Item 5. Market for Registrant’s Common Equity
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market for our Common Stock
Our Class A common stock began trading publicly on the NASDAQ Global Market under the symbol "APPF" on June 26, 2015. Prior to that date, there was no public trading market for our Class A common stock.
Our Class B common stock is not listed or traded on any stock exchange.
Holders of Record
At February 15, 2021, there were 23 holders of record of our Class A common stock and 78 holders of record of our Class B common stock. Because many of our shares of Class A common stock are held by brokers and other institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
Dividend Policy
We have never declared or paid any cash dividends on our capital stock. We do not anticipate declaring or paying any cash dividends to holders of our capital stock in the foreseeable future and intend to retain all future earnings for use in the growth of our business. Consequently, investors may need to rely on sales of our Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. Investors should not purchase our Class A common stock with the expectation of receiving cash dividends.
Stock Performance Graph
The following performance graph compares the cumulative total return on our Class A common stock with that of the S&P 500 Index and the NASDAQ Computer Index. This chart assumes $100 was invested in our Class A common stock at the close of market on December 31, 2015, and in the S&P 500 Index and the NASDAQ Computer Index, and assumes the reinvestment of any dividends.
The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock.
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This performance graph shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or incorporated by reference into any of our other filings under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Unregistered Sales of Equity Securities and Purchases of Equity Securities
None.
ITEM 6. SELECTED FINANCIAL DATA
The following tables present our historical selected consolidated financial data for the periods indicated. We have derived the selected Consolidated Statements of Operations data for the fiscal years ended December 31, 2020, 2019 and 2018 and the selected Consolidated Balance Sheet data at December 31, 2020 and 2019 from our audited Consolidated Financial Statements included elsewhere in this Annual Report. We have derived the selected Consolidated Statements of Operations data for the fiscal years ended December 31, 2017 and 2016 and the selected Consolidated Balance Sheet data at December 31, 2018, 2017 and 2016 from our audited Consolidated Financial Statements, which are not included in this Annual Report. Our historical results are not necessarily indicative of the results we expect in the future.
The following historical selected consolidated financial data should be read in conjunction with, and are qualified in their entirety by reference to, the section of this Annual Report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our Consolidated Financial Statements and the related notes included elsewhere in this Annual Report.
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Year Ended December 31,
2020 (1)
2019 (2)
2018 (3)
2017 2016
(in thousands, except per share data)
Consolidated Statements of Operations Data:
Revenue $ 310,056 $ 256,012 $ 190,071 $ 143,803 $ 105,586
Costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization) (4)
119,029 101,642 73,549 55,283 44,630
Sales and marketing (4)
58,445 51,528 33,288 28,709 28,827
Research and product development (4)
48,529 39,508 24,111 16,578 12,638
General and administrative (4)
47,480 34,478 24,891 21,199 17,979
Depreciation and amortization 26,790 22,395 14,576 12,699 9,935
Total costs and operating expenses 300,273 249,551 170,415 134,468 114,009
Income (loss) from operations 9,783 6,461 19,656 9,335 (8,423)
Other income (expense), net 188,897 16 (56) (96) (37)
Interest (expense) income, net (1,849) (1,654) 787 535 246
Income (loss) before provision for income taxes 196,831 4,823 20,387 9,774 (8,214)
Provision for (benefit from) income taxes 38,428 (31,459) 420 58 67
Net income (loss) $ 158,403 $ 36,282 $ 19,967 $ 9,716 $ (8,281)
Net income (loss) per common share:
Basic $ 4.62 $ 1.07 $ 0.59 $ 0.29 $ (0.25)
Diluted $ 4.44 $ 1.02 $ 0.56 $ 0.28 $ (0.25)
Weighted average common shares outstanding:
Basic 34,264 34,016 34,128 33,849 33,561
Diluted 35,713 35,567 35,562 35,151 33,561
(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. Refer to Note 3, Divestitures and Business Combinations of our Consolidated Financial Statements included elsewhere in this Annual Report for additional information regarding this transaction.
(2) We acquired Dynasty on January 7, 2019. The results of Dynasty have been included in our results of operations from the date of acquisition. Refer to Note 3, Divestitures and Business Combinations of our Consolidated Financial Statements included elsewhere in this Annual Report for additional information regarding this transaction.
(3) We acquired WegoWise on August 31, 2018. The results of WegoWise have been included in our results of operations from the date of acquisition.
(4) The following table presents stock-based compensation expense included in each respective expense category:
Year Ended December 31,
2020 2019 2018 2017 2016
(in thousands)
Stock-based compensation expense included in costs and operating expenses:
Cost of revenue (exclusive of depreciation and amortization) $ 1,506 $ 1,466 $ 1,103 $ 725 $ 471
Sales and marketing 1,415 1,271 1,034 723 442
Research and product development 1,818 1,411 1,079 657 382
General and administrative 4,286 3,161 3,121 3,991 3,006
Total stock-based compensation expense $ 9,025 $ 7,309 $ 6,337 $ 6,096 $ 4,301
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At December 31,
2020 2019 2018 2017 2016
(in thousands)
Consolidated Balance Sheet Data:
Cash and cash equivalents and investment securities $ 175,289 $ 50,778 $ 101,963 $ 68,310 $ 52,860
Capitalized software development costs, net 35,459 30,023 20,485 17,609 15,539
Total assets 389,480 260,102 175,741 110,248 92,583
Deferred revenue 2,262 4,586 3,414 7,080 7,638
Operating lease liabilities 41,991 36,138 — — —
Current and long-term debt, net — 48,583 49,815 — —
Total stockholders’ equity 285,920 131,950 91,846 85,079 69,682