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Jun 30, 2021
Tyler Q2 2021 Earnings Report
Tyler Technologies' financial performance was driven by the acquisition of NIC and organic growth in the second quarter of 2021.
Key Takeaways
Tyler Technologies reported a 49.1% increase in total revenues, reaching $404.1 million, driven by the acquisition of NIC Inc. and organic revenue growth of 12.4%. Non-GAAP EPS was $1.83, up 35.3% compared to the second quarter of 2020. The company is integrating NIC and focusing on cloud optimization.
Total revenues increased by 49.1% to $404.1 million, with organic revenue growth of 12.4%.
Recurring revenues from maintenance and subscriptions grew by 57.7%, comprising 79.0% of total revenue.
Operating income decreased by 7.4% to $38.3 million, while non-GAAP operating income increased by 43.9% to $107.4 million.
Subscription bookings added $15.0 million in annual recurring revenue.
Tyler
Tyler
Tyler Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comMaintenance Revenue
CapyFin.comProfessional services Revenue
CapyFin.comSoftware licenses and royalties Revenue
CapyFin.comHardware and other Revenue
CapyFin.com Forward Guidance
Tyler Technologies provided full year 2021 guidance, including GAAP total revenues expected to be in the range of $1.532 billion to $1.557 billion, and non-GAAP diluted earnings per share expected to be in the range of $6.70 to $6.80.
Positive Outlook
- GAAP total revenues are expected to be in the range of $1.532 billion to $1.557 billion.
- Non-GAAP total revenues are expected to be in the range of $1.535 billion to $1.560 billion.
- Non-GAAP diluted earnings per share are expected to be in the range of $6.70 to $6.80.
- Fully diluted shares for the year are expected to be in the range of 42.0 million to 42.5 million shares.
- The non-GAAP annual effective tax rate is expected to be 24%.
Challenges Ahead
- Total revenues are expected to include approximately $32 million of COVID-related revenues from NIC's TourHealth and pandemic unemployment services that are not expected to recur in future years.
- GAAP diluted earnings per share are expected to be in the range of $3.68 to $3.81 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate.
- Interest expense is expected to be approximately $23 million, including approximately $11 million of amortization of debt discounts and issuance costs.
- Pretax non-cash, share-based compensation expense is expected to be approximately $102 million.
- Capital expenditures are expected to be in the range of $48 million to $50 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income