SANTA BARBARA, Calif., Feb. 27, 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 fourth
quarter and fiscal year ended December 31, 2016.
AppFolio's operating results for the fourth quarter and fiscal year 2016 are summarized in the accompanying
tables in this press release. However, we urge investors to read our Annual Report on Form 10-K which we filed with the Securities
and Exchange Commission (the "SEC") on February 27, 2017, and is accessible from our website at 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 February 27, 2017, we are providing our outlook for fiscal year 2017
as indicated below.
- Full year revenue is expected to be in the range of $136 million to $138 million.
- Weighted average common shares outstanding are expected to be approximately 33.8 million for the full year.
Conference Call Information
As previously announced, we will host a conference call today, February 27, 2017, to discuss our fourth
quarter and fiscal year 2016 financial results at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time. If you have specific questions
related to these financial results, we ask that you submit these questions to ir@appfolio.com.
A live webcast of the conference call will be available at http://ir.appfolioinc.com. The conference call can
also be accessed by dialing 844-239-5286 (Domestic), or 513-268-0783 (International). The conference ID is 57609689. A replay
will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until the end of day March 3, 2017. An archived
webcast of this conference call will be available for 12 months on our website listed above.
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) |
| |
|
| |
December 31, |
| |
2016 |
|
2015 |
| Assets |
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$ |
10,699 |
|
|
$ |
12,063 |
|
| Investment securities—current |
15,473 |
|
|
10,235 |
|
| Accounts receivable, net |
2,511 |
|
|
2,048 |
|
| Prepaid expenses and other current assets |
3,537 |
|
|
3,160 |
|
| Total current assets |
32,220 |
|
|
27,506 |
|
| Investment securities—noncurrent |
26,688 |
|
|
34,417 |
|
| Property and equipment, net |
7,077 |
|
|
6,107 |
|
| Capitalized software, net |
15,539 |
|
|
10,022 |
|
| Goodwill |
6,737 |
|
|
6,737 |
|
| Intangible assets, net |
3,105 |
|
|
4,516 |
|
| Other assets |
1,217 |
|
|
1,176 |
|
| Total assets |
$ |
92,583 |
|
|
$ |
90,481 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
| Current liabilities |
|
|
|
| Accounts payable |
$ |
937 |
|
|
$ |
2,369 |
|
| Accrued employee expenses |
7,550 |
|
|
5,159 |
|
| Accrued expenses |
4,044 |
|
|
3,340 |
|
| Deferred revenue |
7,638 |
|
|
4,953 |
|
| Other current liabilities |
1,192 |
|
|
1,084 |
|
| Total current liabilities |
21,361 |
|
|
16,905 |
|
| Other liabilities |
1,540 |
|
|
879 |
|
| Total liabilities |
22,901 |
|
|
17,784 |
|
| Stockholders’ equity: |
|
|
|
| Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and
outstanding as of December 31, 2016 and 2015 |
— |
|
|
— |
|
| Class A common stock, $0.0001 par value, 250,000 shares authorized as of December
31, 2016 and 2015; 11,691 and 9,005 shares issued and outstanding as of December 31, 2016 and 2015, respectively |
1 |
|
|
1 |
|
| Class B common stock, $0.0001 par value, 50,000 shares authorized as of December
31, 2016 and 2015; 22,028 and 24,541 shares issued and outstanding as of December 31, 2016 and 2015, respectively |
3 |
|
|
3 |
|
| Additional paid-in capital |
146,692 |
|
|
141,528 |
|
| Accumulated other comprehensive loss |
(51 |
) |
|
(153 |
) |
| Accumulated deficit |
(76,963 |
) |
|
(68,682 |
) |
| Total stockholders’ equity |
69,682 |
|
|
72,697 |
|
| Total liabilities and stockholders’ equity |
$ |
92,583 |
|
|
$ |
90,481 |
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts) |
| |
|
|
|
| |
Three Months Ended
December 31, |
|
Twelve Months Ended
December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Revenue |
$ |
28,010 |
|
|
$ |
20,399 |
|
|
$ |
105,586 |
|
|
$ |
74,977 |
|
| Costs and operating expenses: |
|
|
|
|
|
|
|
| Cost of revenue (exclusive of depreciation and amortization) |
11,243 |
|
|
9,465 |
|
|
44,630 |
|
|
33,903 |
|
| Sales and marketing |
6,730 |
|
|
7,100 |
|
|
28,827 |
|
|
26,076 |
|
| Research and product development |
3,107 |
|
|
2,594 |
|
|
12,638 |
|
|
9,554 |
|
| General and administrative |
5,399 |
|
|
3,356 |
|
|
17,979 |
|
|
14,343 |
|
| Depreciation and amortization |
2,823 |
|
|
1,852 |
|
|
9,935 |
|
|
6,104 |
|
| Total costs and operating expenses |
29,302 |
|
|
24,367 |
|
|
114,009 |
|
|
89,980 |
|
| Loss from operations |
(1,292 |
) |
|
(3,968 |
) |
|
(8,423 |
) |
|
(15,003 |
) |
| Other income (expense), net |
(3 |
) |
|
13 |
|
|
(37 |
) |
|
5 |
|
| Interest income (expense), net |
25 |
|
|
106 |
|
|
246 |
|
|
(595 |
) |
| Loss before provision for income taxes |
(1,270 |
) |
|
(3,849 |
) |
|
(8,214 |
) |
|
(15,593 |
) |
| Provision for income taxes |
19 |
|
|
41 |
|
|
67 |
|
|
75 |
|
| Net loss |
$ |
(1,289 |
) |
|
$ |
(3,890 |
) |
|
$ |
(8,281 |
) |
|
$ |
(15,668 |
) |
| Net loss per share, basic and diluted |
(0.04 |
) |
|
(0.12 |
) |
|
(0.25 |
) |
|
(0.73 |
) |
| Weighted average common shares outstanding, basic and diluted |
33,654 |
|
|
33,407 |
|
|
33,561 |
|
|
21,336 |
|
Stock-Based Compensation Expense
(in thousands) |
| |
|
|
|
| |
Three Months Ended
December 31, |
|
Twelve Months
Ended December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Costs and operating expenses: |
|
|
|
|
|
|
|
| Cost of revenue (exclusive of depreciation and amortization) |
$ |
150 |
|
|
$ |
38 |
|
|
$ |
471 |
|
|
$ |
124 |
|
| Sales and marketing |
146 |
|
|
31 |
|
|
442 |
|
|
115 |
|
| Research and product development |
118 |
|
|
19 |
|
|
382 |
|
|
41 |
|
| General and administrative |
1,043 |
|
|
296 |
|
|
3,006 |
|
|
727 |
|
| Total stock-based compensation expense |
$ |
1,457 |
|
|
$ |
384 |
|
|
$ |
4,301 |
|
|
$ |
1,007 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(UNAUDITED)
(in thousands) |
| |
Three Months Ended
December 31, |
|
Twelve Months Ended
December 31, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| Cash from operating activities |
|
|
|
|
|
|
|
| Net loss |
$ |
(1,289 |
) |
|
$ |
(3,890 |
) |
|
$ |
(8,281 |
) |
|
$ |
(15,668 |
) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating
activities: |
|
|
|
|
|
|
|
| Depreciation and amortization |
2,823 |
|
|
1,852 |
|
|
9,935 |
|
|
6,104 |
|
| Purchased investment premium, net of amortization |
60 |
|
|
(485 |
) |
|
245 |
|
|
(865 |
) |
| Amortization of deferred financing costs |
15 |
|
|
15 |
|
|
63 |
|
|
456 |
|
| Loss on disposal of property, equipment and intangibles |
8 |
|
|
60 |
|
|
41 |
|
|
67 |
|
| Stock-based compensation |
1,457 |
|
|
384 |
|
|
4,301 |
|
|
1,007 |
|
| Lease abandonment |
— |
|
|
— |
|
|
161 |
|
|
— |
|
| Changes in operating assets and liabilities: |
— |
|
|
|
|
|
|
|
| Accounts receivable |
196 |
|
|
190 |
|
|
(463 |
) |
|
(746 |
) |
| Prepaid expenses and other current assets |
427 |
|
|
(548 |
) |
|
(377 |
) |
|
(1,893 |
) |
| Other assets |
60 |
|
|
64 |
|
|
(103 |
) |
|
(56 |
) |
| Accounts payable |
205 |
|
|
(606 |
) |
|
(904 |
) |
|
(439 |
) |
| Accrued employee expenses |
2,367 |
|
|
(1,223 |
) |
|
2,223 |
|
|
1,887 |
|
| Accrued expenses |
(206 |
) |
|
(99 |
) |
|
1,148 |
|
|
1,135 |
|
| Deferred revenue |
1,011 |
|
|
511 |
|
|
2,685 |
|
|
1,173 |
|
| Other liabilities |
(357 |
) |
|
705 |
|
|
826 |
|
|
994 |
|
| Net cash provided by (used in) operating activities |
6,777 |
|
|
(3,070 |
) |
|
11,500 |
|
|
(6,844 |
) |
| Cash from investing activities |
|
|
|
|
|
|
|
| Purchases of property and equipment |
(682 |
) |
|
(1,460 |
) |
|
(4,242 |
) |
|
(3,694 |
) |
| Additions to capitalized software |
(2,612 |
) |
|
(2,304 |
) |
|
(11,166 |
) |
|
(7,677 |
) |
| Purchases of investment securities |
(7,217 |
) |
|
(13,750 |
) |
|
(31,551 |
) |
|
(74,176 |
) |
| Sales of investment securities |
2,543 |
|
|
4,100 |
|
|
12,559 |
|
|
4,100 |
|
| Maturities of investment securities |
4,225 |
|
|
17,186 |
|
|
21,337 |
|
|
26,136 |
|
| Cash paid in business acquisition, net of cash acquired |
— |
|
|
— |
|
|
— |
|
|
(4,039 |
) |
| Purchases of intangible assets |
— |
|
|
(1 |
) |
|
(2 |
) |
|
(17 |
) |
| Net cash (used in) provided by investing activities |
(3,743 |
) |
|
3,771 |
|
|
(13,065 |
) |
|
(59,367 |
) |
| Cash from financing activities |
|
|
|
|
|
|
|
| Proceeds from stock option exercises |
92 |
|
|
29 |
|
|
352 |
|
|
357 |
|
| Proceeds from issuance of restricted stock |
— |
|
|
— |
|
|
— |
|
|
141 |
|
| Proceeds from issuance of options |
— |
|
|
— |
|
|
— |
|
|
208 |
|
| Tax withholding for net share settlement |
(26 |
) |
|
— |
|
|
(111 |
) |
|
— |
|
| Principal payments under capital lease obligations |
(5 |
) |
|
(5 |
) |
|
(29 |
) |
|
(27 |
) |
| Proceeds from initial public offering, net of underwriting discounts and
commissions |
— |
|
|
— |
|
|
— |
|
|
79,570 |
|
| Payments of initial public offering costs |
— |
|
|
(214 |
) |
|
— |
|
|
(4,213 |
) |
| Payment of contingent consideration |
— |
|
|
— |
|
|
— |
|
|
(2,429 |
) |
| Proceeds from issuance of debt |
30 |
|
|
253 |
|
|
117 |
|
|
10,253 |
|
| Principal payments on debt |
(29 |
) |
|
(241 |
) |
|
(128 |
) |
|
(10,241 |
) |
| Payment of debt issuance costs |
— |
|
|
(218 |
) |
|
— |
|
|
(757 |
) |
| Net cash provided by (used in)
financing activities |
62 |
|
|
(396 |
) |
|
201 |
|
|
72,862 |
|
| Net increase (decrease) in cash and cash equivalents |
3,096 |
|
|
305 |
|
|
(1,364 |
) |
|
6,651 |
|
| Cash and cash equivalents |
|
|
|
|
|
|
|
| Beginning of period |
7,603 |
|
|
11,758 |
|
|
12,063 |
|
|
5,412 |
|
| End of period |
$ |
10,699 |
|
|
$ |
12,063 |
|
|
$ |
10,699 |
|
|
$ |
12,063 |
|
