AppFolio, Inc. Broadcasts Fourth Quarter and Fiscal 12 months 2022 Monetary Outcomes

Income grows 31% in 2022

SANTA BARBARA, Calif., Jan. 26, 2023 (GLOBE NEWSWIRE) — AppFolio, Inc. (NASDAQ: APPF) (“AppFolio” or the “Firm”), a number one supplier of cloud enterprise administration options for the actual property trade, at present introduced its monetary outcomes for the fourth quarter and financial yr ended December 31, 2022.

“AppFolio continued to point out resilience within the altering actual property trade with 2022 income progress of 31%. Not solely did we efficiently develop our funds enterprise, we added new bigger clients, present clients expanded their adoption of our worth added providers and we elevated penetration of AppFolio Property Supervisor Plus,” mentioned Jason Randall, President and CEO, AppFolio. “In 2023 we are going to proceed to concentrate on increasing our modern services and products and trusted buyer partnerships. Our robust workforce and tradition will proceed to concentrate on driving efficiencies and operational excellence as we introduce new methods to assist our clients handle and scale their more and more complicated companies.”

Monetary Highlights

• Income: Whole income was $124.1 million within the fourth quarter of 2022, a 30% enhance from $95.6 million within the fourth quarter of 2021. Whole income for 2022 grew 31% to $471.9 million from $359.4 million for 2021.

• Models Served: Whole models on the AppFolio Property Supervisor platform elevated to roughly 7.3 million within the fourth quarter of 2022 from roughly 6.3 million on the finish of the fourth quarter of 2021.

• Loss from Operations: GAAP loss from operations within the fourth quarter of 2022 was $20.0 million, or 16.1% of income, in comparison with $7.3 million, or 7.7% of income, in the identical quarter of 2021. Non-GAAP loss from operations within the fourth quarter of 2022 was $3.4 million, or 2.7% of income, in comparison with Non-GAAP loss from operations of $0.4 million, or 0.4% of income, within the fourth quarter of 2021.

• Money: Money, money equivalents, and funding securities have been $185.2 million as of December 31, 2022, in comparison with $183.5 million as of December 31, 2021. Non-GAAP free money movement was $1.3 million, or 1.0% of income, within the fourth quarter of 2022, in comparison with $(2.0) million, or (2.1)% of income, in the identical quarter of 2021. Whole non-GAAP free money movement for 2022 was $4.1 million, or 0.9% of income in comparison with $12.8 million, or 3.6% of income in 2021.

Monetary Outlook
Primarily based on data accessible as of January 26, 2023, AppFolio’s outlook for fiscal yr 2023 follows:

• Full yr income is anticipated to be within the vary of $565 million to $575 million.

• Full yr non-GAAP working margin as a share of income is anticipated to be roughly breakeven.

• Full yr non-GAAP free money movement margin as a share of income is anticipated to be within the vary of two% to three%.

• Weighted common shares excellent are anticipated to be roughly 35 million for the total yr.

Convention Name Info
As beforehand introduced, the Firm will host a convention name at present, January 26, 2023, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Jap Time (ET), to debate the corporate’s fourth quarter and yr ended 2022 monetary outcomes. A reside webcast of the decision shall be accessible at: https://edge.media-server.com/mmc/p/j4kdio9f. To entry the decision by cellphone, please go to the next hyperlink: https://register.vevent.com/register/BI1a3bcda7808844f6982d79643cf7929a, and you may be supplied with dial in particulars. A replay of the webcast will even be accessible for a restricted time on AppFolio’s Investor Relations web site at https://ir.appfolioinc.com/news-events/events.

The Firm additionally supplies bulletins concerning its monetary outcomes and different issues, together with SEC filings, investor occasions, and press releases, on its Investor Relations web site at https://ir.appfolioinc.com/, as a method of revealing materials nonpublic data and for complying with AppFolio’s disclosure obligations beneath Regulation FD.

About AppFolio, Inc.
AppFolio is a number one supplier of cloud enterprise administration options for the actual property trade. Our options allow our clients to digitally remodel their companies, tackle essential enterprise operations and ship a greater buyer expertise. For extra details about AppFolio, go to www.appfolioinc.com.

Investor Relations Contact:
Lori Barker
[email protected]

Use of Non-GAAP Monetary Measures
Reconciliations of non-GAAP monetary measures to AppFolio’s monetary outcomes as decided in accordance with GAAP are included on the finish of this press launch following the accompanying monetary knowledge. For an outline of those non-GAAP monetary measures, together with the explanations administration makes use of every measure, please see the part of the tables titled “Assertion Concerning the Use of Non-GAAP Monetary Measures.”

Ahead-Wanting Statements
This press launch accommodates “forward-looking statements” throughout the that means of Part 27A of the Securities Act of 1933, as amended, and Part 21E of the Securities Change Act of 1934, as amended, which statements are topic to appreciable dangers and uncertainties. Ahead-looking statements embrace all statements that aren’t statements of historic truth contained on this press launch, and will be recognized by phrases reminiscent of “anticipates,” “believes,” “may,” “estimates,” “expects,” “intends,” “could,” “plans,” “potential,” “predicts, “tasks,” “seeks,” “ought to,” “will,” “would” or comparable expressions and the negatives of these expressions. Specifically, forward-looking statements contained on this press launch relate to future working outcomes and monetary place, together with the Firm’s fiscal yr 2023 monetary outlook, anticipated future bills and investments, the Firm’s enterprise alternatives, and the influence of the Firm’s strategic actions and initiatives.

Ahead-looking statements characterize AppFolio’s present beliefs and assumptions based mostly on data at present accessible. Ahead-looking statements contain quite a few recognized and unknown dangers, uncertainties and different elements that will trigger the Firm’s precise outcomes, efficiency or achievements to be materially completely different from any future outcomes, efficiency or achievements expressed or implied by the forward-looking statements. Among the dangers and uncertainties that will trigger the Firm’s precise outcomes to materially differ from these expressed or implied by these forward-looking statements are described in our Type 10-Q for the quarter ended September 30, 2022 filed with the SEC on October 28, 2022 and the part entitled “Danger Components” in AppFolio’s Annual Report on Type 10-Okay for the fiscal yr ended December 31, 2022 to be filed with the SEC, in addition to within the Firm’s different filings with the SEC. You need to learn this press launch with the understanding that the Firm’s precise future outcomes could also be materially completely different from the outcomes expressed or implied by these ahead trying statements.

Besides as required by relevant regulation or the foundations of the NASDAQ International Market, AppFolio assumes no obligation to replace any forward-looking statements publicly or to replace the explanations precise outcomes may differ materially from these anticipated in these forward-looking statements, even when new data turns into accessible sooner or later.

CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in hundreds)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in hundreds, besides per share quantities)

⁽¹⁾ The next desk presents our income classes:

⁽²⁾ Consists of stock-based compensation expense as follows:

RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
(UNAUDITED)
(in hundreds, besides per share knowledge)

⁽¹⁾ Quantities have been revised from these beforehand reported to replicate the achieve realized on the sale of the SecureDocs, Inc. funding, accounted for beneath the equity-method of accounting, within the fourth quarter of fiscal yr 2021.

Assertion Concerning the Use of Non-GAAP Monetary Measures

We disclose the next non-GAAP monetary measures on this press launch: non-GAAP revenue (loss) from operations, non-GAAP working bills (value of income (unique of depreciation and amortization), gross sales and advertising and marketing, analysis and product growth, common and administrative, and depreciation and amortization), non-GAAP web revenue (loss), non-GAAP web revenue (loss) per share, and free money movement.

• Non-GAAP presentation of revenue (loss) from operations, working bills, web revenue (loss), and web revenue (loss) per share. These measures exclude sure non-cash or non-recurring objects, together with stock-based compensation expense, amortization of stock-based compensation capitalized in software program growth prices, amortization of bought intangibles, impairment, web, authorized prices and insurance coverage recoveries, achieve on sale of enterprise, and the associated revenue tax impact of those changes, as relevant and described beneath.

• Free money movement. Free money movement is outlined as web money from working actions, much less purchases of property and gear, capitalization of software program growth prices, and insurance coverage recoveries, plus authorized prices and non-recurring bills paid associated to the sale of our wholly owned subsidiary MyCase, Inc. accomplished on September 30, 2020. We use free money movement to guage our technology of money from operations that’s accessible for functions apart from capital expenditures and capitalized software program growth prices. Moreover, we consider that data concerning free money movement supplies buyers with a perspective on the money accessible to fund ongoing operations, as a result of we evaluation money flows generated from operations after considering capital expenditures and the capitalization of software program growth prices as a consequence of the truth that these expenditures are thought-about to be a needed part of ongoing operations.

We use every of those non-GAAP monetary measures internally to evaluate and evaluate working outcomes throughout reporting intervals, for inner budgeting and forecasting functions, and to guage our monetary efficiency. We consider these changes additionally present helpful supplemental data to buyers and facilitate the evaluation of our working outcomes and comparability of working outcomes throughout reporting intervals.

Specifically, we consider these non-GAAP monetary measures are helpful to buyers and others in assessing our working efficiency because of the following elements:

• Inventory-based compensation expense and amortization of stock-based compensation capitalized in software program growth prices. We make the most of stock-based compensation to draw and retain workers. It’s principally aimed toward aligning their pursuits with these of our stockholders whereas guaranteeing long-term retention, quite than to handle operational efficiency for any explicit interval. Consequently, stock-based compensation bills range for causes which might be typically unrelated to monetary and operational efficiency in any explicit interval.

• Amortization of bought intangibles. We view amortization of bought intangible property as objects arising from pre-acquisition actions decided on the time of an acquisition. Whereas these intangible property are evaluated for impairment usually, amortization of the price of bought intangibles is an expense that’s not usually affected by operations throughout any explicit interval.

• Impairment, web. We consider that impairment expenses, web of features don’t replicate future working bills, and are typically unrelated to monetary and operational efficiency in any explicit interval.

• Important authorized prices and insurance coverage recoveries. Important authorized litigation prices, settlement bills or proceeds, different related bills, and insurance coverage recoveries of such prices don’t relate to the continued operation of the enterprise and have a tendency to range considerably based mostly on the circumstances of every transaction. This isn’t indicative of our core working efficiency and is probably not significant compared to our previous working efficiency.

• Positive aspects and non-recurring prices associated to the sale of companies. In August 2022 we accomplished the sale of AppFolio Utility Administration, Inc. and in September 2020 we accomplished the sale of MyCase, Inc., every a former wholly owned subsidiary. We’ve got excluded any features and expenses associated to those gross sales, as we don’t take into account such quantities to be a part of the continued operation of our enterprise.

• Positive aspects associated to the sale of equity-method investments. In December 2021 we offered all of our curiosity in SecureDocs, Inc. an equity-method funding. We’ve got excluded any features associated to this sale, as we don’t take into account such quantities to be a part of the continued operation of our enterprise.

• Earnings tax results of changes. We make the most of a hard and fast long-term projected tax charge in our computation of non-GAAP revenue tax results to supply higher consistency throughout interim reporting intervals. In projecting this long-term non-GAAP tax charge, we make the most of a monetary projection that excludes the direct influence of different non-GAAP changes. The projected charge, which we’ve got decided to be 25%, considers different elements reminiscent of our present working construction, current tax positions in varied jurisdictions, and key laws in main jurisdictions the place we function. We periodically re-evaluate this tax charge, as needed, for vital occasions, based mostly on related tax regulation modifications, and materials modifications within the forecasted geographic earnings combine.

Our non-GAAP monetary measures could not present data that’s straight akin to that offered by different corporations in our trade, as different corporations could calculate non-GAAP monetary outcomes in a different way. As well as, there are limitations in utilizing non-GAAP monetary measures as a result of non-GAAP monetary measures are usually not ready in accordance with GAAP and may exclude bills that will have a fabric influence on our reported monetary outcomes. As such, non-GAAP monetary measures shouldn’t be thought-about in isolation from, or as an alternative choice to, monetary data ready in accordance with GAAP. A reconciliation of the historic non-GAAP monetary measures to their most straight comparable GAAP measures has been offered within the tables above. We encourage buyers to evaluation the reconciliation of those historic non-GAAP monetary measures to their most straight comparable GAAP monetary measures.