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Tyler Technologies (TYL) Down 1.1% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Tyler Technologies (TYL - Free Report) . Shares have lost about 1.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tyler Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Tyler’s Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Tyler Technologies reported fourth-quarter 2021 non-GAAP earnings of $1.75 per share, narrowly beating the Zacks Consensus Estimate of $1.74 per share. The bottom line improved 27.4% from $1.39 per share in the year-ago quarter.
Non-GAAP revenues of Tyler improved by 53.2% year over year to $434.2 million from $283.4 million reported a year ago. The top line surpassed Zacks Consensus Estimate of $432.2 million.
The robust year-over-year top-line growth was primarily driven by post-acquisition contributions of NIC and continuous recovery of market and sales activities to pre-COVID levels. On an organic basis, non-GAAP revenues increased 9.2%.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 63.4% year over year to $347.2 million and accounted for 80.1% of the total quarterly revenues.
The company reported annualized recurring revenues on a non-GAAP basis of $1.39 billion, up 63.7% year over year. Subscription bookings in the fourth quarter added $14.8 million in annual recurring revenues.
Segment-wise, maintenance revenues (accounting for 27.2% of total revenues) were $117.7 million, down 0.6% year over year.
Subscription revenues (52.9% of total revenues) soared 144.1% year over year to $229.5 million.
Software licenses and royalties (4.4% of total revenues) of $19.2 million increased 10.2% on a year-over-year basis.
Software Services revenues (12.4% of total revenues) amounted to $53.8 million, up 26% from the year-ago quarter.
Appraisal services revenues (1.8% of total revenues) rose 50% from the prior-year quarter to $7.9 million.
Hardware and other revenues (1.3% of total revenues) fell 0.9% from the year-ago quarter to $5.4 million.
Backlog at quarter-end was $1.8 billion, up 12.6% year over year.
Bookings surged 39.3% year on year to $464 million, courtesy of post-acquisition activities of NIC and the continuous rebound of market trends to pre-pandemic levels. Excluding NIC’s contribution, bookings increased 4.2% year over year. COVID-related initiatives, as well as NIC’s TourHealth, added $16.6 million to subscriptions revenues and software services revenues.
Operating Details
Tyler’s non-GAAP gross profit increased 36.6% year over year to $207.2 million. However, non-GAAP gross margin contracted 580 basis points (bps) to 47.7%.
Adjusted EBITDA increased by 32.6% year over year to $110.3 million.
Non-GAAP operating income for the quarter totaled $102.5 million, up 34.2% year over year. However, non-GAAP operating margin contracted 330 bps to 23.6%.
Balance Sheet & Other Financial Details
As of Dec 31, 2021, Tyler’s cash and cash equivalents were $309.2 million compared with $234.1 million on Sep 30, 2021.
The company generated $115 million of cash from operational activities. Free cash flow was $95.1 million.
During full-year 2021, Tyler generated operating and free cash flow of $371.8 million and $316.1 million, respectively.
Full-Year Highlights
For full-year 2021, Tyler reported non-GAAP revenues of $1.59 billion, up 42.7% year over year. On an organic basis, non-GAAP revenues increased 8.8%.
The company reported non-GAAP earnings of $7.02 per share, reflecting a year-over-year surge of 29.3%.
Non-GAAP operating income climbed 35.4% to $405.5 million. Adjusted EBITDA was $435.7 million compared with $326 million reported in 2020.
Bookings were $1.8 billion for full-year 2021, indicating a 41.6% growth.
Guidance
Buoyed by solid fourth-quarter performance, Tyler provided a revenue and earnings outlook for the full-year 2022. The company projects revenues between $1.830 billion and $1.870 billion.
Tyler expects non-GAAP earnings to be $7.41-$7.58 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Tyler Technologies has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Tyler Technologies has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Tyler Technologies (TYL) Down 1.1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Tyler Technologies (TYL - Free Report) . Shares have lost about 1.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Tyler Technologies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Tyler’s Q4 Earnings & Revenues Beat Estimates, Up Y/Y
Tyler Technologies reported fourth-quarter 2021 non-GAAP earnings of $1.75 per share, narrowly beating the Zacks Consensus Estimate of $1.74 per share. The bottom line improved 27.4% from $1.39 per share in the year-ago quarter.
Non-GAAP revenues of Tyler improved by 53.2% year over year to $434.2 million from $283.4 million reported a year ago. The top line surpassed Zacks Consensus Estimate of $432.2 million.
The robust year-over-year top-line growth was primarily driven by post-acquisition contributions of NIC and continuous recovery of market and sales activities to pre-COVID levels. On an organic basis, non-GAAP revenues increased 9.2%.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 63.4% year over year to $347.2 million and accounted for 80.1% of the total quarterly revenues.
The company reported annualized recurring revenues on a non-GAAP basis of $1.39 billion, up 63.7% year over year. Subscription bookings in the fourth quarter added $14.8 million in annual recurring revenues.
Segment-wise, maintenance revenues (accounting for 27.2% of total revenues) were $117.7 million, down 0.6% year over year.
Subscription revenues (52.9% of total revenues) soared 144.1% year over year to $229.5 million.
Software licenses and royalties (4.4% of total revenues) of $19.2 million increased 10.2% on a year-over-year basis.
Software Services revenues (12.4% of total revenues) amounted to $53.8 million, up 26% from the year-ago quarter.
Appraisal services revenues (1.8% of total revenues) rose 50% from the prior-year quarter to $7.9 million.
Hardware and other revenues (1.3% of total revenues) fell 0.9% from the year-ago quarter to $5.4 million.
Backlog at quarter-end was $1.8 billion, up 12.6% year over year.
Bookings surged 39.3% year on year to $464 million, courtesy of post-acquisition activities of NIC and the continuous rebound of market trends to pre-pandemic levels. Excluding NIC’s contribution, bookings increased 4.2% year over year. COVID-related initiatives, as well as NIC’s TourHealth, added $16.6 million to subscriptions revenues and software services revenues.
Operating Details
Tyler’s non-GAAP gross profit increased 36.6% year over year to $207.2 million. However, non-GAAP gross margin contracted 580 basis points (bps) to 47.7%.
Adjusted EBITDA increased by 32.6% year over year to $110.3 million.
Non-GAAP operating income for the quarter totaled $102.5 million, up 34.2% year over year. However, non-GAAP operating margin contracted 330 bps to 23.6%.
Balance Sheet & Other Financial Details
As of Dec 31, 2021, Tyler’s cash and cash equivalents were $309.2 million compared with $234.1 million on Sep 30, 2021.
The company generated $115 million of cash from operational activities. Free cash flow was $95.1 million.
During full-year 2021, Tyler generated operating and free cash flow of $371.8 million and $316.1 million, respectively.
Full-Year Highlights
For full-year 2021, Tyler reported non-GAAP revenues of $1.59 billion, up 42.7% year over year. On an organic basis, non-GAAP revenues increased 8.8%.
The company reported non-GAAP earnings of $7.02 per share, reflecting a year-over-year surge of 29.3%.
Non-GAAP operating income climbed 35.4% to $405.5 million. Adjusted EBITDA was $435.7 million compared with $326 million reported in 2020.
Bookings were $1.8 billion for full-year 2021, indicating a 41.6% growth.
Guidance
Buoyed by solid fourth-quarter performance, Tyler provided a revenue and earnings outlook for the full-year 2022. The company projects revenues between $1.830 billion and $1.870 billion.
Tyler expects non-GAAP earnings to be $7.41-$7.58 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Tyler Technologies has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Tyler Technologies has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.