Tyler Technologies Corp (TYL) 銘柄情報

TYL share price Descending Triple Bottom Breakdown on 27-Dec-2024.

TYL new 52 week high

Tyler Technologies Reports Earnings for Third Quarter 2024
https://s201.q4cdn.com/385562537/files/doc_financials/2024/q3/24-48-Q3-earnings-PR.pdf
Tyler Technologies Reports Earnings for Third Quarter 2024
Strong results with 20% growth in SaaS revenues and 49% growth in cash flows
PLANO, Texas – October 23, 2024 – Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth and value
equity company, today announced financial results for the third quarter ended September 30, 2024.
Third Quarter 2024 Financial Highlights (all comparisons are to the third quarter of 2023):
Revenues
Total revenues were $543.3 million, up 9.8%. On an organic basis, revenues grew 9.4%.
Recurring Revenues
Recurring revenues from subscriptions and maintenance were $462.8 million, up 12.1%, and comprised
85.2% of total revenues, up from 83.4%. On an organic basis, recurring revenues grew 11.8%.
• Subscription revenues were $347.2 million, up 17.6%. On an organic basis, subscription revenues
grew 17.3%. Within subscriptions:
? SaaS revenues grew 20.3% to $166.6 million. On an organic basis, SaaS revenues grew
19.7%.
? Transaction-based revenues grew 15.2% on an organic basis to $180.6 million.
? SaaS arrangements comprised approximately 97% of the total new software contract value,
up from approximately 80%.
• Annualized recurring revenue (ARR) was $1.85 billion, up 12.1%.
Earnings/EBITDA
• GAAP operating income was $82.8 million, up 29.5%. Non-GAAP operating income was $137.8
million, up 12.4%.
• GAAP net income was $75.9 million, or $1.74 per diluted share, up 61.4%. Non-GAAP net income
was $110.0 million, or $2.52 per diluted share, up 20.0%.
• Adjusted EBITDA was $152.4 million, up 15.0%.
Cash Flow
• Cash flow from operations was $263.7 million, up 48.6%.
• Free cash flow was $252.9 million, up 55.5%.
• During the third quarter, cash tax payments included approximately $6 million related to IRC Section
174 capitalization rules.
Tyler Technologies Reports Earnings
for Third Quarter 2024
October 23, 2024
Page 2
"We carried our momentum from the first half of the year into the third quarter and delivered remarkable
results," said Lynn Moore, Tyler's president and chief executive officer. "SaaS and transaction revenues fueled
our growth, as both exceeded our expectations. Even as SaaS adoption accelerated to 97% of our new
software contract value, our non-GAAP operating margin expanded to 25.4%, benefiting from our cloud
efficiency initiatives and improved professional services margins. Free cash flow reached a new quarterly
high, up 55.5%.
"Activity in the public sector market remains robust and our elevated contract volume in the third quarter
reflects solid execution under our go-to-market strategy, including growing cross-sell wins. Annual recurring
revenue added from new SaaS contracts in the third quarter increased 55% over last year. We're also pleased
that the total contract value signed this quarter for on-premises client flips to the cloud was more than triple
that of last year's third quarter. While our progress toward our 2025 and 2030 targets will not be linear, our
confidence in achieving those targets continues to grow with our success in executing against each of the
pillars supporting those objectives. We have revised our full-year 2024 guidance to reflect our year-to-date
results and our positive outlook for the fourth quarter," concluded Moore.
Guidance for 2024
As of October 23, 2024, Tyler Technologies is providing the following guidance for the full year 2024:
• Total revenues are expected to be in the range of $2.125 billion to $2.145 billion.
• GAAP diluted earnings per share are expected to be in the range of $6.13 to $6.28.
• Non-GAAP diluted earnings per share are expected to be in the range of $9.47 to $9.62.
• Free cash flow margin is expected to be in the range of 21% to 23%.
• Research and development expense is expected to be in the range of $119 million to $122 million.
• Capital expenditures are expected to be in the range of $47 million to $49 million, including
approximately $31 million of capitalized software development costs.

TYL new 52 week high

TYL new 52 week high

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

Tyler Technologies Named to America’s Best Midsize Companies List

Source: Business Wire
TIME recognizes Tyler on its inaugural 2024 list

Tyler Technologies, Inc. (NYSE: TYL) was recently recognized on the inaugural list of TIME’s “America’s Best Midsize Companies 2024.” This award marks the first time Tyler has been included on this list.

“It is an honor to be recognized by TIME as one of America’s best midsize companies. This recognition showcases our reputation as a responsible and innovative company,” states Lynn Moore, president and CEO of Tyler. “Here at Tyler, we strive to create a desirable workplace for our team members while also working hard toward the common goal of creating stronger, smarter, and safer communities.”

TIME collaborated with analytics firm Statista to identify America’s best midsize companies based on three important factors: employee satisfaction, revenue growth, and sustainability transparency. The selection process involved evaluating companies by using more than 15 different evaluation criteria. All companies considered are based in the United States and have generated revenue ranging from $100 million to $10 billion in 2022 and 2023.

Tyler was recognized as one of 500 midsize companies in various industries, including banking and financial services, business services and supplies, information technology, transportation, professional services, and hospitality.

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 on 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.

#TYL_General


View source version on businesswire.com: https://www.businesswire.com/news/home/20240718657114/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com

Tyler Technologies Reports First Quarter 2024 Results

Source: Business Wire
Tyler Technologies, Inc. (NYSE: TYL), a large-cap growth technology company, today announced financial results for the first quarter ended March 31, 2024. The company’s earnings release can be accessed via the News section of Tyler’s investor relations website here: https://investors.tylertech.com/news/default.aspx.

Tyler Technologies will hold a conference call on Thursday, April 25, 2024, at 10:00 a.m. ET to discuss its first quarter 2024 results. Participants can pre-register for the teleconference at the following link: https://registrations.events/direct/Q4I5573497. Participants can dial 800-715-9871 (toll-free) or 646-307-1963 (toll) and enter conference ID 55734 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 on 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.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20240424625118/en/

Hala Elsherbini
Senior Director, Investor Relations
Tyler Technologies, Inc.
972-713-3770
hala.elsherbini@tylertech.com

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

TYL new 52 week high

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

Tyler Technologies Acquires ARInspect

Source: Business Wire
Acquisition to bolster Tyler’s platform technologies with intelligent field applications

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired ARInspect, a leading provider of artificial intelligence (AI) powered machine learning solutions for public sector field operations.

Through this acquisition, Tyler adds ARInspect’s AI powered, data driven platform to its portfolio, extending Tyler’s Application Platform and other solutions with intelligent edge technology. Tyler plans to leverage ARInspect’s technology across its state and federal verticals with a focus on all regulated entities, including environmental protection, disaster recovery, and human services.

“Tyler understands the challenges that government agencies have in providing resources to field workers, including access to smart capture tools, real-time data, and the decision-making capabilities that can impact effectiveness,” said Brian Combs, president of Tyler’s Platform Solutions Division. “ARInspect’s platform and expertise in AI and machine learning combined with Tyler’s public sector experience and robust portfolio will help deliver on our promise to create smarter, safer, and stronger communities for our clients.”

ARInspect’s advanced AI and machine learning platform allows public sector field workers to work independently and to manage all activities, from pre-arrival set-up through reporting and follow-up, in the field. Beyond just automation and digitization of processes, ARInspect analyzes historical data, completed inspections, violations, integrated census data, and more. This analysis not only guides and assists field workers on site but also helps agencies identify sites, assets, and facilities that may be a risk to residents and the community.

“Over the last few years, we have seen a great demand for public sector edge technology with the power of AI and automation,” said Vivek Mehta, founder and chief executive officer of ARInspect. “We couldn’t be more excited to combine our expertise with Tyler’s to provide a powerful and user-friendly field operations platform. Our similar values and commitment make this the ideal partnership for all ARInspect and Tyler clients.”

Fairfax, Virginia-based ARInspect was founded in 2017. The ARInspect team will join Tyler’s Platform Solutions Division.

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 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.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20231030117013/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com

Tyler Technologies Acquires Computing System Innovations

Source: Business Wire
Acquisition to elevate Tyler’s electronic filing and redaction offerings

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired Computing System Innovations, LLC (CSI), a company that provides the leading artificial intelligence (AI) automation, redaction, and indexing solution for courts, recorders, attorneys, and others.

Through this acquisition, Tyler adds CSI’s AI-driven redaction and indexing solution to its portfolio, bringing automated data entry and document processing options to current and prospective clients. In addition, Tyler plans to leverage CSI’s AI and automation technology across other Tyler verticals, including Municipal & Schools, Property & Recording, and Platform Solutions.

“CSI and Tyler have both served the court technology space for many years and have worked as partners on behalf of Tyler’s clients often, so we are thrilled to officially welcome them to Tyler,” said Brian McGrath, president of Tyler’s Courts & Justice Division. “CSI’s expertise in AI and machine learning-powered process automation combined with Tyler’s expansive footprint will help us deliver even stronger electronic filing and Enterprise Justice solutions to our clients.”

CSI’s Intellidact Platform is a suite of applications that enhance document processing and identity protection with AI technology. These applications include data redaction; data extraction; document classification; and process automation. Tyler’s eFile & Serve solution allows users to electronically file documents with the court via a secure, web-based portal. The addition of CSI’s platform will elevate the eFile & Serve solution by making the filing process quicker, less redundant, and more accurate.

CSI has more than 80 clients across the United States, including the United States Army; the Supreme Court of Virginia; the State of Iowa; the City of New York; and Tarrant County, Texas. The company has won multiple industry awards due to its significant and transformative impact in the justice technology space.

“We have seen great demand from the public sector – and courts specifically – for AI-powered document automation that significantly reduces manual labor of document review and data entry. We couldn’t be more excited to combine our expertise with Tyler’s to provide AI-enabled document automations within Tyler’s impressive product suites,” said Henry Sal, president and CEO, CSI.

Orlando, Florida-based CSI was founded in 1987 by Henry Sal and Glen Johnson. Management and staff will become part of Tyler’s Courts & Justice Division, and continuing employees will remain in their current office locations.

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 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.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20230808132837/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com

Tyler Technologies Reports Earnings for Second Quarter 2023

Source: Business Wire
Double-digit organic growth driven by 20% increase in SaaS revenues

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Financial Highlights:

Revenues

Total revenues were $504.3 million, up 7.6% from the second quarter of 2022. On an organic basis, revenues grew 10.4%.

Recurring Revenues

Recurring revenues from maintenance and subscriptions were $414.3 million, up 11.2% from the second quarter of 2022, and comprised 82.2% of total revenues (compared to 79.5% for the second quarter of 2022). On an organic basis, recurring revenues grew 10.8%.

Subscription revenues were $297.8 million, up 16.4% from the second quarter of 2022. On an organic basis, subscription revenues grew 16.0%. Within subscriptions:
SaaS revenues grew organically 20.0% to $131.5 million.
Transaction-based revenues grew 13.7% to $166.3 million. On an organic basis, transaction-based revenues grew 12.8%.
SaaS arrangements comprised approximately 82% of the total new software contract value, compared to approximately 74% for the second quarter of 2022.
Annualized recurring revenue (ARR) was $1.66 billion, up 11.2% from the second quarter of 2022.
Earnings/EBITDA

GAAP operating income was $61.9 million, up 9.0% from the second quarter of 2022. Non-GAAP operating income was $115.9 million, up 4.8% from the second quarter of 2022.
GAAP net income was $49.1 million, or $1.15 per diluted share, up 23.0% from the second quarter of 2022. Non-GAAP net income was $85.9 million, or $2.01 per diluted share, up 8.1% from the second quarter of 2022.
Adjusted EBITDA was $125.5 million, up 5.4% from the second quarter of 2022.
Cash Flow

Cash flows from operations were negative $19.2 million, compared to $76.7 million for the second quarter of 2022. Free cash flow was negative $33.2 million, compared to $60.0 million for the second quarter of 2022. Cash flows in the quarter were impacted by incremental cash tax payments of $90 million related to the current status of IRC Section 174 capitalization rules.

"Tyler delivered exceptionally strong second quarter results that exceeded expectations across our key performance measures. We reached a new milestone for total quarterly revenues, surpassing the $500 million mark for the first time," said Lynn Moore, Tyler's president and chief executive officer. "We achieved organic revenue growth of 10.4% while our SaaS mix expanded to 82% of our new software contract value. Most importantly, SaaS revenues grew 20% organically, our 10th consecutive quarter of SaaS revenue growth of 20% or more. Additionally, while operating margins continue to be pressured by our cloud transition, we remain on track to return to operating margin expansion in 2024.

"The public sector market remains strong, with our key sales activity indicators generally at or above pre-COVID highs. We're pleased with our progress with strategic initiatives that leverage our unmatched installed client base and broad product portfolio to drive cloud migrations, cross-sell and upsell opportunities, and payments expansion. Our year-to-date performance demonstrates solid execution against our cloud-first strategy and the mid- to long-term goals outlined during our recent Investor Day," concluded Moore.

Guidance for 2023

As of July 26, 2023, Tyler Technologies is providing the following guidance for the full year 2023:

Total revenues are expected to be in the range of $1.940 billion to $1.965 billion.
GAAP diluted earnings per share are expected to be in the range of $3.87 to $4.02 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 $7.60 to $7.75.
Interest expense is expected to be approximately $25 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 $113 million to $114 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 15.5% after discrete tax items, including approximately $11 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 $63 million to $65 million, including approximately $37 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $149 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 and other asset write-off costs of approximately $2 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $11 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, July 27, 2023, 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, 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 asset write-offs. 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.

(Comparative results follow)

Source: Tyler Technologies

#TYL_Financial

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 2023

https://www.sec.gov/Archives/edgar/data/860731/000086073119000009/tyl12312018-10k.htm

Tyler Technologies Acquires Safeground Analytics

Source: Business Wire
Acquisition to elevate appraisal services offerings for assessment community

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired Safeground Analytics, a company providing exemplary real estate appraisals and assessments for states, counties, and municipalities. Safeground brings an experienced team of appraisers, analysts, statisticians, economists, computer scientists, and assessors to provide residential and commercial reassessments, bolstering Tyler’s existing appraisal services business.

“Tyler has been the leader in the appraisal market for more than 80 years, and we remain committed to strengthening our service offerings in this space,” said Mark Hawkins, president of Tyler’s Property & Recoding Division. “Safeground has been our partner on numerous valuation projects over the years, and we continue to be impressed by the company’s strong client retention, their deep appraisal experience – particularly with complex commercial properties – and their commitment to supporting the education and training of assessors. We are excited to welcome them to the Tyler team.”

Since 2015, Tyler has worked with Safeground on multifaceted valuation projects in New England and is currently contracting its services for three county-wide commercial reassessments in Delaware. Safeground has a strong presence in the New England and mid-Atlantic markets, which complements Tyler’s nationwide appraisal footprint.

In addition to appraisal services, Safeground brings expertise in litigation support and expert witness testimony for property appraisal matters, as well as auditing and monitoring services, expanding Tyler’s appraisal services offerings. The company is experienced in providing education training courses to further strengthen and grow Tyler’s professional services offerings to the assessment community.

“Joining a company with such a broad – and growing – footprint means exciting opportunities to expand our appraisal services and benefit assessors nationwide,” said John Valente, chief executive officer of Safeground. “Tyler and Safeground share similar values, expertise, and a commitment to International Association of Assessing Officers (IAAO) technical standards for fair and equitable property assessments. We are excited to integrate our expertise and make an impact on nationwide appraisal services.”

Founded by John Valente, Safeground is currently based in Northampton, Massachusetts. The Safeground team will join Tyler’s Property & Recording Division but will remain in New England as remote employees. John will serve as Northeast Regional Appraisal Manager.

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.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005225/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com

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

VIEW ALL NEWS
CONTACT US

Brian Miller, EVP & CFO

Brian Miller, EVP and CFO by phone 972.713.3720
Brian Miller, EVP and CFO SEND EMAIL

Hala Elsherbini, Senior Director, Investor Relations

contact Hala Elsherbini, Senior Director, Investor Relations by phone 972.713.3770
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FORM 10-K
(Annual Report)
Filed 02/22/23 for the Period Ending 12/31/22

https://www.otcmarkets.com/filing/conv_pdf?id=16425151&guid=Cs4-kWJiMHfPdth

Tyler Technologies to Acquire Rapid Financial Solutions

Source: Business Wire
Acquisition to bolster Tyler’s payments offering for all clients

Tyler Technologies, Inc. (NYSE: TYL) announced today it has signed a definitive agreement to acquire Rapid Financial Solutions (Rapid), a leading provider of reliable, scalable, and secure payments with best-in-class card issuance and digital disbursement capabilities. The purchase price is approximately $68 million in cash and Tyler stock, subject to certain customary adjustments at closing. The acquisition is expected to close in the fourth quarter of 2022.

Through this acquisition, Tyler will offer Rapid’s payments platform to local, state, and federal government clients to enhance their payments disbursement process and improve the timeliness and accuracy of their transactions with consumers. Rapid will join Tyler’s Payments business unit, which is part of Tyler’s NIC Division.

“As a leader in the payments solutions market for 20 years, we understand our clients’ challenges when it comes to disbursing payments. This includes required paperwork, processing paper checks, and the ability to provide immediate access of funds to recipients,” said Elizabeth Proudfit, president of Tyler’s NIC Division. “The acquisition of Rapid allows us to offer our public sector clients a proven and trusted payments platform which makes disbursing these payments easy, quick, and secure.”

Rapid is uniquely positioned to scale as jurisdictions are moving away from cash and paper checks to respond to consumers’ timely settlement expectations. Its more than 1,500 customers nationwide include courts, county offices, and correctional facilities, who use Rapid’s solutions to make payments related to juries, restitution, inmate release, and probation. Tyler serves approximately 7,200 clients in the payments space, helping them process 455 million transactions representing $28.9 billion in 2021.

“Over the last few years in particular, there has been tremendous demand at the federal, state, and local levels for our payments platform solutions. We couldn’t be more excited to be joining Tyler at this time,” said Daren Jackson, founder and chief executive officer of Rapid. “Our two organizations have a common focus on continuous innovation and a shared passion for making customer interactions stronger and more secure. We look forward to expanding on our payments success with Tyler as we serve the public sector together.”

Logan, Utah-based Rapid was founded in 2010. Management and staff will become part of Tyler’s NIC Division, and current employees will remain in their office locations.

About Tyler Technologies and NIC

Acquired by Tyler Technologies (NYSE: TYL) on April 21, 2021, NIC is a leader in digital government solutions and payments, partnering with government to deliver user-friendly digital services that make it easier and more efficient to interact with government. NIC and Tyler are united in their mission to empower public sector entities to operate more efficiently and connect more transparently with their constituents and with each other. 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 named to Government Technology's GovTech 100 list five times and has been recognized three times on 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.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005190/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com

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