001-37468 | 26-0359894 |
(Commission File Number) | (IRS Employer Identification Number) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit Number | Description | |
99.1 | Press release issued on November 9, 2015. |
AppFolio, Inc. | |||
Date: November 9, 2015 | By: | /s/ Ida Kane | |
Name: Ida Kane | |||
Title: Chief Financial Officer |
Exhibit Number | Description | |
99.1 | Press release issued on November 9, 2015. |
• | Revenue was $20.3 million, an increase of 56% period-over-period |
• | GAAP net loss was $4.8 million or a net loss of $0.14 per share and Non-GAAP net loss was $4.5 million, or a net loss of $0.13 per share |
• | Increased property manager customers 42% year-over-year to 7,561 and 2.0 million units under management |
• | Increased law firm customers 74% year-over-year to 5,566 |
• | Full year revenue is expected to be in the range of $74.6 million to $75.1 million. |
• | Weighted average common shares outstanding are expected to be approximately 33.5 million in the fourth quarter and 21.5 million for the full fiscal year. |
September 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 11,758 | $ | 5,412 | ||||
Investment securities—current | 28,151 | — | ||||||
Accounts receivable, net | 2,238 | 1,191 | ||||||
Prepaid expenses and other current assets | 2,571 | 1,204 | ||||||
Total current assets | 44,718 | 7,807 | ||||||
Investment securities—noncurrent | 23,704 | — | ||||||
Property and equipment, net | 4,115 | 2,623 | ||||||
Capitalized software, net | 8,916 | 5,509 | ||||||
Goodwill | 6,737 | 4,998 | ||||||
Intangible assets, net | 4,922 | 3,615 | ||||||
Other assets | 1,079 | 882 | ||||||
Total assets | $ | 94,191 | $ | 25,434 | ||||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,403 | $ | 2,088 | ||||
Accrued employee expenses | 6,519 | 3,150 | ||||||
Accrued expenses | 3,303 | 1,721 | ||||||
Deferred revenue | 4,442 | 3,772 | ||||||
Other current liabilities | 572 | 2,797 | ||||||
Total current liabilities | 17,239 | 13,528 | ||||||
Deferred revenue | — | 8 | ||||||
Other liabilities | 626 | 199 | ||||||
Total liabilities | 17,865 | 13,735 | ||||||
Commitments and contingencies | ||||||||
Convertible preferred stock, Series A, B, B-1, B-2 and B-3, $0.0001 par value | — | 63,166 | ||||||
Stockholders’ equity (deficit): | ||||||||
Preferred stock, $0.0001 par value | — | — | ||||||
Class A common stock, $0.0001 par value | 1 | — | ||||||
Class B common stock, $0.0001 par value | 3 | 1 | ||||||
Additional paid-in capital | 141,115 | 1,546 | ||||||
Accumulated other comprehensive loss | (1 | ) | — | |||||
Accumulated deficit | (64,792 | ) | (53,014 | ) | ||||
Total stockholders’ equity (deficit) | 76,326 | (51,467 | ) | |||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 94,191 | $ | 25,434 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | $ | 20,305 | $ | 13,024 | $ | 54,578 | $ | 34,452 | |||||||
Costs and operating expenses: | |||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | 9,264 | 5,979 | 24,438 | 16,112 | |||||||||||
Sales and marketing | 7,028 | 4,312 | 18,976 | 11,519 | |||||||||||
Research and product development | 2,797 | 1,838 | 6,960 | 4,559 | |||||||||||
General and administrative | 3,888 | 1,180 | 10,987 | 3,564 | |||||||||||
Depreciation and amortization | 1,638 | 988 | 4,252 | 2,691 | |||||||||||
Total costs and operating expenses | 24,615 | 14,297 | 65,613 | 38,445 | |||||||||||
Loss from operations | (4,310 | ) | (1,273 | ) | (11,035 | ) | (3,993 | ) | |||||||
Other expense, net | (1 | ) | (6 | ) | (8 | ) | (103 | ) | |||||||
Interest (expense) income, net | (426 | ) | 11 | (701 | ) | 48 | |||||||||
Loss before provision for income taxes | (4,737 | ) | (1,268 | ) | (11,744 | ) | (4,048 | ) | |||||||
Provision for income taxes | 23 | — | 34 | — | |||||||||||
Net loss | $ | (4,760 | ) | $ | (1,268 | ) | $ | (11,778 | ) | $ | (4,048 | ) | |||
Net loss per share, basic and diluted | $ | (0.14 | ) | $ | (0.14 | ) | $ | (0.68 | ) | $ | (0.46 | ) | |||
Weighted average common shares outstanding, basic and diluted | 33,314 | 8,807 | 17,274 | 8,724 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | $ | 35 | $ | 17 | $ | 86 | $ | 49 | ||||||||
Sales and marketing | 33 | 12 | 84 | 32 | ||||||||||||
Research and product development | 10 | 3 | 22 | 17 | ||||||||||||
General and administrative | 200 | 26 | 431 | 60 | ||||||||||||
Total stock-based compensation expense | $ | 278 | $ | 58 | $ | 623 | $ | 158 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cash from operating activities | |||||||||||||||
Net loss | $ | (4,760 | ) | $ | (1,268 | ) | $ | (11,778 | ) | $ | (4,048 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||
Depreciation and amortization | 1,638 | 988 | 4,252 | 2,691 | |||||||||||
Purchased investment premium, net of amortization | (380 | ) | — | (380 | ) | — | |||||||||
Amortization of deferred financing costs | 410 | — | 441 | — | |||||||||||
Loss on disposal of property and equipment | (6 | ) | 6 | 7 | 66 | ||||||||||
Payment of accrued interest expense | (223 | ) | — | — | — | ||||||||||
Stock-based compensation | 278 | 58 | 623 | 158 | |||||||||||
Change in fair value of contingent consideration | — | (60 | ) | — | (56 | ) | |||||||||
Loss on equity-method investment | — | — | — | 19 | |||||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | 286 | 61 | (936 | ) | (588 | ) | |||||||||
Prepaid expenses and other current assets | (737 | ) | (91 | ) | (1,345 | ) | (548 | ) | |||||||
Other assets | (37 | ) | (8 | ) | (120 | ) | 4 | ||||||||
Accounts payable | (716 | ) | 252 | 167 | 1,033 | ||||||||||
Accrued employee expenses | 2,046 | 900 | 3,110 | 1,054 | |||||||||||
Accrued expenses | 674 | 331 | 1,234 | 653 | |||||||||||
Deferred revenue | 187 | 62 | 662 | 575 | |||||||||||
Other liabilities | 373 | (24 | ) | 289 | 270 | ||||||||||
Net cash (used in) provided by operating activities | (967 | ) | 1,207 | (3,774 | ) | 1,283 | |||||||||
Cash from investing activities | |||||||||||||||
Purchases of property and equipment | (724 | ) | (387 | ) | (2,234 | ) | (1,634 | ) | |||||||
Additions to capitalized software | (2,218 | ) | (1,217 | ) | (5,373 | ) | (3,253 | ) | |||||||
Purchases of investment securities | (60,426 | ) | — | (60,426 | ) | — | |||||||||
Sales of investment securities | 4,000 | — | 4,000 | — | |||||||||||
Maturities of investment securities | 4,950 | — | 4,950 | — | |||||||||||
Cash paid in business acquisition, net of cash acquired | — | — | (4,039 | ) | — | ||||||||||
Purchases of intangible assets | (5 | ) | (12 | ) | (16 | ) | (18 | ) | |||||||
Net cash used in investing activities | (54,423 | ) | (1,616 | ) | (63,138 | ) | (4,905 | ) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Cash from financing activities | |||||||||||||||
Proceeds from stock option exercises | 10 | 11 | 328 | 155 | |||||||||||
Proceeds from issuance of restricted stock | — | — | 141 | — | |||||||||||
Proceeds from issuance of options | — | — | 208 | — | |||||||||||
Principal payments under capital lease obligations | (7 | ) | (6 | ) | (22 | ) | (20 | ) | |||||||
Proceeds from initial public offering, net of underwriting discounts | 10,378 | — | 79,570 | — | |||||||||||
Payments of initial public offering costs | (3,192 | ) | — | (3,999 | ) | — | |||||||||
Payment of contingent consideration | — | — | (2,429 | ) | — | ||||||||||
Proceeds from issuance of debt | — | — | 10,000 | — | |||||||||||
Principal payments on debt | (9,958 | ) | — | (10,000 | ) | — | |||||||||
Payment of debt issuance costs | (7 | ) | — | (539 | ) | — | |||||||||
Net cash (used by) provided by financing activities | (2,776 | ) | 5 | 73,258 | 135 | ||||||||||
Net cash (decrease) increase in cash and cash equivalents | (58,166 | ) | (404 | ) | 6,346 | (3,487 | ) | ||||||||
Cash and cash equivalents | |||||||||||||||
Beginning of period | 69,924 | 8,186 | 5,412 | 11,269 | |||||||||||
End of period | $ | 11,758 | $ | 7,782 | $ | 11,758 | $ | 7,782 |
Three Months Ended September 30, 2015 | |||
GAAP net loss | $ | (4,760 | ) |
Stock-based compensation expense | 278 | ||
Non-GAAP net loss | $ | (4,482 | ) |
Non-GAAP net loss per share, basic and diluted | $ | (0.13 | ) |
Weighted average common shares outstanding, basic and diluted | 33,314 |
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