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Sep 30, 2021
Tyler Q3 2021 Earnings Report
Reported exceptionally strong results with revenue growth and record highs in cash flows.
Key Takeaways
Tyler Technologies reported a significant increase in total revenues, driven by the inclusion of NIC's results and strong subscription revenue growth. The company achieved new quarterly highs in revenues, non-GAAP earnings per share, free cash flow, and bookings. Recurring revenues exceeded 80% of total revenues for the quarter.
Total revenues increased by 60.9% to $459.9 million, with organic revenue growth of 7.6%.
Recurring revenues from maintenance and subscriptions grew by 78.9% to $370.8 million, representing 80.6% of total revenue.
Operating income rose by 13.1% to $56.2 million, and net income increased by 12.4% to $44.2 million, or $1.04 per diluted share.
Cash flows from operations and free cash flow reached record highs at $205.4 million and $192.8 million, respectively.
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 guidance for the full year 2021.
Positive Outlook
- GAAP total revenues are expected to be in the range of $1.577 billion to $1.597 billion.
- Non-GAAP total revenues are expected to be in the range of $1.580 billion to $1.600 billion.
- GAAP diluted earnings per share are expected to be in the range of $3.55 to $3.63.
- Non-GAAP diluted earnings per share are expected to be in the range of $6.94 to $7.02.
- Fully diluted shares for the year are expected to be in the range of 42.0 million to 42.5 million shares.
Challenges Ahead
- Total revenues are expected to include approximately $72 million of COVID-related revenues from NIC's TourHealth and pandemic unemployment services that are expected to wind down in the first half of 2022.
- 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 $108 million.
- Research and development expense is expected to be in the range of $94 million to $96 million.
- Capital expenditures are expected to be in the range of $47 million to $49 million, including approximately $21 million of capitalized software development costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income