SANTA BARBARA, Calif., Nov. 06, 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 September 30, 2017.

AppFolio's operating results for the third quarter 2017 are summarized in the tables accompanying this press release. 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 third quarter 2017 results set forth on Form 10-Q, which was filed with the SEC on November 6, 2017.  Both documents, together with 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 November 6, 2017, AppFolio's outlook for fiscal year 2017 follows:
  • Full year revenue is expected to be in the range of $140 million to $141 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 today, November 6, 2017 at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, 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 844-579-6824 (Domestic), or 734-385-2616 (International). The conference ID is 97178163.  A replay will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until the end of day November 8, 2017, and an archived webcast will be available for 12 months on the Company's website.      

About AppFolio, Inc.

AppFolio provides comprehensive, easy-to-use, cloud-based business software solutions for small and medium-sized businesses in various vertical markets. Our products include cloud-based property management software ( AppFolio Property Manager) and cloud-based legal practice management software ( MyCase). The Company 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," "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)
 
  September 30,  2017   December 31,  2016
Assets      
Current assets      
Cash and cash equivalents $ 14,781     $ 10,699  
Investment securities—current 28,396     15,473  
Accounts receivable, net 3,419     2,511  
Prepaid expenses and other current assets 4,393     3,537  
Total current assets 50,989     32,220  
Investment securities—noncurrent 20,423     26,688  
Property and equipment, net 7,005     7,077  
Capitalized software, net 17,320     15,539  
Goodwill 6,737     6,737  
Intangible assets, net 2,054       3,105  
Other assets 1,219     1,217  
Total assets $ 105,747     $ 92,583  
Liabilities and Stockholders' Equity      
Current liabilities      
Accounts payable $ 1,164     $ 937  
Accrued employee expenses 8,169     7,550  
Accrued expenses 5,908     4,044  
Deferred revenue 7,508     7,638  
Other current liabilities 1,083     1,192  
Total current liabilities 23,832     21,361  
Other liabilities 1,238     1,540  
Total liabilities 25,070     22,901  
Stockholders' equity:      
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding as of September 30, 2017 and December 31, 2016      
Class A common stock, $0.0001 par value, 250,000 shares authorized as of September 30, 2017 and December 31, 2016; 14,494 and 11,691 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively; 1     1  
Class B common stock, $0.0001 par value, 50,000 shares authorized as of September 30, 2017 and December 31, 2016; 19,448 and 22,028 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively; 3     3  
Additional paid-in capital 150,520     146,692  
Accumulated other comprehensive loss (23 )   (51 )
Accumulated deficit (69,824 )   (76,963 )
Total stockholders' equity 80,677     69,682  
Total liabilities and stockholders' equity $ 105,747     $ 92,583  
 
 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
 
  Three Months Ended September 30,     Nine Months Ended September 30,
  2017   2016   2017   2016
Revenue $ 37,903     $ 28,162     $ 105,906     $ 77,576  
Costs and operating expenses:              
Cost of revenue (exclusive of depreciation and amortization) 14,053     11,645     40,747     33,387  
Sales and marketing 7,257     6,979     21,556     22,097  
Research and product development 4,367     3,464     11,998     9,531  
General and administrative 5,405     4,642     15,310     12,580  
Depreciation and amortization 3,237     2,636     9,347     7,112  
Total costs and operating expenses 34,319     29,366     98,958     84,707  
Income (loss) from operations 3,584     (1,204 )   6,948     (7,131 )
Other expense, net (5 )   (12 )   (93 )   (34 )
Interest income, net 155     102     377     221  
Income (loss) before provision for income taxes 3,734     (1,114 )   7,232     (6,944 )
Provision for income taxes 52     11     93     48  
Net income (loss) $ 3,682     $ (1,125 )   $ 7,139     $ (6,992 )
               
Net income (loss) per common share:              
Basic 0.11     (0.03 )   0.21     (0.21 )
Diluted 0.10     (0.03 )   0.20     (0.21 )
Weighted average common shares outstanding:              
Basic 33,905     33,600     33,817     33,529  
Diluted 35,205     33,600     35,091     33,529  
                       
                       

Stock-Based Compensation Expense
(in thousands)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
    2017   2016   2017   2016
Costs and operating expenses:                
Cost of revenue (exclusive of depreciation and amortization)   $ 189     $ 138     $ 527     $ 321  
Sales and marketing   186     124     516     296  
Research and product development   173     109     471     264  
General and administrative   1,040     918     2,790     1,963  
Total stock-based compensation expense   $ 1,588     $ 1,289     $ 4,304     $ 2,844  
 
 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2017   2016   2017   2016
Cash from operating activities              
Net income (loss) $ 3,682     $ (1,125 )   $ 7,139     $ (6,992 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
Depreciation and amortization 3,237     2,636     9,347     7,112  
Purchased investment premium, net of amortization 82     90     (22 )   185  
Amortization of deferred financing costs 16     16     48     48  
Loss on disposal of property and equipment 5     1     94     33  
Stock-based compensation 1,588     1,289     4,304     2,844  
Lease abandonment     101         161  
Changes in operating assets and liabilities:              
Accounts receivable 813     337     (908 )   (659 )
Prepaid expenses and other current assets (644 )   (157 )   (856 )   (804 )
Other assets (3 )   (71 )   (54 )   (163 )
Accounts payable 688     (538 )   369     (1,109 )
Accrued employee expenses 270     (1,050 )   846     (144 )
Accrued expenses 919     603     1,713     1,354  
Deferred revenue (529 )   526     (130 )   1,674  
Other liabilities (434 )   (312 )   (334 )   1,183  
Net cash provided by operating activities 9,690     2,346     21,556     4,723  
Cash from investing activities              
Purchases of property and equipment (843 )   (399 )   (1,680 )   (3,560 )
Additions to capitalized software (2,814 )   (3,395 )   (8,085 )   (8,554 )
Purchases of investment securities (2,000 )   (7,649 )   (17,597 )   (24,334 )
Sales of investment securities 15         15     10,016  
Maturities of investment securities 3,485     5,724     10,974     17,112  
Purchases of intangible assets     (2 )   (1 )   (2 )
Net cash used in investing activities (2,157 )   (5,721 )   (16,374 )   (9,322 )
Cash from financing activities              
Proceeds from stock option exercises 122     107     508     260  
Tax withholding for net share settlement (263 )   (85 )   (1,608 )   (85 )
Principal payments under capital lease obligations     (9 )       (24 )
Proceeds from issuance of debt 29     30     88     87  
Principal payments on debt (29 )   (28 )   (88 )   (99 )
Net cash provided by (used in) financing activities (141 )   15     (1,100 )   139  
Net increase (decrease) in cash and cash equivalents 7,392     (3,360 )   4,082     (4,460 )
Cash and cash equivalents              
Beginning of period 7,389     10,963     10,699     12,063  
End of period $ 14,781     $ 7,603     $ 14,781     $ 7,603