SANTA BARBARA, Calif., July 30, 2018 (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 June 30, 2018 and has updated its financial guidance for fiscal year 2018.
AppFolio's operating results for the second quarter 2018 are summarized in the tables accompanying this press release. The Company nevertheless urges investors to review its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the "SEC") on February 26, 2018, as well as its more detailed second quarter 2018 results that will be included in the Company's Quarterly Report on Form 10-Q, which will be filed with the SEC on July 30, 2018. 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 July 30, 2018, AppFolio has updated its financial guidance for fiscal year 2018 as follows:
Full year revenue is expected to be in the range of $183 million to $185 million.
Diluted weighted average shares outstanding 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, July 30, 2018 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 866-393-4306 (Domestic), or 734-385-2616 (International). The conference ID is 1199261. A replay will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until the end of day August 2, 2018, and an archived webcast will be available for 12 months on the Company's website.
About AppFolio, Inc.
AppFolio's mission is to revolutionize vertical industry businesses by providing great software and service. Our cloud-based solutions serve over 20,000 customers in the real estate and legal markets. Today our products include property management software (AppFolio Property Manager) and legal practice management software (MyCase). AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at www.appfolioinc.com.
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 the Company's future or assumed revenues and weighted-average outstanding shares.
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, 2017, which was filed with the SEC on February 26, 2018, 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)
June 30, 2018
December 31, 2017
Assets
Current assets
Cash and cash equivalents
$
18,010
$
16,109
Investment securities—current
34,710
29,800
Accounts receivable, net
5,554
3,387
Prepaid expenses and other current assets
6,253
4,546
Total current assets
64,527
53,842
Investment securities—noncurrent
22,550
22,401
Property and equipment, net
6,528
6,696
Capitalized software, net
18,392
17,609
Goodwill
6,737
6,737
Intangible assets, net
1,140
1,725
Other assets
4,084
1,238
Total assets
$
123,958
$
110,248
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$
1,840
$
610
Accrued employee expenses
8,772
10,710
Accrued expenses
5,759
4,289
Deferred revenue
3,791
7,080
Other current liabilities
1,751
1,223
Total current liabilities
21,913
23,912
Other liabilities
1,067
1,257
Total liabilities
22,980
25,169
Stockholders’ equity:
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding as of June 30, 2018 and December 31, 2017
—
—
Class A common stock, $0.0001 par value, 250,000 shares authorized as of June 30, 2018 and December 31, 2017; 15,638 and 14,879 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively;
2
1
Class B common stock, $0.0001 par value, 50,000 shares authorized as of June 30, 2018 and December 31, 2017; 18,577 and 19,102 shares issued and outstanding as of June 30, 2018 and December 31, 2017, respectively;
2
3
Additional paid-in capital
153,752
152,531
Accumulated other comprehensive loss
(289
)
(209
)
Accumulated deficit
(52,489
)
(67,247
)
Total stockholders’ equity
100,978
85,079
Total liabilities and stockholders’ equity
$
123,958
$
110,248
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2018
2017
2018
2017
Revenue
$
47,240
$
35,877
$
89,580
$
68,003
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)
17,729
13,701
34,342
26,694
Sales and marketing
7,625
7,192
15,030
14,299
Research and product development
5,750
4,002
11,083
7,631
General and administrative
5,248
5,101
10,564
9,905
Depreciation and amortization
3,579
3,114
7,079
6,110
Total costs and operating expenses
39,931
33,110
78,098
64,639
Income from operations
7,309
2,767
11,482
3,364
Other expense, net
(18
)
(60
)
(21
)
(88
)
Interest income, net
226
120
402
222
Income before provision for income taxes
7,517
2,827
11,863
3,498
Provision for income taxes
43
30
69
41
Net income
$
7,474
$
2,797
$
11,794
$
3,457
Net income per common share:
Basic
0.22
0.08
0.35
0.10
Diluted
0.21
0.08
0.33
0.10
Weighted average common shares outstanding:
Basic
34,173
33,838
34,122
33,772
Diluted
35,408
34,928
35,361
34,879
Stock-Based Compensation Expense (in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2018
2017
2018
2017
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)
$
250
$
209
$
470
$
338
Sales and marketing
228
210
438
330
Research and product development
287
182
512
298
General and administrative
572
1,018
1,235
1,750
Total stock-based compensation expense
$
1,337
$
1,619
$
2,655
$
2,716
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2018
2017
2018
2017
Cash from operating activities
Net income
$
7,474
$
2,797
$
11,794
$
3,457
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
3,579
3,114
7,079
6,110
Purchased investment premium, net of amortization
32
(90
)
94
(104
)
Amortization of deferred financing costs
16
16
32
32
Loss on disposal of property and equipment
19
61
20
89
Stock-based compensation
1,337
1,619
2,655
2,716
Changes in operating assets and liabilities:
Accounts receivable
(1,020
)
(418
)
(2,168
)
(1,721
)
Prepaid expenses and other current assets
(1,000
)
(614
)
(559
)
(212
)
Other assets
(296
)
(56
)
(1,062
)
(51
)
Accounts payable
424
(300
)
839
(319
)
Accrued employee expenses
1,802
2,238
(2,040
)
576
Accrued expenses
822
321
1,433
794
Deferred revenue
(1,955
)
(660
)
(3,289
)
399
Other liabilities
478
31
226
100
Net cash provided by operating activities
11,712
8,059
15,054
11,866
Cash from investing activities
Purchases of property and equipment
(317
)
(445
)
(580
)
(837
)
Additions to capitalized software
(2,569
)
(2,280
)
(5,505
)
(5,271
)
Purchases of investment securities
(5,259
)
(9,060
)
(20,832
)
(15,597
)
Sales of investment securities
—
—
5
—
Maturities of investment securities
7,299
3,044
15,595
7,489
Purchases of intangible assets
—
(1
)
—
(1
)
Net cash used in investing activities
(846
)
(8,742
)
(11,317
)
(14,217
)
Cash from financing activities
Proceeds from stock option exercises
188
241
658
386
Tax withholding for net share settlement
(1,593
)
(138
)
(2,494
)
(1,345
)
Proceeds from issuance of debt
31
30
63
59
Principal payments on debt
(31
)
(30
)
(63
)
(59
)
Net cash (used in) provided by financing activities
(1,405
)
103
(1,836
)
(959
)
Net increase (decrease) in cash, cash equivalents and restricted cash
9,461
(580
)
1,901
(3,310
)
Cash, cash equivalents and restricted cash
Beginning of period
8,977
8,396
16,537
11,126
End of period
$
18,438
$
7,816
$
18,438
$
7,816
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Condensed Consolidated Balance Sheets to the total of the same such amounts shown above (in thousands):
