NYSE$TYL

Tyler Technologies Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong results driven by 23% growth in SaaS revenues.

Tyler Technologies reported a positive second quarter in 2024, marked by a 7.3% increase in total revenues, with SaaS revenues growing by 23.2%. The company's operating income and net income also saw significant increases, and the new business pipeline remains strong.

  • Total revenues increased by 7.3% to $541.0 million.
  • SaaS revenues grew by 23.2%, comprising 97% of new software contract value.
  • GAAP operating income rose by 26.1% to $78.0 million.
  • Free cash flow improved to $48.6 million from negative $33.2 million.

Headline financials

Total Revenue

$541M

Previous: $504M+7.3%
EPS

$1.57

Previous: $2.01-21.9%
Recurring Revenue Ratio

83.0%

No prior period
Annualized Recurring Revenue

$1.8B

No prior period
Free Cash Flow Margin

9.0%

No prior period
Adjusted EBITDA

$143M

No prior period
Capital Expenditures

-$13.9M

Previous: -$6.37M-117.4%
Free Cash Flow

$53.9M

Previous: $42.8M+26.0%
Net Income

$67.7M

Previous: $49.1M+37.9%
Operating Income

$78M

Previous: $61.9M+26.1%
Gross Profit

$238M

Previous: $223M+6.6%
Cash & Equivalents

$251M

Previous: $119M+111.1%
Total Assets

$4.82B

Previous: $4.64B+4.0%
R&D Expense

$29M

No prior period
Stock-Based Comp

$30.4M

Previous: $26M+16.8%

Revenue & EPS history

Tyler · Revenue · Quarterly

$541M

Q2 2024+7.3%vs Q2 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Tyler · $434M total across 4 segments · Q3 2023

  • Subscriptions
    $295M+16.1%
  • Maintenance
    $117M+0.1%
  • Software licenses and royalties
    $10.6M-47.9%
  • Hardware and other
    $10.3M+9.7%

Forward guidance

Tyler Technologies anticipates total revenues between $2.120 billion and $2.150 billion, GAAP diluted earnings per share between $5.76 and $5.96, non-GAAP diluted earnings per share between $9.25 and $9.45, and a free cash flow margin between 18% and 20% for the full year 2024.

Tailwinds

  • Total revenues are expected to be in the range of $2.120 billion to $2.150 billion.
  • GAAP diluted earnings per share are expected to be in the range of $5.76 to $5.96.
  • Non-GAAP diluted earnings per share are expected to be in the range of $9.25 to $9.45.
  • Free cash flow margin is expected to be in the range of 18% to 20%.
  • Research and development expense is expected to be in the range of $122 million to $125 million.

Headwinds

  • Capital expenditures are expected to be in the range of $50 million to $52 million.
  • Capital expenditures include approximately $33 million of capitalized software development costs.
  • GAAP diluted earnings per share may fluctuate due to the impact on our annual effective tax rate of discrete tax items, such as stock incentive awards, future acquisitions, changes in tax legislation, and other transactions.
  • Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.
  • Forward-looking statements are subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements.

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 2024

Historical avgQ2 2024

+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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