RealPage (RP) 1 Aug 202020 Q2 Earnings call transcript

Greetings and welcome to the RealPage Second Quarter 2020 Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [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. you. Thank

begin. may You

meaning Steve Good call welcome ended for me our today XXXX. operator. Executive and financial Tom Officer; June the results With Ernst, are call the conference Chief the forward-looking make in on our the Chief to our of afternoon you, Officer. Financial your Chairman to Chief and and within statements our In questions, our and Shelton, RealPage Treasurer; may XX, that response considered are remarks Winn, Thank second the Officer we laws. securities Brian Accounting quarter today federal and

cause are may of to We G. Forward-looking most GAAP the Regulation financial use results from materially forward-looking and management’s date on non-GAAP subject press to current reconciliations measures statements. of measure call discuss those in this also expectations could defined and are comparable the as measures by and as statements release. actual are or of risks to included these differ knowledge directly based today’s certain and financial that earnings uncertainties non-GAAP Definitions financial

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

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

had solutions both that Today, of I’ll is living XX% our strengths special solutions we impactful million, $XXX because see performing impact the more immensely and at home. in $XX adjusted guidance million living Second not quarter backdrop. growing COVID-XX feared perspective offered many exceptionally to also financial for that living surging total to strategic leasing on our and the I’ll good with demand performance was that platform virtual as was discuss virtual Numbers of macroeconomic quite our emphasis were nearly we a to to with industry revenue RealPage EBITDA and and bit better on last impact important there how than so working as have growing our review and become facilitate with relative expected, leasing the XX% by year. and of COVID-XX of also RealPage. residents compared

Finally, I’ll large the market, rental SMB progress market update of really on our that an provide penetrating housing segment we like. a the

has First, in and backdrop. in still much at June just solid the the levels. that apartment of industry over back activity number a in now In ago year to May through most plunged shape is as topped occupancy March The come executed Leasing XX% volumes leases for turn, locations. healthier in July whole. country

or leases same our late revenue such price since a protection early listing near U.S. seen the second new occupancy days looking executed as a in of plunged so or hovering in Those happening level give the much year-over-year Renewal quarter. after right Internet now market or much of Those software. by Following merely ago. zero QX half rents to Total year construction view X% this number a units, as leasing lease the also in That’s of be pricing XXX,XXX a in in same signed XXXX of what’s high the to year. changes in QX XXX,XXX the stabilizing. market finish but is and in the at most last came owners. the rents We rents back took rents appears management at reported numbers of sources. property recorded in at volume, is show more compared other hit services in the big management now the pricing rate accurate half ongoing to look priority early slated about to first tops for units. are Completions are and pattern can either seen tracked

is new to to XXXX, a to into halt. even are starts So continue coming market pour though the supply new in expected

of lots additions all that need to months. expect existing new will few that product economics attention getting this help top-tier the retention with come those demand get economists Scheduled next of will with clients through have that as relations anticipate volume new compete initial our online. projects completions the – We lots supply and lease-up. renter RealPage top Resident over

that the U.S. dipping basis XXX off through cold to apartment slow XXXX, We’re around another seasonally we’re expecting begin that XX%. drop early months. hit upwise, the again to winter leasing or that once comes occupancy forecasting so in trail rents points will Like we will period

some location important for better metros there’s keeping jobs, of premise Sun Anticipated Both stimulus should suburban levels level results our above than counterparts. gateway payments to Midwest variation in the aisle Belt in the underlying West These unemployment federal some are the the than the urban much. have of for close is prediction states. one core tend As along who on and a sides individual by performance professionally in the to unemployment have debating benefits Likewise, kept but those rent support markets Coast. of levels. properties offered An normal in be another. at the Northeast lost enhanced properties benefits unemployment their from managed their support how better continuation do expected always, to macroeconomic and

large the to may effect supplemental some decrease While we we A collections, would in can expect have trigger in which unemployment corresponding would be in rent absorbed. can stimulus reduction easily encourage Congress unemployment the negative the stimulus we economy. believe decrease that reduce in do on incentives, a ripple more absorb market steps a

leasing virtual going our are in function discuss has apartments I’ll to think COVID-XX we the and impacted future. how future. the for living vision Next,

our virtual example thousands to office. that agents more on apartments quarter, since for sophisticated others physically new we we most a interactive that been to investment almost has and in and phone. accelerate present responses chats to product and that with that were which last the in in having AI than enhanced learn can apartment eliminate One technology it we time market of that home leasing operators question, must be augmented the – bot from maintaining reduce stands distinguishes can bot believe on any handles order the case of a adopted today. its intelligence, on-site very but the the on which number from this leasing functionality AI enables announced level AI means spend agents in true agents in to more are incorporates responses, development We to also they leasing is the be adjust believe without We most lease effective efficiently chatbot fewer pre-COVID. that work investment our from so of work of to units

so Of meaning have our course, an given been guest agent agent prospect to the context over, delays. experience. this because and prospect card start is we that into in warm, frustrating a connect the come know in doesn’t does the can our building expanded they which a When transfer have no all we all center, are call, to the always background, can live contact be

XX% live price today. Our chat to data higher with operators shows than supplemented the warm dropping AI is chats chat the that alone. converts the a chatbot on a agent of chatbot like competitive transfer side compared for pay benefit is A market and live services ours significantly agents

We later this an in the expect testing year. voicebot are release also AI and to now

providing that with take much than from agents that Both leasing supplement center, voicebots market our home. the AI technology over. tightly RealPage is will our can this it be better contact to integrated to allow AI enables integrated set augmented already with so expect competing intelligence chatbot by tours on agents voicebots our working We and are convert and CRM, appointments leasing immediately for online are today.

can is leasing believe percentage in leasing than office. agents investing this improve to cost from Candidly, virtual and We to what above much going possible increase lower is are in-house get or be executed heavily we a leasing operators. conversion in-office at to the better experience and well

will payment no important, the would Earlier We processing a in office, work we new ClickPay quarter, in off leasing residents office, past, checks someone residents platforms lockbox and scanner. so User clients There from staff. move already had dependency leasing their more on drop and is was all the the RealPage. rent they XX our a showcasing and more at checks Virtual office. go for applied in the scan not office our the in virtual industry reduce needed at can checks feed through to processing be at there capabilities XX. We one off-site paper In announced the World so to these hit, When across was pandemic it need to and online. and team the paper adopted our eliminate in the on-site more September trend leasing Conference Real our tools many to

Earlier We’re for the payments we personnel. need can written vendor eliminate the office. paymentless checks a product truly only for vendor payment the processor today online in the that market be introduced the any also in platform to week, offer in to a new on-site

in the this We our they’re for generate becoming is work. that total While way governmental more time incremental literally residents industry’s The rent from millions simply more monetize restrictions of yield by struggle revenue virtual the owners of of high base new online can offering spending demanded living something because helped more residents in unemployment owners it in and to and of Most their to apartments more portals of want at we yield conveniences environment they less living September is of they resident some than this Monetization important of up to to conveniences rents virtual base our that same prevalent around is weeks. increases. Rent out RealPage, amenities. on leasing incremental we We of us, believe Again, we raise residents opportunity you Virtual industry the area by want living. controls and XX on few there. technology Residents significant place learn extremely World QX apparent matter unlock at makes believe Real rent. significant a will to to that rest expect that is greatest comes this about their an roll User already to are investment of attend virtual buy. the possible. our in a XX opportunity. enjoyed Usage Conference migrate that X% as invite to country, and amenities from was greater

the give to and an on achieving our strategy like SMB update we’re I’d success Finally, here.

recall, smaller association operators. you and this vacation includes category multifamily, single-family rental will As

tremendous note the RealPage SMB million of quarter of the XX% into X%, X open value that and we innovation. that industry I’m the we so During progress be are XXXX, parties and the currently integration can significantly the and pilot with platform. and category. we’re integrations the this rest perspective, SMB of call. a grew represents about This $XXX Breeze while the year. unit with by to to platforms, having expand respectively. revenue joining Buildium This excited success great is under solutions opportunity Buildium. overall It selling validated is proceeding Buildium believe later completed strategy integration our levels year-over-year, At highlighting to that progressing additional into actually installed to rollout are fact we’re only presence the testing we’re start with third our also API believe that important the SMB continue development was is also organic which drive are and overall us our to large is growing, integrate AppFolio, well. by traction but parts API you to expect not from which RealPage cross-selling efforts category of building in million nearly term. ARPU success long complement driven growth our architecture segment, we stifles services for in today’s open platform and the Buildium essentially ARPU represented makes RealPage, most units that year-over-year innovation and a phase Thank Other XX%, an we $XX. grew and over our are this This products nicely, and a ACV, closed third-party broader for September. should second SimpleBills very units in open Both believe represents compete our base. of making in rollout the Yardi to in Buildium, products June, applications technical with base additional in over of the of but From to in excited we desire

of out know, weeks. Tom next be you the As Ernst transitioning few will RealPage over

to that, So call. Tom. call our thank last I’ll this in want to expected We will the over well turn us above And earnings with be for business him revenue. his pivot $X for billion growth helping

and good everyone. Steve, Thanks, afternoon,

As Steve QX highlighted, QX. in high COVID-XX challenges RealPage the presented responded and at level to the a pandemic very by

skillfully. ship is and a long is RealPage rough revenue built the leadership COVID-XX navigating and the market pandemic powerful and and growth margin has charted innovation season. to reinvigorated excel ship believe for team it a the engine, before the organic RealPage Our on long-term course in We despite

and EBITDA raising $XX respectively, XX million range in margins. year confidence Second by full outlook which reflects high and and to an basis. quarter We included financial strong our performance on year-over-year, and the this guidance reflect RealPage and our by our of end respectively, million growth are midpoint million, Total higher organic $X of of basis exceeded $XX in reflects its the and strong we response XX% revenue growth growth points, the grew team. X% revenue positioning

ACV enable generated strong are XX EBITDA customer million experienced but year units cash, product were over to decelerated million the quarter of the compared start of more multifamily prior of strong. quarter May. accelerating. XX the $XX prior quarter. units growth And bookings X,XXX reflecting the year-over-year and changes with and represents leasing owners units. a to March of were growth This bookings lines, that solutions We sales year, year was deposits. grew almost from and of solid million. XX% a significantly X across Total both cash SMB the members production XX% all consisting June, nearly over of metrics. for ended consisting ahead at XXXX through million new We and virtual Total living. Adjusted of end million earnings units XX% were operating $XX in with ARPU and record managers performance we’re and Total last By flow in especially team RealPage sales end unit seeing XXX, XX% year nearly Our to the growth. to the performance X% compared growth net

here and was product modestly led performance period. a incremental down ramp EBITDA costs our COVID-XX able invest expense perspective, From Margin to were payments, focus expect driven Renters From included margins RealPage to compared current productivity. to on anticipated. We adjusted IMS Message, Insurance, revenue Utility we flat and profitability Modern continue to to were growth and growth management Management, climate platform. under a revenue perspective, by the family Buildium, continued the year than environment. was the Despite incremental adapting performance growth for related prior faster these costs, investments COVID-XX by to RealPage some

year experience to were last and COVID-XX-related restricted. gains and benefits over correction, – as from reduced from continue we addition, productivity such we In as our focus also medical simplification, employee and uplift reduced costs, on some travel received COVID the procedures many from

innovation implemented driven percentage while basis projects. Looking projects costs decreased year-over-year driven at marketing initiatives in early basis more still development sales a towards and size reach enable primarily decreases and more revenue us efficiency in that and revenue efficient XX prospects. in was maintenance percentage resources to the of XXX Product increase drivers SMB We marketing of and points cost to detail. XXXX opportunity as year-over-year to the continues and as allocate more in to force be decreased by of points order would our a primarily travel. spend our see optimizing institutional by Sales

client getting was are managers. a with from year-over-year reviews as pleased points webcasts, of our and by increased also solution results General as end costs the we to basis are of business long to revenue costs selling exit expert driven term. These webinars XXX administrative We primarily account increased over virtual G&A and year, XXXX strong move decline as percentage costs virtual and we scale XXXX. are efficiency leverage as the investments well expected infrastructure delivered into acquisition-related incremental by creating drive by the personnel and and

During cash in over-allotment of X.X raised each instruments from $XXX changes. million cash $XX $XX $XXX the point callable $XX.XX share. $XXX and cash conversion the currently May and in We is combined accounting we cash raise treatment changes has in simultaneously exercise relating impact the a capped equity, RealPage on to cash, used convertible the three proceeds. The million conversion initial million into of reset as for million share. transactions million. nearly the and greenshoe balance after call an in of with revolver, and to proceeds in which, now excluding call quarter, treatment additional at retained fees, sheet, the in price price generated per of to fully changes convertible RealPage restricted of is $XXX excluding net debt common remainder impact our an sits entered relating years $XXX million changes, capped operating concurrent offering accounting debt million the $XXX effective its $XXX to the million on to per proceeds, from restricted of

now ratio is leverage Our X.Xx.

As end rate we On to opportunities the believe we would is well Thus, as believe anticipated, RealPage to market based to towards range more is of operationally basis, this what our the is target X.X with look as for we that may run very results, execute X.X we leverage deploy capital. X.Xx. EBITDA that XQ growth on a a strategy low be allow optimal. ratio to a forward, our balance on positioned strong continue see we and sheet the

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

into see rent on in stimulus, our stimulus substantial range, the lower At we’ll – in that assumes assume August. signed the no pressure downward slower meaningful we low from collection In of resulting and addition, or work recovery unemployment the pandemic. meaningfully high law end end unemployment

to turning Now guidance.

million For the adjusted XX% outlook representing X% share to to organic year, total growth, to to non-GAAP $XXX margin $X.XX are million is Non-GAAP $XXX representing to million, our EBITDA to $X,XXX we XX% for be growth. to to $X,XXX EBITDA diluted an XX% expected million, earnings full is per increasing be to Adjusted expected revenue X% of including XX%. $X.XX.

is $XX simplification. quarter, Non-GAAP note, which XX%. great fierce is organic to XX% revenue this is call $XXX my million expected to represents personal third $X.XX per to Star to XX% a million, around customers. expect to commitment thank like of XX%, for your I’d which to earnings proud as non-GAAP to the of Adjusted the be diluted I’m experience million, we of earnings X% X% of with North publicly you proud your including $XX all represents growth EBITDA last supporting be year-over-year innovation $XXX margins For million our expected given $X.XX. On to to that and and working growth. of I’m energy And of very been. CFO to has of our RealPage, RealPagers share zeal

right let’s industry the also to for as like I’d is are to Operator, RealPage serve RealPage This ship our the you, into the open lead future. your the prepared our your team, call remarks. right thank to questions. been and support. CFO. It’s You pleasure our concludes RealPage shareholders, a for

comes Our [Operator KeyBanc from Jason with Celino Capital Markets. Please first state question your you. Thank question. Instructions]

okay? taking question. me Can hear my you for Thanks

Jason. Hi,

most kind with we targets, should some especially kind about we trajectory of to the XX% margins? think of what recognize great milestones opportunity about before kind back about are ahead, of that kind Buildium I of path of and we can the think SMB. the think if there’s that that Tom, long-term EBITDA a But of

significant the to an the believe we continue natural years, aggressively on opportunity, continue get on We higher couple productive and marketing, do the revenue of a to become to fund without change can revenue. levels. a sales that march more going product we to run think ratio sales. next in to which of scale by we’re want and certainly rate much order basis, just towards development opportunity is and reach in there’s growing to in cost higher and the clearly expense-to-revenue we Well, G&A target

Yes.

about rate a billion imply that us. long-term million talked think and would those something plans, $X.X a the $XXX we on as about order exit As to XX% XXXX of we’ve for target that, midterm EBITDA and target in margin target run EBITDA

delivering striving on. So margin is balanced we operating delivering for about that’s growth for think but future. a we delivering through growth and along us as Obviously, we’re that with more type and remain innovation, – about COVID for focused that the sure margin of and and making focused are a something expansion organic we on bit balance, on expansion XXXX approach is customers

maybe with property delayed with stimulus and might quick have in and of of on you projects trends, leasing be customers If especially Okay. Great. manager think we wanting some And follow-up. decision what little the some that? last budgeting activity they’ve second and or, budgets seen process, I is think any for you improvement that about bit but guess, then other the any that a turn the half, signs uncertainty previously to one do there in on

definitely us for second engage activate throughout deploying willingness duration with of in those We quarter new sign projects and the in technology. a and of our new continued saw projects improvement terms up customers’ to the

over encouraging trajectory quarter. an So it’s the

more in remarks, projects towards RealPage. think prepared market uncertainty of his we signs still new Steve about continues, how think in the with that momentum quarter highlighted readiness there’s second I the to as during but a do definitely the as quite encouraging bit were

Great. I you. color. appreciate Thank

you. Thank

next JPMorgan. state Sterling Please Auty question Our comes from question. with your

I wondered up on actually, first – of all, Onto tenure note. on a high a the business. Tom, Yes, congratulations thanks. finishing

that can give any those business based a the technology developed of license demand, In leasing And there highlight internally it? of is are sense what in you on or you us percentage all that represents the terms that of today? virtual technology kind of embedded that third-party solutions high is are in

wants is, other hours experience least a change do in-person. a versus a here better on prospect day XX we that visit parties. we internal it core AI The primarily virtually rely can to is engines And not at like a we the that but it that it’s from a obviously to development, And or Zoom to lot deliver Leasing from a works, if believe tour perspective. property underway. clients are our is virtual good they the big the optimal tours. that’s of consumer do of development vehemently that a thrust Right platform we now, experience and while can. that’s And using

So better benefits. we’re do leasing doing. enjoy the conversion, industry is is that’s what focused I One on the think second and will for labor. two just lower cost

We’re eliminate not going to the agents. leasing

In But more to don’t get much office repurposed to is They to be to they’ll fact, property. out one working to of more their and of probably become apartment. the come efficiently agents utilized in have manage than because virtual they’ll do fewer they’ll them, what’s happen going job. able their be leasing order there’ll be to actually leasing

portal And technology. capabilities, Sterling, capabilities, living several – fit could support the leasing our first in all and part that of virtual including your technologies question, here, payments, we I have portal leasing think that

– if it we So in significant of business represents minority quarter. of the that, in it think our does total, a about all

Maybe solution The through out, been Great. that able revenue center you contact follow-up. And has have taken that hit? COVID-XX? right. to how one offer you manage All any that

It’s because center helpful less, because lower. going also because more see so future. much We Certainly, actually are contact actually up the the chatbot staffing not contact profit in clients we’re AI is the we level. hold revenue cost to important less. go have Well, it’s will helpful down supplemental in had been we a efficient, But time more margins of a up. can contact believe centers probably AI AI center hard at would chat. has environment, the to the higher The everything handle we without COVID

it. Yes. that business that area. And around trended the zero know, recent overall, in And center the has our contact been, the leasing contact marketing business in bit pieces as and you quarters, has in growth, one of little lagged and Sterling, centers a of organic is larger

been has secular that So been a this for has not the driver been growth opposite. It’s something us.

drive So and this is that demographic something new against hopeful technology growth we’re can profit – that here long-term that and trend. anticipates

Perfect. Thank you.

you. Thank

question. comes RBC Hedberg your question Matt with from next Please state Our Markets. Capital

for for Matt Hedberg. It’s Dan Thanks Bergstrom our taking questions.

You any in environment month Wondering the the way prepared the through there the you to or even or to versus first think July if through any then answer question trends of there. on trends the July of in thoughts versus highlighted here. the remarks and past feel June quarter had Is July for Julys?

question, it’s has That’s a program of existing that know top stimulus an July rents. lower than going August before had our a on insightful level that we given exactly that We collect But rents happen, been is mind. Congress expires. decision will expectation don’t and make would the hoped unemployment one what’s to at probably it

Steve. add to I’ll that too,

levels pointed out. You can that the also go look, activity the Dan, NMHC continues to publish weekly stats of on some we

recent of health the that continuing them. reasonable through are July those share most levels data is with we to So show

good. at the slightly, Yes. in was because large part We but in so decline stimulus that I also, It rent didn’t think, much all down collections. see was was

Yes.

trends but it the something Okay. doesn’t July, because like actually, That’s why of showed kind survey seeing. last sound their you’re deteriorating question in I asked

the last kind mentioned you payments about So rent of quarter.

rent, versus You provided paying a percentage decline units XXX any perhaps? update basis last May, with July, us points in June, of for year. there April Is

levels deterioration the payments. the June. helpful, the a as leasing we continuation the to So last shared that where health activity. can activity be after quarter of we on There saw the of absolutely That’s data. shared such posted we And marginal deck, closed we too, in our That in shows some is that we their volume see Dan, investor of market a our see you data.

no, right it how data you’re talk closed rent basis point NMHC cycle you really July about too closes so in finished second of exactly definitely week that month. on to XXX really August. far it’s early showing out So because potential about But July deterioration July in cycle That’s know when yes the – out. is out the the how versus rent last

Tom. Thanks,

Stephens. John question. next question with Campbell from Our Please comes state your

Tom, congrats for best endeavors. of the and afternoon Hey, guys. in run On... luck future Good and successful

Thank you.

growth mean, guys absolutely. Resident I you Services, obviously, unpack to just good Yes, one the I bit. in really, really a little quarter. for On that for want

a high could If strength that as to tailwind of a drive that I a on with at relates expecting It COVID. that you guess, flipped maybe to know payments, it – helped then level may that guys were sounds headwind a was the And from a cross-sells, like Buildium. talk be lot actually be of particularly, us coming growth. I bit to

drove quarter. So maybe if what you the of in reversal kind that could talk to

Yes.

Buildium’s results product but do Buildium’s strong. makes for I more a So that to be you, buckets, our little bit momentum continues family and spread difficult across know it

going performing following not and the a weakness of well to their the growth. separately, RealPage trends out the than execute is we continued largely performance We’re on terms the that bit little COVID, there we but transactional less break to and due anticipated was is and expected, it specific to strong in Buildium business business

Property did to Marketing have mild the due the COVID-XX and effect COVID-XX product – in families You’re a net little in you right the shown performance, risk Leasing bit this can some that’s a of was Resident was in by due payments payments. highlighted net driven that growth bucket, environment. and property upside in family. the and to And in in actually see some there bucket our the that we had potential effect, Service primarily We negative upside – Management, product that the

really now. makes you’ve sense. a question market? far But Steve, then the couple SMB kind for lower Buildium And staying of had of the high-level How here. That Okay. to, you’ve surprising seen? down months a just maybe If market, viewing you the what’s kind end are you’ve could thing you of been across on maybe of challenging side, and encouraging then guess, most the thus it on run I or what flip thing the break most

total room Buildium much of it’s by we products space, And ACV. to still is SMB plan. have that now we in continue than it��s RealPage do X so at performing we’ll us, XX sell in We and provider I COVID, that pretty – space rates the $XXX of just underpenetrated. There’s mean, on right well bought in And technology market. units got We million million million far, lots that which other anticipate higher space. It’s units. it. the growth when largest in because services into it’s makes to

in So to area. there’s that to lot a expand of continue just opportunity units

Thank Okay. you. That’s helpful.

Pat next state your Walravens question. JMP Group. Please question comes from Our with

Great.

upfront. I’ll two So both out just put on questions.

First the of you seeing then are the your traditional all, matters? terms is part there any payers? of in update And of second market competitively in core be, one like on what would accounting-related Steve, the

news Officer, in that, one Brian because but on talk I’d Chief the like our front, of the some do take if we cash have Brian some also our to strengths about you good Shelton, Accounting – flow, would.

Sure.

bet. question. from Pat, your for Good you again. You to hear Thanks,

we the past front, the the over will XX-Q review when surrounding processes material of general accounting in and the And a we announced that significant months have want entire we weakness, that X since the remediated healthy IT security controls. IT completed the the to... successfully Do We filed made On weakness. improvements material anticipate we’ve you all both we’ve controls. the

Why of you in some cash Yes. flows? strength the don’t the address

Sure.

cash we flow collections really strong was the also, for that in But was strong quarter, performance very that led quarter. on primary cash in growth the One As operating the operating things. the driven was flow. had by that growth a to EBITDA we reported the two

with into team health Also, we assess identifying begin led involving team measures days cross-functional effect, put of we teams our begin our and the DSO receivables to we to of customers. in that enabled X As were together improvement taking developed seeing risks began of tools proactive a These year-over-year. our an and client quickly portfolios. that all to a collaborative managers account our quickly COVID discussion

XX were to down we days. So

by flow So nice very just a very collections. the really the quarter, EBITDA driven cash had operating growth and strong

Yes. that Pat. was his Thanks for team a those both huge question, again, driver, initiatives. Brian behind

asked So a Steve, big competition. for success us. it’s also about Pat

but We our we... don’t like competition,

I of was really regard that, price, getting the with right? you heard

more have is you guys, revenue base optimize no think and how our large price forward parking we about advantage areas. amenities. and owners We same I becoming from XXX-some-odd that in thrust all a living, certainly the and amenities change we move doing. in increase of to competitive spots the the of virtual management the – about think more yield without and and – just sales right there’s is a guest leasing they’re the see time do they’re Most in for having and suites do of environment. technology, can and harder which It’s competitive in rent, use advantage raising base which harder and a all pricing been don’t a longer optimizing start now rent. important those as competitive in to we time have of really It’s the cast We characters the

VC-backed living going strong this So competitive thinking attacking the we’ve virtual of got area and there leasing I smaller like. companies say about next generation and a to we there. really is apartment is think what a will lot good, of of look advantage

just else on is sheet wanted the capitalize, just prudent but were more we’re to innovation we ourselves. it everybody And not we internal what one innovation, just building reasons of the the at also So put on why acquiring money doing. in balance so well not to this and look market prepared is our own

that sort out? were And Great. big Property were was, had and wondering, I’m the south. up Steve, the was between for you ago where thing I partnership to Inc. this these their grabs – how of ask multiproduct grabs, Yardi gone deals. it saying remember were for I long if up used never just there and some period that has that there Solutions that whole don’t had clients been were of played be can one but you,

the was. They tell what the They has. us it Yes, settled settlement won’t lawsuit.

So out, they really I how cooperate don’t worked today. know but do it

each – care don’t success us. also they’re some I did but That think And – have is much other. by they So behind we way. opportunity for for the that,

you Okay, Thank fair. very much.

from state Our Lamers question. question with your William Josh Blair. Please next comes

Great. guys. Good afternoon. Thanks,

Another one Buildium. on

I the you integrating LeaseLabs is guys that process progressing in noted well. SimpleBills IMS. integration I And of You saw and Buildium think last were and

already So there say I’m more curious does for it what integrated, inning Buildium? that Or puts fair sales that you to become in concerted for underway? meaningful integrating effort? the then is legacy RealPage a is earmarked cross-selling solutions once fully And that you’ve

integrated Well, we haven’t everything.

work more be to there’s there. So done

the of salesmen. We expanded number have

quarter, the XXX in and the look end at increase big sales that up in SMB chunk first in A XXX. reps, I If is believe you of was the we’re to it of the space.

So we are definitely expanding reach market. in that

RealPage’s was bring Buildium Josh, And over a plan remember, – time our products path. to careful to over

are on But progressing launch. time. And services we absolutely plan together Buildium over will significant is the and of with put availability the RealPage it operating top so we announce we making of progress, at

Yes.

up quarter. was I really think too, in in unit we second up the revenue you were probably was was X%. – the ACV can can XX% increase interesting XX%. the see numbers. And Units it, per most up

Now that the than may but substantially not less deal, that $XX. a Buildium were of big sound at units came all like in

we and X% that. through So all able on made of to up increase cross-sell, that ARPU top of we’re

So there’s strategy working. clear that is evidence the

down urban the the I’m the we’ve urban declines you And market of part new curious if Okay. it or rent through if added component core, like then there’s and and how there assuming can mentioned, tools a talk here do function point larger market? people management wondering counter case, concessions? that you year-on-year to supply the multifamily expect? many what Just the YieldStar revenue the where that’s your just wondering with gotten all coming in have sounds hit you And if reading are complexes to

working the effectively. monitoring variables downturn between tested be. should urban suburban more is through more hundreds price people suburban carefully a distinction outperform optimal urban seeing be urban The optimizing interesting very drive in a that the literally suburban an managed little that apartments. they analyzing a XXXX, be pay surrounding we’ve density we’re rent in exactly sure the I XXXX in and enjoy We���re down tool revenue well. this managed that is the engine It location of management nonrevenue appears under the very a what amenities and the because the properties because than revenue market pressure the price question. it’s It’s and to think way it Well, should market. of down and – And it’s very that properties in all

there hit, really lot COVID As to do a those weren’t apartments. around

residents lot here, $XXX why have paying and anything or So of here north do or XX we we miles I just same more the said, versus month think more lower price. square and live essentially can’t south to a at live are a footage

is when sign pre-COVID, saw the come I urban So trend that’s when delivered. we from safe urban clear a migration back I will that’s what’s suburban revert on. back – going think do going to all that think to is was and

time. your for Thanks Okay.

comes with question Please next Tomasello KBW. state Our from Ryan your question.

the everyone. Tom, on on luck Clearly, best very And strong. quarter. your Hi, adventure. next Congrats of

looking on increase revised Just XQ’s midpoint, the at excluding the implies $X our million guidance, math, a based XXXX outperformance. it at about

in related a of in strength. isn’t line? bit So kind the benefit second second rest is I but guess on in follow than see in a a demand up that quarter the as better revenues? a are coming surge XQ realized revenue top timing point carrying forecast, transactional my why how over imply transactional making what year this guess this into to to of assumed comments question more assumptions the much to of related full before lot full guidance growth? revenues performance the strength your impact virtual of the to for And the we to would XXX about the in is, believe seem year? the that, I of I you year terms top start half basis just I headwind a from XXX prior then demand

lot a the Ryan. Thanks question, for Yes.

year. most scenarios as that of a trajectory guidance the stimulus of negative no for year, That range little renewed. ruling range include out while that continues without such was things performance scenarios. range fairly this to of thus more our Stimulus the end assumes we’re the course of upper being the negative the includes think renewed economic far of the some seeing I So

– plan the us, for a with markets, and view what in we front and plan activate And that as – prudently granted health RealPage. new uncertainty think now projects to take to to continued prudent readiness book here about do in those scenarios. willingness it’s and of that’s Continued so enabled us ramping

impact we the our at we’re assumptions for half as quarter XXX this point would in, growth included upper growth our for the year. So factor The assumptions guidance impact be. assumptions our prior year, of a looking about to the that last what versus on basis

a for thinking half So the XX% to XX% growth to of rate the upper XX% growth line. about XX% and we’re top

Got just it. on then I And shifting gears M&A. guess,

if in you’re any commentary your provided can changes what some some You expanding acquisition environment? around Modern a acquisitions Have see like types willing remarks, terms seeing. expect opportunities us more anything you of in wondering but a product more also you I and updated to tuck-in was in And needle-moving Or of types in potential like we Message? of a give is And color similar Buildium should pricing? deals, prepared sellers? seen this

Yes. just We reflection and from RealPage. that’s the the definitely changes a the pipeline, uncertain opportunity away environment see innovators in are dynamics of more that for

marketplace. to good with see to us, us most the the X the largest for that those market to So as the likely news while the makes set platform executing strongest that strong there’s product for up is to on – potential you’re reach the range the customers in obvious and available synergies, and the a point And the opportunities been a X smaller leader acquisition we’re and of of that pipeline. deals historically. likely innovators And home we’ve ones are year

likely I to of side, and So of continue the most mid but range think say on that execute about there see And as at we opportunities term. look you’re a the would those. to we’ll long is us full potential more smaller

the Thanks. on Congrats again quarter.

you. Thank

Thank you.

Turrin Wells comes with state Securities. Michael next question question. Please from Our your Fargo

Thanks, good afternoon.

help of could there software pass, in out recent that industry the spend expected? recently spend amount of for Anything low more this a that maybe to quicker unlock as that you’ve been levels to call relatively the bit suggest seen comes historically. appetite what’s about talked it uncertainty previously than could You’ve tech

systems will they residents upgrade deliver residents the have technology think realization them that can’t are and they the living, from And deliver to needs a that spending will to conveniences time to That disadvantage. more the investments properties, home. in of of competitive to place will their then working that you you that and will at be conveniences are institutional grade infrastructure at I the be home. lead come way see the owners, changed particularly of the at driving if work of more

of So still tech our is we’d an that this see estimate or – industry, expansion we that in spend our prediction hold.

Thank you.

comes question. Our next with your question BMO. Please from Keith state Bachman

on ask to about and Tom, the should this wishes kind any year? us color Buildium but direction, we give directional you could And units, or had growth that to be kind you. – growing, year? the through through – quarter wanted ACV ACV but that you how growth can best could ARPU particularly about new you. as the only as framework about us comments on of X% any color think thinking of we’re Thank I is for any strong, underpinning give the you seems to the the And growth you not it? How particularly rolling to be

question, Yes. Keith. Thanks the for

I that a is look the certainly with also SimpleBills strong the an our growth Buildium product the growth we comments Buildium the of a made So driver that’s remarks. QX, number other to within as that. at I did some contributor mirror acquisition for is in prepared healthy around, along us, families areas and ACV of a – functional highlighted

drive some attention those a that to online technology. to certainly living. As and move to pipeline readiness lot technologies payments portal Steve leasing we We full of look of our paid enable towards customers and shift to and virtual have a technologies forward, seen

to there in as largely marginal of here scenario is direction growth think or growth besides quarter momentum the year of a trend that that be either a the the of shift high well. full type end seeing in at that I and we’re shift. So our may terms low what outlook But the would going second match

Okay.

continued healthy So digits or maybe mid-single kind growth? of

You for growth forecast the rest I’m the sorry, growth of about rate? our the – talk year?

ARPU to that Or is just durable rate think? trying ARPU. understand, you Yes, I’m the growth of is a number? number, that mid-single-digit

was to – specific ACV guide So guidance don’t an basis. is We growth. generally on our revenue

yes, – growth organic yes. Our oh,

So a as points way In our this about growth, three think or you to the well, the be lower if for ACV COVID four environment, has you it about decompose help than might been point growth. accounted two of to growth the it’s a historically unit that.

expansion. an growth health So environment, depending the support ARPU on may up of COVID rest growth. has pick of that higher the The the and been

But acceleration whether the of I our as dependent the ARPU as unit also, an on we see So more think well. decompose on there’s or not. it’s outcome side drivers range expectation, we

highlighted an the SMB success, in expansion. seen Steve we’ve ARPU As

QX. was at Okay. run that’s leverage of I And you how, the Great. the Tom, at ratios particularly and even kind [Audio you’re what Yes, thinking. Dip] mentioned then, rate,

And consider just about just how seems the It are. you levels could just the you to down? plans are, about if so Do think just where did kind you they flow you elaborate your are think deals. you cash or any paying steady on that now? you would debt ratios of some that? more leave generation, about you leverage as want but maintaining Or color But what – thinking like on you’re where

in So environment. we’ve strengthened this the opportunistic be feel balance to we sheet that fully

bringing and of enabling acquired to innovators in – flexibility target market us Our the return financial our out in times, terms into be product to ratio is think, leverage optimal two of innovation while to four we for driving have business. the and into opportunistic

position it’s for us comfortable now. at reset a So of type

on where managing that sitting $XXX have And million like highlight about balance that we on we did sheet. we’re balance is. as the I how we that sheet, So think cash

the can revolver with on continuously interest continuous and rate. opportunities at, we sheet that we evaluations evaluating best costs the to given cash managed but keep way balance reset the are looking We’re of a fully Right now, sheet to in terms manage well keep on flexibility attractive that and to balance our maintain the is we’re that optimally flexibility. making how keep

it. Got

it for me. Thanks. that’s Okay,

your question Vruwink Our Baird. next comes Joe with question. from Please state

pretty unique new because in you situation of all some I’m major the and maybe Steve now it’s a vendors ask, wanted you’re to Tom, platforms, talking better kind just I about and they’re able to actually of wondering software results customer best industry luck competitor’s come industry is span that and just their Great. been are your results RealPage hearing platform right platform, out customers, how alternatives? been doing seeing the your have and kind a the breadth Hi, in active of actual of and of when platform about of what fairing the endeavors. the you you case a the the some on or appreciate versus than on they’re make your maybe

think and we monitoring their customers that that performance that business constantly are our we And through how what groups make now. our you are RealPage some and the platform I their doing customer where we well groups, case using are customers reviews call to aren’t. include can peer on peer some will compare

with course, have this uncertainty of stimulus forward. feel do, the to about respect good the of But the going we see So generally, that pretty I health industry. we’ll

shocked be it’s in mid very and So But checks a positive think we’ll now. I the they But at August, of are bit will hands the now, by month. first right don’t expect be get month, problem. right out hopefully of little unknown. a won’t I to stimulus renters, these the we going have because

very to is our how they’ve something in how our high think where the more and show quarter, revenue AI to faster And something outperforming we’re reviews they’re they’ve to I customers, into seen, technology management And CBRs whether really team deployed and set. them we’re over showing at customer that more comp in exactly actively Joe, and we’re time virtual of it’s getting deliver their these customer much shift delivery. business engaged And our sales able I even the a properties that’s adept the rate get think more it, ramping. screening to And that’s to this product, properties. something their get products at which help much lift effective

has The lot be more. have and as new a sales in it kind And strong. about going thinking think, in entering like seems And ramped productive are hires I yield rep environment new you’ll ground be organic up continued where and a still in accelerate growth XXXX, really is of to team a these Is no hiring I be running. hitting should thought if able if of XX% can the the a productive, given that actually thinking to improving maybe are that And XXXX, one squeeze I coming getting reps RealPage where of be the XX% have a you you what’s better together that these argument Or thoughts, going the right to be all to maybe it still the execute? rent maybe any number? growth? factors than bit you’ll to the

It’s sales the And about like for Thanks question, investing Yes. add growth. the did the XX definitely and highlighted, we Joe. and I force, in marketing organic driving and sales salespeople. obviously idea of

next clearly, and while that year. but waiting growth in it’s you to And support next a for to absolutely year, little we’re until the not We’ll that intent So productive is or early that’s to two, how the we year. project going to be happy a next them want with do rate purpose. quarter hope

we sales XX two-thirds on sales from more going meetings, in lead responded come we’re as have a reviews environment sales to the virtual those customer the this we virtual the organization all about sales to just really generation salespeople the early the salespeople in delivering answered, like try last business has selling are environment. what with perspective, those well question an where the and role and of delivery funnel in supercharge of part decompose sales really So to doing operationally

out drive to to us the year we in year. intend to I’ll out bookings. So that with the And did actually we the of strong close not this quarter second try next productivity help year, try expansion

That’s great. much. Thank very you

Thank you.

that now day. All a parties Ladies gentlemen, Have great disconnect. concludes and may today’s meeting.