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Tyler Q3 Earnings Beat: Will Upbeat Guidance Lift the Stock?
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Tyler Technologies, Inc. (TYL - Free Report) reported third-quarter 2024 non-GAAP earnings of $2.52 per share, which beat the Zacks Consensus Estimate of $2.44. The bottom line was higher than the year-ago quarter’s earnings of $2.14.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Non-GAAP revenues increased 9.8% year over year to $543.3 million. However, the top line missed the Zacks Consensus Estimate of $546.4 million.
The year-over-year improvement in the top line was primarily due to a rise in subscription revenues. During the second quarter, software subscription arrangements comprised approximately 97% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Buoyed by strong bottom-line performance, Tyler raised its earnings guidance range for the full year. The better-than-expected earnings performance, along with upbeat guidance, can give a fresh boost to Tyler’s share price. Year to date, TYL shares have soared 39.2%, outperforming the Zacks Business – Software Services industry’s return of 17.2%.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler’s recurring revenues from maintenance and subscriptions increased 12.1% year over year to $462.8 million and accounted for 83.4% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.85 billion, up 12.1% year over year.
Segment-wise, Maintenance revenues (accounting for 21.3% of total revenues) were $115.6 million, down from $117.5 million reported in the year-ago quarter. Our model estimate for Maintenance revenues was pegged at $109 million.
Subscription revenues (63.9% of total revenues) grew 17.6% year over year to $347.2 million, while our model estimate for the same was pinned at $349.7 million. On an organic basis, Subscription revenues soared 17.3% year over year.
Software licenses and royalties (1.1% of total revenues) of $6.2 million fell year over year by 41.4%. Our model predicted Software licenses and royalties’ sales to decrease 4.8% to $10.1 million.
Professional Services revenues (11.9% of total revenues) amounted to $64.5 million, up 5.5% from the year-ago quarter. Our model estimate for the same was pegged at $65.7 million.
Hardware and other revenues (1.8% of total revenues) were down 3.9% from the year-ago quarter to $10.3 million. Our model estimate for Hardware and other revenues was pegged at $10 million.
Tyler’s Operating Details
Tyler Technologies’ non-GAAP gross profit increased 5.7% year over year to $254.7 million. The non-GAAP gross margin declined 180 basis points (bps) to 46.9%.
Adjusted EBITDA increased 15% year over year to $152.4 million.
Non-GAAP operating income for the quarter totaled $137.8 million and jumped 12.4% year over year. The non-GAAP operating margin expanded 60 bps to 25.4%.
TYL’s Balance Sheet & Other Details
As of Sept. 30, 2024, TYL’s cash and cash equivalents were $538.3 million compared with $250.7 million as of June 30, 2024.
The company generated an operating cash flow of $263.7 million and a free cash flow of $252.9 million in the third quarter of 2024.
Tyler’s Revised FY24 Guidance
Tyler Technologies revised its guidance for 2024. The company now expects revenues in the range of $2.125-$2.145 billion compared with the previous guidance of $2.12-$2.15 billion. TYL projects its adjusted earnings per share in the range of $9.47-$9.62 compared with the previous guidance of $9.25-$9.45.
TYL’s Zacks Rank & Stocks to Consider
Tyler Technologies currently carries a Zacks Rank #3 (Hold).
The consensus mark for CyberArk’s 2024 earnings has been revised upward by 2 cents to $2.29 per share over the past 60 days, indicating a 104.5% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 33.4%. The stock of CYBR has soared 37.3% in the year-to-date period.
The Zacks Consensus Estimate for FFIV’s fiscal 2024 earnings has been revised downward by a penny to $13.15 per share in the past seven days, suggesting a year-over-year increase of 12.4%. It has a long-term earnings growth expectation of 7.8%. Shares of FFIV have increased 20.4% in the year-to-date period.
The Zacks Consensus Estimate for Fortinet’s 2024 earnings has been revised upward by a penny to $2.01 per share in the past 60 days, indicating an increase of 23.31% on a year-over-year basis. It has a long-term earnings growth expectation of 16.3%. Shares of FTNT have jumped 37.3% in the year-to-date period.
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Tyler Q3 Earnings Beat: Will Upbeat Guidance Lift the Stock?
Tyler Technologies, Inc. (TYL - Free Report) reported third-quarter 2024 non-GAAP earnings of $2.52 per share, which beat the Zacks Consensus Estimate of $2.44. The bottom line was higher than the year-ago quarter’s earnings of $2.14.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Non-GAAP revenues increased 9.8% year over year to $543.3 million. However, the top line missed the Zacks Consensus Estimate of $546.4 million.
The year-over-year improvement in the top line was primarily due to a rise in subscription revenues. During the second quarter, software subscription arrangements comprised approximately 97% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Buoyed by strong bottom-line performance, Tyler raised its earnings guidance range for the full year. The better-than-expected earnings performance, along with upbeat guidance, can give a fresh boost to Tyler’s share price. Year to date, TYL shares have soared 39.2%, outperforming the Zacks Business – Software Services industry’s return of 17.2%.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Quarterly Details of Tyler
Tyler’s recurring revenues from maintenance and subscriptions increased 12.1% year over year to $462.8 million and accounted for 83.4% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.85 billion, up 12.1% year over year.
Segment-wise, Maintenance revenues (accounting for 21.3% of total revenues) were $115.6 million, down from $117.5 million reported in the year-ago quarter. Our model estimate for Maintenance revenues was pegged at $109 million.
Subscription revenues (63.9% of total revenues) grew 17.6% year over year to $347.2 million, while our model estimate for the same was pinned at $349.7 million. On an organic basis, Subscription revenues soared 17.3% year over year.
Software licenses and royalties (1.1% of total revenues) of $6.2 million fell year over year by 41.4%. Our model predicted Software licenses and royalties’ sales to decrease 4.8% to $10.1 million.
Professional Services revenues (11.9% of total revenues) amounted to $64.5 million, up 5.5% from the year-ago quarter. Our model estimate for the same was pegged at $65.7 million.
Hardware and other revenues (1.8% of total revenues) were down 3.9% from the year-ago quarter to $10.3 million. Our model estimate for Hardware and other revenues was pegged at $10 million.
Tyler’s Operating Details
Tyler Technologies’ non-GAAP gross profit increased 5.7% year over year to $254.7 million. The non-GAAP gross margin declined 180 basis points (bps) to 46.9%.
Adjusted EBITDA increased 15% year over year to $152.4 million.
Non-GAAP operating income for the quarter totaled $137.8 million and jumped 12.4% year over year. The non-GAAP operating margin expanded 60 bps to 25.4%.
TYL’s Balance Sheet & Other Details
As of Sept. 30, 2024, TYL’s cash and cash equivalents were $538.3 million compared with $250.7 million as of June 30, 2024.
The company generated an operating cash flow of $263.7 million and a free cash flow of $252.9 million in the third quarter of 2024.
Tyler’s Revised FY24 Guidance
Tyler Technologies revised its guidance for 2024. The company now expects revenues in the range of $2.125-$2.145 billion compared with the previous guidance of $2.12-$2.15 billion. TYL projects its adjusted earnings per share in the range of $9.47-$9.62 compared with the previous guidance of $9.25-$9.45.
TYL’s Zacks Rank & Stocks to Consider
Tyler Technologies currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are CyberArk Software (CYBR - Free Report) , F5 Inc (FFIV - Free Report) and Fortinet (FTNT - 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.
The consensus mark for CyberArk’s 2024 earnings has been revised upward by 2 cents to $2.29 per share over the past 60 days, indicating a 104.5% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 33.4%. The stock of CYBR has soared 37.3% in the year-to-date period.
The Zacks Consensus Estimate for FFIV’s fiscal 2024 earnings has been revised downward by a penny to $13.15 per share in the past seven days, suggesting a year-over-year increase of 12.4%. It has a long-term earnings growth expectation of 7.8%. Shares of FFIV have increased 20.4% in the year-to-date period.
The Zacks Consensus Estimate for Fortinet’s 2024 earnings has been revised upward by a penny to $2.01 per share in the past 60 days, indicating an increase of 23.31% on a year-over-year basis. It has a long-term earnings growth expectation of 16.3%. Shares of FTNT have jumped 37.3% in the year-to-date period.