We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tyler's (TYL) Q2 Earnings Beat, Revenues Miss Estimates
Read MoreHide Full Article
Tyler Technologies (TYL - Free Report) reported second-quarter 2020 non-GAAP earnings of $1.38 per share, which surpassed the Zacks Consensus Estimate of $1.16. Moreover, the bottom line increased 6.2% from the year-ago quarter.
Revenues on a non-GAAP basis declined 2.4% year over year to $271.3 million, missing the consensus mark of $280.2 million. Tyler recorded a 1.9% year-over-year decline in organic revenues.
Recurring revenues increased 12.3% year over year to $202.4 million and accounted for 74.7% of total revenues.
Q2 Results in Detail
Segment wise, Maintenance revenues (43.1% of total revenues) were $116.8 million, up 9.4% year over year.
Subscription revenues (31.6% of total revenues) climbed 16.6% year over year to $85.6 million.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Software subscription arrangements comprised roughly 43% of the total new software contract value in the reported quarter compared with the year-ago quarter’s 80%.
Software licenses and royalties (6.3% of total revenues) of $17 million slid 17.7% on a year-over-year basis.
Software Services revenues (16.1% of total revenues) of $43.7 million dropped 23.9% from the year-ago quarter.
Appraisal services revenues (1.7% of total revenues) slipped 24.7% to $4.7 million.
Hardware and other revenues (1.2% of total revenues) plummeted 68.8% to $3.3 million.
Backlog at the end of the quarter was $1.54 billion, up 7.4% year over year. Of this, software-related backlog increased 8% to $1.51 billion.
Bookings plunged 31.6% year over year to $309 million. Subscription bookings added $9.2 million in annual recurring revenues.
Operating Details
Tyler’s non-GAAP gross profit increased to $143.8 million from the year-earlier quarter’s $142.5 million. Non-GAAP gross margin also expanded180 basis points (bps) to 53%.
Adjusted EBITDA was $80.7 million, up 8.2% year over year.
Selling, general and administrative (SG&A) expenses, as percentage of revenues, shrunk 80 bps year over year to 23.1%. However, research and development (R&D) expenses, as percentage of revenues, expanded 80 bps to 8.1%.
The company’s non-GAAP operating income increased 9.1% year over year to $74.6 million. Its operating margin expended 290 bps to 27.5%.
Balance Sheet and Cash Flow
As of Mar 31, 2020, cash and cash equivalents were $351.3 million compared with $302 million as of Mar 31, 2020.
Cash flow from operations was $39.8 million, up 62.5% year over year.
Guidance
Tyler expects the pandemic to adversely impact its business during second-half of 2020. The company continues to see delays in procurement processes and lengthening sales cycles, as public sector entities focus on issues related to the pandemic.
For 2020, the company projects revenues between $1.125 billion and $1.145 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $1.15 billion. The company’s non-GAAP earnings guidance range $5.30-$5.50 per share is higher than the consensus mark of $5.19.
The long-term earnings growth rate for Dropbox, Zoom and Shopify is currently pegged at 32.5%, 25%, and 34%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Tyler's (TYL) Q2 Earnings Beat, Revenues Miss Estimates
Tyler Technologies (TYL - Free Report) reported second-quarter 2020 non-GAAP earnings of $1.38 per share, which surpassed the Zacks Consensus Estimate of $1.16. Moreover, the bottom line increased 6.2% from the year-ago quarter.
Revenues on a non-GAAP basis declined 2.4% year over year to $271.3 million, missing the consensus mark of $280.2 million. Tyler recorded a 1.9% year-over-year decline in organic revenues.
Recurring revenues increased 12.3% year over year to $202.4 million and accounted for 74.7% of total revenues.
Q2 Results in Detail
Segment wise, Maintenance revenues (43.1% of total revenues) were $116.8 million, up 9.4% year over year.
Subscription revenues (31.6% of total revenues) climbed 16.6% year over year to $85.6 million.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Software subscription arrangements comprised roughly 43% of the total new software contract value in the reported quarter compared with the year-ago quarter’s 80%.
Software licenses and royalties (6.3% of total revenues) of $17 million slid 17.7% on a year-over-year basis.
Software Services revenues (16.1% of total revenues) of $43.7 million dropped 23.9% from the year-ago quarter.
Appraisal services revenues (1.7% of total revenues) slipped 24.7% to $4.7 million.
Hardware and other revenues (1.2% of total revenues) plummeted 68.8% to $3.3 million.
Backlog at the end of the quarter was $1.54 billion, up 7.4% year over year. Of this, software-related backlog increased 8% to $1.51 billion.
Bookings plunged 31.6% year over year to $309 million. Subscription bookings added $9.2 million in annual recurring revenues.
Operating Details
Tyler’s non-GAAP gross profit increased to $143.8 million from the year-earlier quarter’s $142.5 million. Non-GAAP gross margin also expanded180 basis points (bps) to 53%.
Adjusted EBITDA was $80.7 million, up 8.2% year over year.
Selling, general and administrative (SG&A) expenses, as percentage of revenues, shrunk 80 bps year over year to 23.1%. However, research and development (R&D) expenses, as percentage of revenues, expanded 80 bps to 8.1%.
The company’s non-GAAP operating income increased 9.1% year over year to $74.6 million. Its operating margin expended 290 bps to 27.5%.
Balance Sheet and Cash Flow
As of Mar 31, 2020, cash and cash equivalents were $351.3 million compared with $302 million as of Mar 31, 2020.
Cash flow from operations was $39.8 million, up 62.5% year over year.
Guidance
Tyler expects the pandemic to adversely impact its business during second-half of 2020. The company continues to see delays in procurement processes and lengthening sales cycles, as public sector entities focus on issues related to the pandemic.
For 2020, the company projects revenues between $1.125 billion and $1.145 billion. The Zacks Consensus Estimate for full-year revenues is pegged at $1.15 billion. The company’s non-GAAP earnings guidance range $5.30-$5.50 per share is higher than the consensus mark of $5.19.
Zacks Rank and Key Picks
Currently, Tyler carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include Dropbox (DBX - Free Report) , Zoom Video Communications (ZM - Free Report) and Shopify (SHOP - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Dropbox, Zoom and Shopify is currently pegged at 32.5%, 25%, and 34%, respectively.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>