NYSE$TYL

Tyler Technologies Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Tyler Technologies reported strong first-quarter results, meeting or exceeding expectations for most key metrics, with SaaS comprising 87% of new software contract value and robust free cash flow.

Tyler Technologies reported a 3.5% increase in total revenue, reaching $471.9 million. Organic revenue growth was 7.2%. GAAP net income was $30.9 million, or $0.73 per diluted share, while non-GAAP net income was $74.7 million, or $1.76 per diluted share. The company's SaaS revenues grew by 24.4%.

  • Total revenues increased by 3.5% year-over-year to $471.9 million.
  • SaaS revenues grew organically by 24.4%.
  • GAAP operating income decreased by 19.5% year-over-year to $45.0 million.
  • Free cash flow increased by 55.1% year-over-year to $63.6 million.

Headline financials

Total Revenue

$472M

Previous: $456M+3.5%
EPS (adj)

$1.76

Previous: $1.90-7.4%
Capital Expenditures

-$2.02M

Previous: -$4.58M+55.9%
Free Cash Flow

$28.9M

Previous: $35.4M-18.5%
Net Income

$30.9M

Previous: $40M-22.8%
Operating Income

$45M

Previous: $55.9M-19.5%
Gross Profit

$200M

Previous: $192M+3.9%
Cash & Equivalents

$131M

Previous: $243M-46.2%
Total Assets

$4.56B

Previous: $4.72B-3.6%
Stock-Based Comp

$27.9M

Previous: $25.3M+10.4%

Revenue & EPS history

Tyler · Revenue · Quarterly

$472M

Q1 2023+3.5%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Tyler · $411M total across 4 segments · Q1 2023

  • Subscriptions
    $280M+14.3%
  • Maintenance
    $115M-1.6%
  • Software licenses and royalties
    $10.1M-38.6%
  • Hardware and other
    $5.2M-26.9%

Forward guidance

Tyler Technologies provided guidance for the full year 2023.

Tailwinds

  • Total revenues are expected to be in the range of $1.935 billion to $1.970 billion.
  • Non-GAAP diluted earnings per share are expected to be in the range of $7.50 to $7.65.
  • Research and development expense is expected to be in the range of $108 million to $110 million.
  • Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
  • The non-GAAP annual effective tax rate is expected to be 22.0%.

Headwinds

  • GAAP diluted earnings per share are expected to be in the range of $3.65 to $3.80 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
  • Interest expense is expected to be approximately $26 million, including approximately $5 million of non-cash amortization of debt discounts and issuance costs.
  • Pretax non-cash, share-based compensation expense is expected to be approximately $109 million.
  • Capital expenditures are expected to be in the range of $63 million to $65 million, including approximately $37 million of capitalized software development costs.
  • Total depreciation and amortization expense is expected to be approximately $149 million, including approximately $109 million from amortization of acquisition intangibles.

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 2023

Historical avgQ1 2023

+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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