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Tyler
🇺🇸 NYSE:TYL
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•
Jun 30, 2023

Tyler Q2 2023 Earnings Report

Achieved double-digit organic growth, driven by a 20% increase in SaaS revenues, and surpassed $500 million in total quarterly revenues.

Key Takeaways

Tyler Technologies reported strong second-quarter results, exceeding expectations with organic revenue growth of 10.4% and SaaS revenue growth of 20%. Total revenues reached a new milestone, surpassing $500 million for the first time. The public sector market remains strong, and the company is making progress with strategic initiatives to drive cloud migrations, cross-sell and upsell opportunities, and payments expansion.

Total revenues were $504.3 million, up 7.6% from the second quarter of 2022.

Organic revenue growth was 10.4%.

SaaS revenues grew organically 20.0%.

GAAP net income was $49.1 million, or $1.15 per diluted share, up 23.0% from the second quarter of 2022.

Total Revenue
$504M
Previous year: $469M
+7.6%
EPS
$2.01
Previous year: $1.88
+6.9%
Organic Revenue Growth
10.4%
Previous year: 6.2%
+67.7%
Gross Profit
$223M
Previous year: $193M
+15.4%
Cash and Equivalents
$119M
Previous year: $253M
-53.1%
Free Cash Flow
-$33.2M
Previous year: $60M
-155.4%
Total Assets
$4.64B
Previous year: $4.79B
-3.2%

Tyler

Tyler

Tyler Revenue by Segment

Forward Guidance

Tyler Technologies is providing the following guidance for the full year 2023: Total revenues are expected to be in the range of $1.940 billion to $1.965 billion. GAAP diluted earnings per share are expected to be in the range of $3.87 to $4.02. Non-GAAP diluted earnings per share are expected to be in the range of $7.60 to $7.75.

Positive Outlook

  • Total revenues are expected to be in the range of $1.940 billion to $1.965 billion.
  • GAAP diluted earnings per share are expected to be in the range of $3.87 to $4.02.
  • Non-GAAP diluted earnings per share are expected to be in the range of $7.60 to $7.75.
  • Interest expense is expected to be approximately $25 million.
  • Pretax non-cash, share-based compensation expense is expected to be approximately $110 million.

Challenges Ahead

  • GAAP diluted earnings per share may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
  • Research and development expense is expected to be in the range of $113 million to $114 million.
  • Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
  • GAAP earnings per share assumes an estimated annual effective tax rate of approximately 15.5% after discrete tax items.
  • Capital expenditures are expected to be in the range of $63 million to $65 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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