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RealPage Idea Proposal (RP)

RealPage Idea Proposal (RP)

Can RealPage maintain its growth and profit trend through 2017 as the multifamily market softens in some geographic areas?

Report Available: February 9, 2017


Blueshift’s initial research shows a positive growth and profit trajectory for RP, a leading property management Software as a service provider. RP’s goal of $1 billion in revenue and 30% adjusted EBITDA margin by 2020 will require an annual growth rate of at least 15% per year. Possible headwinds include a slowing in rental rates in some markets and increased competition.



  1. RP reported a strong Q3 with EPS and revenue ahead of expectations. Revenue was up 22% year to year and EBITDA margins rose 36%, both well ahead of the 15% growth rate needed to achieve the 2020 goal of $1 billion in revenue and 30% adjusted margins.
  2. Market conditions are prime for RP’s continued growth as a recent study indicated that the real estate IT market is expected to grow from $5.03 billion in 2016 to $8.91 billion by 2021, a 12.1% CAGR during the forecasted period. Asset and property management solutions and enterprise applications to manage projects will be in high demand. The only drawback is the high price tag associated with the technological implementation that could challenge the rate of growth for this market.
  3. To meet demand and hasten adoption of RP’s Asset & Investment Management (AIM) software the company has trained and certified five consulting firms including Cornerstone Solutions, FiTech Consulting, Lionpoint Group, NOI Strategies, and RealFoundations to assist with product implementation. RP took this step because demand had outstripped the company’s ability to meet customers’ needs for implementation support. The AIM’s Portfolio Asset Management component is designed to support all real estate asset classes, including commercial, hospitality, multifamily, single family, senior living, and student housing.
  4. Software Advice, an online resource for software buyers, lists 69 different property management products, confirming a highly competitive market. RP’s Propertyware has a 3.5 star rating out of 5 with a 61% recommended rating. These ratings are some of the lowest listed.
  5. Blueshift’s July 27, 2016, report found that for RP to grow, it would have to update its products to include mobile apps, focus its sales efforts on the market’s growing investment management segment, and allow for easy integration of third-party software solutions. It also must deliver on promised new products. Customer satisfaction levels were tepid at best. Sources expressed frustration with the age of RP’s platform, its sewn-together appearance as a result of many acquisitions, and management not delivering on promised improvements. Still, RP was considered an industry leader with strong name recognition, a large customer base and a dependable product offering. Product releases, product development announcements, and the creation of a nationwide VAR program indicated that the company was trying to deliver on its promises.


How satisfied are current customers with RP? Will they renew? Are existing customers adding services from RP? How fast will RP grow with signing up new customers? Why do customers choose RP? What are the biggest competitive threats to RP? Why would a customer choose a competitor over RP? To answer these and other questions, Blueshift will issue a market research report by gathering data from independent sources in the following areas: RP customers, RP prospective customers, Competitor customers, Competitors, and Industry specialists.


Companies: AppFolio Inc. (APPF), CoreLogic Inc. (CLGX), CoStar Group Inc. (CSGP), RealPage (RP)


Research Begins: Jan. 23, 2017