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.

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