Tyler Technologies (TYL) FY Conference August 13, 2025 02:55 PM ET Company ParticipantsBrian Miller - EVP & CFOConference Call ParticipantsKen Wong - MD & Senior AnalystKen WongGood afternoon, everyone. Welcome to the tail end of day three at the Oppenheimer Virtual Tech Conference. I'm Ken Wong, Software Analyst here at Oppenheimer. Extremely happy to have with us Brian Miller, EVP and Chief Financial Officer at Tyler. Brian, welcome.Brian MillerThank you. Thanks for having me.Ken WongSo, I think just abou ...

Financial Data and Key Metrics Changes - Total revenues for Q2 were $596.1 million, up 10.2% year-over-year [14] - Non-GAAP operating margin expanded by 200 basis points to 26.5% [17] - Free cash flow grew 80.9% to $88 million, significantly exceeding expectations [7][18] Business Line Data and Key Metrics Changes - SaaS revenues increased by 21.5% to $189.6 million, marking the eighteenth consecutive quarter of SaaS growth of 20% or more [6][14] - Transaction revenues grew 21.3% to $215.5 million, driven by higher transaction volumes and increased adoption of new services [15] - Professional services revenues declined by 18.5% to $58.6 million due to a focus on higher-margin services [15] Market Data and Key Metrics Changes - Total annualized recurring revenue was approximately $2.07 billion, up 15.2% [17] - The sales pipeline remains strong, supported by stable budgets aligned with technology investments [8] Company Strategy and Development Direction - The company is advancing its cloud-first strategy, focusing on a unified release stream to enhance scalability and innovation [8] - Key growth pillars include completing the cloud transition, leveraging the large client base, growing the payments business, and expanding into new markets [8] - The acquisition of Emergency Networking enhances the public safety portfolio and expands the total addressable market [12][110] Management's Comments on Operating Environment and Future Outlook - Management noted no fundamental change in public sector demand or purchasing behavior, with a strong sales pipeline [8] - The macro environment is stabilizing, with an increase in RFPs for ERP solutions by 25% since Q1 [36] - The company revised its annual guidance for 2025, expecting total revenues between $2.33 billion and $2.36 billion, implying approximately 10% growth [19] Other Important Information - The company was recognized as a leader in the Gartner Magic Quadrant for cloud-based ERP for U.S. local government [11] - The recent passage of the One Big Beautiful Bill Act is expected to lower cash tax payments significantly, enhancing free cash flow margins [18] Q&A Session Summary Question: Insights on SaaS bookings and their components - Management highlighted that the strength in SaaS bookings was driven by expansions, renewals, and new deals, with a strong renewal period contributing significantly [32] Question: Evolution of sales cycles and pipeline improvements - Management noted that the sales pipeline remains strong, with an increase in RFPs and a general stabilization in the macro environment [35][38] Question: Concerns regarding state budgets and federal responsibilities - Management indicated that state budgets are relatively flat and that the company does not foresee significant changes in buying behavior due to federal responsibilities [42] Question: Clarification on free cash flow and its seasonality - Management explained that the strong free cash flow was driven by higher transaction revenues and that the third quarter is typically the strongest for free cash flow [48][49] Question: Progress on cloud flips and their impact - Management expects cloud flips to grow around 25% year-over-year, with larger dollar values associated with these flips as more clients transition to the cloud [55][99] Question: Update on transaction-based revenue performance - Management attributed strong transaction revenue performance to increased volumes, new customer relationships, and successful cross-selling efforts [80][81]

Financial Data and Key Metrics Changes - Total revenues for Q2 were $596.1 million, up 10.2% year-over-year [13] - Non-GAAP operating margin expanded by 200 basis points to 26.5% [17] - Free cash flow grew 80.9% to $88 million, significantly exceeding expectations [7][18] Business Line Data and Key Metrics Changes - SaaS revenues grew 21.5% to $189.6 million, marking the eighteenth consecutive quarter of over 20% growth [6][13] - Transaction revenues increased 21.3% to $215.5 million, driven by higher transaction volumes and new services [14] - Professional services revenues declined 18.5% to $58.6 million due to a focus on higher-margin services [14] Market Data and Key Metrics Changes - Total annualized recurring revenue reached approximately $2.07 billion, up 15.2% [17] - SaaS bookings increased 47.7% sequentially from Q1 and 8.2% year-over-year [15] - The sales pipeline remains strong, with no fundamental changes in public sector demand [8] Company Strategy and Development Direction - The company is advancing its cloud-first strategy, focusing on digital modernization and AI integration [8] - Key growth pillars include completing the cloud transition, leveraging the client base, growing the payments business, and expanding into new markets [8] - The acquisition of Emergency Networking enhances the public safety portfolio and expands the total addressable market [12] Management's Comments on Operating Environment and Future Outlook - Management noted stable market demand and strong execution, despite some delays in procurement processes [7][8] - The outlook for the remainder of the year is positive, with revised annual guidance expecting total revenues between $2.33 billion and $2.36 billion [19] - Management expressed confidence in the sales pipeline and the ability to navigate macroeconomic uncertainties [40][46] Other Important Information - The company was recognized as a leader in the Gartner Magic Quadrant for cloud-based ERP for U.S. local government [11] - The recent passage of the One Big Beautiful Bill Act is expected to lower cash tax payments significantly, enhancing free cash flow margins [18] Q&A Session Summary Question: Insights on SaaS bookings and their components - Management highlighted that the strength in SaaS bookings was driven by renewals and expansions, with a significant improvement in new deals from Q1 [30][34] Question: Changes in sales cycles and pipeline improvements - Management noted that the sales cycle has stabilized, with an increase in RFPs and a strong pipeline despite previous uncertainties [37][40] Question: Impact of the One Big Beautiful Bill Act on cash flow - The impact of the bill is expected to lower cash tax payments significantly, contributing to a higher free cash flow margin [50][51] Question: Trends in cloud flips and their impact on ARR - Management expects cloud flips to grow around 25% year-over-year, with larger dollar values associated with these flips [58][104] Question: Performance drivers for transaction-based revenue - The strong performance in transaction revenues was attributed to increased volumes, new customer relationships, and successful cross-selling efforts [81][84]

2025 Second Quarter Earnings Review Tyler Technologies | July 31, 2025 Statement Regarding Use of Non-GAAP 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 d ...

Financial Performance - For the quarter ended June 2025, Tyler Technologies reported revenue of $596.12 million, reflecting a 10.2% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $2.91, up from $2.40 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $586.23 million by 1.69% [1] - The EPS also surpassed the consensus estimate of $2.78 by 4.68% [1] Key Metrics - Annualized Recurring Revenues (ARR) reached $2.07 million, slightly above the average estimate of $2.03 million from five analysts [4] - Subscription revenue was $405.08 million, exceeding the average estimate of $391.37 million and representing a 21.4% year-over-year increase [4] - Maintenance revenue was $112.12 million, slightly above the average estimate of $110.33 million, but down 2.8% year-over-year [4] - Revenue from hardware and other sources was $16.64 million, surpassing the estimated $11.09 million and showing a 13% increase year-over-year [4] - Software licenses and royalties revenue was $3.66 million, below the estimated $4.67 million, marking a significant decline of 31.3% year-over-year [4] - Professional services revenue was $58.61 million, compared to the estimated $68.77 million, reflecting an 18.5% decrease year-over-year [4] Stock Performance - Over the past month, shares of Tyler Technologies have returned -6.4%, while the Zacks S&P 500 composite has increased by 3.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Tyler Technologies (TYL) came out with quarterly earnings of $2.91 per share, beating the Zacks Consensus Estimate of $2.78 per share. This compares to earnings of $2.4 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +4.68%. A quarter ago, it was expected that this information management software provider would post earnings of $2.56 per share when it actually produced earnings of $2.78, delivering a surprise of +8.59%.Over th ...

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 June 30, 2025 OR ☒ PART I. FINANCIAL INFORMATION ITEM 1. Financial Statements TYLER TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File Number 1-1 ...

Core Insights - Tyler Technologies, Inc. (TYL) is set to report second-quarter 2025 results on July 30, with expected revenues of $586.2 million, reflecting an 8.4% year-over-year increase and earnings per share (EPS) estimated at $2.78, indicating a 15.8% increase from the previous year [1][10]. Revenue Breakdown - The anticipated revenue from the Subscription segment is $387.6 million, representing a 16.1% year-over-year growth, driven by strong demand for subscription-based software-as-a-service (SaaS) products as the public sector transitions to cloud-based systems [3]. - The Software Licenses and Royalties segment is projected to generate $4.4 million, which indicates a 16.7% decline year-over-year due to the ongoing shift to SaaS [4]. - Professional Services revenue is estimated at $71 million, reflecting a 1.3% decline year-over-year, while the Maintenance segment is expected to generate $110 million, indicating a 4.6% decrease [5]. - Overall, total revenues from all segments are estimated at $568.5 million, marking a 9.1% increase year-over-year [5]. Market Conditions - Macroeconomic uncertainties, including high interest rates and inflation, may have negatively impacted Tyler Technologies' business, leading to delayed procurement processes and extended sales cycles in the public sector [6]. - The transition to cloud services is expected to exert pressure on gross margins due to the decline in license revenues [7]. Earnings Prediction - Current analysis indicates that the model does not predict a definitive earnings beat for Tyler Technologies, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [8].

Core Points - Georgia Power has appointed Tyler Cook as senior vice president, chief financial officer, and treasurer, effective July 31, 2025, succeeding Aaron Abramovitz who will move to Southern Company as senior vice president of finance and treasurer [2][3] - Tyler Cook brings nearly 25 years of experience within the Southern Company system and has played a significant role in shaping long-term financial strategies and driving enterprise-wide transformation [2][3] - The leadership transition reflects the depth of talent within the organization and emphasizes the company's commitment to serving customers and communities [2] Company Overview - Georgia Power is the largest electric subsidiary of Southern Company, serving 2.8 million customers across Georgia [4] - The company is dedicated to delivering clean, safe, reliable, and affordable energy, utilizing a diverse generation mix that includes nuclear, coal, natural gas, and renewables [4] - Georgia Power is recognized for its customer satisfaction, being an industry leader according to J.D. Power [4]

Core Viewpoint - Tyler Technologies, Inc. has been downgraded to a Strong Sell rating due to its high stock valuation, leading to a stock price drop of approximately 3% since the downgrade, which is significantly lower than the S&P 500 Index's performance [1]. Company Summary - The stock price of Tyler Technologies, Inc. has underperformed compared to the S&P 500 Index, which has shown positive returns during the same period [1].