RealPage Shares Plunge As It Trims Q2 Revenue View Below Estimates

(RTTNews) - Shares of RealPage, Inc. (RP) plunged around 18 percent in the extended trading on Thursday after the provider of on-demand software solutions for the rental housing industry trimmed its second-quarter revenue forecast, much below analysts' estimates.

For the second quarter ended June 30, the company now expects adjusted total revenue of $93.8 million to $94.8 million, compared to previous estimate of $106.0 million to $108.0 million.

On average, seven analysts polled by Thomson Reuters expect revenues of $107.19 million for the quarter. Analysts' estimates typically exclude special items.

For the quarter, the company also projects adjusted EBITDA, a key earnings metric, of $11.5 million to $12.5 million.

While announcing the first quarter results, the company had projected second quarter earnings of approximately $0.16 per share, in line with analysts' current estimates.

According to the firm, the primary factor that impacted second-quarter financial performance was lower than expected revenue from products and services related to leasing activity. These products include organic lead-generation tools, screening and the contact center. For the three months, these solutions represented approximately 30 percent of adjusted total revenue.

The company also took certain actions in the quarter that resulted in lower revenue per transaction, primarily in the contact center, while increasing market share.

Steve Winn, Chairman and CEO of RealPage, said, "We believe lower than expected revenue driven by weakness in leasing velocity and marketing products was primarily responsible for our revenue and profit miss. We intend to stay the course on our sales expansion investments and complete the rollout of the richest product development backlog in our history."

The company noted that during second-quarter conference call, it will provide additional details of action plan, progress with respect to new product introductions, sales force expansion and pricing actions taken to expand market share going forward.

RealPage shares closed Thursday's regular trading at $21.42, down $0.64 or 2.90 percent. In the after hours trading, shares plunged $3.82 or 17.83 percent, and traded at $17.60.