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Tyler (TYL) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
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Tyler Technologies (TYL - Free Report) reported first-quarter 2021 non-GAAP earnings of $1.43 per share, which beat the Zacks Consensus Estimate by 9.2%. Moreover, the bottom line increased 16.5% from the year-ago reported figure.
Revenues on a non-GAAP basis increased 6.5% year on year to $294.8 million, beating the consensus mark by 2.3%.
Notably, recurring revenues from maintenance and subscriptions increased 13% year over year to $221.6 million and accounted for 75.2% of total revenues.
During the quarter, Tyler completed the acquisitions of electronic management of veterans' claims provider, DataSpec, and cloud-based school scheduling platform, ReadySub.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Segment-wise, Maintenance revenues (accounting for 40.4% of total revenues) came in at $119.1 million, up 4.1% year over year.
Subscription revenues (34.8% of total revenues) climbed 25.5% year over year to $102.5 million.
Software licenses and royalties (5.1% of total revenues) of $14.9 million slid 20.3% on a year-over-year basis.
Software Services revenues (16.1% of total revenues) of $47.6 million dropped 8.6% from the year-ago quarter.
Appraisal services revenues (2.2% of total revenues) rose 12% from the prior-year quarter to $6.5 million.
Hardware and other revenues (1.4% of total revenues) rose 10.5% from the year-ago quarter to $4.2 million.
Backlog at quarter-end was $1.55 billion, up 3% year over year. Of this, software-related backlog (excluding appraisal services) increased 2.9% from a year ago to $1.50 billion.
Bookings declined 22.8% year on year to $247 million because of more than usual large contracts signed in the prior-year quarter, including two SaaS contracts with the North Carolina Administrative Office of the Courts.
Operating Details
Tyler’s non-GAAP gross profit decreased to $157.2 million from the year-earlier quarter’s $141.6 million. However, non-GAAP gross margin expanded 210 basis points (bps) to 53.3%.
Adjusted EBITDA was $85.7 million, up 17.1% year over year.
The company’s non-GAAP operating income increased 18% year over year to $78.9 million. Its operating margin advanced 270 bps to 26.8%.
Balance Sheet and Cash Flow
As of Mar 31, 2021, cash and cash equivalents were $1.25 billion compared with $603.6 million on Dec 31, 2020.
The company generated an operating cash flow of $71.7 million during the first quarter, up 26.4% year over year.
Free cash flow was $61.7 million for the first quarter.
View
Tyler reiterated its full-year revenue guidance in the range of $1.119-$1.22 billion. Moreover, non-GAAP earnings guidance is projected within $5.65-$5.77 per share.
Long-term earnings growth rate for Lam Research, Micron and LG Display is currently projected at 32.8%, 15.7%, and 29.8%, 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.
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Tyler (TYL) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Tyler Technologies (TYL - Free Report) reported first-quarter 2021 non-GAAP earnings of $1.43 per share, which beat the Zacks Consensus Estimate by 9.2%. Moreover, the bottom line increased 16.5% from the year-ago reported figure.
Revenues on a non-GAAP basis increased 6.5% year on year to $294.8 million, beating the consensus mark by 2.3%.
Notably, recurring revenues from maintenance and subscriptions increased 13% year over year to $221.6 million and accounted for 75.2% of total revenues.
During the quarter, Tyler completed the acquisitions of electronic management of veterans' claims provider, DataSpec, and cloud-based school scheduling platform, ReadySub.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Q1 Results in Detail
Segment-wise, Maintenance revenues (accounting for 40.4% of total revenues) came in at $119.1 million, up 4.1% year over year.
Subscription revenues (34.8% of total revenues) climbed 25.5% year over year to $102.5 million.
Software licenses and royalties (5.1% of total revenues) of $14.9 million slid 20.3% on a year-over-year basis.
Software Services revenues (16.1% of total revenues) of $47.6 million dropped 8.6% from the year-ago quarter.
Appraisal services revenues (2.2% of total revenues) rose 12% from the prior-year quarter to $6.5 million.
Hardware and other revenues (1.4% of total revenues) rose 10.5% from the year-ago quarter to $4.2 million.
Backlog at quarter-end was $1.55 billion, up 3% year over year. Of this, software-related backlog (excluding appraisal services) increased 2.9% from a year ago to $1.50 billion.
Bookings declined 22.8% year on year to $247 million because of more than usual large contracts signed in the prior-year quarter, including two SaaS contracts with the North Carolina Administrative Office of the Courts.
Operating Details
Tyler’s non-GAAP gross profit decreased to $157.2 million from the year-earlier quarter’s $141.6 million. However, non-GAAP gross margin expanded 210 basis points (bps) to 53.3%.
Adjusted EBITDA was $85.7 million, up 17.1% year over year.
The company’s non-GAAP operating income increased 18% year over year to $78.9 million. Its operating margin advanced 270 bps to 26.8%.
Balance Sheet and Cash Flow
As of Mar 31, 2021, cash and cash equivalents were $1.25 billion compared with $603.6 million on Dec 31, 2020.
The company generated an operating cash flow of $71.7 million during the first quarter, up 26.4% year over year.
Free cash flow was $61.7 million for the first quarter.
View
Tyler reiterated its full-year revenue guidance in the range of $1.119-$1.22 billion. Moreover, non-GAAP earnings guidance is projected within $5.65-$5.77 per share.
Zacks Rank & Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , Micron Technology, Inc. (MU - Free Report) and LG Display Co., Ltd. (LPL - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Lam Research, Micron and LG Display is currently projected at 32.8%, 15.7%, and 29.8%, 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>>