Tyler Technologies Inc (NYSE:TYL) Q4 2024 Earnings Conference Call February 13, 2025 10:00 AM ET Company Participants Hala Elsherbini - Senior Director of IR Lynn Moore - CEO, President & Director Brian Miller - EVP & CFO Conference Call Participants Alexei Gogolev - JPMorgan Joshua Reilly - Needham & Company Ken Wong - Oppenheimer Saket Kalia - Barclays Alex Zukin - Wolfe Research Michael Turrin - Wells Fargo Charles Strauzer - CJS Securities, Inc. Clarke Jeffries - Piper Sandler Rob Oliver - Robert W. Bai ...

2024 Fourth Quarter Earnings Review 2025 Annual Guidance Tyler Technologies | February 13, 2025 Statement Regarding Use of Non-GAAP Measures Tyler Technologies has provided in this presentation 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, ...

Tyler Technologies, Inc. (TYL) reported fourth-quarter 2024 non-GAAP earnings of $2.43 per share, which beat the Zacks Consensus Estimate by 0.8%. The bottom line was higher than the year-ago quarter’s earnings of $1.89.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Non-GAAP revenues increased 12.5% year over year to $541.1 million. The top line beat the Zacks Consensus Estimate of $539.74 million by 0.3%.The year-over-year improvement in the top line was primarily due to a rise in s ...

Tyler Technologies exceeded revenue expectations as it transitions to cloud-based solutions.Tyler Technologies (TYL 0.13%), a leading provider of integrated software solutions for the public sector, reported its fourth-quarter 2024 earnings on February 12, 2025. The company posted revenues of $541.1 million, exceeding the expected $540 million. Non-GAAP earnings per share (EPS) were on target at $2.43. This quarter highlighted strong performance amidst a strategic pivot to cloud services and recurring reven ...

For the quarter ended December 2024, Tyler Technologies (TYL) reported revenue of $541.13 million, up 12.5% over the same period last year. EPS came in at $2.43, compared to $1.89 in the year-ago quarter.The reported revenue represents a surprise of +0.26% over the Zacks Consensus Estimate of $539.74 million. With the consensus EPS estimate being $2.41, the EPS surprise was +0.83%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

Core Viewpoint - Tyler Technologies reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.41 per share, and showing an increase from $1.89 per share a year ago, indicating a positive earnings surprise of 0.83% [1] Financial Performance - The company achieved revenues of $541.13 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.26% and up from $480.94 million year-over-year [2] - Over the last four quarters, Tyler Technologies has consistently surpassed consensus EPS estimates four times and revenue estimates three times [2] Stock Performance - Tyler Technologies shares have increased approximately 5.7% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $2.53 for the coming quarter and $10.89 for the current fiscal year, with revenues expected to be $562.6 million and $2.36 billion respectively [7] - The estimate revisions trend for Tyler Technologies is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Internet - Software and Services industry, to which Tyler Technologies belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]

Core Viewpoint - Tyler Technologies, Inc. is expected to report its fourth-quarter 2024 results on February 12, with anticipated revenue growth driven by its subscription-based SaaS products, despite challenges in other segments due to market conditions [1][4][7]. Revenue Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $539.7 million, reflecting a 12.2% increase from the previous year [2]. - Subscription segment revenues are estimated at $347.7 million, indicating a year-over-year increase of 21.6% [4]. - Professional Services revenues are projected at $64 million, showing a growth of 4.1% year-over-year [6]. - Maintenance segment revenues are expected to decline by 6.2% to $110.3 million [6]. - Overall, total revenues from Subscriptions, Professional Services, and Maintenance are estimated at $522 million, representing a 12.2% year-over-year increase [6]. Earnings Estimates - The consensus estimate for earnings per share (EPS) is $2.41, which indicates a 27.5% increase from the year-ago quarter [2]. - Tyler Technologies has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 4% [3]. Segment Performance - The transition of public sector entities to SaaS is likely to have negatively impacted the Software Licenses and Royalties segment, with revenues estimated at $7.1 million, reflecting a 7.1% year-over-year decline [5]. - The shift to cloud solutions is expected to weigh on operating margins due to the decline in license revenues [7]. Market Conditions - Macroeconomic factors such as high interest rates and inflation are anticipated to have delayed procurement processes in the public sector, potentially affecting Tyler Technologies' revenue growth [7]. - The company currently holds a Zacks Rank of 4 (Sell) and an Earnings ESP of 0.00%, indicating uncertainty regarding an earnings beat this quarter [8].

Core Insights - Analysts project Tyler Technologies (TYL) will report quarterly earnings of $2.41 per share, a 27.5% increase year over year, with revenues expected to reach $539.74 million, reflecting a 12.2% increase from the same quarter last year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Revenue Estimates - The consensus estimate for 'Revenue- Subscriptions' is $347.74 million, indicating a year-over-year change of +21.6% [4] - 'Revenue- Professional services' is estimated to reach $63.81 million, suggesting a +3.8% change year over year [4] - 'Revenue- Recurring' is projected at $460.93 million, reflecting a +14.2% year-over-year change [4] - 'Revenue- Hardware and other' is estimated at $7.84 million, indicating a -4.7% change year over year [5] - 'Revenue- Software licenses and royalties' is expected to be $7.16 million, suggesting a -6.2% year-over-year change [5] - 'Revenue- Maintenance' is projected at $113.31 million, indicating a -3.6% change from the year-ago quarter [5] - 'Revenue- Non-Recurring' is forecasted to reach $78.82 million, reflecting a +1.9% year-over-year change [6] Gross Profit Estimates - Analysts forecast 'Gross profit- Hardware and other' to reach $3.04 million, contrasting with the year-ago figure of $6.58 million [6] Stock Performance - Over the past month, shares of Tyler Technologies have returned +7.1%, outperforming the Zacks S&P 500 composite's +1.9% change [6] - Currently, TYL carries a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the overall market in the near future [6]

Core Insights - Tyler Technologies (TYL) is positioned to continue its earnings-beat streak, having a history of surpassing earnings estimates, particularly in the last two reports [1][3] - The company reported earnings of $2.52 per share for the most recent quarter, exceeding the expected $2.44 per share, resulting in a surprise of 3.28% [2] - For the previous quarter, Tyler Technologies reported $2.40 per share against an expectation of $2.34 per share, achieving a surprise of 2.56% [2] Earnings Estimates and Predictions - Estimates for Tyler Technologies have been trending higher, influenced by its history of earnings surprises [3] - The stock currently has a positive Earnings ESP of +0.83%, indicating increased analyst optimism regarding its near-term earnings potential [6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat [6] Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it does reduce predictive power [6]

Industry Overview - The Zacks Business-Software Services industry is benefiting from increased demand for digital transformation and cloud adoption, driven by automation and growing enterprise data volumes [1] - The industry consists of companies delivering application-specific software products and services, including finance, sales & marketing, human resources, and supply chain applications [4] - Key end markets include manufacturing, retail, banking, insurance, telecommunications, healthcare, and public sectors [5] Key Trends - Transition to cloud-based solutions is creating opportunities, with companies incorporating AI to enhance application functionality [6] - Subscription-based revenue models are gaining traction, providing higher recurring revenues but potentially impacting near-term top-line growth [7] - Continuous mergers and acquisitions are expanding product offerings, though profitability may be affected by increased digital investments [8] - Worldwide IT spending is forecasted to grow 9.3% to $5.74 trillion in 2025, with software spending expected to increase 14% year-over-year [9] - Elevated operating expenses, including R&D and sales investments, may strain margins in the near term [10] Industry Performance and Valuation - The industry has underperformed the broader Computer and Technology sector (28.3% vs 35.8%) but outperformed the S&P 500 (26.2%) over the past year [14] - The industry's forward 12-month price-to-earnings ratio of 29.4X is higher than the S&P 500's 25.08X but lower than the sector's 32.02X [15] Key Companies - **Q2 Holdings**: Provides cloud-based digital banking and lending solutions, with shares up 131.9% in 2024 and a 2025 earnings estimate of $2.11 per share [16][17][18] - **Cognizant**: Offers digital services, consulting, and infrastructure services, with a 1.8% share price increase in 2024 and a 2025 earnings estimate of $4.97 per share [19][20][21] - **Tyler Technologies**: Provides integrated information management solutions to the public sector, with shares up 39% YTD and a 2025 earnings estimate of $10.89 per share [21][22][23] - **Guidewire Software**: Offers software solutions for property and casualty insurers, with shares up 54.6% in 2024 and a 2025 earnings estimate of $2.06 per share [23][24][25]