NYSE$TYL

Tyler Technologies Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Tyler Technologies experienced double-digit growth in operating income and record highs for free cash flow and adjusted EBITDA.

Tyler Technologies reported a 3.8% increase in total revenues, reaching $285.7 million. The company experienced double-digit growth in operating income and record highs in free cash flow. Revenues were impacted by the COVID-19 pandemic, but the company returned to positive revenue growth.

  • Total revenues increased by 3.8% year-over-year to $285.7 million.
  • Operating income rose by 24.0% year-over-year to $49.7 million.
  • Recurring revenues from maintenance and subscriptions grew by 12.0% year-over-year, comprising 72.5% of total revenue.
  • Total backlog reached $1.55 billion, a 9.2% increase year-over-year.

Headline financials

Total Revenue

$286M

Previous: $275M+3.8%
EPS (adj)

$1.50

Previous: $1.35+11.1%
Capital Expenditures

-$19.1M

Previous: -$28.8M+33.9%
Free Cash Flow

$20.2M

Previous: $11.6M+75.0%
Net Income

$39.3M

Previous: $40.4M-2.7%
Operating Income

$49.7M

Previous: $40.1M+24.0%
Gross Profit

$144M

Previous: $131M+9.8%
Cash & Equivalents

$519M

Previous: $161M+221.3%
Total Assets

$2.49B

Previous: $2.06B+21.3%
Stock-Based Comp

$18.4M

Previous: $14.9M+23.8%

Revenue & EPS history

Tyler · Revenue · Quarterly

$286M

Q3 2020+3.8%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Tyler · $232M total across 4 segments · Q3 2020

  • Maintenance
    $118M
  • Subscriptions
    $89.3M
  • Software licenses and royalties
    $19.9M
  • Hardware and other
    $5.2M

Forward guidance

Tyler Technologies is providing the following guidance for the full year 2020:

Tailwinds

  • GAAP total revenues are expected to be in the range of $1.117 billion to $1.129 billion.
  • Non-GAAP total revenues are expected to be in the range of $1.118 billion to $1.130 billion.
  • GAAP diluted earnings per share are expected to be in the range of $4.53 to $4.63.
  • Non-GAAP diluted earnings per share are expected to be in the range of $5.48 to $5.58.
  • Fully diluted shares for the year are expected to be in the range of 41.5 million to 42.0 million shares.

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 Q3 2020

Historical avgQ3 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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