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Sep 30, 2022
Tyler Q3 2022 Earnings Report
Reported a 2.9% increase in total revenues, with organic GAAP revenues growing by 9.0%.
Key Takeaways
Tyler Technologies reported solid top and bottom-line results for Q3 2022, driven by strong execution and robust public sector market demand. Total revenues increased by 2.9%, with organic GAAP revenue growth of 9.0%. The company is prioritizing debt reduction and strategic acquisitions to enhance long-term growth.
Total revenues increased by 2.9% year-over-year to $473.2 million.
GAAP revenues grew 9.0% organically, excluding COVID-related revenues.
Software subscription arrangements comprised approximately 91% of the total new software contract value.
ARR was reported as $1.49 billion.
Tyler
Tyler
Tyler Revenue by Segment
Revenue by Segment
Subscriptions Revenue
CapyFin.comMaintenance Revenue
CapyFin.comSoftware licenses and royalties Revenue
CapyFin.comHardware and other Revenue
CapyFin.com Forward Guidance
Tyler Technologies is providing guidance for the full year 2022. GAAP and non-GAAP total revenues are both expected to be in the range of $1.837 billion to $1.857 billion. Non-GAAP diluted earnings per share are expected to be in the range of $7.51 to $7.65.
Positive Outlook
- GAAP and non-GAAP total revenues are both expected to be in the range of $1.837 billion to $1.857 billion.
- Non-GAAP diluted earnings per share are expected to be in the range of $7.51 to $7.65.
- Interest expense is expected to be approximately $28 million.
- Pretax non-cash, share-based compensation expense is expected to be approximately $107 million.
- The non-GAAP annual effective tax rate is expected to be 22.5%.
Challenges Ahead
- Total revenues are expected to include approximately $49 million of COVID-related revenues.
- GAAP earnings per share assumes an estimated annual effective tax rate of approximately 14.0% after discrete tax items.
- Capital expenditures are expected to be in the range of $58 million to $62 million.
- Total depreciation and amortization expense is expected to be approximately $147 million, including approximately $112 million from amortization of acquisition intangibles.
- Has reduced the upper end of full year revenue guidance to reflect lower license revenue, as well as pressure on professional services revenue related to staffing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income