NYSE$TYL

Tyler Technologies Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Revenues grew double-digits and bookings rose 40%.

Tyler Technologies reported a solid first quarter with revenues growing double-digits and bookings rising nearly 40%. The company's recurring revenues made up nearly 71% of total revenues. Cash flow for the quarter was robust, with cash from operations more than doubling and free cash flow quadrupling last year's first quarter.

  • Total revenues were $276.5 million, up 11.9% from the first quarter of 2019.
  • Recurring revenues from maintenance and subscriptions were $196.1 million, an increase of 17.1% compared to the first quarter of 2019.
  • Net income was $47.6 million, or $1.16 per diluted share, up 73.9% compared to the first quarter of 2019.
  • Total bookings were $319 million, up 39.8% compared to the first quarter of 2019.

Headline financials

Total Revenue

$277M

Previous: $247M+11.9%
EPS (adj)

$1.25

Previous: $1.22+2.5%
Capital Expenditures

-$9.35M

Previous: -$12.3M+24.1%
Free Cash Flow

$38.2M

Previous: $15M+154.2%
Net Income

$47.6M

Previous: $27.3M+73.9%
Operating Income

$33.9M

Previous: $34.5M-1.7%
Gross Profit

$129M

Previous: $116M+11.3%
Cash & Equivalents

$302M

Previous: $39.4M+665.7%
Total Assets

$2.22B

Previous: $1.91B+16.2%
Stock-Based Comp

$17.3M

Previous: $14.4M+20.0%

Revenue & EPS history

Tyler · Revenue · Quarterly

$277M

Q1 2020+11.9%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Tyler · $219M total across 4 segments · Q1 2020

  • Maintenance
    $114M+14.2%
  • Subscriptions
    $81.7M+21.5%
  • Software licenses and royalties
    $18.7M-14.0%
  • Hardware and other
    $3.82M-8.8%

Forward guidance

We anticipate a greater impact from COVID-19 in the second and third quarters. As a result, we are suspending guidance until we have more clarity around the ultimate severity, duration and impact of the pandemic. We currently expect to have greater clarity by the time we report our second quarter results.

Tailwinds

  • Recurring revenues, which comprise approximately 70% of our total revenues, will not be significantly affected.
  • We expect to continue to invest in product development and accelerating our move to the cloud at levels consistent with our initial plans for the year.
  • We value the experience and expertise of our employees and do not expect to eliminate any positions.
  • Tyler's mission-critical software and services power essential functions of government, and the fundamental demand for our products will remain strong in the long term.
  • Technology is an increasingly critical factor in helping government function effectively, especially during this time.

Headwinds

  • We have not seen meaningful cancellations, but continue to see delays in procurement processes and lengthening sales cycles, as public sector entities focus on issues related to the pandemic.
  • Many of our clients will face near-term budget pressures.
  • We can deliver the majority of our professional services remotely, but expect to continue to see lower services revenues as some projects are delayed by client availability and billable travel is reduced.
  • Approximately $6 million of revenues classified as "hardware and other revenues" will be also eliminated in the second quarter as a result of the cancellation of our Connect conference.
  • Incremental hiring will be reduced somewhat from our original plans.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.4%

Avg return

Earnings day

+0.6%

Avg return

5 days after

-0.1%

Avg return

30 days after

63%

41 / 65 earnings

Positive

+13.1%

Q3 2010

Best reaction

-15.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-7.9%-12.3%
Q4 2025-15.4%-7.9%+3.1%
Q3 2025+0.0%-1.7%-1.8%
Q1 2025-6.8%-6.2%-0.6%
Q4 2024+6.0%+4.9%-7.7%
Q3 2024+4.4%+3.3%+4.0%
Q2 2024+7.2%+9.6%+8.6%
Q1 2024+9.5%+11.2%+17.6%
Q4 2023+2.2%+2.1%-3.6%
Q3 2023+8.8%+10.7%+10.9%
Q2 2023-6.1%-2.8%-7.2%
Q1 2023+6.1%+4.9%+8.1%
Q4 2022+4.0%+5.3%+0.1%
Q3 2022-3.6%-6.6%-4.4%
Q2 2022+11.0%+11.8%+5.4%
Q1 2022+7.6%+5.2%-3.3%
Q4 2021-10.2%-13.8%-8.6%
Q3 2021+1.3%+2.1%-5.4%
Q2 2021-0.3%-0.2%-3.4%
Q1 2021-4.6%-4.1%-9.8%
Q4 2020+10.1%+12.2%-2.7%
Q3 2020+3.7%+6.4%+6.4%
Q2 2020+0.8%+4.8%-2.8%
Q1 2020+2.8%+0.9%+20.3%
Q4 2019-0.3%+0.9%-14.4%
Q3 2019+1.6%+2.1%+9.8%
Q2 2019+5.8%+3.4%+10.0%
Q1 2019-6.8%-4.2%-8.0%
Q4 2018-3.3%-4.8%-7.8%
Q3 2018-6.3%-9.7%-7.4%
Q2 2018-2.9%-5.6%+1.6%
Q1 2018-0.2%+1.0%+5.3%
Q4 2017-2.8%-0.9%-0.1%
Q3 2017+2.6%-0.4%-0.2%
Q2 2017-6.1%-5.1%-5.9%
Q1 2017+3.1%+1.2%+5.4%
Q4 2016+9.2%+5.9%+5.7%
Q3 2016-2.7%-3.1%-7.2%
Q2 2016-0.5%-1.8%-0.6%
Q1 2016+1.7%
Q4 2015-12.4%
Q3 2015+2.7%
Q2 2015-2.8%
Q1 2015+2.4%
Q4 2014+3.7%
Q3 2014+11.2%
Q2 2014+11.8%
Q1 2014-3.6%
Q4 2013-8.6%
Q3 2013+8.7%
Q2 2013+2.5%
Q1 2013+6.0%
Q4 2012+2.1%
Q3 2012+11.4%
Q2 2012-3.6%
Q1 2011+0.6%
Q1 2012+1.9%
Q4 2009+5.8%
Q4 2011+5.8%
Q3 2011+13.1%
Q3 2010+13.1%
Q2 2011+0.4%
Q2 2010+0.4%
Q4 2010+0.4%
Q1 2010-10.3%

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