Tyler Technologies, Inc. (TYL)

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Tyler Technologies Reports Earnings for Third Quarter 2024
https://s201.q4cdn.com/385562537/files/doc_financials/2024/q3/24-48-Q3-earnings-PR.pdf
Tyler Technologies Reports Earnings for Third Quarter 2024
Strong results with 20% growth in SaaS revenues and 49% growth in cash flows
PLANO, Texas – October 23, 2024 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value
equity company, today announced financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights (all comparisons are to the third quarter of 2023):
Revenues
Total revenues were $543.3 million, up 9.8%. On an organic basis, revenues grew 9.4%.
Recurring Revenues
Recurring revenues from subscriptions and maintenance were $462.8 million, up 12.1%, and comprised
85.2% of total revenues, up from 83.4%. On an organic basis, recurring revenues grew 11.8%.
• Subscription revenues were $347.2 million, up 17.6%. On an organic basis, subscription revenues
grew 17.3%. Within subscriptions:
? SaaS revenues grew 20.3% to $166.6 million. On an organic basis, SaaS revenues grew
19.7%.
? Transaction-based revenues grew 15.2% on an organic basis to $180.6 million.
? SaaS arrangements comprised approximately 97% of the total new software contract value,
up from approximately 80%.
• Annualized recurring revenue (ARR) was $1.85 billion, up 12.1%.
Earnings/EBITDA
• GAAP operating income was $82.8 million, up 29.5%. Non-GAAP operating income was $137.8
million, up 12.4%.
• GAAP net income was $75.9 million, or $1.74 per diluted share, up 61.4%. Non-GAAP net income
was $110.0 million, or $2.52 per diluted share, up 20.0%.
• Adjusted EBITDA was $152.4 million, up 15.0%.
Cash Flow
• Cash flow from operations was $263.7 million, up 48.6%.
• Free cash flow was $252.9 million, up 55.5%.
• During the third quarter, cash tax payments included approximately $6 million related to IRC Section
174 capitalization rules.
Tyler Technologies Reports Earnings
for Third Quarter 2024
October 23, 2024
Page 2
"We carried our momentum from the first half of the year into the third quarter and delivered remarkable
results," said Lynn Moore, Tyler's president and chief executive officer. "SaaS and transaction revenues fueled
our growth, as both exceeded our expectations. Even as SaaS adoption accelerated to 97% of our new
software contract value, our non-GAAP operating margin expanded to 25.4%, benefiting from our cloud
efficiency initiatives and improved professional services margins. Free cash flow reached a new quarterly
high, up 55.5%.
"Activity in the public sector market remains robust and our elevated contract volume in the third quarter
reflects solid execution under our go-to-market strategy, including growing cross-sell wins. Annual recurring
revenue added from new SaaS contracts in the third quarter increased 55% over last year. We're also pleased
that the total contract value signed this quarter for on-premises client flips to the cloud was more than triple
that of last year's third quarter. While our progress toward our 2025 and 2030 targets will not be linear, our
confidence in achieving those targets continues to grow with our success in executing against each of the
pillars supporting those objectives. We have revised our full-year 2024 guidance to reflect our year-to-date
results and our positive outlook for the fourth quarter," concluded Moore.
Guidance for 2024
As of October 23, 2024, Tyler Technologies is providing the following guidance for the full year 2024:
• Total revenues are expected to be in the range of $2.125 billion to $2.145 billion.
• GAAP diluted earnings per share are expected to be in the range of $6.13 to $6.28.
• Non-GAAP diluted earnings per share are expected to be in the range of $9.47 to $9.62.
• Free cash flow margin is expected to be in the range of 21% to 23%.
• Research and development expense is expected to be in the range of $119 million to $122 million.
• Capital expenditures are expected to be in the range of $47 million to $49 million, including
approximately $31 million of capitalized software development costs.