NYSE$TYL

Tyler Technologies Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Tyler Technologies' financial performance was driven by the acquisition of NIC and organic growth in the second quarter of 2021.

Tyler Technologies reported a 49.1% increase in total revenues, reaching $404.1 million, driven by the acquisition of NIC Inc. and organic revenue growth of 12.4%. Non-GAAP EPS was $1.83, up 35.3% compared to the second quarter of 2020. The company is integrating NIC and focusing on cloud optimization.

  • Total revenues increased by 49.1% to $404.1 million, with organic revenue growth of 12.4%.
  • Recurring revenues from maintenance and subscriptions grew by 57.7%, comprising 79.0% of total revenue.
  • Operating income decreased by 7.4% to $38.3 million, while non-GAAP operating income increased by 43.9% to $107.4 million.
  • Subscription bookings added $15.0 million in annual recurring revenue.

Headline financials

Total Revenue

$404M

Previous: $271M+49.1%
EPS (adj)

$1.83

Previous: $1.38+32.6%
Capital Expenditures

-$14.2M

Previous: -$16.3M+12.6%
Free Cash Flow

$11.3M

Previous: $37.6M-69.9%
Net Income

$25.5M

Previous: $53.9M-52.6%
Operating Income

$38.3M

Previous: $41.3M-7.4%
Gross Profit

$182M

Previous: $131M+38.8%
Cash & Equivalents

$217M

Previous: $351M-38.3%
Total Assets

$4.64B

Previous: $2.38B+94.8%
Stock-Based Comp

$25.2M

Previous: $18.4M+36.9%

Revenue & EPS history

Tyler · Revenue · Quarterly

$404M

Q2 2021+49.1%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Tyler · $398M total across 5 segments · Q2 2021

  • Subscriptions
    $200M+133.0%
  • Maintenance
    $120M+2.5%
  • Professional services
    $53.3M+22.2%
  • Software licenses and royalties
    $17.6M+3.4%
  • Hardware and other
    $7.69M+131.8%

Forward guidance

Tyler Technologies provided full year 2021 guidance, including GAAP total revenues expected to be in the range of $1.532 billion to $1.557 billion, and non-GAAP diluted earnings per share expected to be in the range of $6.70 to $6.80.

Tailwinds

  • GAAP total revenues are expected to be in the range of $1.532 billion to $1.557 billion.
  • Non-GAAP total revenues are expected to be in the range of $1.535 billion to $1.560 billion.
  • Non-GAAP diluted earnings per share are expected to be in the range of $6.70 to $6.80.
  • Fully diluted shares for the year are expected to be in the range of 42.0 million to 42.5 million shares.
  • The non-GAAP annual effective tax rate is expected to be 24%.

Headwinds

  • Total revenues are expected to include approximately $32 million of COVID-related revenues from NIC's TourHealth and pandemic unemployment services that are not expected to recur in future years.
  • GAAP diluted earnings per share are expected to be in the range of $3.68 to $3.81 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate.
  • Interest expense is expected to be approximately $23 million, including approximately $11 million of amortization of debt discounts and issuance costs.
  • Pretax non-cash, share-based compensation expense is expected to be approximately $102 million.
  • Capital expenditures are expected to be in the range of $48 million to $50 million.

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 Q2 2021

Historical avgQ2 2021

+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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