GTY Technology Holdings Inc. Announces First Quarter Financial Results

Rhea-AI Summary

GTY Technology Holdings Inc. (Nasdaq: GTYH) reported a strong Q1 2021, with total revenue of $13.3 million, marking an 18% increase year-over-year. The company achieved 27% growth in Annual Recurring Revenue (ARR) and improved gross profit to $8.5 million, with a gross margin of 64%. Despite an operating loss of $8.1 million, GTY anticipates continued growth, projecting Q2 2021 non-GAAP revenue between $13.5M and $14.0M, and full-year guidance of $57.0M to $60.0M. The number of customers rose to 1,793, a 14% increase from the previous year.

Positive

• 18% increase in total revenue to $13.3 million.
• 27% growth in Annual Recurring Revenue (ARR).
• Gross profit improved to $8.5 million with a gross margin of 64%.
• Projected Q2 2021 non-GAAP revenue of $13.5 to $14.0 million, indicating 22% growth.
• Full-year 2021 revenue guidance of $57.0 to $60.0 million, approximately 20% year-over-year growth.
• Customer count increased by 14%, reaching 1,793.

Negative

• Operating loss of $(8.1) million in Q1 2021, though improved from $(16.5) million in Q1 2020.
• Net loss of $(18.0) million, or $(0.32) per share.

GTY Technology Holdings Inc. (Nasdaq: GTYH) (“GTY”), a leading vertical SaaS/Cloud solution provider for the public sector, today announced financial results for the first quarter ended March 31, 2021.

“The first quarter was an outstanding start to 2021, primarily driven by robust activity across all of our business segments. We accelerated year-over-year ARR growth to 27% and achieved 18% revenue growth that exceeded guidance,” said TJ Parass, CEO of GTY. “We have great momentum across our business and see strong demand for our products as more and more public sector organizations are pushing to modernize and transform their operations. As we look forward, we believe GTY is well positioned to capitalize on the recovery trend and execute on our growth initiatives.”

First Quarter 2021 Financial Highlights

• Revenue: Total GAAP revenue for the first quarter of 2021 was $13.3 million, up 18% compared to $11.3 million in the first quarter of 2020. Total non-GAAP revenue for the first quarter of 2021 was $13.4 million, up 15% compared to $11.6 million in the first quarter of 2020.
• Gross Profit: Gross profit for the first quarter of 2021 was $8.5 million, compared to $6.7 million for the first quarter of 2020. Gross margin for the first quarter of 2021 was 64%, compared to 60% for the first quarter of 2020. Non-GAAP gross profit for the first quarter of 2021 was $8.9 million, compared to $7.3 million for the first quarter of 2020. Non-GAAP gross margin was 67% for the first quarter of 2021, compared to 63% for the first quarter of 2020.
• Operating (Loss): Operating loss for the first quarter of 2021 was $(8.1) million, compared to an operating loss of $(16.5) million in the first quarter of 2020. Non-GAAP operating loss for the first quarter of 2021 was $(1.5) million, compared to an operating loss of $(5.7) million in the first quarter of 2020.
• Net (Loss): Net loss for the first quarter of 2021 was $(18.0) million, or $(0.32) per share, based on 55.8 million weighted average shares outstanding. During the first quarter of 2020, net loss was $(17.4) million, or $(0.33) per share, based on 52.6 million weighted average shares outstanding.

On April 12, 2021, the SEC released guidance regarding the technical accounting for warrants issued by special purpose acquisition companies. GTY has assessed the impact of this recent guidance and determined it is not material to previously issued financial statements. Accordingly, GTY will revise, rather than restate, its previously issued 2020 quarterly and annual financial statements in GTY’s filings for 2021 on Forms 10-Q and 10-K. The guidance does not impact GTY’s non-GAAP operating metrics for 2019 or 2020, including non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin and non-GAAP loss from operations.

Definitions and reconciliations of all non-GAAP financial measures and additional information regarding operating measures are included below in the section titled “Use of Non-GAAP Financial Measures” and in the accompanying tables. All comparisons in this press release are year over year unless otherwise provided.

First Quarter 2020 Highlights and Key Metrics

• Raised $6.8 million through equity sales
• Redeemed shares worth $8 million
• The number of customers was 1,793 as of March 31, 2021, an increase of 14% from 1,578 as of March 31, 2020.

Additional information regarding our new customers, total customers and Annual Recurring Revenue and how each are calculated are included below.

Financial Outlook

As of May 13, 2021, GTY is providing guidance for its second quarter and full year 2021 as follows:

• Second Quarter 2021 Guidance: Total Non-GAAP revenue is expected to be in the range of $13.5 million to $14.0 million or approximately 22% year-over-year growth.
• Full Year 2021 Guidance: Total Non-GAAP revenue is expected to be in the range of $57.0 million to $60.0 million or approximately 20% year- over-year growth.

Conference Call and Webcast

GTY will hold its quarterly earnings call on May 13, 2021 at 4:30 p.m. ET. Conference call details for participation on the call are listed below. A transcript will also be posted to the Investor Relations section of our website at www.gtytechnology.com.

Investors and participants can register for the call in advance by registering here using conference ID 7597626. After registering, instructions will be shared on how to join the call. The call will also be available via live webcast here. The archived webcast will be available shortly after the call on the company website, www.gtytechnology.com.

About GTY Technology Holdings Inc.

GTY Technology Holdings Inc. (NASDAQ: GTYH) (“GTY”) brings leading public sector technology companies together to achieve a new standard in stakeholder engagement and resource management. Through its six business units, GTY offers an intuitive cloud-based suite of solutions for state and local governments, education institutions, and healthcare organizations spanning functions in procurement, payments, grant management, budgeting, and permitting: Bonfire provides strategic sourcing and procurement software to enable confident and compliant spending decisions; CityBase provides government payment solutions to connect constituents with utilities and government agencies; eCivis offers a grant management system to maximize grant revenues and track performance; Open Counter provides user-friendly software to guide applicants through complex permitting and licensing procedures; Questica offers budget preparation and management software to deliver on financial and non-financial strategic objectives; Sherpa provides public-sector budgeting software and consulting services.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The company’s actual results may differ from its expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertain

FAQ

What were GTYH's financial results for Q1 2021?

GTY Technology Holdings reported a total revenue of $13.3 million, up 18% year-over-year. The company also reported a net loss of $(18.0) million.

What is the customer growth for GTYH in Q1 2021?

GTY Technology Holdings saw a 14% increase in customers, bringing the total to 1,793.

What guidance did GTYH provide for Q2 and full year 2021?

GTY forecasted Q2 2021 non-GAAP revenue to be between $13.5 million and $14.0 million and full-year guidance of $57.0 million to $60.0 million.

How did GTYH's gross profit change in Q1 2021?

Gross profit for Q1 2021 increased to $8.5 million with a gross margin of 64%.

What were the operating losses for GTYH in Q1 2021?

GTY reported an operating loss of $(8.1) million, improving from $(16.5) million in the same quarter of the previous year.