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Jun 30, 2022
Tyler Q2 2022 Earnings Report
Reported a 16.0% increase in total revenues driven by 28.2% growth in subscriptions.
Key Takeaways
Tyler Technologies reported strong second-quarter results with a 16.0% increase in total revenues, driven by substantial growth in subscription revenues. The company's focus on transitioning to SaaS and managing costs contributed to a solid financial performance.
Total revenues increased by 16.0%, with organic revenue growth of 6.2%.
Subscription revenues grew by 28.2% in total and 14.1% organically, marking 66 consecutive quarters of double-digit subscription revenue growth.
Bookings were robust at approximately $562 million, growing 21% over the previous year.
The number of clients converting from on-premises to SaaS reached a new high of 96 in the second quarter.
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 expects GAAP and non-GAAP total revenues to be in the range of $1.835 billion to $1.870 billion for the full year 2022. GAAP diluted earnings per share are expected to be in the range of $3.60 to $3.76, and non-GAAP diluted earnings per share are expected to be in the range of $7.36 to $7.52.
Positive Outlook
- GAAP and non-GAAP total revenues are expected to be in the range of $1.835 billion to $1.870 billion.
- GAAP diluted earnings per share are expected to be in the range of $3.60 to $3.76.
- Non-GAAP diluted earnings per share are expected to be in the range of $7.36 to $7.52.
- Research and development expense is expected to be in the range of $98 million to $101 million.
- Fully diluted shares for the year are expected to be in the range of 42.4 million to 42.8 million shares.
Challenges Ahead
- Total revenues are expected to include approximately $44 million of COVID-related revenues from NIC's TourHealth and rent relief services.
- Interest expense is expected to be approximately $30 million, including approximately $7.5 million of non-cash amortization of debt discounts and issuance costs.
- The non-GAAP annual effective tax rate is expected to be 24%.
- Capital expenditures are expected to be in the range of $58 million to $62 million, including approximately $34 million of capitalized software development costs.
- Total depreciation and amortization expense is expected to be approximately $144 million, including approximately $109 million from amortization of acquisition intangibles.
Revenue & Expenses
Visualization of income flow from segment revenue to net income