RealPage Inc at William Blair Growth Stock Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. I guess as you think about technology adoption in the rental environment and based upon what you're seeing on your platform recently, where do you think there could be -- product adoption could see a more permanent kind of structural boost even after this pandemic? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2020 / 3:40PM, RP - RealPage Inc at William Blair Growth Stock Conference

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. So one of the ways I think you've talked about helping at least owners improve the yield on assets is kind of through helping facilitate e-commerce transactions. I think you noted some strong engagement trends for your ActiveBuilding resident portal in the quarter. So can you talk through some of the benefits of this portal to property owners and residents and then how you monetize it?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. That's helpful. Can you also talk about some of the activity you're seeing within your payment solutions since the pandemic started? It seemed like usage has trended higher over the last few years, but I think most recently was in the mid-20s range out of the total units you have at RealPage. So it sounds like there's still a big opportunity there. Is there anything you need to do in that business to drive higher unit usage over the next few years?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. Maybe taking a step back, just in thinking about how kind of the current pandemic and the macroeconomic weakness from it has kind of influenced the sales process. Are property owners and managers willing to think about spending slightly more on technology to drive higher medium-term yields? Or are many kind of in a buckled down mode until there's more clarity or certainty on the economic outlook? And has that changed at all based on what you've seen over the last month or 2?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Makes sense. That's really helpful. So I think you might have alluded to this a little bit, but slower leasing velocity, I think, was also -- I think it was half the guidance reduction, which I think, if I remember correctly, was 3% to 5% for the full year. Half was kind of slower bookings, half was kind of leasing velocity. You gave some really good data on leasing velocity and leasing activity on your last earnings call. Have you seen -- and you started to note some stabilization I think awaiting. Have you seen that continued kind of stabilization and maybe improvement in leasing velocity as we think about May? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2020 / 3:40PM, RP - RealPage Inc at William Blair Growth Stock Conference

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. So with -- I think you guys had talked about, and the guidance still assumes, that you're going to continue to invest on the product and sales side this year kind of somewhat regardless of what the top line trends look like. So can you talk about the investments you're making on both the product side and the sales side this year?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. Wanted to ask a little bit about product integration and maybe stripping out Buildium as I'll get to that in a little bit. But you've done a lot of work over the last few years on the product integration side. So can you maybe provide an update on the progress RealPage has made there? And where there still might be work to do, and again, kind of excluding Buildium?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. So wanted to shift to Buildium, which is something you acquired late 2019. On the SMB side, I mean, I was just curious if you could talk some about the opportunity down there. You talked about it being a very underserved market. How do you think about the green space there, both in terms of the unit opportunity and units that maybe are using Excel and other things, property managers that are using very manual solutions to manage their properties? So the unit opportunity and then the revenue per unit opportunity as you think about the SMB side?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. Makes sense. And then just shifting over to Asset Optimization. You guys have really great data with 19 million units on the platform. Just curious how you think about expanding the depth and breadth of data that you're able to gather in the ecosystem and layer analytics on top of it, and maybe how your data gathering capabilities have evolved over the last few years. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 11, 2020 / 3:40PM, RP - RealPage Inc at William Blair Growth Stock Conference

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. That's really helpful. A couple of questions kind of come through on the portal. First is kind of the discussion around implementation issues. And it's kind of, did you get past the implementation issues operational? Or have you kind of just simply caught up in some way? Maybe talk about...

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. Another one here, sounds like you're committed to future M&A. Can you talk about financial discipline with respect to acquisitions? Do you have a targeted ROIC kind of hurdle rate?

Question: Stephen Hardy Sheldon - William Blair & Company L.L.C., Research Division - Analyst : Got it. Well, I think we are out of time here. Thank you. Thank you, Steve, thank you, Rhett, for being here. Always great to get an update from you guys, and we will touch base again soon. Thanks. Thanks everyone for joining.