Tyler Technologies, Inc. (TYL - Free Report) reported fourth-quarter 2023 non-GAAP earnings of $1.89 per share, which beat the Zacks Consensus Estimate of $1.86. The bottom line was higher than the year-ago quarter’s earnings of $1.66 per share.
Non-GAAP revenues increased 6.3% year over year to $480.9 million. However, the top line missed the Zacks Consensus Estimate of $483.3 million.
The year-over-year top-line growth was primarily driven by a rise in subscription revenues. During the fourth quarter, software subscription arrangements comprised approximately 89% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 7.9% year over year to $403.6 million and accounted for 83.9% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.61 billion, up 7.9% year over year.
Segment-wise, Maintenance revenues (accounting for 24.4% of total revenues) were $117.5 million, slightly up from $117.3 million in the year-ago quarter. Our model estimates for Maintenance revenues were pegged at $114.8 million.
Subscription revenues (59.5% of total revenues) grew 11.4% year over year to $286.1 million, while our model estimates for the same were pegged at $281.9 million. On an organic basis, Subscription revenues soared 10.8% year over year.
Software licenses and royalties (1.6% of total revenues) of $7.6 million were flat on a year-over-year basis. Our model predicted Software licenses and royalties’ sales to increase 34.6% to $10.3 million.
Professional Services revenues (12.8% of total revenues) amounted to $61.5 million, down 3.7% from the year-ago quarter. Our model estimates for the same were pegged at $68.3 million.
Hardware and other revenues (1.7% of total revenues) climbed 21.5% from the year-ago quarter to $8.2 million. Our model estimates for Hardware and other revenues were pegged at $7.1 million.
The backlog at the quarter-end was $2.03 billion, up 7.6% year over year. Bookings increased 21.3% year over year at $563 million.
Operating Details
Tyler’s non-GAAP gross profit increased 8.4% year over year to $229.1 million. The non-GAAP gross margin expanded 90 basis points (bps) to 47.6%.
Adjusted EBITDA increased 7.4% year over year to $117.9 million.
Non-GAAP operating income for the quarter totaled $107.4 million and went up 9.7% year over year. However, the non-GAAP operating margin expanded 70 bps to 22.3%.
Balance Sheet & Other Details
As of Dec 31, 2023, Tyler’s cash and cash equivalents were $165.5 million compared with $131.4 million as of Sep 30, 2023.
The company generated operating cash flow of $147.4 million in the fourth quarter and $380.4 million in in the full year 2023. It generated free cash flow of $134.4 million in the fourth quarter and $327.4 million in the full year. With its robust free cash flow, TYL is focusing on reducing debt. In the fourth quarter of 2023, Tyler reduced its term debt by $90 million.
FY24 Guidance
Tyler initiated annual guidance for 2024. The company expects revenues in the range of $2.095-$2.135 billion. TYL forecasts adjusted earnings guidance in the range of $8.90-$9.10 per share.
Zacks Rank & Stocks to Consider
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have soared 34.8% over the past year.
Some better-ranked stocks from the broader technology sector are CrowdStrike Holdings (CRWD - Free Report) , Amazon.com (AMZN - Free Report) and NVIDIA Corporation (NVDA - Free Report) . CrowdStrike and Amazon each sport a Zacks Rank #1 (Strong Buy) at present, while NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has remained unchanged at $2.94 per share in the past 60 days, suggesting year-over-year growth of 90.9%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 186.9% over the past year.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 39 cents to $4.03 per share in the past 30 days, which calls for an increase of 39% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 71.6% over the past year.
The consensus mark for NVIDIA’s fiscal 2024 earnings has been revised upward by a penny to $12.32 per share over the past 30 days, indicating a whopping 268.9% increase from fiscal 2023. It has a long-term earnings growth expectation of 13.5%. In the trailing 12 months, NVDA stock has surged 220.9%.
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Tyler Technologies, Inc. (TYL - Free Report) reported fourth-quarter 2023 non-GAAP earnings of $1.89 per share, which beat the Zacks Consensus Estimate of $1.86. The bottom line was higher than the year-ago quarter’s earnings of $1.66 per share.
Non-GAAP revenues increased 6.3% year over year to $480.9 million. However, the top line missed the Zacks Consensus Estimate of $483.3 million.
The year-over-year top-line growth was primarily driven by a rise in subscription revenues. During the fourth quarter, software subscription arrangements comprised approximately 89% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 7.9% year over year to $403.6 million and accounted for 83.9% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.61 billion, up 7.9% year over year.
Segment-wise, Maintenance revenues (accounting for 24.4% of total revenues) were $117.5 million, slightly up from $117.3 million in the year-ago quarter. Our model estimates for Maintenance revenues were pegged at $114.8 million.
Subscription revenues (59.5% of total revenues) grew 11.4% year over year to $286.1 million, while our model estimates for the same were pegged at $281.9 million. On an organic basis, Subscription revenues soared 10.8% year over year.
Software licenses and royalties (1.6% of total revenues) of $7.6 million were flat on a year-over-year basis. Our model predicted Software licenses and royalties’ sales to increase 34.6% to $10.3 million.
Professional Services revenues (12.8% of total revenues) amounted to $61.5 million, down 3.7% from the year-ago quarter. Our model estimates for the same were pegged at $68.3 million.
Hardware and other revenues (1.7% of total revenues) climbed 21.5% from the year-ago quarter to $8.2 million. Our model estimates for Hardware and other revenues were pegged at $7.1 million.
The backlog at the quarter-end was $2.03 billion, up 7.6% year over year. Bookings increased 21.3% year over year at $563 million.
Operating Details
Tyler’s non-GAAP gross profit increased 8.4% year over year to $229.1 million. The non-GAAP gross margin expanded 90 basis points (bps) to 47.6%.
Adjusted EBITDA increased 7.4% year over year to $117.9 million.
Non-GAAP operating income for the quarter totaled $107.4 million and went up 9.7% year over year. However, the non-GAAP operating margin expanded 70 bps to 22.3%.
Balance Sheet & Other Details
As of Dec 31, 2023, Tyler’s cash and cash equivalents were $165.5 million compared with $131.4 million as of Sep 30, 2023.
The company generated operating cash flow of $147.4 million in the fourth quarter and $380.4 million in in the full year 2023. It generated free cash flow of $134.4 million in the fourth quarter and $327.4 million in the full year. With its robust free cash flow, TYL is focusing on reducing debt. In the fourth quarter of 2023, Tyler reduced its term debt by $90 million.
FY24 Guidance
Tyler initiated annual guidance for 2024. The company expects revenues in the range of $2.095-$2.135 billion. TYL forecasts adjusted earnings guidance in the range of $8.90-$9.10 per share.
Zacks Rank & Stocks to Consider
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have soared 34.8% over the past year.
Some better-ranked stocks from the broader technology sector are CrowdStrike Holdings (CRWD - Free Report) , Amazon.com (AMZN - Free Report) and NVIDIA Corporation (NVDA - Free Report) . CrowdStrike and Amazon each sport a Zacks Rank #1 (Strong Buy) at present, while NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has remained unchanged at $2.94 per share in the past 60 days, suggesting year-over-year growth of 90.9%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 186.9% over the past year.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 39 cents to $4.03 per share in the past 30 days, which calls for an increase of 39% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 71.6% over the past year.
The consensus mark for NVIDIA’s fiscal 2024 earnings has been revised upward by a penny to $12.32 per share over the past 30 days, indicating a whopping 268.9% increase from fiscal 2023. It has a long-term earnings growth expectation of 13.5%. In the trailing 12 months, NVDA stock has surged 220.9%.
Research Chief 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.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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