8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

______________

FORM 8-K

______________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report  (Date of earliest event reported)

February 25, 2019

______________

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 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:

☐ 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 February 25, 2019, RealPage, Inc. (the “Company”) issued a press release reporting its financial results for its fiscal quarter and year ended December 31, 2018. A copy of the press release is furnished herewith as Exhibit 99.1.

Item 7.01        Regulation FD Disclosure. IR Fact Sheet

On February 25, 2019, the Company published an updated IR Fact Sheet on the Investor Relations section of the Company’s website located at https://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 February 25, 2019 reporting financial results for its fiscal quarter and year ended December 31, 2018.
99.2	RealPage, Inc. IR Fact Sheet dated February 25, 2019.

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:  February 25, 2019

EX-99.1

Exhibit 99.1

RealPage Reports Fourth Quarter and Full Year 2018 Financial Results

RICHARDSON, Texas--(BUSINESS WIRE)--February 25, 2019--RealPage, Inc. (NASDAQ:RP), a leading global provider of software and data analytics to the real estate industry, today announced financial results for the fourth quarter and year ended December 31, 2018.

Fourth Quarter 2018 Financial Highlights

• GAAP total revenue of $227.0 million, an increase of 21% year-over-year;
• Net income of $6.3 million, or $0.07 in net income per diluted share, a year-over-year increase of 130% and 127%, respectively;
• Adjusted EBITDA of $60.8 million, an increase of 30% year-over-year; and
• Non-GAAP net income of $36.6 million, or $0.39 in non-GAAP net income per diluted share, a year-over-year increase of 68% and 50%, respectively.

Full Year 2018 Financial Highlights

• GAAP total revenue of $869.5 million, an increase of 30% year-over-year;
• Net income of $34.7 million, or $0.38 in net income per diluted share, exhibiting significant year-over-year growth;
• Adjusted EBITDA of $231.2 million, an increase of 41% year-over-year; and
• Non-GAAP net income of $135.5 million, or $1.51 in non-GAAP net income per diluted share, a year-over-year increase of 78% and 62%, respectively.

Comments on the News

“Our 2018 financial performance was impressive,” said Steve Winn, Chairman and CEO of RealPage. “The strong financial performance reflects continued execution of our strategy to emphasize strategic platform sales over the sales of individual products. Our new Unity Platform makes this much easier and we are experiencing significant success with suite sales achieving another record high new sales bookings level for the fourth quarter and the full year.”

“2018 financial performance exhibited another year of strong growth as total revenue grew 30%, while adjusted EBITDA and cash flow from operations each grew significantly,” said Tom Ernst, CFO and Treasurer of RealPage. “I’m excited by our future and the caliber of the team here at RealPage. Three areas of focus for 2019 will be to further embed data driven science into all of our products and internal processes, refine our growing capabilities in curating the innovation lifecycle and simplify internal processes across the company to reduce the time from the sale of a suite to the full deployment of that suite.”

2019 Financial Outlook

RealPage management expects to achieve the following results during the first quarter ending March 31, 2019:

• GAAP total revenue is expected to be in the range of $232.8 million to $234.8 million;
• GAAP net income per diluted share is expected to be in the range of $0.09 to $0.11;
• Non-GAAP total revenue is expected to be in the range of $233.0 million to $235.0 million;
• Adjusted EBITDA is expected to be in the range of $64.0 million to $66.0 million;
• Non-GAAP net income per diluted share is expected to be in the range of $0.39 to $0.41;
• Non-GAAP diluted weighted average shares outstanding are expected to be approximately 93.9 million.

RealPage management expects to achieve the following results during the calendar year ending December 31, 2019:

• GAAP total revenue is expected to be in the range of $980.0 million to $1.0 billion;
• GAAP net income per diluted share is expected to be in the range of $0.45 to $0.55;
• Non-GAAP total revenue is expected to be in the range of $980.0 million to $1.0 billion;
• Adjusted EBITDA is expected to be in the range of $275.0 million to $285.0 million;
• Non-GAAP net income per diluted share is expected to be in the range of $1.70 to $1.79;
• Non-GAAP diluted weighted average shares outstanding are expected to be approximately 94.5 million.

Conference Call Information; Presentation Slides

The Company will host a conference call at 5:00 p.m. EDT today to discuss its financial results. Participants are encouraged to listen to the presentation via a live web broadcast and view presentation slides at https://78449.themediaframe.com/dataconf/productusers/rlpg/mediaframe/28931/indexl.html. In addition, a live dial-in is available domestically at 877-407-9128 and internationally at 201-493-6752. A replay will be available at 877-660-6853 or 201-612-7415, passcode 13687894, until March 25, 2019.

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 over 12,200 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, goals, future focus areas, and expected, possible or assumed future results, including its financial outlook for the first quarter and calendar year ending December 31, 2019, continued execution and success of its strategy to emphasize suite sales over the sales of individual products, and the benefits of its Unity Platform, its areas of focus in 2019 related to embedding data driven science into its products and internal processes, growing capabilities in curating the innovation lifecycle, and simplifying internal processes to reduce the time from the sale of a suite to full deployment. 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. These 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 contained herein upon finalizing its review of quarterly and full-year results and completion of the annual audit, 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 recent or future acquired businesses successfully or to achieve expected synergies, including the completed acquisitions of ClickPay, LeaseLabs and Rentlytics; (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; (j) changes in RealPage’s estimates with respect to its long-term corporate tax rate or any other impact from the Tax Cuts and Jobs Act; and (k) 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, 2018 and its Quarterly Report on Form 10-Q previously filed with the SEC on November 6, 2018. 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 product technologies, and (4) 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 product technologies and intangible assets, (4) loss due to cyber incident, net of recoveries, (5) acquisition-related (income) expense, (6) costs related to the Hart-Scott-Rodino review process, (7) interest expense, net, (8) income tax expense (benefit), 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 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) asset impairment, 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 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) loss due to cyber incident, net of recoveries, (3) acquisition-related (income) expense, (4) costs related to the Hart-Scott-Rodino review process, 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) loss due to cyber incident, net of recoveries, (4) acquisition-related (income) expense, (5) costs related to the Hart-Scott-Rodino review process, 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, plus (1) acquisition-related and other deferred revenue adjustments, (2) asset impairment and loss on disposal of assets, (3) amortization of product technologies and intangible assets, (4) loss due to cyber incident, net of recoveries, (5) acquisition-related (income) expense, (6) costs related to the Hart-Scott-Rodino review process, 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 adjustments, (3) asset impairment and loss on disposal of assets, (4) amortization of product technologies and intangible assets, (5) loss due to cyber incident, net of recoveries, (6) acquisition-related (income) expense, (7) costs related to the Hart-Scott-Rodino review process, (8) amortization of convertible note discount, and (9) stock-based expense, less (10) provision for income tax expense based on an assumed rate in order to approximate the company’s long-term effective corporate tax rate. The company defines “Non-GAAP Net Income per Diluted Share” as Non-GAAP Net Income divided by Non-GAAP 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 Weighted Average Diluted Shares Outstanding" as weighted average diluted shares outstanding excluding the impact of shares that are issuable upon conversions of our convertible notes. It is the current intent of the company to settle conversions of the convertible notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. We exclude these shares that are issuable upon conversions of our convertible notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in May 2017 in connection with the issuance of the convertible notes.

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 at a point in time. 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 – In 2017, the company used 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. In 2018 and for 2019 guidance purposes, the company uses a Non-GAAP tax rate of approximately 26%, as a result of the recently enacted Tax Cuts and Jobs Act legislation, to approximate the company’s long-term effective corporate tax rate. 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 and impairment of indefinite-lived intangible 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.
• Depreciation of long-lived assets - Long-lived assets are depreciated over their estimated useful lives in a manner reflecting the pattern in which the economic benefit is consumed. Management is limited in its ability to change or influence these charges after the asset has been acquired and placed in service. We do not believe that depreciation expense accurately reflects the performance of our ongoing operations for the period in which the charges are incurred, and are therefore not considered by management in making operating decisions.
• Amortization of product technologies and intangible assets – These items are amortized over their estimated useful lives and generally cannot be changed or influenced by the company after initial capitalization. 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.
• Loss due to cyber incident, net of recoveries – This item relates to losses, net of recoveries, arising from the May 2018 incident in which the company was the subject of a targeted email phishing campaign. The company believes this loss is not reflective of its ongoing operations and that exclusion of this item facilitates a more accurate comparison of the company’s results of operations between periods.
• Acquisition-related (income) expense – 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 Hart-Scott-Rodino Antitrust Improvements Act review process regarding the completed acquisitions of On-Site and LRO in 2017 and LeaseLabs in 2018. The company believes that these significant legal costs are not reflective of its ongoing operations or its normal acquisition activity.
• 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.

Consolidated Balance Sheets
(in thousands, except share and per share data)
	December 31,		December 31,
	2018		2017
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	228,159	$	69,343
Restricted cash		154,599		96,002
Accounts receivable, less allowance for doubtful accounts of $8,850 and $3,951 at December 31, 2018 and 2017, respectively		123,596		124,505
Prepaid expenses		19,214		12,107
Other current assets		15,185		6,622
Total current assets		540,753		308,579
Property, equipment, and software, net		153,528		148,428
Goodwill		1,053,119		751,052
Intangible assets, net		287,378		252,337
Deferred tax assets, net		42,602		44,887
Other assets		20,393		11,010
Total assets	$	2,097,773	$	1,516,293
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	25,312	$	26,733
Accrued expenses and other current liabilities		95,482		79,379
Current portion of deferred revenue		120,704		116,622
Current portion of term loans		16,133		14,116
Customer deposits held in restricted accounts		154,601		96,057
Total current liabilities		412,232		332,907
Deferred revenue		4,902		5,538
Revolving facility		-		50,000
Term loans, net		287,582		303,261
Convertible notes, net		292,843		281,199
Other long-term liabilities		37,190		41,513
Total liabilities		1,034,749		1,014,418
Stockholders’ equity:
Common stock, $0.001 par value: 250,000,000 and 125,000,000 shares authorized, 95,991,162 and 87,153,085 shares issued and 93,650,127 and 83,180,401 shares outstanding at December 31, 2018 and 2017, respectively		96		87
Additional paid-in capital		1,187,683		637,851
Treasury stock, at cost: 2,341,035 and 3,972,684 shares at December 31, 2018 and 2017, respectively		(65,470)		(61,260)
Accumulated deficit		(58,793)		(75,046)
Accumulated other comprehensive (loss) income		(492)		243
Total stockholders’ equity		1,063,024		501,875
Total liabilities and stockholders’ equity	$	2,097,773	$	1,516,293

Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Revenue:
On demand	$	218,051		$	180,104		$	833,709		$	642,622
Professional and other		8,923			7,576			35,771			28,341
Total revenue		226,974			187,680			869,480			670,963
Cost of revenue(1)		88,063			69,135			328,382			258,135
Amortization of product technologies		9,429			7,413			35,797			22,163
Gross profit		129,482			111,132			505,301			390,665
Operating expenses:
Product development(1)		29,772			25,890			118,525			89,452
Sales and marketing(1)		45,084			37,925			166,607			140,473
General and administrative(1)		32,638			30,350			118,208			112,975
Amortization of intangible assets		9,588			7,154			35,911			17,755
Total operating expenses		117,082			101,319			439,251			360,655
Operating income		12,400			9,813			66,050			30,010
Interest expense and other, net		(6,746	)		(6,220	)		(31,750	)		(14,769	)
Income before income taxes		5,654			3,593			34,300			15,241
Income tax (benefit) expense		(618	)		24,458			(425	)		14,864
Net income (loss)	$	6,272		$	(20,865	)	$	34,725		$	377
Net income (loss) per share attributable to common stockholders:
Basic	$	0.07		$	(0.26	)	$	0.40		$	0.00
Diluted	$	0.07		$	(0.26	)	$	0.38		$	0.00
Weighted average common shares outstanding:
Basic		91,492			80,583			87,290			79,433
Diluted		95,108			80,583			91,531			82,398
(1) Includes stock-based expense as follows:
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Cost of revenue	$	1,254		$	899		$	4,403		$	3,842
Product development		2,595			1,992			9,923			8,423
Sales and marketing		4,320			3,351			16,573			14,592
General and administrative		4,980			3,861			19,742			18,978
	$	13,149		$	10,103		$	50,641		$	45,835

Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Cash flows from operating activities:
Net income (loss)	$	6,272		$	(20,865	)	$	34,725		$	377
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		26,168			21,332			100,186			67,146
Amortization of debt discount and issuance costs		3,192			2,956			12,464			7,296
Deferred taxes		541			24,602			(2,179	)		13,791
Stock-based expense		13,149			10,103			50,641			45,835
Asset impairment and loss on disposal of assets		3,294			52			6,733			524
Acquisition-related consideration		(522	)		302			284			684
Customer deposits		63,591			3,765			57,230			3,055
Other changes in assets and liabilities, net of assets acquired and liabilities assumed in business combinations		(5,840	)		(7,867	)		(15,277	)		1,555
Net cash provided by operating activities		109,845			34,380			244,807			140,263
Cash flows from investing activities:
Purchases of property, equipment, and software		(13,646	)		(11,176	)		(50,933	)		(49,752	)
Acquisition of businesses, net of cash and restricted cash acquired		(48,089	)		(302,360	)		(278,563	)		(649,910	)
Purchase of other investments		-			(200	)		(1,800	)		(200	)
Net cash used in investing activities		(61,735	)		(313,736	)		(331,296	)		(699,862	)
Cash flows from financing activities:
Payments on and proceeds from debt, net		(4,042	)		247,571			(65,479	)		548,730
Payments of acquisition-related consideration		(278	)		(418	)		(28,388	)		(8,491	)
Proceeds from public offering, net of underwriters’ discount and offering costs		107			-			441,901			-
Proceeds from exercise of stock options		3,210			5,400			13,163			27,014
Purchase of treasury stock related to stock-based compensation		(6,908	)		(9,715	)		(29,030	)		(30,904	)
Purchase of treasury stock under share repurchase program		(28,082	)		-			(28,082	)		-
Net cash (used in) provided by financing activities		(35,993	)		242,838			304,085			536,349
Net increase (decrease) in cash and cash equivalents		12,117			(36,518	)		217,596			(23,250	)
Effect of exchange rate on cash		(150	)		(31	)		(183	)		55
Cash, cash equivalents and restricted cash:
Beginning of period		370,791			201,894			165,345			188,540
End of period	$	382,758		$	165,345		$	382,758		$	165,345

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						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Revenue (GAAP)	$	226,974		$	187,680		$	869,480		$	670,963
Acquisition-related and other deferred revenue		1,056			710			1,890			3,058
Non-GAAP Total Revenue	$	228,030		$	188,390		$	871,370		$	674,021
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						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Gross profit (GAAP)	$	129,482		$	111,132		$	505,301		$	390,665
Acquisition-related and other deferred revenue		1,056			710			1,890			3,058
Depreciation		3,048			2,935			12,072			11,790
Amortization of product technologies		9,429			7,413			35,797			22,163
Stock-based expense		1,254			899			4,403			3,842
Adjusted Gross Profit	$	144,269		$	123,089		$	559,463		$	431,518
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						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Net income (loss) (GAAP)	$	6,272		$	(20,865	)	$	34,725		$	377
Acquisition-related and other deferred revenue		1,056			710			1,890			3,058
Depreciation, asset impairment, and loss on disposal of assets		10,445			6,817			35,211			27,752
Amortization of product technologies and intangible assets		19,017			14,567			71,708			39,918
Loss due to cyber incident, net of recoveries		4,952			-			4,952			-
Acquisition-related (income) expense		(257	)		2,508			2,437			5,557
Costs related to the Hart-Scott-Rodino review process		-			2,310			78			11,012
Interest expense, net		6,780			6,335			29,959			15,072
Income tax (benefit) expense		(618	)		24,458			(425	)		14,864
Stock-based expense		13,149			10,103			50,641			45,835
Adjusted EBITDA	$	60,796		$	46,943		$	231,176		$	163,445

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					Twelve Months Ended
		December 31,					December 31,
			2018			2017		2018		2017
Product development expense (GAAP)		$	29,772		$	25,890	$	118,525	$	89,452
Less:	Stock-based expense		2,595			1,992		9,923		8,423
Non-GAAP Product Development Expense		$	27,177		$	23,898	$	108,602	$	81,029
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					Twelve Months Ended
		December 31,					December 31,
			2018			2017		2018		2017
Sales and marketing expense (GAAP)		$	45,084		$	37,925	$	166,607	$	140,473
Less:	Asset impairment		2,720			-		2,720		-
	Stock-based expense		4,320			3,351		16,573		14,592
Non-GAAP Sales and Marketing Expense		$	38,044		$	34,574	$	147,314	$	125,881
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					Twelve Months Ended
		December 31,					December 31,
			2018			2017		2018		2017
General and administrative expense (GAAP)		$	32,638		$	30,350	$	118,208	$	112,975
Less:	Loss on disposal of assets		574			52		2,013		524
	Loss due to cyber incident, net of recoveries		4,952			-		4,952		-
	Acquisition-related (income) expense		(257	)		2,508		2,437		5,557
	Costs related to the Hart-Scott-Rodino review process		-			2,310		78		11,012
	Stock-based expense		4,980			3,861		19,742		18,978
Non-GAAP General and Administrative Expense		$	22,389		$	21,619	$	88,986	$	76,904
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					Twelve Months Ended
		December 31,					December 31,
			2018			2017		2018		2017
Operating expense (GAAP)		$	117,082		$	101,319	$	439,251	$	360,655
Less:	Asset impairment and loss on disposal of assets		3,294			52		4,733		524
	Amortization of intangible assets		9,588			7,154		35,911		17,755
	Loss due to cyber incident, net of recoveries		4,952			-		4,952		-
	Acquisition-related (income) expense		(257	)		2,508		2,437		5,557
	Costs related to the Hart-Scott-Rodino review process		-			2,310		78		11,012
	Stock-based expense		11,895			9,204		46,238		41,993
Non-GAAP Operating Expense		$	87,610		$	80,091	$	344,902	$	283,814

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						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Operating income (GAAP)	$	12,400		$	9,813		$	66,050		$	30,010
Acquisition-related and other deferred revenue		1,056			710			1,890			3,058
Asset impairment and loss on disposal of assets		3,294			52			4,733			524
Amortization of product technologies and intangible assets		19,017			14,567			71,708			39,918
Loss due to cyber incident, net of recoveries		4,952			-			4,952			-
Acquisition-related (income) expense		(257	)		2,508			2,437			5,557
Costs related to the Hart-Scott-Rodino review process		-			2,310			78			11,012
Stock-based expense		13,149			10,103			50,641			45,835
Non-GAAP Operating Income	$	53,611		$	40,063		$	202,489		$	135,914
Non-GAAP Net Income
Set forth below is a presentation of the company’s "Non-GAAP Net Income" and "Non-GAAP Net Income per Non-GAAP Diluted Share." Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Net income (loss) (GAAP)	$	6,272		$	(20,865	)	$	34,725		$	377
Income tax (benefit) expense		(618	)		24,458			(425	)		14,864
Income before income taxes		5,654			3,593			34,300			15,241
Acquisition-related and other deferred revenue		1,056			710			1,890			3,058
Asset impairment and loss on disposal of assets		3,294			52			6,733			524
Amortization of product technologies and intangible assets		19,017			14,567			71,708			39,918
Loss due to cyber incident, net of recoveries		4,952			-			4,952			-
Acquisition-related (income) expense		(257	)		2,508			2,437			5,557
Costs related to the Hart-Scott-Rodino review process		-			2,310			78			11,012
Amortization of convertible note discount		2,639			2,488			10,324			5,991
Stock-based expense		13,149			10,103			50,641			45,835
Non-GAAP income before income taxes		49,504			36,331			183,063			127,136
Assumed rate for income tax expense (1)		26.0	%		40.0	%		26.0	%		40.0	%
Assumed provision for non-GAAP income tax expense		12,871			14,532			47,596			50,854
Non-GAAP Net Income	$	36,633		$	21,799		$	135,467		$	76,282
Net income (loss) per diluted share	$	0.07		$	(0.26	)	$	0.38		$	0.00
Non-GAAP Net Income per Non-GAAP Diluted Share	$	0.39		$	0.26		$	1.51		$	0.93
Weighted average outstanding shares - basic		91,492			80,583			87,290			79,433
Non-GAAP adjusted diluted weighted average shares outstanding:
Weighted average outstanding shares - diluted		95,108			83,464			91,531			82,398
Dilution offset from convertible note hedge transactions		(1,621	)		(321	)		(1,876	)		(81	)
Non-GAAP diluted weighted average shares outstanding (2)		93,487			83,143			89,655			82,317
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						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
On demand revenue (GAAP)	$	218,051		$	180,104		$	833,709		$	642,622
Acquisition-related and other deferred revenue		1,056			710			1,890			3,058
Non-GAAP On Demand Revenue	$	219,107		$	180,814		$	835,599		$	645,680

Ending On Demand Units, Average On Demand Units, ACV, and RPU
Set forth below is a presentation of the company’s "Ending On Demand Units," "Average On Demand Units," "ACV," and "RPU." Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2018			2017			2018			2017
Ending on demand units		16,219			13,003			16,219			13,003
Average on demand units		16,146			12,628			14,847			11,711
ACV	$	876,637		$	751,183
RPU	$	54.05		$	57.77
Non-GAAP Total Revenue Guidance
Set forth below is a presentation of the company’s "Non-GAAP Total Revenue" guidance for the three months ending March 31, 2019, and the twelve months ending December 31, 2019. Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Guidance Range for the Three Months Ending						Guidance Range for the Twelve Months Ending
	March 31, 2019						December 31, 2019
	Low (3)			High (3)			Low (3)			High (3)
Revenue (GAAP)	$	232,790		$	234,790		$	979,600		$	999,600
Acquisition-related and other deferred revenue		210			210			400			400
Non-GAAP Total Revenue	$	233,000		$	235,000		$	980,000		$	1,000,000
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 months ending March 31, 2019, and the twelve months ending December 31, 2019. Please reference the "Explanation of Non-GAAP Financial Measures" section.
	Guidance Range for the Three Months Ending						Guidance Range for the Twelve Months Ending
	March 31, 2019						December 31, 2019
	Low (3)			High (3)			Low (3)			High (3)
Non-GAAP Net Income:
Net income (GAAP)	$	8,520		$	10,540		$	43,550		$	52,990
Income tax expense		3,320			4,100			17,360			21,120
Income before income taxes		11,840			14,640			60,910			74,110
Acquisition-related and other deferred revenue		210			210			400			400
Amortization of product technologies and intangible assets		19,800			19,600			79,200			78,400
Amortization of convertible note discount		2,680			2,680			10,960			10,960
Stock-based expense		15,200			15,000			65,400			64,600
Non-GAAP income before income taxes		49,730			52,130			216,870			228,470
Expected effective tax rate (1)		26.0	%		26.0	%		26.0	%		26.0	%
Assumed provision for income tax expense		12,930			13,554			56,386			59,402
Non-GAAP Net Income	$	36,800		$	38,576		$	160,484		$	169,068
Net income per diluted share	$	0.09		$	0.11		$	0.45		$	0.55
Non-GAAP net income per diluted share	$	0.39		$	0.41		$	1.70		$	1.79
Non-GAAP adjusted diluted weighted average shares outstanding:
Weighted average outstanding shares - diluted		96,375			96,375			97,026			97,026
Dilution offset from convertible note hedge transactions		(2,475	)		(2,475	)		(2,538	)		(2,538	)
Non-GAAP diluted weighted average shares outstanding (2)		93,900			93,900			94,488			94,488

Adjusted EBITDA Guidance
Set forth below is a presentation of the company’s "Adjusted EBITDA" guidance for the three months ending March 31, 2019, and the twelve months ending December 31, 2019. Please reference the "Explanation of Non-GAAP Financial Measures" section.
		Guidance Range for the Three Months Ending				Guidance Range for the Twelve Months Ending
		March 31, 2019				December 31, 2019
		Low (3)		High (3)		Low (3)		High (3)
Adjusted EBITDA:
Net income (GAAP)		$	8,520	$	10,540	$	43,550	$	52,990
Acquisition-related and other deferred revenue			210		210		400		400
Depreciation, asset impairment, and loss on disposal of assets			8,700		8,500		36,200		35,400
Amortization of product technologies and intangible assets			19,800		19,600		79,200		78,400
Interest expense, net			8,250		8,050		32,890		32,090
Income tax expense			3,320		4,100		17,360		21,120
Stock-based expense			15,200		15,000		65,400		64,600
Adjusted EBITDA		$	64,000	$	66,000	$	275,000	$	285,000
(1)	A 26.0% tax rate is assumed in order to approximate the company's long-term effective corporate tax rate. Please reference the “Explanation of Non-GAAP Financial Measures” section.
(2)	It is the current intent of the company to settle conversions of the Convertible Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. We exclude these shares that are issuable upon conversions of our convertible notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in May 2017 in connection with the issuance of the convertible notes.
(3)	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.

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 (dated February 25, 2019)
*Please read in conjunction with the company's 10-K previously filed with the Securities and Exchange Commission on March 1, 2018, and the company 10-Q previously filed November 6, 2018, as well as the "Explanation of Non-GAAP Financial Measures".
		Q1 2016			Q2 2016			Q3 2016			Q4 2016		FY 2016				Q1 2017			Q2 2017			Q3 2017			Q4 2017		FY 2017				Q1 2018			Q2 2018			Q3 2018			Q4 2018		FY 2018
Revenue ($000's)
Total GAAP Revenue	$	128,383		$	142,719		$	147,955		$	149,071		$	568,128		$	152,919		$	161,306		$	169,058		$	187,680		$	670,963		$	201,301		$	216,252		$	224,953		$	226,974		$	869,480
Growth %		16	%		24	%		22	%		22	%		21	%		19	%		13	%		14	%		26	%		18	%		32	%		34	%		33	%		21	%		30	%
Acquisition-related and other deferred revenue		(343	)		(258	)		(161	)		(187	)		(949	)		705			945			698			710			3,058			313			103			418			1,056			1,890
Total Non-GAAP Revenue	$	128,040		$	142,461		$	147,794		$	148,884		$	567,179		$	153,624		$	162,251		$	169,756		$	188,390		$	674,021		$	201,614		$	216,355		$	225,371		$	228,030		$	871,370
Growth %		16	%		25	%		22	%		23	%		22	%		20	%		14	%		15	%		27	%		19	%		31	%		33	%		33	%		21	%		29	%
GAAP On Demand Revenue	$	123,411		$	136,610		$	140,883		$	141,627		$	542,531		$	146,213		$	154,727		$	161,578		$	180,104		$	642,622		$	193,300		$	206,945		$	215,413		$	218,051		$	833,709
Growth %		16	%		23	%		21	%		21	%		20	%		18	%		13	%		15	%		27	%		18	%		32	%		34	%		33	%		21	%		30	%
Acquisition-related and other deferred revenue		(343	)		(258	)		(161	)		(187	)		(949	)		705			945			698			710			3,058			313			103			418			1,056			1,890
Non-GAAP On Demand Revenue	$	123,068		$	136,352		$	140,722		$	141,440		$	541,582		$	146,918		$	155,672		$	162,276		$	180,814		$	645,680		$	193,613		$	207,048		$	215,831		$	219,107		$	835,599
Growth %		16	%		24	%		21	%		21	%		21	%		19	%		14	%		15	%		28	%		19	%		32	%		33	%		33	%		21	%		29	%
On Premise Revenue	$	772		$	687		$	682		$	695		$	2,836		$	675		$	659		$	648		$	662		$	2,644		$	650		$	606		$	593		$	571		$	2,420
Professional & Other Revenue	$	4,200		$	5,422		$	6,390		$	6,749		$	22,761		$	6,031		$	5,920		$	6,832		$	6,914		$	25,697		$	7,351		$	8,701		$	8,947		$	8,352		$	33,351
Professional and Other	$	4,972		$	6,109		$	7,072		$	7,444		$	25,597		$	6,706		$	6,579		$	7,480		$	7,576		$	28,341		$	8,001		$	9,307		$	9,540		$	8,923		$	35,771
Expenses ($000's)
Cost of Revenue
GAAP View	$	50,583		$	57,937		$	59,815		$	57,205		$	225,540		$	59,353		$	63,853		$	65,794		$	69,135		$	258,135		$	72,837		$	81,942		$	85,540		$	88,063		$	328,382
Stock-based expense		(751	)		(826	)		(929	)		(804	)		(3,310	)		(853	)		(1,050	)		(1,040	)		(899	)		(3,842	)		(835	)		(1,168	)		(1,146	)		(1,254	)		(4,403	)
Headquarters relocation costs		(584	)		(679	)		(760	)		-			(2,023	)		-			-			-			-			-			-			-			-			-			-
Non-GAAP View	$	49,248		$	56,432		$	58,126		$	56,401		$	220,207		$	58,500		$	62,803		$	64,754		$	68,236		$	254,293		$	72,002		$	80,774		$	84,394		$	86,809		$	323,979
Depreciation		(2,692	)		(3,054	)		(2,834	)		(2,825	)		(11,405	)		(2,883	)		(3,063	)		(2,909	)		(2,935	)		(11,790	)		(2,934	)		(3,099	)		(2,991	)		(3,048	)		(12,072	)
Adjusted EBITDA View	$	46,556		$	53,378		$	55,292		$	53,576		$	208,802		$	55,617		$	59,740		$	61,845		$	65,301		$	242,503		$	69,068		$	77,675		$	81,403		$	83,761		$	311,907
Product Development
GAAP View	$	17,272		$	18,878		$	18,743		$	18,714		$	73,607		$	20,387		$	21,290		$	21,885		$	25,890		$	89,452		$	29,040		$	30,771		$	28,942		$	29,772		$	118,525
Stock-based expense		(1,449	)		(1,897	)		(1,900	)		(1,825	)		(7,071	)		(1,879	)		(2,454	)		(2,098	)		(1,992	)		(8,423	)		(2,163	)		(2,645	)		(2,520	)		(2,595	)		(9,923	)
Asset impairment and loss on disposal of assets		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Headquarters relocation costs		(154	)		(176	)		(211	)		-			(541	)		-			-			-			-			-			-			-			-			-			-
Non-GAAP View	$	15,669		$	16,805		$	16,632		$	16,889		$	65,995		$	18,508		$	18,836		$	19,787		$	23,898		$	81,029		$	26,877		$	28,126		$	26,422		$	27,177		$	108,602
Depreciation		(1,200	)		(1,462	)		(1,502	)		(1,572	)		(5,736	)		(1,530	)		(1,561	)		(1,698	)		(1,819	)		(6,608	)		(1,338	)		(1,557	)		(1,381	)		(1,391	)		(5,667	)
Adjusted EBITDA View	$	14,469		$	15,343		$	15,130		$	15,317		$	60,259		$	16,978		$	17,275		$	18,089		$	22,079		$	74,421		$	25,539		$	26,569		$	25,041		$	25,786		$	102,935
Sales & Marketing
GAAP View	$	29,253		$	31,533		$	30,309		$	30,611		$	121,706		$	31,047		$	34,699		$	36,802		$	37,925		$	140,473		$	37,680		$	40,664		$	43,179		$	45,084		$	166,607
Stock-based expense		(2,974	)		(3,799	)		(1,406	)		(3,185	)		(11,364	)		(3,128	)		(4,266	)		(3,847	)		(3,351	)		(14,592	)		(3,541	)		(4,470	)		(4,242	)		(4,320	)		(16,573	)
Asset impairment		-			-			-			-			-			-			-			-			-			-			-			-			-			(2,720	)		(2,720	)
Headquarters relocation costs		(170	)		(184	)		(220	)		-			(574	)		-			-			-			-			-			-			-			-			-			-
Non-GAAP View	$	26,109		$	27,550		$	28,683		$	27,426		$	109,768		$	27,919		$	30,433		$	32,955		$	34,574		$	125,881		$	34,139		$	36,194		$	38,937		$	38,044		$	147,314
Depreciation		(606	)		(615	)		(593	)		(586	)		(2,400	)		(588	)		(663	)		(601	)		(635	)		(2,487	)		(1,228	)		(1,366	)		(1,069	)		(1,289	)		(4,952	)
Adjusted EBITDA View	$	25,503		$	26,935		$	28,090		$	26,840		$	107,368		$	27,331		$	29,770		$	32,354		$	33,939		$	123,394		$	32,911		$	34,828		$	37,868		$	36,755		$	142,362
General & Administrative
GAAP View	$	18,346		$	21,932		$	21,677		$	23,058		$	85,013		$	24,251		$	27,370		$	31,004		$	30,350		$	112,975		$	27,090		$	28,444		$	30,036		$	32,638		$	118,208
Stock-based expense		(3,217	)		(4,215	)		(4,020	)		(3,655	)		(15,107	)		(4,232	)		(6,106	)		(4,779	)		(3,861	)		(18,978	)		(3,779	)		(5,412	)		(5,571	)		(4,980	)		(19,742	)
Asset impairment and loss on disposal of assets		-			(85	)		(164	)		(248	)		(497	)		(24	)		(63	)		(385	)		(52	)		(524	)		(942	)		(156	)		(341	)		(574	)		(2,013	)
Loss due to cyber incident, net of recoveries		-			-			-			-			-			-			-			-			-			-			-			-			-			(4,952	)		(4,952	)
Acquisition-related income (expense)		57			9			266			(695	)		(363	)		(1,210	)		(1,354	)		(485	)		(2,508	)		(5,557	)		(1,007	)		(1,168	)		(519	)		257			(2,437	)
Cost related to Hart-Scott-Rodino review process		-			-			-			-			-			(481	)		(2,228	)		(5,993	)		(2,310	)		(11,012	)		-			-			(78	)		-			(78	)
Headquarters relocation costs		(117	)		(135	)		(162	)		-			(414	)		-			-			-			-			-			-			-			-			-			-
Non-GAAP View	$	15,069		$	17,506		$	17,597		$	18,460		$	68,632		$	18,304		$	17,619		$	19,362		$	21,619		$	76,904		$	21,362		$	21,708		$	23,527		$	22,389		$	88,986
Depreciation		(998	)		(1,347	)		(1,276	)		(1,404	)		(5,025	)		(1,650	)		(1,579	)		(1,738	)		(1,376	)		(6,343	)		(1,376	)		(1,484	)		(1,504	)		(1,423	)		(5,787	)
Other (income) expense		(11	)		(16	)		(15	)		(25	)		(67	)		(34	)		(18	)		(136	)		(115	)		(303	)		(51	)		(66	)		(58	)		(34	)		(209	)
Adjusted EBITDA View	$	14,060		$	16,143		$	16,306		$	17,031		$	63,540		$	16,620		$	16,022		$	17,488		$	20,128		$	70,258		$	19,935		$	20,158		$	21,965		$	20,932		$	82,990
Profitability ($000's)
GAAP Net Income (Loss)	$	2,996		$	2,083		$	4,210		$	7,361		$	16,650		$	8,195		$	6,213		$	6,834		$	(20,865	)	$	377		$	10,901		$	8,479		$	9,073		$	6,272		$	34,725
Acquisition-related and other deferred revenue		(343	)		(258	)		(161	)		(187	)		(949	)		705			945			698			710			3,058			313			103			418			1,056			1,890
Depreciation, asset impairment, and loss on disposal of assets		5,496			6,563			7,119			6,635			25,813			6,675			6,929			7,331			6,817			27,752			7,818			7,662			9,286			10,445			35,211
Amortization of product technologies and intangible assets		7,111			7,737			7,847			7,573			30,268			7,789			8,227			9,335			14,567			39,918			16,384			17,623			18,684			19,017			71,708
Loss due to cyber incident, net of recoveries		-			-			-			-			-			-			-			-			-			-			-			-			-			4,952			4,952
Impairment of investment		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Acquisition-related expense (income)		(57	)		(9	)		(266	)		695			363			1,210			1,354			485			2,508			5,557			1,007			1,168			519			(257	)		2,437
Cost related to Hart-Scott-Rodino review process		-			-			-			-			-			481			2,228			5,993			2,310			11,012			-			-			78			-			78
Interest expense, net		719			1,090			1,079			937			3,825			1,120			2,804			4,813			6,335			15,072			7,721			8,584			6,874			6,780			29,959
Income tax (benefit) expense		2,114			1,545			3,540			3,637			10,836			811			(3,132	)		(7,273	)		24,458			14,864			(301	)		(189	)		683			(618	)		(425	)
Litigation-related expense		-			-			-			-			-			-			-			-			-			-			-			-			-			-			-
Headquarters relocation costs		1,025			1,174			1,353			-			3,552			-			-			-			-			-			-			-			-			-			-
Stock-based expense		8,391			10,737			8,255			9,469			36,852			10,092			13,876			11,764			10,103			45,835			10,318			13,695			13,479			13,149			50,641
Adjusted EBITDA	$	27,452		$	30,662		$	32,976		$	36,120		$	127,210		$	37,078		$	39,444		$	39,980		$	46,943		$	163,445		$	54,161		$	57,125		$	59,094		$	60,796		$	231,176

Non-GAAP On Demand Revenue Detail ($000's)
Property Management	$	36,282		$	38,467		$	39,023		$	39,118		$	152,890		$	40,341		$	41,404		$	42,175		$	43,082		$	167,002		$	45,319		$	46,522		$	47,307		$	47,826		$	186,974
% of Total		29	%		28	%		28	%		28	%		28	%		27	%		26	%		26	%		24	%		26	%		24	%		22	%		22	%		22	%		22	%
Y-O-Y growth		11	%		14	%		11	%		10	%		11	%		11	%		8	%		8	%		10	%		9	%		12	%		12	%		12	%		11	%		12	%
Resident Services	$	45,071		$	54,613		$	58,351		$	60,062		$	218,097		$	60,968		$	64,860		$	70,527		$	75,822		$	272,177		$	77,175		$	85,329		$	94,084		$	93,865		$	350,453
% of Total		37	%		40	%		41	%		42	%		40	%		42	%		42	%		43	%		42	%		42	%		40	%		41	%		44	%		43	%		42	%
Y-O-Y growth		36	%		60	%		50	%		49	%		49	%		35	%		19	%		21	%		26	%		25	%		27	%		32	%		33	%		24	%		29	%
Leasing and Marketing	$	28,925		$	29,618		$	29,451		$	27,562		$	115,556		$	27,815		$	29,324		$	29,334		$	37,563		$	124,036		$	39,434		$	42,845		$	42,198		$	42,882		$	167,359
% of Total		24	%		22	%		21	%		20	%		22	%		19	%		19	%		18	%		21	%		19	%		20	%		21	%		19	%		19	%		20	%
Y-O-Y growth		-2	%		-3	%		-2	%		-3	%		-3	%		-4	%		-1	%		0	%		36	%		7	%		42	%		46	%		44	%		14	%		35	%
Asset Optimization	$	12,790		$	13,654		$	13,897		$	14,698		$	55,039		$	17,794		$	20,084		$	20,240		$	24,347		$	82,465		$	31,685		$	32,352		$	32,242		$	34,534		$	130,813
% of Total		10	%		10	%		10	%		10	%		10	%		12	%		13	%		13	%		13	%		13	%		16	%		16	%		15	%		16	%		16	%
Y-O-Y growth		18	%		17	%		15	%		20	%		18	%		39	%		47	%		46	%		66	%		50	%		78	%		61	%		59	%		42	%		59	%
Non-GAAP On Demand Revenue Detail ($000's)
Subscription	$	110,464		$	123,404		$	127,155		$	128,455		$	489,478		$	134,325		$	141,459		$	152,564		$	158,958		$	587,306		$	169,687		$	179,082		$	189,458		$	196,799		$	735,026
% of Total		90	%		91	%		90	%		91	%		90	%		91	%		91	%		94	%		88	%		91	%		88	%		86	%		88	%		90	%		88	%
Y-O-Y growth		18	%		27	%		24	%		22	%		23	%		22	%		15	%		20	%		24	%		20	%		26	%		27	%		24	%		24	%		25	%
Transactional	$	12,604		$	12,948		$	13,567		$	12,985		$	52,104		$	12,593		$	14,213		$	9,712		$	21,856		$	58,374		$	23,926		$	27,966		$	26,373		$	22,308		$	100,573
% of Total		10	%		9	%		10	%		9	%		10	%		9	%		9	%		6	%		12	%		9	%		12	%		14	%		12	%		10	%		12	%
Y-O-Y growth		5	%		1	%		3	%		13	%		5	%		0	%		10	%		-28	%		68	%		12	%		90	%		97	%		172	%		2	%		72	%
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		$	751,183					$	779,446		$	837,897		$	886,747		$	876,637
Total ACV Growth (QTD)		24	%		21	%		21	%		21	%					13	%		18	%		25	%		33	%					31	%		29	%		25	%		17	%
Organic ACV Growth (QTD)		10	%		11	%		10	%		10	%					11	%		11	%		11	%		11	%					10	%		11	%		12	%		10	%
Unit Trend (000's)
On Demand Units - Ending		10,999			11,141			11,251			10,989						11,112			11,485			12,253			13,003						13,173			15,531			16,073			16,219
Average Unit Renewal Rate
Average Renewal Rate (8 quarters)		96.9	%		97.0	%		97.0	%		96.9	%					96.8	%		96.6	%		96.2	%		96.2	%					96.2	%		96.4	%		96.6	%		96.9	%
RPU
Non-GAAP On Demand RPU (QTD) (whole $)	$	48.10		$	49.27		$	50.28		$	51.53					$	53.65		$	56.51		$	57.85		$	57.77					$	59.17		$	53.95		$	55.17		$	54.05
Top ACV / RPU
Top 100 ACV ($000's)	$	232,031		$	240,850		$	245,947		$	253,206					$	255,262		$	269,154		$	288,315		$	304,601					$	319,642		$	336,943		$	359,144		$	367,017
Top 100 ACV RPU	$	71.02		$	69.68		$	72.63		$	78.32					$	79.59		$	84.92		$	84.11		$	81.78					$	85.64		$	69.48		$	68.61		$	69.00
Top 50 RPU Clients RPU	$	168.58		$	172.32		$	177.21		$	186.47					$	187.48		$	182.61		$	187.66		$	195.30					$	201.45		$	212.30		$	222.23		$	231.15
Headcount
Total Ending RP Headcount		4,445			4,707			4,413			4,410						4,778			5,029			5,231			5,462						5,664			5,958			6,149			6,267
Total International Headcount (included above)		1,694			1,938			1,845			1,880						2,037			2,140			2,206			2,288						2,454			2,558			2,618			2,686
% International Headcount		38	%		41	%		42	%		43	%					43	%		43	%		42	%		42	%					43	%		43	%		43	%		43	%