SANTA BARBARA, Calif., Feb. 28, 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 fourth quarter and fiscal year ended December 31, 2018.

AppFolio's operating results for the fourth quarter and fiscal year 2018 are summarized in the tables accompanying this press release. The Company nevertheless urges investors to read its full Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission (the "SEC") on February 28, 2019, and is available on AppFolio's website at The limited information that follows is not adequate for making an informed investment judgment.

Financial Outlook

Based on information available as of February 28, 2019, the Company's current 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, February 28, 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.

A live webcast of the call will be available at, and it may also be accessed by dialing 866-393-4306 (Domestic), or 734-385-2616 (International). The conference ID is 5763969. A replay of the call will be available at 855-859-2056 (Domestic) and 404-537-3406 (International) until the end of day March 4, 2019, and an archived webcast will be available for twelve months on the Company's website.

About AppFolio 

AppFolio's mission is to revolutionize vertical industry businesses by providing great software and service. Our cloud-based solutions serve customers in the real estate and legal markets. Today our products include property management software (AppFolio Property Manager, including the new AppFolio Property Manager Plus) and legal practice management software (MyCase). AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at

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 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 Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on February 28, 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)
 December 31,
 2018 2017
Current assets   
Cash and cash equivalents$74,076  $16,109 
Investment securities—current16,631  29,800 
Accounts receivable, net5,516  3,387 
Prepaid expenses and other current assets11,775  4,546 
Total current assets107,998  53,842 
Investment securities—noncurrent11,256  22,401 
Property and equipment, net6,871  6,696 
Capitalized software, net20,485  17,609 
Goodwill15,548  6,737 
Intangible assets, net5,895  1,725 
Other assets7,688  1,238 
Total assets$175,741  $110,248 
Liabilities and Stockholders’ Equity   
Current liabilities   
Accounts payable$1,481  $610 
Accrued employee expenses12,377  10,710 
Accrued expenses8,281  4,289 
Deferred revenue3,414  7,080 
Other current liabilities1,447  1,223 
Long-term debt, net—current portion1,213   
Total current liabilities28,213  23,912 
Long-term debt, net48,602   
Long-term deferred rent and other liabilities7,080  1,257 
Total liabilities83,895  25,169 
Commitments and contingencies   
Stockholders’ equity:   
Preferred stock, $0.0001 par value, 25,000 authorized and no shares issued and outstanding at December 31, 2018 and December 31, 2017   
Class A common stock, $0.0001 par value, 250,000 shares authorized at December 31, 2018 and December 31, 2017; issued - 16,159 and 14,879, shares at December 31, 2018 and December 31, 2017; outstanding - 15,789 and 14,879 shares at December 31, 2018 and December 31, 2017, respectively;2  1 
Class B common stock, $0.0001 par value, 50,000 shares authorized at December 31, 2018 and December 31, 2017; 18,109 and 19,102 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively;2  3 
Additional paid-in capital157,898  152,531 
Accumulated other comprehensive loss(178) (209)
Treasury stock, at cost, 370,751 Class A shares(21,562)  
Accumulated deficit(44,316) (67,247)
Total stockholders’ equity91,846  85,079 
Total liabilities and stockholders’ equity$175,741  $110,248 


(in thousands, except per share amounts)
 Three Months Ended
December 31,
 Twelve Months Ended
December 31,
 2018 2017 2018 2017
Revenue$50,365  $37,897  $190,071  $143,803 
Costs and operating expenses:       
Cost of revenue (exclusive of depreciation and amortization)19,925  14,536  73,549  55,283 
Sales and marketing9,577  7,153  33,288  28,709 
Research and product development6,588  4,580  24,111  16,578 
General and administrative7,786  5,889  24,891  21,199 
Depreciation and amortization3,792  3,352  14,576  12,699 
Total costs and operating expenses47,668  35,510  170,415  134,468 
Income from operations2,697  2,387  19,656  9,335 
Other (expense), net(36) (3) (56) (96)
Interest income, net156  158  787  535 
Income before provision for income taxes2,817  2,542  20,387  9,774 
Provision for income taxes168  (35) 420  58 
Net income$2,649  $2,577  $19,967  $9,716 
Net income per common share:       
Basic0.08  0.08  0.59  0.29 
Diluted0.07  0.07  0.56  0.28 
Weighted average common shares outstanding:       
Basic34,050  33,944  34,128  33,849 
Diluted35,425  35,310  35,562  35,151 

Stock-Based Compensation Expense
(in thousands)
 Three Months Ended
December 31,
 Twelve Months Ended
December 31,
 2018 2017 2018 2017
Costs and operating expenses:       
Cost of revenue (exclusive of depreciation and amortization)$351  $198  $1,103  $725 
Sales and marketing326  207  1,034  723 
Research and product development349  186  1,079  657 
General and administrative892  1,201  3,121  3,991 
Total stock-based compensation expense$1,918  $1,792  $6,337  $6,096 

(in thousands)
 Three Months Ended
December 31,
 Twelve Months Ended
December 31,
 2018 2017 2018 2017
Cash from operating activities       
Net income$2,649  $2,577  $19,967  $9,716 
Adjustments to reconcile net income to net cash provided by operating activities:       
Depreciation and amortization3,792  3,352  14,576  12,699 
Purchased investment premium, net of amortization43  (17) 142  (39)
Amortization of deferred financing costs12  15  60  63 
Loss on disposal of property, equipment, and intangibles4  3  22  97 
Stock-based compensation1,918  1,792  6,337  6,096 
Changes in operating assets and liabilities:       
Accounts receivable557  32  (908) (876)
Prepaid expenses and other current assets(859) (153) (6,073) (1,009)
Other assets(756) (30) (4,447) (84)
Accounts payable137  (469) 614  (100)
Accrued employee expenses4,443  2,397  1,219  3,243 
Accrued expenses(116) (1,442) 3,281  271 
Deferred revenue(342) (428) (4,589) (558)
Other liabilities184  186  6,067  (148)
Net cash provided by operating activities11,666  7,815  36,268  29,371 
Cash from investing activities       
Purchases of property and equipment(362) (533) (2,102) (2,213)
Additions to capitalized software(3,307) (2,370) (12,304) (10,455)
Purchases of investment securities(732) (9,051) (29,516) (26,648)
Sales of investment securities20,199    20,900  15 
Maturities of investment securities4,342  5,500  32,819  16,474 
Cash paid in business acquisition    (14,441)  
Purchases of intangible assets      (1)
Net cash used in investing activities20,140  (6,454) (4,644) (22,828)
Cash from financing activities       
Proceeds from stock option exercises322  155  1,035  663 
Tax withholding for net share settlement(233) (188) (3,127) (1,796)
Purchase of treasury stock(21,562)   (21,562)  
Proceeds from issuance of debt50,045  30  50,138  118 
Principal payments on debt(45) (30) (138) (118)
Net cash provided by (used in) financing activities28,527  (33) 26,346  (1,133)
Net increase (decrease) in cash and cash equivalents60,333  1,328  57,970  5,410 
Cash, cash equivalents and restricted cash       
Beginning of period14,173  15,208  16,536  11,126 
End of period$74,506  $16,536  $74,506  $16,536