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]

Tyler Technologies (TYL) shares have gained 46.9% in the year-to-date period, outperforming the Zacks Business - Software Services industry, Zacks Computer and Technology Sector and S&P 500 index’s return of 21.4%, 28.8% and 25.1%, respectively. TYL’s outperformance can be attributed to its steady flow of customer wins, strong partnerships and robust financials.Tyler recently signed a multi-year partnership with CourtCall. Together, the two companies will enhance remote and hybrid court hearings by streamli ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Even though momentum is a popular stock cha ...

My previous investment thought on Tyler Technologies (NYSE: TYL ) (published on 26 th July) was a buy rating because the growth outlook for its subscription revenue remains bright, and that should drive a step upI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimate ...

Tyler Technologies TYL reported better-than-expected third-quarter adjusted EPS results and raised its FY24 adjusted EPS guidance, after the closing bell on Wednesday.Tyler Technologies reported quarterly earnings of $2.52 per share which beat the analyst consensus estimate of $2.43 per share. The company reported quarterly sales of $543.34 million which missed the analyst consensus estimate of $547.35 million.Tyler Technologies shares fell 0.8% to trade at $606.79 on Friday.These analysts made changes to t ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2024 were $543.3 million, an increase of 9.8% year-over-year, with organic growth of 9.4% [17] - Subscription revenue increased by 17.6%, with SaaS revenues growing by 20.3% to $166.6 million [17] - Non-GAAP operating margin expanded to 25.4%, up 60 basis points from the previous year [19] - Free cash flow reached a new quarterly high of $252.9 million, up 55.5% [20] Business Line Data and Key Metrics Changes - Recurring revenues grew by 12.1%, comprising 85% of total revenues [6] - New software bookings for SaaS contracts reached approximately $105.6 million, up 78% year-over-year [7] - The Courts & Justice business secured significant contracts, including a $35 million deal with Kentucky Court of Justice [10] Market Data and Key Metrics Changes - SaaS arrangements accounted for 97% of new software contract value in Q3, compared to 80% last year [17] - The public sector market remains robust, supported by healthy budgets and a focus on modernizing systems through cloud adoption [8] Company Strategy and Development Direction - The company focuses on a cloud-first strategy, leveraging its installed base, expanding into new markets, and growing its payments business [8] - Significant progress has been made in cloud optimization and version consolidation to facilitate client migrations [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term targets despite non-linear progress [6] - The competitive landscape has remained stable, with no significant increase in competition noted [31] Other Important Information - The company was recognized as one of America's greenest companies and for its workplace culture [22] - Updated 2024 annual guidance expects total revenues between $2.125 billion and $2.145 billion, with GAAP diluted EPS between $6.13 and $6.28 [21] Q&A Session Summary Question: Is the recent increase in contract value for flips a new run rate? - Management indicated that while the recent quarter was strong, it may not represent a new run rate, but they expect continued growth in flip volume [24][26] Question: Are there any sales slowdowns due to the election? - Management reported no slowdowns or hesitations due to the election, with most divisions meeting or exceeding sales plans [28][29] Question: How is the competitive landscape evolving? - Management noted that competition has remained stable, with no significant changes in competitive pressure [31] Question: What is the outlook for cash flow and margins in 2025? - Management indicated that they are ahead of their 2025 targets for cash flow and expect margins to remain stable [33][40] Question: What are the reasons for client hesitancy in flipping to the cloud? - Hesitancy is often due to historical control issues and aging technology, but increasing cyber threats are making clients more open to cloud solutions [61]

Tyler Technologies, Inc. (TYL) reported third-quarter 2024 non-GAAP earnings of $2.52 per share, which beat the Zacks Consensus Estimate of $2.44. The bottom line was higher than the year-ago quarter’s earnings of $2.14.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Non-GAAP revenues increased 9.8% year over year to $543.3 million. However, the top line missed the Zacks Consensus Estimate of $546.4 million.The year-over-year improvement in the top line was primarily due to a rise in ...