RealPage, Inc. (NASDAQ:RP) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 05:00 pm ET


RealPage, Inc. (NASDAQ:RP) Q3 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to the RealPage Third Quarter 2019 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Rhett Butler, Vice President, Investor Relations. Please go ahead, sir.

Rhett Butler

Good afternoon, and welcome to the RealPage Financial Results Conference Call for the Third Quarter ended September 30, 2019. With me on the call today are Steve Winn, our Chairman and Chief Executive Officer; and Tom Ernst, our Chief Financial Officer and Treasurer. In our remarks today, we will include statements that are considered forward-looking within the meaning of federal security laws. In addition, management may make additional forward-looking statements in response to your questions. Forward-looking statements are based on management's current knowledge and expectations as of today, November 6, 2019, and are subject to certain risks and uncertainties that may cause actual results to differ materially from the forward-looking statements. A detailed discussion of such risks and uncertainties is contained in our annual report on Form 10-K previously filed with the SEC on February 27, 2019, and as amended on November 5, 2019, and our quarterly report on Form 10-Q previously filed with the SEC on August 9, 2019, and as amended on November 5, 2019 as well as our earnings release and materials distributed today. RealPage undertakes no obligation to update any forward-looking statements, except as required by law.

Finally, please note that on today's call, we may use or discuss non-GAAP financial measures as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure are included in today's earnings press release. In addition, please reference the explanation of non-GAAP financial measures section of today's earnings press release for more information.

With that, I'll hand the call over to Steve.

Stephen Winn

Thanks, Rhett. Welcome, everyone, and thank you for joining us. Today, we announced that we have entered into an agreement to acquire Buildium, one of the largest and most successful property management Software as a Service platforms, selling into the SMB rental housing market. This is the largest acquisition in our history intended to help us accelerate organic revenue growth in the large underpenetrated SMB market. I'll discuss the significance of this acquisition, review third quarter results and provide an update on innovations and initiatives to make RealPage an easier company to do business with in the call.

During the third quarter, total revenue was $255 million, reflecting growth of 13% compared to the prior year. Adjusted EBITDA grew nearly 22% to $72 million. This was a strong quarter for RealPage, and I'm pleased that we exceeded the high end of our revenue guidance coupled with strong cash flow that will support future growth and M&A activity. We announced today an agreement to acquire Buildium subject to Hart-Scott-Rodino approval and other standard closing conditions. Buildium is the most innovative