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RealPage to Improve Marketing Services with LeaseLabs Buyout

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RealPage to Improve Marketing Services with LeaseLabs Buyout

RealPage (RP) acquires LeaseLabs to enhance its marketing services segment.

RealPage RP recently completed its previously announced acquisition of LeaseLabs, a provider of marketing services.

With this, RealPage, a provider of property management software and data analytics solutions, completed its sixth acquisition since January 2017. Previously, the company had acquired companies like Axiometrics, American Utility Management, On-Site Manager and ClickPay among others.

The addition of LeaseLabs is expected to enhance RealPage’s marketing services segment with marketing analytic services and direct marketing services among others. RealPage is planning to launch a service called “Go Direct Marketing Suite” with the combination of the marketing services of both the companies.

Notably, the talent pool of LeaseLabs will be absorbed by RealPage, which is particularly optimistic about the combined marketing and advertising solutions that are in the cards.

We believe that this deal will boost the company’s top line going ahead.

Snapshot of RealPage’s Financial Performance

Notably, for the quarter ended June 2018, the company posted revenues of $216.36 million, surpassing the year-ago revenues of $162.25 million.

RealPage, Inc. Revenue (TTM)

RealPage, Inc. Revenue (TTM) | RealPage, Inc. Quote

Quarterly earnings of 37 cents per share were in line with the Zacks Consensus Estimate. The figure was also better than the year-ago figure of 23 cents.

The consensus estimate for the current quarter is 35 cents per share on $221.12 million in revenues while that for the current fiscal is $1.46 per share on $870.24 million in revenues.

Notably, the company’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and delivered a trailing four-quarter positive earnings surprise of 1.12%. It will be interesting to see if the ongoing initiatives of this Zacks Rank #3 (Hold) stock drive its earnings in the long-run.

Stocks to Consider

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The long-term earnings growth rate for Microsoft, Amazon and Apple is 12.3%, 27% and 9.7%, respectively.

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