AppFolio, Inc. Announces Third Quarter 2021 Financial Results - Form 8-K
November 08, 2021 at 04:10 pm EST
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AppFolio, Inc. Announces Third Quarter 2021 Financial Results
SANTA BARBARA, Calif., November 8, 2021 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a leading provider of cloud-based business software solutions, services, and data analytics to the real estate industry, today announced its financial results for the third quarter ended September 30, 2021.
AppFolio's operating results for the third quarter of 2021 are summarized in the tables accompanying this press release. The Company nevertheless urges investors to read its Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the "SEC") on March 1, 2021, as well as its more detailed third quarter 2021 results that will be included in the Company's Quarterly Report on Form 10-Q, which will be filed with the SEC today. These periodic report filings, together with other documents the Company files with the SEC from time to time, will be 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 November 8, 2021, AppFolio's outlook for fiscal year 2021 follows:
•Full year revenue is expected to be in the range of $355 million to $357 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, November 8, 2021, at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, to discuss its financial results. Participants who wish to dial into the conference call, please register in advance at https://www.incommglobalevents.com/registration/q4inc/9012/appfolio-inc-announces-third-quarter-2021-financial-results. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. Registration will be open through the start of the live call.
Following the conference call, a replay will be available at 866.813.9403 (domestic) or 929.458.6194 (international). The passcode is 367726. To access the webcast during the live call, participants may access https://events.q4inc.com/attendee/783445260 and use passcode 367726. An archived webcast of this conference call will also be available on AppFolio's Investor Relations website at http://ir.appfolioinc.com.
About AppFolio, Inc.
AppFolio provides innovative software, services and data analytics to the real estate industry. Our cloud-based business management solutions are designed to enable our customers to digitally transform their businesses, address critical business operations and enable exceptional customer service. Today our core solutions include AppFolio Property Manager, AppFolio Property Manager PLUS, and AppFolio Investment Management. In addition, the Company offers a variety of Value+ services that are designed to enhance, automate and streamline essential processes and workflows for our customers. AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at www.appfolioinc.com.
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," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "seeks," "should," "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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, which will be filed with the SEC today, 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)
September 30,
2021
December 31,
2020
Assets
Current assets
Cash and cash equivalents
$
84,444
$
140,263
Investment securities-current
76,034
28,256
Accounts receivable, net
12,184
10,057
Prepaid expenses and other current assets
24,714
20,777
Total current assets
197,376
199,353
Investment securities-noncurrent
9,287
6,770
Property and equipment, net
28,177
26,439
Operating lease right-of-use assets
42,597
30,561
Capitalized software development costs, net
40,711
35,459
Goodwill
56,147
56,147
Intangible assets, net
12,864
16,357
Deferred income taxes-noncurrent
12,834
12,181
Other long-term assets
7,394
6,213
Total assets
$
407,387
$
389,480
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
2,493
$
1,040
Accrued employee expenses-current
25,785
18,888
Accrued expenses
13,090
14,069
Deferred revenue
2,738
2,262
Income tax payable
186
9,095
Other current liabilities
4,910
4,451
Total current liabilities
49,202
49,805
Accrued employee expenses-noncurrent
2,059
-
Operating lease liabilities
56,559
40,146
Deferred income taxes-noncurrent
7,868
13,609
Total liabilities
115,688
103,560
Stockholders' equity:
Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding as of September 30, 2021 and December 31, 2020
-
-
Class A common stock, $0.0001 par value, 250,000 shares authorized as of September 30, 2021 and December 31, 2020; 19,610 and 19,148 shares issued as of September 30, 2021 and December 31, 2020, respectively; 19,191 and 18,729 shares outstanding as of September 30, 2020 and December 31, 2020, respectively
2
2
Class B common stock, $0.0001 par value, 50,000 shares authorized as of September 30, 2021 and December 31, 2020; 15,453 and 15,659 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively
2
2
Additional paid-in capital
164,740
161,247
Accumulated other comprehensive (loss) income
(17)
56
Treasury stock, at cost, 419 shares of Class A common stock as of September 30, 2021 and December 31, 2020
(25,756)
(25,756)
Retained earnings
152,728
150,369
Total stockholders' equity
291,699
285,920
Total liabilities and stockholders' equity
$
407,387
$
389,480
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Revenue
$
95,809
$
84,086
$
263,770
$
237,624
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)
38,730
32,752
104,847
89,124
Sales and marketing
19,362
14,894
53,255
43,117
Research and product development
16,500
13,454
46,389
36,794
General and administrative
13,404
12,946
40,971
36,303
Depreciation and amortization
7,826
6,680
22,844
19,751
Total costs and operating expenses
95,822
80,726
268,306
225,089
(Loss) income from operations
(13)
3,360
(4,536)
12,535
Other (loss) income, net
(353)
187,747
705
187,759
Interest income (expense), net
65
(853)
173
(1,909)
(Loss) income before (benefit from) provision for income taxes
(301)
190,254
(3,658)
198,385
(Benefit from) provision for income taxes
(160)
52,578
(6,017)
39,469
Net (loss) income
$
(141)
$
137,676
$
2,359
$
158,916
Net (loss) income per common share:
Basic
$
-
$
4.01
$
0.07
$
4.64
Diluted
$
-
$
3.86
$
0.07
$
4.46
Weighted average common shares outstanding:
Basic
34,614
34,296
34,525
34,241
Diluted
34,614
35,665
35,695
35,662
Stock-Based Compensation Expense
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)
$
575
$
452
$
1,509
$
1,098
Sales and marketing
738
367
1,587
1,069
Research and product development
1,451
474
3,522
1,348
General and administrative
1,299
1,803
3,435
3,293
Total stock-based compensation expense
$
4,063
$
3,096
$
10,053
$
6,808
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Cash from operating activities
Net income
$
(141)
$
137,676
$
2,359
$
158,916
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
7,826
6,680
22,844
19,751
Amortization of operating lease right-of-use assets
913
902
2,312
2,973
Deferred income taxes
(308)
36,015
(6,394)
22,878
Stock-based compensation
4,063
3,096
10,053
6,808
Gain on sale of business
(21)
(187,636)
(380)
(187,636)
Other
309
200
89
170
Changes in operating assets and liabilities:
Accounts receivable
2,657
2,907
(1,350)
(2,229)
Prepaid expenses and other current assets
(1,387)
(567)
(3,558)
(859)
Other assets
(199)
(213)
(1,181)
(320)
Accounts payable
83
502
1,384
695
Accrued employee expenses-current
(1,303)
1,202
6,335
1,919
Accrued expenses
1,621
1,397
(1,426)
5,931
Deferred revenue
(335)
283
(302)
815
Income tax payable
120
-
(8,909)
-
Accrued employee expenses-noncurrent
1,091
-
2,059
-
Operating lease liabilities
310
(1,043)
1,995
(1,135)
Other liabilities
499
16,439
529
16,539
Net cash provided by operating activities
15,798
17,840
26,459
45,216
Cash from investing activities
Purchases of available-for-sale investments
(18,748)
(16,490)
(167,041)
(29,879)
Proceeds from sales of available-for-sale investments
1,000
-
43,198
13,942
Proceeds from maturities of available-for-sale investments
47,004
5,550
73,754
13,300
Purchases of property, equipment and intangible assets
(2,362)
(2,245)
(5,166)
(16,551)
Capitalization of software development costs
(6,600)
(6,988)
(18,511)
(19,697)
Proceeds from sale of business, net of cash divested
-
191,427
-
191,427
Net cash provided by (used in) investing activities
20,294
171,254
(73,766)
152,542
Cash from financing activities
Proceeds from stock option exercises
145
73
791
402
Tax withholding for net share settlement
(403)
(1,269)
(9,303)
(10,959)
Payment of contingent consideration
-
-
-
(5,977)
Proceeds from issuance of debt
-
562
-
50,752
Principal payments on debt
-
(97,747)
-
(99,565)
Purchase of treasury stock
-
-
-
(4,194)
Net cash used in financing activities
(258)
(98,381)
(8,512)
(69,541)
Net increase (decrease) in cash and cash equivalents and restricted cash
35,834
90,713
(55,819)
128,217
Cash, cash equivalents and restricted cash
Beginning of period
49,046
53,751
140,699
16,247
End of period
$
84,880
$
144,464
$
84,880
$
144,464
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AppFolio Inc. published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 November 2021 21:08:02 UTC.
AppFolio, Inc. is a provider of cloud business management solutions for the real estate industry. Its solutions are designed to enable its customers to digitally transform their businesses and address critical operations. AppFolio solutions are designed to meet that need in the real estate industry. It helps its customers navigate an increasingly interconnected and growing network of stakeholders in their business ecosystems, including property owners, real estate investment managers, rental prospects, residents, and vendors, and provides key functionality related to critical transactions across the real estate lifecycle, including screening potential tenants, sending and receiving payments and providing insurance-related risk mitigation services. Its solutions include AppFolio, AppFolio Property Manager Core, AppFolio Property Manager Plus and AppFolio Property Manager Max. It also offers value-added services: electronic payment services, tenant screening services and risk mitigation.