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Why Is Tyler Technologies (TYL) Down 13% Since Last Earnings Report?
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It has been about a month since the last earnings report for Tyler Technologies (TYL - Free Report) . Shares have lost about 13% 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 catalysts.
Tyler’s Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Tyler Technologies reported first-quarter 2022 non-GAAP earnings of $1.90 per share, surpassing the Zacks Consensus Estimate of $1.77 per share. The bottom line also improved by 32.9% from $1.43 per share in the year-ago quarter.
GAAP and non-GAAP revenues increased 54.7% year over year to $456.1 million from $294.8 million reported a year ago. The top line surpassed Zacks Consensus Estimate of $435.3 million.
The robust year-over-year top-line growth was primarily driven by the post-acquisition contributions of NIC and the continuous recovery of market and sales activities to pre-pandemic levels. On an organic basis, non-GAAP revenues increased 12.8%.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 63.6% year over year to $362.5 million and accounted for 79.5% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.45 billion, up 63.6% year over year. Subscription bookings in the first quarter added $6 million to annual recurring revenues.
Segment-wise, maintenance revenues (accounting for 25.7% of total revenues) were $117 million, down from $119.1 million in the year-ago quarter.
Subscription revenues (53.8% of total revenues) soared 139.5% year over year to $245.4 million.
Software licenses and royalties (3.6% of total revenues) of $16.5 million increased 10.5% on a year-over-year basis.
Software Services revenues (13.5% of total revenues) amounted to $61.5 million, up 29.1% from the year-ago quarter.
Appraisal services revenues (1.9% of total revenues) rose 31.8% from the prior-year quarter to $8.5 million.
Hardware and other revenues (1.3% of total revenues) jumped 70.5% from the year-ago quarter to $7.1 million.
The backlog at the quarter-end was $1.76 billion, up 13.8% year over year.
Bookings surged 70.1% year over year to $419 million due to the post-acquisition activities of NIC and the continuous rebound of market trends to pre-pandemic levels. Excluding NIC’s contributions, bookings increased 14.7% year over year. In the trailing 12 months, bookings increased 65% year over year to $1.9 billion. Excluding NIC contributions, bookings grew 21.7% to $1.4 billion.
Operating Details
Tyler’s non-GAAP gross profit increased 35.1% year over year to $212.4 million. However, the non-GAAP gross margin contracted by 670 basis points (bps) to 46.6%.
Adjusted EBITDA increased 39.2% year over year to $119.2 million.
Non-GAAP operating income for the quarter totaled $110.8 million, up 40.5% year over year. However, the non-GAAP operating margin contracted by 250 bps to 24.3%.
Balance Sheet & Other Financial Details
As of Mar 31, 2022, Tyler’s cash and cash equivalents were $243.3 million compared with $309.2 million on Dec 31, 2021.
The company generated $53.5 million in cash from operational activities and $41 million of free cash flow.
Guidance
Buoyed by the solid fourth-quarter performance, TYL raised its adjusted earnings guidance range for 2022 to the range of $7.48-$7.64 per share from the $7.41-$7.58 per share band projected earlier.
The company also raised the lower end of the revenue guidance range. It now forecasts to generate GAAP and non-GAAP revenues in the range of $1.835-$1.870 billion, instead of the previous projection of the $1.83-$1.87 billion range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Tyler Technologies has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Tyler Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Tyler Technologies (TYL) Down 13% Since Last Earnings Report?
It has been about a month since the last earnings report for Tyler Technologies (TYL - Free Report) . Shares have lost about 13% 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 catalysts.
Tyler’s Q1 Earnings & Revenues Beat Estimates, Up Y/Y
Tyler Technologies reported first-quarter 2022 non-GAAP earnings of $1.90 per share, surpassing the Zacks Consensus Estimate of $1.77 per share. The bottom line also improved by 32.9% from $1.43 per share in the year-ago quarter.
GAAP and non-GAAP revenues increased 54.7% year over year to $456.1 million from $294.8 million reported a year ago. The top line surpassed Zacks Consensus Estimate of $435.3 million.
The robust year-over-year top-line growth was primarily driven by the post-acquisition contributions of NIC and the continuous recovery of market and sales activities to pre-pandemic levels. On an organic basis, non-GAAP revenues increased 12.8%.
Quarterly Details
Tyler’s recurring revenues from maintenance and subscriptions increased 63.6% year over year to $362.5 million and accounted for 79.5% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.45 billion, up 63.6% year over year. Subscription bookings in the first quarter added $6 million to annual recurring revenues.
Segment-wise, maintenance revenues (accounting for 25.7% of total revenues) were $117 million, down from $119.1 million in the year-ago quarter.
Subscription revenues (53.8% of total revenues) soared 139.5% year over year to $245.4 million.
Software licenses and royalties (3.6% of total revenues) of $16.5 million increased 10.5% on a year-over-year basis.
Software Services revenues (13.5% of total revenues) amounted to $61.5 million, up 29.1% from the year-ago quarter.
Appraisal services revenues (1.9% of total revenues) rose 31.8% from the prior-year quarter to $8.5 million.
Hardware and other revenues (1.3% of total revenues) jumped 70.5% from the year-ago quarter to $7.1 million.
The backlog at the quarter-end was $1.76 billion, up 13.8% year over year.
Bookings surged 70.1% year over year to $419 million due to the post-acquisition activities of NIC and the continuous rebound of market trends to pre-pandemic levels. Excluding NIC’s contributions, bookings increased 14.7% year over year. In the trailing 12 months, bookings increased 65% year over year to $1.9 billion. Excluding NIC contributions, bookings grew 21.7% to $1.4 billion.
Operating Details
Tyler’s non-GAAP gross profit increased 35.1% year over year to $212.4 million. However, the non-GAAP gross margin contracted by 670 basis points (bps) to 46.6%.
Adjusted EBITDA increased 39.2% year over year to $119.2 million.
Non-GAAP operating income for the quarter totaled $110.8 million, up 40.5% year over year. However, the non-GAAP operating margin contracted by 250 bps to 24.3%.
Balance Sheet & Other Financial Details
As of Mar 31, 2022, Tyler’s cash and cash equivalents were $243.3 million compared with $309.2 million on Dec 31, 2021.
The company generated $53.5 million in cash from operational activities and $41 million of free cash flow.
Guidance
Buoyed by the solid fourth-quarter performance, TYL raised its adjusted earnings guidance range for 2022 to the range of $7.48-$7.64 per share from the $7.41-$7.58 per share band projected earlier.
The company also raised the lower end of the revenue guidance range. It now forecasts to generate GAAP and non-GAAP revenues in the range of $1.835-$1.870 billion, instead of the previous projection of the $1.83-$1.87 billion range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Tyler Technologies has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Tyler Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.