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Tyler
🇺🇸 NYSE:TYL
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•
Dec 31, 2020

Tyler Q4 2020 Earnings Report

Tyler Technologies' Q4 2020 earnings were released, showing a slight decrease in total revenue but strong growth in subscription revenue and free cash flow.

Key Takeaways

Tyler Technologies reported Q4 2020 results with a slight revenue decrease of 1.9% year-over-year to $283.3 million. However, subscription revenues grew by 17%, and free cash flow increased by 25.8% to $83.7 million. The company's non-GAAP operating margin improved to 26.9%.

Total revenues decreased by 1.9% to $283.3 million.

Subscription revenues grew strongly by 17%.

Operating income increased by 6.4% to $48.0 million.

Free cash flow increased by 25.8% to $83.7 million.

Total Revenue
$283M
Previous year: $287M
-1.4%
EPS
$1.39
Previous year: $1.43
-2.8%
Organic Revenue Growth
-2.1%
Previous year: 10.6%
-119.8%
Gross Profit
$139M
Previous year: $142M
-2.5%
Cash and Equivalents
$604M
Previous year: $233M
+159.4%
Free Cash Flow
$83.7M
Previous year: $67.8M
+23.5%
Total Assets
$2.61B
Previous year: $2.19B
+19.0%

Tyler

Tyler

Tyler Revenue by Segment

Forward Guidance

Tyler Technologies provided guidance for the full year 2021, expecting both GAAP and non-GAAP total revenues to be in the range of $1.190 billion to $1.220 billion, GAAP diluted earnings per share to be in the range of $4.03 to $4.21, and non-GAAP diluted earnings per share to be in the range of $5.65 to $5.77.

Positive Outlook

  • GAAP and non-GAAP total revenues are expected to be in the range of $1.190 billion to $1.220 billion.
  • GAAP diluted earnings per share are expected to be in the range of $4.03 to $4.21.
  • Non-GAAP diluted earnings per share are expected to be in the range of $5.65 to $5.77.
  • Pretax non-cash, share-based compensation expense is expected to be approximately $116 million.
  • Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.

Challenges Ahead

  • GAAP earnings per share assumes an estimated annual effective tax rate of approximately negative 16% after discrete tax items including approximately $67 million of discrete tax benefits related to share-based compensation.
  • The non-GAAP annual effective tax rate is expected to be 24%.
  • Capital expenditures are expected to be in the range of $39 million to $40 million, including approximately $3 million related to real estate and approximately $17 million of capitalized software development costs.
  • Total depreciation and amortization expense is expected to be approximately $81 million, including approximately $53 million from amortization of acquisition intangibles.
  • Guidance excludes the impact of any acquisitions which may be completed during the year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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