SANTA BARBARA, Calif., Aug. 07, 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 quarter ended June 30, 2017.
AppFolio's operating results for the second quarter 2017 are summarized in the tables accompanying this press release. The Company urges investors to review its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the "SEC") on February 27, 2017, as well as its more detailed second quarter 2017 results set forth on Form 10-Q, which was filed with the SEC on August 7, 2017. Both documents, together with other key SEC filings, are accessible on the Investor Relations page of AppFolio's website, http://ir.appfolioinc.com. The limited information that follows in this press release is not adequate for making an informed investment decision.
Financial Outlook
Based on information available as of August 7, 2017, AppFolio's outlook for fiscal year 2017 follows:
- Full year revenue is expected to be in the range of $138 million to $139 million.
- Diluted weighted average shares are expected to be approximately 35 million for the full year.
Executive Leadership Transition
In a separate press release issued today, the Company announced that Jason Randall will succeed Brian Donahoo as President and Chief Executive Officer, and as member of the Board of Directors of AppFolio following Mr. Donahoo's retirement, effective August 8, 2017.
Conference Call Information
As previously announced, the Company will host a conference call today, August 7, 2017 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 844-239-5286 (Domestic), or 513-268-0783 (International). The conference ID is 55482832. A replay will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until the end of day August 8, 2017, and an archived webcast will be available for 12 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 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) | |||||||
| June 30, 2017 | December 31, 2016 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 7,389 | $ | 10,699 | |||
| Investment securities—current | 24,739 | 15,473 | |||||
| Accounts receivable, net | 4,231 | 2,511 | |||||
| Prepaid expenses and other current assets | 3,748 | 3,537 | |||||
| Total current assets | 40,107 | 32,220 | |||||
| Investment securities—noncurrent | 25,636 | 26,688 | |||||
| Property and equipment, net | 6,674 | 7,077 | |||||
| Capitalized software, net | 16,787 | 15,539 | |||||
| Goodwill | 6,737 | 6,737 | |||||
| Intangible assets, net | 2,405 | 3,105 | |||||
| Other assets | 1,237 | 1,217 | |||||
| Total assets | $ | 99,583 | $ | 92,583 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 398 | $ | 937 | |||
| Accrued employee expenses | 8,053 | 7,550 | |||||
| Accrued expenses | 5,009 | 4,044 | |||||
| Deferred revenue | 8,037 | 7,638 | |||||
| Other current liabilities | 1,547 | 1,192 | |||||
| Total current liabilities | 23,044 | 21,361 | |||||
| Other liabilities | 1,374 | 1,540 | |||||
| Total liabilities | 24,418 | 22,901 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding as of June 30, 2017 and December 31, 2016 | — | — | |||||
| Class A common stock, $0.0001 par value, 250,000 shares authorized as of June 30, 2017 and December 31, 2016; 13,319 and 11,691 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively; | 1 | 1 | |||||
| Class B common stock, $0.0001 par value, 50,000 shares authorized as of June 30, 2017 and December 31, 2016; 20,590 and 22,028 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively; | 3 | 3 | |||||
| Additional paid-in capital | 148,716 | 146,692 | |||||
| Accumulated other comprehensive loss | (49 | ) | (51 | ) | |||
| Accumulated deficit | (73,506 | ) | (76,963 | ) | |||
| Total stockholders’ equity | 75,165 | 69,682 | |||||
| Total liabilities and stockholders’ equity | $ | 99,583 | $ | 92,583 | |||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Revenue | $ | 35,877 | $ | 26,203 | $ | 68,003 | $ | 49,414 | |||||||
| Costs and operating expenses: | |||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization) | 13,701 | 11,212 | 26,694 | 21,742 | |||||||||||
| Sales and marketing | 7,192 | 7,567 | 14,299 | 15,118 | |||||||||||
| Research and product development | 4,002 | 3,024 | 7,631 | 6,067 | |||||||||||
| General and administrative | 5,101 | 4,389 | 9,905 | 7,938 | |||||||||||
| Depreciation and amortization | 3,114 | 2,359 | 6,110 | 4,476 | |||||||||||
| Total costs and operating expenses | 33,110 | 28,551 | 64,639 | 55,341 | |||||||||||
| Income (loss) from operations | 2,767 | (2,348 | ) | 3,364 | (5,927 | ) | |||||||||
| Other (expense) income, net | (60 | ) | 2 | (88 | ) | (22 | ) | ||||||||
| Interest income, net | 120 | 95 | 222 | 119 | |||||||||||
| Income (loss) before provision for income taxes | 2,827 | (2,251 | ) | 3,498 | (5,830 | ) | |||||||||
| Provision for income taxes | 30 | 13 | 41 | 37 | |||||||||||
| Net income (loss) | $ | 2,797 | $ | (2,264 | ) | $ | 3,457 | $ | (5,867 | ) | |||||
| Net income (loss) per common share: | |||||||||||||||
| Basic | 0.08 | (0.07 | ) | 0.10 | (0.18 | ) | |||||||||
| Diluted | 0.08 | (0.07 | ) | 0.10 | (0.18 | ) | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 33,838 | 33,523 | 33,772 | 33,493 | |||||||||||
| Diluted | 34,928 | 33,523 | 34,879 | 33,493 | |||||||||||
| Stock-Based Compensation Expense (in thousands) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Costs and operating expenses: | ||||||||||||||||
| Cost of revenue (exclusive of depreciation and amortization) | $ | 209 | $ | 138 | $ | 338 | $ | 183 | ||||||||
| Sales and marketing | $ | 210 | $ | 130 | $ | 330 | $ | 172 | ||||||||
| Research and product development | $ | 182 | $ | 104 | $ | 298 | $ | 155 | ||||||||
| General and administrative | $ | 1,018 | $ | 720 | $ | 1,750 | $ | 1,045 | ||||||||
| Total stock-based compensation expense | $ | 1,619 | $ | 1,092 | $ | 2,716 | $ | 1,555 | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Cash from operating activities | |||||||||||||||
| Net income (loss) | $ | 2,797 | $ | (2,264 | ) | $ | 3,457 | $ | (5,867 | ) | |||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 3,114 | 2,359 | 6,110 | 4,476 | |||||||||||
| Purchased investment premium, net of amortization | (90 | ) | (50 | ) | (104 | ) | 95 | ||||||||
| Amortization of deferred financing costs | 16 | 16 | 32 | 32 | |||||||||||
| Loss on disposal of property and equipment | 61 | 3 | 89 | 32 | |||||||||||
| Stock-based compensation | 1,619 | 1,092 | 2,716 | 1,555 | |||||||||||
| Lease abandonment | — | (31 | ) | — | 60 | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | (418 | ) | (402 | ) | (1,721 | ) | (996 | ) | |||||||
| Prepaid expenses and other current assets | (614 | ) | 634 | (212 | ) | (647 | ) | ||||||||
| Other assets | (56 | ) | 18 | (51 | ) | (92 | ) | ||||||||
| Accounts payable | (300 | ) | 82 | (319 | ) | (571 | ) | ||||||||
| Accrued employee expenses | 2,238 | 812 | 576 | 906 | |||||||||||
| Accrued expenses | 321 | (236 | ) | 794 | 751 | ||||||||||
| Deferred revenue | (660 | ) | 443 | 399 | 1,148 | ||||||||||
| Other liabilities | 31 | 637 | 100 | 1,495 | |||||||||||
| Net cash provided by operating activities | 8,059 | 3,113 | 11,866 | 2,377 | |||||||||||
| Cash from investing activities | |||||||||||||||
| Purchases of property and equipment | (445 | ) | (1,270 | ) | (837 | ) | (3,161 | ) | |||||||
| Additions to capitalized software | (2,280 | ) | (2,980 | ) | (5,271 | ) | (5,159 | ) | |||||||
| Purchases of investment securities | (9,060 | ) | (7,300 | ) | (15,597 | ) | (16,685 | ) | |||||||
| Sales of investment securities | — | 3,512 | — | 10,017 | |||||||||||
| Maturities of investment securities | 3,044 | 4,557 | 7,489 | 11,387 | |||||||||||
| Purchases of intangible assets | (1 | ) | — | (1 | ) | — | |||||||||
| Net cash used in investing activities | (8,742 | ) | (3,481 | ) | (14,217 | ) | (3,601 | ) | |||||||
| Cash from financing activities | |||||||||||||||
| Proceeds from stock option exercises | 241 | 73 | 386 | 153 | |||||||||||
| Tax withholding for net share settlement | (138 | ) | (1,345 | ) | — | ||||||||||
| Principal payments under capital lease obligations | — | (8 | ) | — | (15 | ) | |||||||||
| Proceeds from issuance of debt | 30 | 28 | 59 | 57 | |||||||||||
| Principal payments on debt | (30 | ) | (30 | ) | (59 | ) | (71 | ) | |||||||
| Net cash provided by (used in) financing activities | 103 | 63 | (959 | ) | 124 | ||||||||||
| Net decrease in cash and cash equivalents | (580 | ) | (305 | ) | (3,310 | ) | (1,100 | ) | |||||||
| Cash and cash equivalents | |||||||||||||||
| Beginning of period | 7,969 | 11,268 | 10,699 | 12,063 | |||||||||||
| End of period | 7,389 | 10,963 | 7,389 | 10,963 | |||||||||||
