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Tyler (TYL) Q1 Earnings & Revenues Beat Estimates, Up Y/Y

·4 min read

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 and EPS Surprise
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.

Operating Details

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.

View

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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