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AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2021 Financial Results

·9 min read
AppFolio, Inc.
AppFolio, Inc.

Revenue grows 32 percent year-over-year in the fourth quarter

SANTA BARBARA, Calif., Feb. 28, 2022 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), a leading provider of cloud business management solutions for the real estate industry, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2021.

“I’m pleased to announce that in the fourth quarter we expanded our number of units served to 6.35 million and revenue from continuing operations grew 32%, capping off a year of 26% growth. This shows that we are driving success with our ongoing multi-year investments,” said Jason Randall, President and CEO, AppFolio. “In 2022, our talented team continues to focus on igniting revenue growth by continuing to make it increasingly easy for our customers to manage their communities in our ever-changing world.”

The Company urges investors to read its Annual Report on Form 10-K for the year ended December 31, 2021, which will also be filed with the Securities and Exchange Commission (the "SEC") today, February 28, 2022, and will be available on AppFolio's website, http://ir.appfolioinc.com.

Financial Outlook

Based on information available as of February 28, 2022, AppFolio's outlook for fiscal year 2022 follows:

  • Full year revenue is expected to be in the range of $447 million to $457 million.

  • Diluted weighted average shares are expected to be approximately 36.5 million for the full year.

Conference Call Information
As previously announced, the Company will host a conference call today, February 28, 2022, at 1:30 p.m. Pacific Time (PT), 4:30 p.m. Eastern Time (ET), to discuss the company’s fourth quarter and year ended 2021 financial results. Participants who wish to dial into the conference call, please dial +1 844-200-6205 (in the U.S.) or +1 929-526-1599 (international) and use passcode 419445.

Following the conference call, a replay of the call will be available until Thursday, March 3, 2022 by dialing +1 866-813-9403 (in the U.S.) or +1 929-458-6194 (international) and using passcode 090322.

To access the webcast during the live call, participants may access https://events.q4inc.com/attendee/414042236. 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, Inc. (NASDAQ: APPF) is a leading provider of cloud business management solutions for the real estate industry. Our solutions enable our customers to digitally transform their businesses, address critical business operations and deliver a better customer experience. Today, our solutions are AppFolio Property Manager and AppFolio Investment Management, which are supplemented with Value Added Services that enhance, automate and streamline business-critical processes and workflows. For more information about AppFolio, visit www.appfolioinc.com.

Investor Relations Contact:
Lori Barker
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 business opportunities, the impact of the Company's strategic actions and initiatives, 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 Annual Report on Form 10-K for the year ended December 31, 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)

December 31,
2021

December 31,
2020

Assets

Current assets

Cash and cash equivalents

$

57,847

$

140,263

Investment securities—current

64,600

28,256

Accounts receivable, net

12,595

10,057

Prepaid expenses and other current assets

23,553

20,777

Total current assets

158,595

199,353

Investment securities—noncurrent

61,076

6,770

Property and equipment, net

30,479

26,439

Operating lease right-of-use assets

41,710

30,561

Capitalized software development costs, net

41,212

35,459

Goodwill

56,147

56,147

Intangible assets, net

11,711

16,357

Deferred income taxes—noncurrent

12,181

Other long-term assets

7,087

6,213

Total assets

$

408,017

$

389,480

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$

1,704

$

1,040

Accrued employee expenses—current

30,065

18,888

Accrued expenses

13,284

14,069

Deferred revenue

2,512

2,262

Income tax payable

136

9,095

Other current liabilities

4,941

4,451

Total current liabilities

52,642

49,805

Accrued employee expenses—noncurrent

583

Operating lease liabilities

55,733

40,146

Deferred income taxes—noncurrent

1,678

13,609

Stockholders’ equity

297,381

285,920

Total liabilities and stockholders’ equity

$

408,017

$

389,480


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)
(in thousands, except per share amounts)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2021

2020

2021

2020 (1)

Revenue

$

95,600

$

72,432

$

359,370

$

310,056

Costs and operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

39,097

29,905

143,944

119,029

Sales and marketing

19,945

15,328

73,200

58,445

Research and product development

19,591

11,735

65,980

48,529

General and administrative

16,308

11,177

57,279

47,480

Depreciation and amortization

8,001

7,039

30,845

26,790

Total costs and operating expenses

102,942

75,184

371,248

300,273

(Loss) income from operations

(7,342

)

(2,752

)

(11,878

)

9,783

Other income, net

12,406

1,138

13,111

188,897

Interest income (expense), net

328

60

501

(1,849

)

Income (loss) before provision for (benefit from) income taxes

5,392

(1,554

)

1,734

196,831

Provision for (benefit from) income taxes

6,723

(1,041

)

706

38,428

Net (loss) income

$

(1,331

)

$

(513

)

$

1,028

$

158,403

Net (loss) income per common share:

Basic

$

(0.04

)

$

(0.01

)

$

0.03

$

4.62

Diluted

$

(0.04

)

$

(0.01

)

$

0.03

$

4.44

Weighted average common shares outstanding:

Basic

34,738

34,332

34,578

34,264

Diluted

34,738

34,332

35,701

35,713

(1) MyCase was divested on September 30, 2020. The results of MyCase have been included in our results of operations through the date of divestiture.


Stock-Based Compensation Expense

(in thousands)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2021

2020

2021

2020 (1)

Costs and operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

$

515

$

408

$

2,024

$

1,506

Sales and marketing

742

346

2,329

1,415

Research and product development

1,935

470

5,457

1,818

General and administrative

2,096

993

5,531

4,286

Total stock-based compensation expense

$

5,288

$

2,217

$

15,341

$

9,025

(1) MyCase was divested on September 30, 2020. The results of MyCase have been included in our results of operations through the date of divestiture.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2021

2020

2021

2020 (1)

Cash from operating activities

Net (loss) income

$

(1,331

)

$

(513

)

$

1,028

$

158,403

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

7,488

6,670

29,032

25,507

Amortization of operating lease right-of-use assets

887

728

3,199

3,701

Deferred income taxes

6,644

6,124

250

29,002

Stock-based compensation, including as amortized

5,801

2,586

17,154

10,308

Gain on sale of business

(22

)

(380

)

(187,658

)

Gain on sale of equity-method investment and recovery of note receivable

(12,767

)

(12,767

)

Other

160

(45

)

249

125

Changes in operating assets and liabilities:

Accounts receivable

(753

)

(553

)

(2,103

)

(2,782

)

Prepaid expenses and other current assets

1,390

(5,035

)

(2,168

)

(5,894

)

Other assets

(78

)

(199

)

(1,259

)

(519

)

Accounts payable

(887

)

(1,598

)

497

(903

)

Accrued employee expenses—current

4,929

880

11,264

2,799

Accrued expenses

(347

)

947

(1,773

)

6,878

Deferred revenue

116

(285

)

(186

)

530

Income tax payable

(50

)

(4,475

)

(8,959

)

9,095

Accrued employee expenses—noncurrent

(1,476

)

583

Operating lease liabilities

(727

)

571

1,268

(564

)

Other liabilities

(67

)

(2,698

)

462

271

Net cash provided by operating activities

8,932

3,083

35,391

48,299

Cash from investing activities

Purchases of available-for-sale investments

(74,174

)

(13,998

)

(241,215

)

(43,877

)

Proceeds from sales of available-for-sale investments

2,769

43,198

16,711

Proceeds from maturities of available-for-sale investments

33,600

14,030

107,354

27,330

Purchases of property, equipment and intangible assets

(2,937

)

(2,487

)

(8,103

)

(19,038

)

Capitalization of software development costs

(6,104

)

(6,345

)

(24,615

)

(26,042

)

Proceeds from sale of business, net of cash divested

402

402

191,427

Proceeds from sale of equity-method investment and recovery of note receivable

12,520

12,520

Net cash (used in) provided by investing activities

(36,693

)

(6,031

)

(110,459

)

146,511

Cash from financing activities

Proceeds from stock option exercises

1,823

420

2,614

822

Tax withholding for net share settlement

(659

)

(1,237

)

(9,962

)

(12,196

)

Payment of contingent consideration

(5,977

)

Proceeds from issuance of debt

50,752

Principal payments on debt

(99,565

)

Purchase of treasury stock

(4,194

)

Net cash provided by (used in) financing activities

1,164

(817

)

(7,348

)

(70,358

)

Net (decrease) increase in cash and cash equivalents and restricted cash

(26,597

)

(3,765

)

(82,416

)

124,452

Cash, cash equivalents and restricted cash

Beginning of period

84,880

144,464

140,699

16,247

End of period

$

58,283

$

140,699

$

58,283

$

140,699

(1) MyCase was divested on September 30, 2020. The results of MyCase have been included in our results of operations through the date of divestiture.