Exhibit 99.1

RealPage Reports First Quarter 2019 Financial Results

RICHARDSON, Texas--(BUSINESS WIRE)--May 6, 2019--RealPage, Inc. (NASDAQ:RP), a leading global provider of software and data analytics to the real estate industry, today announced financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Financial Highlights

Comments on the News

“Solid first quarter financial performance was driven by demand for our strategic platform,” said Steve Winn, Chairman and CEO of RealPage. “During 2019, we will continue to leverage the power of our platform to turn data into action. Our innovations in 2019 such as our recently launched AI Screening and Go Direct Marketing Suite, enable our clients to take actions that significantly increase their revenue, reduce their cost and optimize their risk.”

“First quarter financial performance was strong as total revenue grew 16%, while adjusted EBITDA grew 20%,” said Tom Ernst, CFO and Treasurer of RealPage. “A primary focus for RealPage during 2019 will be optimizing Yes-To-Success, which begins the moment that a client gives us the verbal green light, to the ongoing use of our platform post implementation. To accomplish this, we are increasing our process transparency and structures to drive efficiency, reduce friction points and unlock value creation more quickly.”

2019 Financial Outlook

RealPage management expects to achieve the following results during the second quarter ending June 30, 2019:


RealPage management expects to achieve the following results during the calendar year ending December 31, 2019:

Conference Call Information; Presentation Slides

The Company will host a conference call at 5:00 p.m. EDT today to discuss its financial results. Participants are encouraged to listen to the presentation via a live web broadcast and view presentation slides at https://78449.themediaframe.com/dataconf/productusers/rlpg/mediaframe/30246/indexl.html. In addition, a live dial-in is available domestically at 877-407-9128 and internationally at 201-493-6752. A replay will be available at 877-660-6853 or 201-612-7415.

About RealPage

RealPage is a leading global provider of software and data analytics to the real estate industry. Clients use our platform to improve operating performance and increase capital returns. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves over 12,100 clients worldwide from offices in North America, Europe and Asia. For more information about the company, visit https://www.realpage.com.


Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking” statements relating to RealPage, Inc.’s strategy, goals, future focus areas, and expected, possible or assumed future results, including its financial outlook for the second quarter and calendar year ending December 31, 2019, that we will continue to leverage the power of our platform to turn data into action, innovations in 2019 that will enable clients to take actions to significantly increase their revenue, reduce their cost and optimize their risk, such as our AI Screening and the GoDirect Marketing Suite, and our focus on optimizing Yes-To-Success and increasing process transparency and structures to drive efficiency, reduce friction points and unlock value creation more quickly. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “expects,” “believes,” “plans,” or similar expressions and the negatives of those terms. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The Company may be required to revise its results contained herein upon finalizing its review of quarterly and full-year results and completion of the annual audit, which could cause or contribute to such differences. Additional factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the possibility that general economic conditions, including leasing velocity or uncertainty, could cause information technology spending, particularly in the rental housing industry, to be reduced or purchasing decisions to be delayed; (b) an increase in insurance claims; (c) an increase in client cancellations; (d) the inability to increase sales to existing clients and to attract new clients; (e) RealPage’s failure to integrate recent or future acquired businesses successfully or to achieve expected synergies; (f) the timing and success of new product introductions by RealPage or its competitors; (g) changes in RealPage’s pricing policies or those of its competitors; (h) legal or regulatory proceedings; (i) the inability to achieve revenue growth or to enable margin expansion; (j) changes in RealPage’s estimates with respect to its long-term corporate tax rate or any other impact from the Tax Cuts and Jobs Act; and (k) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission (“SEC”) by RealPage, including its Annual Report on Form 10-K previously filed with the SEC on February 27, 2019. All information provided in this release is as of the date hereof and RealPage undertakes no duty to update this information except as required by law.


Explanation of Non-GAAP Financial Measures

The company reports its financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, the company believes that, in order to properly understand its short-term and long-term financial, operational and strategic trends, it may be helpful for investors to exclude certain non-cash or non-recurring items when used as a supplement to financial performance measures in accordance with GAAP. These non-cash or non-recurring items result from facts and circumstances that vary in both frequency and impact on continuing operations. The company also uses results of operations excluding such items to evaluate the operating performance of RealPage and compare it against prior periods, make operating decisions, determine executive compensation, and serve as a basis for long-term strategic planning. These non-GAAP financial measures provide the company with additional means to understand and evaluate the operating results and trends in its ongoing business by eliminating certain non-cash expenses and other items that RealPage believes might otherwise make comparisons of its ongoing business with prior periods more difficult, obscure trends in ongoing operations, reduce management’s ability to make useful forecasts, or obscure the ability to evaluate the effectiveness of certain business strategies and management incentive structures. In addition, the company also believes that investors and financial analysts find this information to be helpful in analyzing the company’s financial and operational performance and comparing this performance to the company’s peers and competitors.

The company defines “Non-GAAP Total Revenue” as total revenue plus acquisition-related deferred revenue. The company believes it is useful to include deferred revenue written down for GAAP purposes under purchase accounting rules in order to appropriately measure the underlying performance of its business operations in the period of activity and associated expense. Further, the company believes this measure is useful to investors as a way to evaluate the company’s ongoing performance because it provides a more accurate depiction of on demand revenue arising from our strategic acquisitions.

The company defines “Adjusted Gross Profit” as gross profit, plus (1) acquisition-related deferred revenue, (2) depreciation, (3) amortization of product technologies, and (4) stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.

The company defines “Adjusted EBITDA” as net income (loss), plus (1) acquisition-related deferred revenue, (2) depreciation, asset impairment, and the loss on disposal of assets, (3) amortization of product technologies and intangible assets, (4) change in fair value of equity investment, (5) acquisition-related expense, (6) interest expense, net, (7) income tax expense (benefit), and (8) stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.

The company defines “Non-GAAP Product Development Expense” as product development expense, excluding stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to product innovation.


The company defines “Non-GAAP Sales and Marketing Expense” as sales and marketing expense, excluding stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to its sales and marketing strategies.

The company defines “Non-GAAP General and Administrative Expense” as general and administrative expense, excluding (1) asset impairment and loss on disposal of assets, (2) acquisition-related expense, and (3) stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s underlying expense structure to support corporate activities and processes.

The company defines “Non-GAAP Operating Expense” as operating expense, excluding (1) asset impairment and loss on disposal of assets, (2) amortization of intangible assets, (3) acquisition-related expense, and (4) stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s underlying expense structure to support ongoing operations.

The company defines “Non-GAAP Operating Income” as operating income, plus (1) acquisition-related deferred revenue, (2) asset impairment and loss on disposal of assets, (3) amortization of product technologies and intangible assets, (4) acquisition-related expense, and (5) stock-based expense. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.


The company defines “Non-GAAP Net Income” as net income, plus (1) income tax (benefit) expense, (2) acquisition-related deferred revenue, (3) asset impairment and loss on disposal of assets, (4) amortization of product technologies and intangible assets, (5) change in fair value of equity investment, (6) acquisition-related expense, (8) amortization of convertible note discount, and (9) stock-based expense, less (10) provision for income tax expense based on an assumed rate in order to approximate the company’s long-term effective corporate tax rate.

The company defines “Non-GAAP Net Income per Diluted Share” as Non-GAAP Net Income divided by Non-GAAP Weighted Average Diluted Shares Outstanding. The company believes that investors and financial analysts find these non-GAAP financial measures to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.

The company defines "Non-GAAP Weighted Average Diluted Shares Outstanding" as weighted average diluted shares outstanding excluding the impact of shares that are issuable upon conversions of our convertible notes. It is the current intent of the company to settle conversions of the convertible notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. We exclude these shares that are issuable upon conversions of our convertible notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in May 2017 in connection with the issuance of the convertible notes.

The company defines “Non-GAAP On Demand Revenue” as total on demand revenue plus acquisition-related deferred revenue. The company believes it is useful to include deferred revenue written down for GAAP purposes under purchase accounting rules in order to appropriately measure the underlying performance of the company’s business operations in the period of activity and associated expense. Further, the company believes that investors and financial analysts find this measure to be useful in evaluating the company’s ongoing performance because it provides a more accurate depiction of on demand revenue arising from our strategic acquisitions.

The company defines “Ending On Demand Units” as the number of rental housing units managed by our clients with one or more of our on demand software solutions at the end of the period. We use ending on demand units to measure the success of our strategy of increasing the number of rental housing units managed with our on demand software solutions. Property unit counts are provided to us by our customers as new sales orders are processed. Property unit counts may be adjusted periodically as information related to our clients’ properties is updated or supplemented, which could result in adjustments to the number of units previously reported.

The company defines “Average On Demand Units” as the average of the beginning and ending on demand units for each quarter in the period presented. The company’s management monitors this metric to measure its success in increasing the number of on demand software solutions utilized by our clients to manage their rental housing units, our overall revenue, and profitability.

The company defines “ACV,” or Annual Client Value, as management’s estimate of the annual value of the company’s on demand revenue contracts at a point in time. The company’s management monitors this metric to measure its success in increasing the number of on demand units, and the amount of software solutions utilized by its clients to manage their rental housing units.


The company defines “RPU,” or Revenue Per Unit, as ACV divided by ending on demand units. The company monitors this metric to measure its success in increasing the penetration of on demand software solutions utilized by its clients to manage their rental housing units.

The company excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to each excluded item:



 
 
Consolidated Balance Sheets
(in thousands, except share and per share data)




 




 


March 31,
December 31,


2019
2018


(unaudited)

Assets



Current assets:



Cash and cash equivalents
$ 252,657

$ 228,159
Restricted cash

103,768


154,599

Accounts receivable, less allowances of $7,943 and $8,850 at March 31, 2019 and December 31, 2018, respectively



125,068


123,596

Prepaid expenses



19,702


19,214
Other current assets
  11,383  
  15,185  
Total current assets

512,578


540,753
Property, equipment, and software, net

153,956


153,528
Right-of-use assets

91,023


-
Goodwill

1,052,725


1,053,119
Intangible assets, net

271,642


287,378
Deferred tax assets, net

40,295


42,602
Other assets
  22,197  
  20,393  
Total assets
$ 2,144,416  
$ 2,097,773  




 
Liabilities and stockholders’ equity



Current liabilities:



Accounts payable
$ 29,756

$ 25,312
Accrued expenses and other current liabilities

85,956


95,482
Current portion of deferred revenue

121,536


120,704
Current portion of term loans

16,133


16,133
Convertible notes, net

295,862


-
Customer deposits held in restricted accounts
  103,763  
  154,601  
Total current liabilities

653,006


412,232
Deferred revenue

4,160


4,902
Term loans, net

283,659


287,582
Convertible notes, net

-


292,843
Lease liabilities, net of current portion

105,795


-
Other long-term liabilities
  12,421  
  37,190  
Total liabilities

1,059,041


1,034,749
Stockholders’ equity:



Common stock, $0.001 par value: 250,000,000 shares authorized, 95,998,176 and 95,991,162 shares issued and 94,733,242 and 93,650,127 shares outstanding at March 31, 2019 and December 31, 2018, respectively



96


96
Additional paid-in capital

1,167,950


1,187,683
Treasury stock, at cost: 1,264,934 and 2,341,035 shares at March 31, 2019 and December 31, 2018, respectively

(33,753 )

(65,470 )
Accumulated deficit

(47,546 )

(58,793 )
Accumulated other comprehensive loss
  (1,372 )
  (492 )
Total stockholders’ equity
  1,085,375  
  1,063,024  
Total liabilities and stockholders’ equity
$ 2,144,416  
$ 2,097,773  




 

 
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)

 
 


Three Months Ended


March 31,


2019
2018
Revenue:



On demand
$ 226,519

$ 193,300
Professional and other
  7,787  
  8,001  
Total revenue

234,306


201,301
Cost of revenue(1)

90,194


72,837
Amortization of product technologies
  9,514  
  8,295  
Gross profit
  134,598  
  120,169  
Operating expenses:



Product development(1)

29,897


29,040
Sales and marketing(1)

44,823


37,680
General and administrative(1)

28,143


27,090
Amortization of intangible assets
  9,836  
  8,089  
Total operating expenses
  112,699  
  101,899  
Operating income

21,899


18,270
Interest expense and other, net
  (5,980 )
  (7,670 )
Income before income taxes
  15,919  
  10,600  
Income tax expense (benefit)
  4,647  
  (301 )
Net income
$ 11,272  
$ 10,901  




 

Net income per share attributable to common stockholders:





Basic
$ 0.12

$ 0.13
Diluted
$ 0.12

$ 0.13
Weighted average common shares outstanding:



Basic

91,490


81,166
Diluted

95,561


84,817
         




 
(1) Includes stock-based expense as follows:





Three Months Ended


March 31,


2019
2018
Cost of revenue
$ 1,331

$ 835
Product development

2,480


2,163
Sales and marketing

5,350


3,541
General and administrative
  5,752  
  3,779  


$ 14,913  
$ 10,318  
 


 
 
Condensed Consolidated Statements of Cash Flows
(in thousands)

(unaudited)





 


Three Months Ended


March 31,


2019
2018
Cash flows from operating activities:



Net income
$ 11,272

$ 10,901
Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

27,824


23,260
Amortization of debt discount and issuance costs

3,234


3,012
Amortization of right-of-use assets

3,005


-
Deferred taxes

2,550


(1,154 )
Stock-based expense

14,913


10,318
Loss on disposal and impairment of other long-lived assets

286


942
Change in fair value of equity investment

(2,600 )

-
Acquisition-related consideration

405


402
Change in customer deposits

(50,252 )

16,277

Other changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations


  (6,645 )
  6,813  
Net cash provided by operating activities
  3,992  
  70,771  




 
Cash flows from investing activities:



Purchases of property, equipment, and software

(10,873 )

(12,660 )
Purchase of other investment
  -  
  (1,800 )
Net cash used in investing activities
  (10,873 )
  (14,460 )




 
Cash flows from financing activities:



Payments on and proceeds from debt, net

(4,033 )

(3,103 )
Payments on finance lease obligations

(769 )

(114 )
Payments of acquisition-related consideration

(11,412 )

(776 )
Proceeds from exercise of stock options

1,877


5,038
Purchase of treasury stock related to stock-based compensation
  (5,016 )
  (8,450 )
Net cash used in financing activities
  (19,353 )
  (7,405 )
Net (decrease) increase in cash, cash equivalents and restricted cash

(26,234 )

48,906
Effect of exchange rate on cash

(99 )

(127 )




 
Cash, cash equivalents and restricted cash:



Beginning of period
  382,758  
  165,345  
End of period
$ 356,425  
$ 214,124  




 

 
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO
COMPARABLE GAAP MEASURES
(unaudited, in thousands, except per share data)
 

The following is a reconciliation of the non-GAAP financial measures used by RealPage to describe its financial results determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). An explanation of these measures is also included under the heading “Explanation of Non-GAAP Financial Measures.”

 

While the company believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and the company may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP.


     
 

Non-GAAP Total Revenue

Set forth below is a presentation of the company’s “Non-GAAP Total Revenue.” Please reference the “Explanation of Non- GAAP Financial Measures” section.





Three Months Ended




March 31,




2019
2018
Revenue (GAAP)


$ 234,306

$ 201,301

Acquisition-related deferred revenue




  224  
  313  
Non-GAAP Total Revenue


$ 234,530  
$ 201,614  






 

Adjusted Gross Profit







Set forth below is a presentation of the company’s "Adjusted Gross Profit." Please reference the "Explanation of Non-GAAP Financial Measures" section.





Three Months Ended




March 31,




2019
2018
Gross profit (GAAP)


$ 134,598

$ 120,169

Acquisition-related deferred revenue





224


313
Depreciation



3,671


2,934
Amortization of product technologies



9,514


8,295
Stock-based expense


  1,331  
  835  
Adjusted Gross Profit


$ 149,338  
$ 132,546  






 

Adjusted EBITDA







Set forth below is a presentation of the company’s "Adjusted EBITDA." Please reference the "Explanation of Non-GAAP Financial Measures" section.





Three Months Ended




March 31,




2019
2018
Net income (GAAP)


$ 11,272

$ 10,901

Acquisition-related deferred revenue





224


313
Depreciation, asset impairment, and loss on disposal of assets



8,760


7,818
Amortization of product technologies and intangible assets



19,350


16,384
Change in fair value of equity investment



(2,600 )

-
Acquisition-related expense



29


1,007
Interest expense, net



8,581


7,721
Income tax expense (benefit)



4,647


(301 )
Stock-based expense


  14,913  
  10,318  
Adjusted EBITDA


$ 65,176  
$ 54,161  




 


   
 

Non-GAAP Product Development Expense






Set forth below is a presentation of the company’s "Non-GAAP Product Development Expense." Please reference the "Explanation of Non-GAAP Financial Measures" section.




Three Months Ended



March 31,



2019
2018
Product development expense (GAAP)

$ 29,897
$ 29,040

Less: Stock-based expense



  2,480
  2,163
Non-GAAP Product Development Expense

$ 27,417
$ 26,877

 

Non-GAAP Sales and Marketing Expense






Set forth below is a presentation of the company’s "Non-GAAP Sales and Marketing Expense." Please reference the "Explanation of Non-GAAP Financial Measures" section.




Three Months Ended



March 31,



2019
2018
Sales and marketing expense (GAAP)

$ 44,823
$ 37,680

Less: Stock-based expense



  5,350
  3,541
Non-GAAP Sales and Marketing Expense

$ 39,473
$ 34,139





 

Non-GAAP General and Administrative Expense






Set forth below is a presentation of the company’s "Non-GAAP General and Administrative Expense." Please reference the "Explanation of Non-GAAP Financial Measures" section.




Three Months Ended



March 31,



2019
2018
General and administrative expense (GAAP)

$ 28,143
$ 27,090

Less: Asset impairment and loss on disposal of assets




286

942
Acquisition-related expense


29

1,007
Stock-based expense

  5,752
  3,779
Non-GAAP General and Administrative Expense

$ 22,076
$ 21,362





 

Non-GAAP Operating Expense


Set forth below is a presentation of the company’s "Non-GAAP Operating Expense." Please reference the "Explanation of Non- GAAP Financial Measures" section.




Three Months Ended



March 31,



2019
2018
Operating expense (GAAP)

$ 112,699
$ 101,899

Less: Asset impairment and loss on disposal of assets




286

942
Amortization of intangible assets


9,836

8,089
Acquisition-related expense


29

1,007
Stock-based expense

  13,582
  9,483
Non-GAAP Operating Expense

$ 88,966
$ 82,378





 


 
 

Non-GAAP Operating Income





Set forth below is a presentation of the company’s "Non-GAAP Operating Income." Please reference the "Explanation of Non-GAAP Financial Measures" section.



Three Months Ended


March 31,


2019
2018
Operating income (GAAP)
$ 21,899

$ 18,270

Acquisition-related deferred revenue



224


313
Asset impairment and loss on disposal of assets

286


942
Amortization of product technologies and intangible assets

19,350


16,384
Acquisition-related expense

29


1,007
Stock-based expense
  14,913  
  10,318  
Non-GAAP Operating Income
$ 56,701  
$ 47,234  




 

Non-GAAP Net Income





Set forth below is a presentation of the company’s "Non-GAAP Net Income" and "Non-GAAP Net Income per Non-GAAP Diluted Share." Please reference the "Explanation of Non-GAAP Financial Measures" section.



Three Months Ended


March 31,


2019
2018
Net income (GAAP)
$ 11,272

$ 10,901
Income tax expense (benefit)
  4,647  
  (301 )
Income before income taxes

15,919


10,600




 

Acquisition-related deferred revenue



224


313
Asset impairment and loss on disposal of assets

286


942
Amortization of product technologies and intangible assets

19,350


16,384
Change in fair value of equity investment

(2,600 )

-
Acquisition-related expense

29


1,007
Amortization of convertible note discount

2,676


2,524
Stock-based expense
  14,913  
  10,318  
Non-GAAP income before income taxes

50,797


42,088
Assumed rate for income tax expense (1)

26.0 %

26.0 %
Assumed provision for non-GAAP income tax expense
  13,207  
  10,943  
Non-GAAP Net Income
$ 37,590  
$ 31,145  




 
Net income per diluted share
$ 0.12

$ 0.13
Non-GAAP net income per diluted share
$ 0.40

$ 0.37




 
Weighted average outstanding shares - basic

91,490


81,166
Non-GAAP adjusted diluted weighted average shares outstanding:



Weighted average outstanding shares - diluted

95,561


84,817
Dilution offset from convertible note hedge transactions
  (2,207 )
  (1,319 )
Non-GAAP diluted weighted average shares outstanding (2)
  93,354  
  83,498  




 

Non-GAAP On Demand Revenue





Set forth below is a presentation of the company’s "Non-GAAP On Demand Revenue." Please reference the "Explanation of Non-GAAP Financial Measures" section.



Three Months Ended


March 31,


2019
2018
On demand revenue (GAAP)
$ 226,519

$ 193,300

Acquisition-related deferred revenue


  224  
  313  
Non-GAAP On Demand Revenue
$ 226,743  
$ 193,613  




 

 

Ending On Demand Units, Average On Demand Units, ACV, and RPU

Set forth below is a presentation of the company’s "Ending On Demand Units," "Average On Demand Units," "ACV," and "RPU." Please reference the "Explanation of Non-GAAP Financial Measures" section.

   
 
    Three Months Ended








March 31,








2019   2018
Ending on demand units







16,401


13,173
Average on demand units







16,310


13,088










 
ACV






$ 912,060

$ 779,446
RPU






$ 55.61

$ 59.17










 

Non-GAAP Total Revenue Guidance

Set forth below is a presentation of the company’s "Non-GAAP Total Revenue" guidance for the three months ending June 30, 2019, and the twelve months ending December 31, 2019. Please reference the "Explanation of Non-GAAP Financial Measures" section.



Guidance Range for the
Three Months Ending



Guidance Range for the
Twelve Months Ending




June 30, 2019

December 31, 2019



Low (3)
High (3)

Low (3)
High (3)
Revenue (GAAP)

$ 241,865

$ 243,865


$ 981,580

$ 999,580

Acquisition-related deferred revenue



  135  
  135  

  420  
  420  
Non-GAAP Total Revenue

$ 242,000  
$ 244,000  

$ 982,000  
$ 1,000,000  










 

Non-GAAP Net Income Guidance

Set forth below is a presentation of the company’s "Non-GAAP Net Income" and "Non-GAAP Net Income per Diluted Share" guidance for the three months ending June 30, 2019, and the twelve months ending December 31, 2019. Please reference the "Explanation of Non-GAAP Financial Measures" section.



Guidance Range for the
Three Months Ending



Guidance Range for the
Twelve Months Ending




June 30, 2019

December 31, 2019



Low (3)
High (3)

Low (3)
High (3)
Non-GAAP Net Income:









Net income (GAAP)

$ 9,385

$ 11,565


$ 46,210

$ 54,370
Income tax expense

  3,130  
  3,850  

  18,870  
  22,210  
Income before income taxes


12,515


15,415



65,080


76,580










 

Acquisition-related deferred revenue




135


135



420


420
Asset impairment and loss on disposal of assets


-


-



300


300
Amortization of product technologies and intangible assets


20,150


19,950



79,300


78,700
Change in fair value of equity investment


-


-



(2,600 )

(2,600 )
Acquisition-related expense


250


150



300


200
Amortization of convertible note discount


2,720


2,720



10,960


10,960
Stock-based expense

  17,100  
  16,900  

  64,800  
  64,200  
Non-GAAP income before income taxes


52,870


55,270



218,560


228,760
Expected effective tax rate (1)


26.0 %

26.0 %


26.0 %

26.0 %
Assumed provision for income tax expense

  13,746  
  14,370  

  56,826  
  59,478  
Non-GAAP Net Income

$ 39,124  
$ 40,900  

$ 161,734  
$ 169,282  










 
Net income per diluted share

$ 0.10

$ 0.12


$ 0.48

$ 0.56
Non-GAAP net income per diluted share

$ 0.42

$ 0.44


$ 1.71

$ 1.79










 
Non-GAAP adjusted diluted weighted average shares outstanding:








Weighted average outstanding shares - diluted


96,495


96,495



97,220


97,220
Dilution offset from convertible note hedge transactions

  (2,475 )
  (2,475 )

  (2,470 )
  (2,470 )
Non-GAAP diluted weighted average shares outstanding (2)

  94,020  
  94,020  

  94,750  
  94,750  


















 


 

Adjusted EBITDA Guidance

Set forth below is a presentation of the company’s "Adjusted EBITDA" guidance for the three months ending June 30, 2019, and the twelve months ending December 31, 2019. Please reference the "Explanation of Non-GAAP Financial Measures" section.

   

Guidance Range for the
Three Months Ending


 

Guidance Range for the
Twelve Months Ending




June 30, 2019

December 31, 2019



Low (3)   High (3)

Low (3)   High (3)
Adjusted EBITDA:









Net income (GAAP)

$ 9,385
$ 11,565

$ 46,210

$ 54,370

Acquisition-related deferred revenue




135

135


420


420
Depreciation, asset impairment, and loss on disposal of assets


8,800

8,600


35,600


35,000
Amortization of product technologies and intangible assets


20,150

19,950


79,300


78,700
Change in fair value of equity investment


-

-


(2,600 )

(2,600 )
Acquisition-related expense


250

150


300


200
Interest expense, net


8,050

7,850


33,100


32,500
Income tax expense


3,130

3,850


18,870


22,210
Stock-based expense

  17,100
  16,900

  64,800  
  64,200  
Adjusted EBITDA

$ 67,000
$ 69,000

$ 276,000  
$ 285,000  
 
(1)   A 26.0% tax rate is assumed in order to approximate the Company's long-term effective corporate tax rate. Please reference the “Explanation of Non-GAAP Financial Measures” section.


 
(2)
It is the current intent of the Company to settle conversions of the Convertible Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. We exclude these shares that are issuable upon conversions of our convertible notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in May 2017 in connection with the issuance of the convertible notes.


 
(3)
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The company may be required to revise its results upon finalizing its review of quarterly and full year results, which could cause or contribute to such differences. All information provided in this release is as of the date hereof and RealPage, Inc. undertakes no duty to update this information except as required by law. See additional discussion under "Cautionary Statement Regarding Forward-Looking Statements" above.


 

CONTACT:
RealPage, Inc.
Investor Relations
Rhett Butler, 972-820-3773
rhett.butler@realpage.com