RP - Earnings call transcript Q1 2020

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Operator

Greetings, and welcome to the RealPage First Quarter 2020 Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It’s now my pleasure to introduce your host, Rhett Butler, Vice President of Investor Relations. Please go ahead, sir.

Rhett Butler

operator. you, Thank welcome for and RealPage results financial Good first to quarter call the XXXX. ended conference afternoon the March XX, on and Treasurer. are today Chief Tom the our our me Ernst, Officer and and Executive Steve Financial Chief Chairman Officer; With Winn, call

that today, Federal statements Securities considered our Laws. may remarks your we the in and In forward-looking to within response questions, make are of meaning

are as subject are materially Forward-looking certain results this management’s of expectations, today on and of actual and based uncertainties statements call, from and knowledge and to risks cause statements. that date the current those could forward-looking differ to

GAAP use also measure today’s in press non-GAAP may by measures are Regulation release. financial Definitions earnings or We comparable measures financial as the defined financial discuss non-GAAP to and included these of reconciliations G. directly most

hand more statements in For regarding earnings With Statement reference on financial please Steve. measures non-GAAP I’ll topics, call information titled Release. today’s the Cautionary section these the and Press over of to explanation forward-looking that,

Steve Winn

Thanks, Rhett. for joining everyone you this evening. us and Welcome, thank

started impact grew million guidance. great adjusted-EBITDA first short within months. about grew the to of March by compared of total COVID-XX, revenue, quarter, million $XXX.X the two a off in to in $X the relative range million $XX.X to Notwithstanding fell XX% to What to revenue our of be trajectory year, XX% and last

XX% to flow, in to million. changes changes, restricted $XX excluding cash grew relating Operating cash accounting

velocity turning bookings transactional contact impact first screening, outlook and is X%. spend of guidance COVID-XX in the was Reduced small, to for expected slower center related year, revenue and half by While QX X% our the lower to leasing the driven relatively by units. impacting are we on XXXX reducing revenue

activations impacts negative services products and living and facilitate for expect some We bookings and will virtual be payments. leasing, by that to increased extent offset these

adjusted-EBITDA a in is our larger guidance to X% reducing revenue. are percentage drop full-year We by X%, which

lower marketing to sales revenue increased will some that and transition do costs accelerate view to or clients due our improvements, need intend given we expect adjust to virtual to not products and productivity of spend them their the operations. an for help development more and services we While variable have that realization product reduce

that return to normal year. Our assumes, quarter the adjusted of client third guidance by operations state this

already are data, a in We in that I’ll minute. you more well. signs of Tom detail as provide will seeing in a context the recovery with and prepared and remarks his share

sheltered economy the vast was near a RealPage and down has residents we’ve reveal apartments. XX,XXX asset over been In by conducted the XX to location last shut geographic in insights insights instrumental in real-time as day-by-day information, relevant providing industry including and webcasts unique providing attendees, their the class. what happening of with XX amount days

contributing data at to National funnel, well We’ve data Housing payment to additional look rent effects rental been Council to to points leasing impacts, as from Multifamily as living. our own effort the of the to wide marketing, monitor throughout COVID-XX industry collecting

clients Our payments. collection of about especially concerned rent were

and accurate an of insight XX.X% in to percentage that’s decline. a of paying XXXX paying The XXXX, from us gives units immediate X.X% went rent. data April payment units April in the rent real-time rent of XX.X% into repository of Our percentage of

Great like national impacted by the than Some Rockies industry experienced more parts COVID-XX pain. and declining of more the the and Plains hospitality Texas areas and were the states to areas country, sensitive hotspots average. Other less

anything matters. pertains to estate, So, like real location that

NMHC our May industry paying able could units that and given websites on website follow rent increase NAA. unemployment, in the percentage drop of in like the to further, be on and you anticipate We should that or

XX% by percentage of range in slides our The a change the data but by traffic multifamily end XX% returned XX, relating on focus to included changes April. March leasing in dropped has the environment. to IR also We positive that in to deck XX% website

looking still for are residents So apartments.

X% up of but even, the bottomed a the to were end end positive to rebounded last executions of almost then lease This by year at of February, XX% the New is end but March, year-over-year out decline by sign. at April. very

percentages about the end flat of by Renewal over were weeks, February, at up jumped within but two XX%.

dipped are increased mid-March, a the in seeing lot while we leasing of offsetting numbers are these that While around, leases overall in are bouncing overall renewal new activity. decline leases

data in include solutions. responded projects data prioritize our industry and to to Performance Business providing and to Intelligence real our quickly delinquency in clients our teams addition In Analytics more time, metrics

the into in going trends. added our allowing daily, delinquency rent result, and monitor payment to of a dashboards cycle, rent monthly range weekly a we’ve May As clients and metrics and

out effort our team’s maps, XX response to BI last on insights the already top over housing their full This accounting highly fluid have delivering of road days. I’m included that more and the in quarter. which affordable was of unexpected very played last into proud events and the

work of science, responded to without our did and disruption great business the to data internally. addition In we any clients, it we strongly suffering

XX% to that with workers able in In out locations four case of of Operationally, work of we spun from placed temporary to loss possible to anticipation temporarily transition home we shelter-in-place XXX needed in employees weeks. to over work of labor X.X labor of service. orders transfer we regions, up our specific matter from were in centers were due a

implications expenses, pandemic. levels service of clients were our were global increases up systems between decline they balancing leasing Our and no offices. of that systems XX insurance, payment not centers the during workforce our electronic dynamically volume, staffing our since unprecedented globe. geared the increased did accept contact discuss their longer locations most but will work to in Tom these We the around move

an has impact business the had think about COVID-XX way the on forward. we going

to launched we First, initiatives work-from-home productivity. improve

maintain our since employees to XX% with here levels We’re success extremely our been we’ve with over at of pleased able home. working service

productivity productivity our seven We margins. programs to to to drive profit to COVID-XX impact for maintain the continue elevated adjusted of we imperatives labor intend began to our As one have core future. and our business, cost improvement

help One AI call solution. reduce example that chatbot a which of chat part deployed X.X is activity, and our and center announced Center this, yesterday, of to we new Contact we is developed

clients access we functionality chat using are pivot to chat are a are live that resident chat AI market to to person. with because the augments ever only our in service Our wants agents who delighted it prospect the if or the the real

productivity not be clients can solution maintaining us understand it that preprogrammed, be to chats This helps improve more allows RealPage price-competitive helps margins. who while and and all

the only one not are We about thinking productivity.

one a crisis the has reality office. leasing operate visit live on tour, schedule office lease virtual the property the is can video amenities current journey. RealPage proven to clients see virtual a come prospects times online. possible, there and prospect and intends unit stark then need this facilitate the their The leasing they that agent that online, are Our to to have every with of walk the no conference, properties where in aspect with

There had When was rent more move would site was office. off already reduce dependency leasing so staff. leasing and there residents our to at a off pandemic in drop more In site the to and on their in one industry the the the the no hit, online. check trend office, go work past, residents

resident the May. XX March our than to migrate beginning XX% living virtual of Online portals replacing millions XX% more weeks. beginning And in of astounding, helped We usage of in checks. the of paper have to a few days jumped most the jumped payment last online literally transactions from volumes residents matter of a

focused owners a particularly serves this property broad are range We in in acquisition challenging helping virtual managers this our and time. on customers management payment see systems high-value of and ClickPay and and York services based XXXX, helping solutions. to clients into is living continue in integrated from weather party with multifamily, New single-family leasing on now solutions, our and third markets ClickPay top of ClickPay’s storm. HOA virtual are our

disrupt in HOA We made further imbalances that to demand from ClickPay, and rents clear to going in in normal the marketplace. and our markets it government to also intervention local these see continue crisis for more current The our belief drive open is also supply state more viability out RealPage. of industry proving an that and sales

management, limit best work when credit, We terms in of behavior true. demand, think lease by might actions high. to revenue is opposite government optimizes the you floor AI volatility which agent QX, leasing management While happens would and revenue just announced it the plan is effectiveness and type,

April. leases leases Using We with our management were group engine produced points on yield on points the they compared of and database, peer yield the price months peer new group. and units compared we XX benchmarking revenue that revenue-managed, XX broader price are pleased to the of that in incremental submarket March incremental that basis renewal of the for against each compete basis

leveraging time. Systems, more XXX management. relying Flick, opportunities of long were Management our that time difficult was by drive all, teams this, of peers than the “As Camden their RealPage identify increased Analytics right surprise who submarket preserve technology Camden on renewal James to is know times.” full of management greatest and at points in percentage the in revenue their NOI revenue a getting using to their performance, shared a the it Perhaps Property Management Trust all revenue these importance Revenue drive of sites basis leader advisers Revenue we heavily Head and not to

optimize Camden and face Overall, revenue. calm we’re like in very to the pleased that are science crisis, operators letting emotion seem of trump this owners

this highlighted the their crisis a have increased they a current current renter by If or that apartment apartments other an keep resident or that retention. they manage, effect Another can less in of of importance owner new the to is own find. one is network

those XX%. can Portal if year, our for been have earlier offered we are and like years hover RealPage number programs, go and rates now rewards Retention integrating by company into loyalty Modern employ Message Resident that around acquired this past Modern you up the and increasing ActiveBuilding. solution, steadily a XX Message, This

close online generates compared clients, much because and now on showing average to Modern of we over Also, with to improve the over the X properties.” top-ranked their Message destination lowest one traffic highest per Google. look properties our helps To are reputation Message online half largest for properties property, as the now reputation to reviews XXX when “Our need quote performing we is data renters than million other reviews leads our reviews. online that support Modern

important all applies more Never pay information than payment. rent that has willingness to seeing job resident’s reason, ability relying residents of and on their This they’ve also not lost COVID-XX-related increasing about to struggling doesn’t amount and We renters. are to also timeliness to are this their now to just been to discern screening databases. because it algorithms without rent for payment for apply make just the their it eviction concern a pay, measure

we’re and Screening, accolades AI receiving rates who last pay, which default year, that tool. innovative our screening willingness is addresses we this lower achieving with released from tool owners to are

For test Wallace example, Realty prioritize to a willingness help pandemic. JVM predict bigger over Courtney to global than obligation of at AI renter’s their ability others rent said, no “There’s Corporation a Screening’s

While for the we delinquency expect unsure we what much a portfolio ended in with April at to X.X% place.” were an of uncertain Screening improved during situation, AI

a Buildium customer base. acquisition working we’ve update that efforts, ancillary RealPage integration offered As services on to been quick the can our be feverishly unlock to

base. acquired the utility have As and may market. housing, this SimpleBills, single-family both acquisition, was of Buildium year our the Since underpenetrated installed for of share by Propertyware differentiated RealPage launched last service you the market our solution integrated Buildium in in and SMB and December segment in expanded we’ve billing recall, the

In addition, LeaseLabs we the be websites hole offering Buildium filling Buildium will to customers. a in product,

investor the clients expanding Buildium for be offering Buildium offering we’ll who of need low-end clients, and available manage IMS reporting. our soon systems to vastly version insurance to Platform We’re a

Buildium now million. expand $XXX for SMB SMB SMB a the As first value acquired our RealPage We a the is in housing market. contract whopping underpenetrated revenue Buildium and to quarter, annual in is our of believe we market. XX% rental largest provider reminder, the jumped software the presence SaaS total nearly

innovators our are that in which view, to third-party the innovation important, platforms, We believe we parties ourselves. third SMB be intend into Breeze our platform, platforms few to releasing will can further industry stifles can months Most up over Both our integrate announcing RealPage, new be and with and that closed platform. so next AppFolio complement investment RealPage be us. should Yardi differentiate we’ll in open innovation. our SMB, At APIs so

has shocked RealPage COVID-XX through rest year, believe into environments, for While on the paper accelerating to of impact that negative well had we our will a virtual a pandemic industry operating has move from future. move this that continue long-term the bodes short-term our the

the turn Thanks I’ll that, over for joining to Tom. With us call today.

Tom Ernst

them also I adapted the team could work good swiftly months. their to our And, team’s residents be of and Steve. challenges communities needs, adapting safe mitigating two unemployment financial social changing to also the the enabling not changing prouder their over RealPage everyone. customers properties. employees distancing their response to support Thanks, afternoon on environment, while of for make while The the and last

essential so. to an customers, to deliver they On its behalf and like our upon a us would provide service RealPage I thank to doing committed to deliver. we customers, fiercely and public, you. team did We We rely very big which remain to give RealPage, of

We to deliver is positioned this believe RealPage very well commitment. on

drive capitalized, and cash recurring in, invest continue to growth proven that provides a business our well strong need the innovation allows and value. customers We us flow have are and that model to shareholder the that

was in to in and even and of compared when that fall the activity starts significantly winter As years, through runs seasonally prior XXXX. months Steve depressed low XXXX seasonal leasing mentioned, to compared beginning of the ramping March normal March the

is our we growth, seasonal and the growth. strongest sensitivity second less activity is these fourth have While our driven the followed third revenue the first subscription to quarter-on-quarter showing our historically pattern largely in unaffected sequential and being has and model be do by observed normal quarter for business quarters This trends, with can some seasonality. typically

quarter. Moving the to on

backdrop. for revenue of activity, with leasing along driven of an quarter end end low responsible internal high which performance the activations, new in of organic range February. quarter. growth Total track by in our the for guidance the despite The macroeconomic and project financial on the primarily with We on slowdown were grew year-over-year, budget solid first The near revenue slowdown guidance XX% basis. included revenue at our the end was were range the the performance revenue XX% full

million and operating earnings performance Adjusted-EBITDA $XX.X of generated of cash $XX cash. was we and nearly flow XX%, strong. Our million grew

thought While would revenue type with significant anticipate stand-alone data additional as on in that $XX million not year-over-year, quarter, on adjusted-EBITDA over full we first growing this XX% of we do disclosure Buildium RealPage. basis. reporting on over a margin of Buildium a the helpful quarter of the part continuing basis, be expansion contributed during

consisting XX% XX% to multifamily units new and units. nearly of compared prior the from growth unit XX X Total per was with RealPage managers units, with ACV over We growth unit million of SMB growth. million owners X% units the ended and year, consisting quarter X,XXX revenue million XX.X and over

bookings to experienced a start Total the year. production strong

March However, did slowdown. significant see a

strong, members of We the team are quarter seeing but as sales growth early year second Total XXX, is the end prior to the the were quarter. signs of XX% compared at improvement quarter proceeding. representing

infrastructure. year prior investments acquisitions, and by to initiatives, investments XXX the perspective margins administrative invest profitability investments adjusted-EBITDA We in and contracted driven modestly including on to adjusted-EBITDA climate general and period. growth and QX, XX% productivity. focus to the points expect under nearly continue by current From a were and Lower continued gross force sales basis by here margins to and margin compared

Product more a initiatives as be drivers continues basis our revenue XXX in development more towards to the enable us early efficiency to of decreased and at projects. that maintenance cost points in percentage XXXX implemented nearly optimizing allocate year-over-year primarily while driven projects detail. innovation resources Looking by

force, sales marketing XXX points in and XX was basis reps. primarily percentage revenue and total driven costs which our by increases of over Sales by year-over-year as a increased grew

were pivot in SMB we the the capacity crisis. lead Our as primary area COVID-XX of investment in begin and during business generation to

and was investments basis over infrastructure and incremental drive costs administrative by increased points XXX percentage long scale of driven costs acquisition efficiency term. to a General the revenue as primarily year-over-year and

and we exit XXXX expect As into move we as XXXX. we strong a leverage G&A as result,

we excluding in of changes. the $XX generated nearly quarter, During treatment operating the accounting cash impact cash, from changes to million restricted related

comfortably is leverage Our to is we within X ratio now times is this operationally. believe X.X range X the times optimal times,

our the take support with execution performance how the the essential plan, As year, and for our far unfold. confidence we a of This cone business SaaS scenarios we in our the wider challenging we uncertainty to albeit the the in continual of customers’ provide thus environment. model outlook turn to combines macro second the quarter and our for growth nature of enable around visibility intrinsic with our

and guidance, to we leasing like levels we customers’ work the activity to second to the scenarios turning range, a the In the new of in our engage assumed high that frame to I’d would establishing the Before the see return willingness ramp-up over contemplated. of end quarter and we continued levels, projects. remainder year,

in the saw of of engagement the client and that we season activity high bit from XXXX or half At we In activity in a second recovery the that see in addition, end for range, April. the of assumes the duration macro the catch-up either initiatives end of little a assumed levels leasing will the of low March new leasing we year. in

our million While assumption second organic at to include this X% thought may end a revenue non-GAAP the macro like to million, given $XXX prudent of to low seem growth the outlook XXXX for Accordingly, quarter, its growth. for nature of expect we scenario guidance. unique we the potentialities, including which of our X% of XX% that $XXX XX%, represents planning to the harsh is;

expected margins $XX million, to to of XX% million $XX which be is to Adjusted-EBITDA represents XX%.

the second the the that margins investing areas as marketing year expand for in quarter, and in to progresses. COVID-XX, be above incurred initiatives spend that expect to to need over our that expected The but and and comments. has respond ensure that for impacted went beyond we in also million of to centers labor in temporary spend product the is Steve ready are the adjusted-EBITDA his mentioned including establishing only quarter not these second we plateaued we Our by and $X we during customers,

to is per expected Non-GAAP share $X.XX diluted to be earnings $X.XX.

year, growth revenue expect billion $X.XXX full the XX% between to to billion. X% XX%, For represents This of revenue X% on to an and we $X.XXX grow non-GAAP basis. organic including

Adjusted-EBITDA is margin expected XX% million of of our revenue, of basis to previous or versus be $XXX a representing million XXX to points reduction $XXX guidance.

costs spend, lower and we we view reduce some due or our revenue to improvements, to realization $X.XX. While to not services product is that adjust their to intend will more variable need to marketing the products do sales development Non-GAAP per an $X.XX expect help of and be increased to given clients transition accelerate earnings expected and them for virtual operations. have diluted that productivity share

on to we current we storm have In the and macroeconomic solid financial summary, are believe footing during a the strategy backdrop. weather

We are we customers, proud remain to through committed supporting of this and we an and essential service to-date to our our are performance our unprecedented challenge. fiercely customers,

by Lastly, in a COVID-XX a half the to event the to of moving the we our are packaging customer weeks together RealWorld, due Analyst holding August. primarily be some to will virtual investors. Day benefit we from the content the event Day after able for By crisis, of of couple Analyst first

let’s This concludes our prepared please. comments. for open questions Operator,

Operator

is [Operator John Certainly. Stephens. from Campbell coming question first Instructions] from today Our

line now live. Your is

John Campbell

Hey guys good afternoon.

Steve Winn

John. Hi,

John Campbell

longer-term on touch called managers creative how guys and I this. of trying kind contracts? do if just are out. Steve, whether But I property you missed then lease renters talk when activity you any you could so to long expectation want maybe of And guys you with I I are hop So, muted? just maybe being on hearing forbearance leasing lock into late, kind to and think, that if the existing terms less rent stays around to had turnover you on apologize can to commentary touch

Steve Winn

only X% rent pleasantly that were dropped in collections we Well, the April. surprised

had unemployment Given shutdown that amount would and the of higher. the literal we be anticipated,

was up, and that stayed COVID-XX, rescinded around slide planned time and back that announced we that the came to or trend for Tom quickly it event three back. deck had to see began four down move, vacate their we everybody right IR a was put. to probably collapsed most have in our activity It only shows Hanks notice that fairly and but encouraging weeks, had Leasing a the he

new saw which jump mitigate in reduction leases. the renewal in And so we a helped rates,

seen went of not and over, you in I expecting we’ve is the is quite worst, This think encouraging. So, what course.

to predict going can’t returning are right where But So, it’s now, go. normal. we to

Tom Ernst

deck. Yes, data customer John, some with a in activity in, we from analysis put our typically look in website slides the that deck as base same-store put overall at our well. be across I’d along take encourage thought the we might our investor leasing helpful from you traffic customer that don’t base, We to around dashboards

seeing So, is it, what an you off been the can really see bottom. a and it’s knows V, May encouraging striking kind of ramp the brings, data we’re it but who that as

John Campbell

And, additional I much thought helpful. That’s don’t Tom a would know I it detail you this, I give shot. on Okay. how can give but

XX% can level, where On like? to know revenue, on what down I obviously mean type product I you don’t mix to the now. basis? the XX%, transactional maybe like go of or looks Could if down that’s just segment falling segment revenues to that talk the a of you kind

Tom Ernst

transactional our of ours business, based our activity Screening majority levels, one where The property. business. that example it’s that’s payments underlying of software the we on within have get subscription, activity based subscription the is have, components actually similar component with but that multiple at as our We on of a metered products

metering businesses, a transactional basis. are So across there our multiples some on of

the analysis see seeing the changes shows X,XXX driver XX%. activity, communities. new we showed overall you’re at the This in that The end of the is it behind, March, same-store percent in the actually across and seeing over on leasing where can the you was were data down entirely we leases

the So report the that’s rather in towards to the our end you range sense. a guidance give than us drove of quarter the sensitivity that end to high low

John Campbell

yeah. Thanks That’s Okay, helpful. guys.

Operator

Thank you.

Walravens coming is JMP question Group. Pat next Our from from

is line Your now live.

Pat Walravens

the about business. bit little a talk I payments Can much. very Thanks Great.

So $XXX million. Resident Services was

people don’t my their the fee, they people and are, but now? you lose you want check for are on payments I I as to used much the pay hand someone. And so as guess don’t to and checks how transaction what the takes of is assume to, I then puts other some the write that if hand mean much guys questions rent, payments? in And

there. seeing more you’re maybe So activity

Just love thoughts to hear around that. your

Steve Winn

Well, online. overall, everybody payments are way up went because

paper the leasing You couldn’t check you take to to go had online. a office, so

of mix the growing. because payments actual different. It’s materially business volume has the our is changed, transactional So, not but up, is

Pat Walravens

of Resident Services, is million that Steve, much $XXX of And payment? how

Tom Ernst

the So Services in don’t it up, Resident Pat, the we line. largest is payments break but

Management are payments, the are largest Utility payments and Insurance largest. with Renters Our businesses, being

Pat Walravens

And York then, when you like different the York referenced talk What’s about ClickPay you rest New country? seems Is for payments, lot. of the versus a it for the solution evolving? about New that something that’s

Steve Winn

strong ClickPay mentioned in happens York, New and with had was RealPage was ClickPay we’ve because it New And, market. not. much to largest so York their we and success be

You in have anywhere like New to else pay through. York rent

Tom Ernst

York seeing in the New more that online. we’re where are seeing Steve to same as Now in the the payment businesses ClickPay, you’re trend overall business alluded we

performing it’s well. So,

Pat Walravens

me great. Okay, on subject. this one And last for then

So, drop April, or know June, what collection what X% guys you in you rent are are May expecting and modeling? you for

Steve Winn

clearly. early, It’s

big be a slightly downward. not probably I’m shift expecting is Our will lower. it expectation

Pat Walravens

Great. much. Thanks very

Tom Ernst

Thanks Pat.

Operator

Thank you.

Ryan KBW. Tomasello Our from next today question is from coming

Your now live. line is

Ryan Tomasello

evening everyone. nice and Good to all well, doing Hope of speak to you. everyone is

clients? how then volumes? you project transactional new similarly, headwinds screening, from that more leasing know the point XXX revenue temporary Tom, assumptions more in to XXX revised how Just these turnover of reduction, And to specifically levels much delays relates from you to the drill a like of wanted activation bit major and and of down growth lower the much XXXX bookings to can quantify basis things guide. relates into

Tom Ernst

Ryan. absolutely, Sure,

roughly are levels through of definitely is the the driven. and bookings two those activation biggest So, the from the assumption. at new headwind leasing they midpoint planned in scenarios, both magnitude our the activity projects, planning That versus factors, equal we as are and

Ryan Tomasello

just amongst are consummate environment? regarding smaller, you if landscape, an more this at of seeing in Okay. of approach Got see what landscape there? and unsolicited appetite to taking in the volumes leverage the might to to And we start you M&A you have the And levels, Do areas most there? what you underwriting inbounds market it, of increase value, know new that helpful. these M&A present then that’s the players so, kind specifically, interest distress assuming you in and are

Steve Winn

almost is a that with the There creative place many RealPage, and with interest these XXX competing all in happening over are M&A heightened of a one of There’s clearly companies is or innovation areas. companies. lot another

I it is business intends and as as down, as because and we environment can in pick have just used evaluating on most the be think opportunities be, still many prices the active most of is to not model. will our come those to are these as and strong complementary RealPage that leverage

Tom Ernst

Again, range, that more are are such clearly to comfortably at we market us. too is as There we about as the that. X% X% leverage, in pockets ancillary rentals like think some look spaces. to we’re a where we X.X% that’s in are that the come seeing we as think optimal for down, under or in some have stress prices at range as already started short-term so And Ryan, leverage, I mentioned my the remarks prepared

want a smart up the environment, which us as hesitant little high an X.X times. do Now be always and X we probably if credit even that a to accordion are there or do to close take to given less But, uncertain can that an we that we attractive in our our facility be times allows would leverage will help innovation, we’re areas to a look. to contribute recognize, environment to, an go levels

prudent definitely uncertain of environment. an But thinking about in be we high leverage will levels with

Ryan Tomasello

Thanks. Great.

Operator

Thank you.

William Sheldon Blair. question Stephen from is next coming Our from

now Your line live. is

Stephen Sheldon

there products more maybe pushing environment, daily I’m yet to gauge wanting data so are they’re maybe on the clients been and really And ask types activations? guys. activity in or about visitors to by this average just category, And product? willing recently, bookings what decisions product that’s make not to notably of anywhere Wanted activity. where Thanks. above-average and far out appreciate focused leasing and or Hi by on is in below XXXX

Steve Winn

We of interest see lot leasing, living a in virtual and payments.

last allow I And, tours, there. platforms originate to was two months smart will operators accelerate I it the think fully in take five capture slowly for demand them demand, move going them. massive do all XX to to apartment go towards opens the to deliver or virtual that virtual, the but way. trending to and the lock demand, get even What’s screen code think a in online to this going that close demand, years was is that a industry happened

So, feel we’ve working that development development some on want been and in we on that accelerate that’s even for this time been to some going is like area.

that home. our has trend, residents are to with do mega more view going at work in Another now to

can operators owners deliver will those experience at that winners the and work the and in future. most So living apartment apartment be the the convenient

portal so tools saw And, XX% are of my the as our increase of Portal. we offer I more that a in more Resident we to remarks, and important, in become usage and said going many

So, I going change. to think that’s don’t

think the to they’re are residents it, and hooked I with going on stay it.

Tom Ernst

too. team leasing moving campaigns and Stephen, XX% that shift to that, successful made about payments a and drive packages rapid we’re these some virtual about, of together the to talking to in That the living, businesses. is to here and put pipeline I’ll add that of Steve shift

as resulted So, significant well. in that was quite deals successful and

to significant I impact commented March. in But, did we results, looked impact the late and in bookings, depressing my see particularly as we how results at or

and early bookings, as driving have broad-based. in at we’re actually looked that, of We seen teams recovery signs the pretty where it’s

the do, in including expect we deeply a more look what So, across even coming are of pipeline, of the we such range student at would areas number some April. seeing might be impacted you as midsized deals we’re late they big in as

we So, kind had an overall it’s recovery, albeit definitely it’s lower levels pre-COVID. broad-based of than encouraging planned

Stephen Sheldon

product any that’s March was in in category? guess, And concentrated helpful. Got I that the weaker bookings, specific it. late

Steve Winn

Everybody do to is exception, No. bought instantly. up survive. down could that to and hunkered payments was There freeze paper anything with literally a to they one electronic, get from they

Stephen Sheldon

Got it. if And one could. more, I

meaningful come Could wanted self-provisioning. and Just from the streams that this simplify about processes and know ask to to I revenue restrictions? be be what more implementations you’re could year? environment in-person to for implemented it have allow live in progress and a risk headwind made this working

Steve Winn

when we’re managed concerned and work-at-home our fact, went the performance we quarter on that and implementations, productivity think we’ve with I decline. in don’t But, very exceptionally We had very, of an tightly, pleased to were the the good so. that we would team.

load - ship around any at and so in, and work problems all world, saw it was XX% that for customers location we the the say U.S. could a our days, it. it we a of have Philippines also balancing or India didn’t had work-at-home. of were We never couple the being all, down was if service-level done to work We was

continue we’re gated or So, our I having don’t any to home. implementations to long going ability some time. a this accelerate of implications everybody people to see don’t I and work environment being by, back our think at to bring for

Stephen Sheldon

Make sense. Thank you.

Tom Ernst

numbers, the at Stephen. Looking

roughly did numbers, what with as we pickup at bookings, April had track our so particularly momentum, of Looking a looked implementations as the happened the and we progressed.

So, we with new backlog, roughly producing up effectively ended not they tracked.

Stephen Sheldon

you. Got it. Thank

Operator

Thank you.

coming Heckmann next D.A. from from is question Davidson. Our Peter

is now line Your live.

Alexis Huseby

a ask I Thanks Hi few wanted guys. just Pete about questions is This our question. behavior. Alexis for to taking on customer for today.

units, requested like versus larger your clients the I’m you any million pricing major customers sounds you’ve wondering behavior monthly on kind concessions payments? have part a relatively SMB that, in or of in-line of for waivers smaller, and if it seen have So, with not difference whether or X if and

Steve Winn

had very actually collections. strong We’ve

than Our DSO is better today been. it’s

Tom Ernst

in three quarter. Actually this last best three years we’ve yes. our the DSO In years, had

Steve Winn

top we’re on that. of mean I

an We are service. essential

end multifamily actually is lower turns of know that and the one decline C apartments, more the of pain out you space, customer base than than another? suffered B. So, the which A in less It Class part are

is going not clear be SMB it’s impacted. more to that So,

not that. just seeing We’re

Alexis Huseby

the I all helpful. really incremental definitely That’s data. appreciate

continue part event say So, the on would filing bankruptcy in that of, vendor a cases would Chapter most be company to XX in be the of the management paid critical property a considered, a firm?

Steve Winn

can’t systems that RealPage an really today You online without operate all offers. of apartment the

the checks spreadsheets fathom So, everybody. would situation just system turn to paper I where and can’t operator an go a for off and

to and RealPage cut. I think think we the are last an I of would essential service, be

Alexis Huseby

wondering is volumes? enough. hearing the downtick just one leases XX% leases, screening between And course. of volumes. about the then renewal it in boost the new last that offset relationship How tenant Sure, Yes. to affecting one, the was payment about by great I’m fair

Steve Winn

mid-April, lot. down particularly down, Screening through it mid-March the in a was was

that. looked at slide track leases, you If showed that will screening the new

it’s It’s to but down, was pre-COVID it So, back recovered. come this point. levels at

Tom Ernst

most as closely, have we the data. in scenarios don’t recent But, we of screen, of, outlined in we’re is we that planning so the the that say I end Although, our kind that assumptions, in range. watching growth assume year-on-year the for high

Alexis Huseby

you. to That’s Thank know. Okay. good

Operator

from Thank Joe [Operator from Our is Vruwink Instructions] you. coming Baird. question next

now line live. Your is

Joe Vruwink

can the these How million leaning might how to year? talk, I’m And category prioritized this EBITDA in longer that everyone. midpoint. on being if wondering categories actually of think that a start about strategic of you winners ROI midpoint take I $XX maybe in that Hi of to reduction that investment kind the do is it’s be some much on to place you term? think Great. then

Steve Winn

This is full year guidance.

Tom Ernst

Yes, year guidance. full Right.

Steve Winn

is, we of do course marketing product did and most $XX reduction what’s of What revenue our not cut The driving that development, budgets. was Yes. million. sales

those we the declined would we like have play. really in at need dollars we tracked. to had But, then feel So, X% X% keep EBITDA to those

There’s of as opportunity. is virtual, want from be always shift new at to be Crisis and as going as this drive that shifts by followed too paper rebirth, the and industry is shift that a we much and world possible. really to forefront much our to

weakness a show don��t So, moment. this at

Tom Ernst

acquired top And spoke and when we outlined SMB also, quarter. priority, we mean in remaining I strategy invested last Joe, Buildium, for are that’s also the we you we that

acquired growing XX% their them. investment. significant So, full there, quarter, they first that’s to they continuing in when we’re we They’re from strongly; growing hire so XX% were the grew up

remain continue us that. invested So, look for to in to

we product continue go-to-market number invest we about of a initiatives but are detail standpoint talked a standpoint. to we about quarter, other in and development on - talked didn’t previously that this that from We’ve

Joe Vruwink

Great. of I’m But, one. about I think you in. practices saying organic you rates as by five idea of when be you online was higher year pushed not a guess about have be? of low relative it would to that, XXXX, to amount? already do that thinking into some think a but just any what a Steve, matter I’m XXXX you you structurally trend Do within changing amount that kind might months, be helps XX what interested maybe an leasing couple that rebirth unfolding, the talk is When about growth that gets XXXX, expected teens, of look to

Steve Winn

long-term We’re still a committed these perform, to billion our backing million guidance, revenue raise result. I changing don’t we a on I basis. we $XXX XXXX it. how mean investments off may adjusted position run point in to that not not more a $X.X but clarity change goal as we’re rate objective and at that of we’re on but in are of get going that, If is COVID EBITDA of think to this

Joe Vruwink

everyone. you Thank enough. fair Okay

Steve Winn

Thanks Joe.

Operator

Thank you.

from Jason KeyBanc is Capital Our question next Markets. from coming Celino

line live. now Your is

Jason Celino

in budgets propensity unable you to was but come in. Thanks think the you fitting owners has for guys. Hey customer see and me in think little conservative? also been let’s still back? better you May their tenants rental lot and bit markets it Do the will of and still be do comes A of say need April Or a year. this June, around feared than better say, pay. this payments, can uncertainty to fear we

Steve Winn

and money so efficiencies X% drive it buy residents, improves to are know think the works going real, collections are for I virtual from movement spend bottom so line, this now. returns their fast on Notwithstanding to they’re going because will technology owners and that X% to they their and going industry. the

is to a fall are going lot going drive that. it of and an were actually I derivative at and and be figured virtual working technology going out we’re products will was virtual the of shift, few huge. out last to And will that but apartment orchestrating living two this there and works, a services that operators think that months There has that happen, had proven

bullish, And, of rebirth there’s change of on technology a I’m excluding be a billion think revenue so way going a going to about operates, spends mean in more about RealPage Telecom. industry is technology our do the and XX% X% has $X The spend, today. think industry important. become I technology I I to and its

grow technology, spend And on hoping overall show we’re and that which $XX and helping pie. next they five share that, XX% above more be the would absolutely them there, at RealPage to the of should and the can grow will X.X% convinced I of than the am because we our over economics years is hope the grow would billion, get we industry market helpful least competitors

Jason Celino

maybe that I property, it more, multifamily fit velocity that The versus one Okay, be single-family great. That’s in property different will you a do it if actually pretty it could a in. you same? anticipate, slowdown for would think helpful. leasing be I or guess the

Steve Winn

see difference. down. differential, may a seen in early haven’t Again, there everybody hunkered it. mean but We this at we so rebound, I this be a it’s point don’t

Jason Celino

Okay, from Thanks. all That’s me. great.

Tom Ernst

Jason. Thanks

Operator

Thank you.

from Our next Auty JPMorgan. question is coming from Sterling

Your now line is live.

Jackson Ader

on versus they to our This cross-sell maybe bookings their delayed A additions balance tonight. the maybe for from new is, terms side, maybe of between Jackson Great. just decision have we net looking the is could is Sterling questions about and in existing deals, being talk that making? their logo Ader delayed first couple RealPage of customers

Tom Ernst

kinds was things in the even from I getting both. customers are add-on mean or it think new or impact I environment, of we was saw whether deals the an we calls me in already of RealPage, I’m with excited were same. calls this the please. about couple were in that backlog, emergency I’m dealing weeks, a an right back Call the but now.

was it across So both.

Jackson Ader

Okay.

other? know necessarily to than impacted nothing out, one So call more you way the

Tom Ernst

I don’t think so.

but and You to mix out. new mentioned Obviously, but looked Steve and add-on, only know are of living, we payments. what is, not it big still its nice product broad-based. Otherwise, as well. a virtual we’ve shift as highlighted I at the to fairly call the set booking seeing the it’s we’re as That’s it has early, across shifted, leasing been it’s we as has post-COVID, pretty

Jackson Ader

view RealPage? do the you you And customer net negative net handled consolidation? Okay. that maybe then for How end positive, a as how you. Would Steve, And a in to have neutral follow-up or you past? that view

Steve Winn

more that think only there’s some couple been this in Residential, and There’s XXX,XXX, consolidation owner to came XXX,XXX later. but have industry, remember a in operators when than I lot. Equity not XX I industry, years had units, we this

a there’s size that of nothing increases owner remained suggest massive there’s that one industry, the of or and to two operators. it’s fragmented going So, be in would

of at million. XXX,XXX XX they’re is and Greystar XXX,XXX out the units think I this largest, point or

Jackson Ader

Thank Okay. you.

Tom Ernst

Jackson. Thanks,

Operator

you. Thank

question is John next a Campbell from Our follow-up from Stephens.

line Your live. now is

John Campbell

guys, near-term touch on I again, some very, to all it small mix shift piece I it folks bit very seems a would maybe but maybe payments Resident is on you for know a Hey follow-up rent business the Are thanks. like quick at business, seeing of wanted here, the to a load that sense One little Direct, there? card. make of credit

Steve Winn

it’s up to that more pretty credit for some it number had agreed We’ve that it have fee residents. in process. are a owners bit has total we’ve shift of the to still on gone last their But, to card, the percentage cards two we help and - transactions pay seen small of the little months. But, some credit

Tom Ernst

Yes. I John. small, wouldn’t as characterize it

a successful of part count, it’s for quite the is been think small overall it’s I successful. a us. It very been but product

Steve Winn

it. important. Resident where Resident trend clearly the Direct pays Direct resident where to moving and the It’s the small for Direct relative the it, Because that is Resident is to. not Yes, is direct. Client Direct pays industry client Client for

Operator

Thank reached our of teleconference. the end does session. and you. ladies And that question-and-answer gentlemen, conclude We’ve today’s

thank We You day. you wonderful this time, may disconnect a your today. line your at participation and for have

RealPage (RP) 9 May 202020 Q1 Earnings call transcript