8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549 FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) ofThe Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)   November 2, 2017

REALPAGE, INC. (Exact name of registrant as specified in its charter)

Delaware	001-34846	75-2788861
(State or other jurisdiction of incorporation)	(Commission  File Number)	(IRS Employer Identification No.)

2201 Lakeside Blvd.  Richardson, Texas	75082
(Address of principal executive offices)	(Zip Code)

(972) 820-3000  (Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02 Results of Operations and Financial Condition.

On November 2, 2017, RealPage, Inc. (the "Company") issued a press release reporting its financial results for its fiscal quarter ended September 30, 2017. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 7.01 Regulation FD Disclosure.

IR Fact Sheet

On November 2, 2017, the Company published an updated IR Fact Sheet on the Investor Relations section of the Company's website located at http://investor.realpage.com/.  A copy of the IR Fact Sheet is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.  

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	RealPage, Inc. Press Release dated November 2, 2017 reporting financial results for its fiscal quarter ended September 30, 2017.
99.2	RealPage, Inc. IR Fact Sheet dated November 2, 2017.

The information furnished by this Current Report on Form 8-K under Items 2.02 and 7.01 and the Exhibits 99.1 and 99.2 attached hereto shall be deemed furnished and not "filed" for purposes of Section 18 of the Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		REALPAGE, INC.
	By:	/s/ Stephen T. Winn
		Stephen T. Winn
		Chief Executive Officer, President and Chairman
Date: November 2, 2017

EXHIBIT INDEX

Exhibit Number	Description
99.1	RealPage, Inc. Press Release dated November 2, 2017 reporting financial results for its fiscal quarter ended September 30, 2017.
99.2	RealPage, Inc. IR Fact Sheet dated November 2, 2017.

EX-99.1

Exhibit 99.1

RealPage Reports Third Quarter 2017 Financial Results

RICHARDSON, Texas--(BUSINESS WIRE)--November 2, 2017--RealPage, Inc. (NASDAQ:RP), a leading global provider of software and data analytics to the real estate industry, today announced financial results for the third quarter ended September 30, 2017.

Third Quarter 2017 Financial Highlights

• Total revenue of $169.1 million, an increase of 14% year-over-year;
• Net income of $6.8 million, or $0.08 in net income per diluted share, a year-over-year increase of 62% and 60%, respectively;
• Non-GAAP total revenue of $169.8 million, an increase of 15% year-over-year;
• Adjusted EBITDA of $40.0 million, an increase of 21% year-over-year; and
• Non-GAAP net income of $18.4 million, or $0.22 in non-GAAP net income per diluted share, a year-over-year increase of 19% and 10%, respectively.

Comments on the News

“We achieved strong revenue growth, strong profit growth and record new sales bookings during the third quarter,” said Steve Winn, Chairman and CEO of RealPage. “We are quickly integrating our 2017 acquisitions, accelerating the achievement of synergy objectives. We are also seeing results from past investments and continue to invest across our platform to drive innovation and future revenue growth. All of these areas underscore our progress helping rental real estate owners translate actionable insights into improved operational and transactional yields.”

“Our third quarter revenue and adjusted EBITDA performance was in-line to slightly higher than our guidance when excluding the $3.4 million impact on renters’ insurance revenue from hurricanes Harvey and Irma,” said Bryan Hill, CFO and Treasurer of RealPage. “Third quarter financial performance further supports our progression towards our 2020 goal of $1 billion in revenue and $300 million of adjusted EBITDA.”

2017 Financial Outlook

The company continues to exclude from its outlook any impact related to its pending acquisition of LRO® (Lease Rent Options) until the closing date can be determined.

RealPage management expects to achieve the following results during the fourth quarter ended December 31, 2017:

• GAAP total revenue is expected to be in the range of $182.7 million to $185.7 million;
• GAAP net income per diluted share is expected to be in the range of $0.09 to $0.12;
• Non-GAAP total revenue is expected to be in the range of $183.2 million to $186.2 million;
• Adjusted EBITDA is expected to be in the range of $44.0 million to $45.5 million;
• Non-GAAP net income per diluted share is expected to be in the range of $0.25 to $0.26;
• Weighted average shares outstanding are expected to be approximately 83.3 million.

RealPage management expects to achieve the following results during the calendar year ended December 31, 2017:

• GAAP total revenue is expected to be in the range of $666.0 million to $669.0 million;
• GAAP net income per diluted share is expected to be in the range of $0.35 to $0.38;
• Non-GAAP total revenue is expected to be in the range of $668.8 million to $671.8 million;
• Adjusted EBITDA is expected to be in the range of $160.5 million to $162.0 million;
• Non-GAAP net income per diluted share is expected to be in the range of $0.91 to $0.92;
• Weighted average shares outstanding are expected to be approximately 82.3 million.

Conference Call Information; Presentation Slides

The Company will host a conference call at 5 p.m. ET today to discuss its financial results. Participants are encouraged to listen to the presentation via a live web broadcast and view the earnings presentation at www.realpage.com on the Investor Relations section. In addition, a live dial-in is available domestically at 844-889-4333 and internationally at 412-717-9596. A replay will be available at 877-344-7529 or 412-317-0088, passcode 10113863, until November 9, 2017.

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 nearly 12,500 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 and focus, expected, possible or assumed future results including its financial outlook for the fourth quarter and calendar year ending December 31, 2017, possible timing and results of pending acquisitions, anticipated speed and success of our acquisition integration efforts and the achievement of related synergy objectives, the expected results of our investments to drive innovation and future revenue growth, and RealPage’s long-term revenue and adjusted EBITDA margin goals. 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 client cancellations; (d) the inability to increase sales to existing clients and to attract new clients; (e) RealPage’s failure to integrate acquired businesses and any recent or future acquisitions successfully or to achieve expected synergies, including the timing and completion of the pending acquisition of LRO; (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; 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, including its Annual Report on Form 10-K previously filed with the SEC on March 1, 2017 and its Quarterly Report on Form 10-Q filed on August 4, 2017. 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 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. 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) costs related to the Hart-Scott-Rodino review process, (6) interest expense, net, (7) income tax expense (benefit), (8) headquarters relocation costs, and (9) 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 (1) headquarters relocation costs, and (2) 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 (1) amortization of intangible assets, (2) headquarters relocation costs, 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 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) loss on disposal of assets, (2) acquisition-related expense (income), (3) costs related to the Hart-Scott-Rodino review process, (4) headquarters relocation costs, 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 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 (income), (4) costs related to the Hart-Scott-Rodino review process, (5) headquarters relocation costs, and (6) 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 (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) costs related to the Hart-Scott-Rodino review process, (6) headquarters relocation costs, and (7) 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 (loss), plus (1) income tax (benefit) 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) costs related to the Hart-Scott-Rodino review process, (7) headquarters relocation costs, (8) amortization of convertible note discount, (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 on demand 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 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. 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:

• Non-GAAP tax rate – The company uses a 40.0% tax rate in order to approximate the Company’s long-term effective corporate tax rate. The GAAP tax rate includes certain tax items which may include, but are not limited to: income tax expenses or benefits that are not related to ongoing business operations in the current year; unusual or infrequently occurring items; benefits from stock compensation deductions for tax purposes that exceed the stock compensation expense recognized for GAAP; tax adjustments associated with fluctuations in foreign currency re-measurement; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets and liabilities; and changes in tax law. We believe excluding these items assists investors and analysts in understanding the tax provision and the effective tax rate related to ongoing operations.
• Acquisition-related and other deferred revenue – These items are included to reflect 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.
• Asset impairment and loss on disposal of assets – These items comprise gains (losses) on the disposal and impairment of long-lived assets, which are not reflective of the company’s ongoing operations. We believe exclusion of these items facilitates a more accurate comparison of the company’s results of operations between periods.
• Amortization of intangible assets – These items are amortized over their estimated useful lives and generally cannot be changed or influenced by the company after acquisition. Accordingly, these items are not considered by the company in making operating decisions. The company does not believe such charges accurately reflect the performance of its ongoing operations for the period in which such charges are incurred.
• Acquisition-related expense (income) – These items consist of direct costs incurred in our business acquisition transactions and the impact of changes in the fair value of acquisition-related contingent consideration obligations. We believe exclusion of these items facilitates a more accurate comparison of the results of the company’s ongoing operations across periods and eliminates volatility related to changes in the fair value of acquisition-related contingent consideration obligations.
• Costs related to the Hart-Scott-Rodino review process – This item relates to the company's ongoing Hart-Scott-Rodino Antitrust Improvements Act review process related to its proposed acquisition of LRO and recently completed acquisition of On-Site. The company believes that these significant legal costs are not reflective of its ongoing operations.
• Headquarters relocation costs – These items consist of duplicative rent and other expenses related to the relocation of our corporate headquarters and data center. These costs are not reflective of the company’s ongoing operations due to their non-recurring nature.
• Amortization of the convertible note discount – This items consists of non-cash interest expense related to the amortization of the discount recognized on the convertible notes issued in May 2017. Management excludes this item as it is not indicative of the company’s ongoing operating performance.
• Stock-based expense – This item is excluded because these are non-cash expenditures that the company does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of its control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to the company’s performance during the period in which the expenses are incurred.

Condensed Consolidated Balance Sheets
(in thousands, except share data)
	September 30,			December 31,
		2017			2016
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	109,334		$	104,886
Restricted cash		92,560			83,654
Accounts receivable, less allowance for doubtful accounts of $2,998 and $2,468 at September 30, 2017 and December 31, 2016, respectively		101,164			92,367
Prepaid expenses		14,554			10,836
Other current assets		6,043			5,712
Total current assets		323,655			297,455
Property, equipment, and software, net		147,069			130,428
Goodwill		565,425			259,938
Identified intangible assets, net		143,447			74,976
Deferred tax assets, net		69,589			15,665
Other assets		9,643			9,636
Total assets	$	1,258,828		$	788,098
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	27,388		$	21,421
Accrued expenses and other current liabilities		77,451			50,464
Current portion of deferred revenue		103,243			89,583
Current portion of term loan		4,600			5,469
Customer deposits held in restricted accounts		92,571			83,590
Total current liabilities		305,253			250,527
Deferred revenue		5,640			6,308
Term loan, net		114,719			116,657
Convertible notes, net		278,392			-
Other long-term liabilities		38,134			29,843
Total liabilities		742,138			403,335
Stockholders’ equity:
Common stock, $0.001 par value: 125,000,000 shares authorized, 87,143,835 and 86,062,191 shares issued and 83,130,124 and 81,087,353 shares outstanding at September 30, 2017 and December 31, 2016, respectively		87			86
Additional paid-in capital		622,224			534,348
Treasury stock, at cost: 4,013,711 and 4,974,838 shares at September 30, 2017 and December 31, 2016, respectively		(51,545	)		(30,358	)
Accumulated deficit		(54,181	)		(119,260	)
Accumulated other comprehensive income (loss)		105			(53	)
Total stockholders’ equity		516,690			384,763
Total liabilities and stockholders’ equity	$	1,258,828		$	788,098

Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2017			2016			2017			2016
Revenue:
On demand	$	161,578		$	140,883		$	462,518		$	400,904
On premise		648			682			1,982			2,141
Professional and other		6,832			6,390			18,783			16,012
Total revenue		169,058			147,955			483,283			419,057
Cost of revenue(1)		69,348			64,111			199,934			180,937
Gross profit		99,710			83,844			283,349			238,120
Operating expenses:
Product development(1)		21,885			18,743			63,562			54,893
Sales and marketing(1)		42,583			33,860			116,965			101,188
General and administrative(1)		31,004			21,677			82,625			61,955
Impairment of identified intangible assets		-			750			-			750
Total operating expenses		95,472			75,030			263,152			218,786
Operating income		4,238			8,814			20,197			19,334
Interest expense and other, net		(4,677	)		(1,064	)		(8,549	)		(2,846	)
(Loss) income before income taxes		(439	)		7,750			11,648			16,488
Income tax (benefit) expense		(7,273	)		3,540			(9,594	)		7,199
Net income	$	6,834		$	4,210		$	21,242		$	9,289
Net income per share attributable to common stockholders:
Basic	$	0.09		$	0.05		$	0.27		$	0.12
Diluted	$	0.08		$	0.05		$	0.26		$	0.12
Weighted average shares used in computing net income per share attributable to common stockholders:
Basic		79,838			76,823			79,045			76,615
Diluted		82,760			78,124			82,051			77,525
(1) Includes stock-based expense as follows:
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2017			2016			2017			2016
Cost of revenue	$	1,040		$	929		$	2,943		$	2,506
Product development		2,098			1,900			6,431			5,246
Sales and marketing		3,847			1,406			11,241			8,179
General and administrative		4,779			4,020			15,117			11,452
	$	11,764		$	8,255		$	35,732		$	27,383

Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2017			2016			2017			2016
Cash flows from operating activities:
Net income	$	6,834		$	4,210		$	21,242		$	9,289
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		16,281			14,052			45,814			40,874
Amortization of debt discount and issuance costs		2,916			120			4,340			325
Deferred taxes		(7,723	)		3,104			(10,811	)		5,424
Stock-based expense		11,764			8,255			35,732			27,383
Loss on disposal and impairment of other long-lived assets		385			914			472			999
Acquisition-related consideration		(642	)		(248	)		382			(499	)
Changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations		(3,991	)		14,116			9,117			21,329
Net cash provided by operating activities		25,824			44,523			106,288			105,124
Cash flows from investing activities:
Purchases of property, equipment, and software		(11,447	)		(22,519	)		(38,576	)		(61,005	)
Acquisition of businesses, net of cash acquired		(225,983	)		(95	)		(356,861	)		(71,400	)
Purchase of cost-method investments		-			(3,000	)		-			(3,000	)
Net cash used in investing activities		(237,430	)		(25,614	)		(395,437	)		(135,405	)
Cash flows from financing activities:
Payments on and proceeds from debt, net		(1,133	)		(905	)		301,159			82,184
Payments of acquisition-related consideration		(888	)		(2,140	)		(8,073	)		(4,876	)
Issuance of common stock		8,463			8,131			21,614			16,139
Purchase of treasury stock related to stock-based compensation		(10,181	)		(1,600	)		(21,189	)		(3,779	)
Purchase of treasury stock under share repurchase program		-			-			-			(21,244	)
Net cash (used in) provided by financing activities		(3,739	)		3,486			293,511			68,424
Net (decrease) increase in cash and cash equivalents		(215,345	)		22,395			4,362			38,143
Effect of exchange rate on cash		88			7			86			36
Cash and cash equivalents:
Beginning of period		324,591			46,688			104,886			30,911
End of period	$	109,334		$	69,090		$	109,334		$	69,090

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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenue (GAAP)	$	169,058		$	147,955		$	483,283		$	419,057
Acquisition-related and other deferred revenue		698			(161	)		2,348			(762	)
Non-GAAP total revenue	$	169,756		$	147,794		$	485,631		$	418,295
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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Gross profit (GAAP)	$	99,710		$	83,844		$	283,349		$	238,120
Acquisition-related and other deferred revenue		698			(161	)		2,348			(762	)
Depreciation		2,909			2,834			8,855			8,580
Amortization of intangible assets		3,554			4,296			10,934			12,602
Headquarters relocation costs		-			760			-			2,023
Stock-based expense		1,040			929			2,943			2,506
Adjusted gross profit	$	107,911		$	92,502		$	308,429		$	263,069
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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Net income (GAAP)	$	6,834		$	4,210		$	21,242		$	9,289
Acquisition-related and other deferred revenue		698			(161	)		2,348			(762	)
Depreciation, asset impairment, and loss on disposal of assets		7,331			7,119			20,935			19,178
Amortization of intangible assets		9,335			7,847			25,351			22,695
Acquisition-related expense (income)		485			(266	)		3,049			(332	)
Costs related to the Hart-Scott-Rodino review process		5,993			-			8,702			-
Interest expense, net		4,813			1,079			8,737			2,888
Income tax (benefit) expense		(7,273	)		3,540			(9,594	)		7,199
Headquarters relocation costs		-			1,353			-			3,552
Stock-based expense		11,764			8,255			35,732			27,383
Adjusted EBITDA	$	39,980		$	32,976		$	116,502		$	91,090

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					Nine Months Ended
		September 30,					September 30,
		2017		2016			2017		2016
Product development expense (GAAP)		$	21,885	$	18,743		$	63,562	$	54,893
Less:	Headquarters relocation costs		-		211			-		541
	Stock-based expense		2,098		1,900			6,431		5,246
Non-GAAP product development expense		$	19,787	$	16,632		$	57,131	$	49,106
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					Nine Months Ended
		September 30,					September 30,
		2017		2016			2017		2016
Sales and marketing expense (GAAP)		$	42,583	$	33,860		$	116,965	$	101,188
Less:	Amortization of intangible assets		5,781		3,551			14,417		10,093
	Headquarters relocation costs		-		220			-		574
	Stock-based expense		3,847		1,406			11,241		8,179
Non-GAAP sales and marketing expense		$	32,955	$	28,683		$	91,307	$	82,342
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					Nine Months Ended
		September 30,					September 30,
		2017		2016			2017		2016
General and administrative expense (GAAP)		$	31,004	$	21,677		$	82,625	$	61,955
Less:	Loss on disposal of assets		385		164			472		249
	Acquisition-related expense (income)		485		(266	)		3,049		(332	)
	Costs related to the Hart-Scott-Rodino review process		5,993		-			8,702		-
	Headquarters relocation costs		-		162			-		414
	Stock-based expense		4,779		4,020			15,117		11,452
Non-GAAP general and administrative expense		$	19,362	$	17,597		$	55,285	$	50,172
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					Nine Months Ended
		September 30,					September 30,
		2017		2016			2017		2016
Operating expense (GAAP)		$	95,472	$	75,030		$	263,152	$	218,786
Less:	Asset impairment and loss on disposal of assets		385		914			472		999
	Amortization of intangible assets		5,781		3,551			14,417		10,093
	Acquisition-related expense (income)		485		(266	)		3,049		(332	)
	Costs related to the Hart-Scott-Rodino review process		5,993		-			8,702		-
	Headquarters relocation costs		-		593			-		1,529
	Stock-based expense		10,724		7,326			32,789		24,877
Non-GAAP operating expense		$	72,104	$	62,912		$	203,723	$	181,620

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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Operating income (GAAP)	$	4,238		$	8,814		$	20,197		$	19,334
Acquisition-related and other deferred revenue		698			(161	)		2,348			(762	)
Asset impairment and loss on disposal of assets		385			914			472			999
Amortization of intangible assets		9,335			7,847			25,351			22,695
Acquisition-related expense (income)		485			(266	)		3,049			(332	)
Costs related to the Hart-Scott-Rodino review process		5,993			-			8,702			-
Headquarters relocation costs		-			1,353			-			3,552
Stock-based expense		11,764			8,255			35,732			27,383
Non-GAAP operating income	$	32,898		$	26,756		$	95,851		$	72,869
Non-GAAP Net Income
Set forth below is a presentation of the company’s "Non-GAAP Net Income" and "Non-GAAP Net Income per Diluted Share." Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
Net income (GAAP)	$	6,834		$	4,210		$	21,242		$	9,289
Income tax (benefit) expense		(7,273	)		3,540			(9,594	)		7,199
(Loss) income before income taxes		(439	)		7,750			11,648			16,488
Acquisition-related and other deferred revenue		698			(161	)		2,348			(762	)
Asset impairment and loss on disposal of assets		385			914			472			999
Amortization of intangible assets		9,335			7,847			25,351			22,695
Acquisition-related expense (income)		485			(266	)		3,049			(332	)
Costs related to the Hart-Scott-Rodino review process		5,993			-			8,702			-
Headquarters relocation costs		-			1,353			-			3,552
Amortization of convertible note discount		2,451			-			3,503			-
Stock-based expense		11,764			8,255			35,732			27,383
Non-GAAP income before income taxes		30,672			25,692			90,805			70,023
Assumed rate for income tax expense (1)		40.0	%		40.0	%		40.0	%		40.0	%
Assumed provision for non-GAAP income tax expense		12,269			10,277			36,322			28,010
Non-GAAP net income	$	18,403		$	15,415		$	54,483		$	42,013
Net income per diluted share	$	0.08		$	0.05		$	0.26		$	0.12
Non-GAAP net income per diluted share	$	0.22		$	0.20		$	0.66		$	0.54
Weighted average outstanding shares - basic (3)		79,838			76,823			79,045			76,615
Weighted average outstanding shares - diluted (3)		82,760			78,124			82,051			77,525
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						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016
On demand revenue (GAAP)	$	161,578		$	140,883		$	462,518		$	400,904
Acquisition-related and other deferred revenue		698			(161	)		2,348			(762	)
Non-GAAP on demand revenue	$	162,276		$	140,722		$	464,866		$	400,142

Ending On Demand Units, Average On Demand Units, RPU, and ACV
Set forth below is a presentation of the company’s "Ending On Demand Units," "Average On Demand Units," "RPU," and "ACV." Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017	2016
Ending on demand units		12,253		11,251	12,253	11,251
Average on demand units		11,869		11,196	11,406	11,016
ACV	$	708,836	$	565,700
RPU	$	57.85	$	50.28

Non-GAAP Total Revenue Guidance
Set forth below is a presentation of the company’s "Non-GAAP total revenue" guidance for the three and twelve months ending December 31, 2017. Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Guidance Range for the						Guidance Range for the
	Three Months Ending						Twelve Months Ending
	December 31, 2017						December 31, 2017
	Low (2)			High (2)			Low (2)			High (2)
Revenue (GAAP)	$	182,747		$	185,747		$	666,030		$	669,030
Acquisition-related and other deferred revenue		452			452			2,800			2,800
Non-GAAP total revenue	$	183,199		$	186,199		$	668,830		$	671,830
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 and twelve months ending December 31, 2017. Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Guidance Range for the						Guidance Range for the
	Three Months Ending						Twelve Months Ending
	December 31, 2017						December 31, 2017
	Low (2)			High (2)			Low (2)			High (2)
Non-GAAP net income:
Net income (GAAP)	$	7,168		$	10,088		$	28,410		$	31,330
Income tax expense		(1,316	)		(936	)		(10,910	)		(10,530	)
Income before income taxes		5,852			9,152			17,500			20,800
Acquisition-related and other deferred revenue		452			452			2,800			2,800
Asset impairment and loss on disposal of assets		28			28			500			500
Amortization of intangible assets		11,649			11,549			37,000			36,900
Acquisition-related expense		401			271			3,450			3,320
Costs related to the Hart-Scott-Rodino review process		2,348			1,178			11,050			9,880
Amortization of convertible note discount		2,497			2,497			6,000			6,000
Stock-based expense		10,768			10,568			46,500			46,300
Non-GAAP income before income taxes		33,995			35,695			124,800			126,500
Expected effective tax rate (1)		40.0	%		40.0	%		40.0	%		40.0	%
Assumed provision for income tax expense		13,598			14,278			49,920			50,600
Non-GAAP net income	$	20,397		$	21,417		$	74,880		$	75,900
Net income per diluted share	$	0.09		$	0.12		$	0.35		$	0.38
Non-GAAP net income per diluted share	$	0.25		$	0.26		$	0.91		$	0.92
Weighted average outstanding shares - diluted (3)		83,250			83,250			82,330			82,330

Adjusted EBITDA Guidance
Set forth below is a presentation of the company’s "Adjusted EBITDA" guidance for the three and twelve months ending December 31, 2017. Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Guidance Range for the						Guidance Range for the
	Three Months Ending						Twelve Months Ending
	December 31, 2017						December 31, 2017
	Low (2)			High (2)			Low (2)			High (2)
Adjusted EBITDA:
Net income (GAAP)	$	7,168		$	10,088		$	28,410		$	31,330
Acquisition-related and other deferred revenue		452			452			2,800			2,800
Depreciation, asset impairment, and loss on disposal of assets		7,165			7,065			28,100			28,000
Amortization of intangible assets		11,649			11,549			37,000			36,900
Acquisition-related expense		401			271			3,450			3,320
Costs related to the Hart-Scott-Rodino review process		2,348			1,178			11,050			9,880
Interest expense, net		5,363			5,263			14,100			14,000
Income tax expense		(1,316	)		(936	)		(10,910	)		(10,530	)
Stock-based expense		10,768			10,568			46,500			46,300
Adjusted EBITDA	$	43,998		$	45,498		$	160,500		$	162,000

(1) We use a non-GAAP tax rate of 40.0% in order to approximate the Company's long-term effective corporate tax rate. Please reference the "Explanation of Non-GAAP Financial Measures" section.

(2) 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.

(3) For periods with GAAP net losses and non-GAAP net income, the weighted-average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive.

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

EX-99.2

Exhibit 99.2

RealPage, Inc.

IR Fact Sheet (as of 11/2/2017)

*Please read in conjunction with the Company's 10-Q previously filed with the Securities and Exchange Commission on August 4, 2017 as well as the Company's "Explanation of Non-GAAP Financial Measures.

	FY 2015				Q1 2016			Q2 2016			Q3 2016			Q4 2016		FY 2016				Q1 2017			Q2 2017			Q3 2017		YTD 2017
Revenue ($000's)
Total GAAP Revenue	$	468,520		$	128,383		$	142,719		$	147,955		$	149,071		$	568,128		$	152,919		$	161,306		$	169,058		$	483,283
Growth %		16	%		16	%		24	%		22	%		22	%		21	%		19	%		13	%		14	%		15	%
Acquisition-related and other deferred revenue		(2,157	)		(343	)		(258	)		(161	)		(187	)		(949	)		705			945			698			2,348
Total Non-GAAP Revenue	$	466,363		$	128,040		$	142,461		$	147,794		$	148,884		$	567,179		$	153,624		$	162,251		$	169,756		$	485,631
Growth %		15	%		16	%		25	%		22	%		23	%		22	%		20	%		14	%		15	%		16	%
GAAP On Demand Revenue	$	450,962		$	123,411		$	136,610		$	140,883		$	141,627		$	542,531		$	146,213		$	154,727		$	161,578		$	462,518
Growth %		15	%		16	%		23	%		21	%		21	%		20	%		18	%		13	%		15	%		15	%
Acquisition-related and other deferred revenue		(2,157	)		(343	)		(258	)		(161	)		(187	)		(949	)		705			945			698			2,348
Non-GAAP On Demand Revenue	$	448,805		$	123,068		$	136,352		$	140,722		$	141,440		$	541,582		$	146,918		$	155,672		$	162,276		$	464,866
Growth %		15	%		16	%		24	%		21	%		21	%		21	%		19	%		14	%		15	%		16	%
On Premise Revenue	$	2,970		$	772		$	687		$	682		$	695		$	2,836		$	675		$	659		$	648		$	1,982
Professional & Other Revenue	$	14,588		$	4,200		$	5,422		$	6,390		$	6,749		$	22,761		$	6,031		$	5,920		$	6,832		$	18,783
Expenses ($000's)
Cost of Revenue
GAAP View	$	198,613		$	54,748		$	62,078		$	64,111		$	61,364		$	242,301		$	63,042		$	67,544		$	69,348		$	199,934
Stock-based expense		(4,046	)		(751	)		(826	)		(929	)		(804	)		(3,310	)		(853	)		(1,050	)		(1,040	)		(2,943	)
Amortization of intangible assets		(14,213	)		(4,165	)		(4,141	)		(4,296	)		(4,159	)		(16,761	)		(3,689	)		(3,691	)		(3,554	)		(10,934	)
Headquarters relocation costs		-			(584	)		(679	)		(760	)		-			(2,023	)		-			-			-			-
Non-GAAP View	$	180,354		$	49,248		$	56,432		$	58,126		$	56,401		$	220,207		$	58,500		$	62,803		$	64,754		$	186,057
Depreciation		(9,802	)		(2,692	)		(3,054	)		(2,834	)		(2,825	)		(11,405	)		(2,883	)		(3,063	)		(2,909	)		(8,855	)
Adjusted EBITDA View	$	170,552		$	46,556		$	53,378		$	55,292		$	53,576		$	208,802		$	55,617		$	59,740		$	61,845		$	177,202
Product Development
GAAP View	$	68,799		$	17,272		$	18,878		$	18,743		$	18,714		$	73,607		$	20,387		$	21,290		$	21,885		$	63,562
Stock-based expense		(8,585	)		(1,449	)		(1,897	)		(1,900	)		(1,825	)		(7,071	)		(1,879	)		(2,454	)		(2,098	)		(6,431	)
Asset impairment and loss on disposal of assets		(1,418	)		-			-			-			-			-			-			-			-			-
Headquarters relocation costs		-			(154	)		(176	)		(211	)		-			(541	)		-			-			-			-
Non-GAAP View	$	58,796		$	15,669		$	16,805		$	16,632		$	16,889		$	65,995		$	18,508		$	18,836		$	19,787		$	57,131
Depreciation		(5,279	)		(1,200	)		(1,462	)		(1,502	)		(1,572	)		(5,736	)		(1,530	)		(1,561	)		(1,698	)		(4,789	)
Adjusted EBITDA View	$	53,517		$	14,469		$	15,343		$	15,130		$	15,317		$	60,259		$	16,978		$	17,275		$	18,089		$	52,342
Sales & Marketing
GAAP View	$	123,108		$	32,199		$	35,129		$	33,860		$	34,025		$	135,213		$	35,147		$	39,235		$	42,583		$	116,965
Stock-based expense		(12,996	)		(2,974	)		(3,799	)		(1,406	)		(3,185	)		(11,364	)		(3,128	)		(4,266	)		(3,847	)		(11,241	)
Amortization of intangible assets		(11,164	)		(2,946	)		(3,596	)		(3,551	)		(3,414	)		(13,507	)		(4,100	)		(4,536	)		(5,781	)		(14,417	)
Headquarters relocation costs		-			(170	)		(184	)		(220	)		-			(574	)		-			-			-			-
Non-GAAP View	$	98,948		$	26,109		$	27,550		$	28,683		$	27,426		$	109,768		$	27,919		$	30,433		$	32,955		$	91,307
Depreciation		(2,170	)		(606	)		(615	)		(593	)		(586	)		(2,400	)		(588	)		(663	)		(601	)		(1,852	)
Adjusted EBITDA View	$	96,778		$	25,503		$	26,935		$	28,090		$	26,840		$	107,368		$	27,331		$	29,770		$	32,354		$	89,455
General & Administrative
GAAP View	$	68,814		$	18,346		$	21,932		$	21,677		$	23,058		$	85,013		$	24,251		$	27,370		$	31,004		$	82,625
Stock-based expense		(12,495	)		(3,217	)		(4,215	)		(4,020	)		(3,655	)		(15,107	)		(4,232	)		(6,106	)		(4,779	)		(15,117	)
Amortization of intangible assets		-			-			-			-			-			-			-			-			-			-
Asset impairment and loss on disposal of assets		(1,652	)		-			(85	)		(164	)		(248	)		(497	)		(24	)		(63	)		(385	)		(472	)
Acquisition-related income (expense)		1,841			57			9			266			(695	)		(363	)		(1,210	)		(1,354	)		(485	)		(3,049	)
Cost related to Hart-Scott-Rodino review process		-															-			(481	)		(2,228	)		(5,993	)		(8,702	)
Headquarters relocation costs		-			(117	)		(135	)		(162	)		-			(414	)		-			-			-			-
Litigation-related expense		(2	)		-			-			-			-			-			-			-			-			-
Non-GAAP View	$	56,506		$	15,069		$	17,506		$	17,597		$	18,460		$	68,632		$	18,304		$	17,619		$	19,362		$	55,285
Depreciation		(3,263	)		(998	)		(1,347	)		(1,276	)		(1,404	)		(5,025	)		(1,650	)		(1,579	)		(1,738	)		(4,967	)
Other (income) expense		82			(11	)		(16	)		(15	)		(25	)		(67	)		(34	)		(18	)		(136	)		(188	)
Adjusted EBITDA View	$	53,325		$	14,060		$	16,143		$	16,306		$	17,031		$	63,540		$	16,620		$	16,022		$	17,488		$	50,130
Profitability ($000's)
GAAP Net Income (Loss)	$	(9,218	)	$	2,996		$	2,083		$	4,210		$	7,361		$	16,650		$	8,195		$	6,213		$	6,834		$	21,242
Acquisition-related and other deferred revenue		(2,157	)		(343	)		(258	)		(161	)		(187	)		(949	)		705			945			698			2,348
Depreciation, asset impairment, and loss on disposal of assets		44,385			5,496			6,563			7,119			6,635			25,813			6,675			6,929			7,331			20,935
Amortization of intangible assets		25,377			7,111			7,737			7,847			7,573			30,268			7,789			8,227			9,335			25,351
Acquisition-related expense (income)		(1,841	)		(57	)		(9	)		(266	)		695			363			1,210			1,354			485			3,049
Cost related to Hart-Scott-Rodino review process		-															-			481			2.228			5,993			8,702
Interest expense, net		1,367			719			1,090			1,079			937			3,825			1,120			2,804			4,813			8,737
Income tax (benefit) expense		(3,846	)		2,114			1,545			3,540			3,637			10,836			811			(3,132	)		(7,273	)		(9,594	)
Litigation-related expense		2			-			-			-			-			-			-			-			-			-
Headquarters relocation costs		-			1,025			1,174			1,353			-			3,552			-			-			-			-
Stock-based expense		38,122			8,391			10,737			8,255			9,469			36,852			10,092			13,876			11,764			35,732
Adjusted EBITDA	$	92,191		$	27,452		$	30,662		$	32,976		$	36,120		$	127,210		$	37,078		$	39,444		$	39,980		$	116,502
Non-GAAP On Demand Revenue Detail ($000's)
Property Management	$	137,239		$	36,282		$	38,467		$	39,023		$	39,118		$	152,890		$	40,341		$	41,404		$	42,175		$	123,920
% of Total		31	%		29	%		28	%		28	%		28	%		28	%		27	%		26	%		26	%		27	%
Y-O-Y growth		13	%		11	%		14	%		11	%		10	%		11	%		11	%		8	%		8	%		9	%
Resident Services	$	146,138		$	45,071		$	54,613		$	58,351		$	60,062		$	218,097		$	60,968		$	64,860		$	70,527		$	196,355
% of Total		33	%		37	%		40	%		41	%		42	%		40	%		42	%		42	%		43	%		42	%
Y-O-Y growth		33	%		36	%		60	%		50	%		49	%		49	%		35	%		19	%		21	%		24	%
Leasing and Marketing	$	118,697		$	28,925		$	29,618		$	29,451		$	27,562		$	115,556		$	27,815		$	29,324		$	29,334		$	86,473
% of Total		26	%		24	%		22	%		21	%		20	%		22	%		19	%		19	%		18	%		19	%
Y-O-Y growth		0	%		-2	%		-3	%		-2	%		-3	%		-3	%		-4	%		-1	%		0	%		-2	%
Asset Optimization	$	46,731		$	12,790		$	13,654		$	13,897		$	14,698		$	55,039		$	17,794		$	20,084		$	20,240		$	58,118
% of Total		10	%		10	%		10	%		10	%		10	%		10	%		12	%		13	%		13	%		12	%
Y-O-Y growth		13	%		18	%		17	%		15	%		20	%		18	%		39	%		47	%		46	%		44	%
Non-GAAP On Demand Revenue Detail ($000's)
Subscription	$	399,211		$	110,464		$	123,404		$	127,155		$	128,455		$	489,478		$	134,325		$	141,459		$	152,564		$	428,348
% of Total		89	%		90	%		91	%		90	%		91	%		90	%		91	%		91	%		94	%		92	%
Y-O-Y growth		16	%		18	%		27	%		24	%		22	%		23	%		22	%		15	%		20	%		19	%
Transactional	$	49,594		$	12,604		$	12,948		$	13,567		$	12,985		$	52,104		$	12,593		$	14,213		$	9,712		$	36,518
% of Total		11	%		10	%		9	%		10	%		9	%		10	%		9	%		9	%		6	%		8	%
Y-O-Y growth		5	%		5	%		1	%		3	%		13	%		5	%		0	%		10	%		-28	%		-7	%
Annual Contract Value ($000's)
Non-GAAP On Demand Annual Customer Value				$	529,052		$	548,917		$	565,700		$	566,263					$	596,159		$	649,017		$	708,836
Total ACV Growth (QTD)					24	%		21	%		21	%		21	%					13	%		18	%		25	%
Organic ACV Growth (QTD)					10	%		11	%		10	%		10	%					11	%		11	%		8	%
Unit Trend (000's)
On Demand Units - Ending					10,999			11,141			11,251			10,989						11,112			11,485			12,253
Average Unit Renewal Rate
Average Renewal Rate (8 quarters)					96.9	%		97.0	%		97.0	%		96.9	%					96.8	%		96.6	%		96.2	%
RPU
Non-GAAP On Demand RPU (QTD) (whole $)				$	48.10		$	49.27		$	50.28		$	51.53					$	53.65		$	56.51		$	57.85
Top ACV / RPU
Top 100 ACV ($000's)				$	232,031		$	240,850		$	245,947		$	253,206					$	255,262		$	269,154		$	288,315
Top 100 ACV RPU				$	71.02		$	69.68		$	72.63		$	78.32					$	79.59		$	84.92		$	84.11
Top 50 RPU Clients RPU				$	168.58		$	172.32		$	177.21		$	186.47					$	187.48		$	182.61		$	187.66
Headcount
Total Ending RP Headcount					4,445			4,707			4,413			4,410						4,778			5,029			5,231
Total International Headcount (included above)					1,694			1,938			1,845			1,880						2,037			2,140			2,206
% International Headcount					38	%		41	%		42	%		43	%					43	%		43	%		42	%