RealPage Reports Q3 2012 Financial Results

RealPage, Inc. (NASDAQ:RP), a leading provider of on-demand software and software-enabled services to the rental housing industry, today announced financial results for its third quarter ended September 30, 2012.

“Third quarter financial results were solid,” said Steve Winn, Chairman and CEO of RealPage. “Our core business metrics of organic on demand revenue, Adjusted EBITDA and annual customer value continue to grow in line with our long-term operating model. All product families reported growth with aggregate on demand revenue up over 25% for the quarter.”

Third Quarter 2012 Financial Highlights
  • Non-GAAP total revenue was $83.2 million, an increase of 22.5% year-over-year;
  • Non-GAAP on demand revenue was $79.0 million, an increase of 25.3% year-over-year;
  • Adjusted EBITDA was $18.8 million, an increase of 25.0% year-over-year;
  • Non-GAAP net income was $8.9 million, or $0.12 per diluted share, a year-over-year increase of 27.5% and 20.0%, respectively;
  • GAAP net income was $2.1 million, or $0.03 per diluted share, compared to a GAAP net loss of $1.1 million, or $0.02 per diluted share, in the prior year quarter; and
  • Excluding the cash impact from Yardi related litigation, net cash provided by operating activities was $16.4 million, an increase of 45.4% year-over-year.

Financial Outlook

RealPage management expects to achieve the following results during its fourth quarter ended December 31, 2012:
  • Non-GAAP total revenue is expected to be in the range of $85.5 million to $87.5 million;
  • Adjusted EBITDA is expected to be in the range of $20.0 million to $21.5 million;
  • Non-GAAP net income is expected to be in the range of $9.7 million to $10.5 million, or $0.13 to $0.14 per diluted share;
  • Non-GAAP tax rate of approximately 40.0%; and
  • Weighted average shares outstanding of approximately 74.8 million.

RealPage management expects to achieve the following results during its calendar year ended December 31, 2012:
  • Non-GAAP total revenue is expected to be in the range of $322.0 million to $324.0 million;
  • Adjusted EBITDA is expected to be in the range of $72.5 million to $74.0 million;
  • Non-GAAP net income is expected to be in the range of $34.4 million to $35.2 million, or $0.47 to $0.48 per diluted share;
  • Non-GAAP tax rate of approximately 40.0%; and
  • Full year weighted average shares outstanding of approximately 73.9 million.

Please note that the above statements are forward looking and that Non-GAAP total revenue includes an adjustment for the effect of deferred revenue from acquired companies that is required to be written down for GAAP purposes under purchase accounting rules. In addition, the above statements also include the impact of acquisitions and exclude any costs resulting from the Yardi litigation (including settlement costs and related insurance litigation). Actual results may differ materially. Please reference the information under the caption "Non-GAAP Financial Measures" as part of this press release.

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