SANTA BARBARA, Calif., April 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 March 31, 2018.

AppFolio's operating results for the first 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 first quarter 2018 results set forth on Form 10-Q, which was filed with the SEC on April 30, 2018. Both documents, together with other key SEC filings, are 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 April 30, 2018, AppFolio's outlook for fiscal year 2018 follows:

  • Full year revenue is expected to be in the range of $179 million to $182 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, April 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 1019149.  A replay will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until the end of day May 3, 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

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 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 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)

 March 31,
2018
 December 31,
2017
Assets   
Current assets   
Cash and cash equivalents$8,549  $16,109 
Investment securities—current37,290  29,800 
Accounts receivable, net4,535  3,387 
Prepaid expenses and other current assets5,253  4,546 
Total current assets55,627  53,842 
Investment securities—noncurrent21,971  22,401 
Property and equipment, net6,463  6,696 
Capitalized software, net18,064  17,609 
Goodwill6,737  6,737 
Intangible assets, net1,397  1,725 
Other assets3,806  1,238 
Total assets$114,065  $110,248 
Liabilities and Stockholders’ Equity   
Current liabilities   
Accounts payable$1,099  $610 
Accrued employee expenses7,486  10,710 
Accrued expenses4,905  4,289 
Deferred revenue5,746  7,080 
Other current liabilities1,129  1,223 
Total current liabilities20,365  23,912 
Other liabilities1,161  1,257 
Total liabilities21,526  25,169 
Stockholders’ equity:   
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding as of March 31, 2018 and December 31, 2017   
Class A common stock, $0.0001 par value, 250,000 shares authorized as of March 31, 2018 and December 31, 2017; 15,092 and 14,879 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively;1  1 
Class B common stock, $0.0001 par value, 50,000 shares authorized as of March 31, 2018 and December 31, 2017; 19,055 and 19,102 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively;3  3 
Additional paid-in capital152,855  152,531 
Accumulated other comprehensive loss(357) (209)
Accumulated deficit(59,963) (67,247)
Total stockholders’ equity92,539  85,079 
Total liabilities and stockholders’ equity$114,065  $110,248 
        

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)

  
 Three Months Ended
March 31,
 2018 2017
Revenue$42,340  $32,126 
Costs and operating expenses:   
Cost of revenue (exclusive of depreciation and amortization)16,613  12,993 
Sales and marketing7,405  7,107 
Research and product development5,333  3,629 
General and administrative5,316  4,804 
Depreciation and amortization3,500  2,996 
Total costs and operating expenses38,167  31,529 
Income from operations4,173  597 
Other expense, net(3) (28)
Interest income, net176  102 
Income before provision for income taxes4,346  671 
Provision for income taxes26  11 
Net income$4,320  $660 
    
Net income per common share:   
Basic0.13  0.02 
Diluted0.12  0.02 
Weighted average common shares outstanding:   
Basic34,070  33,706 
Diluted35,300  34,765 
      

Stock-Based Compensation Expense
(in thousands)

   
  Three Months Ended
March 31,
  2018 2017
Costs and operating expenses:    
Cost of revenue (exclusive of depreciation and amortization) $220  $129 
Sales and marketing 210  120 
Research and product development 225  116 
General and administrative 663  732 
Total stock-based compensation expense$1,318  $1,097 
        

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

 
    
 Three Months Ended March 31,
 2018 2017
Cash from operating activities   
Net income$4,320  $660 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization3,500  2,996 
Purchased investment premium, net of amortization62  (14)
Amortization of deferred financing costs16  16 
Loss on disposal of property and equipment1  28 
Stock-based compensation1,318  1,097 
Changes in operating assets and liabilities:   
Accounts receivable(1,148) (1,303)
Prepaid expenses and other current assets441  402 
Other assets(766) 5 
Accounts payable415  (19)
Accrued employee expenses(3,842) (1,662)
Accrued expenses611  473 
Deferred revenue(1,334) 1,059 
Other liabilities(252) 69 
Net cash provided by operating activities3,342  3,807 
Cash from investing activities   
Purchases of property and equipment(263) (392)
Additions to capitalized software(2,936) (2,991)
Purchases of investment securities(15,573) (6,537)
Sales of investment securities5   
Maturities of investment securities8,296  4,445 
Net cash used in investing activities(10,471) (5,475)
Cash from financing activities   
Proceeds from stock option exercises470  145 
Tax withholding for net share settlement(901) (1,207)
Proceeds from issuance of debt32  29 
Principal payments on debt(32) (29)
Net cash used in financing activities(431) (1,062)
Net decrease in cash, cash equivalents and restricted cash(7,560) (2,730)
Cash, cash equivalents and restricted cash   
Beginning of period16,537  11,126 
End of period$8,977  $8,396 

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):

 Three Months Ended March 31,
 2018 2017
Cash and cash equivalents$8,549  $7,969 
Restricted cash included in other assets428  427 
Total cash, cash equivalents and restricted cash$8,977  $8,396 

Investor Relations Contact: ir@appfolio.com