AppFolio, Inc. Announces First Quarter 2021 Financial Results
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—current
103,341
28,256
Accounts receivable, net
12,524
10,057
Prepaid expenses and other current assets
20,843
20,777
Total current assets
181,452
199,353
Investment securities—noncurrent
11,806
6,770
Property and equipment, net
26,530
26,439
Operating lease right-of-use assets
30,021
30,561
Capitalized software development costs, net
37,554
35,459
Goodwill
56,147
56,147
Intangible assets, net
15,170
16,357
Deferred income taxes—noncurrent
13,401
12,181
Other long-term assets
6,616
6,213
Total assets
$
378,697
$
389,480
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
2,262
$
1,040
Accrued employee expenses—current
20,050
18,888
Accrued expenses
10,231
14,069
Deferred revenue
3,135
2,262
Income tax payable
2,601
9,095
Other current liabilities
4,758
4,451
Total current liabilities
43,037
49,805
Accrued employee expenses—noncurrent
1,172
—
Operating lease liabilities
39,598
40,146
Deferred income taxes—noncurrent
9,106
13,609
Total liabilities
92,913
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, respectively
2
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, respectively
2
2
Additional paid-in capital
160,650
161,247
Accumulated other comprehensive income
38
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 earnings
150,848
150,369
Total stockholders’ equity
285,784
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 marketing
16,179
14,506
Research and product development
14,383
11,212
General and administrative
13,361
8,572
Depreciation and amortization
7,369
6,414
Total costs and operating expenses
84,590
69,665
(Loss) income from operations
(5,669)
2,830
Other income, net
562
22
Interest income (expense), net
53
(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:
Basic
34,409
34,175
Diluted
35,712
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 marketing
402
225
Research and product development
857
294
General and administrative
1,046
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 amortization
7,369
6,414
Amortization of operating lease right-of-use assets
662
1,053
Deferred income taxes
(5,723)
362
Stock-based compensation
2,776
959
Other
(157)
(38)
Changes in operating assets and liabilities:
Accounts receivable
(1,896)
(1,616)
Prepaid expenses and other current assets
47
(2,822)
Other assets
(403)
(148)
Accounts payable
870
(362)
Accrued employee expenses—current
728
(5,427)
Accrued expenses
(3,804)
726
Deferred revenue
299
693
Income tax payable
(6,494)
—
Other current liabilities
310
522
Accrued employee expenses—noncurrent
1,172
—
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 investments
17,899
13,942
Proceeds from maturities of available-for-sale investments
1,000
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 exercises
100
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
