SANTA BARBARA, Calif., May 05, 2017 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ:APPF) ("AppFolio" or the "Company"), a leading provider of cloud-based business software solutions, today announced its financial results for the quarter ended March 31, 2017.

AppFolio's operating results for the first quarter 2017 are summarized in the tables accompanying this press release. However, the Company urges investors to review its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the "SEC") on February 27, 2017, as well as its more detailed first quarter 2017 results set forth on Form 10-Q, which was filed with the SEC on May 5, 2017. Both documents, as well as other key SEC filings, are accessible on the Investor Relations page of AppFolio's website, http://ir.appfolioinc.com. The limited information that follows in this press release is not adequate for making an informed investment decision.

Financial Outlook

Based on information available as of May 5, 2017, AppFolio's outlook for fiscal year 2017 follows:
  • Full year revenue is expected to be in the range of $136 million to $138 million.
  • Diluted weighted average shares are expected to be approximately 35 million for the full year.

Conference Call Information

As previously announced, the Company will host a conference call before the open of the U.S. financial markets on Monday, May 8, 2017, at 6:00 a.m. (pacific), 9:00 a.m. (eastern), to discuss its financial results. Investors are invited to submit questions to management via the Investor Q&A form located on the Investor Overview section of AppFolio's website.

A live webcast of the call will be available at http://ir.appfolioinc.com, and it may also be accessed by dialing 844-239-5286 (Domestic), or 513-268-0783 (International). The conference ID is 14582305. A replay of the call will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until May 12, 2017, and an archived webcast will be available for twelve months on the Company's website.

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," "seeks," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "could," "will," "would," or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release relate to our future or assumed revenues and weighted-average outstanding shares, as well as our future growth and success.

Forward-looking statements represent our management'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 our 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 our actual results to materially differ from those expressed or implied by these forward-looking statements are described in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016, which we filed with the SEC on February 27, 2017, as well as in our other filings with the SEC. You should read this press release with the understanding that our 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 Stock Market, we assume 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,  2017     December 31,  2016
Assets          
Current assets          
Cash and cash equivalents   $ 7,969       $ 10,699  
Investment securities—current   19,355       15,473  
Accounts receivable, net   3,815       2,511  
Prepaid expenses and other current assets   3,135       3,537  
Total current assets   34,274       32,220  
Investment securities—noncurrent   24,933       26,688  
Property and equipment, net   6,635       7,077  
Capitalized software, net   16,363       15,539  
Goodwill   6,737       6,737  
Intangible assets, net   2,756       3,105  
Other assets   1,196       1,217  
Total assets   $ 92,894       $ 92,583  
Liabilities and Stockholders' Equity          
Current liabilities          
Accounts payable   $ 700       $ 937  
Accrued employee expenses   5,626       7,550  
Accrued expenses   4,520       4,044  
Deferred revenue   8,697       7,638  
Other current liabilities   1,402       1,192  
Total current liabilities   20,945       21,361  
Other liabilities   1,456       1,540  
Total liabilities   22,401       22,901  
           
Stockholders' equity:          
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding as of March 31, 2017 and December 31, 2016          
Class A common stock, $0.0001 par value, 250,000 shares authorized as of March 31, 2017 and December 31, 2016; 12,249 and 11,691 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively;   1       1  
Class B common stock, $0.0001 par value, 50,000 shares authorized as of March 31, 2017 and December 31, 2016; 21,576 and 22,028 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively;   3       3  
Additional paid-in capital   146,821       146,692  
Accumulated other comprehensive loss   (29 )     (51 )
Accumulated deficit   (76,303 )     (76,963 )
Total stockholders' equity   70,493       69,682  
Total liabilities and stockholders' equity   $ 92,894       $ 92,583  

 
                     
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
     
     
    Three Months Ended
  March 31,
    2017     2016
Revenue   $ 32,126         $ 23,211  
Costs and operating expenses:          
Cost of revenue (exclusive of depreciation and amortization)   12,993         10,530  
Sales and marketing   7,107         7,551  
Research and product development   3,629         3,043  
General and administrative   4,804         3,549  
Depreciation and amortization   2,996         2,117  
Total costs and operating expenses   31,529         26,790  
Income (loss) from operations   597         (3,579 )
Other expense, net   (28 )       (24 )
Interest income, net   102         24  
Income (loss) before provision for income taxes   671         (3,579 )
Provision for income taxes   11         24  
Net income (loss)   $ 660         $ (3,603 )
           
Net income (loss) per common share:          
Basic   $ 0.02         $ (0.11 )
Diluted   $ 0.02         $ (0.11 )
Weighted average common shares outstanding:          
Basic   33,706         33,463  
Diluted   34,765         33,463  
     
     
Stock-Based Compensation Expense  
(in thousands)  
    Three Months Ended
  March 31,
    2017     2016
Costs and operating expenses:          
Cost of revenue (exclusive of depreciation and amortization)   $ 129         $ 45  
Sales and marketing   120         42  
Research and product development   116         51  
General and administrative   732         325  
Total stock-based compensation expense   $ 1,097         $ 463  
 

 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
    Three Months Ended March 31,
    2017       2016
Cash from operating activities            
Net income (loss)   $ 660         $ (3,603 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:            
Depreciation and amortization   2,996         2,117  
Purchased investment premium, net of amortization   (14 )       145  
Amortization of deferred financing costs   16         16  
Loss on disposal of property and equipment   28         29  
Stock-based compensation   1,097         463  
Lease abandonment           91  
Changes in operating assets and liabilities:            
Accounts receivable   (1,303 )       (594 )
Prepaid expenses and other current assets   402         (1,281 )
Other assets   5         (110 )
Accounts payable   (19 )       (653 )
Accrued employee expenses   (1,662 )       94  
Accrued expenses   473         987  
Deferred revenue   1,059         705  
Other liabilities   69         858  
Net cash provided by (used in) operating activities   3,807         (736 )
Cash from investing activities            
Purchases of property and equipment   (392 )       (1,891 )
Additions to capitalized software   (2,991 )       (2,179 )
Purchases of investment securities   (6,537 )       (9,385 )
Sales of investment securities           6,505  
Maturities of investment securities   4,445         6,830  
Net cash used in investing activities   (5,475 )       (120 )
Cash from financing activities            
Proceeds from stock option exercises   145         80  
Tax withholding for net share settlement   (1,207 )        
Principal payments under capital lease obligations           (7 )
Proceeds from issuance of debt   29         29  
Principal payments on debt   (29 )       (41 )
Net cash (used in) provided by financing activities   (1,062 )       61  
Net decrease in cash and cash equivalents   (2,730 )       (795 )
Cash and cash equivalents            
Beginning of period   10,699         12,063  
End of period   $ 7,969         $ 11,268  

 

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