We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tyler Technologies, Inc. (TYL - Free Report) reported second-quarter 2024 non-GAAP earnings of $2.40 per share, which beat the Zacks Consensus Estimate of $2.34. The bottom line was higher than the year-ago quarter’s earnings of $2.01.
Non-GAAP revenues increased 7.3% year over year to $541 million. Moreover, the top line beat the Zacks Consensus Estimate of $537.3 million.
The year-over-year improvement in the top line was primarily driven by a rise in subscription revenues. During the second quarter, software subscription arrangements comprised approximately 97% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies’ recurring revenues from maintenance and subscriptions increased 8.4% year over year to $449 million and accounted for 83% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.80 billion, up 8.4% year over year.
Segment-wise, Maintenance revenues (accounting for 21.3% of total revenues) were $115.3 million, down from $116.54 million reported in the year-ago quarter. Our model estimate for Maintenance revenues was pegged at $115.3 million.
Subscription revenues (61.7% of total revenues) grew 12.1% year over year to $333.7 million, while our model estimate for the same was pinned at $331.5 million. On an organic basis, Subscription revenues soared 11.8% year over year.
Software licenses and royalties (1% of total revenues) of $5.3 million fell year over year by 45.5%. Our model predicted Software licenses and royalties’ sales to decrease 4.1% to $9.4 million.
Professional Services revenues (13.3% of total revenues) amounted to $72 million, up 8.3% from the year-ago quarter. Our model estimate for the same was pegged at $67.8 million.
Hardware and other revenues (2.7% of total revenues) climbed 6.6% from the year-ago quarter to $14.7 million. Our model estimate for Hardware and other revenues was pegged at $13.6 million.
Operating Details
Tyler Technologies’ non-GAAP gross profit increased 6.8% year over year to $254.7 million. The non-GAAP gross margin declined 20 basis points (bps) to 47.1%.
Adjusted EBITDA increased 14.7% year over year to $144 million.
Non-GAAP operating income for the quarter totaled $132.6 million and jumped 14.4% year over year. However, the non-GAAP operating margin expanded 150 bps to 24.5%.
Balance Sheet & Other Details
As of Jun 30, 2024, TYL’s cash and cash equivalents were $250.7 million compared with $188.2 million as of Mar 31, 2024.
The company generated an operating cash flow of $64.3 million and free cash flow of $48.6 million in the second quarter of fiscal 2024.
Revised FY24 Guidance
Tyler Technologies revised its guidance for 2024. The company now expects revenues in the range of $2.12-$2.15 billion compared with the previous guidance of $2.11-$2.14 billion. TYL projects its adjusted earnings per share in the range of $9.25-$9.45 compared with the previous guidance of $9.10-$9.30.
Zacks Rank & Stocks to Consider
Tyler Technologies currently carries a Zacks Rank #3 (Hold). Shares of TYL have gained 23.4% year to date (YTD).
The Zacks Consensus Estimate for LOGI’s fiscal 2025 earnings has been revised upward by a penny to $4.29 per share in the past 30 days, suggesting year-over-year growth of 0.94%. The long-term estimated earnings growth rate for the stock is 26.2%. The stock has lost 6.7% YTD.
The Zacks Consensus Estimate for Appfolio’s 2024 earnings has been revised downward by 2 cents to $3.98 per share in the past 60 days, indicating an increase of 132.8% on a year-over-year basis. Shares of APPF have jumped 48.1% YTD.
The consensus mark for Twilio’s 2024 earnings has been revised upward by 2 cents to $3.12 per share over the past 30 days, indicating a 27.4% increase from 2023. It has a long-term earnings growth expectation of 33%. The stock has plunged 25.6% YTD.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tyler Technologies (TYL) Q2 Earnings & Revenues Beat Estimates
Tyler Technologies, Inc. (TYL - Free Report) reported second-quarter 2024 non-GAAP earnings of $2.40 per share, which beat the Zacks Consensus Estimate of $2.34. The bottom line was higher than the year-ago quarter’s earnings of $2.01.
Non-GAAP revenues increased 7.3% year over year to $541 million. Moreover, the top line beat the Zacks Consensus Estimate of $537.3 million.
The year-over-year improvement in the top line was primarily driven by a rise in subscription revenues. During the second quarter, software subscription arrangements comprised approximately 97% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Quarterly Details
Tyler Technologies’ recurring revenues from maintenance and subscriptions increased 8.4% year over year to $449 million and accounted for 83% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.80 billion, up 8.4% year over year.
Segment-wise, Maintenance revenues (accounting for 21.3% of total revenues) were $115.3 million, down from $116.54 million reported in the year-ago quarter. Our model estimate for Maintenance revenues was pegged at $115.3 million.
Subscription revenues (61.7% of total revenues) grew 12.1% year over year to $333.7 million, while our model estimate for the same was pinned at $331.5 million. On an organic basis, Subscription revenues soared 11.8% year over year.
Software licenses and royalties (1% of total revenues) of $5.3 million fell year over year by 45.5%. Our model predicted Software licenses and royalties’ sales to decrease 4.1% to $9.4 million.
Professional Services revenues (13.3% of total revenues) amounted to $72 million, up 8.3% from the year-ago quarter. Our model estimate for the same was pegged at $67.8 million.
Hardware and other revenues (2.7% of total revenues) climbed 6.6% from the year-ago quarter to $14.7 million. Our model estimate for Hardware and other revenues was pegged at $13.6 million.
Operating Details
Tyler Technologies’ non-GAAP gross profit increased 6.8% year over year to $254.7 million. The non-GAAP gross margin declined 20 basis points (bps) to 47.1%.
Adjusted EBITDA increased 14.7% year over year to $144 million.
Non-GAAP operating income for the quarter totaled $132.6 million and jumped 14.4% year over year. However, the non-GAAP operating margin expanded 150 bps to 24.5%.
Balance Sheet & Other Details
As of Jun 30, 2024, TYL’s cash and cash equivalents were $250.7 million compared with $188.2 million as of Mar 31, 2024.
The company generated an operating cash flow of $64.3 million and free cash flow of $48.6 million in the second quarter of fiscal 2024.
Revised FY24 Guidance
Tyler Technologies revised its guidance for 2024. The company now expects revenues in the range of $2.12-$2.15 billion compared with the previous guidance of $2.11-$2.14 billion. TYL projects its adjusted earnings per share in the range of $9.25-$9.45 compared with the previous guidance of $9.10-$9.30.
Zacks Rank & Stocks to Consider
Tyler Technologies currently carries a Zacks Rank #3 (Hold). Shares of TYL have gained 23.4% year to date (YTD).
Some better-ranked stocks in the broader technology sector are Logitech (LOGI - Free Report) , Appfolio (APPF - Free Report) and Twilio (TWLO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LOGI’s fiscal 2025 earnings has been revised upward by a penny to $4.29 per share in the past 30 days, suggesting year-over-year growth of 0.94%. The long-term estimated earnings growth rate for the stock is 26.2%. The stock has lost 6.7% YTD.
The Zacks Consensus Estimate for Appfolio’s 2024 earnings has been revised downward by 2 cents to $3.98 per share in the past 60 days, indicating an increase of 132.8% on a year-over-year basis. Shares of APPF have jumped 48.1% YTD.
The consensus mark for Twilio’s 2024 earnings has been revised upward by 2 cents to $3.12 per share over the past 30 days, indicating a 27.4% increase from 2023. It has a long-term earnings growth expectation of 33%. The stock has plunged 25.6% YTD.