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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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