For the quarter ended June 2024, Tyler Technologies (TYL) reported revenue of $540.98 million, up 7.3% over the same period last year. EPS came in at $2.40, compared to $2.01 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $537.34 million, representing a surprise of +0.68%. The company delivered an EPS surprise of +2.56%, with the consensus EPS estimate being $2.34. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers a ...

Company Performance - Tyler Technologies reported quarterly earnings of $2.40 per share, exceeding the Zacks Consensus Estimate of $2.34 per share, and up from $2.01 per share a year ago, representing an earnings surprise of 2.56% [1] - The company posted revenues of $540.98 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.68%, compared to $504.28 million in the same quarter last year [2] - Over the last four quarters, Tyler Technologies has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Tyler Technologies shares have increased approximately 25.9% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $2.38, with expected revenues of $542.75 million, and for the current fiscal year, the EPS estimate is $9.19 on revenues of $2.13 billion [6] Industry Outlook - The Business - Software Services industry, to which Tyler Technologies belongs, is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook [7] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Tyler Technologies' stock performance [4]

Core Viewpoint - Tyler Technologies (TYL) is expected to report second-quarter 2024 results on July 24, with earnings estimated at $2.34 per share, reflecting a 16.4% increase year-over-year, and revenues projected at $537.3 million, indicating a 6.6% increase from the previous year [1] Revenue Estimates - The second-quarter revenue for Tyler is anticipated to benefit from the demand for its subscription-based SaaS products, with Subscription segment revenues estimated at $331.5 million, representing an 11.3% year-over-year increase [4] - Total revenues from Subscriptions, Professional Services, and Maintenance segments are estimated at $514.7 million, indicating a 7.1% year-over-year increase [6] Segment Performance - Software Licenses and Royalties segment revenues are estimated at $9.4 million, while Professional Services revenues are projected at $67.8 million, showing a 2% year-over-year growth [5] - Maintenance segment revenues are expected to decline by 1% to $115.3 million [5] Recent Developments - Tyler has made two acquisitions in the past 12 months, ARInspect and ResourceX, which are expected to contribute positively to the company's revenue during the quarter [6] Market Conditions - Ongoing macroeconomic and geopolitical challenges, including high interest rates and inflation, may have negatively impacted Tyler's business, leading to delayed procurement processes in the public sector [7] - The shift to cloud solutions is likely to have affected operating margins due to a decline in license revenues and increased operating expenses [8] Earnings Prediction - The current model does not predict an earnings beat for Tyler, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [9]

Subscription Model Gains Traction: To align with clients' evolving needs, industry participants are increasingly adopting subscription and term license-based revenue models, moving away from traditional upfront payment models. Subscription-based models offer greater revenue visibility and higher recurring revenues, benefiting companies in the long term. However, this transition might slow top-line growth as subscription revenues are recognized more gradually compared to upfront term-license payments. The Za ...

TYL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B. For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days. Value Scor ...

Tyler Technologies, Inc.'s (TYL) shares have risen 18.1% year to date, significantly outperforming the Zacks Business - Software Services industry's decline of 1.8%. This robust performance is driven by the increasing adoption of digital technologies by public sector bodies and governments across the United States. TYL has a robust workforce in Maine, with more than 1,250 employees based in the state. The company has consistently been recognized as one of the best places to work in Maine, which is a testame ...

To support its ongoing projects of bringing digital transformation in the public sector and governance, Tyler recently launched a new manufacturing facility in Kingston Springs, TN, to support the growth of its Enterprise Corrections software. So far in 2024, Tyler has gained two major correctional facilities as its clients. It has strengthened the U.S. legal system by working with the Florida Department of Corrections ("FDC") and the Guam Department of Corrections. Tyler (TYL) shares have climbed 16.7% yea ...

Tyler Technologies (TYL) recently launched an electronic lien and title service for vehicle titling in collaboration with Champ Titles, Inc. and the New Jersey Motor Vehicle Commission. This electronic system will eliminate the lengthy paper-based processes and facilitate lienholders to communicate in real time with the commission. Moreover, this digitization is expected to bring transparency to the lien and titling process by eliminating the scope of document manipulation and obfuscation. Furthermore, the ...

So far in 2024, the company has signed deals with the Florida Department of Corrections, Illinois Police Department, Guam Department of Corrections, Jackson Public Schools, Florida-based Collier County, California State Parks, Idaho Supreme Court, Wyoming State Parks, City of Edina and the Commonwealth of Kentucky. The entire setup took a nine-month implementation time and involved TYL's multiple applications, such as Civil Serve, Civil Query, Civil Mobile, GIS Connector and Sales Web. The platform will be ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves significant risk and volatility [1] Group 1: Company Overview - Tyler Technologies (TYL) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Historical EPS growth for Tyler Technologies stands at 10.5%, with projected EPS growth of 17.1% for the current year, surpassing the industry average of 12.6% [5] - Earnings growth is a critical factor for investors, as it often correlates with stock price gains [4] Group 3: Cash Flow Growth - Tyler Technologies has a year-over-year cash flow growth of 0.2%, which is above the industry average of 0.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.6%, compared to the industry average of 13% [7] Group 4: Earnings Estimate Revisions - Recent upward revisions in current-year earnings estimates for Tyler Technologies indicate a positive trend, with the Zacks Consensus Estimate increasing by 5.4% over the past month [9] - Trends in earnings estimate revisions are strongly correlated with near-term stock price movements, making this a significant metric for investors [8] Group 5: Investment Potential - Tyler Technologies has achieved a Growth Score of A and a Zacks Rank of 2, suggesting it is a solid choice for growth investors [10][11]