SANTA BARBARA, Calif., Feb. 26, 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 fourth
quarter and fiscal year ended December 31, 2017.
AppFolio's operating results for the fourth quarter and fiscal year 2017 are summarized in the tables
accompanying this press release. The Company nevertheless urges investors to read its full Annual Report on Form 10-K for the year
ended December 31, 2017, which was filed with the Securities and Exchange Commission (the "SEC") on February 26, 2018, and is
available on AppFolio's website at http://ir.appfolioinc.com. The limited information that follows is not adequate for making an
informed investment judgment.
Financial Outlook
Based on information available as of February 26, 2018, the Company's current 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, February 26, 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 1675569. A replay of the call will be available at 855-859-2056 (Domestic) and
404-537-3406 (International) until the end of day March 1, 2018, and an archived webcast will be available for twelve months on the
Company's website.
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 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) |
| |
| |
December 31, |
| |
2017 |
|
2016 |
| Assets |
|
|
|
| Current assets |
|
|
|
| Cash and cash equivalents |
$ |
16,109 |
|
|
$ |
10,699 |
|
| Investment securities—current |
29,800 |
|
|
15,473 |
|
| Accounts receivable, net |
3,387 |
|
|
2,511 |
|
| Prepaid expenses and other current assets |
4,546 |
|
|
3,537 |
|
| Total current assets |
53,842 |
|
|
32,220 |
|
| Investment securities—noncurrent |
22,401 |
|
|
26,688 |
|
| Property and equipment, net |
6,696 |
|
|
7,077 |
|
| Capitalized software, net |
17,609 |
|
|
15,539 |
|
| Goodwill |
6,737 |
|
|
6,737 |
|
| Intangible assets, net |
1,725 |
|
|
3,105 |
|
| Other assets |
1,238 |
|
|
1,217 |
|
| Total assets |
$ |
110,248 |
|
|
$ |
92,583 |
|
| Liabilities and Stockholders’ Equity |
|
|
|
| Current liabilities |
|
|
|
| Accounts payable |
$ |
610 |
|
|
$ |
937 |
|
| Accrued employee expenses |
10,710 |
|
|
7,550 |
|
| Accrued expenses |
4,289 |
|
|
4,044 |
|
| Deferred revenue |
7,080 |
|
|
7,638 |
|
| Other current liabilities |
1,223 |
|
|
1,192 |
|
| Total current liabilities |
23,912 |
|
|
21,361 |
|
| Other liabilities |
1,257 |
|
|
1,540 |
|
| Total liabilities |
25,169 |
|
|
22,901 |
|
| Stockholders’ equity: |
|
|
|
| Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and
outstanding as of December 31, 2017 and 2016 |
— |
|
|
— |
|
| Class A common stock, $0.0001 par value, 250,000 shares authorized as of December
31, 2017 and 2016; 14,879 and 11,691 shares issued and outstanding as of December 31, 2017 and 2016, respectively |
1 |
|
|
1 |
|
| Class B common stock, $0.0001 par value, 50,000 shares authorized as of December
31, 2017 and 2016; 19,102 and 22,028 shares issued and outstanding as of December 31, 2017 and 2016, respectively |
3 |
|
|
3 |
|
| Additional paid-in capital |
152,531 |
|
|
146,692 |
|
| Accumulated other comprehensive loss |
(209 |
) |
|
(51 |
) |
| Accumulated deficit |
(67,247 |
) |
|
(76,963 |
) |
| Total stockholders’ equity |
85,079 |
|
|
69,682 |
|
| Total liabilities and stockholders’ equity |
$ |
110,248 |
|
|
$ |
92,583 |
|
| |
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts) |
| |
| |
Three Months Ended
December 31, |
|
Twelve Months Ended
December 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Revenue |
$ |
37,897 |
|
|
$ |
28,010 |
|
|
$ |
143,803 |
|
|
$ |
105,586 |
|
| Costs and operating expenses: |
|
|
|
|
|
|
|
| Cost of revenue (exclusive of depreciation and amortization) |
14,536 |
|
|
11,243 |
|
|
55,283 |
|
|
44,630 |
|
| Sales and marketing |
7,153 |
|
|
6,730 |
|
|
28,709 |
|
|
28,827 |
|
| Research and product development |
4,580 |
|
|
3,107 |
|
|
16,578 |
|
|
12,638 |
|
| General and administrative |
5,889 |
|
|
5,399 |
|
|
21,199 |
|
|
17,979 |
|
| Depreciation and amortization |
3,352 |
|
|
2,823 |
|
|
12,699 |
|
|
9,935 |
|
| Total costs and operating expenses |
35,510 |
|
|
29,302 |
|
|
134,468 |
|
|
114,009 |
|
| Income (loss) from operations |
2,387 |
|
|
(1,292 |
) |
|
9,335 |
|
|
(8,423 |
) |
| Other expense, net |
(3 |
) |
|
(3 |
) |
|
(96 |
) |
|
(37 |
) |
| Interest income, net |
158 |
|
|
25 |
|
|
535 |
|
|
246 |
|
| Income (loss) before provision for income taxes |
2,542 |
|
|
(1,270 |
) |
|
9,774 |
|
|
(8,214 |
) |
| Income tax (benefit) provision |
(35 |
) |
|
19 |
|
|
58 |
|
|
67 |
|
| Net income (loss) |
$ |
2,577 |
|
|
$ |
(1,289 |
) |
|
$ |
9,716 |
|
|
$ |
(8,281 |
) |
| Net income (loss) per common share: |
|
|
|
|
|
|
|
| Basic |
0.08 |
|
|
(0.04 |
) |
|
0.29 |
|
|
(0.25 |
) |
| Diluted |
0.07 |
|
|
(0.04 |
) |
|
0.28 |
|
|
(0.25 |
) |
| Weighted average common shares outstanding: |
|
|
|
|
|
|
|
| Basic |
33,944 |
|
|
33,654 |
|
|
33,849 |
|
|
33,561 |
|
| Diluted |
35,310 |
|
|
33,654 |
|
|
35,151 |
|
|
33,561 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Stock-Based Compensation Expense
(in thousands)
| |
Three Months Ended
December 31, |
|
Twelve Months Ended
December 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Costs and operating expenses: |
|
|
|
|
|
|
|
| Cost of revenue (exclusive of depreciation and amortization) |
$ |
198 |
|
|
$ |
150 |
|
|
$ |
725 |
|
|
$ |
471 |
|
| Sales and marketing |
207 |
|
|
146 |
|
|
723 |
|
|
442 |
|
| Research and product development |
186 |
|
|
118 |
|
|
657 |
|
|
382 |
|
| General and administrative |
1,201 |
|
|
1,043 |
|
|
3,991 |
|
|
3,006 |
|
| Total stock-based compensation expense |
$ |
1,792 |
|
|
$ |
1,457 |
|
|
$ |
6,096 |
|
|
$ |
4,301 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(UNAUDITED)
(in thousands) |
| |
| |
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
| |
2017 |
|
2016 |
|
2017 |
|
2016 |
| Cash from operating activities |
|
|
|
|
|
|
|
| Net income (loss) |
$ |
2,577 |
|
|
$ |
(1,289 |
) |
|
$ |
9,716 |
|
|
$ |
(8,281 |
) |
| Adjustments to reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
|
|
|
|
| Depreciation and amortization |
3,352 |
|
|
2,823 |
|
|
12,699 |
|
|
9,935 |
|
| Purchased investment premium, net of amortization |
(17 |
) |
|
60 |
|
|
(39 |
) |
|
245 |
|
| Amortization of deferred financing costs |
15 |
|
|
15 |
|
|
63 |
|
|
63 |
|
| Loss on disposal of property, equipment and intangibles |
3 |
|
|
8 |
|
|
97 |
|
|
41 |
|
| Stock-based compensation |
1,792 |
|
|
1,457 |
|
|
6,096 |
|
|
4,301 |
|
| Lease abandonment |
— |
|
|
— |
|
|
— |
|
|
161 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
| Accounts receivable |
32 |
|
|
196 |
|
|
(876 |
) |
|
(463 |
) |
| Prepaid expenses and other current assets |
(153 |
) |
|
427 |
|
|
(1,009 |
) |
|
(377 |
) |
| Other assets |
(30 |
) |
|
60 |
|
|
(84 |
) |
|
(103 |
) |
| Accounts payable |
(469 |
) |
|
205 |
|
|
(100 |
) |
|
(904 |
) |
| Accrued employee expenses |
2,397 |
|
|
2,367 |
|
|
3,243 |
|
|
2,223 |
|
| Accrued expenses |
(1,442 |
) |
|
(206 |
) |
|
271 |
|
|
1,148 |
|
| Deferred revenue |
(428 |
) |
|
1,011 |
|
|
(558 |
) |
|
2,685 |
|
| Other liabilities |
186 |
|
|
(357 |
) |
|
(148 |
) |
|
826 |
|
| Net cash provided by operating activities |
7,815 |
|
|
6,777 |
|
|
29,371 |
|
|
11,500 |
|
| Cash from investing activities |
|
|
|
|
|
|
|
| Purchases of property and equipment |
(533 |
) |
|
(682 |
) |
|
(2,213 |
) |
|
(4,242 |
) |
| Additions to capitalized software |
(2,370 |
) |
|
(2,612 |
) |
|
(10,455 |
) |
|
(11,166 |
) |
| Purchases of investment securities |
(9,051 |
) |
|
(7,217 |
) |
|
(26,648 |
) |
|
(31,551 |
) |
| Sales of investment securities |
— |
|
|
2,543 |
|
|
15 |
|
|
12,559 |
|
| Maturities of investment securities |
5,500 |
|
|
4,225 |
|
|
16,474 |
|
|
21,337 |
|
| Purchases of intangible assets |
— |
|
|
— |
|
|
(1 |
) |
|
(2 |
) |
| Net cash used in investing activities |
(6,454 |
) |
|
(3,743 |
) |
|
(22,828 |
) |
|
(13,065 |
) |
| Cash from financing activities |
|
|
|
|
|
|
|
| Proceeds from stock option exercises |
155 |
|
|
92 |
|
|
663 |
|
|
352 |
|
| Tax withholding for net share settlement |
(188 |
) |
|
(26 |
) |
|
(1,796 |
) |
|
(111 |
) |
| Principal payments under capital lease obligations |
— |
|
|
(5 |
) |
|
— |
|
|
(29 |
) |
| Proceeds from issuance of debt |
30 |
|
|
30 |
|
|
118 |
|
|
117 |
|
| Principal payments on debt |
(30 |
) |
|
(29 |
) |
|
(118 |
) |
|
(128 |
) |
| Net cash (used in) provided by financing activities |
(33 |
) |
|
62 |
|
|
(1,133 |
) |
|
201 |
|
| Net increase (decrease) in cash and cash equivalents |
1,328 |
|
|
3,096 |
|
|
5,410 |
|
|
(1,364 |
) |
| Cash and cash equivalents |
|
|
|
|
|
|
|
| Beginning of period |
14,781 |
|
|
7,603 |
|
|
10,699 |
|
|
12,063 |
|
| End of period |
$ |
16,109 |
|
|
$ |
10,699 |
|
|
$ |
16,109 |
|
|
$ |
10,699 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
