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Tyler
🇺🇸 NYSE:TYL
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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.

Total Revenue
$469M
Previous year: $405M
+15.6%
EPS
$1.88
Previous year: $1.83
+2.7%
Organic Revenue Growth
6.2%
Previous year: 12.4%
-50.0%
Gross Profit
$193M
Previous year: $182M
+6.3%
Cash and Equivalents
$253M
Previous year: $217M
+16.7%
Free Cash Flow
$60M
Previous year: -$28M
-314.2%
Total Assets
$4.79B
Previous year: $4.64B
+3.1%

Tyler

Tyler

Tyler Revenue by Segment

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

Company Overview

Full financial data and analysis

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