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Tyler
🇺🇸 NYSE:TYL
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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.

Total Revenue
$452M
Previous year: $434M
+4.2%
EPS
$1.66
Previous year: $1.75
-5.1%
Organic Revenue Growth
6%
Previous year: 9.2%
-34.8%
Gross Profit
$193M
Previous year: $187M
+3.3%
Cash and Equivalents
$174M
Previous year: $309M
-43.8%
Free Cash Flow
$115M
Previous year: $102M
+12.6%
Total Assets
$4.69B
Previous year: $4.73B
-0.9%

Tyler

Tyler

Tyler Revenue by Segment

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

Company Overview

Full financial data and analysis

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