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Jun 30, 2024
Tyler Q2 2024 Earnings Report
Reported strong results driven by 23% growth in SaaS revenues.
Key Takeaways
Tyler Technologies reported a positive second quarter in 2024, marked by a 7.3% increase in total revenues, with SaaS revenues growing by 23.2%. The company's operating income and net income also saw significant increases, and the new business pipeline remains strong.
Total revenues increased by 7.3% to $541.0 million.
SaaS revenues grew by 23.2%, comprising 97% of new software contract value.
GAAP operating income rose by 26.1% to $78.0 million.
Free cash flow improved to $48.6 million from negative $33.2 million.
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 anticipates total revenues between $2.120 billion and $2.150 billion, GAAP diluted earnings per share between $5.76 and $5.96, non-GAAP diluted earnings per share between $9.25 and $9.45, and a free cash flow margin between 18% and 20% for the full year 2024.
Positive Outlook
- Total revenues are expected to be in the range of $2.120 billion to $2.150 billion.
- GAAP diluted earnings per share are expected to be in the range of $5.76 to $5.96.
- Non-GAAP diluted earnings per share are expected to be in the range of $9.25 to $9.45.
- Free cash flow margin is expected to be in the range of 18% to 20%.
- Research and development expense is expected to be in the range of $122 million to $125 million.
Challenges Ahead
- Capital expenditures are expected to be in the range of $50 million to $52 million.
- Capital expenditures include approximately $33 million of capitalized software development costs.
- GAAP diluted earnings per share may fluctuate due to the impact on our annual effective tax rate of discrete tax items, such as stock incentive awards, future acquisitions, changes in tax legislation, and other transactions.
- Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.
- Forward-looking statements are subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income