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 (TYL) Q3 Earnings & Revenues Surpass Estimates, Up Y/Y
Read MoreHide Full Article
Tyler Technologies (TYL - Free Report) reported third-quarter 2020 non-GAAP earnings of $1.50 per share, which surpassed the Zacks Consensus Estimate of $1.34. Moreover, the bottom line increased 11.1% from the year-ago quarter’s reported tally.
Revenues on a non-GAAP basis increased 3.2% year on year to $285.9 million, beating the consensus mark of $284.9 million. Tyler recorded 3.3% year-over-year growth in organic revenues.
Recurring revenues increased 12% year over year to $207.3 million and accounted for 72.5% of total revenues.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Segment wise, Maintenance revenues (41.3% of total revenues) came in at $118 million, up 7.4% year over year.
Subscription revenues (31.2% of total revenues) climbed 18.6% year over year to $89.3 million.
Software licenses and royalties (7% of total revenues) of $19.9 million slid 21.4% on a year-over-year basis.
Software Services revenues (16.8% of total revenues) of $43.7 million dropped 12.8% from the year-ago quarter.
Appraisal services revenues (1.9% of total revenues) slipped 10.2% to $5.4 million.
Hardware and other revenues (1.8% of total revenues) jumped 33% to $5.2 million.
Backlog at the end of the quarter was $1.55 billion, up 9.2% year over year. Of this, software-related backlog (excluding appraisal services) increased 9.5% to $1.38 billion.
Bookings grew 12.9% year on year to $292 million. Subscription bookings added $9.9 million in annual recurring revenues.
Operating Details
Tyler’s non-GAAP gross profit increased to $156.2 million from the year-earlier quarter’s $144.1 million. Non-GAAP gross margin also expanded 260 basis points (bps) to 54.6%.
Adjusted EBITDA was $88.9 million, up 15.4% year over year.
Selling, general and administrative (SG&A) expenses, as percentage of revenues, expanded 20 bps year over year to 23.4%. However, research and development (R&D) expenses, as percentage of revenues, contracted 10 bps to 7.6%.
The company’s non-GAAP operating income increased 15.2% year over year to $81.8 million. Its operating margin advanced 300 bps to 28.6%.
Balance Sheet and Cash Flow
As of Sep 30, 2020, cash and cash equivalents were $518.7 million compared with $351.3 million as of Jun 30, 2020.
The company generated an operating cash flow of $169.8 million during the third quarter and $266.3 million in the first nine months of 2020.
Updated Full-Year Outlook
Tyler lowered its full-year revenue guidance to $1.118-$1.130 billion from the $1.125-$1.145 billion projected earlier. However, it raised the non-GAAP earnings outlook to $5.48-$5.58 per share from the $5.30-$5.50 per share estimated previously.
The long-term earnings growth rate for NVIDIA, Paylocity and Covetrus is currently pegged at 20.1%, 20%, and 31.6%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Tyler (TYL) Q3 Earnings & Revenues Surpass Estimates, Up Y/Y
Tyler Technologies (TYL - Free Report) reported third-quarter 2020 non-GAAP earnings of $1.50 per share, which surpassed the Zacks Consensus Estimate of $1.34. Moreover, the bottom line increased 11.1% from the year-ago quarter’s reported tally.
Revenues on a non-GAAP basis increased 3.2% year on year to $285.9 million, beating the consensus mark of $284.9 million. Tyler recorded 3.3% year-over-year growth in organic revenues.
Recurring revenues increased 12% year over year to $207.3 million and accounted for 72.5% of total revenues.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Q3 Results in Detail
Segment wise, Maintenance revenues (41.3% of total revenues) came in at $118 million, up 7.4% year over year.
Subscription revenues (31.2% of total revenues) climbed 18.6% year over year to $89.3 million.
Software licenses and royalties (7% of total revenues) of $19.9 million slid 21.4% on a year-over-year basis.
Software Services revenues (16.8% of total revenues) of $43.7 million dropped 12.8% from the year-ago quarter.
Appraisal services revenues (1.9% of total revenues) slipped 10.2% to $5.4 million.
Hardware and other revenues (1.8% of total revenues) jumped 33% to $5.2 million.
Backlog at the end of the quarter was $1.55 billion, up 9.2% year over year. Of this, software-related backlog (excluding appraisal services) increased 9.5% to $1.38 billion.
Bookings grew 12.9% year on year to $292 million. Subscription bookings added $9.9 million in annual recurring revenues.
Operating Details
Tyler’s non-GAAP gross profit increased to $156.2 million from the year-earlier quarter’s $144.1 million. Non-GAAP gross margin also expanded 260 basis points (bps) to 54.6%.
Adjusted EBITDA was $88.9 million, up 15.4% year over year.
Selling, general and administrative (SG&A) expenses, as percentage of revenues, expanded 20 bps year over year to 23.4%. However, research and development (R&D) expenses, as percentage of revenues, contracted 10 bps to 7.6%.
The company’s non-GAAP operating income increased 15.2% year over year to $81.8 million. Its operating margin advanced 300 bps to 28.6%.
Balance Sheet and Cash Flow
As of Sep 30, 2020, cash and cash equivalents were $518.7 million compared with $351.3 million as of Jun 30, 2020.
The company generated an operating cash flow of $169.8 million during the third quarter and $266.3 million in the first nine months of 2020.
Updated Full-Year Outlook
Tyler lowered its full-year revenue guidance to $1.118-$1.130 billion from the $1.125-$1.145 billion projected earlier. However, it raised the non-GAAP earnings outlook to $5.48-$5.58 per share from the $5.30-$5.50 per share estimated previously.
Zacks Rank & Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector include NVIDIA Corporation (NVDA - Free Report) , Paylocity Holding Corporation (PCTY - Free Report) and Covetrus, Inc. , 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 NVIDIA, Paylocity and Covetrus is currently pegged at 20.1%, 20%, and 31.6%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>