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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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