RealPage, Inc. CAPEX jumped on 23.5% and Revenue surged on 17.2%
02/10/2021 • About RealPage, Inc. (
$RP) • By InTwits
RealPage, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- RealPage, Inc. is a fast growth stock: 2020 revenue growth was 17.2%, 5 year revenue CAGR was 19.8% at 2020 ROIC 3.9%
- RealPage, Inc. has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.4%. At the same time it's in pair with industry average of 3.7%
- CAPEX is quite volatile: $29m in 2020, $37m in 2019, $57m in 2018, $29m in 2017, $14m in 2016
- The company has potentially unprofitable business model: ROIC is 3.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
RealPage, Inc.'s Revenue surged on 17.2%. Revenue growth showed small slowdown in 20Q4 - it was 17.0% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from 21.7% to 19.9% in 2020. EBITDA Margin followed a growing trend at 2.2 pp per annum in the last 5 years.
Gross Margin showed almost no change in 2020. During 2016-2020 Gross Margin topped in 2017 at 58.2% and was declining since that time. SG&A as a % of Revenue showed almost no change in 2020. SG&A as a % of Revenue followed a declining trend at -1.8 pp per annum in 2016-2020.
Net Income margin decreased slightly on 1.9 pp from 5.9% to 4.0% in 2020.
Investments (CAPEX, working capital and M&A)
In 2020 the company had CAPEX/Revenue of 5.5%. CAPEX/Revenue decreased slightly on 1.9 pp from 7.4% in 2017 to 5.5% in 2020. For the last three years the average CAPEX/Revenue was 5.5%. During 2016-2020 CAPEX as a % of Revenue bottomed in 2019 at 5.2%.
Return on investment
The company operates at low ROIC (3.9%) and ROE (3.3%). ROIC decreased slightly on 0.73 pp from 4.6% to 3.9% in 2020. ROE decreased slightly on 1.9 pp from 5.2% to 3.3% in 2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.8x and Debt / EBITDA is 5.1x. Net Debt / EBITDA dropped on 2.1x from 4.9x to 2.8x in 2020. Debt increased on 3.3% while cash surged on 202%.
RealPage, Inc. has no short term refinancing risk: cash is higher than short term debt (162.4%).
Valuation and dividends
The company's trades at EV/EBITDA 37.2x and P/E 191.6x.
Management team
RealPage, Inc.'s CEO Stephen T Winn "Steve" has spent 22 years with the company. Brian Shelton is a the company's CFO. Brian Shelton has spent 4 months years at the company.
Financial and operational results
FY ended 12/31/2020
RealPage, Inc. ($RP) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 568 | 671 | 869 | 988 | 1,158 | 17.2% |
| Gross Profit | 326 | 391 | 505 | 562 | 657 | 16.9% |
| SG&A | 220 | 253 | 285 | 317 | 376 | 18.6% |
| EBITDA | 86 | 97 | 166 | 221 | 258 | 16.7% |
| EBIT | 31 | 30 | 66 | | | |
| Tax | 11 | 15 | -0 | | | |
| Net Income | 17 | 0 | 35 | 58 | 46 | -20.4% |
| Stock Based Compensation | 31 | 46 | 51 | | | |
Balance Sheet
|
|---|
| Cash | 105 | 69 | 228 | 197 | 595 | 201.7% |
| Accounts Receivable | 92 | 125 | 124 | | | |
| Accounts Payable | 21 | 27 | 25 | | | |
| Short Term Debt | 5 | 14 | 16 | 35 | 366 | 949.9% |
| Long Term Debt | 117 | 634 | 580 | 1,244 | 955 | -23.2% |
Cash flow
|
|---|
| Capex | 75 | 50 | 51 | 52 | 64 | 23.5% |
| Acquisitions | 71 | 650 | 279 | | | |
Ratios
|
|---|
| Revenue growth | 21.3% | 18.1% | 29.6% | 13.6% | 17.2% | |
| EBITDA growth | 151.1% | 12.9% | 71.1% | 33.1% | 16.7% | |
|
|---|
| Gross Margin | 57.4% | 58.2% | 58.1% | 56.9% | 56.7% | -0.1% |
| EBITDA Margin | 15.2% | 14.5% | 19.1% | 22.4% | 22.3% | -0.1% |
| EBIT Margin | 5.5% | 4.5% | 7.6% | | |
| SG&A, % of revenue | 38.8% | 37.8% | 32.8% | 32.1% | 32.5% | 0.4% |
| SBC, % of revenue | 5.4% | 6.8% | 5.8% | | |
| Net Income Margin | 2.9% | 0.1% | 4.0% | 5.9% | 4.0% | -1.9% |
| CAPEX, % of revenue | 13.2% | 7.4% | 5.9% | 5.2% | 5.5% | 0.3% |
|
|---|
| ROIC | 7.1% | 3.6% | 4.7% | 4.6% | 3.9% | -0.7% |
| ROE | 4.7% | 0.1% | 4.4% | 5.2% | 3.3% | -1.9% |
| Net Debt/EBITDA | 0.2x | 6.0x | 2.2x | 4.9x | 2.8x | -2.1x |
People
|
|---|
| Insider ownership | 2.5% | 2.5% | 2.5% | | | |
| Employees | 4,400 | 5,400 | 6,200 | | | |
| Revenue/Employee, th. $ | 129 | 124 | 140 | | | |
RealPage, Inc. ($RP) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 277 | 286 | 298 | 298 | | 18.1% | 17.1% | 16.8% | 17.0% |
| EBITDA | 54 | 64 | 72 | 68 | | 1.2% | 17.6% | 26.2% | 21.0% |
| Net Income | 6 | 11 | 16 | 13 | | -50.3% | -25.0% | 39.6% | -35.2% |
Balance Sheet
|
|---|
| Cash | 184 | 639 | 612 | 595 | | -27.1% | 144.1% | 126.6% | 201.7% |
| Short Term Debt | 39 | 354 | 362 | 366 | | -88.0% | 6.7% | 12.1% | 949.9% |
| Long Term Debt | 1,237 | 969 | 963 | 955 | | 217.7% | 149.1% | 134.0% | -23.2% |
Ratios
|
|---|
| Gross Margin | 55.7% | 56.1% | 57.8% | 57.2% | | -1.8% | -0.5% | 0.6% | 1.0% |
| EBITDA Margin | 19.5% | 22.6% | 24.3% | 22.7% | | -3.2% | 0.1% | 1.8% | 0.8% |
| Net Income Margin | 2.0% | 4.0% | 5.5% | 4.4% | | -2.8% | -2.2% | 0.9% | -3.5% |
Peers in Application Software
Below you can find RealPage, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 14.8% | 15.1% | 19.5% | 14.5% |
|---|
| RealPage, Inc. ($RP) | - | 18.1% | 29.6% | 13.6% | 17.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 64.2% | 64.6% | 66.0% | 68.4% | 70.6% |
|---|
| RealPage, Inc. ($RP) | 57.4% | 58.2% | 58.1% | 56.9% | 56.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -5.3% | -4.2% | -3.3% | 2.7% | 6.8% |
|---|
| RealPage, Inc. ($RP) | 15.2% | 14.5% | 19.1% | 22.4% | 22.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 2.9% | 2.3% | 2.4% | 2.9% | 2.5% |
|---|
| RealPage, Inc. ($RP) | 13.2% | 7.4% | 5.9% | 5.2% | 5.5% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.8% | -11.8% | -10.6% | -4.5% | -2.2% |
|---|
| RealPage, Inc. ($RP) | 7.1% | 3.6% | 4.7% | 4.6% | 3.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (53 companies) | -0.9x | -0.9x | -0.7x | 0.4x | 0.0x |
|---|
| RealPage, Inc. ($RP) | 0.2x | 6.0x | 2.2x | 4.9x | 2.8x |
