Tyler Q4 2023 Earnings Report
Key Takeaways
Tyler Technologies reported strong Q4 2023 results, marked by a 6.3% increase in total revenues and a significant 21.7% growth in SaaS revenues. The company's strategic focus on cloud transition and recurring revenue streams contributed to solid earnings and cash flow, surpassing expectations. New contract signings, including a landmark win with the California Department of Parks and Recreation, and debt reduction efforts further highlight Tyler's strong performance and optimistic outlook for 2024.
Total revenues increased by 6.3%, reaching $480.9 million.
SaaS revenues grew by 21.7% for the quarter.
GAAP operating income increased by 17.3% to $47.7 million.
Free cash flow reached a new high for a fourth quarter, totaling $134.4 million.
Tyler
Tyler
Tyler Revenue by Segment
Forward Guidance
Tyler Technologies provided guidance for the full year 2024, including total revenue, GAAP diluted earnings per share, non-GAAP diluted earnings per share, and free cash flow margin.
Positive Outlook
- Total revenues are expected to be in the range of $2.095 billion to $2.135 billion.
- GAAP diluted earnings per share are expected to be in the range of $5.17 to $5.37.
- Non-GAAP diluted earnings per share are expected to be in the range of $8.90 to $9.10.
- Free cash flow margin is expected to be in the range of 17% to 19%.
- Research and development expense is expected to be in the range of $125 million to $130 million.
Challenges Ahead
- Capital expenditures are expected to be in the range of $46 million to $48 million, including approximately $27 million of software development costs.
- GAAP diluted earnings per share may fluctuate due to the impact on our annual effective tax rate of discrete tax items, such as stock incentive awards, future acquisitions, changes in tax legislation, and other transactions.
- Competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services.
- Costs of compliance and any failure to comply with government and stock exchange regulations.
- General economic, political and market conditions, including continued inflation and rising interest rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income