SANTA BARBARA,what is the best way to clean invisalign retainers Calif., May 04, 2020 (GLOBE NEWSWIRE) -- AppFolio, Inc. ( APPF ) ("AppFolio" or the "Company"), a leading provider of cloud-based business software solutions, services, and data analytics to the real estate and legal markets, today announced its financial results for the first quarter ended March 31, 2020. AppFolio's operating results for the first quarter of 2020 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 2, 2020, as well as its more detailed first quarter 2020 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 While we are encouraged by the results of our first quarter, and the more recent demand for our products and services, we are unable to predict, with any reasonable degree of certainty, the full extent of the potential impact of the COVID-19 pandemic on our business and financial results. As a result, we are withdrawing our previously communicated full year revenue guidance for fiscal year 2020. 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 4, 2020, 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 833.502.0474 and entering ID #1898165. International callers may dial 236.714.2184. A replay of the conference call will be available at 800.585.8367, and at 416.621.4642 for international callers. A live and recorded webcast of the conference call will be available at http://ir.appfolioinc.com. 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, AppFolio Property Manager PLUS and AppFolio Investment Management) and legal practice management software (MyCase). AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at www.appfolioinc.com. Investor Relations Contact 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 business opportunities, the impact of the Company's strategic actions and initiatives, the impact of the COVID-19 pandemic on the Company's business, and the timing of providing updated financial guidance. 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, 2020, 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) March 31, 2020 December 31, 2019 Assets Current assets Cash and cash equivalents $ 56,779 $ 15,813 Investment securities—current 7,952 22,876 Accounts receivable, net 9,617 7,562 Prepaid expenses and other current assets 18,362 15,540 Total current assets 92,710 61,791 Investment securities—noncurrent 6,676 12,089 Property and equipment, net 22,536 14,744 Operating lease right-of-use assets 26,750 27,803 Capitalized software, net 32,587 30,023 Goodwill 58,425 58,425 Intangible assets, net 20,121 21,377 Deferred taxes 27,212 27,574 Other long-term assets 6,410 6,276 Total assets $ 293,427 $ 260,102 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 2,509 $ 1,927 Accrued employee expenses 11,833 17,758 Accrued expenses 11,419 10,833 Deferred revenue 5,732 4,600 Other current liabilities 5,636 11,139 Term loan, net—current portion 1,520 1,208 Total current liabilities 38,649 47,465 Operating lease liabilities 34,143 33,312 Revolving facility 49,000 — Term loan, net 46,760 47,375 Total liabilities 168,552 128,152 Stockholders’ equity: Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding at March 31, 2020 and December 31, 2019 — — Class A common stock, $0.0001 par value, 250,000 shares authorized at March 31, 2020 and December 31, 2019; 17,089 and 16,923 shares issued at March 31, 2020 and December 31, 2019, respectively; 16,670 and 16,552 shares outstanding at March 31, 2020 and December 31, 2019, respectively 2 2 Class B common stock, $0.0001 par value, 50,000 shares authorized at March 31, 2020 and December 31, 2019; 17,536 and 17,594 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively 2 2 Additional paid-in capital 156,513 161,509 Accumulated other comprehensive income 165 33 Treasury stock, at cost, 419 and 371 shares of Class A common stock at March 31, 2020 and December 31, 2019, respectively (25,756 ) (21,562 ) Accumulated deficit (6,051 ) (8,034 ) Total stockholders’ equity 124,875 131,950 Total liabilities and stockholders’ equity $ 293,427 $ 260,102 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) Three Months Ended March 31, 2020 2019 Revenue $ 72,495 $ 57,091 Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization) 28,961 24,181 Sales and marketing 14,506 11,219 Research and product development 11,212 8,481 General and administrative 8,572 8,192 Depreciation and amortization 6,414 5,076 Total costs and operating expenses 69,665 57,149 Income (loss) from operations 2,830 (58 ) Other income (expense), net 22 (1 ) Interest expense, net (494 ) (497 ) Income (loss) before provision for (benefit from) income taxes 2,358 (556 ) Provision for (benefit from) income taxes 375 (4,281 ) Net income $ 1,983 $ 3,725 Net income per common share: Basic $ 0.06 $ 0.11 Diluted $ 0.06 $ 0.11 Weighted average common shares outstanding: Basic 34,175 33,913 Diluted 35,681 35,342 Stock-Based Compensation Expense (in thousands) Three Months Ended March 31, 2020 2019 Costs and operating expenses: Cost of revenue (exclusive of depreciation and amortization) $ 126 $ 324 Sales and marketing 225 248 Research and product development 294 308 General and administrative 314 672 Total stock-based compensation expense $ 959 $ 1,552 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) Three Months Ended March 31, 2020 2019 Cash from operating activities Net income $ 1,983 $ 3,725 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,414 5,076 Amortization of operating lease right-of-use assets 1,053 942 Deferred income taxes 362 (4,281 ) Stock-based compensation 959 1,552 Other (38 ) 27 Changes in operating assets and liabilities: Accounts receivable (1,616 ) (2,051 ) Prepaid expenses and other current assets (2,822 ) (3,577 ) Other assets (148 ) 660 Accounts payable (362 ) 100 Accrued employee expenses (5,427 ) (2,867 ) Accrued expenses 726 1,580 Deferred revenue 693 268 Operating lease liabilities 784 (735 ) Other liabilities 522 (124 ) Net cash provided by operating activities 3,083 295 Cash from investing activities Purchases of available-for-sale investments (649 ) — Proceeds from sales of available-for-sale investments 13,942 1,750 Proceeds from maturities of available-for-sale investments 7,250 2,250 Purchases of property, equipment and intangible assets (7,992 ) (1,030 ) Additions to capitalized software (6,822 ) (4,658 ) Cash paid in business acquisition, net of cash acquired — (54,004 ) Net cash provided by (used in) investing activities 5,729 (55,692 ) Cash from financing activities Proceeds from stock option exercises 97 90 Tax withholding for net share settlement (6,458 ) (1,315 ) Payment of contingent consideration (5,977 ) — Proceeds from issuance of debt 49,437 597 Principal payments on debt (749 ) (909 ) Payment of debt issuance costs — (360 ) Purchase of treasury stock (4,194 ) — Net cash provided by (used in) financing activities 32,156 (1,897 ) Net increase (decrease) in cash and cash equivalents and restricted cash 40,968 (57,294 ) Cash, cash equivalents and restricted cash Beginning of period 16,247 74,506 End of period $ 57,215 $ 17,212 View comments |