RealPage Reports Q4 and Full Year 2012 Financial Results

  RealPage Reports Q4 and Full Year 2012 Financial Results

  *2012 Q4 Non-GAAP revenue increases 20.2% to $85.7 million
  *2012 Q4 Non-GAAP on demand revenue increases 22.3% to $81.8 million
  *2012 Q4 adjusted EBITDA increases 33.5% to $20.8 million
  *2012 Q4 Non-GAAP earnings per share increases 40.0% to $0.14 per diluted
    share

Business Wire

CARROLLTON, Texas -- February 20, 2013

RealPage, Inc. (NASDAQ:RP), a leading provider of on-demand software and
software-enabled services to the rental housing industry, today announced
financial results for its fourth quarter and year ended December 31, 2012.

“2012 was a solid year of financial performance,” said Steve Winn, Chairman
and CEO of Realpage. “It was also a year of investment, which helped us start
to solidify our marketing solutions. 2013 will be a continuation of what we
have done since we built this company: expand new units and cross-sell
additional software and software-enabled services into our installed base.”

Fourth Quarter 2012 Financial Highlights

  *Non-GAAP total revenue was $85.7 million, an increase of 20.2%
    year-over-year;
  *Non-GAAP on demand revenue was $81.8 million, an increase of 22.3%
    year-over-year;
  *Adjusted EBITDA was $20.8 million, an increase of 33.5% year-over-year;
  *Non-GAAP net income was $10.2 million, or $0.14 per diluted share, a
    year-over-year increase of 42.7% and 40.0%, respectively; and
  *GAAP net income was $3.7 million, or $0.05 per diluted share, compared to
    GAAP net income of $0.2 million, or $0.00 per diluted share, in the prior
    year quarter.

Full Year 2012 Financial Highlights

  *Non-GAAP total revenue was $322.3 million, an increase of 24.6%
    year-over-year;
  *Non-GAAP on demand revenue was $306.5 million, an increase of 27.6%
    year-over-year;
  *Adjusted EBITDA was $73.3 million, an increase of 29.9% year-over-year;
  *Non-GAAP net income was $34.9 million, or $0.47 per diluted share, a
    year-over-year increase of 37.1% and 30.6%, respectively; and
  *GAAP net income was $5.2 million, or $0.07 per diluted share, compared to
    a GAAP net loss of $1.2 million, or $0.02 per diluted share, in the prior
    year quarter.

Financial Outlook

RealPage management expects to achieve the following results during its first
quarter ended March 31, 2013:

  *Non-GAAP total revenue is expected to be in the range of $88.0 million to
    $89.5 million;
  *Adjusted EBITDA is expected to be in the range of $20.0 million to $21.0
    million;
  *Non-GAAP net income is expected to be in the range of $9.6 million to
    $10.2 million, or $0.13 to $0.14 per diluted share;
  *Non-GAAP tax rate of approximately 40.0%; and
  *Weighted average shares outstanding of approximately 75.6 million.

RealPage management expects to achieve the following results during its
calendar year ended December 31, 2013:

  *Non-GAAP total revenue is expected to be in the range of $382.0 million to
    $390.0 million;
  *Adjusted EBITDA is expected to be in the range of $90.0 million to $93.0
    million;
  *Non-GAAP net income is expected to be in the range of $43.9 million to
    $45.7 million, or $0.57 to $0.60 per diluted share;
  *Non-GAAP tax rate of approximately 40.0%; and
  *Full year weighted average shares outstanding of approximately 76.7
    million.

Please note that the above statements are forward looking and that Non-GAAP
total revenue includes an adjustment for the effect of deferred revenue from
acquired companies that is required to be written down for GAAP purposes under
purchase accounting rules. In addition, the above statements also include the
impact of acquisitions and exclude any costs resulting from the Yardi
litigation (including settlement costs and related insurance litigation).
Actual results may differ materially. Please reference the information under
the caption "Non-GAAP Financial Measures" as part of this press release.

Conference Call and Webcast

The Company will host a conference call today at 5:00 p.m. EDT to discuss its
financial results. Participants are encouraged to listen to the presentation
via a live web broadcast at www.realpage.com on the Investor Relations
section. In addition, a live dial-in is available domestically at 866-743-9666
and internationally at 760-298-5103. A replay will be available at
855-859-2056 or 404-537-3406, passcode 10159496, until March 2, 2013.

About RealPage

Located in Carrollton, Texas, a suburb of Dallas, RealPage provides on demand
(also referred to as "Software-as-a-Service" or "SaaS") products and services
to apartment communities and single family rentals across the United States.
Its on demand product lines include OneSite® property management systems that
automate the leasing, renting, management, and accounting of conventional,
affordable, tax credit, student living, senior living and military housing
properties; LeaseStar™ multichannel managed marketing that enables owners to
originate, syndicate, manage and capture leads more effectively and at less
overall cost; YieldStar® asset optimization systems that enable owners and
managers to optimize rents to achieve the overall highest yield, or
combination of rent and occupancy, at each property; Velocity™ billing and
utility management services that increase collections and reduce
delinquencies; LeasingDesk® risk mitigation systems that are designed to
reduce a community's exposure to risk and liability; OpsTechnology® spend
management systems that help owners manage and control operating expenses; and
Compliance Depot™ vendor management and qualification services to assist a
community in managing its compliance vendor program. Supporting this family of
SaaS products is a suite of shared cloud services including electronic
payments, document management, decision support and learning. Through its
Propertyware subsidiary, RealPage also provides software and services to
single-family rentals and low density, centrally-managed multifamily housing.
For more information, call 1-87-REALPAGE or visit www.realpage.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking" statements relating to RealPage,
Inc.'s expected, possible or assumed future results of operations, growth,
expenditures, tax rates, outstanding shares and expansion of new units and
cross-selling of additional software and software-enabled services into
RealPage’s installed base. 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.
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. Factors that could
cause or contribute to such differences include, but are not limited to, the
following: (a) the possibility that general economic conditions or uncertainty
cause information technology spending, particularly in the rental housing
industry, to be reduced or purchasing decisions to be delayed; (b) an increase
in customer cancellations; (c) the inability to increase sales to existing
customers and to attract new customers; (d) RealPage, Inc.'s failure to
integrate acquired businesses and any future acquisitions successfully; (e)
the timing and success of new product introductions by RealPage, Inc. or its
competitors; (f) changes in RealPage, Inc.'s pricing policies or those of its
competitors; (g) litigation; (h) inability to complete the integration of our
LeaseStar products and deliver enhanced functionality on a timely basis; or
(i) the discovery of facts and circumstances currently not available to
management; and 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 Quarterly Report on Form 10-Q previously
filed with the SEC on November 9, 2012, its Registration Statement on Form
S-3ASR and related prospectus supplement previously filed with the SEC on
September 13, 2012. 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.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures. These measures differ
from GAAP in that they exclude amortization of intangible assets, stock-based
compensation expenses, any impact related to the Yardi litigation (including
settlement costs and related insurance litigation), acquisition-related
deferred revenue adjustments, and acquisition related expenses (including any
purchase accounting adjustments). Reconciliation tables comparing GAAP
financial measures to non-GAAP financial measures are included at the end of
this release.

We define Adjusted EBITDA as net (loss) income plus acquisition-related
deferred revenue adjustment, depreciation and asset impairment, amortization
of intangible assets, net interest expense, income tax expense (benefit),
stock-based compensation expense, any impact related to Yardi litigation
(including settlement costs and related insurance litigation), and
acquisition-related expense.

We believe that the use of Adjusted EBITDA is useful to investors and other
users of our financial statements in evaluating our operating performance
because it provides them with an additional tool to compare business
performance across companies and across periods. We believe that:

  *Adjusted EBITDA provides investors and other users of our financial
    information consistency and comparability with our past financial
    performance, facilitates period-to-period comparisons of operations and
    facilitates comparisons with our peer companies, many of which use similar
    non-GAAP financial measures to supplement their GAAP results; and
  *it is useful to exclude certain non-cash charges, such as depreciation and
    asset impairment, amortization of intangible assets and stock-based
    compensation and non-core operational charges, such as acquisition-related
    expense and any impact related to the Yardi litigation (including
    settlement costs and related insurance litigation), from Adjusted EBITDA
    because the amount of such expenses in any specific period may not
    directly correlate to the underlying performance of our business
    operations and these expenses can vary significantly between periods as a
    result of new acquisitions, full amortization of previously acquired
    tangible and intangible assets or the timing of new stock-based awards, as
    the case may be.

We use Adjusted EBITDA in conjunction with traditional GAAP operating
performance measures as part of our overall assessment of our performance, for
planning purposes, including the preparation of our annual operating budget,
to evaluate the effectiveness of our business strategies and to communicate
with our board of directors concerning our financial performance.

We do not place undue reliance on Adjusted EBITDA as our only measure of
operating performance. Adjusted EBITDA should not be considered as a
substitute for other measures of liquidity or financial performance reported
in accordance with GAAP. There are limitations to using non-GAAP financial
measures, including that other companies may calculate these measures
differently than we do, that they do not reflect our capital expenditures or
future requirements for capital expenditures and that they do not reflect
changes in, or cash requirements for, our working capital. We compensate for
the inherent limitations associated with using Adjusted EBITDA measures
through disclosure of these limitations, presentation of our financial
statements in accordance with GAAP and reconciliation of Adjusted EBITDA to
the most directly comparable GAAP measure, net (loss) income.


Condensed Consolidated Statements of Operations
For the Three and Twelve Months Ended December 31, 2012 and 2011
(unaudited, in thousands, except per share data)

                         Three Months Ended       Twelve Months Ended
                           December 31,              December 31,
                            2012      2011       2012       2011    
Revenue:
On demand                  $ 81,771     $ 66,695     $ 306,400     $ 239,436
On premise                   1,313        1,536        5,216         6,581
Professional and other      2,640      2,910      10,556      11,962  
Total revenue                85,724       71,141       322,172       257,979
Cost of revenue^(1)         33,204     28,924     128,562     108,155 
Gross profit                 52,520       42,217       193,610       149,824
Operating expense:
Product                      12,852       11,945       48,177        43,441
development^(1)
Sales and                    19,806       18,762       76,992        63,775
marketing^(1)
General and                 12,199     10,195     56,993      40,798  
administrative^(1)
Total operating             44,857     40,902     182,162     148,014 
expense
Operating income             7,663        1,315        11,448        1,810
(loss)
Interest expense and        (426   )    (669   )    (2,046  )    (3,251  )
other, net
Income (loss) before         7,237        646          9,402         (1,441  )
income taxes
Income tax expense          3,515      405        4,219       (210    )
(benefit)
Net income (loss)          $ 3,722     $ 241       $ 5,183      $ (1,231  )
                                                                   
Net income (loss) per
share
Basic                      $ 0.05       $ 0.00       $ 0.07        $ (0.02   )
Diluted                    $ 0.05       $ 0.00       $ 0.07        $ (0.02   )
Weighted average
shares used in
computing net income
(loss) per share
Basic                        73,460       69,632       71,838        68,480
Diluted                      74,960       72,287       74,002        68,480
                                                          
                                                                   
^(1)Includes
stock-based
compensation expense       Three Months Ended        Twelve Months Ended
as follows:                December 31,              December 31,


                            2012       2011       2012        2011    
Cost of revenue            $ 718        $ 586        $ 2,806       $ 1,655
Product development          1,211        1,251        4,391         4,594
Sales and marketing          368          3,224        4,790         12,017
General and                 1,564      1,327      6,191       4,352   
administrative
                           $ 3,861     $ 6,388     $ 18,178     $ 22,618  

                                                                             
Condensed Consolidated Balance Sheets
At December 31, 2012 and 2011
(unaudited, in thousands except share data)
                                                                             
                                                 December 31,  December 31,
                                                   2012           2011
Assets
Current assets:
Cash and cash equivalents                          $  33,804      $  51,273
Restricted cash                                       35,202         19,098
Accounts receivable, less allowance for
doubtful accounts of $1,087 and $979 at               51,937         43,883
December 31, 2012 and 2011, respectively
Deferred tax asset                                    -              272
Other current assets                                 6,541        10,232  
Total current assets                                  127,484        124,758
Property, equipment and software, net                 32,487         27,974
Goodwill                                              134,025        129,292
Identified intangible assets, net                     104,640        112,308
Deferred tax asset                                    -              2,539
Other assets                                         3,561        3,194   
Total assets                                       $  402,197    $  400,065 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable                                   $  9,805       $  12,218
Accrued expenses and other current liabilities        19,246         25,816
Current portion of deferred revenue                   60,633         57,325
Deferred tax liability                                2              -
Customer deposits held in restricted accounts        35,171       19,017  
Total current liabilities                             124,857        114,376
Deferred revenue                                      9,446          8,693
Deferred tax liability                                10          -
Revolving credit facility                             10,000         50,312
Other long-term liabilities                          2,813        3,803   
Total liabilities                                     147,126        177,184
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000,000
shares authorized and zero shares issued and          -              -
outstanding at December 31, 2012 and 2011,
respectively
Common stock, $0.001 par value per share:
125,000,000 shares authorized, 77,012,925 and
73,115,779 shares issued and 75,826,615 and           77             73
72,701,571 shares outstanding at December 31,
2012 and 2011, respectively
Additional paid-in capital                            347,203        316,964
Treasury stock, at cost: 1,186,310 and 414,208
shares at and December 31, 2012 and 2011,             (6,323  )      (3,138  )
respectively
Accumulated deficit                                   (85,778 )      (90,961 )
Accumulated other comprehensive loss                 (108    )     (57     )
Total stockholders' equity                           255,071      222,881 
Total liabilities and stockholders' equity         $  402,197    $  400,065 
                                                                             


Condensed Consolidated Statements of Cash Flows
For the Three and Twelve Months Ended December 31, 2012 and 2011
(unaudited, in thousands)

                      Three Months Ended         Twelve Months Ended
                        December 31,                December 31,
                         2012       2011        2012       2011     
Cash flows from
operating
activities:
Net income (loss)       $ 3,722       $ 241         $ 5,183       $ (1,231   )
Adjustments to
reconcile net
income (loss) to
net cash provided
by operating
activities:
Depreciation and          8,787         7,689         32,469        29,147
amortization
Deferred tax              2,698         1,954         2,624         524
expense (benefit)
Stock-based               3,861         6,388         18,178        22,618
compensation
Excess tax benefit        -             161           -             161
from stock options
Loss on disposal of       181           -             568           398
assets
Acquisition-related
contingent                (300    )     (512    )     (722    )     (410     )
consideration
Changes in assets
and liabilities,
net of assets
acquired and             (1,692  )    3,606       112         (1,981   )
liabilities assumed
in business
combinations:
Net cash provided
by operating              17,257        19,527        58,412        49,226
activities
Cash flows from
investing
activities:
Purchases of
property, equipment       (3,173  )     (5,365  )     (18,774 )     (16,147  )
and software, net
Acquisition of
businesses, net of        (2,693  )     (3,414  )     (22,184 )     (91,231  )
cash acquired
Intangible asset         (150    )    (1,850  )    (3,375  )    (1,850   )
additions
Net cash used by
investing                (6,016  )    (10,629 )    (44,333 )    (109,228 )
activities
Cash flows from
financing
activities:
Stock issuance
costs from public       $ -           $ -           $ -           $ (775     )
offerings
Payments on and
proceeds from debt,       (15,000 )     (7,728  )     (40,377 )     (16,252  )
net
Issuance of common        2,191         4,175         12,065        12,674
stock
Excess tax benefit        -             (161    )     -             (161     )
from stock options
Purchase of              (797    )    (1,397  )    (3,185  )    (2,180   )
treasury stock
Net cash used in
financing                (13,606 )    (5,111  )    (31,497 )    (6,694   )
activities
Net decrease in
cash and cash             (2,365  )     3,787         (17,418 )     (66,696  )
equivalents
Effect of exchange        (51     )     (5      )     (51     )     (41      )
rate on cash
Cash and cash
equivalents:
Beginning of period      36,220      47,491      51,273      118,010  
End of period           $ 33,804     $ 51,273     $ 33,804     $ 51,273   
                                                                             


Reconciliation of GAAP to Non-GAAP Measures
For the Three and Twelve Months Ended December 31, 2012 and 2011
(unaudited, in thousands)

                         Three Months Ended       Twelve Months Ended
                           December 31,              December 31,
                            2012      2011       2012       2011    
                                                                   
Revenue:                   $ 85,724     $ 71,141     $ 322,172     $ 257,979
Acquisition related
deferred revenue            3          186        89          706     
adjustment
Non-GAAP revenue           $ 85,727    $ 71,327    $ 322,261    $ 258,685 
                                                                   
                           Three Months Ended        Twelve Months Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Adjusted gross profit:
Gross profit               $ 52,520     $ 42,217     $ 193,610     $ 149,824
Acquisition related
deferred revenue             3            186          89            706
adjustment
Depreciation                 1,598        1,615        6,515         6,052
Amortization of              2,560        2,272        9,560         9,002
intangible assets
Stock-based                 718        586        2,806       1,655   
compensation expense
Adjusted gross profit      $ 57,399    $ 46,876    $ 212,580    $ 167,239 
                                                                   
Adjusted gross profit        67.0   %     65.7   %     66.0    %     64.6    %
margin
                                                                   
                           Three Months Ended        Twelve Months Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Adjusted EBITDA:
Net income (loss)          $ 3,722      $ 241        $ 5,183       $ (1,231  )
Acquisition related
deferred revenue             3            186          89            706
adjustment
Depreciation, asset
impairment and loss on       3,521        2,969        13,539        11,539
disposal of asset
Amortization of              5,447        4,720        19,498        18,006
intangible assets
Interest expense, net        426          669          2,160         2,868
Income tax expense           3,515        405          4,219         (210    )
(benefit)
Litigation-related           399          337          10,158        1,298
expense
Stock-based                  3,861        6,388        18,178        22,618
compensation expense
Acquisition related          (94    )     (334   )     (350    )     865
(income) expense
Stock registration          7          -          675         -       
costs
Adjusted EBITDA            $ 20,807    $ 15,581    $ 73,349     $ 56,459  
                                                                   
Adjusted EBITDA margin       24.3   %     21.8   %     22.8    %     21.8    %
                                                                   
                           Three Months Ended        Twelve Months Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Non-GAAP total product
development:
Product development        $ 12,852     $ 11,945     $ 48,177      $ 43,441
Less: Amortization of        -            -            -             -
intangible assets
Stock-based                 1,211      1,251      4,391       4,594   
compensation expense
Non-GAAP total product     $ 11,641    $ 10,694    $ 43,786     $ 38,847  
development:
                                                                   
Non-GAAP total product
development as % of          13.6   %     15.0   %     13.6    %     15.0    %
non-GAAP revenue:


Reconciliation of GAAP to Non-GAAP Measures
For the Three and Twelve Months Ended December 31, 2012 and 2011
(unaudited, in thousands)

                         Three Months Ended       Twelve Months Ended
                           December 31,              December 31,
                            2012      2011       2012       2011    
Non-GAAP total sales
and marketing:
Sales and marketing        $ 19,806     $ 18,762     $ 76,992      $ 63,775
Less: Amortization of        2,887        2,448        9,938         9,004
intangible assets
Stock-based                 368        3,224      4,790       12,017  
compensation expense
Non-GAAP total sales       $ 16,551    $ 13,090    $ 62,264     $ 42,754  
and marketing:
                                                                   
Non-GAAP total sales
and marketing as % of        19.3   %     18.4   %     19.3    %     16.5    %
non-GAAP revenue:
                                                                   
                           Three Months Ended        Twelve Months Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Non-GAAP total general
and administrative:
General and                $ 12,199     $ 10,195     $ 56,993      $ 40,798
administrative
Less: Acquisition
related (income)             (94    )     (334   )     (350    )     865
expense
Stock-based                  1,564        1,327        6,191         4,352
compensation expense
Litigation related           399          337          10,158        1,298
expense
Stock registration          7          -          675         -       
costs
Non-GAAP total general     $ 10,323    $ 8,865     $ 40,319     $ 34,283  
and administrative:
                                                                   
Non-GAAP total general
and administrative as        12.0   %     12.4   %     12.5    %     13.3    %
% of non-GAAP revenue:
                                                                   
                           Three Months Ended        Twelve Months Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Non-GAAP total
operating expense:
Operating expense          $ 44,857     $ 40,902     $ 182,162     $ 148,014
Less: Amortization of        2,887        2,448        9,938         9,004
intangible assets
Acquisition related          (94    )     (334   )     (350    )     865
(income) expense
Stock-based                  3,143        5,802        15,372        20,963
compensation expense
Litigation related           399          337          10,158        1,298
expense
Stock registration          7          -          675         -       
costs
Non-GAAP total             $ 38,515    $ 32,649    $ 146,369    $ 115,884 
operating expense:
                                                                   
Non-GAAP total
operating expense as %       44.9   %     45.8   %     45.4    %     44.8    %
of non-GAAP revenue:
                                                                   
                           Three Months Ended        Twelve Months Ended
                           December 31,              December 31,
                            2012       2011       2012        2011    
Non-GAAP operating
income (loss):
Operating income           $ 7,663      $ 1,315      $ 11,448      $ 1,810
(loss)
Acquisition related
deferred revenue             3            186          89            706
adjustment
Amortization of              5,447        4,720        19,498        18,006
intangible assets
Stock-based                  3,861        6,388        18,178        22,618
compensation expense
Acquisition related          (94    )     (334   )     (350    )     865
(income) expense
Litigation related           399          337          10,158        1,298
expense
Stock registration          7          -          675         -       
costs
Non-GAAP operating         $ 17,286    $ 12,612    $ 59,696     $ 45,303  
income
                                                                   
Non-GAAP operating           20.2   %     17.7   %     18.5    %     17.5    %
margin
                                                                   


Reconciliation of GAAP to Non-GAAP Measures
For the Three and Twelve Months Ended December 31, 2012 and 2011
(unaudited, in thousands, except per share data)

                       Three Months Ended         Twelve Months Ended
                         December 31,                December 31,
                          2012       2011        2012       2011    
Non-GAAP net income:
Net income (loss)        $ 3,722       $ 241         $ 5,183       $ (1,231  )
Acquisition related
deferred revenue           3             186           89            706
adjustment
Amortization of            5,447         4,720         19,498        18,006
intangible assets
Stock-based                3,861         6,388         18,178        22,618
compensation expense
Acquisition related        (94     )     (334    )     (350    )     865
(income) expense
Litigation related         399           337           10,158        1,298
expense
Loss on disposal of        181           -             568           398
assets
Stock registration        7           -           675         -       
costs
Subtotal of tax            9,804         11,297        48,816        43,891
deductible items
                                                                   
Tax impact of tax          (3,922  )     (4,519  )     (19,526 )     (17,556 )
deductible items^(1)
Tax expense
resulting from            620         147         458         366     
applying effective
tax rate^(2)
Non-GAAP net income      $ 10,224      $ 7,166       $ 34,931      $ 25,470
                                                                   
Non-GAAP net income      $ 0.14        $ 0.10        $ 0.47        $ 0.36
per share - diluted
                                                                   
Weighted average           74,960        72,287        74,002        68,480
shares - diluted
Weighted average
effect of dilutive        -           -           -           3,181   
securities
Non-GAAP weighted
average shares -           74,960        72,287        74,002        71,661
diluted
                                                          
^(1)Reflects the
removal of the tax
benefit associated
with the
amortization of
intangible assets,
stock-based
compensation
expense, Acquisition
related deferred
revenue adjustment
and Acquisition
related (income)
expense.
^(2)Represents
adjusting to a
normalized effective
tax rate of 40%.
                                                                   
                         Three Months Ended          Twelve Months Ended
                         December 31,                December 31,
                          2012        2011        2012        2011    
Annualized Non-GAAP
on demand revenue
per average on
demand unit:
On demand revenue        $ 81,771      $ 66,695      $ 306,400     $ 239,436
Acquisition related
deferred revenue          3           186         89          706     
adjustment
Non-GAAP on demand       $ 81,774      $ 66,881      $ 306,489     $ 240,142
revenue
                                                                   
Ending on demand           8,113         7,302         8,113         7,302
units
Average on demand          7,968         7,188         7,625         6,574
units
                                                                
Annualized Non-GAAP
on demand revenue        $ 41.05      $ 37.22      $ 40.20      $ 36.53   
per average on
demand unit
                                                                   
Annual customer
value of on demand       $ 333,039     $ 271,780
revenue^(1)
                                                          
^(1)This metric
represents
management's
estimate for the
current annual
run-rate value of on
demand customer
relationships. This
metric is calculated
by multiplying
ending on demand
units times
annualized Non-GAAP
on demand revenue
per average on
demand unit for the
periods presented.
                         

Contact:

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