RealPage Reports Full Year and Q4 2013 Financial Results

  RealPage Reports Full Year and Q4 2013 Financial Results

  *2013 Non-GAAP revenue increases 17.8% to $379.7 million
  *2013 adjusted EBITDA increases 23.1% to $90.3 million
  *2013 cash flow from operations increases 18.5% to $69.2 million
  *2013 Non-GAAP earnings per share increases 25.5% to $0.59 per diluted
    share

Business Wire

CARROLLTON, Texas -- February 24, 2014

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, 2013.

“2013 was a solid year for RealPage,” said Steve Winn, Chairman and CEO of
RealPage. “Non-GAAP total revenue growth was 18% compared to last year and
profitability levels expanded 100 basis points. While fourth quarter revenue
performance was below our expectations, we are taking steps to re-accelerate
our revenue growth for 2014 and beyond.”

Fourth Quarter 2013 Financial Highlights

  *Non-GAAP total revenue was $96.4 million, an increase of 12.5%
    year-over-year, while GAAP total revenue was $95.5 million, an increase of
    11.4% year-over-year;
  *Non-GAAP on demand revenue was $93.0 million, an increase of 13.7%
    year-over-year, while GAAP on demand revenue was $92.1 million, an
    increase of 12.6% year-over-year;
  *Adjusted EBITDA was $24.8 million, an increase of 19.2% year-over-year;
  *Non-GAAP net income was $12.4 million, or $0.16 per diluted share, a
    year-over-year increase of 21.2% and 14.3%, respectively; and
  *GAAP net income was $2.2 million, or $0.03 per diluted share, compared to
    GAAP net income of $3.7 million, or $0.05 per diluted share, in the prior
    year quarter.

Full Year 2013 Financial Highlights

  *Non-GAAP total revenue was $379.7 million, an increase of 17.8%
    year-over-year, while GAAP total revenue was $377.0 million, an increase
    of 17.0% year-over-year;
  *Non-GAAP on demand revenue was $365.0 million, an increase of 19.1%
    year-over-year, while GAAP on demand revenue was $362.3 million, an
    increase of 18.2% year-over-year;
  *Adjusted EBITDA was $90.3 million, an increase of 23.1% year-over-year;
  *Non-GAAP net income was $44.9 million, or $0.59 per diluted share, a
    year-over-year increase of 28.5% and 25.5%, respectively; and
  *GAAP net income was $20.7 million, or $0.27 per diluted share, compared to
    GAAP net income of $5.2 million, or $0.07 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, 2014:

  *Non-GAAP total revenue is expected to be in the range of $101.0 million to
    $102.0 million;
  *Adjusted EBITDA is expected to be in the range of $24.0 million to $24.5
    million;
  *Non-GAAP net income is expected to be in the range of $11.8 million to
    $12.1 million, or $0.15 to $0.16 per diluted share;
  *Non-GAAP tax rate of approximately 40.0%; and
  *Weighted average shares outstanding of approximately 77.5 million.

RealPage management expects to achieve the following results during its
calendar year ended December 31, 2014:

  *Non-GAAP total revenue is expected to be in the range of $440.0 million to
    $450.0 million;
  *Adjusted EBITDA is expected to be in the range of $105.0 million to $110.0
    million;
  *Non-GAAP net income is expected to be in the range of $51.1 million to
    $54.1 million, or $0.65 to $0.69 per diluted share;
  *Non-GAAP tax rate of approximately 40.0%; and
  *Full year weighted average shares outstanding of approximately 78.2
    million.

Please note that the above statements are forward looking and that Non-GAAP
total revenue includes an adjustment for the effect of acquisition-related and
other deferred revenue. 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 well as reconciliation tables of
GAAP financial measures to non-GAAP financial measures as set forth in 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 54561034, until March 2, 2014.

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 Asset Optimization Solutions for driving
increased revenue and NOI, Enterprise Solutions to manage all aspects of
property management and accounting and Digital Marketing Solutions to improve
the quantity and quality of lead origination at lower advertising cost.
RealPage supports all asset classes with special adaptations of it system to
include convention, affordable, tax credit, student living, military housing
senior assisted living, commercial and HOA/Condos. RealPage also support
single family rentals, both long term rentals as well as short term vacation
rentals.

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, and outstanding shares. 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 and (i) 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
February 27, 2013 and Form 10-Q filed with the SEC on November 12, 2013. 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 include acquisition-related and other deferred revenue
and exclude amortization of intangible assets, stock-based compensation
expenses, any impact related to the Yardi litigation (including settlement
costs and related insurance litigation), and acquisition related expenses
(including any purchase accounting adjustments) and include income taxes at a
sustainable effective rate, which excludes the reversal of valuation
allowances due to expected or realization of deferred tax assets.
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 and
other 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 expenses.

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;
  *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
    expenses 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; and
  *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
    our business operations in the period of activity and associated expense.

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, 2013 and 2012
(unaudited, in thousands, except per share data)
                                                                          
                            Three Months Ended            Twelve Months Ended
                            December 31,                  December 31,
                            2013           2012           2013            2012
Revenue:
     On demand              $ 92,081       $ 81,771       $ 362,312       $ 306,400
     On premise               892            1,313          3,691           5,216
     Professional and        2,546        2,640        11,019        10,556  
     other
        Total revenue         95,519         85,724         377,022         322,172
Cost of revenue^(1)          37,506       33,204       148,321       128,562 
Gross profit                  58,013         52,520         228,701         193,610
Operating expense:
     Product                  13,641         12,852         50,638          48,177
     development^(1)
     Sales and                23,902         19,806         95,894          76,992
     marketing^(1)
     General and             15,730       12,199       60,610        56,993  
     administrative^(1)
        Total operating      53,273       44,857       207,142       182,162 
        expense
Operating income              4,740          7,663          21,559          11,448
Interest expense and         (156   )      (426   )      (1,077  )      (2,046  )
other income, net
Income before income          4,584          7,237          20,482          9,402
taxes
Income tax expense           2,406        3,515        (210    )      4,219   
Net income                  $ 2,178       $ 3,722       $ 20,692       $ 5,183   
                                                                          
Net income per share
        Basic               $ 0.03         $ 0.05         $ 0.28          $ 0.07
        Diluted             $ 0.03         $ 0.05         $ 0.27          $ 0.07
Weighted average shares
used in computing net
income per share
        Basic                 76,035         73,460         74,962          71,838
        Diluted               77,108         74,960         76,187          74,002
                                                            
                                                                          
     Includes
     stock-based
^(1) compensation           Three Months Ended            Twelve Months Ended
     expense as
     follows:
                           December 31,                  December 31,
                            2013           2012           2013            2012
        Cost of revenue     $ 900          $ 718            3,111         $ 2,806
        Product               1,665          1,211          4,788           4,391
        development
        Sales and             3,102          368            10,993          4,790
        marketing
        General and          2,988        1,564        10,805        6,191   
        administrative
                            $ 8,655       $ 3,861       $ 29,697       $ 18,178  

                                                           
Condensed Consolidated Balance Sheets
At December 31, 2013 and December 31, 2012
(unaudited, in thousands except share data)
                                                                  
                                                 December 31,     December 31,
                                                 2013           2012
Assets
Current assets:
  Cash and cash equivalents                      $  34,502        $  33,804
  Restricted cash                                   71,941           35,202
  Accounts receivable, less allowance for
  doubtful accounts of $914 and $1,087 at           66,635           51,937
  December 31, 2013 and December 31, 2012,
  respectively
  Deferred tax asset, net                           3,284            -
  Other current assets                             7,453        6,541   
           Total current assets                     183,815          127,484
Property, equipment and software, net               54,775           32,487
Goodwill                                            152,422          134,025
Identified intangible assets, net                   108,815          104,640
Other assets                                       3,386        3,561   
           Total assets                          $  503,213    $  402,197 
Liabilities and stockholders' equity
Current liabilities:
  Accounts payable                               $  11,978        $  9,805
  Accrued expenses and other current                23,122           19,246
  liabilities
  Current portion of deferred revenue               66,085           60,633
  Deferred tax liability, net                       -                2
  Customer deposits held in restricted             71,910       35,171  
  accounts
           Total current liabilities                173,095          124,857
Deferred revenue                                    5,671            9,446
Deferred tax liability, net                         1,379            10
Revolving credit facility                           -                10,000
Other long-term liabilities                        8,564        2,813   
           Total liabilities                        188,709          147,126
Stockholders' equity:
  Preferred stock, $0.001 par value,
  10,000,000 shares authorized and zero
  shares issued and outstanding at December         -                -
  31, 2013 and December 31, 2012,
  respectively
  Common stock, $0.001 par value per share:
  125,000,000 shares authorized, 80,511,791
  and 77,012,925 shares issued and                  81               77
  78,433,626 and 75,826,615 shares
  outstanding at December 31, 2013 and
  December 31, 2012, respectively
  Additional paid-in capital                        390,854          347,203
  Treasury stock, at cost: 2,078,165 and
  1,186,310 shares at and December 31, 2013         (11,183 )        (6,323  )
  and December 31, 2012, respectively
  Accumulated deficit                               (65,086 )        (85,778 )
  Accumulated other comprehensive loss             (162    )     (108    )
           Total stockholders' equity              314,504      255,071 
           Total liabilities and                 $  503,213    $  402,197 
           stockholders' equity

                                                                
                                                                            
Condensed Consolidated Statements of Cash Flows
For the Three and Twelve Months Ended December 31, 2013 and 2012
(unaudited, in thousands)
                                                                            
                            Three Months Ended              Twelve Months Ended
                            December 31,                    December 31,
                            2013          2012            2013          2012
Cash flows from
operating activities:
  Net income                $ 2,178         $ 3,722         $ 20,692        $ 5,183
  Adjustments to
  reconcile net income
  (loss) to net cash
  provided by operating
  activities:
    Depreciation and          8,922           8,787           31,745          32,469
    amortization
    Deferred tax              2,370           2,698           (2,503  )       2,624
    expense (benefit)
    Stock-based               8,655           3,861           29,697          18,178
    compensation
    Loss on disposal of       4               181             314             568
    assets
    Acquisition-related
    contingent                (16     )       (300    )       1,284           (722    )
    consideration
    Changes in assets
    and liabilities,
    net of assets
    acquired and             (4,513  )    (1,692  )      (12,020 )    112     
    liabilities assumed
    in business
    combinations:
                                                                     
         Net cash
         provided by         17,600      17,257        69,209      58,412  
         operating
         activities
Cash flows from
investing activities:
  Purchases of
  property, equipment         (10,762 )       (3,173  )       (32,952 )       (18,774 )
  and software, net
  Acquisition of
  businesses, net of          (17,887 )       (2,693  )       (28,229 )       (10,627 )
  cash acquired
  Intangible asset           (327    )    (150    )      (927    )    (3,375  )
  additions
         Net cash used
         by investing        (28,976 )    (6,016  )      (62,108 )    (32,776 )
         activities
Cash flows from
financing activities:
  Payments on and
  proceeds from debt,         (137    )       (15,000 )       (10,548 )       (40,377 )
  net
  Payments of deferred
  acquisition-related         (4      )       -               (1,549  )       (11,557 )
  consideration
  Issuance of common          3,754           2,191           10,608          12,065
  stock
  Purchase of treasury       (1,697  )    (797    )      (4,860  )    (3,185  )
  stock
         Net cash
         provided by
         (used in)           1,916       (13,606 )      (6,349  )    (43,054 )
         financing
         activities
         Net increase
         (decrease) in        (9,460  )       (2,365  )       752             (17,418 )
         cash and cash
         equivalents
         Effect of
         exchange rate        (18     )       (51     )       (54     )       (51     )
         on cash
Cash and cash
equivalents:
  Beginning of period        43,980      36,220        33,804      51,273  
  End of period             $ 34,502     $ 33,804     $ 34,502     $ 33,804  

                                                             
                                                                      
Reconciliation of GAAP to Non-GAAP Measures
For the Three and Twelve Months Ended December 31, 2013 and 2012
(unaudited, in thousands)
                                                                      
                        Three Months Ended            Twelve Months Ended
                        December 31,                  December 31,
                        2013           2012           2013            2012
Non-GAAP revenue:
Revenue (GAAP)          $ 95,519       $ 85,724       $ 377,022       $ 322,172
Acquisition-related
and other deferred       922          3            2,717         89      
revenue
Non-GAAP revenue        $ 96,441      $ 85,727      $ 379,739      $ 322,261 
                                                                      
                        Three Months Ended            Twelve Months Ended
                        December 31,                  December 31,
                        2013           2012           2013            2012
Adjusted gross
profit:
Gross profit (GAAP)     $ 58,013       $ 52,520       $ 228,701       $ 193,610
Acquisition-related
and other deferred        922            3              2,717           89
revenue
Depreciation              1,800          1,598          6,567           6,515
Amortization of           2,062          2,560          7,713           9,560
intangible assets
Stock-based
compensation             900          718          3,111         2,806   
expense
Adjusted gross          $ 63,697      $ 57,399      $ 248,809      $ 212,580 
profit
                                                                      
Adjusted gross            66.0   %       67.0   %       65.5    %       66.0    %
profit margin
                                                                      
                        Three Months Ended            Twelve Months Ended
                        December 31,                  December 31,
                        2013           2012           2013            2012
Adjusted EBITDA:
Net income (GAAP)       $ 2,178        $ 3,722        $ 20,692        $ 5,183
Acquisition-related
and other deferred        922            3              2,717           89
revenue
Depreciation, asset
impairment and loss       3,925          3,521          14,411          13,539
on disposal of
asset
Amortization of           5,001          5,447          17,648          19,498
intangible assets
Interest expense,         228            426            1,427           2,160
net
Income tax expense        2,406          3,515          (210    )       4,219
(benefit)
Litigation-related        330            399            661             10,158
expense
Stock-based
compensation              8,655          3,861          29,697          18,178
expense
Acquisition related       1,156          (94    )       3,269           (350    )
expense
Stock registration       -            7            -             675     
costs
Adjusted EBITDA         $ 24,801      $ 20,807      $ 90,312       $ 73,349  
                                                                      
Adjusted EBITDA           25.7   %       24.3   %       23.8    %       22.8    %
margin
                                                                      
                        Three Months Ended            Twelve Months Ended
                        December 31,                  December 31,
                        2013           2012           2013            2012
Non-GAAP total
product
development:
Product development     $ 13,641       $ 12,852       $ 50,638        $ 48,177
(GAAP)
Less: Amortization
of intangible             2              -              3               -
assets
Stock-based
compensation             1,665        1,211        4,788         4,391   
expense
Non-GAAP total
product                 $ 11,974      $ 11,641      $ 45,847       $ 43,786  
development:
                                                                      
Non-GAAP total
product development       12.4   %       13.6   %       12.1    %       13.6    %
as % of non-GAAP
revenue:

                                                               
Reconciliation of GAAP to Non-GAAP Measures
For the Three and Twelve Months Ended December 31, 2013 and 2012
(unaudited, in thousands)
                                                                          
                            Three Months Ended            Twelve Months Ended
                            December 31,                  December 31,
                            2013           2012           2013            2012
Non-GAAP total sales
and marketing:
  Sales and marketing       $ 23,902       $ 19,806       $ 95,894        $ 76,992
  (GAAP)
    Less: Amortization
    of intangible             2,939          2,887          9,935           9,938
    assets
    Stock-based
    compensation             3,102        368          10,993        4,790   
    expense
  Non-GAAP total sales      $ 17,861      $ 16,551      $ 74,966       $ 62,264  
  and marketing:
                                                                          
  Non-GAAP total sales
  and marketing as % of       18.5   %       19.3   %       19.7    %       19.3    %
  non-GAAP revenue:
                                                                          
                            Three Months Ended            Twelve Months Ended
                            December 31,                  December 31,
                            2013           2012           2013            2012
Non-GAAP total general
and administrative:
  General and               $ 15,730       $ 12,199       $ 60,610        $ 56,993
  administrative (GAAP)
    Less: Acquisition         1,156          (94    )       3,269           (350    )
    related expense
    Stock-based
    compensation              2,988          1,564          10,805          6,191
    expense
    Litigation related        330            399            661             10,158
    expense
    Stock registration       -            7            -             675     
    costs
  Non-GAAP total
  general and               $ 11,256      $ 10,323      $ 45,875       $ 40,319  
  administrative:
                                                                          
  Non-GAAP total
  general and                 11.7   %       12.0   %       12.1    %       12.5    %
  administrative as %
  of non-GAAP revenue:
                                                                          
                            Three Months Ended            Twelve Months Ended
                            December 31,                  December 31,
                            2013           2012           2013            2012
Non-GAAP total
operating expense:
  Operating expense         $ 53,273       $ 44,857       $ 207,142       $ 182,162
  (GAAP)
    Less: Amortization
    of intangible             2,939          2,887          9,935           9,938
    assets
    Acquisition related       1,156          (94    )       3,269           (350    )
    expense
    Stock-based
    compensation              7,755          3,143          26,586          15,372
    expense
    Litigation related        330            399            661             10,158
    expense
    Stock registration       -            7            -             675     
    costs
  Non-GAAP total            $ 41,093      $ 38,515      $ 166,691      $ 146,369 
  operating expense:
                                                                          
  Non-GAAP total
  operating expense as        42.6   %       44.9   %       43.9    %       45.4    %
  % of non-GAAP
  revenue:
                                                                          
                            Three Months Ended            Twelve Months Ended
                            December 31,                  December 31,
                            2013           2012           2013            2012
Non-GAAP operating
income:
  Operating income          $ 4,740        $ 7,663        $ 21,559        $ 11,448
  (GAAP)
    Acquisition-related
    and other deferred        922            3              2,717           89
    revenue
    Amortization of           5,001          5,447          17,648          19,498
    intangible assets
    Stock-based
    compensation              8,655          3,861          29,697          18,178
    expense
    Acquisition related       1,156          (94    )       3,269           (350    )
    expense
    Litigation related        330            399            661             10,158
    expense
    Stock registration       -            7            -             675     
    costs
  Non-GAAP operating        $ 20,804      $ 17,286      $ 75,551       $ 59,696  
  income
                                                                          
  Non-GAAP operating          21.6   %       20.2   %       19.9    %       18.5    %
  margin

                                                                      
                                                                               
Reconciliation of GAAP to Non-GAAP Measures
For the Three and Twelve Months Ended December 31, 2013 and 2012
(unaudited, in thousands, except per share data)
      
                               Three Months Ended              Twelve Months Ended
                               December 31,                    December 31,
                               2013            2012            2013            2012
Non-GAAP net income:
     Net income (GAAP)         $ 2,178         $ 3,722         $ 20,692        $ 5,183
       Acquisition-related
       and other deferred        922             3               2,717           89
       revenue
       Amortization of           5,001           5,447           17,648          19,498
       intangible assets
       Stock-based
       compensation              8,655           3,861           29,697          18,178
       expense
       Acquisition related       1,156           (94     )       3,269           (350    )
       expense
       Litigation related        330             399             661             10,158
       expense
       Loss on disposal of       4               181             314             568
       assets
       Stock registration       -             7             -             675     
       costs
           Subtotal of tax
           deductible            16,068          9,804           54,306          48,816
           items
                                                                               
       Tax impact of tax
       deductible                (6,427  )       (3,922  )       (21,722 )       (19,526 )
       items^(1)
       Tax expense
       resulting from           572           620           (8,403  )      458     
       applying effective
       tax rate^(2)
     Non-GAAP net income       $ 12,391        $ 10,224        $ 44,873        $ 34,931
                                                                               
     Non-GAAP net income       $ 0.16          $ 0.14          $ 0.59          $ 0.47
     per share - diluted
                                                                               
     Weighted average            77,108          74,960          76,187          74,002
     shares - diluted
       Weighted average
       effect of dilutive       -             -             -             -       
       securities
     Non-GAAP weighted
     average shares -            77,108          74,960          76,187          74,002
     diluted

     Reflects the removal of the tax benefit associated with the amortization of
^(1) intangible assets, stock-based compensation expense, Acquisition related deferred
     revenue adjustment and Acquisition related expense.
^(2) Represents adjusting to a normalized effective tax rate of 40%.
                                                                               
                               Three Months Ended              Twelve Months Ended
                               December 31,                    December 31,
                               2013            2012            2013            2012
Annualized Non-GAAP on
demand revenue per average
on demand unit:
     On demand revenue         $ 92,081        $ 81,771        $ 362,312       $ 306,400
     (GAAP)
       Acquisition-related
       and other deferred       922           3             2,717         89      
       revenue
     Non-GAAP on demand        $ 93,003        $ 81,774        $ 365,029       $ 306,489
     revenue
                                                                               
     Ending on demand            9,022           8,113           9,022           8,113
     units
     Average on demand           8,876           7,968           8,615           7,625
     units
                                                                            
     Annualized Non-GAAP
     on demand revenue per     $ 41.91        $ 41.05        $ 56.50        $ 40.20   
     average on demand
     unit
                                                                               
     Annual customer value
     of on demand              $ 378,131       $ 333,039
     revenue^(1)
                                                                
     This metric represents management's estimate for the current annual run-rate value of
^(1) 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.
Rhett Butler, 972-820-3773
rhett.butler@realpage.com
 
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