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Published: 2021-11-08 00:00:00 ET
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Exhibit 99.1
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News Release


AppFolio, Inc. Announces Third Quarter 2021 Financial Results


SANTA BARBARA, Calif., November 8, 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 industry, today announced its financial results for the third quarter ended September 30, 2021.

AppFolio's operating results for the third 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 third 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 November 8, 2021, AppFolio's outlook for fiscal year 2021 follows:
•Full year revenue is expected to be in the range of $355 million to $357 million.
•Diluted weighted average shares are expected to be approximately 36 million for the full year.

Conference Call Information
As previously announced, the Company will host a conference call today, November 8, 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 https://www.incommglobalevents.com/registration/q4inc/9012/appfolio-inc-announces-third-quarter-2021-financial-results. 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 866.813.9403 (domestic) or 929.458.6194 (international). The passcode is 367726. To access the webcast during the live call, participants may access https://events.q4inc.com/attendee/783445260 and use passcode 367726. 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 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 September 30, 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)
 September 30,
2021		December 31,
2020
Assets
Current assets
Cash and cash equivalents$84,444 $140,263 
Investment securities—current76,034 28,256 
Accounts receivable, net12,184 10,057 
Prepaid expenses and other current assets24,714 20,777 
Total current assets197,376 199,353 
Investment securities—noncurrent9,287 6,770 
Property and equipment, net28,177 26,439 
Operating lease right-of-use assets42,597 30,561 
Capitalized software development costs, net40,711 35,459 
Goodwill56,147 56,147 
Intangible assets, net12,864 16,357 
Deferred income taxes—noncurrent12,834 12,181 
Other long-term assets7,394 6,213 
Total assets$407,387 $389,480 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$2,493 $1,040 
Accrued employee expenses—current25,785 18,888 
Accrued expenses13,090 14,069 
Deferred revenue2,738 2,262 
Income tax payable186 9,095 
Other current liabilities4,910 4,451 
Total current liabilities49,202 49,805 
Accrued employee expenses—noncurrent2,059 — 
Operating lease liabilities56,559 40,146 
Deferred income taxes—noncurrent7,868 13,609 
Total liabilities115,688 103,560 
Stockholders’ equity:
Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding as of September 30, 2021 and December 31, 2020— — 
Class A common stock, $0.0001 par value, 250,000 shares authorized as of September 30, 2021 and December 31, 2020; 19,610 and 19,148 shares issued as of September 30, 2021 and December 31, 2020, respectively; 19,191 and 18,729 shares outstanding as of September 30, 2020 and December 31, 2020, respectively2 2 
Class B common stock, $0.0001 par value, 50,000 shares authorized as of September 30, 2021 and December 31, 2020; 15,453 and 15,659 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively2 2 
Additional paid-in capital164,740 161,247 
Accumulated other comprehensive (loss) income(17)56 
Treasury stock, at cost, 419 shares of Class A common stock as of September 30, 2021 and December 31, 2020(25,756)(25,756)
Retained earnings152,728 150,369 
Total stockholders’ equity291,699 285,920 
Total liabilities and stockholders’ equity$407,387 $389,480 




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

 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2021202020212020
Revenue$95,809 $84,086 $263,770 $237,624 
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)38,730 32,752 104,847 89,124 
Sales and marketing19,362 14,894 53,255 43,117 
Research and product development16,500 13,454 46,389 36,794 
General and administrative13,404 12,946 40,971 36,303 
Depreciation and amortization7,826 6,680 22,844 19,751 
Total costs and operating expenses95,822 80,726 268,306 225,089 
(Loss) income from operations(13)3,360 (4,536)12,535 
Other (loss) income, net(353)187,747 705 187,759 
Interest income (expense), net65 (853)173 (1,909)
(Loss) income before (benefit from) provision for income taxes(301)190,254 (3,658)198,385 
(Benefit from) provision for income taxes(160)52,578 (6,017)39,469 
Net (loss) income$(141)$137,676 $2,359 $158,916 
Net (loss) income per common share:
Basic$— $4.01 $0.07 $4.64 
Diluted$— $3.86 $0.07 $4.46 
Weighted average common shares outstanding:
Basic34,614 34,296 34,525 34,241 
Diluted34,614 35,665 35,695 35,662 



Stock-Based Compensation Expense
(in thousands)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2021202020212020
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)$575 $452 $1,509 $1,098 
Sales and marketing738 367 1,587 1,069 
Research and product development1,451 474 3,522 1,348 
General and administrative1,299 1,803 3,435 3,293 
Total stock-based compensation expense$4,063 $3,096 $10,053 $6,808 




CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
 Three Months Ended
September 30,		Nine Months Ended
September 30,
 2021202020212020
Cash from operating activities
Net income$(141)$137,676 $2,359 $158,916 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,826 6,680 22,844 19,751 
Amortization of operating lease right-of-use assets913 902 2,312 2,973 
Deferred income taxes(308)36,015 (6,394)22,878 
Stock-based compensation4,063 3,096 10,053 6,808 
Gain on sale of business(21)(187,636)(380)(187,636)
Other309 200 89 170 
Changes in operating assets and liabilities:
Accounts receivable2,657 2,907 (1,350)(2,229)
Prepaid expenses and other current assets(1,387)(567)(3,558)(859)
Other assets(199)(213)(1,181)(320)
Accounts payable83 502 1,384 695 
Accrued employee expenses—current(1,303)1,202 6,335 1,919 
Accrued expenses1,621 1,397 (1,426)5,931 
Deferred revenue(335)283 (302)815 
Income tax payable120 — (8,909)— 
Accrued employee expenses—noncurrent1,091 — 2,059 — 
Operating lease liabilities310 (1,043)1,995 (1,135)
Other liabilities499 16,439 529 16,539 
Net cash provided by operating activities15,798 17,840 26,459 45,216 
Cash from investing activities
Purchases of available-for-sale investments(18,748)(16,490)(167,041)(29,879)
Proceeds from sales of available-for-sale investments1,000 — 43,198 13,942 
Proceeds from maturities of available-for-sale investments47,004 5,550 73,754 13,300 
Purchases of property, equipment and intangible assets(2,362)(2,245)(5,166)(16,551)
Capitalization of software development costs(6,600)(6,988)(18,511)(19,697)
Proceeds from sale of business, net of cash divested— 191,427 — 191,427 
 Net cash provided by (used in) investing activities20,294 171,254 (73,766)152,542 
Cash from financing activities
Proceeds from stock option exercises145 73 791 402 
Tax withholding for net share settlement(403)(1,269)(9,303)(10,959)
Payment of contingent consideration— — — (5,977)
Proceeds from issuance of debt— 562 — 50,752 
Principal payments on debt— (97,747)— (99,565)
Purchase of treasury stock— — — (4,194)
Net cash used in financing activities(258)(98,381)(8,512)(69,541)
Net increase (decrease) in cash and cash equivalents and restricted cash35,834 90,713 (55,819)128,217 
Cash, cash equivalents and restricted cash
Beginning of period49,046 53,751 140,699 16,247 
End of period$84,880 $144,464 $84,880 $144,464