• AppFolio, Inc. Announces Second Quarter 2021 Financial Results

    Source: Nasdaq GlobeNewswire / 09 Aug 2021 16:05:01   America/New_York

    SANTA BARBARA, Calif., Aug. 09, 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 second quarter ended June 30, 2021.

    AppFolio's operating results for the second 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 second 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 August 9, 2021, AppFolio's outlook for fiscal year 2021 follows:

    • Full year revenue is expected to be in the range of $350 million to $355 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, August 9, 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/2995293. 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 2995293. 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 June 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)
     
     June 30,
    2021    		 December 31,
    2020
    Assets   
    Current assets   
    Cash and cash equivalents$48,610  $140,263 
    Investment securities—current102,978  28,256 
    Accounts receivable, net14,973  10,057 
    Prepaid expenses and other current assets23,306  20,777 
    Total current assets189,867  199,353 
    Investment securities—noncurrent11,541  6,770 
    Property and equipment, net27,324  26,439 
    Operating lease right-of-use assets40,983  30,561 
    Capitalized software development costs, net39,225  35,459 
    Goodwill56,147  56,147 
    Intangible assets, net14,017  16,357 
    Deferred income taxes—noncurrent12,774  12,181 
    Other long-term assets7,194  6,213 
    Total assets$399,072  $389,480 
    Liabilities and Stockholders’ Equity    
    Current liabilities   
    Accounts payable$2,411  $1,040 
    Accrued employee expenses—current27,504  18,888 
    Accrued expenses11,403  14,069 
    Deferred revenue3,205  2,262 
    Income tax payable66  9,095 
    Other current liabilities4,196  4,451 
    Total current liabilities48,785  49,805 
    Accrued employee expenses—noncurrent968  —  
    Operating lease liabilities53,936  40,146 
    Deferred income taxes—noncurrent8,116  13,609 
    Total liabilities111,805  103,560 
    Stockholders’ equity:   
    Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding as of June 30, 2021 and December 31, 2020—   —  
    Class A common stock, $0.0001 par value, 250,000 shares authorized as of June 30, 2021 and December 31, 2020; 19,408 and 19,148 shares issued as of June 30, 2021 and December 31, 2020, respectively; 18,989 and 18,729 shares outstanding as of June 30, 2020 and December 31, 2020, respectively2  2 
    Class B common stock, $0.0001 par value, 50,000 shares authorized as of June 30, 2021 and December 31, 2020; 15,621 and 15,659 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively2  2 
    Additional paid-in capital160,160  161,247 
    Accumulated other comprehensive (loss) income(10) 56 
    Treasury stock, at cost, 419 shares of Class A common stock as of June 30, 2021 and December 31, 2020(25,756) (25,756)
    Retained earnings152,869  150,369 
    Total stockholders’ equity287,267  285,920 
    Total liabilities and stockholders’ equity$399,072  $389,480 
     


     
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)
    (in thousands, except per share amounts)
     
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2021 2020 2021 2020
    Revenue$89,040  $81,043  $167,961  $153,538 
    Costs and operating expenses:       
    Cost of revenue (exclusive of depreciation and amortization)32,819  27,411  66,117  56,372 
    Sales and marketing17,714  13,717  33,893  28,223 
    Research and product development15,506  12,128  29,889  23,340 
    General and administrative14,206  14,785  27,567  23,357 
    Depreciation and amortization7,649  6,657  15,018  13,071 
    Total costs and operating expenses87,894  74,698  172,484  144,363 
    Income (loss) from operations1,146  6,345  (4,523) 9,175 
    Other income (loss), net496  (10) 1,058  12 
    Interest income (expense), net55  (562) 108  (1,056)
    Income (loss) before benefit from income taxes1,697  5,773  (3,357) 8,131 
    Benefit from income taxes(324) (13,484) (5,857) (13,109)
    Net income$2,021  $19,257  $2,500  $21,240 
            
    Net income per common share:       
    Basic$0.06  $0.56  $0.07  $0.62 
    Diluted$0.06  $0.54  $0.07  $0.60 
    Weighted average common shares outstanding:       
    Basic34,548  34,254  34,479  34,214 
    Diluted35,674  35,614  35,697  35,647 
                


     
    Stock-Based Compensation Expense
    (in thousands)
     
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2021 2020 2021 2020
    Costs and operating expenses:       
    Cost of revenue (exclusive of depreciation and amortization)$463  $520  $934  $646 
    Sales and marketing447  477  849  702 
    Research and product development1,214  580  2,071  874 
    General and administrative1,090  1,176  2,136  1,490 
    Total stock-based compensation expense$3,214  $2,753  $5,990  $3,712 
     


     
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
     Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
     2021 2020 2021 2020
    Cash from operating activities       
    Net income$2,021  $19,257  $2,500  $21,240 
    Adjustments to reconcile net income to net cash provided by operating activities:       
    Depreciation and amortization7,649  6,657  15,018  13,071 
    Amortization of operating lease right-of-use assets737  1,018  1,399  2,071 
    Deferred income taxes(363) (13,499) (6,086) (13,137)
    Stock-based compensation3,214  2,753  5,990  3,712 
    Other(422) 8  (579) (30)
    Changes in operating assets and liabilities:       
    Accounts receivable(2,111) (3,520) (4,007) (5,136)
    Prepaid expenses and other current assets(2,218) 2,530  (2,171) (292)
    Other assets(579) 41  (982) (107)
    Accounts payable431  555  1,301  193 
    Accrued employee expenses—current6,910  6,144  7,638  717 
    Accrued expenses757  3,808  (3,047) 4,534 
    Deferred revenue(266) (161) 33  532 
    Income tax payable(2,535) —   (9,029) —  
    Other current liabilities(280) —   30  100 
    Accrued employee expenses—noncurrent(204) (422) 968  —  
    Operating lease liabilities2,357  (876) 1,685  (92)
    Net cash provided by operating activities15,098  24,293  10,661  27,376 
    Cash from investing activities       
    Purchases of available-for-sale investments(49,282) (12,740) (148,293) (13,389)
    Proceeds from sales of available-for-sale investments24,299  —   42,198  13,942 
    Proceeds from maturities of available-for-sale investments25,750  500  26,750  7,750 
    Purchases of property, equipment and intangible assets(1,866) (6,314) (2,804) (14,306)
    Capitalization of software development costs(5,771) (5,887) (11,911) (12,709)
    Net cash used in investing activities(6,870) (24,441) (94,060) (18,712)
    Cash from financing activities       
    Proceeds from stock option exercises546  232  646  329 
    Tax withholding for net share settlement(4,908) (3,232) (8,900) (9,690)
    Payment of contingent consideration—   —   —   (5,977)
    Proceeds from issuance of debt—   753  —   50,190 
    Principal payments on debt—   (1,069) —   (1,818)
    Purchase of treasury stock—   —   —   (4,194)
    Net cash (used in) provided by financing activities(4,362) (3,316) (8,254) 28,840 
    Net increase (decrease) in cash and cash equivalents and restricted cash3,866  (3,464) (91,653) 37,504 
    Cash, cash equivalents and restricted cash       
    Beginning of period45,180  57,215  140,699  16,247 
    End of period$49,046  $53,751  $49,046  $53,751 


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