Exhibit 99.1

News Release

AppFolio, Inc. Announces Fourth Quarter and Fiscal Year 2020 Financial Results

SANTA BARBARA, Calif., March 1, 2021 (GLOBE NEWSWIRE) -- AppFolio, Inc. (NASDAQ: APPF) ("AppFolio" or the "Company"), today announced its financial results for the fourth quarter and fiscal year ended December 31, 2020. The Company urges investors to read its Annual Report on Form 10-K for the year ended December 31, 2020, which will also be filed with the Securities and Exchange Commission (the "SEC") today, March 1, 2021, and will be available on AppFolio's website, http://ir.appfolioinc.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.

Financial Outlook

The Company is not providing revenue guidance for fiscal year 2021 due to limited visibility into future business trends and financial performance in the current operating environment. Diluted weighted average shares are expected to be approximately 36 million for fiscal year 2021.

Conference Call Information

As previously announced, the Company will host a conference call today, March 1, 2021, at 1:30 p.m. Pacific Time, 4:30 p.m. Eastern Time, to discuss its financial results. Participants who wish to dial into the conference call please register in advance at http://www.directeventreg.com/registration/event/8438087. After registering, a confirmation email will be sent, including dial-in details and a unique code for entry. Registration will be open through the start of the live call.

Following the conference call, a replay will be available at (800) 585-8367 (domestic) or (416) 621-4642 (international). The replay passcode is 8438087. 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 provides innovative software, services and data analytics to the real estate industry. Our industry-specific, cloud-based business management solutions are designed to enable our customers to digitally transform their businesses, address critical business operations and enable exceptional customer service. Today our core solutions include AppFolio Property Manager, AppFolio Property Manager PLUS, and AppFolio Investment Management. In addition, the Company offers a variety of Value+ services that are designed to enhance, automate and streamline essential processes and workflows for our customers. AppFolio was founded in 2006 and is headquartered in Santa Barbara, CA. Learn more at www.appfolioinc.com.

Investor Relations Contact: 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, the impact of the COVID-19 pandemic on the Company's business, 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, 2020, 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, 2020						December 31, 2019
Assets
Current assets
Cash and cash equivalents						$	140,263					$	15,813
Investment securities—current						28,256						22,876
Accounts receivable, net						10,057						7,562
Prepaid expenses and other current assets						20,777						15,540
Total current assets						199,353						61,791
Investment securities—noncurrent						6,770						12,089
Property and equipment, net						26,439						14,744
Operating lease right-of-use assets						30,561						27,803
Capitalized software development costs, net						35,459						30,023
Goodwill						56,147						58,425
Intangible assets, net						16,357						21,377
Deferred taxes						12,181						27,574
Other long-term assets						6,213						6,276
Total assets						$	389,480					$	260,102
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable						$	1,040					$	1,927
Accrued employee expenses						18,888						17,758
Accrued expenses						14,069						10,833
Deferred revenue						2,262						4,600
Income tax payable						9,095						—
Other current liabilities						4,451						11,139
Term loan, net—current portion						—						1,208
Total current liabilities						49,805						47,465
Operating lease liabilities						40,146						33,312
Term loan, net						—						47,375
Deferred taxes						13,609						—
Total liabilities						103,560						128,152
Stockholders’ equity:
Preferred stock, $0.0001 par value, 25,000 shares authorized and no shares issued and outstanding as of December 31, 2020 and December 31, 2019						—						—
Class A common stock, $0.0001 par value, 250,000 shares authorized as of December 31, 2020 and December 31, 2019; 19,148 and 16,923 shares issued as of December 31, 2020 and December 31, 2019, respectively; 18,729 and 16,552 shares outstanding as of December 31, 2020 and December 31, 2019, respectively						2						2
Class B common stock, $0.0001 par value, 50,000 shares authorized as of December 31, 2020 and December 31, 2019; 15,659 and 17,594 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively						2						2
Additional paid-in capital						161,247						161,509
Accumulated other comprehensive income						56						33
Treasury stock, at cost, 419 and 371 shares of Class A common stock as of December 31, 2020 and December 31, 2019, respectively						(25,756)						(21,562)
Retained earnings (accumulated deficit)						150,369						(8,034)
Total stockholders’ equity						285,920						131,950
Total liabilities and stockholders’ equity						$	389,480					$	260,102

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share amounts)

			Three Months Ended December 31,												Twelve Months Ended December 31,
			2020(1)						2019						2020(1)						2019
Revenue			$	72,432					$	67,362					$	310,056					$	256,012
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)			29,905						26,403						119,029						101,642
Sales and marketing			15,328						14,441						58,445						51,528
Research and product development			11,735						11,086						48,529						39,508
General and administrative			11,177						9,117						47,480						34,478
Depreciation and amortization			7,039						6,226						26,790						22,395
Total costs and operating expenses			75,184						67,273						300,273						249,551
(Loss) income from operations			(2,752)						89						9,783						6,461
Other income, net			1,138						84						188,897						16
Interest income (expense), net			60						(330)						(1,849)						(1,654)
(Loss) income before (benefit from) provision for income taxes			(1,554)						(157)						196,831						4,823
(Benefit from) provision for income taxes			(1,041)						(4,585)						38,428						(31,459)
Net (loss) income			$	(513)					$	4,428					$	158,403					$	36,282
Net (loss) income per common share:
Basic			$	(0.01)					$	0.13					$	4.62					$	1.07
Diluted			$	(0.01)					$	0.12					$	4.44					$	1.02
Weighted average common shares outstanding:
Basic			34,332						34,091						34,264						34,016
Diluted			34,332						35,597						35,713						35,567

(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,
			2020(1)						2019						2020(1)						2019
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization)			$	408					$	393					$	1,506					$	1,466
Sales and marketing			346						367						1,415						1,271
Research and product development			470						387						1,818						1,411
General and administrative			993						731						4,286						3,161
Total stock-based compensation expense			$	2,217					$	1,878					$	9,025					$	7,309

(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,
			2020(1)						2019						2020(1)						2019
Cash from operating activities
Net income			$	(513)					$	4,428					$	158,403					$	36,282
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			7,039						6,226						26,790						22,395
Amortization of operating lease right-of-use assets			728						1,114						3,701						4,130
Deferred income taxes			6,124						(4,423)						29,002						(31,455)
Stock-based compensation			2,217						1,878						9,025						7,309
Gain on sale of business			(22)						—						(187,658)						—
Other			(45)						(104)						125						32
Changes in operating assets and liabilities:
Accounts receivable			(553)						747						(2,782)						(2,031)
Prepaid expenses and other current assets			(5,035)						372						(5,894)						(4,031)
Other assets			(199)						247						(519)						1,376
Accounts payable			(1,598)						241						(903)						511
Accrued employee expenses			880						4,056						2,799						4,542
Accrued expenses			947						69						6,878						55
Deferred revenue			(285)						154						530						1,193
Operating lease liabilities			571						224						(564)						(2,662)
Other liabilities			(7,173)						245						9,366						1,241
Net cash provided by operating activities			3,083						15,474						48,299						38,887
Cash from investing activities
Purchases of available-for-sale investments			(13,998)						(14,508)						(43,877)						(25,198)
Proceeds from sales of available-for-sale investments			2,769						—						16,711						2,750
Proceeds from maturities of available-for-sale investments			14,030						4,660						27,330						15,660
Purchases of property, equipment and intangible assets			(2,487)						(3,999)						(19,038)						(8,084)
Capitalization of software development costs			(6,345)						(5,329)						(26,042)						(20,998)
Cash paid in business acquisition, net of cash acquired			—						—						—						(54,004)
Proceeds from sale of business, net of cash divested			—						—						191,427						—
Net cash (used in) provided by investing activities			(6,031)						(19,176)						146,511						(89,874)
Cash from financing activities
Proceeds from stock option exercises			420						294						822						553
Tax withholding for net share settlement			(1,237)						(614)						(12,196)						(6,155)
Payment of contingent consideration			—						—						(5,977)						—
Proceeds from issuance of debt			—						472						50,752						2,169
Principal payments on debt			—						(785)						(99,565)						(3,419)
Payment of debt issuance costs			—						—						—						(420)
Purchase of treasury stock			—						—						(4,194)						—
Net cash used in financing activities			(817)						(633)						(70,358)						(7,272)
Net (decrease) increase in cash and cash equivalents and restricted cash			(3,765)						(4,305)						124,452						(58,259)
Cash, cash equivalents and restricted cash
Beginning of period			144,464						20,552						16,247						74,506
End of period			$	140,699					$	16,247					$	140,699					$	16,247

(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.