RealPage Q2 Results Miss Estimates, Slashes 2014 Outlook

(RTTNews) - On-demand property management software provider RealPage, Inc. (RP) reported Monday a net loss for the second quarter compared to a profit last year, reflecting higher costs and operating expenses.

Both adjusted earnings per share and quarter revenues missed analysts' expectations. The company also provided earnings guidance for the third quarter, below Street view, and slashed forecast for the full-year 2014.

"Our revenue and profit results for the second quarter were below our expectations. Our revenue shortfall was primarily driven by less demand for our leasing and marketing solutions and lower than expected revenue from our renter's insurance solutions," Chairman and CEO Steve Winn said in a statement.

The Carrollton, Texas-based company reported a net loss of $6.29 million or $0.08 per share for the second quarter, compared to net income of $4.61 million or $0.06 per share in the year-ago quarter.

Excluding items, adjusted net income for the quarter was $4.63 million or $0.06 per share, compared to $10.42 million or $0.14 per share in the prior-year quarter.

On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter edged up 1 percent to $94.99 million from $94.45 million in the same quarter last year. Adjusted revenue for the quarter was $94.8 million, which missed seven Wall Street analysts' consensus estimate of $95.98 million.

On demand revenue for the quarter increased 1 percent from last year to $91.61 million, while on premise revenue declined to $1.01 million from $0.83 million last year. Professional and other revenue decreased to $2.56 million from $2.62 million a year ago.

Total operating expenses for the quarter increased to $60.79 million from $48.47 million in the year-ago quarter.

Looking ahead to the third quarter, RealPage expects adjusted earnings in a range of $0.08 to $0.09 per share on projected adjusted revenues between $101.0 million to $103.0 million. Analysts currently expect earnings of $0.10 per share for the quarter on revenues of $101.90 million.

For fiscal 2014, RealPage currently projects adjusted earnings in the range of $0.37 to $0.40 per share, on projected adjusted revenues between $400.0 million to $405.0 million. Street is currently looking for full-year 2014 earnings of $0.45 per share on annual revenues of $404.89 million.

Previously, the company projected adjusted earnings in the range of $0.65 to $0.69 per share and adjusted revenues between $440.0 million and $450.0 million.

"Our strategy will focus on creating incremental demand for all solutions through the addition of new features and functionality, pricing strategies, partnerships, continued investment in the sales force and our implementation infrastructure," Winn added. RP closed Monday's regular trading session at $15.92, down $0.02 or 0.13% on a volume of 0.93 million shares.