AppFolio, Inc. Announces First Quarter 2019 Financial Results

May 2, 2019

SANTA BARBARA, Calif., May 02, 2019 (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 March 31, 2019.

AppFolio's operating results for the first quarter of 2019 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 February 28, 2019, as well as its more detailed first quarter 2019 results that will be included in the Company's Quarterly Report on Form 10-Q, which will be filed with the SEC on May 2, 2019.  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, 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 May 2, 2019, AppFolio's outlook for fiscal year 2019 follows:

  • Full year revenue is expected to be in the range of $250 million to $255 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, May 2, 2019, 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.

The conference call can be accessed by dialing 866.393.4306 and entering ID # 8096079. International callers may dial 734.385.2616. A replay of the conference call will be available at 855.859.2056 and 404.537.3406 for international callers. A live and recorded webcast of the conference call will be available at

About AppFolio, Inc.
AppFolio offers industry-specific, cloud-based business software solutions, services, and data analytics to the real estate and legal markets. Today our products include real estate software (AppFolio Property Manager, including AppFolio Property Manager PLUS and recently launched AppFolio Investment Management) and legal practice management software (MyCase). AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at

Investor Relations Contact:  
Erica Abrams, 805.364.6093

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 Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, which will be filed with the SEC on May 2, 2019, 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.

(in thousands, except par values)

    March 31,
  December 31,
Current assets        
Cash and cash equivalents   $ 16,783     $ 74,076  
Investment securities—current   17,712     16,631  
Accounts receivable, net   7,966     5,516  
Prepaid expenses and other current assets   15,086     11,775  
Total current assets   57,547     107,998  
Investment securities—noncurrent   6,300     11,256  
Property and equipment, net   7,169     6,871  
Operating lease right-of-use assets   16,004      
Capitalized software, net   22,396     20,485  
Goodwill   57,496     15,548  
Intangible assets, net   26,644     5,895  
Other long-term assets   7,026     7,688  
Total assets   $ 200,582     $ 175,741  
Liabilities and Stockholders’ Equity        
Current liabilities        
Accounts payable   $ 1,557     $ 1,481  
Accrued employee expenses   10,795     12,377  
Accrued expenses   9,450     8,281  
Deferred revenue   4,045     3,414  
Other current liabilities   11,099     1,447  
Long-term debt, net—current portion   1,213     1,213  
Total current liabilities   38,159     28,213  
Operating lease liabilities   19,064      
Long-term debt, net   48,290     48,602  
Other long-term liabilities   14     7,080  
Total liabilities   105,527     83,895  
Stockholders’ equity:        
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding
at March 31, 2019 and December 31, 2018
Class A common stock, $0.0001 par value, 250,000 shares authorized at March 31, 2019 and December 31, 2018;
issued - 16,269 and 16,159, shares at March 31, 2019 and December 31, 2018; outstanding - 15,899 and 15,789
shares at March 31, 2019 and December 31, 2018, respectively;
  2     2  
Class B common stock, $0.0001 par value, 50,000 shares authorized at March 31, 2019 and December 31, 2018;
18,071 and 18,109 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively;
  2     2  
Additional paid-in capital   157,253     157,898  
Accumulated other comprehensive loss   (49)     (178)  
Treasury stock, at cost, 370 Class A shares at March 31, 2019 and December 31, 2018   (21,562)     (21,562)  
Accumulated deficit   (40,591)     (44,316)  
Total stockholders’ equity   95,055     91,846  
Total liabilities and stockholders’ equity   $ 200,582     $ 175,741  

(in thousands, except per share amounts)

  Three Months Ended
March 31,
  2019   2018
Revenue $ 57,091     $ 42,340  
Costs and operating expenses:      
Cost of revenue (exclusive of depreciation and amortization) 24,181     16,613  
Sales and marketing 11,219     7,405  
Research and product development 8,481     5,333  
General and administrative 8,192     5,316  
Depreciation and amortization 5,076     3,500  
Total costs and operating expenses 57,149     38,167  
Income (loss) from operations (58)     4,173  
Other expense, net (1)     (3)  
Interest income (expense), net (497)     176  
Income (loss) before provision for (benefit from) income taxes (556)     4,346  
Provision for (benefit from) income taxes (4,281)     26  
Net income $ 3,725     $ 4,320  
Net income per common share:      
Basic $ 0.11     $ 0.13  
Diluted $ 0.11     $ 0.12  
Weighted average common shares outstanding:      
Basic 33,913     34,070  
Diluted 35,342     35,300  

Stock-Based Compensation Expense
(in thousands)

  Three Months Ended
March 31,
  2019   2018
Costs and operating expenses:      
Cost of revenue (exclusive of depreciation and amortization) $ 324     $ 220  
Sales and marketing 248     210  
Research and product development 308     225  
General and administrative 672     663  
Total stock-based compensation expense $ 1,552     $ 1,318  


(in thousands)
  Three Months Ended
March 31,
  2019   2018
Cash from operating activities      
Net income $ 3,725     $ 4,320  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 5,076     3,500  
Stock-based compensation 1,552     1,318  
Deferred income taxes (4,281)      
Other 27     79  
Changes in operating assets and liabilities:      
Accounts receivable (2,051)     (1,148)  
Prepaid expenses and other current assets (3,340)     441  
Other long-term assets 1,365     (766)  
Accounts payable 100     415  
Accrued employee expenses (2,867)     (3,842)  
Accrued expenses 1,580     611  
Deferred revenue 268     (1,334)  
Other long-term liabilities (859)     (252)  
     Net cash provided by operating activities 295     3,342  
Cash from investing activities      
Purchases of property and equipment (1,030)     (263)  
Additions to capitalized software (4,658)     (2,936)  
Purchases of investment securities     (15,573)  
Sales of investment securities 1,750     5  
Maturities of investment securities 2,250     8,296  
Acquisition, net of cash acquired (54,004)      
     Net cash used in investing activities (55,692)     (10,471)  
Cash from financing activities      
Proceeds from stock option exercises 90     470  
Tax withholding for net share settlement (1,315)     (901)  
Proceeds from issuance of debt 597     32  
Principal payments on debt (909)     (32)  
Payment of debt issuance costs (360)      
     Net cash used in financing activities (1,897)     (431)  
     Net decrease in cash and cash equivalents and restricted cash (57,294)     (7,560)  
Cash, cash equivalents and restricted cash      
Beginning of period 74,506     16,537  
End of period $ 17,212     $ 8,977  


Source: AppFolio, Inc.

Print Page
Email Alerts
RSS Feeds
Information Request