    Income tax payable2,601  9,095 
    Other current liabilities4,758  4,451 
    Total current liabilities43,037  49,805 
    Accrued employee expenses—noncurrent1,172  — 
    Operating lease liabilities39,598  40,146 
    Deferred income taxes—noncurrent9,106  13,609 
    Total liabilities92,913  103,560 
    Stockholders’ equity:   
    Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding as of March 31, 2021 and December 31, 2020—  — 
    Class A common stock, $0.0001 par value, 250,000 shares authorized as of March 31, 2021 and December 31, 2020; 19,321 and 19,148 shares issued as of March 31, 2021 and December 31, 2020, respectively; 18,902 and 18,729 shares outstanding as of March 31, 2020 and December 31, 2020, respectively2  2 
    Class B common stock, $0.0001 par value, 50,000 shares authorized as of March 31, 2021 and December 31, 2020; 15,551 and 15,659 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively2  2 
    Additional paid-in capital160,650  161,247 
    Accumulated other comprehensive income38  56 
    Treasury stock, at cost, 419 shares of Class A common stock as of March 31, 2021 and December 31, 2020(25,756) (25,756)
    Retained earnings150,848  150,369 
    Total stockholders’ equity285,784  285,920 
    Total liabilities and stockholders’ equity$378,697  $389,480 


    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)
    (in thousands, except per share amounts)

     Three Months Ended
    March 31,
     2021 2020
    Revenue$78,921  $72,495 
    Costs and operating expenses:   
    Cost of revenue (exclusive of depreciation and amortization)33,298  28,961 
    Sales and marketing16,179  14,506 
    Research and product development14,383  11,212 
    General and administrative13,361  8,572 
    Depreciation and amortization7,369  6,414 
    Total costs and operating expenses84,590  69,665 
    (Loss) income from operations(5,669) 2,830 
    Other income, net562  22 
    Interest income (expense), net53  (494)
    (Loss) income before (benefit from) provision for income taxes(5,054) 2,358 
    (Benefit from) provision for income taxes(5,533) 375 
    Net income$479  $1,983 
        
    Net income per common share:   
    Basic$0.01  $0.06 
    Diluted$0.01  $0.06 
    Weighted average common shares outstanding:   
    Basic34,409  34,175 
    Diluted35,712  35,681 


    Stock-Based Compensation Expense
    (in thousands)

     Three Months Ended
    March 31,
     2021 2020
    Costs and operating expenses:   
    Cost of revenue (exclusive of depreciation and amortization)$471  $126 
    Sales and marketing402  225 
    Research and product development857  294 
    General and administrative1,046  314 
    Total stock-based compensation expense$2,776  $959 


     
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     Three Months Ended
    March 31,
     2021 2020
    Cash from operating activities   
    Net income$479  $1,983 
    Adjustments to reconcile net income to net cash (used in) provided by operating activities:   
    Depreciation and amortization7,369  6,414 
    Amortization of operating lease right-of-use assets662  1,053 
    Deferred income taxes(5,723) 362 
    Stock-based compensation2,776  959 
    Other(157) (38)
    Changes in operating assets and liabilities:   
    Accounts receivable(1,896) (1,616)
    Prepaid expenses and other current assets47  (2,822)
    Other assets(403) (148)
    Accounts payable870  (362)
    Accrued employee expenses—current728  (5,427)
    Accrued expenses(3,804) 726 
    Deferred revenue299  693 
    Income tax payable(6,494) — 
    Other current liabilities310  522 
    Accrued employee expenses—noncurrent1,172  — 
    Operating lease liabilities(672) 784 
    Net cash (used in) provided by operating activities(4,437) 3,083 
    Cash from investing activities   
    Purchases of available-for-sale investments(99,011) (649)
    Proceeds from sales of available-for-sale investments17,899  13,942 
    Proceeds from maturities of available-for-sale investments1,000  7,250 
    Purchases of property, equipment and intangible assets(938) (7,992)
    Capitalization of software development costs(6,140) (6,822)
    Net cash (used in) provided by investing activities(87,190) 5,729 
    Cash from financing activities   
    Proceeds from stock option exercises100  97 
    Tax withholding for net share settlement(3,992) (6,458)
    Payment of contingent consideration—  (5,977)
    Proceeds from issuance of debt—  49,437 
    Principal payments on debt—  (749)
    Purchase of treasury stock—  (4,194)
    Net cash (used in) provided by financing activities(3,892) 32,156 
    Net (decrease) increase in cash and cash equivalents and restricted cash(95,519) 40,968 
    Cash, cash equivalents and restricted cash   
    Beginning of period140,699  16,247 
    End of period$45,180  $57,215 

     


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