AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2021 Financial Results
Revenue grows 32 percent year-over-year in the fourth quarter
SANTA BARBARA, Calif., February 28, 2022 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a leading provider of cloud business management solutions for the real estate industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2021.
“I’m pleased to announce that in the fourth quarter we expanded our number of units served to 6.35 million and revenue from continuing operations grew 32%, capping off a year of 26% growth. This is evidence that we are driving success with our ongoing multi-year investments,” said Jason Randall, President and CEO, AppFolio. “In 2022 our talented team continues to focus on igniting revenue growth by continuing to make it increasingly easy for our customers to manage their communities in our ever-changing world.”
The Company urges investors to read its Annual Report on Form 10-K for the year ended December 31, 2021, which will also be filed with the Securities and Exchange Commission (the "SEC") today, February 28, 2022, and will be available on AppFolio's website, http://ir.appfolioinc.com.
Financial Outlook
Based on information available as of February 28, 2022, AppFolio's outlook for fiscal year 2022 follows:
•Full year revenue is expected to be in the range of $447 million to $457 million.
•Diluted weighted average shares are expected to be approximately 36.5 million for the full year.
Conference Call Information
As previously announced, the Company will host a conference call today, February 28, 2022, at 1:30 p.m. Pacific Time (PT), 4:30 p.m. Eastern Time (ET), to discuss the company’s fourth quarter and year ended 2021 financial results. Participants who wish to dial into the conference call, please dial +1 844-200-6205 (in the U.S.) or +1 929-526-1599 (international) and use passcode 419445.
Following the conference call, a replay of the call will be available until Thursday, March 3, 2022 by dialing +1 866-813-9403 (in the U.S.) or +1 929-458-6194 (international) and using passcode 090322.
To access the webcast during the live call, participants may access https://events.q4inc.com/attendee/414042236. 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, Inc. (NASDAQ: APPF) is a leading provider of cloud business management solutions for the real estate industry. Our solutions enable our customers to digitally transform their businesses, address critical business operations and deliver a better customer experience. Today, our solutions are AppFolio Property Manager and AppFolio Investment Management, which are supplemented with Value Added Services that enhance, automate and streamline business-critical processes and workflows. For more information about AppFolio, visit www.appfolioinc.com.
Investor Relations Contact:
Lori Barker
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 business opportunities, the impact of the Company's strategic actions and initiatives, and the timing of providing updated financial guidance.
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 Annual Report on Form 10-K for the year ended December 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)
December 31, 2021
December 31, 2020
Assets
Current assets
Cash and cash equivalents
$
57,847
$
140,263
Investment securities—current
64,600
28,256
Accounts receivable, net
12,595
10,057
Prepaid expenses and other current assets
23,553
20,777
Total current assets
158,595
199,353
Investment securities—noncurrent
61,076
6,770
Property and equipment, net
30,479
26,439
Operating lease right-of-use assets
41,710
30,561
Capitalized software development costs, net
41,212
35,459
Goodwill
56,147
56,147
Intangible assets, net
11,711
16,357
Deferred income taxes—noncurrent
—
12,181
Other long-term assets
7,087
6,213
Total assets
$
408,017
$
389,480
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
1,704
$
1,040
Accrued employee expenses—current
30,065
18,888
Accrued expenses
13,284
14,069
Deferred revenue
2,512
2,262
Income tax payable
136
9,095
Other current liabilities
4,941
4,451
Total current liabilities
52,642
49,805
Accrued employee expenses—noncurrent
583
—
Operating lease liabilities
55,733
40,146
Deferred income taxes—noncurrent
1,678
13,609
Stockholders’ equity
297,381
285,920
Total liabilities and stockholders’ equity
$
408,017
$
389,480
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended December 31,
Twelve Months Ended December 31,
2021
2020
2021
2020 (1)
Revenue
$
95,600
$
72,432
$
359,370
$
310,056
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)
39,097
29,905
143,944
119,029
Sales and marketing
19,945
15,328
73,200
58,445
Research and product development
19,591
11,735
65,980
48,529
General and administrative
16,308
11,177
57,279
47,480
Depreciation and amortization
8,001
7,039
30,845
26,790
Total costs and operating expenses
102,942
75,184
371,248
300,273
(Loss) income from operations
(7,342)
(2,752)
(11,878)
9,783
Other income, net
12,406
1,138
13,111
188,897
Interest income (expense), net
328
60
501
(1,849)
Income (loss) before provision for (benefit from) income taxes
5,392
(1,554)
1,734
196,831
Provision for (benefit from) income taxes
6,723
(1,041)
706
38,428
Net (loss) income
$
(1,331)
$
(513)
$
1,028
$
158,403
Net (loss) income per common share:
Basic
$
(0.04)
$
(0.01)
$
0.03
$
4.62
Diluted
$
(0.04)
$
(0.01)
$
0.03
$
4.44
Weighted average common shares outstanding:
Basic
34,738
34,332
34,578
34,264
Diluted
34,738
34,332
35,701
35,713
(1) MyCase was divested on September 30, 2020. The results of MyCase have been included in our results of operations through the date of divestiture.
Stock-Based Compensation Expense
(in thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2021
2020
2021
2020 (1)
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)
$
515
$
408
$
2,024
$
1,506
Sales and marketing
742
346
2,329
1,415
Research and product development
1,935
470
5,457
1,818
General and administrative
2,096
993
5,531
4,286
Total stock-based compensation expense
$
5,288
$
2,217
$
15,341
$
9,025
(1) MyCase was divested on September 30, 2020. The results of MyCase have been included in our results of operations through the date of divestiture.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2021
2020
2021
2020 (1)
Cash from operating activities
Net (loss) income
$
(1,331)
$
(513)
$
1,028
$
158,403
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization
7,488
6,670
29,032
25,507
Amortization of operating lease right-of-use assets
887
728
3,199
3,701
Deferred income taxes
6,644
6,124
250
29,002
Stock-based compensation, including as amortized
5,801
2,586
17,154
10,308
Gain on sale of business
—
(22)
(380)
(187,658)
Gain on sale of equity-method investment and recovery of note receivable
(12,767)
—
(12,767)
—
Other
160
(45)
249
125
Changes in operating assets and liabilities:
Accounts receivable
(753)
(553)
(2,103)
(2,782)
Prepaid expenses and other current assets
1,390
(5,035)
(2,168)
(5,894)
Other assets
(78)
(199)
(1,259)
(519)
Accounts payable
(887)
(1,598)
497
(903)
Accrued employee expenses—current
4,929
880
11,264
2,799
Accrued expenses
(347)
947
(1,773)
6,878
Deferred revenue
116
(285)
(186)
530
Income tax payable
(50)
(4,475)
(8,959)
9,095
Accrued employee expenses—noncurrent
(1,476)
—
583
—
Operating lease liabilities
(727)
571
1,268
(564)
Other liabilities
(67)
(2,698)
462
271
Net cash provided by operating activities
8,932
3,083
35,391
48,299
Cash from investing activities
Purchases of available-for-sale investments
(74,174)
(13,998)
(241,215)
(43,877)
Proceeds from sales of available-for-sale investments
—
2,769
43,198
16,711
Proceeds from maturities of available-for-sale investments
33,600
14,030
107,354
27,330
Purchases of property, equipment and intangible assets
(2,937)
(2,487)
(8,103)
(19,038)
Capitalization of software development costs
(6,104)
(6,345)
(24,615)
(26,042)
Proceeds from sale of business, net of cash divested
402
—
402
191,427
Proceeds from sale of equity-method investment and recovery of note receivable
12,520
—
12,520
—
Net cash (used in) provided by investing activities
(36,693)
(6,031)
(110,459)
146,511
Cash from financing activities
Proceeds from stock option exercises
1,823
420
2,614
822
Tax withholding for net share settlement
(659)
(1,237)
(9,962)
(12,196)
Payment of contingent consideration
—
—
—
(5,977)
Proceeds from issuance of debt
—
—
—
50,752
Principal payments on debt
—
—
—
(99,565)
Purchase of treasury stock
—
—
—
(4,194)
Net cash provided by (used in) financing activities
1,164
(817)
(7,348)
(70,358)
Net (decrease) increase in cash and cash equivalents and restricted cash
(26,597)
(3,765)
(82,416)
124,452
Cash, cash equivalents and restricted cash
Beginning of period
84,880
144,464
140,699
16,247
End of period
$
58,283
$
140,699
$
58,283
$
140,699
(1) MyCase was divested on September 30, 2020. The results of MyCase have been included in our results of operations through the date of divestiture.
