Tyler Technologies TYL reported first-quarter 2021 non-GAAP earnings of $1.43 per share, which beat the Zacks Consensus Estimate by 9.2%. Moreover, the bottom line increased 16.5% from the year-ago reported figure.
Revenues on a non-GAAP basis increased 6.5% year on year to $294.8 million, beating the consensus mark by 2.3%.
Notably, recurring revenues from maintenance and subscriptions increased 13% year over year to $221.6 million and accounted for 75.2% of total revenues.
During the quarter, Tyler completed the acquisitions of electronic management of veterans' claims provider, DataSpec, and cloud-based school scheduling platform, ReadySub.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Q1 Results in Detail
Segment-wise, Maintenance revenues (accounting for 40.4% of total revenues) came in at $119.1 million, up 4.1% year over year.
Subscription revenues (34.8% of total revenues) climbed 25.5% year over year to $102.5 million.
Software licenses and royalties (5.1% of total revenues) of $14.9 million slid 20.3% on a year-over-year basis.
Software Services revenues (16.1% of total revenues) of $47.6 million dropped 8.6% from the year-ago quarter.
Appraisal services revenues (2.2% of total revenues) rose 12% from the prior-year quarter to $6.5 million.
Hardware and other revenues (1.4% of total revenues) rose 10.5% from the year-ago quarter to $4.2 million.
Backlog at quarter-end was $1.55 billion, up 3% year over year. Of this, software-related backlog (excluding appraisal services) increased 2.9% from a year ago to $1.50 billion.
Bookings declined 22.8% year on year to $247 million because of more than usual large contracts signed in the prior-year quarter, including two SaaS contracts with the North Carolina Administrative Office of the Courts.
Tyler’s non-GAAP gross profit decreased to $157.2 million from the year-earlier quarter’s $141.6 million. However, non-GAAP gross margin expanded 210 basis points (bps) to 53.3%.
Adjusted EBITDA was $85.7 million, up 17.1% year over year.
The company’s non-GAAP operating income increased 18% year over year to $78.9 million. Its operating margin advanced 270 bps to 26.8%.
Balance Sheet and Cash Flow
As of Mar 31, 2021, cash and cash equivalents were $1.25 billion compared with $603.6 million on Dec 31, 2020.
The company generated an operating cash flow of $71.7 million during the first quarter, up 26.4% year over year.
Free cash flow was $61.7 million for the first quarter.
Tyler reiterated its full-year revenue guidance in the range of $1.119-$1.22 billion. Moreover, non-GAAP earnings guidance is projected within $5.65-$5.77 per share.
Zacks Rank & Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Lam Research Corporation LRCX, Micron Technology, Inc. MU and LG Display Co., Ltd. LPL, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Lam Research, Micron and LG Display is currently projected at 32.8%, 15.7%, and 29.8%, respectively.
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