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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.
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 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