EX-99.3 4 a51453059ex99_3.htm EXHIBIT 99.3

Exhibit 99.3

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Q3 2016 EARNINGS NOVEMBER 2016


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FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking” statements relating to RealPage, Inc.’s expected, possible or assumed future results; expectations regarding continued investment in product development initiatives and their effects on future product innovation and efficiency in delivering the RealPage platform to clients; and RealPage’s long-term revenue and adjusted EBITDA margin objectives. 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. Those 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. 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 customer cancellations; (d) the inability to increase sales to existing customers and to attract new customers; (e) RealPage, Inc.’s failure to integrate acquired businesses and any future acquisitions successfully or to achieve expected synergies; (f) the timing and success of new product introductions by RealPage, Inc. or its competitors; (g) changes in RealPage, Inc.’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; and (j) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission (“SEC”) by RealPage Inc., including its Quarterly Report on Form 10-Q previously filed with the SEC on August 3, 2016. 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.In the company’s earnings releases, conference call remarks, slide presentations, 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 presentation. For such non-GAAP reconciliations, please reference this presentation, the Investor Relations section of www.realpage.com, and the company’s most recent SEC filings.. A reconciliation between GAAP and non-GAAP measures is included in the appendix to this presentation and is available on the Investor Relations portion of the website www.realpage.com. This presentation should also be used in conjunction with the company’s IR Fact Sheet and “Explanation of Non-GAAP Financial Measures,” both previously furnished to the SEC by Form 8-K filed on August 3, 2016.RealPage is a registered trademark of RealPage, Inc. This presentation also contains additional trademarks and service marks of ours and of other companies. We do not intend our use or display of other companies’ trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies. 2


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STEVE WINNCHAIRMAN & CEO


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REALPAGE OVERVIEW 4 Strong Q3’16 financial performanceQ3’16 Non-GAAP total revenue growth of 22%Q3’16 Non-GAAP on demand subscription growth of 24%Q3’16 operating cash flow growth of 126%Q3’16 Adjusted EBITDA growth of 36%230 basis point of expansion YOY


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PLATFORM STRATEGY GAINING STEAM 5 Vision: Enabling property owners and managers to leverage our massive data analytics capabilities and comprehensive suite of solutions to fundamentally transform the operational and transactional elements of their businesses to outperformSignificant multiple solution suite deals ~ new logo and expansion, BI & Accounting driving20,000+ units ~ 34,000 unit client began to deploy ~20 solutions with initial RPU of $505,000 – 20,000 units ~ 1 new logo deal with 6,000 unit client to deploy ~10 solutions with initial RPU of nearly $80Less than 5,000 units ~ 2 new logo and 1 expansion deal – all suite deals deploying at least 15 solutions


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RENTAL HOUSING CONTINUES TO TEST PEAK OCCUPANCY LEVELS ~ SOFTNESS IN CERTAIN METROS 6 Occupancy at 96.5% in Q3’16Occupancy at peak rate for current economic cycleRents grew 4.0% in Q3’16Rents positive for 25 consecutive quarters~560,000 units under construction2016 completions expected to top 300,000 for first time in three decadesMomentum in certain markets beginning to shift ~ seeing penalties from product / investment mistakesFloor plan mixAmenitiesLocation Occupancy Annual Change in Effective Rents


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PROPERTY MANAGEMENT 7 Non-GAAP on demand revenue grew 11% YOY in Q3’16OneSite achieved solid growthAccounting achieving solid traction ~ driving multiple solution suite dealseSupply + OpsTechnology = powerful tool for optimizing operational spendCompliance Monitoring adoption continuesSmart Source contributing to YOY growth ~ international labor opportunity


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Non-GAAP on demand product family revenue grew 50% YOY in Q3’16NWP, Renter’s Insurance, Payments, Resident Portal driving categoryIntegrating NWP & Velocity to include best of both platformsNWP synergies ahead of schedulePurchase valuation slightly under 6x EBITDA as of Q3’16Expect more synergies in 2017Industry continues to focus on resident experience ~ Resident Portal benefits RESIDENT SERVICES 8


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ASSET OPTIMIZATION 9 Non-GAAP on demand product family revenue grew 15% YOY in Q3’16Growth driven by YieldStar® and Business IntelligenceBI solutions are major competitive differentiator ~ driving multiple solution suite deals


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LEASING & MARKETING 10 Non-GAAP on demand product family revenue declined 2% YOY in Q3’16Screening, Online Leasing and Websites experience growthContact Center headwinds continue, but new sales bookings highest since Q1’14Divested ILS and senior living referral services to nation’s leading referral service ~ margin and capital allocation driven decisionCommitted to senior market excluding paid lead generationNew 5,000 unit senior client deploying ~10 solutions with starting RPU of ~$65


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SALES FORCE 11 Highest booking dollar level since Q4’14Tenured sales forceMost compelling product suite everIncreased client demandResident Services, Leasing & Marketing driving growth in bookingsOptimizing sales force team Signs of sales force productivity improvement


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Strong financial performance ~ profit levels outperformingMultifamily market experiencing softness in certain geographic areas ~ could translate to modest Leasing & Marketing acceleration, particularly in Contact CenterData-centric & suite strategy driving broader client adoptionContinue innovation investments ~ still expect to achieve margin expansion in line with our goalEarly traction on 2020 goal of $1 billion in revenue and 30% adjusted EBITDA marginBalanced strategy of top-line growth and profitability SUMMARY 12


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BRYAN HILLCFO & TREASURER


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Strong Q3’16 performance reflects Power & scale of RealPage platformSuccess of acquisition strategyUnique ability to leverage massive real-time transaction data & sales force footprintNon-GAAP total revenue of $147.8 million – 22% YOY growth compared to Q3‘15Adjusted EBITDA expands 230 basis points YOYNon-GAAP diluted earnings per diluted share growth of 33% compared to Q3’15YTD FCF ROIC of 25%+ FINANCIAL SUMMARY 14


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FINANCIAL SUMMARY Non-GAAP on demand revenue of $140.7 million – 21% YOY growth compared to Q3’15Subscription = 90% and grew 24% YOYBroad-based revenue tractionResident Services – 50% YOY growthProperty Management – 11% YOY growthAsset Optimization – 15% YOY growth 15


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LAND AND EXPAND Total ACV of $566 million – 21% YOY growthTop 100 average RPU of $73 in Q3‘16Consistent growth across all client segments20,000+ CAGR of 10% (2012 – 2015)5,000 – 20,000 CAGR of 11% (2012 – 2015)Below 5,000 CAGR of 15% (2012 – 2015) 2012 2013 2014 2015 Q3’16 ACV $333.0 $378.1 $405.2 $469.7 $565.7 Units 8.1 9.0 9.6 10.6 11.3 RPU $41.05 $41.91 $42.39 $44.45 $50.28 16


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TOP 50 RPU 17 RPU range of $134 to $267Average $177 in RPU in Q3’16Broad distribution acrossclient categories for Q3’16Top 50 average RPU 3.5x aggregate RPU of $50


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PROFITABILITY Q3‘16 Efficiency gains across businessAdjusted gross margin diluted by 220 bp from NWPNon-GAAP operating expense margin improved 280 bp YOY to lowest level in company historyAdjusted EBITDA margin expansion of 230 bp YOY ~ disciplined cost containment strategiesHighly focused on continued margin expansionNon-GAAP net income per diluted share of $0.20 ~ YOY growth of 33% 18


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LIQUIDITY & OPERATING CASH FLOW Cash flow from operations grew 126% YOY, includes $14 million benefit related to tenant improvement reimbursementsCapex elevated for headquarters ~ expected to return to 5% of revenue in 2017 and beyondRepurchased nearly 3.8 million shares program to date (millions) Q3 2015 Q3 2016 Balance sheet Cash and Cash equivalents $18.6 $69.1 Debt $44.0 $122.9 Cash Flow Operating Cash Flow $19.7 $44.5 Capital Expenditures $7.5 $22.5 19


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2016 EXPECTATIONS FY’16 Adjusted EBITDA of $124.5 million to $126 million – increase of $1.8 million from August 3, 2016 outlookFY’16 Non-GAAP EPS of $0.73 to $0.75 – increase of $0.02 from August 3, 2016 outlookFY‘16 Non-GAAP total revenue of $566 million to $569 million – midpoint assumes 22% YOY growth$1.0 million in revenue expected from senior living ILS and referral services prior to saleSlightly ahead of 15% revenue growth rate for 2020 goal of $1 billion in revenue 20 * - Recently, the U.S. Securities and Exchange Commission staff issued new guidance regarding the use of non-GAAP financial measures. While the company has reconciled guidance as part of its “Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures” as set forth in this presentation, the company believes that revising the guidance bullets mid-year during 2016 to present the GAAP equivalent may confuse our stockholders and the investment community. As a result, the company plans to present both the non-GAAP financial measure and the applicable GAAP financial measure in its guidance bullets beginning with the release of its fiscal year 2017 guidance.


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APPENDIX


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22 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES


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23 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES


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24 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES


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25 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES


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26 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES


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27 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES


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28 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES