RealPage (RP) Tops Q3 EPS by 7c, Revenues Beat; Offers 4Q & FY20 EPS Guidance Above Consensus, Provides FY20 Revenue Outlook Above Consensus

RealPage (NASDAQ: RP) reported Q3 EPS of $0.52, $0.07 better than the analyst estimate of $0.45. Revenue for the quarter came in at $298.1 million versus the consensus estimate of $291.84 million.

Third Quarter 2020 Financial Highlights

• GAAP total revenue of $298.1 million, an increase of 17% year-over-year;
• Net income of $16.3 million, or $0.16 in net income per diluted share, a year-over-year increase of 40% and 33%, respectively;
• Adjusted EBITDA of $86.2 million, an increase of 19% year-over-year; and,
• Non-GAAP net income of $52.2 million, or $0.52 in non-GAAP net income per diluted share, a year-over-year increase of 22% and 16%, respectively.

Comments on the News

“In the third quarter, we continued to exceed expectations and delivered the strongest quarter in RealPage history. We believe our continued performance underscores the strength of our model and the importance of the solutions we are providing to customers. We achieved this performance despite significant uncertainty in many sectors of the economy – further evidence that technology transformation remains a top priority for owners and operators throughout the country,” said Steve Winn, Chairman and CEO of RealPage.

“During the third quarter, we sharpened our focus on disciplined investment while proactively helping our customers respond to a historic transition to a work-from-home model. More than ever, RealPage customers recognize the need for digital transformation to meet these challenges. As a result, we are raising the mid-point of our full-year revenue outlook by $11 million and our Adjusted EBITDA margin guidance by 100 basis points,” said Brian Shelton, Chief Financial Officer and Treasurer of RealPage. “As we prepare for 2021, we will continue to focus on top-line growth and operating discipline, both of which will position us for sustained success.”

GUIDANCE:

RealPage sees Q4 2020 EPS of $0.46-$0.50, versus the consensus of $0.45. RealPage sees Q4 2020 revenue of $292-296 million, versus the consensus of $293.09 million.

RealPage sees FY2020 EPS of $1.90-$1.94, versus the consensus of $1.81. RealPage sees FY2020 revenue of $1.152-1.156 million, versus the consensus of $1.15 million.

RealPage management expects to achieve the following results during the fourth quarter ending December 31, 2020:

• GAAP total revenue is expected to be in the range of $292 million to $296 million;
• GAAP net income per diluted share is expected to be in the range of $0.10 to $0.14;
• Non-GAAP total revenue is expected to be in the range of $292 million to $296 million;
• Adjusted EBITDA is expected to be in the range of $78 million to $82 million;
• Non-GAAP net income per diluted share is expected to be in the range of $0.46 to $0.50;
• Non-GAAP diluted weighted average shares outstanding are expected to be approximately 101.0 million.

RealPage management expects to achieve the following results during the calendar year ending December 31, 2020:

• GAAP total revenue is expected to be in the range of $1,152 million to $1,156 million;
• GAAP net income per diluted share is expected to be in the range of $0.44 to $0.48;
• Non-GAAP total revenue is expected to be in the range of $1,154 million to $1,158 million;
• Adjusted EBITDA is expected to be in the range of $316 million to $320 million;
• Non-GAAP net income per diluted share is expected to be in the range of $1.90 to $1.94;
• Non-GAAP diluted weighted average shares outstanding are expected to be approximately 98.2 million.

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

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