NYSE$TYL

Tyler Technologies Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a 2.9% increase in total revenues, with organic GAAP revenues growing by 9.0%.

Tyler Technologies reported solid top and bottom-line results for Q3 2022, driven by strong execution and robust public sector market demand. Total revenues increased by 2.9%, with organic GAAP revenue growth of 9.0%. The company is prioritizing debt reduction and strategic acquisitions to enhance long-term growth.

  • Total revenues increased by 2.9% year-over-year to $473.2 million.
  • GAAP revenues grew 9.0% organically, excluding COVID-related revenues.
  • Software subscription arrangements comprised approximately 91% of the total new software contract value.
  • ARR was reported as $1.49 billion.

Headline financials

Total Revenue

$473M

Previous: $460M+2.9%
EPS (adj)

$2.06

Previous: $2.01+2.5%
Capital Expenditures

-$17.4M

Previous: -$20.8M+16.0%
Free Cash Flow

$35.8M

Previous: $23.4M+53.0%
Net Income

$53.2M

Previous: $44.2M+20.5%
Operating Income

$60.9M

Previous: $56.2M+8.4%
Gross Profit

$205M

Previous: $196M+4.3%
Cash & Equivalents

$186M

Previous: $234M-20.6%
Total Assets

$4.68B

Previous: $4.68B-0.2%
Stock-Based Comp

$26.9M

Previous: $29.5M-8.7%

Revenue & EPS history

Tyler · Revenue · Quarterly

$473M

Q3 2022+2.9%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Tyler · $401M total across 4 segments · Q3 2022

  • Subscriptions
    $254M+0.6%
  • Maintenance
    $117M-0.4%
  • Software licenses and royalties
    $20.3M-10.6%
  • Hardware and other
    $9.42M+102.4%

Forward guidance

Tyler Technologies is providing guidance for the full year 2022. GAAP and non-GAAP total revenues are both expected to be in the range of $1.837 billion to $1.857 billion. Non-GAAP diluted earnings per share are expected to be in the range of $7.51 to $7.65.

Tailwinds

  • GAAP and non-GAAP total revenues are both expected to be in the range of $1.837 billion to $1.857 billion.
  • Non-GAAP diluted earnings per share are expected to be in the range of $7.51 to $7.65.
  • Interest expense is expected to be approximately $28 million.
  • Pretax non-cash, share-based compensation expense is expected to be approximately $107 million.
  • The non-GAAP annual effective tax rate is expected to be 22.5%.

Headwinds

  • Total revenues are expected to include approximately $49 million of COVID-related revenues.
  • GAAP earnings per share assumes an estimated annual effective tax rate of approximately 14.0% after discrete tax items.
  • Capital expenditures are expected to be in the range of $58 million to $62 million.
  • Total depreciation and amortization expense is expected to be approximately $147 million, including approximately $112 million from amortization of acquisition intangibles.
  • Has reduced the upper end of full year revenue guidance to reflect lower license revenue, as well as pressure on professional services revenue related to staffing.

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 2022

Historical avgQ3 2022

+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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