Tyler Technologies (TYL - Free Report) reported third-quarter 2021 non-GAAP earnings of $2.01 per share, topping the Zacks Consensus Estimate of $1.74 per share. The bottom line also improved 34% from the year-ago quarter’s $1.50 per share.
The non-GAAP revenues of the software and technology services provider surged 61.1%, year over year, to $460.6 million from the prior year’s $285.9 million. The top line surpassed Zacks Consensus Estimate of $419.2 million.
This robust year-over-year growth in the top line was primarily driven by the post-acquisition contributions of NIC, and the constant rebound of the market and sales activities to the pre-COVID levels. On an organic basis, the non-GAAP revenues increased 7.5%.
Recurring revenues from maintenance and subscriptions surged 78.9%, year over year, to $370.8 million and accounted for 80.6% of the total quarterly revenues.
The annual recurring revenues, on a non-GAAP basis, came in at $1.49 billion, up 79.2% year over year. Subscription bookings during the third quarter added $19 million to the annual recurring revenues.
Quarterly Details
Segment wise, maintenance revenues (accounting for 25.6% of total revenues) were $117.8 million, down 0.1% year over year.
Subscription revenues (55% of total revenues) skyrocketed 183% year over year to $252.9 million.
Software licenses and royalties (4.9% of total revenues) of $22.7 million increased 13.7% on a year-over-year basis.
Software Services revenues (11.9% of total revenues) amounted to $54.6 million, up 13.9% from the year-ago quarter.
Appraisal services revenues (1.6% of total revenues) jumped 32.5% from the prior-year quarter to $7.1 million.
Hardware and other revenues (1% of total revenues) slid 10.5% from the year-ago quarter to $4.7 million.
Backlog at quarter-end was $1.77 billion, up 14.3% year over year.
Bookings surged more than two-fold, year on year, to $601 million, courtesy of the post-acquisition activities of NIC, along with the continued rebound of market trends to the pre-pandemic levels. Excluding NIC’s contribution, bookings increased 52% year over year.
Operating Details
Tyler Technologies’ non-GAAP gross profit increased 38.4% year over year to $216.2 million. However, the non-GAAP gross margin contracted 770 basis points to 46.9%.
The adjusted EBITDA increased 40.6%, year over year, to $125 million.
The non-GAAP operating income for the quarter totaled $116.8 million, up 42.8% year over year. However, non-GAAP operating margin contracted 330 basis points to 25.3%.
Balance Sheet & Other Financial Details
As of Jun 30, 2021, Tyler Technologies’ cash and cash equivalents were $216.8 million compared with $216.8 million on Jun 30, 2021.
The company generated $205.4 million of cash from operational activities and $192.8 million of free cash flow.
Guidance
Buoyed by the better-than-anticipated third-quarter performance, Tyler Technologies raised the revenue and earnings outlook for the full fiscal year. The company now projects revenues between $1.577 billion and $1.597 billion for fiscal 2021, up from the earlier guided range of $1.532-$1.557 billion.
It also raised the non-GAAP earnings guided range to $6.94-$7.02 per share from the $6.70-$6.80 projected earlier.
Zacks Rank and Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Advanced Micro Devices (AMD - Free Report) and CACI International (CACI - Free Report) , all carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Applied Materials, Advanced Micro Devices and CACI is currently pegged at 19.4%, 44.6% and 5.5%, respectively.
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Tyler Technologies (TYL - Free Report) reported third-quarter 2021 non-GAAP earnings of $2.01 per share, topping the Zacks Consensus Estimate of $1.74 per share. The bottom line also improved 34% from the year-ago quarter’s $1.50 per share.
The non-GAAP revenues of the software and technology services provider surged 61.1%, year over year, to $460.6 million from the prior year’s $285.9 million. The top line surpassed Zacks Consensus Estimate of $419.2 million.
This robust year-over-year growth in the top line was primarily driven by the post-acquisition contributions of NIC, and the constant rebound of the market and sales activities to the pre-COVID levels. On an organic basis, the non-GAAP revenues increased 7.5%.
Recurring revenues from maintenance and subscriptions surged 78.9%, year over year, to $370.8 million and accounted for 80.6% of the total quarterly revenues.
The annual recurring revenues, on a non-GAAP basis, came in at $1.49 billion, up 79.2% year over year. Subscription bookings during the third quarter added $19 million to the annual recurring revenues.
Quarterly Details
Segment wise, maintenance revenues (accounting for 25.6% of total revenues) were $117.8 million, down 0.1% year over year.
Subscription revenues (55% of total revenues) skyrocketed 183% year over year to $252.9 million.
Software licenses and royalties (4.9% of total revenues) of $22.7 million increased 13.7% on a year-over-year basis.
Software Services revenues (11.9% of total revenues) amounted to $54.6 million, up 13.9% from the year-ago quarter.
Appraisal services revenues (1.6% of total revenues) jumped 32.5% from the prior-year quarter to $7.1 million.
Hardware and other revenues (1% of total revenues) slid 10.5% from the year-ago quarter to $4.7 million.
Backlog at quarter-end was $1.77 billion, up 14.3% year over year.
Bookings surged more than two-fold, year on year, to $601 million, courtesy of the post-acquisition activities of NIC, along with the continued rebound of market trends to the pre-pandemic levels. Excluding NIC’s contribution, bookings increased 52% year over year.
Operating Details
Tyler Technologies’ non-GAAP gross profit increased 38.4% year over year to $216.2 million. However, the non-GAAP gross margin contracted 770 basis points to 46.9%.
The adjusted EBITDA increased 40.6%, year over year, to $125 million.
The non-GAAP operating income for the quarter totaled $116.8 million, up 42.8% year over year. However, non-GAAP operating margin contracted 330 basis points to 25.3%.
Balance Sheet & Other Financial Details
As of Jun 30, 2021, Tyler Technologies’ cash and cash equivalents were $216.8 million compared with $216.8 million on Jun 30, 2021.
The company generated $205.4 million of cash from operational activities and $192.8 million of free cash flow.
Guidance
Buoyed by the better-than-anticipated third-quarter performance, Tyler Technologies raised the revenue and earnings outlook for the full fiscal year. The company now projects revenues between $1.577 billion and $1.597 billion for fiscal 2021, up from the earlier guided range of $1.532-$1.557 billion.
It also raised the non-GAAP earnings guided range to $6.94-$7.02 per share from the $6.70-$6.80 projected earlier.
Zacks Rank and Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Applied Materials (AMAT - Free Report) , Advanced Micro Devices (AMD - Free Report) and CACI International (CACI - Free Report) , all carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Applied Materials, Advanced Micro Devices and CACI is currently pegged at 19.4%, 44.6% and 5.5%, respectively.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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