SANTA BARBARA, Calif., May 09, 2016 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ:APPF), a leading provider of
cloud-based business software solutions, today announced results for the first quarter ended March 31, 2016.
First Quarter 2016 Highlights
- First quarter revenue was $23.2 million, an increase of 46% period-over-period.
- First quarter GAAP net loss was $3.6 million, or a net loss of $0.11 per share; Non-GAAP net loss was $3.1 million, or a net
loss of $0.09 per share.
- Increased property manager customers 36% year-over-year to 8,816; increased units under management 27% year-over-year to 2.3
million.
- Increased law firm customers 61% year-over-year to 6,834.
The Company used approximately $0.7 million in cash for operating activities and reported a $1.0 million loss in Non-GAAP
Adjusted EBITDA. At March 31, 2016, the Company had $52.1 million in cash and cash equivalents and investment securities.
“We are pleased with our first quarter performance, posting solid growth in revenue and units under management, as well as good
progress with our land and expand strategy," commented Brian Donahoo, President and CEO of AppFolio. "During the
quarter, we continued to delight our customers through our rapid pace of innovation with the release of AppFolio Premium Leads for
our property manager customers, among other significant enhancements to our software platform. The first quarter was a strong start
to what we believe will be a successful year for AppFolio.”
Financial Outlook
Based on information available as of May 9, 2016, we are reiterating our outlook for full year 2016 as indicated below.
- Full year revenue is expected to be in the range of $100.0 million to $104.0 million.
- Weighted average common shares outstanding are expected to be approximately 33.7 million for the full year.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. Generally Accepted
Accounting Principles, or GAAP, we provide investors with certain Non-GAAP financial measures, including Non-GAAP net loss,
Non-GAAP net loss per share, and Non-GAAP Adjusted EBITDA which are financial measures that have not been prepared in accordance
with GAAP. Non-GAAP net loss and non-GAAP net loss per share are defined as net loss and net loss per share, respectively,
attributable to common stockholders before stock-based compensation expense. Non-GAAP Adjusted EBTIDA is defined as net loss before
depreciation and amortization, stock-based compensation expense, provision for income taxes, other income (expense), net, and
interest income (expense), net.
We use these Non-GAAP financial measures internally in analyzing our financial results and believe they are
useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. The principal limitation
of these Non-GAAP financial measures is that they exclude expenses that are required by GAAP to be recorded in our financial
statements. These financial measures are not intended to be considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with GAAP. In addition, these financial measures may be different from
Non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. A reconciliation of the
Non-GAAP financial measures to the most direct comparable GAAP measure has been provided in the financial statement tables included
below in this press release.
We urge investors to review these reconciliations and not to rely on any single financial measure to evaluate our business.
Conference Call Information
As previously announced, we will host a conference call today, May 9, 2016, to discuss our first quarter financial results at
2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. A live webcast of the conference call will be available at http://ir.appfolioinc.com. The conference call can also be accessed by dialing 855-539-0896
(Domestic), or 412-455-6028 (International). The conference ID is 93220882. A replay will be available at 855-859-2056
(Domestic) and 404-537-3406 (International) until the end of day May 13, 2016. An archived webcast of this conference call will be
available for 12 months on our website listed above.
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.
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, 2015, which we filed with the Securities
and Exchange Commission (the "SEC") on February 29, 2016, 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,
2016 |
|
December 31,
2015 |
| Assets |
|
|
|
|
| Current assets |
|
|
|
|
| Cash and cash equivalents |
|
$ |
11,268 |
|
|
$ |
12,063 |
|
| Investment securities—current |
|
9,947 |
|
|
10,235 |
|
| Accounts receivable, net |
|
2,642 |
|
|
2,048 |
|
| Prepaid expenses and other current assets |
|
4,440 |
|
|
3,160 |
|
| Total current assets |
|
28,297 |
|
|
27,506 |
|
| Investment securities—noncurrent |
|
30,910 |
|
|
34,417 |
|
| Property and equipment, net |
|
6,964 |
|
|
6,107 |
|
| Capitalized software, net |
|
11,239 |
|
|
10,022 |
|
| Goodwill |
|
6,737 |
|
|
6,737 |
|
| Intangible assets, net |
|
4,160 |
|
|
4,516 |
|
| Other assets |
|
1,273 |
|
|
1,176 |
|
| Total assets |
|
$ |
89,580 |
|
|
$ |
90,481 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
| Current liabilities |
|
|
|
|
| Accounts payable |
|
$ |
1,470 |
|
|
$ |
2,369 |
|
| Accrued employee expenses |
|
5,518 |
|
|
5,159 |
|
| Accrued expenses |
|
4,053 |
|
|
3,340 |
|
| Deferred revenue |
|
5,658 |
|
|
4,953 |
|
| Other current liabilities |
|
1,135 |
|
|
1,084 |
|
| Total current liabilities |
|
17,834 |
|
|
16,905 |
|
| Other liabilities |
|
1,746 |
|
|
879 |
|
| Total liabilities |
|
19,580 |
|
|
17,784 |
|
| Stockholders’ equity: |
|
|
|
|
| Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and
outstanding as of March 31, 2016 and December 31, 2015 |
|
— |
|
|
— |
|
| Class A common stock, $0.0001 par value, 250,000 shares authorized as of March 31,
2016 and December 31, 2015; 10,707 and 9,005 shares issued and outstanding as of March 31, 2016 and December 31, 2015,
respectively; |
|
1 |
|
|
1 |
|
| Class B common stock, $0.0001 par value, 50,000 shares authorized as of March 31, 2016
and December 31, 2015; 22,887 and 24,541 shares issued and outstanding as of March 31, 2016 and December 31, 2015,
respectively; |
|
3 |
|
|
3 |
|
| Additional paid-in capital |
|
142,134 |
|
|
141,528 |
|
| Accumulated other comprehensive gain (loss) |
|
147 |
|
|
(153 |
) |
| Accumulated deficit |
|
(72,285 |
) |
|
(68,682 |
) |
| Total stockholders’ equity |
|
70,000 |
|
|
72,697 |
|
| Total liabilities and stockholders’ equity |
|
$ |
89,580 |
|
|
$ |
90,481 |
|
| |
|
|
|
|
|
|
|
|
| |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (UNAUDITED) |
| (in thousands, except per share amounts) |
| |
| |
Three Months Ended
March 31, |
| |
2016 |
|
2015 |
| Revenue |
$ |
23,211 |
|
|
$ |
15,848 |
|
| Costs and operating expenses: |
|
|
|
| Cost of revenue (exclusive of depreciation and amortization) |
10,530 |
|
|
7,065 |
|
| Sales and marketing |
7,551 |
|
|
5,709 |
|
| Research and product development |
3,043 |
|
|
2,009 |
|
| General and administrative |
3,549 |
|
|
3,392 |
|
| Depreciation and amortization |
2,117 |
|
|
1,183 |
|
| Total costs and operating expenses |
26,790 |
|
|
19,358 |
|
| Loss from operations |
(3,579 |
) |
|
(3,510 |
) |
| Other expense, net |
(24 |
) |
|
(2 |
) |
| Interest income (expense), net |
24 |
|
|
(32 |
) |
| Loss before provision for income taxes |
(3,579 |
) |
|
(3,544 |
) |
| Provision for income taxes |
24 |
|
|
74 |
|
| Net loss |
$ |
(3,603 |
) |
|
$ |
(3,618 |
) |
| Net loss per share, basic and diluted |
(0.11 |
) |
|
(0.41 |
) |
| Weighted average common shares outstanding, basic and diluted |
33,463 |
|
|
8,913 |
|
| |
|
|
|
|
|
Supplemental Revenue Information
The following table presents our revenue categories for the quarter ended March 31, 2016 and 2015 (in
thousands):
| |
| |
|
Three Months Ended
March 31, |
| |
|
2016 |
|
2015 |
| Core solutions |
|
$ |
9,763 |
|
|
$ |
7,134 |
|
| Value+ services |
|
12,255 |
|
|
7,703 |
|
| Other |
|
1,193 |
|
|
1,011 |
|
| Total revenues |
|
$ |
23,211 |
|
|
$ |
15,848 |
|
| |
|
|
|
|
|
|
|
|
| |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(UNAUDITED)
(in thousands) |
| |
|
|
|
| |
Three Months Ended
March 31, |
| |
2016 |
|
2015 |
| Cash from operating activities |
|
|
|
| Net loss |
$ |
(3,603 |
) |
|
$ |
(3,618 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
| Depreciation and amortization |
2,117 |
|
|
1,183 |
|
| Purchased investment premium, net of amortization |
145 |
|
|
— |
|
| Amortization of deferred financing costs |
16 |
|
|
5 |
|
| Loss on disposal of property and equipment |
29 |
|
|
7 |
|
| Stock-based compensation |
463 |
|
|
133 |
|
| Lease abandonment |
91 |
|
|
— |
|
| Changes in operating assets and liabilities: |
|
|
|
| Accounts receivable |
(594 |
) |
|
(665 |
) |
| Prepaid expenses and other current assets |
(1,281 |
) |
|
(526 |
) |
| Other assets |
(110 |
) |
|
(44 |
) |
| Accounts payable |
(653 |
) |
|
209 |
|
| Accrued employee expenses |
94 |
|
|
901 |
|
| Accrued expenses |
987 |
|
|
800 |
|
| Deferred revenue |
705 |
|
|
455 |
|
| Other liabilities |
858 |
|
|
(51 |
) |
| Net cash used in operating activities |
(736 |
) |
|
(1,211 |
) |
| Cash from investing activities |
|
|
|
| Purchases of property and equipment |
(1,891 |
) |
|
(721 |
) |
| Additions to capitalized software |
(2,179 |
) |
|
(1,231 |
) |
| Purchases of investment securities |
(9,385 |
) |
|
— |
|
| Sales and calls of investment securities |
11,005 |
|
|
— |
|
| Maturities of investment securities |
2,330 |
|
|
— |
|
| Purchases of intangible assets |
— |
|
|
(5 |
) |
| Net cash used in investing activities |
(120 |
) |
|
(1,957 |
) |
| Cash from financing activities |
|
|
|
| Proceeds from stock option exercises |
80 |
|
|
68 |
|
| Proceeds from issuance of restricted stock |
— |
|
|
141 |
|
| Principal payments under capital lease obligations |
(7 |
) |
|
(6 |
) |
| Proceeds from issuance of debt |
29 |
|
|
10,000 |
|
| Principal payments on debt |
(41 |
) |
|
— |
|
| Payment of debt issuance costs |
— |
|
|
(413 |
) |
| Net cash provided by financing activities |
61 |
|
|
9,790 |
|
| Net cash (decrease) increase in cash and cash equivalents |
(795 |
) |
|
6,622 |
|
| Cash and cash equivalents |
|
|
|
| Beginning of period |
12,063 |
|
|
5,412 |
|
| End of period |
11,268 |
|
|
12,034 |
|
| |
|
|
|
|
|
| |
| Stock-Based Compensation Expense |
| (in thousands) |
| |
| |
|
Three Months Ended
March 31, |
| |
|
2016 |
|
2015 |
| Costs and operating expenses: |
|
|
|
|
| Cost of revenue (exclusive of depreciation and amortization) |
|
$ |
45 |
|
|
$ |
24 |
|
| Sales and marketing |
|
42 |
|
|
23 |
|
| Research and product development |
|
51 |
|
|
5 |
|
| General and administrative |
|
325 |
|
|
81 |
|
| Total stock-based compensation expense |
|
$ |
463 |
|
|
$ |
133 |
|
| |
|
|
|
|
|
|
|
|
| |
| Reconciliation of GAAP Measures to Non-GAAP
Measures |
| (in thousands, except per share data) |
| |
| |
Three Months Ended
March 31, |
| |
2016 |
|
2015 |
| Net loss |
$ |
(3,603 |
) |
|
$ |
(3,618 |
) |
| Stock-based compensation expense |
463 |
|
|
133 |
|
| Non-GAAP net loss |
$ |
(3,140 |
) |
|
$ |
(3,485 |
) |
| Non-GAAP net loss per share, basic and diluted |
$ |
(0.09 |
) |
|
$ |
(0.39 |
) |
| Weighted average common shares outstanding, basic and diluted |
33,463 |
|
|
8,913 |
|
| |
|
|
|
|
|
| |
|
| |
Three Months Ended
March 31, |
| |
2016 |
|
2015 |
| Net loss |
$ |
(3,603 |
) |
|
$ |
(3,618 |
) |
| Depreciation and amortization |
2,117 |
|
|
1,183 |
|
| Stock-based compensation expense |
463 |
|
|
133 |
|
| Provision for income taxes |
24 |
|
|
74 |
|
| Other expense, net |
24 |
|
|
2 |
|
| Interest (income) expense, net |
(24 |
) |
|
32 |
|
| Non-GAAP Adjusted EBITDA |
$ |
(999 |
) |
|
$ |
(2,194 |
) |
| |
|
|
|
|
|
|
|
The following table presents our customers and units under management at the end of each quarter for the last six quarters:
| |
|
|
|
|
|
| |
2016 |
|
2015 |
|
2014 |
| |
March
31, |
|
December
31, |
|
September
30, |
|
June 30, |
|
March
31, |
|
December
31, |
| Property manager customers |
8,816 |
|
|
8,218 |
|
|
7,561 |
|
|
7,016 |
|
|
6,491 |
|
|
5,885 |
|
| Property manager units under management (in millions) |
2.30 |
|
|
2.15 |
|
|
2.01 |
|
|
1.92 |
|
|
1.81 |
|
|
1.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Legal customers |
6,834 |
|
|
6,145 |
|
|
5,566 |
|
|
4,891 |
|
|
4,253 |
|
|
3,658 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact: Erica Abrams, ir@appfolio.com, 805-364-6093
