RealPage, Inc. (NASDAQ:RP) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 05:00 pm ET
Greetings and welcome to the RealPage Second Quarter 2020 Conference Call. [Operator Instructions] Please note that this conference is being recorded.
I will now turn the conference over to our host, Rhett Butler, Vice President of Investor Relations. Thank you. You may begin.
Thank you, operator. Good afternoon and welcome to the RealPage financial results conference call for the second quarter ended June 30, 2020. With me on the call today are Steve Winn, our Chairman and Chief Executive Officer; Tom Ernst, our Chief Financial Officer and Treasurer; and Brian Shelton, our Chief Accounting Officer.
In our remarks today and in our response to your questions, we may make statements that are considered forward-looking within the meaning of the federal securities laws. Forward-looking statements are based on management's current knowledge and expectations as of the date of this call and are subject to certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements.
We may also use or discuss non-GAAP financial measures as defined by Regulation G. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measure are included in today's earnings press release. For more information on these topics, please reference the sections titled Cautionary Statement regarding forward-looking statements and explanation of non-GAAP financial measures in today's earnings press release.
With that, I'll turn the call over to Steve.
Thanks, Rhett. Welcome, everyone, and thank you for joining us.
Second quarter financial performance was quite a bit better than expected, with total revenue growing 17% to $286 million and adjusted EBITDA also growing 17% to nearly $80 million, both compared to last year. Numbers were exceptionally good relative to guidance because the impact of COVID-19 was not as impactful as we had feared and there is surging demand for solutions that facilitate virtual leasing and living offered by RealPage.
Today, I'll discuss our perspective of the macroeconomic impact of COVID-19 on our industry and how we see RealPage performing in that backdrop. I'll also review the strengths of our strategic platform with special emphasis on our virtual leasing and living solutions that have become immensely more important with so many residents working and living at home. Finally, I'll provide an update on our progress penetrating the large SMB segment of the rental housing market, a market that we really like.
First, the apartment industry backdrop. Leasing activity that plunged in March through May has now come back to much healthier levels. The number of leases executed in June and July topped year ago volumes in most locations. In turn, occupancy is still in solid shape at just over 95% for the country as a whole. Following the same pattern seen in leasing volume, pricing took a big hit in late Q1 and early Q2 but now appears to be stabilizing. We can look at the rents recorded in signed new leases tracked in either our property management or revenue management software. Those numbers give a much more accurate