Exhibit 99.2
RealPage, Inc. | |||||||||||||||||||||||||||||||||||||||||
IR Fact Sheet (as of 11/02/2016) | |||||||||||||||||||||||||||||||||||||||||
*Please read in conjunction with the Company's Quarterly Report on Form 10-Q previously filed with the Securities and Exchange Commission on August 4, 2016 as well as the "Explanation of Non-GAAP Financial Measures" posted to the Company's IR website. | |||||||||||||||||||||||||||||||||||||||||
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | FY 2014 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | FY 2015 | Q1 2016 | Q2 2016 | Q3 2016 | |||||||||||||||||||||||||||||
Revenue ($000's) | |||||||||||||||||||||||||||||||||||||||||
Total GAAP Revenue | $ | 100,563 | $ | 94,988 | $ | 104,536 | $ | 104,464 | $ | 404,551 | $ | 110,470 | $ | 114,762 | $ | 121,588 | $ | 121,700 | $ | 468,520 | $ | 128,383 | $ | 142,719 | $ | 147,955 | |||||||||||||||
|
Growth % |
13 | % | 1 | % | 7 | % | 9 | % | 7 | % | 10 | % | 21 | % | 16 | % | 16 | % | 16 | % | 16 | % | 24 | % | 22 | % | ||||||||||||||
Acquisition-related and other deferred revenue | 1,324 | (207 | ) | (392 | ) | (290 | ) | 435 | (466 | ) | (532 | ) | (614 | ) | (545 | ) | (2,157 | ) | (343 | ) | (258 | ) | (161 | ) | |||||||||||||||||
Total Non-GAAP Revenue | $ | 101,887 | $ | 94,781 | $ | 104,144 | $ | 104,174 | $ | 404,986 | $ | 110,004 | $ | 114,230 | $ | 120,974 | $ | 121,155 | $ | 466,363 | $ | 128,040 | $ | 142,461 | $ | 147,794 | |||||||||||||||
|
Growth % |
15 | % | 0 | % | 4 | % | 8 | % | 7 | % | 8 | % | 21 | % | 16 | % | 16 | % | 15 | % | 16 | % | 25 | % | 22 | % | ||||||||||||||
GAAP On Demand Revenue | $ | 97,008 | $ | 91,606 | $ | 100,747 | $ | 101,261 | $ | 390,622 | $ | 106,460 | $ | 110,640 | $ | 116,772 | $ | 117,090 | $ | 450,962 | $ | 123,411 | $ | 136,610 | $ | 140,883 | |||||||||||||||
|
Growth % |
14 | % | 1 | % | 7 | % | 10 | % | 8 | % | 10 | % | 21 | % | 16 | % | 16 | % | 15 | % | 16 | % | 23 | % | 21 | % | ||||||||||||||
Acquisition-related and other deferred revenue | 1,324 | (207 | ) | (392 | ) | (290 | ) | 435 | (466 | ) | (532 | ) | (614 | ) | (545 | ) | (2,157 | ) | (343 | ) | (258 | ) | (161 | ) | |||||||||||||||||
Non-GAAP On Demand Revenue | $ | 98,332 | $ | 91,399 | $ | 100,355 | $ | 100,971 | $ | 391,057 | $ | 105,994 | $ | 110,108 | $ | 116,158 | $ | 116,545 | $ | 448,805 | $ | 123,068 | $ | 136,352 | $ | 140,722 | |||||||||||||||
|
Growth % |
15 | % | 1 | % | 5 | % | 9 | % | 7 | % | 8 | % | 20 | % | 16 | % | 15 | % | 15 | % | 16 | % | 24 | % | 21 | % | ||||||||||||||
On Premise Revenue | $ | 865 | $ | 826 | $ | 755 | $ | 648 | $ | 3,094 | $ | 741 | $ | 726 | $ | 834 | $ | 669 | $ | 2,970 | $ | 772 | $ | 687 | $ | 682 | |||||||||||||||
Professional & Other Revenue | $ | 2,690 | $ | 2,556 | $ | 3,034 | $ | 2,555 | $ | 10,835 | $ | 3,269 | $ | 3,396 | $ | 3,982 | $ | 3,941 | $ | 14,588 | $ | 4,200 | $ | 5,422 | $ | 6,390 | |||||||||||||||
Expenses ($000's) | |||||||||||||||||||||||||||||||||||||||||
Cost of Revenue | |||||||||||||||||||||||||||||||||||||||||
GAAP View | $ | 39,927 | $ | 42,115 | $ | 46,311 | $ | 46,518 | $ | 174,871 | $ | 47,562 | $ | 48,493 | $ | 51,740 | $ | 50,818 | $ | 198,613 | $ | 54,748 | $ | 62,078 | $ | 64,111 | |||||||||||||||
Stock-based expense | (1,007 | ) | (866 | ) | (1,141 | ) | (812 | ) | (3,826 | ) | (1,234 | ) | (1,216 | ) | (817 | ) | (779 | ) | (4,046 | ) | (751 | ) | (826 | ) | (929 | ) | |||||||||||||||
Amortization of intangible assets | (2,423 | ) | (2,447 | ) | (2,982 | ) | (2,860 | ) | (10,712 | ) | (2,814 | ) | (3,276 | ) | (4,052 | ) | (4,071 | ) | (14,213 | ) | (4,165 | ) | (4,141 | ) | (4,296 | ) | |||||||||||||||
Headquarters relocation costs | - | - | - | - | - | - | - | - | - | - | (584 | ) | (679 | ) | (760 | ) | |||||||||||||||||||||||||
Non-GAAP View | $ | 36,497 | $ | 38,802 | $ | 42,188 | $ | 42,846 | $ | 160,333 | $ | 43,514 | $ | 44,001 | $ | 46,871 | $ | 45,968 | $ | 180,354 | $ | 49,248 | $ | 56,432 | $ | 58,126 | |||||||||||||||
Depreciation | (1,858 | ) | (2,013 | ) | (2,311 | ) | (2,330 | ) | (8,512 | ) | (2,405 | ) | (2,433 | ) | (2,431 | ) | (2,533 | ) | (9,802 | ) | (2,692 | ) | (3,054 | ) | (2,834 | ) | |||||||||||||||
Adjusted EBITDA View | $ | 34,639 | $ | 36,789 | $ | 39,877 | $ | 40,516 | $ | 151,821 | $ | 41,109 | $ | 41,568 | $ | 44,440 | $ | 43,435 | $ | 170,552 | $ | 46,556 | $ | 53,378 | $ | 55,292 | |||||||||||||||
Product Development | |||||||||||||||||||||||||||||||||||||||||
GAAP View | $ | 14,841 | $ | 15,941 | $ | 17,528 | $ | 16,108 | $ | 64,418 | $ | 17,977 | $ | 18,084 | $ | 16,858 | $ | 15,880 | $ | 68,799 | $ | 17,272 | $ | 18,878 | $ | 18,743 | |||||||||||||||
Stock-based expense | (1,912 | ) | (2,144 | ) | (2,707 | ) | (1,874 | ) | (8,637 | ) | (2,719 | ) | (2,572 | ) | (1,759 | ) | (1,535 | ) | (8,585 | ) | (1,449 | ) | (1,897 | ) | (1,900 | ) | |||||||||||||||
Asset impairment and loss on disposal of assets | - | - | - | - | - | (599 | ) | (202 | ) | (532 | ) | (85 | ) | (1,418 | ) | - | - | - | |||||||||||||||||||||||
Headquarters relocation costs | - | - | - | - | - | - | - | - | - | - | (154 | ) | (176 | ) | (211 | ) | |||||||||||||||||||||||||
Non-GAAP View | $ | 12,929 | $ | 13,797 | $ | 14,821 | $ | 14,234 | $ | 55,781 | $ | 14,659 | $ | 15,310 | $ | 14,567 | $ | 14,260 | $ | 58,796 | $ | 15,669 | $ | 16,805 | $ | 16,632 | |||||||||||||||
Depreciation | (1,043 | ) | (1,171 | ) | (1,319 | ) | (1,375 | ) | (4,908 | ) | (1,256 | ) | (1,415 | ) | (1,201 | ) | (1,407 | ) | (5,279 | ) | (1,200 | ) | (1,462 | ) | (1,502 | ) | |||||||||||||||
Adjusted EBITDA View | $ | 11,886 | $ | 12,626 | $ | 13,502 | $ | 12,859 | $ | 50,873 | $ | 13,403 | $ | 13,895 | $ | 13,366 | $ | 12,853 | $ | 53,517 | $ | 14,469 | $ | 15,343 | $ | 15,130 | |||||||||||||||
Sales & Marketing | |||||||||||||||||||||||||||||||||||||||||
GAAP View | $ | 25,991 | $ | 28,030 | $ | 29,949 | $ | 27,593 | $ | 111,563 | $ | 29,113 | $ | 30,887 | $ | 32,698 | $ | 30,410 | $ | 123,108 | $ | 32,199 | $ | 35,129 | $ | 33,860 | |||||||||||||||
Stock-based expense | (3,143 | ) | (3,101 | ) | (3,774 | ) | (2,948 | ) | (12,966 | ) | (3,789 | ) | (3,843 | ) | (3,118 | ) | (2,246 | ) | (12,996 | ) | (2,974 | ) | (3,799 | ) | (1,406 | ) | |||||||||||||||
Amortization of intangible assets | (2,892 | ) | (2,847 | ) | (2,875 | ) | (2,886 | ) | (11,500 | ) | (2,766 | ) | (2,803 | ) | (2,875 | ) | (2,720 | ) | (11,164 | ) | (2,946 | ) | (3,596 | ) | (3,551 | ) | |||||||||||||||
Headquarters relocation costs | - | - | - | - | - | - | - | - | - | - | (170 | ) | (184 | ) | (220 | ) | |||||||||||||||||||||||||
Non-GAAP View | $ | 19,956 | $ | 22,082 | $ | 23,300 | $ | 21,759 | $ | 87,097 | $ | 22,558 | $ | 24,241 | $ | 26,705 | $ | 25,444 | $ | 98,948 | $ | 26,109 | $ | 27,550 | $ | 28,683 | |||||||||||||||
Depreciation | (407 | ) | (479 | ) | (555 | ) | (478 | ) | (1,919 | ) | (499 | ) | (556 | ) | (538 | ) | (577 | ) | (2,170 | ) | (606 | ) | (615 | ) | (593 | ) | |||||||||||||||
Adjusted EBITDA View | $ | 19,549 | $ | 21,603 | $ | 22,745 | $ | 21,281 | $ | 85,178 | $ | 22,059 | $ | 23,685 | $ | 26,167 | $ | 24,867 | $ | 96,778 | $ | 25,503 | $ | 26,935 | $ | 28,090 | |||||||||||||||
General & Administrative | |||||||||||||||||||||||||||||||||||||||||
GAAP View | $ | 20,929 | $ | 16,819 | $ | 15,443 | $ | 16,011 | $ | 69,202 | $ | 18,336 | $ | 20,037 | $ | 13,424 | $ | 17,017 | $ | 68,814 | $ | 18,346 | $ | 21,932 | $ | 21,677 | |||||||||||||||
Stock-based expense | (3,163 | ) | (3,922 | ) | (1,914 | ) | (2,622 | ) | (11,621 | ) | (3,005 | ) | (3,619 | ) | (2,975 | ) | (2,896 | ) | (12,495 | ) | (3,217 | ) | (4,215 | ) | (4,020 | ) | |||||||||||||||
Amortization of intangible assets | - | (192 | ) | - | - | (192 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Asset impairment and loss on disposal of assets | (20 | ) | - | (16 | ) | (350 | ) | (386 | ) | 7 | (1,482 | ) | (160 | ) | (17 | ) | (1,652 | ) | - | (85 | ) | (164 | ) | ||||||||||||||||||
Acquisition-related income (expense) | (881 | ) | (357 | ) | (860 | ) | 111 | (1,987 | ) | (1,092 | ) | (565 | ) | 3,310 | 188 | 1,841 | 57 | 9 | 266 | ||||||||||||||||||||||
Headquarters relocation costs | - | - | - | - | - | - | - | - | - | - | (117 | ) | (135 | ) | (162 | ) | |||||||||||||||||||||||||
Litigation-related expense | (4,677 | ) | (168 | ) | (39 | ) | (31 | ) | (4,915 | ) | (2 | ) | - | - | - | (2 | ) | - | - | - | |||||||||||||||||||||
Non-GAAP View | $ | 12,188 | $ | 12,180 | $ | 12,614 | $ | 13,119 | $ | 50,101 | $ | 14,244 | $ | 14,371 | $ | 13,599 | $ | 14,292 | $ | 56,506 | $ | 15,069 | $ | 17,506 | $ | 17,597 | |||||||||||||||
Depreciation | (880 | ) | (917 | ) | (920 | ) | (844 | ) | (3,561 | ) | (871 | ) | (780 | ) | (816 | ) | (796 | ) | (3,263 | ) | (998 | ) | (1,347 | ) | (1,276 | ) | |||||||||||||||
Other (Income)/Expense | (3 | ) | (4 | ) | (4 | ) | (4 | ) | (15 | ) | - | 82 | - | - | 82 | (11 | ) | (16 | ) | (15 | ) | ||||||||||||||||||||
Adjusted EBITDA View | $ | 11,305 | $ | 11,259 | $ | 11,690 | $ | 12,271 | $ | 46,525 | $ | 13,373 | $ | 13,673 | $ | 12,783 | $ | 13,496 | $ | 53,325 | $ | 14,060 | $ | 16,143 | $ | 16,306 | |||||||||||||||
Profitability ($000's) | |||||||||||||||||||||||||||||||||||||||||
GAAP Net Income (Loss) | $ | (836 | ) | $ | (6,291 | ) | $ | (3,257 | ) | $ | 110 | $ | (10,274 | ) | $ | (1,608 | ) | $ | (3,318 | ) | $ | (8,192 | ) | $ | 3,900 | $ | (9,218 | ) | $ | 2,996 | $ | 2,083 | $ | 4,210 | |||||||
Acquisition-related and other deferred revenue | 1,324 | (207 | ) | (392 | ) | (290 | ) | 435 | (466 | ) | (532 | ) | (614 | ) | (545 | ) | (2,157 | ) | (343 | ) | (258 | ) | (161 | ) | |||||||||||||||||
Depreciation, asset impairment, and loss on disposal of assets | 4,209 | 4,581 | 5,121 | 5,377 | 19,288 | 6,150 | 6,868 | 25,952 | 5,415 | 44,385 | 5,496 | 6,563 | 7,119 | ||||||||||||||||||||||||||||
Amortization of intangible assets | 5,315 | 5,486 | 5,857 | 5,746 | 22,404 | 5,580 | 6,079 | 6,927 | 6,791 | 25,377 | 7,111 | 7,737 | 7,847 | ||||||||||||||||||||||||||||
Acquisition-related (income) expense | 881 | 357 | 860 | (111 | ) | 1,987 | 1,092 | 565 | (3,310 | ) | (188 | ) | (1,841 | ) | (57 | ) | (9 | ) | (266 | ) | |||||||||||||||||||||
Interest expense, net | 224 | 207 | 349 | 337 | 1,117 | 267 | 308 | 391 | 401 | 1,367 | 719 | 1,090 | 1,079 | ||||||||||||||||||||||||||||
Income tax expense (benefit) | (511 | ) | (1,830 | ) | (1,783 | ) | (2,209 | ) | (6,333 | ) | (1,704 | ) | 189 | (5,605 | ) | 3,274 | (3,846 | ) | 2,114 | 1,545 | 3,540 | ||||||||||||||||||||
Litigation-related expense | 4,677 | 168 | 39 | 31 | 4,915 | 2 | - | - | - | 2 | - | - | - | ||||||||||||||||||||||||||||
Headquarters relocation costs | - | - | - | - | - | - | - | - | - | - | 1,025 | 1,174 | 1,353 | ||||||||||||||||||||||||||||
Stock-based expense | 9,225 | 10,033 | 9,536 | 8,256 | 37,050 | 10,747 | 11,250 | 8,669 | 7,456 | 38,122 | 8,391 | 10,737 | 8,255 | ||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 24,508 | $ | 12,504 | $ | 16,330 | $ | 17,247 | $ | 70,589 | $ | 20,060 | $ | 21,409 | $ | 24,218 | $ | 26,504 | $ | 92,191 | $ | 27,452 | $ | 30,662 | $ | 32,976 | |||||||||||||||
|
Margin |
24 | % | 13 | % | 16 | % | 17 | % | 17 | % | 18 | % | 19 | % | 20 | % | 22 | % | 20 | % | 21 | % | 22 | % | 22 | % | ||||||||||||||
Non-GAAP On Demand Revenue Detail ($000's) | |||||||||||||||||||||||||||||||||||||||||
Property Management | $ | 28,868 | $ | 29,622 | $ | 31,260 | $ | 31,683 | $ | 121,433 | $ | 32,731 | $ | 33,736 | $ | 35,224 | $ | 35,548 | $ | 137,239 | $ | 36,282 | $ | 38,467 | $ | 39,023 | |||||||||||||||
% of Total |
30 |
% | 32 | % | 31 | % | 31 | % | 31 | % | 31 | % |
30 |
% | 30 | % | 31 | % | 31 | % | 29 | % | 28 | % | 28 | % | |||||||||||||||
Y-O-Y growth | 15 | % | 11 | % | 10 | % | 12 | % | 12 | % | 13 | % | 14 | % | 13 | % | 12 | % | 13 | % | 11 | % | 14 | % | 11 | % | |||||||||||||||
Resident Services | $ | 26,910 | $ | 22,626 | $ | 28,898 | $ | 31,672 | $ | 110,106 | $ | 33,064 | $ | 34,037 | $ | 38,775 | $ | 40,262 | $ | 146,138 | $ | 45,071 | $ | 54,613 | $ | 58,351 | |||||||||||||||
% of Total | 27 | % | 25 | % | 29 | % | 31 | % | 28 | % | 31 | % | 31 | % | 33 | % | 35 | % | 33 | % | 37 | % | 40 | % | 41 | % | |||||||||||||||
Y-O-Y growth | 21 | % | -7 | % | 18 | % | 29 | % | 15 | % | 23 | % | 50 | % | 34 | % | 27 | % | 33 | % | 36 | % | 60 | % | 50 | % | |||||||||||||||
Leasing and Marketing | $ | 32,427 | $ | 28,945 | $ | 29,805 | $ | 27,006 | $ | 118,183 | $ | 29,369 | $ | 30,690 | $ | 30,115 | $ | 28,523 | $ | 118,697 | $ | 28,925 | $ | 29,618 | $ | 29,451 | |||||||||||||||
% of Total | 33 | % | 32 | % | 30 | % | 27 | % | 30 | % | 28 | % | 28 | % | 26 | % | 24 | % | 26 | % | 24 | % | 22 | % | 21 | % | |||||||||||||||
Y-O-Y growth | 10 | % | -6 | % | -11 | % | -11 | % | -5 | % | -9 | % | 6 | % | 1 | % | 6 | % | 0 | % | -2 | % | -3 | % | -2 | % | |||||||||||||||
Asset Optimization | $ | 10,127 | $ | 10,206 | $ | 10,392 | $ | 10,610 | $ | 41,335 | $ | 10,830 | $ | 11,645 | $ | 12,044 | $ | 12,212 | $ | 46,731 | $ | 12,790 | $ | 13,654 | $ | 13,897 | |||||||||||||||
% of Total | 10 | % | 11 | % | 10 | % | 11 | % | 11 | % | 10 | % | 11 | % |
11 |
% | 10 | % | 10 | % | 10 | % | 10 | % | 10 | % | |||||||||||||||
Y-O-Y growth | 19 | % | 15 | % | 10 | % | 10 | % | 13 | % | 7 | % | 14 | % | 16 | % | 15 | % | 13 | % | 18 | % | 17 | % | 15 | % | |||||||||||||||
Non-GAAP On Demand Revenue Detail ($000's) | |||||||||||||||||||||||||||||||||||||||||
Subscription | $ | 82,126 | $ | 82,420 | $ | 87,012 | $ | 92,326 | $ | 343,884 | $ | 93,984 | $ | 97,256 | $ | 102,946 | $ | 105,025 | $ | 399,211 | $ | 110,464 | $ | 123,404 | $ | 127,155 | |||||||||||||||
% of Total | 84 | % | 90 | % | 87 | % | 91 | % | 88 | % | 89 | % | 88 | % | 89 | % | 90 | % | 89 | % | 90 | % | 91 | % | 90 | % | |||||||||||||||
Y-O-Y growth | 18 | % | 12 | % | 14 | % | 17 | % | 15 | % | 14 | % | 18 | % | 18 | % | 14 | % | 16 | % | 18 | % | 27 | % | 24 | % | |||||||||||||||
Transactional | $ | 16,206 | $ | 8,979 | $ | 13,343 | $ | 8,645 | $ | 47,173 | $ | 12,010 | $ | 12,852 | $ | 13,212 | $ | 11,520 | $ | 49,594 | $ | 12,604 | $ | 12,948 | $ | 13,567 | |||||||||||||||
% of Total | 16 | % | 10 | % | 13 | % | 9 | % | 12 | % | 11 | % | 12 | % | 11 | % | 10 | % | 11 | % | 10 | % | 9 | % | 10 | % | |||||||||||||||
Y-O-Y growth | 2 | % | -48 | % | -31 | % | -38 | % | -29 | % | -26 | % | 43 | % | -1 | % | 33 | % | 5 | % | 5 | % | 1 | % | 3 | % | |||||||||||||||
ACV | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP On Demand Annual Customer Value ($000's) | $ | 398,976 | $ | 367,249 | $ | 404,055 | $ | 405,248 | $ | 427,091 | $ | 453,700 | $ | 466,917 | $ | 469,748 | $ | 529,052 | $ | 548,917 | $ | 565,700 | |||||||||||||||||||
|
Total ACV Growth (QTD) |
14 | % | 1 | % | 5 | % | 7 | % | 7 | % | 24 | % | 16 | % | 16 | % | 24 | % | 21 | % | 21 | % | ||||||||||||||||||
|
Organic ACV Growth (QTD) |
13 | % | -1 | % | 3 | % | 6 | % | 6 | % | 19 | % | 13 | % | 13 | % | 10 | % | 11 | % | 10 | % | ||||||||||||||||||
Unit Trend | |||||||||||||||||||||||||||||||||||||||||
On Demand Units - Ending (000's) | 9,285 | 9,371 | 9,496 | 9,560 | 9,700 | 10,302 | 10,406 | 10,568 | 10,999 | 11,141 | 11,251 | ||||||||||||||||||||||||||||||
Average Unit Renewal Rate | |||||||||||||||||||||||||||||||||||||||||
Average Renewal Rate (8 quarters) | 95.2 | % | 95.1 | % | 95.3 | % | 95.3 | % | 95.6 | % | 95.8 | % | 96.3 | % | 96.6 | % | 96.9 | % | 97.0 | % | 97.0 | % | |||||||||||||||||||
RPU | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP On Demand RPU (QTD) (whole $) | $ | 42.97 | $ | 39.19 | $ | 42.55 | $ | 42.39 | $ | 44.03 | $ | 44.04 | $ | 44.87 | $ | 44.45 | $ | 48.10 | $ | 49.27 | $ | 50.28 | |||||||||||||||||||
Top ACV / RPU | |||||||||||||||||||||||||||||||||||||||||
Top 100 ACV ($000's) | $ | 184,204 | $ | 184,181 | $ | 187,588 | $ | 183,478 | $ | 187,650 | $ | 197,036 | $ | 202,882 | $ | 204,175 | $ | 232,031 | $ | 240,850 | $ | 245,947 | |||||||||||||||||||
Top 100 ACV RPU | $ | 57.48 | $ | 59.12 | $ | 60.68 | $ | 59.30 | $ | 59.99 | $ | 60.07 | $ | 62.17 | $ | 62.96 | $ | 71.02 | $ | 69.68 | $ | 72.63 | |||||||||||||||||||
Top 50 RPU Clients RPU | $ | 136.60 | $ | 141.90 | $ | 142.10 | $ | 146.71 | $ | 150.03 | $ | 157.46 | $ | 161.12 | $ | 162.25 | $ | 168.58 | $ | 172.32 | $ | 177.21 | |||||||||||||||||||
Industry Data (1) | |||||||||||||||||||||||||||||||||||||||||
Occupancy | 95.1 | % | 95.6 | % | 95.8 | % | 95.5 | % | 95.5 | % | 96.0 | % | 96.2 | % | 95.9 | % | 95.8 | % | 96.2 | % | 96.5 | % | |||||||||||||||||||
Annual Change in effective rents | 3.2 | % | 3.4 | % | 3.7 | % | 4.6 | % | 4.5 | % | 4.9 | % | 5.6 | % | 4.8 | % | 5.0 | % | 4.5 | % | 4.0 | % | |||||||||||||||||||
Ongoing construction (thousands of units) | 453.2 | 472.8 | 476.9 | 485.5 | 514.3 | 552.4 | 566.2 | 581.4 | 596.5 | 599.3 | 561.1 | ||||||||||||||||||||||||||||||
|
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Supply | 202.3 | 228.1 | 252.4 | 259.6 | 268.5 | 248.6 | 241.7 | 232.4 | 233.5 | 252.6 | 261.1 | ||||||||||||||||||||||||||||||
Headcount | |||||||||||||||||||||||||||||||||||||||||
Total Ending RP Headcount | 3,506 | 3,758 | 3,757 | 3,875 | 3,898 | 3,936 | 4,051 | 4,122 | 4,445 | 4,707 | 4,413 | ||||||||||||||||||||||||||||||
Total International Headcount (included above) | 977 | 1,153 | 1,216 | 1,363 | 1,393 | 1,425 | 1,585 | 1,647 | 1,694 | 1,938 | 1,845 | ||||||||||||||||||||||||||||||
% International Headcount |
28 | % | 31 | % | 32 | % | 35 | % | 36 | % | 36 | % | 39 | % | 40 | % | 38 | % | 41 | % | 42 | % | |||||||||||||||||||
(1) Based on information from MPF Research. Numbers can fluctuate based on data revisions/reclassifications as well as shifts in construction start or finish dates. |
Explanation of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures
In the company’s earnings releases, conference call remarks, slide presentations, fact sheets, and webcasts, the company may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release. For such non-GAAP reconciliations, please reference the press release titled “RealPage Reports Second Quarter 2016 Financial Results,” the Investor Relations section of www.realpage.com, and the company’s most recent SEC filings.
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 and other deferred revenue adjustments. The company believes it is useful to include deferred revenue written down for GAAP purposes under purchase accounting rules and revenue deferred due to a lack of historical experience determining the settlement of the contractual obligation 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 and other deferred revenue adjustments, (2) depreciation, (3) amortization of intangible assets, (4) headquarters relocation costs, and (5) stock-based expense; and the company defines “Adjusted Gross Margin” as Adjusted Gross Profit as a percentage of Non-GAAP Total Revenue. 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 and other deferred revenue adjustments, (2) depreciation, asset impairment, and the loss on disposal of assets, (3) amortization of intangible assets, (4) acquisition-related expense (income), (5) interest expense, net, (6) income tax expense (benefit), (7) litigation-related expense, (8) headquarters relocation costs, and (9) stock-based expense; and the company defines “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage Non-GAAP Total Revenue. 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 (1) asset impairment and loss on disposal of assets, (2) headquarters relocation costs, and (3) stock-based expense; and the company defines “Non-GAAP Product Development Margin” as Non-GAAP Product Development Expense as a percentage of Non-GAAP Total Revenue. 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 (1) amortization of intangible assets, (2) headquarters relocation costs, and (3) stock-based expense; and the company defines “Non-GAAP Sales and Marketing Margin” as Non-GAAP Sales and Marketing Expense as a percentage of Non-GAAP Total Revenue. 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 (income), (3) litigation-related expense, (4) headquarters relocation costs, and (5) stock-based expense; and the company defines “Non-GAAP General and Administrative Margin” as Non-GAAP General and Administrative Expense as a percentage of Non-GAAP Total Revenue. 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) acquisition-related expense (income), (3) litigation-related expense, (4) headquarters relocation costs, and (5) stock-based expense; and the company defines “Non-GAAP Operating Expense Margin” as Non-GAAP Operating Expense as a percentage of Non-GAAP Total Revenue. 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 (loss), plus (1) acquisition-related and other deferred revenue, (2) asset impairment and loss on disposal of assets, (3) amortization of intangible assets, (4) acquisition-related expense (income), (5) litigation-related expense, (6) headquarters relocation costs, and (7) stock-based expense; and the company defines “Non-GAAP Operating Margin” as Non-GAAP Operating Income as a percentage of Non-GAAP Total Revenue. 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 (loss), plus (1) income tax expense, (2) acquisition-related and other deferred revenue, (3) asset impairment and loss on disposal of assets, (4) amortization of intangible assets, (5) acquisition-related expense (income), (6) litigation-related expense, (7) headquarters relocation costs, (8) stock-based expense, and (9) provision for income tax expense based on an assumed rate in order to approximate the company’s long-term effective corporate tax rate; and the company defines “Non-GAAP Net Income per Diluted Share” as Non-GAAP Net Income divided by 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 On Demand Revenue” as total revenue plus acquisition-related and other deferred revenue adjustments. The company believes it is useful to include deferred revenue written down for GAAP purposes under purchase accounting rules and revenue deferred due to a lack of historical experience determining the settlement of the contractual obligation 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 customers 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 customers’ properties is updated or supplemented, which could result in adjustments to the number of units previously reported.
The company defines “RPU,” or Revenue Per Unit, as Non-GAAP On Demand Revenue divided by average on demand units for the same period. For interim periods, the calculation is performed on an annualized basis. The company calculates average on demand units as the average of the beginning and ending on demand units for each quarter in the period presented. The company monitors this metric to measure its success in increasing the number of on demand software solutions utilized by its customers to manage their rental housing units, its overall revenue and profitability.
The company defines “ACV,” or Annual Client Value, as RPU multiplied by Ending On Demand Units. The company monitors this metric to measure its success in increasing the number of on demand units and the amount of software solutions utilized by its customers to manage their rental housing units. In addition, the company believes ACV provides a useful proxy for the annual run-rate value of on demand customer relationships.
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: