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Dec 31, 2022
Tyler Q4 2022 Earnings Report
Tyler Technologies reported a decrease in net income but an increase in revenues for Q4 2022.
Key Takeaways
Tyler Technologies reported an increase in total revenues by 4.3% to $452.2 million, while net income decreased by 43.3% to $31.1 million, or $0.73 per diluted share, compared to Q4 2021. Recurring revenues from maintenance and subscriptions increased by 7.7% to $374.0 million, representing 82.7% of total revenues. The company completed the acquisition of Rapid Financial Solutions during the quarter.
Total revenues increased 4.3% year-over-year to $452.2 million.
Recurring revenues from maintenance and subscriptions grew 7.7% to $374.0 million, comprising 82.7% of total revenues.
Net income decreased 43.3% year-over-year to $31.1 million, or $0.73 per diluted share.
Free cash flow increased 20.6% year-over-year to $114.7 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 2023, expecting GAAP and non-GAAP total revenues to be in the range of $1.935 billion to $1.970 billion, GAAP diluted earnings per share to be in the range of $4.10 to $4.25, and non-GAAP diluted earnings per share to be in the range of $7.50 to $7.65.
Positive Outlook
- GAAP and non-GAAP total revenues are expected to be in the range of $1.935 billion to $1.970 billion.
- GAAP diluted earnings per share are expected to be in the range of $4.10 to $4.25.
- Non-GAAP diluted earnings per share are expected to be in the range of $7.50 to $7.65.
- Interest expense is expected to be approximately $26 million.
- Research and development expense is expected to be in the range of $108 million to $110 million.
Challenges Ahead
- Operating margins are expected to trough this year with a return to margin expansion in 2024.
- Revenue comparison headwinds are expected due to the end of COVID-related revenues in the fourth quarter of 2022.
- Capital expenditures are expected to be in the range of $68 million to $70 million.
- Total depreciation and amortization expense is expected to be approximately $132 million.
- GAAP earnings per share assumes an estimated annual effective tax rate of approximately 21%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income