RealPage (RP) Tops Q1 EPS by 1c; Guides Lower

RealPage (NASDAQ: RP) reported Q1 EPS of $0.43, $0.01 better than the analyst estimate of $0.42. Revenue for the quarter came in at $276.7 million versus the consensus estimate of $277.16 million.

“In the face of COVID-19 headwinds that began to impact our business in March, we are reporting solid first quarter results that include revenue growth of 18% and, excluding changes in restricted cash relating to accounting treatment changes, operating cash flow growth of 22%, both compared to the prior year period,” said Steve Winn, Chairman and CEO of RealPage. “While our range of financial expectations for 2020 includes anticipated headwinds related to lower leasing velocity and delayed new client projects, we remain focused on leading the industry through the storm, including rapidly delivering innovative solutions to optimize rental housing operations such as those that facilitate virtual leasing, living and payments.”

“We are reducing our full year revenue growth outlook by 300 to 500 basis points and our adjusted EBITDA margin guidance by 150 basis points,” said Tom Ernst, CFO and Treasurer of RealPage. “This reduction is driven by lower expectations for bookings in the first half, and slower leasing velocity. While we intend to adjust variable costs due to lower revenue and the realization of some productivity improvements, we do not expect to reduce product development or sales & marketing spend given our view that clients will have an increased need for products and services that help them accelerate their transition to more virtual operations.”

GUIDANCE:

RealPage sees Q2 2020 EPS of $0.38-$0.42, versus the consensus of $0.46. RealPage sees Q2 2020 revenue of $276-280 million, versus the consensus of $286.6 million.

RealPage sees FY2020 EPS of $1.74-$1.84, versus the consensus of $1.93. RealPage sees FY2020 revenue of $1.114-1.154 billion, versus the consensus of $1.16 billion.

For earnings history and earnings-related data on RealPage (RP) click here.

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