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Mar 31, 2023
Tyler Q1 2023 Earnings Report
Tyler Technologies reported strong first-quarter results, meeting or exceeding expectations for most key metrics, with SaaS comprising 87% of new software contract value and robust free cash flow.
Key Takeaways
Tyler Technologies reported a 3.5% increase in total revenue, reaching $471.9 million. Organic revenue growth was 7.2%. GAAP net income was $30.9 million, or $0.73 per diluted share, while non-GAAP net income was $74.7 million, or $1.76 per diluted share. The company's SaaS revenues grew by 24.4%.
Total revenues increased by 3.5% year-over-year to $471.9 million.
SaaS revenues grew organically by 24.4%.
GAAP operating income decreased by 19.5% year-over-year to $45.0 million.
Free cash flow increased by 55.1% year-over-year to $63.6 million.
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
Tyler Technologies provided guidance for the full year 2023.
Positive Outlook
- Total revenues are expected to be in the range of $1.935 billion to $1.970 billion.
- Non-GAAP diluted earnings per share are expected to be in the range of $7.50 to $7.65.
- Research and development expense is expected to be in the range of $108 million to $110 million.
- Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
- The non-GAAP annual effective tax rate is expected to be 22.0%.
Challenges Ahead
- GAAP diluted earnings per share are expected to be in the range of $3.65 to $3.80 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
- Interest expense is expected to be approximately $26 million, including approximately $5 million of non-cash amortization of debt discounts and issuance costs.
- Pretax non-cash, share-based compensation expense is expected to be approximately $109 million.
- Capital expenditures are expected to be in the range of $63 million to $65 million, including approximately $37 million of capitalized software development costs.
- Total depreciation and amortization expense is expected to be approximately $149 million, including approximately $109 million from amortization of acquisition intangibles.
Revenue & Expenses
Visualization of income flow from segment revenue to net income