RealPage Shares Tumble As Q4 Results Miss View, Outlook Weak

(RTTNews) - Shares of RealPage, Inc. (RP) tumbled 22 percent in extended trades on Monday after the on-demand property management software provider's fourth-quarter results missed analysts' estimates and it provided financial guidance for the first quarter as well as fiscal 2014 below Street expectations.

RealPage's profit for the fourth quarter declined 41 percent from last year as higher revenues were more than offset by an increase in expenses. In a separate statement, the company said it has entered the global vacation rental market after it acquired Bookt LLC, a provider of the vacation rental booking engine InstaManager.

Steve Winn, Chairman and CEO of RealPage said, "While fourth quarter revenue performance was below our expectations, we are taking steps to re-accelerate our revenue growth for 2014 and beyond."

The Carrollton, Texas-based company's net income for the fourth quarter was $2.18 million or $0.03 per share, down from $3.72 million or $0.05 per share in the year-ago quarter.

Adjusted net income for the quarter was $12.39 million or $0.16 per share, compared to $10.22 million or $0.14 per share in the prior-year quarter. On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter grew 11 percent to $95.52 million from $85.72 million in the year-ago period. Adjusted revenue for the quarter was $96.44 million, compared to $85.73 million last year. Analysts had a consensus revenue estimate of $103.55 million.

On demand revenue for the quarter increased 13 percent from last year to $92.08 million, while on premise revenue declined 32 percent to $892 thousand. Professional and other revenue declined 4 percent to $2.55 million.

Total operating expenses for the quarter rose 19 percent from the year-ago period to $53.27 million.

For fiscal 2013, RealPage's net income rose to $20.69 million or $0.27 per share from $5.18 million or $0.07 per share in the prior year. Adjusted net income was $44.87 million or $0.59 per share, compared to $34.93 million or $0.47 per share last year.

Revenue for the year increased 17 percent to $377.02 million from $322.17 million in the previous year. Adjusted revenue for the year was $379.74 million, compared to $322.26 million last year.

Street expected the company to earn $0.60 per share for the year on revenues of $386.76 million.

Looking ahead to the first quarter, RealPage forecasts adjusted net income in a range of $0.15 to $0.16 per share and adjusted revenues of $101.0 million to $102.0 million. Analysts currently expect net income of $0.17 per share for the quarter on revenues of $107.10 million.

For fiscal 2014, RealPage forecasts adjusted net income in a range of $0.65 to $0.69 per share and adjusted revenues of $440.0 million to $450.0 million. Analysts currently expect net income of $0.76 per share for the year on revenues of $459.71 million.

In a separate statement, RealPage said it has entered the global vacation rental market after it acquired the assets of Bookt LLC, a provider of the vacation rental booking engine InstaManager. The Bookt team will remain at their headquarters in Hollywood, Florida.

InstaManager is a provider of cloud-based services for the lodging industry. The company offers marketing websites, online pricing and availability, online booking, automated reservations, payment processing and insurance sales. RealPage plans to enhance InstaManager's current features and deliver more value by adding additional capabilities, including screening, contact center and more robust accounting services.

Steve Winn said, "We believe there are approximately 6 million vacation rental units in the world - 2 million in North America, 2 million in Europe and much of the rest in rapidly growing emerging markets like Brazil and Southeast Asia. Based on InstaManager data, professionally managed vacation rentals typically lease up to 16 times per year compared to one lease for a long-term single family rental, thus increasing the potential revenue per unit (RPU) RealPage generates from its products and services offered to this industry."

RP closed Monday's regular trading session at $20.72, up $0.02 or 0.10 percent on a volume of 546,157 shares. However, in after-hours, the stock declined $4.57 or 22.06 percent to $16.15.