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Mar 31, 2020
Tyler Q1 2020 Earnings Report
Revenues grew double-digits and bookings rose 40%.
Key Takeaways
Tyler Technologies reported a solid first quarter with revenues growing double-digits and bookings rising nearly 40%. The company's recurring revenues made up nearly 71% of total revenues. Cash flow for the quarter was robust, with cash from operations more than doubling and free cash flow quadrupling last year's first quarter.
Total revenues were $276.5 million, up 11.9% from the first quarter of 2019.
Recurring revenues from maintenance and subscriptions were $196.1 million, an increase of 17.1% compared to the first quarter of 2019.
Net income was $47.6 million, or $1.16 per diluted share, up 73.9% compared to the first quarter of 2019.
Total bookings were $319 million, up 39.8% compared to the first quarter of 2019.
Tyler
Tyler
Tyler Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comMaintenance Revenue
CapyFin.comSoftware licenses and royalties Revenue
CapyFin.comHardware and other Revenue
CapyFin.com Forward Guidance
We anticipate a greater impact from COVID-19 in the second and third quarters. As a result, we are suspending guidance until we have more clarity around the ultimate severity, duration and impact of the pandemic. We currently expect to have greater clarity by the time we report our second quarter results.
Positive Outlook
- Recurring revenues, which comprise approximately 70% of our total revenues, will not be significantly affected.
- We expect to continue to invest in product development and accelerating our move to the cloud at levels consistent with our initial plans for the year.
- We value the experience and expertise of our employees and do not expect to eliminate any positions.
- Tyler's mission-critical software and services power essential functions of government, and the fundamental demand for our products will remain strong in the long term.
- Technology is an increasingly critical factor in helping government function effectively, especially during this time.
Challenges Ahead
- We have not seen meaningful cancellations, but continue to see delays in procurement processes and lengthening sales cycles, as public sector entities focus on issues related to the pandemic.
- Many of our clients will face near-term budget pressures.
- We can deliver the majority of our professional services remotely, but expect to continue to see lower services revenues as some projects are delayed by client availability and billable travel is reduced.
- Approximately $6 million of revenues classified as "hardware and other revenues" will be also eliminated in the second quarter as a result of the cancellation of our Connect conference.
- Incremental hiring will be reduced somewhat from our original plans.
Revenue & Expenses
Visualization of income flow from segment revenue to net income