US Market News
4週前
Tyler Technologies, Inc. Prices Upsized Offering of $1.25 Billion Convertible Senior Notes due 2031May 12, 2026 12:24 AM
Business Wire Opportunistic capital raise with proceeds used to enhance financial flexibility and fund concurrent share repurchases A portion of the proceeds to be used to purchase capped calls intended to offset potential dilution to Tyler’s common stock upon conversion of the Notes Tyler Technologies, Inc. (NYSE: TYL) today announced the pricing of its offering of $1,250,000,000 aggregate principal amount of 0.50% convertible senior notes due 2031 (the “Notes”) in a private offering to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering size was increased from the previously announced offering size of $1,000,000,000 aggregate principal amount of Notes. The issuance and sale of the Notes are scheduled to settle on May 14, 2026, subject to customary closing conditions. Tyler also granted the initial purchasers of the Notes an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $187,500,000 aggregate principal amount of Notes. The Notes will be senior, unsecured obligations of Tyler and will accrue interest at a rate of 0.50% per annum, in each case payable semi-annually in arrears on July 15 and January 15 of each year, beginning on January 15, 2027. The Notes will mature on July 15, 2031 unless earlier repurchased, redeemed or converted. Before April 15, 2031, holders of the Notes will have the right to convert their Notes only upon the occurrence of certain events. From and including April 15, 2031, holders of the Notes may convert their Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Tyler will settle conversions of the Notes either entirely in cash or in a combination of cash and shares of its common stock, at Tyler’s election. However, upon conversion of any Notes, the conversion value, which will be determined proportionately over a period of multiple trading days, will be paid in cash up to the principal amount of the Notes being converted. The initial conversion rate of the Notes is 2.4634 shares of common stock per $1,000 principal amount of Notes (which represents an initial conversion price of approximately $405.94 per share of common stock). The initial conversion price represents a premium of approximately 30.0% over the last reported sale price of Tyler’s common stock on the New York Stock Exchange of $312.27 per share on May 11, 2026. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. The Notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Tyler’s option at any time, and from time to time, on or after July 20, 2029, and on or before the 30th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Tyler’s common stock exceeds 130% of the conversion price for a specified period of time and certain other conditions are satisfied. The redemption price will be equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. Holders of the Notes will have the right to require Tyler to repurchase their Notes upon the occurrence of a fundamental change (as defined in the indentures governing the Notes) at a cash repurchase price equal to the principal amount of the Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. Tyler estimates that the net proceeds from the offering will be approximately $1,224.3 million (or approximately $1,408.1 million if the initial purchasers fully exercise their option to purchase additional Notes), after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. Tyler intends to use approximately $162.8 million of the net proceeds to fund the cost of entering into the capped call transactions described below. Tyler expects to use approximately $320.7 million of the net proceeds to repurchase 1,026,900 shares of its common stock concurrently with the offering in privately negotiated transactions effected through one of the initial purchasers of the Notes or its affiliate, as Tyler’s agent, under Tyler’s share repurchase program. Tyler intends to use the remainder of the net proceeds for general corporate purposes. If the initial purchasers exercise their option to purchase additional Notes, then Tyler intends to use a portion of the additional net proceeds to fund the cost of entering into additional capped call transactions as described below. The concurrent repurchases of shares of Tyler’s common stock described above may result in Tyler’s common stock trading at prices that are higher than would be the case in the absence of these repurchases and may have affected the initial terms of the Notes, including the initial conversion price. In connection with the pricing of the Notes, Tyler entered into privately negotiated capped call transactions with one or more of the initial purchasers or their affiliates or one or more other financial institutions (the “Option Counterparties”). The capped call transactions will cover, subject to anti-dilution adjustments substantially similar to those applicable to the Notes, the number of shares of Tyler’s common stock underlying the Notes. If the initial purchasers exercise their option to purchase additional Notes, then Tyler expects to enter into additional capped call transactions with the Option Counterparties. The cap price of the capped call transactions will initially be approximately $655.77 per share, which represents a premium of approximately 110% over the last reported sale price of $312.27 per share of Tyler’s common stock on May 11, 2026, and is subject to certain adjustments under the terms of the capped call transactions. The capped call transactions are expected generally to reduce the potential dilution to Tyler’s common stock upon any conversion of the Notes and/or offset any potential cash payments Tyler is required to make in excess of the principal amount of converted Notes, as the case may be, upon conversion of the Notes. If, however, the market price per share of Tyler’s common stock, as measured under the terms of the capped call transactions, exceeds the cap price of the capped call transactions, there would nevertheless be dilution and/or there would not be an offset of such potential cash payments, in each case, to the extent that such market price exceeds the cap price of the capped call transactions. In connection with establishing their initial hedges of the capped call transactions, the Option Counterparties or their respective affiliates expect to enter into various derivative transactions with respect to Tyler’s common stock and/or purchase shares of Tyler’s common stock concurrently with or shortly after the pricing of the Notes. This activity could increase (or reduce the size of any decrease in) the market price of Tyler’s common stock or the Notes at that time. In addition, the Option Counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to Tyler’s common stock and/or purchasing or selling Tyler’s common stock or other securities of Tyler in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so (x) following any conversion of the Notes, any repurchase of the Notes by Tyler on any fundamental change repurchase date or any redemption date, (y) following any other repurchase of the Notes if Tyler elects to unwind a corresponding portion of the capped call transactions in connection with such repurchase and (z) if Tyler otherwise elects to unwind all or a portion of the capped call transactions). This activity could also cause or avoid an increase or decrease in the market price of Tyler’s common stock or the Notes, which could affect the ability to convert the Notes, and, to the extent the activity occurs during any observation period related to a conversion of Notes, it could affect the number of shares and value of the consideration that holders of the Notes will receive upon conversion of the Notes. As described above, Tyler intends to use a portion of the net proceeds of the offering to repurchase shares of its common stock concurrently with the pricing of the offering in privately negotiated transactions. These repurchases, and any other repurchases of shares of Tyler’s common stock, may increase, or reduce the size of a decrease in, the trading price of Tyler’s common stock, and repurchases executed concurrently with the pricing of the offering may have affected the initial terms of the Notes, including the initial conversion price. The offer and sale of the Notes and any shares of common stock issuable upon conversion of the Notes have not been, and will not be, registered under the Securities Act or any other securities laws, and the Notes and any such shares cannot be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any shares of common stock issuable upon conversion of the Notes, nor will there be any offer, solicitation or sale of the Notes or any such shares, in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful. About Tyler Technologies, Inc. Tyler Technologies (NYSE: TYL) is a leading provider of technology solutions purpose-built exclusively for the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions strengthen the core operations of government and help agencies turn insight into action for their communities. With nearly 47,000 successful installations across 15,000 locations, Tyler serves clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including on Government Technology’s GovTech 100 list. Forward-Looking Statements This press release includes forward-looking statements, including statements regarding the completion of the offering and the expected amount and intended use of the net proceeds and the effects of entering into the capped call transactions described above. Forward-looking statements represent Tyler’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those indicated in, or implied by, the forward-looking statements. Among those risks and uncertainties are market conditions, the satisfaction of the closing conditions related to the offering and risks relating to Tyler’s business, including those described in periodic reports that Tyler files from time to time with the Securities and Exchange Commission. Tyler may not consummate the offering described in this press release and, if the offering is consummated, cannot provide any assurances regarding its ability to effectively apply the net proceeds as described above. The forward-looking statements included in this press release speak only as of the date of this press release, and Tyler does not undertake to update the statements included in this press release for subsequent developments, except as may be required by law. #TYL_Financial View source version on businesswire.com: https://www.businesswire.com/news/home/20260511961322/en/ Contact: Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com Original: Tyler Technologies, Inc. Prices Upsized Offering of $1.25 Billion Convertible Senior Notes due 2031
abrooklyn
2年前
https://s201.q4cdn.com/385562537/files/doc_financials/2024/q2/24-35-Q2-earnings-PR.pdf
Tyler Technologies Reports Earnings for Second Quarter 2024
Strong results fueled by 23% growth in SaaS revenues
PLANO, Texas (July 24, 2024) – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth technology
company, today announced financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights (all comparisons are to the second quarter of 2023):
Revenues
Total revenues were $541.0 million, up 7.3%. On an organic basis, revenues grew 6.5%.
Recurring Revenues
Recurring revenues from maintenance and subscriptions were $449.0 million, up 8.4%, and comprised
83.0% of total revenues, up from 82.2%. On an organic basis, recurring revenues grew 7.8%.
• Subscription revenues were $333.7 million, up 12.1%. On an organic basis, subscription revenues
grew 11.8%. Within subscriptions:
? SaaS revenues grew 23.2% to $156.0 million. On an organic basis, SaaS revenues grew
22.5%.
? Transaction-based revenues grew 3.8% on an organic basis to $177.7 million.
? SaaS arrangements comprised approximately 97% of the total new software contract value,
up from approximately 82%.
• Annualized recurring revenue (ARR) was $1.80 billion, up 8.4%.
Earnings/EBITDA
• GAAP operating income was $78.0 million, up 26.1%. Non-GAAP operating income was $132.6
million, up 14.4%.
• GAAP net income was $67.7 million, or $1.57 per diluted share, up 37.9%. Non-GAAP net income
was $103.9 million, or $2.40 per diluted share, up 20.9%.
• Adjusted EBITDA was $144.0 million, up 14.7%.
Cash Flow
• Cash flow from operations was $64.3 million, compared to negative $19.2 million.
• Free cash flow was $48.6 million, compared to negative $33.2 million.
Tyler Technologies Reports Earnings
for Second Quarter 2024
July 24, 2024
Page 2
• During the second quarter, cash tax payments included approximately $29 million related to IRC
Section 174 capitalization rules.
"We built on the momentum from our strong first quarter performance to again deliver exceptional results for
the second quarter," said Lynn Moore, Tyler's president and chief executive officer. "SaaS revenues grew
23.2%, and SaaS arrangements comprised 97% of our new software contract value, as clients across all
segments of the public sector increasingly embrace the cloud. Transaction revenues outperformed our plan,
primarily due to higher transaction volumes, including e-filing and new payment services. In addition,
operating margins exceeded our expectations and benefited from improved professional services margins, as
well as continued progress around key initiatives associated with our cloud transition.
"Our new business pipeline remains at elevated levels, reflecting a robust market environment, growing cross-
sell opportunities, and continued solid execution by our sales organization. We're pleased with our progress
under each of the pillars supporting our near and long-term growth objectives. Our outlook for the remainder
of 2024 is positive, and we have revised our full-year guidance accordingly," concluded Moore.
Guidance for 2024
As of July 24, 2024, Tyler Technologies is providing the following guidance for the full year 2024:
• 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.
• Capital expenditures are expected to be in the range of $50 million to $52 million, including
approximately $33 million of capitalized software development costs.
Tyler Technologies Reports Earnings
for Second Quarter 2024
July 24, 2024
Page 3
GAAP to non-GAAP guidance reconciliation 2024
GAAP diluted earnings per share (1) $5.76 - $5.96
Plus:
Share-based compensation expense 2.85
Amortization of acquired software and other intangibles 2.23
Acquisition-related costs —
Lease restructuring costs and other —
Less:
Income tax impact (1) (1.59)
Non-GAAP diluted earnings per share $9.25 - $9.45
Shares used in computing diluted earnings per share (millions) 43.5
GAAP estimated annual effective tax rate used in computing GAAP diluted
earnings per share (1) 15.5%
Non-GAAP estimated annual effective tax rate used in computing Non-GAAP
diluted earnings per share 22%
(1) 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.
Conference Call
Tyler Technologies will hold a conference call on Thursday, July 25, 2024, at 10:00 a.m. ET to discuss its
second quarter 2024 results. Participants can pre-register for the teleconference here. Alternatively,
participants can also join the teleconference by dialing 833-470-1428 and entering access code 328788 to join
the live call.
The live audio webcast and archived replay can also be accessed at the Events & Presentations section of
Tyler's investor relations website.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) is a leading provider of integrated software and technology services for the
public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate
efficiently and transparently with residents and each other. By connecting data and processes across disparate
systems, Tyler's solutions transform how clients turn actionable insights into opportunities and solutions for
their communities. Tyler has more than 44,000 successful installations across 13,000 locations, with clients in
all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized
numerous times for growth and innovation, including Government Technology's GovTech 100 list. More
information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at
tylertech.com.
Tyler Technologies Reports Earnings
for Second Quarter 2024
July 24, 2024
Page 4
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures that have not been prepared in
accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP
financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP
operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted
share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP
financial measures internally in analyzing our financial results and believe they are useful to investors, as a
supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide
additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP
financial measures provides an additional tool for investors to use in evaluating ongoing operating results and
trends and in comparing our financial results with other companies in our industry, many of which present
similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based
compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated
with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease
restructuring costs and other. Annualized recurring revenues (ARR) is calculated by annualizing the current
quarter's recurring revenues from maintenance and subscriptions.
Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP
income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's
non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in
future periods will be reviewed periodically to determine whether it remains appropriate in consideration of
factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes
resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors
deemed significant. 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.
Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to,
financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler
Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged
to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial
measures, which has been provided in the financial statement tables included below in this press release.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and
typically address future or anticipated events, trends, expectations or beliefs with respect to our financial
condition, results of operations or business. Forward-looking statements often contain words such as
“believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,”
“may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements
Tyler Technologies Reports Earnings
for Second Quarter 2024
July 24, 2024
Page 5
that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking
statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently
subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs
reflected in the forward-looking statements. We presently consider the following to be among the important
factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the
budgets or regulatory environments of our clients, primarily local and state governments, that could
negatively impact information technology spending; (2) disruption to our business and harm to our
competitive position resulting from cyber-attacks, security vulnerabilities and software updates; (3) our ability
to protect client information from security breaches and provide uninterrupted operations of data centers; (4)
our ability to achieve growth or operational synergies through the integration of acquired businesses, while
avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business
require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial
forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer
transactions, delays in delivery of new products or releases or a decline in our renewal rates for service
agreements; (7) general economic, political and market conditions, including continued inflation and rising
interest rates; (8) technological and market risks associated with the development of new products or services
or of new versions of existing or acquired products or services; (9) competition in the industry in which we
conduct business and the impact of competition on pricing, client retention and pressure for new products or
services; (10) the ability to attract and retain qualified personnel and dealing with rising labor costs, and the
loss or retirement of key members of management or other key personnel; and (11) costs of compliance and
any failure to comply with government and stock exchange regulations. These factors and other risks that
affect our business are described in our filings with the Securities and Exchange Commission, including the
detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on
Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking
statements.
(Comparative results follow)
Contact: Hala Elsherbini
Senior Director, Investor Relations
Tyler Technologies, Inc.
972-713-3770
hala.elsherbini@tylertech.com
Source: Tyler Technologies
#TYL_Financial
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
Revenues:
Subscriptions $ 333,682 $ 297,789 $ 646,925 $ 578,254
Maintenance 115,309 116,539 232,527 231,670
Professional services 71,928 66,420 136,734 127,349
Software licenses and royalties 5,329 9,779 14,063 19,909
Hardware and other 14,728 13,752 23,086 18,951
Total revenues 540,976 504,279 1,053,335 976,133
Cost of revenues:
Subscriptions, maintenance, and professional services 277,145 255,789 546,015 508,204
Software licenses and royalties 1,560 2,432 3,125 4,745
Amortization of software development 4,484 2,896 8,847 5,485
Amortization of acquired software 9,240 8,924 18,479 17,844
Hardware and other 10,731 11,061 15,387 16,841
Total cost of revenues 303,160 281,102 591,853 553,119
Gross profit 237,816 223,177 461,482 423,014
Sales and marketing expense 41,565 37,103 77,992 74,206
General and administrative expense 75,420 77,681 148,130 150,041
Research and development expense 28,951 28,153 58,384 55,139
Amortization of other intangibles 13,845 18,366 31,963 36,774
Operating income 78,035 61,874 145,013 106,854
Interest expense (1,253) (6,387) (3,437) (14,071)
Other income, net 1,883 643 3,728 1,889
Income before income taxes 78,665 56,130 145,304 94,672
Income tax provision 10,927 7,000 23,396 14,667
Net income $ 67,738 $ 49,130 $ 121,908 $ 80,005
Earnings per common share:
Basic $ 1.59 $ 1.17 $ 2.87 $ 1.91
Diluted $ 1.57 $ 1.15 $ 2.82 $ 1.87
Weighted average common shares outstanding:
Basic 42,527 41,980 42,528 41,987
Diluted 43,275 42,751 43,286 42,710
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three months ended June 30, Six months ended June 30,
Reconciliation of non-GAAP gross profit and margin 2024 2023 2024 2023
GAAP gross profit $ 237,816 $ 223,177 $ 461,482 $ 423,014
Non-GAAP adjustments:
Add: Share-based compensation expense included in cost of
revenues 7,620 6,437 15,010 12,779
Add: Amortization of acquired software 9,240 8,924 18,479 17,844
Non-GAAP gross profit $ 254,676 $ 238,538 $ 494,971 $ 453,637
GAAP gross margin 44.0 % 44.3 % 43.8 % 43.3 %
Non-GAAP gross margin 47.1 % 47.3 % 47.0 % 46.5 %
Three months ended June 30, Six months ended June 30,
Reconciliation of non-GAAP operating income and margin 2024 2023 2024 2023
GAAP operating income $ 78,035 $ 61,874 $ 145,013 $ 106,854
Non-GAAP adjustments:
Add: Share-based compensation expense 30,407 26,028 57,273 53,924
Add: Employer portion of payroll tax related to employee stock
transactions 873 669 1,678 1,148
Add: Acquisition-related costs 2 50 29 72
Add: Lease restructuring costs and other 167 — (159) 1,545
Add: Amortization of acquired software 9,240 8,924 18,479 17,844
Add: Amortization of other intangibles 13,845 18,366 31,963 36,774
Non-GAAP adjustments subtotal 54,534 54,037 109,263 111,307
Non-GAAP operating income $ 132,569 $ 115,911 $ 254,276 $ 218,161
GAAP operating margin 14.4 % 12.3 % 13.8 % 10.9 %
Non-GAAP operating margin 24.5 % 23.0 % 24.1 % 22.3 %
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three months ended June 30, Six months ended June 30,
Reconciliation of non-GAAP net income and earnings per share 2024 2023 2024 2023
GAAP net income $ 67,738 $ 49,130 $ 121,908 $ 80,005
Non-GAAP adjustments:
Add: Total non-GAAP adjustments to operating income 54,534 54,037 109,263 111,307
Less: Income tax impact (18,377) (17,237) (32,609) (30,648)
Non-GAAP net income $ 103,895 $ 85,930 $ 198,562 $ 160,664
GAAP earnings per diluted share $ 1.57 $ 1.15 $ 2.82 $ 1.87
Non-GAAP earnings per diluted share $ 2.40 $ 2.01 $ 4.59 $ 3.76
Three months ended June 30, Six months ended June 30,
Detail of share-based compensation expense 2024 2023 2024 2023
Subscriptions, maintenance, and professional services $ 7,620 $ 6,437 $ 15,010 $ 12,779
Sales and marketing expense 3,141 2,367 6,124 4,760
General and administrative expense 19,646 17,224 36,139 36,385
Total share-based compensation expense $ 30,407 $ 26,028 $ 57,273 $ 53,924
Three months ended June 30, Six months ended June 30,
Reconciliation of EBITDA and adjusted EBITDA 2024 2023 2024 2023
GAAP net income $ 67,738 $ 49,130 $ 121,908 $ 80,005
Amortization of other intangibles 13,845 18,366 31,963 36,774
Depreciation and amortization included in cost of revenues, sales and marketing
expense, general and administrative expense, and research and development
expense 19,620 19,359 40,721 39,124
Interest expense 1,253 5,566 3,437 11,894
Income tax provision 10,927 7,000 23,396 14,667
EBITDA $ 113,383 $ 99,421 $ 221,425 $ 182,464
Share-based compensation expense 30,407 26,028 57,273 53,924
Acquisition-related costs 2 50 29 72
Lease restructuring costs and other asset write-offs 167 — (159) 1,545
Adjusted EBITDA $ 143,959 $ 125,499 $ 278,568 $ 238,005
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three months ended June 30, Six months ended June 30,
Reconciliation of free cash flow 2024 2023 2024 2023
Net cash provided by operating activities $ 64,304 $ (19,184) $ 136,143 $ 55,525
Less: additions to property and equipment (6,568) (4,350) (13,850) (6,370)
Less: investment in software development (9,107) (9,674) (16,493) (18,753)
Free cash flow $ 48,629 $ (33,208) $ 105,800 $ 30,402
Free cash flow margin 9.0 % (6.6) % 10.0 % 3.1 %
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 30, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents $ 250,722 $ 165,493
Accounts receivable, net 700,825 619,704
Short-term investments 7,288 10,385
Prepaid expenses and other current assets 83,497 65,003
Total current assets 1,042,332 860,585
Accounts receivable, long-term portion 7,928 8,988
Operating lease right-of-use assets 36,647 39,039
Property and equipment, net 167,635 169,720
Other assets:
Software development costs, net 74,069 67,124
Goodwill 2,531,899 2,532,109
Other intangibles, net 878,272 928,870
Non-current investments 3,879 7,046
Other non-current assets 76,818 63,182
Total assets $ 4,819,479 $ 4,676,663
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 303,476 $ 304,897
Operating lease liabilities 11,179 11,060
Current income tax payable 20,375 2,466
Deferred revenue 652,302 632,914
Current portion of term loans — 49,801
Total current liabilities 987,332 1,001,138
Convertible senior notes due 2026, net 597,069 596,206
Deferred revenue, long-term — 291
Deferred income taxes 41,584 78,590
Operating lease liabilities, long-term 35,624 39,822
Other long-term liabilities 25,762 22,621
Total liabilities 1,687,371 1,738,668
Shareholders' equity $ 3,132,108 $ 2,937,995
Total liabilities and shareholders' equity $ 4,819,479 $ 4,676,663
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Three months ended June 30, Six months ended June 30,
2024 2023 2024 2023
Cash flows from operating activities:
Net income $ 67,738 $ 49,130 $ 121,908 $ 80,005
Adjustments to reconcile net income to cash
provided by operations:
Depreciation and amortization 34,139 37,636 74,236 75,748
(Gains) losses from sale of investments (1) 2 (1) 2
Share-based compensation expense 30,407 26,028 57,273 53,924
Operating lease right-of-use assets expense 2,343 2,765 4,865 6,569
Deferred income tax benefit (12,473) (21,109) (36,807) (39,665)
Other 225 (54) 190 445
Changes in operating assets and liabilities,
exclusive of effects of acquired companies (58,074) (113,582) (85,521) (121,503)
Net cash provided (used) by operating activities 64,304 (19,184) 136,143 55,525
Cash flows from investing activities:
Additions to property and equipment (6,568) (4,350) (13,850) (6,370)
Purchase of marketable security investments — — — (10,617)
Proceeds and maturities from marketable security investments 3,080 14,132 6,351 37,107
Investment in software development (9,107) (9,674) (16,493) (18,753)
Cost of acquisitions, net of cash acquired — — (1,302) (1,875)
Other 3 — 21 16
Net cash (used) provided by investing activities (12,592) 108 (25,273) (492)
Cash flows from financing activities:
Payment on term loans — — (50,000) (120,000)
Proceeds from exercise of stock options, net of withheld shares for taxes
upon equity award settlement 5,852 2,281 15,885 2,123
Contributions from employee stock purchase plan 4,921 4,714 8,474 7,751
Net cash provided (used) by financing activities 10,773 6,995 (25,641) (110,126)
Net increase (decrease) in cash and cash equivalents 62,485 (12,081) 85,229 (55,093)
Cash and cash equivalents at beginning of period 188,237 130,845 165,493 173,857
Cash and cash equivalents at end of period $ 250,722 $ 118,764 $ 250,722 $ 118,764
abrooklyn
2年前
Tyler Technologies Reports Earnings for Fourth Quarter 2023
Source: Business Wire
SaaS revenues grew 21.7% for the fourth quarter
Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the fourth quarter ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights (all comparisons are to the fourth quarter of 2022):
Revenues
Total revenues were $480.9 million, up 6.3%. On an organic basis, revenues grew 6.1%.
Recurring Revenues
Recurring revenues were $403.6 million, up 7.9%, and comprised 83.9% of fourth quarter 2023 revenues, up from 82.7%. On an organic basis, recurring revenues were $400.4 million, up 7.1%.
Subscription revenues were $286.1 million, up 11.4%. On an organic basis, subscription revenues grew 10.8%. Within subscriptions:
SaaS revenues grew 21.7% to $141.0 million. On an organic basis, SaaS revenues grew 21.2%.
Transaction-based revenues grew 3.0% to $145.1 million. On an organic basis, transaction-based revenues grew 2.1%.
SaaS arrangements comprised approximately 89% of the total new software contract value, compared to approximately 86%.
Annualized recurring revenue (ARR) was $1.61 billion, up 7.9%.
Earnings/EBITDA
GAAP operating income was $47.7 million, up 17.3%. Non-GAAP operating income was $107.4 million, up 9.7%.
GAAP net income was $38.9 million, or $0.91 per diluted share, up 25.2%. Non-GAAP net income was $81.4 million, or $1.89 per diluted share, up 15.6%.
Adjusted EBITDA was $117.9 million, up 7.4%.
Cash Flow
Cash flows from operations were $147.4 million, up 21.0%.
Free cash flow was $134.4 million, up 17.1%.
During the fourth quarter, cash tax payments included approximately $15 million related to IRC Section 174 capitalization rules.
Acquisitions
During the fourth quarter, we completed the acquisitions of ResourceX and ARInspect for a combined purchase price of approximately $37 million in cash and stock.
Full Year 2023 Financial Highlights (all comparisons are to the full year of 2022):
Revenues
Total revenues were $1.952 billion, up 5.5%. On an organic basis (excluding COVID-related revenues in 2022), revenues grew 7.4%.
Recurring Revenues
Recurring revenues were $1.63 billion, up 9.8%, and comprised 83.3% of 2023 revenues, up from 80.0%. On an organic basis, recurring revenues were $1.61 billion, up 9.5%.
Subscription revenues were $1.16 billion, up 14.5%. On an organic basis, subscription revenues grew 14.4%. Within subscriptions:
SaaS revenues grew 23.2% to $528.0 million. On an organic basis, SaaS revenues grew 23.1%.
Transaction-based revenues grew 8.2% to $631.5 million. On an organic basis, transaction-based revenues grew 7.9%.
SaaS arrangements comprised approximately 85% of the total new software contract value, compared to approximately 83%.
Earnings/EBITDA
GAAP operating income was $218.5 million, up 2.0%. Non-GAAP operating income was $448.1 million, up 2.5%.
GAAP net income was $165.9 million, or $3.88 per diluted share, up 1.0%. Non-GAAP net income was $333.7 million, or $7.80 per diluted share, up 4.9%.
Adjusted EBITDA was $488.4 million, up 2.8%.
Cash Flow
Cash flows from operations were $380.4 million, down 0.3%.
Free cash flow was $327.4 million, down 1.2%.
Cash tax payments in 2023 included approximately $127 million related to IRC Section 174 capitalization rules.
“Our fourth quarter results reflected a strong finish to a pivotal year in our cloud transition and a return to year-over-year operating margin expansion,” said Lynn Moore, Tyler’s president and chief executive officer. “We achieved our key objectives for the year and both earnings and cash flow surpassed our expectations. Recurring revenue growth for the quarter was solid, highlighted by SaaS revenue growth of 21.7%, marking our 12th consecutive quarter of SaaS revenue growth of 20% or more. Free cash flow reached a new high for a fourth quarter and our SaaS mix expanded to 89% of new software contract value.
“We're pleased with the strength of new contract signings during the fourth quarter, including a landmark win with the California Department of Parks and Recreation for our integrated Outdoor Recreation platform, including payments. This transaction-based, self-funded eight-year contract is the largest transaction-based arrangement in Tyler's history. We're also excited to have signed our expanded strategic collaboration agreement with Amazon Web Services to further enable the growing adoption of Tyler's cloud-based mission-critical solutions and to support our public sector clients' digital modernization needs.
“During 2023, we excelled on many fronts executing our four-pronged growth strategy to drive predictable, higher recurring revenues and long-term margin expansion. We leveraged our unmatched installed base, broad suite of offerings, and strong relationships across local, state, and federal agencies to expand our cross-sell and upsell opportunities. We continued to take a balanced and opportunistic approach with respect to capital allocation and closed four strategic acquisitions, adding AI technology that can be leveraged across Tyler's product portfolio. We further strengthened our balance sheet and aggressively reduced our term debt with fourth quarter repayments of $90 million. For the full year, we reduced debt by $345 million, bringing our net leverage at year-end to under one times proforma EBITDA.
“We enter 2024 with tremendous optimism and confidence in the year ahead and beyond as we execute our strategy supporting our Tyler 2030 vision. The public sector market remains very healthy, as evidenced by our elevated levels of RFP and sales demonstration activity. We are on track with key initiatives around our cloud transition, including the migration of on-premises clients to the cloud and the planned exit from our proprietary data centers, and we expect to return to a trajectory of operating margin expansion in 2024,” concluded Moore.
Annual Guidance for 2024
As of February 14, 2024, Tyler Technologies is providing the following guidance for the full year 2024:
Total revenues are expected to be in the range of $2.095 billion to $2.135 billion.
GAAP diluted earnings per share are expected to be in the range of $5.17 to $5.37.
Non-GAAP diluted earnings per share are expected to be in the range of $8.90 to $9.10.
Free cash flow margin is expected to be in the range of 17% to 19%.
Research and development expense is expected to be in the range of $125 million to $130 million.
Capital expenditures are expected to be in the range of $46 million to $48 million, including approximately $27 million of software development costs.
GAAP to non-GAAP guidance reconciliation
2024
GAAP diluted earnings per share (1)
$5.17 - $5.37
Plus:
Share-based compensation expense
2.92
Amortization of acquired software and other intangibles
2.21
Less:
Income tax impact (1)
(1.40)
Non-GAAP diluted earnings per share
$8.90 - $9.10
Shares used in computing diluted earnings per share (millions)
43.5
GAAP estimated annual effective tax rate used in computing GAAP diluted earnings per share (1)
18%
Non-GAAP estimated annual effective tax rate used in computing non-GAAP diluted earnings per share
22%
(1) 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.
Conference Call
Tyler Technologies will hold a conference call on Thursday, February 15, 2024, at 10:00 a.m. ET to discuss the company’s results. Participants can register in advance for the conference through the following link: https://conferencingportals.com/event/eqivMdEU. Registered participants will receive an email with a calendar reminder, dial-in number and conference ID that allows them immediate access to the call.
The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance.
Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. 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.
Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.
(Comparative results follow)
#TYL_Financial
abrooklyn
3年前
Tyler Technologies Reports Earnings for Third Quarter 2023
Source: Business Wire
SaaS revenues grew 26%; cash from operations rose 37.2%
Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights:
Revenues
Total revenues were $494.7 million, up 4.5% from the third quarter of 2022. On an organic basis, revenues grew 6.0%.
Recurring Revenues
Recurring revenues from maintenance and subscriptions were $412.7 million, up 11.0% from the third quarter of 2022, and comprised 83.4% of total revenues (compared to 78.5% for the third quarter of 2022). On an organic basis, recurring revenues grew 9.8%.
Subscription revenues were $295.2 million, up 16.1% from the third quarter of 2022. On an organic basis, subscription revenues grew 14.7%. Within subscriptions:
SaaS revenues grew organically 26.0% to $138.5 million.
Transaction-based revenues grew 8.5% to $156.7 million. On an organic basis, transaction-based revenues grew 6.0%.
SaaS arrangements comprised approximately 80% of the total new software contract value, compared to approximately 91% for the third quarter of 2022.
Annualized recurring revenue (ARR) was $1.65 billion, up 11.0% from the third quarter of 2022.
Earnings/EBITDA
GAAP operating income was $63.9 million, up 5.0% from the third quarter of 2022. Non-GAAP operating income was $122.5 million, up 4.0% from the third quarter of 2022.
GAAP net income was $47.0 million, or $1.10 per diluted share, down 11.7% from the third quarter of 2022. Non-GAAP net income was $91.6 million, or $2.14 per diluted share, up 4.9% from the third quarter of 2022.
Adjusted EBITDA was $132.5 million, up 4.4% from the third quarter of 2022.
Cash Flow
Cash flows from operations were $177.5 million, up 37.2%, compared to $129.4 million for the third quarter of 2022. Free cash flow was $162.7 million, up 40.7%, compared to $115.6 million for the third quarter of 2022. During the third quarter, cash tax payments included approximately $22 million related to IRS Section 174 capitalization rules.
Acquisition
During the third quarter, we completed the acquisition of Computer Systems Innovations (CSI) for a cash purchase price of approximately $36 million, net of cash acquired.
"Our third quarter earnings and cash flow surpassed expectations and reflect a continuation of solid execution on key operational initiatives," said Lynn Moore, Tyler's president and chief executive officer. "We achieved strong performance across our key metrics, with double-digit recurring revenue growth and free cash flow growth of more than 40%. We're pleased that SaaS revenues grew 26% organically, exceeding our near-term SaaS growth expectations of a 20% CAGR outlined during our June Investor Day. This represents our 11th consecutive quarter of SaaS revenue growth of 20% or more. Additionally, operating margins exceeded our plan and we remain on track to return to operating margin expansion in 2024.
"Our results demonstrate the strength and resilience of our business model against a backdrop of stable public sector demand, as our leading sales activity indicators remain strong. M&A is one of our key growth pillars, and during the quarter we enhanced our product portfolio by acquiring CSI, which brings AI-driven automation and enhanced document processing technology that can be leveraged across many of Tyler's vertical applications. We continue to prioritize debt reduction with our free cash flow, and we reduced our term debt by $135 million during the quarter, bringing our net leverage to 1.24 times proforma EBITDA. Our strong year-to-date performance is underpinned by our powerful growth algorithm, strong balance sheet, and our unique ability to deliver mission-critical cloud-based solutions enabling the public sector's ongoing digital transformation," concluded Moore.
Guidance for 2023
As of November 1, 2023, Tyler Technologies is providing the following guidance for the full year 2023:
Total revenues are expected to be in the range of $1.942 billion to $1.962 billion.
GAAP diluted earnings per share are expected to be in the range of $3.82 to $3.96 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.66 to $7.80.
Interest expense is expected to be approximately $24 million, including approximately $5 million of non-cash amortization of debt discounts and issuance costs.
Pretax non-cash, share-based compensation expense is expected to be approximately $110 million.
Research and development expense is expected to be in the range of $114 million to $115 million.
Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 16.5% after discrete tax items, including approximately $9 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22.0%.
Capital expenditures are expected to be in the range of $58 million to $60 million, including approximately $35 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $148 million, including approximately $109 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation
Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $110 million, amortization of acquired software and intangible assets of approximately $109 million, and acquisition-related costs, lease restructuring costs and other of approximately $6 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $9 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.
Conference Call
Tyler Technologies will hold a conference call on Thursday, November 2, 2023, at 10:00 a.m. ET to discuss the company’s results. Participants can pre-register for the teleconference at the following link: https://conferencingportals.com/event/eqivMdEU. Registered participants will receive an email with a calendar reminder, dial-in number, and conference ID that allows them immediate access to the call.
The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler's solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenues (ARR) is calculated by annualizing the current quarter's recurring revenues from maintenance and subscriptions.
Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. 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.
Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements
abrooklyn
3年前
https://investors.tylertech.com/news/news-details/2023/Tyler-Technologies-Reports-Earnings-for-Fourth-Quarter-2022/default.aspx
Tyler Technologies Reports Earnings for Fourth Quarter 2022
02/15/2023
SaaS annualized recurring revenue grew 19.3%
PLANO, Texas--(BUSINESS WIRE)-- Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the fourth quarter ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights:
Total revenues were $452.2 million, up 4.3% from $433.5 million for the fourth quarter of 2021. On an organic basis (excluding COVID-related revenues), revenues grew 6.0%. Non-GAAP total revenues were $452.2 million, up 4.2% from $434.2 million for the fourth quarter of 2021. On an organic basis, non-GAAP revenues grew 5.8%.
Recurring revenues from maintenance and subscriptions were $374.0 million, up 7.7% from $347.2 million for the fourth quarter of 2021, and comprised 82.7% of fourth quarter 2022 revenues, up from 80.1% for the fourth quarter of 2021. On an organic basis, recurring revenues were $367.3 million, up 9.1%. SaaS revenues included in subscriptions grew 19.3% to $110.2 million.
Professional services revenues included a total of $3.5 million from NIC's COVID-related initiatives, which ended in the fourth quarter of 2022, compared to $6.0 million for the fourth quarter of 2021.
Operating income was $40.7 million compared to $48.1 million for the fourth quarter of 2021. Non-GAAP operating income was $97.9 million, down 4.5% from $102.5 million for the fourth quarter of 2021.
Net income was $31.1 million, or $0.73 per diluted share, down 43.3% from $54.8 million, or $1.29 per diluted share, for the fourth quarter of 2021. Non-GAAP net income was $70.4 million, or $1.66 per diluted share, down 5.3% from $74.3 million, or $1.75 per diluted share, for the fourth quarter of 2021.
Cash flows from operations were $121.9 million, up 6.0% from $115.0 million for the fourth quarter of 2021. Free cash flow was $114.7 million, up 20.6% from $95.1 million for the fourth quarter of 2021.
Adjusted EBITDA was $109.8 million, down 0.4% from $110.3 million for the fourth quarter of 2021.
Software subscription arrangements comprised approximately 86% of total new software contract value for the fourth quarter, compared to approximately 77% for the fourth quarter of 2021.
Subscription bookings for the fourth quarter added $21.4 million in annual recurring revenue.
Annualized non-GAAP recurring revenues were $1.50 billion, up 7.5% from $1.39 billion for the fourth quarter of 2021.
During the fourth quarter, Tyler completed the acquisition of Rapid Financial Solutions for approximately $68 million in cash, net of cash acquired, and Tyler stock.
Full Year 2022 Financial Highlights:
Total revenues were $1.850 billion, up 16.2% from $1.592 billion in 2021. On an organic basis (excluding COVID-related revenues), revenues grew 8.2%. Non-GAAP total revenues were $1.850 billion, up 16.0% from $1.595 billion in 2021. On an organic basis, non-GAAP revenues grew 8.0%.
Recurring revenues from maintenance and subscriptions were $1.481 billion, up 17.6% from $1.259 billion in 2021, and comprised 80.0% of 2022 revenues, up from 79.1% in 2021. On an organic basis, recurring revenues were $1.317 billion, up 9.8%.
Subscription revenue and software services revenues included a total of $51.0 million from NIC's COVID-related initiatives, which ended in the fourth quarter of 2022. COVID-related revenues totaled $75.0 million in 2021. SaaS revenues included in subscriptions grew 24.8% to $411.5 million.
Operating income was $214.2 million, up 18.5% from $180.7 million in 2021. Non-GAAP operating income was $437.1 million, up 7.8% from $405.5 million in 2021.
Net income was $164.2 million, or $3.87 per diluted share, up 1.7% from $161.5 million, or $3.82 per diluted share in 2021. Non-GAAP net income was $318.1 million, or $7.50 per diluted share, up 7.3% from $296.5 million, or $7.02 per diluted share in 2021.
Cash flows from operations were $381.5 million, up 2.6% from $371.8 million in 2021. Free cash flow was $331.3 million, up 4.8% from $316.1 million in 2021.
Adjusted EBITDA was $475.0 million, up 9.0% from $435.7 million in 2021.
Software subscription arrangements comprised approximately 83% of total new software contract value in 2022, compared to approximately 71% in 2021.
Subscription bookings in 2022 added $93.4 million in annual recurring revenue.
Total backlog was a new high of $1.889 billion, up 5.2% from $1.796 billion at December 31, 2021.
“Our fourth quarter results marked a solid finish to an eventful year, as public sector demand remains strong and SaaS adoption continues at an accelerated pace,” said Lynn Moore, Tyler’s president and chief executive officer. “The Tyler team executed well with strong cross-division sales synergies and several multi-suite wins during the quarter. Even as our SaaS mix expanded to 86% of our new software contract value, we achieved organic growth (excluding COVID-related revenues) of 6.0% for the fourth quarter and 8.2% for the year. As expected, operating margins were pressured by the acceleration of our cloud transition, as well as an increase in R&D expense as certain development costs that we expected to capitalize were expensed.
"During 2022, we achieved notable milestones toward several key strategic initiatives. We integrated our payments teams and launched a significant go-to-market strategy for payments. We also leveraged our strong relationships across state and local agencies to expand our cross-sell opportunities. We made meaningful progress in our cloud journey through continued investment in cloud optimization and through a move to cloud-only deployment for many of our core solutions. Overall, the year was highlighted by significant wins, highly successful upsell efforts, and state enterprise renewals and expansions.
"Throughout the year, we demonstrated a balanced yet opportunistic approach across our business and with respect to capital allocation. While our bar is high for acquisitions, we maintain a strategic lens toward M&A opportunities and closed three transactions during 2022 that bring innovative and robust offerings to elevate our payments business and broaden our product suites. We further strengthened our balance sheet and aggressively reduced our term debt with fourth quarter repayments of $90 million. For the full year, we reduced debt by $360 million, bringing our net leverage at year-end to 1.64 times proforma EBITDA.
"As we move into 2023, I've never been more confident about Tyler's long-term prospects. This is an important year in our cloud transition, and we expect to reach an inflection point with a significant decline in license revenue that is being replaced by valuable long-term recurring SaaS revenue. In addition to short-term revenue headwinds from this mix shift, operating margins are expected to trough this year with a return to margin expansion in 2024. As we discussed throughout last year, we will also experience revenue comparison headwinds due to the end of COVID-related revenues in the fourth quarter of 2022. We're pleased that our 2023 guidance reflects expectations for high single-digit organic revenue growth, excluding COVID-related revenues, and we look forward to reporting our progress on our growth initiatives throughout the coming year," concluded Moore.
Guidance for 2023
As of February 15, 2023, Tyler Technologies is providing the following guidance for the full year 2023:
GAAP and non-GAAP total revenues are both expected to be in the range of $1.935 billion to $1.970 billion.
GAAP diluted earnings per share are expected to be in the range of $4.10 to $4.25 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.50 to $7.65.
Interest expense is expected to be approximately $26 million, including approximately $4 million of amortization of debt discounts and issuance costs.
Pretax share-based compensation expense is expected to be approximately $99 million.
Research and development expense is expected to be in the range of $108 million to $110 million.
Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 21% after discrete tax items including approximately $1 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22%.
Capital expenditures are expected to be in the range of $68 million to $70 million, including approximately $37 million of software development costs. Total depreciation and amortization expense is expected to be approximately $132 million, including approximately $91 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation
Non-GAAP diluted earnings per share excludes the estimated full year impact of share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $99 million, and amortization of acquired software and intangible assets of approximately $91 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $1 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.
Conference Call
Tyler Technologies will hold a conference call on Thursday, February 16, 2023 at 10:00 a.m. ET to discuss the company’s results. Participants can register in advance for the conference through the following link: https://conferencingportals.com/event/dXimaDxA. Registered participants will receive an email with a calendar reminder and dial-in number and PIN that will allow them to listen to the call live.
The live audio webcast and archived replay can also be accessed at the Events & Presentations section of the investor relations website.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list and Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other asset write-offs.
Tyler's non-GAAP tax rate for 2022 was 22.5% and for 2023 is 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. 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.
Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) the continuing effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (2) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (3) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (4) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (5) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (6) material portions of our business require the internet infrastructure to be adequately maintained; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and changes in interest rates; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. A detailed discussion of these factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.
(Comparative results follow)
#TYL_Financial
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2022
2021
2022
2021
Revenues:
Subscriptions
$
256,699
$
229,456
$
1,012,304
$
784,435
Maintenance
117,273
117,721
468,455
474,287
Professional services
55,315
53,790
243,117
209,391
Software licenses and royalties
7,622
19,242
59,406
74,452
Appraisal services
8,540
7,912
34,508
27,788
Hardware and other
6,771
5,416
32,414
21,934
Total revenues
452,220
433,537
1,850,204
1,592,287
Cost of revenues:
Subscriptions, maintenance and professional services
232,880
223,123
953,897
799,158
Software licenses and royalties
1,436
917
6,083
3,552
Amortization of software development
2,514
809
6,507
2,325
Amortization of acquired software
11,310
12,918
52,192
45,601
Appraisal services
6,293
5,509
23,988
19,061
Hardware and other
4,453
3,101
23,674
12,946
Total cost of revenues
258,886
246,377
1,066,341
882,643
Gross profit
193,334
187,160
783,863
709,644
Sales and marketing expense
34,969
33,176
135,743
118,624
General and administrative expense
66,883
67,860
267,324
271,955
Research and development expense
32,667
24,238
105,184
93,481
Amortization of other intangibles
18,104
13,834
61,363
44,849
Operating income
40,711
48,052
214,249
180,735
Interest expense
(8,103
)
(4,987
)
(28,379
)
(23,298
)
Other income, net
1,012
295
1,723
1,544
Income before income taxes
33,620
43,360
187,593
158,981
Income tax provision (benefit)
2,543
(11,422
)
23,353
(2,477
)
Net income
$
31,077
$
54,782
$
164,240
$
161,458
Earnings per common share:
Basic
$
0.75
$
1.33
$
3.95
$
3.95
Diluted
$
0.73
$
1.29
$
3.87
$
3.82
Weighted average common shares outstanding:
Basic
41,707
41,126
41,544
40,848
Diluted
42,419
42,536
42,399
42,244
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
Reconciliation of non-GAAP total revenues
2022
2021
2022
2021
GAAP total revenues
$
452,220
$
433,537
$
1,850,204
$
1,592,287
Non-GAAP adjustments:
Add: Write-downs of acquisition-related deferred revenue
—
639
—
2,678
Non-GAAP total revenues
$
452,220
$
434,176
$
1,850,204
$
1,594,965
Three Months Ended December 31,
Twelve Months Ended December 31,
Reconciliation of non-GAAP gross profit and margin
2022
2021
2022
2021
GAAP gross profit
$
193,334
$
187,160
$
783,863
$
709,644
Non-GAAP adjustments:
Add: Write-downs of acquisition-related deferred revenue
—
639
—
2,678
Add: Share-based compensation expense included in cost of revenues
6,667
6,493
27,486
23,705
Add: Amortization of acquired software
11,310
12,918
52,192
45,601
Non-GAAP gross profit
$
211,311
$
207,210
$
863,541
$
781,628
GAAP gross margin
42.8
%
43.2
%
42.4
%
44.6
%
Non-GAAP gross margin
46.7
%
47.7
%
46.7
%
49.0
%
Three Months Ended December 31,
Twelve Months Ended December 31,
Reconciliation of non-GAAP operating income and margin
2022
2021
2022
2021
GAAP operating income
$
40,711
$
48,052
$
214,249
$
180,735
Non-GAAP adjustments:
Add: Write-downs of acquisition-related deferred revenue
—
639
—
2,678
Add: Share-based compensation expense
24,994
24,366
102,985
104,726
Add: Employer portion of payroll tax related to employee stock transactions
378
1,876
1,571
3,437
Add: Acquisition-related costs
757
777
1,971
23,495
Add: Lease restructuring costs and other asset write-offs
1,623
—
2,782
—
Add: Amortization of acquired software
11,310
12,918
52,192
45,601
Add: Amortization of customer and trade name intangibles
18,104
13,834
61,363
44,849
Non-GAAP adjustments subtotal
$
57,166
$
54,410
$
222,864
$
224,786
Non-GAAP operating income
$
97,877
$
102,462
$
437,113
$
405,521
GAAP operating margin
9.0
%
11.1
%
11.6
%
11.4
%
Non-GAAP operating margin
21.6
%
23.6
%
23.6
%
25.4
%
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
Reconciliation of non-GAAP net income and earnings per share
2022
2021
2022
2021
GAAP net income
$
31,077
$
54,782
$
164,240
$
161,458
Non-GAAP adjustments:
Add: Total non-GAAP adjustments to operating income
57,166
54,410
222,864
224,786
Add: Acquisition-related costs in interest expense
—
—
—
6,407
Less: Tax impact related to non-GAAP adjustments
(17,884
)
(34,887
)
(68,999
)
(96,119
)
Non-GAAP net income
$
70,359
$
74,305
$
318,105
$
296,532
GAAP earnings per diluted share
$
0.73
$
1.29
$
3.87
$
3.82
Non-GAAP earnings per diluted share
$
1.66
$
1.75
$
7.50
$
7.02
Three Months Ended December 31,
Twelve Months Ended December 31,
Detail of share-based compensation expense
2022
2021
2022
2021
Subscriptions, maintenance and professional services
$
6,667
$
6,493
$
27,486
$
23,705
Sales and marketing expense
2,229
1,753
8,800
8,834
General and administrative expense
16,098
16,120
66,699
72,187
Total share-based compensation expense
$
24,994
$
24,366
$
102,985
$
104,726
Three Months Ended December 31,
Twelve Months Ended December 31,
Reconciliation of EBITDA and adjusted EBITDA
2022
2021
2022
2021
GAAP net income
$
31,077
$
54,782
$
164,240
$
161,458
Amortization of customer and trade name intangibles
18,104
13,834
61,363
44,849
Depreciation and amortization included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense
22,627
22,360
89,890
77,651
Interest expense
8,103
4,987
28,379
23,298
Income tax provision (benefit)
2,543
(11,422
)
23,353
(2,477
)
EBITDA
$
82,454
$
84,541
$
367,225
$
304,779
Write-downs of acquisition-related deferred revenue
—
639
—
2,678
Share-based compensation expense
24,994
24,366
102,985
104,726
Acquisition-related costs
757
777
1,971
23,495
Lease restructuring costs and other asset write-offs
1,623
—
2,782
—
Adjusted EBITDA
$
109,828
$
110,323
$
474,963
$
435,678
Three Months Ended December 31,
Twelve Months Ended December 31,
Reconciliation of free cash flow
2022
2021
2022
2021
Net cash provided by operating activities
$
121,857
$
115,010
$
381,455
$
371,753
Less: additions to property and equipment
(5,088
)
(13,149
)
(22,529
)
(33,919
)
Less: investments in software development
(2,065
)
(6,727
)
(27,622
)
(21,693
)
Free cash flow
$
114,704
$
95,134
$
331,304
$
316,141
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
December 31, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
173,857
$
309,171
Accounts receivable, net
577,257
521,059
Short-term investments
37,030
52,300
Prepaid expenses and other current assets
59,098
63,664
Income tax receivable
—
18,137
Total current assets
847,242
964,331
Accounts receivable, long-term portion
8,271
13,937
Operating lease right-of-use assets
50,989
39,720
Property and equipment, net
172,786
181,193
Other assets:
Software development costs, net
48,189
28,489
Goodwill
2,489,308
2,359,674
Other intangibles, net
1,002,164
1,052,493
Non-current investments
18,508
46,353
Other non-current assets
49,960
45,971
Total assets
$
4,687,417
$
4,732,161
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
236,754
$
278,412
Operating lease liabilities
10,736
10,560
Income tax payable
43,667
—
Deferred revenue
568,538
510,529
Current portion of term loans
30,000
30,000
Total current liabilities
889,695
829,501
Revolving line of credit
—
—
Term loans
362,905
718,511
Convertible senior notes due 2026, net
594,484
592,765
Deferred revenue, long-term
2,037
38
Deferred income taxes
148,891
228,085
Operating lease liabilities, long-term
48,049
36,336
Other long-term liabilities
16,967
2,893
Total liabilities
2,063,028
2,408,129
Shareholders' equity
2,624,389
2,324,032
Total liabilities and shareholders' equity
$
4,687,417
$
4,732,161
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2022
2021
2022
2021
Cash flows from operating activities:
Net income
$
31,077
$
54,782
$
164,240
$
161,458
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization
42,122
37,760
159,072
135,624
Losses from sale of investments
1
—
45
—
Share-based compensation expense
24,994
24,366
102,985
104,726
Provision for losses - accounts receivable
2,781
2,831
2,781
2,831
Operating lease right-of-use assets expense
3,729
3,200
12,969
10,216
Deferred income tax (benefit) expense
(54,347
)
2,410
(87,192
)
(13,271
)
Changes in operating assets and liabilities, exclusive of effects of acquired companies
71,500
(10,339
)
26,555
(29,831
)
Net cash provided by operating activities
121,857
115,010
381,455
371,753
Cash flows from investing activities:
Additions to property and equipment
(5,088
)
(13,149
)
(22,529
)
(33,919
)
Purchase of marketable security investments
(9,507
)
(1,766
)
(29,935
)
(77,450
)
Proceeds and maturities from marketable security investments
15,982
16,886
71,034
131,449
Investment in software development
(2,065
)
(6,727
)
(27,622
)
(21,693
)
Cost of acquisitions, net of cash acquired
(46,215
)
(1,312
)
(163,921
)
(2,089,706
)
Other
117
(79
)
443
384
Net cash used by investing activities
(46,776
)
(6,147
)
(172,530
)
(2,090,935
)
Cash flows from financing activities:
Decrease in net borrowings on revolving line of credit
—
—
—
—
Payment on term loans
(90,000
)
(87,500
)
(360,000
)
(145,000
)
Proceeds from term loans
—
—
—
900,000
Proceeds from issuance of convertible senior notes
—
—
—
600,000
Payment of debt issuance costs
—
—
—
(27,165
)
Purchase of treasury shares
—
(2
)
—
(12,977
)
Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award
(1,188
)
50,281
(890
)
96,714
Contributions from employee stock purchase plan
4,037
3,401
16,651
13,158
Net cash (used) provided by financing activities
(87,151
)
(33,820
)
(344,239
)
1,424,730
Net (decrease) increase in cash and cash equivalents
(12,070
)
75,043
(135,314
)
(294,452
)
Cash and cash equivalents at beginning of period
185,927
234,128
309,171
603,623
Cash and cash equivalents at end of period
$
173,857
$
309,171
$
173,857
$
309,171
View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005747/en/
Brian K. Miller
Executive Vice President & CFO
Tyler Technologies, Inc.
972-713-3720
brian.miller@tylertech.com
Source: Tyler Technologies
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Brian Miller, EVP and CFO by phone 972.713.3720
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contact Hala Elsherbini, Senior Director, Investor Relations by phone 972.713.3770
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abrooklyn
4年前
Tyler Technologies Reports Earnings for Third Quarter 2022
Source: Business Wire
Revenues grew approximately 9% organically, excluding COVID-related revenues
Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights:
Both GAAP and non-GAAP total revenues were $473.2 million, up 2.9% from $459.9 million and 2.7% from $460.6 million, respectively, for the third quarter of 2021. On an organic basis (excluding COVID-related revenues), GAAP revenues grew 9.0% and non-GAAP revenues grew 8.8%.
Recurring revenues from maintenance and subscriptions were $371.7 million, up 0.2% from $370.8 million for the third quarter of 2021, and comprised 78.5% of third quarter 2022 revenues, compared to 80.6% for the third quarter of 2021. On an organic basis (excluding COVID-related revenues), recurring revenues were $364.5 million, up 9.3%.
Revenues included a total of $11.7 million from NIC's COVID-related initiatives, which are expected to end in the fourth quarter. Revenues from COVID-related initiatives totaled $43.3 million in the third quarter of 2021.
Operating income was $60.9 million, up 8.4% from $56.2 million for the third quarter of 2021. Non-GAAP operating income was $117.8 million, up 0.9% from $116.8 million for the third quarter of 2021.
Net income was $53.2 million, or $1.26 per diluted share, up 20.5% from $44.2 million, or $1.04 per diluted share, for the third quarter of 2021. Non-GAAP net income was $87.4 million, or $2.06 per diluted share, up 2.8% from $85.0 million, or $2.01 per diluted share, for the third quarter of 2021.
The annual non-GAAP effective tax rate is 22.5%, down from 24.0% in 2021, as the result of an increase in the estimated research tax credit. For the third quarter, the non-GAAP effective tax rate was 19.6% to reflect the change in tax rate for the first nine months of the year.
Cash flows from operations were $129.4 million compared to $205.4 million for the third quarter of 2021. Free cash flow was $115.6 million compared to $192.8 million for the third quarter of 2021.
Adjusted EBITDA was $126.9 million, up 1.5% from $125.0 million for the third quarter of 2021.
Software subscription arrangements comprised approximately 91% of the total new software contract value for the third quarter, compared to approximately 74% for the third quarter of 2021.
Software subscription bookings for the third quarter added $28.1 million in annual recurring revenue.
Annualized non-GAAP recurring revenues (ARR) were $1.49 billion, unchanged from $1.49 billion for the third quarter of 2021 due to a reduction in COVID-related subscription revenue. On an organic basis, excluding COVID-related revenues, annualized non-GAAP ARR grew 11.2%.
Total backlog was $1.88 billion, up 6.3% from $1.77 billion at September 30, 2021.
"Third quarter results were highlighted by strong execution and robust public sector market demand, supported by healthy budgets," said Lynn Moore, Tyler's president and chief executive officer. "We are carrying strong momentum across our divisions, and market activity continues to build and drive larger opportunities and multi-suite wins. Professional services revenue continues to be pressured as we onboard new implementation team members and build capacity to support our growing backlog.
"Overall, we reported solid top and bottom-line results while advancing our cloud-first strategy. Total contract value for new software subscription agreements reached a new high and comprised 91% of our new software contract value this quarter. Contract signings were highlighted by a five-year $54 million contract with the U.S. Department of State for our Case Management Development Platform. This represents the largest win in our Federal Division's history, although only approximately $8 million of the contract value was included in the third quarter bookings due to certain contract provisions.
"In light of the rising interest rate environment, we continue to prioritize the use of excess cash to aggressively reduce debt, while being opportunistic toward strategic acquisitions and investments that enhance our long-term growth strategy. During the quarter, we reduced term debt by $190 million and our net leverage is now under two times proforma EBITDA.
"Looking forward, we are encouraged by continued strength in the public sector markets as reflected in stable or increasing RFP and demo activity across our business units. We are also pleased that our software revenue mix continues to arc towards SaaS even more rapidly than previously expected, even though the increased mix of SaaS arrangements is putting pressure on near-term revenue growth, as license revenue will decline faster than planned this year and in 2023. We have reduced the upper end of our full year revenue guidance to reflect lower license revenue, as well as pressure on professional services revenue related to staffing. The midpoint of our annual non-GAAP EPS guidance, adjusted for the reduction in our effective tax rate, is unchanged," concluded Moore.
Guidance for 2022
As of October 26, 2022, Tyler Technologies is providing the following 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.
Total revenues are expected to include approximately $49 million of COVID-related revenues from NIC's TourHealth and rent relief services. Revenue from TourHealth concluded in the second quarter, while revenue from the rent relief program are expected to end in the fourth quarter.
GAAP diluted earnings per share are expected to be in the range of $3.89 to $4.05 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
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, including approximately $7 million of non-cash amortization of debt discounts and issuance costs.
Pretax non-cash, share-based compensation expense is expected to be approximately $107 million.
Research and development expense is expected to be in the range of $97 million to $100 million.
Fully diluted shares for the year are expected to be in the range of 42.4 million to 42.8 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 14.0% after discrete tax items, including approximately $8 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22.5%, down from 24% based on a change in our estimated research tax credit and its effect on our annual effective GAAP tax rate.
Capital expenditures are expected to be in the range of $58 million to $62 million, including approximately $34 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $147 million, including approximately $112 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation
Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $107 million, amortization of acquired software and intangible assets of approximately $112 million, acquisition-related costs of approximately $1 million, and lease restructuring costs of approximately $1 million. Additionally, the non-GAAP tax rate of 22.5% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $8 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.
Conference Call
Tyler Technologies will hold a conference call on Thursday, October 27, 2022 at 10:00 a.m. ET to discuss the company’s results. The company is offering participants the opportunity to register in advance for the conference through the following link: https://conferencingportals.com/event/dXimaDxA. Registered participants will receive an email with a calendar reminder and dial-in number and PIN that will allow them to listen to the call live.
Participants who do not wish to pre-register for the call may dial in using 888-330-2506 (U.S. and Canada callers) or 240-789-2712 (international callers) and ask for the “Tyler Technologies” call. The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list and Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.
Non-GAAP Financial Measures
Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs. Annualized non-GAAP recurring revenues (ARR) is calculated by annualizing the current quarter's non-GAAP recurring revenues from maintenance and subscriptions.
Tyler currently uses a non-GAAP tax rate of 22.5%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. 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.
Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.
Forward-looking Statements
This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) the effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (2) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (3) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (4) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (5) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (6) material portions of our business require the Internet infrastructure to be adequately maintained; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and increases in interest rates; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.
(Comparative results follow)
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Software licenses and royalties
$
20,269
$
22,673
$
51,784
$
55,210
Subscriptions
254,346
252,942
755,604
554,979
Professional services
63,180
54,624
187,802
155,601
Maintenance
117,338
117,833
351,182
356,566
Appraisal services
8,638
7,146
25,968
19,876
Hardware and other
9,420
4,655
25,643
16,518
Total revenues
473,191
459,873
1,397,983
1,158,750
Software licenses and royalties
3,162
1,547
8,640
4,151
Amortization of acquired software
13,622
12,896
40,882
32,683
Subscriptions, professional services and maintenance
239,928
241,944
721,017
576,035
Appraisal services
5,783
4,506
17,695
13,552
Hardware and other
6,033
2,764
19,219
9,845
Total cost of revenues
268,528
263,657
807,453
636,266
Gross profit
204,663
196,216
590,530
522,484
Selling, general and administrative expenses
103,619
101,847
301,216
289,543
Research and development expense
25,190
24,002
72,517
69,243
Amortization of customer and trade name intangibles
14,941
14,183
43,259
31,015
Operating income
60,913
56,184
173,538
132,683
Interest expense
(9,258
)
(5,396
)
(20,276
)
(18,311
)
Other income, net
131
445
712
1,249
Income before income taxes
51,786
51,233
153,974
115,621
Income tax (benefit) provision
(1,447
)
7,063
20,811
8,945
Net income
$
53,233
$
44,170
$
133,163
$
106,676
Earnings per common share:
Basic
$
1.28
$
1.08
$
3.21
$
2.61
Diluted
$
1.26
$
1.04
$
3.14
$
2.53
Weighted average common shares outstanding:
Basic
41,600
40,888
41,523
40,805
Diluted
42,407
42,286
42,425
42,196
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
Reconciliation of non-GAAP total revenues
2022
2021
2022
2021
GAAP total revenues
$
473,191
$
459,873
$
1,397,983
$
1,158,750
Non-GAAP adjustments:
Add: Write-downs of acquisition-related deferred revenue
—
751
—
2,039
Non-GAAP total revenues
$
473,191
$
460,624
$
1,397,983
$
1,160,789
Three Months Ended September 30,
Nine Months Ended September 30,
Reconciliation of non-GAAP gross profit and margin
2022
2021
2022
2021
GAAP gross profit
$
204,663
$
196,216
$
590,530
$
522,484
Non-GAAP adjustments:
Add: Write-downs of acquisition-related deferred revenue
—
751
—
2,039
Add: Share-based compensation expense included in cost of
revenues
7,181
6,303
20,820
17,212
Add: Amortization of acquired software
13,622
12,896
40,882
32,683
Non-GAAP gross profit
$
225,466
$
216,166
$
652,232
$
574,418
GAAP gross margin
43.3
%
42.7
%
42.2
%
45.1
%
Non-GAAP gross margin
47.6
%
46.9
%
46.7
%
49.5
%
Three Months Ended September 30,
Nine Months Ended September
Reconciliation of non-GAAP operating income and margin
2022
2021
2022
2021
GAAP operating income
$
60,913
$
56,184
$
173,538
$
132,683
Non-GAAP adjustments:
Add: Write-downs of acquisition-related deferred revenue
—
751
—
2,039
Add: Share-based compensation expense
26,912
29,461
77,991
80,360
Add: Employer portion of payroll tax related to employee stock
transactions
86
401
1,196
1,561
Add: Acquisition related costs
183
2,888
1,214
22,718
Add: Lease restructuring costs
1,159
—
1,159
—
Add: Amortization of acquired software
13,622
12,896
40,882
32,683
Add: Amortization of customer and trade name intangibles
14,941
14,183
43,259
31,015
Non-GAAP adjustments subtotal
56,903
60,580
165,701
170,376
Non-GAAP operating income
$
117,816
$
116,764
$
339,239
$
303,059
GAAP operating margin
12.9
%
12.2
%
12.4
%
11.5
%
Non-GAAP operating margin
24.9
%
25.3
%
24.3
%
26.1
%
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
Reconciliation of non-GAAP net income and earnings per share
2022
2021
2022
2021
GAAP net income
$
53,233
$
44,170
$
133,163
$
106,676
Non-GAAP adjustments:
Add: Total non-GAAP adjustments to operating income
56,903
60,580
165,701
170,376
Add: Acquisition related costs in interest expense
—
—
6,407
Less: Tax impact related to non-GAAP adjustments
(22,737
)
(19,772
)
(51,115
)
(61,232
)
Non-GAAP net income
$
87,399
$
84,978
$
247,749
$
222,227
GAAP earnings per diluted share
$
1.26
$
1.04
$
3.14
$
2.53
Non-GAAP earnings per diluted share
$
2.06
$
2.01
$
5.84
$
5.27
Three Months Ended September 30,
Nine Months Ended September 30,
Detail of share-based compensation expense
2022
2021
2022
2021
Subscriptions, professional services and maintenance
$
7,181
$
6,303
$
20,820
$
17,212
Selling, general and administrative expenses
19,731
23,158
57,171
63,148
Total share-based compensation expense
$
26,912
$
29,461
$
77,991
$
80,360
Three Months Ended September 30,
Nine Months Ended September 30,
Reconciliation of EBITDA and adjusted EBITDA
2022
2021
2022
2021
GAAP net income
$
53,233
$
44,170
$
133,163
$
106,676
Amortization of customer and trade name intangibles
14,941
14,183
43,259
31,015
Depreciation and amortization included in cost of revenues, SG&A and other expenses
22,646
21,112
67,262
55,290
Amortization of debt discounts and issuance costs included in interest expense
3,329
1,133
5,600
10,083
Interest expense
5,928
4,262
14,676
8,228
Income tax (benefit) provision
(1,447
)
7,063
20,811
8,945
EBITDA
$
98,630
$
91,923
$
284,771
$
220,237
Write-downs of acquisition-related deferred revenue
—
751
—
2,039
Share-based compensation expense
26,912
29,461
77,991
80,360
Acquisition related costs
183
2,888
1,214
22,718
Lease restructuring costs
1,159
—
1,159
—
Adjusted EBITDA
$
126,884
$
125,023
$
365,135
$
325,354
TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
Reconciliation of free cash flow
2022
2021
2022
2021
Net cash provided by operating activities
$
129,378
$
205,387
$
259,598
$
256,743
Less: additions to property and equipment
(4,684
)
(6,547
)
(17,441
)
(20,770
)
Less: capitalized software development costs
(9,094
)
(6,019
)
(25,557
)
(14,966
)
Free cash flow
$
115,600
$
192,821
$
216,600
$
221,007
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
September 30, 2022
December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
185,927
$
309,171
Accounts receivable, net
561,780
521,059
Short-term investments
39,360
52,300
Prepaid expenses and other current assets
65,704
63,664
Income tax receivable
7,379
18,137
Total current assets
860,150
964,331
Accounts receivable, long-term portion
9,213
13,937
Operating lease right-of-use assets
53,202
39,720
Property and equipment, net
175,196
181,193
Other assets:
Software development costs, net
51,092
28,489
Goodwill
2,449,405
2,359,674
Other intangibles, net
1,004,045
1,052,493
Non-current investments
22,627
46,353
Other non-current assets
50,443
45,971
Total assets
$
4,675,373
$
4,732,161
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities
$
242,434
$
278,412
Operating lease liabilities
10,581
10,560
Deferred revenue
529,233
510,529
Current portion of term loans
30,000
30,000
Total current liabilities
812,248
829,501
Revolving line of credit
—
—
Term loans
452,138
718,511
Convertible senior notes due 2026, net
594,054
592,765
Deferred revenue, long-term
2,473
38
Deferred income taxes
203,204
228,085
Operating lease liabilities, long-term
49,759
36,336
Other long-term liabilities
14,199
2,893
Total liabilities
2,128,075
2,408,129
Shareholders' equity
$
2,547,298
$
2,324,032
Total liabilities and shareholders' equity
$
4,675,373
$
4,732,161
TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
2022
2021
2022
2021
Cash flows from operating activities:
Net income
$
53,233
$
44,170
$
133,163
$
106,676
Adjustments to reconcile net income to cash
provided by operations:
Depreciation and amortization
41,084
36,888
116,950
97,864
Losses (gains) from sale of investments
97
—
44
—
Share-based compensation expense
26,912
29,461
77,991
80,360
Operating lease right-of-use assets expense
4,136
2,982
9,240
7,016
Deferred income tax benefit
(13,709
)
(9,251
)
(32,845
)
(15,681
)
Changes in operating assets and liabilities,
exclusive of effects of acquired companies
17,625
101,137
(44,945
)
(19,492
)
Net cash provided by operating activities
129,378
205,387
259,598
256,743
Cash flows from investing activities:
Additions to property and equipment
(4,684
)
(6,547
)
(17,441
)
(20,770
)
Purchase of marketable security investments
(15,836
)
(7,630
)
(20,428
)
(75,684
)
Proceeds and maturities from marketable security investments
14,457
23,168
55,052
114,563
Investment in software
(9,094
)
(6,019
)
(25,557
)
(14,966
)
Cost of acquisitions, net of cash acquired
(393
)
(89,492
)
(117,706
)
(2,088,394
)
Other
174
424
326
463
Net cash provided (used) by investing activities
(15,376
)
(86,096
)
(125,754
)
(2,084,788
)
Cash flows from financing activities:
Decrease in net borrowings on revolving line of credit
—
(65,000
)
—
—
Payment on term loans
(190,000
)
(57,500
)
(270,000
)
(57,500
)
Proceeds from term loans
—
—
—
900,000
Proceeds from issuance of convertible senior notes
—
—
—
600,000
Payment of debt issuance costs
—
(38
)
—
(27,165
)
Purchase of treasury shares
—
—
—
(12,975
)
Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award
4,405
17,045
298
46,433
Contributions from employee stock purchase plan
4,458
3,557
12,614
9,757
Net cash (used) provided by financing activities
(181,137
)
(101,936
)
(257,088
)
1,458,550
Net (decrease) increase in cash and cash equivalents
(67,135
)
17,355
(123,244
)
(369,495
)
Cash and cash equivalents at beginning of period
253,062
216,773
309,171
603,623
Cash and cash equivalents at end of period
$
185,927
$
234,128
$
185,927
$
234,128
#TYL_Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005745/en/
Brian K. Miller
Executive Vice President & CFO
Tyler Technologies, Inc.
972-713-3720
brian.miller@tylertech.com
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