Tyler Technologies Reports Earnings for Fourth Quarter 2023

Rhea-AI Summary

Tyler Technologies, Inc. (TYL) reported impressive financial results for the fourth quarter of 2023, with total revenues of $480.9 million, up 6.3%. Recurring revenues were $403.6 million, up 7.9%, with SaaS revenues growing significantly by 21.7%. The company's GAAP net income was $38.9 million, or $0.91 per diluted share, up 25.2%. Tyler Technologies also completed acquisitions of ResourceX and ARInspect during the quarter. Full-year 2023 revenues were $1.952 billion, up 5.5%, with recurring revenues at $1.63 billion, up 9.8%. SaaS revenues grew by 23.2%. The company provided optimistic guidance for 2024, expecting total revenues in the range of $2.095 billion to $2.135 billion.

Positive

• Impressive revenue growth for Tyler Technologies in Q4 2023.
• Strong recurring revenue performance with significant SaaS revenue growth.
• Successful acquisitions of ResourceX and ARInspect during the quarter.
• GAAP net income increased by 25.2% in Q4 2023.
• Full-year 2023 revenues showed a growth of 5.5%.
• Optimistic guidance provided for 2024 with expected total revenues of $2.095 billion to $2.135 billion.

Negative

• None.

Insights

Financial Analyst

The reported 21.7% growth in SaaS revenues and an overall 7.9% increase in recurring revenues for Tyler Technologies signifies a robust performance in the high-margin SaaS domain, which is a positive indicator for investors seeking stability in revenue streams. The emphasis on recurring revenue is particularly important as it suggests a predictable and sustainable business model, which is often rewarded by the market with higher valuations. Moreover, the company's ability to expand its SaaS mix to 89% of new software contract value indicates a successful transition towards a subscription-based model, aligning with broader industry trends.

The free cash flow increase of 17.1% in Q4 and the reduction of net leverage to under one times proforma EBITDA reflects prudent financial management and provides the company with strategic flexibility for future investments or shareholder returns. The substantial debt reduction in 2023 enhances the company's financial health and could be a positive signal for credit ratings and investor confidence. However, the slight decrease in free cash flow on a yearly basis warrants monitoring to assess if it's a temporary fluctuation or indicative of underlying trends.

Market Research Analyst

From a market perspective, Tyler Technologies' landmark contract with the California Department of Parks and Recreation represents a significant vote of confidence from a large public sector client. This not only serves as a testament to the company's competitive positioning but also sets a precedent for future deals of similar magnitude. The strategic collaboration with Amazon Web Services is another critical development, likely to enhance the company's cloud offerings and potentially improve market share within the digital modernization space.

Given the company's focus on the public sector, the health of this market is a key driver for its performance. The reported elevated levels of RFP and sales demonstration activity suggest a robust pipeline of opportunities, which could translate into strong future revenue growth. However, it is important for investors to consider the cyclical nature of government spending and regulatory changes that might influence the company's growth trajectory.

Legal Expert

From a legal standpoint, the mention of cash tax payments related to IRC Section 174 capitalization rules is noteworthy. This indicates compliance with recent changes in tax regulations that could affect the company's tax strategy and cash flows. Investors should be aware of such regulatory impacts, as they can have material effects on the company's financials. The proactive disclosure of these payments reflects transparency in financial communication, which is vital for maintaining investor trust.

Additionally, the completion of acquisitions like ResourceX and ARInspect for a combined purchase price of approximately $37 million demonstrates the company's strategic use of capital for growth through technological enhancement. Legal due diligence in these acquisitions is critical to ensure the integration of these new technologies aligns with existing product portfolios and does not introduce unforeseen liabilities or compliance issues.

SaaS revenues grew 21.7% for the fourth quarter

PLANO, Texas--(BUSINESS WIRE)-- Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the fourth quarter ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights (all comparisons are to the fourth quarter of 2022):

Revenues

Total revenues were $480.9 million, up 6.3%. On an organic basis, revenues grew 6.1%.

Recurring Revenues

Recurring revenues were $403.6 million, up 7.9%, and comprised 83.9% of fourth quarter 2023 revenues, up from 82.7%. On an organic basis, recurring revenues were $400.4 million, up 7.1%.

• Subscription revenues were $286.1 million, up 11.4%. On an organic basis, subscription revenues grew 10.8%. Within subscriptions:
  • SaaS revenues grew 21.7% to $141.0 million. On an organic basis, SaaS revenues grew 21.2%.
  • Transaction-based revenues grew 3.0% to $145.1 million. On an organic basis, transaction-based revenues grew 2.1%.
  • SaaS arrangements comprised approximately 89% of the total new software contract value, compared to approximately 86%.
• Annualized recurring revenue (ARR) was $1.61 billion, up 7.9%.

Earnings/EBITDA

• GAAP operating income was $47.7 million, up 17.3%. Non-GAAP operating income was $107.4 million, up 9.7%.
• GAAP net income was $38.9 million, or $0.91 per diluted share, up 25.2%. Non-GAAP net income was $81.4 million, or $1.89 per diluted share, up 15.6%.
• Adjusted EBITDA was $117.9 million, up 7.4%.

Cash Flow

• Cash flows from operations were $147.4 million, up 21.0%.
• Free cash flow was $134.4 million, up 17.1%.
• During the fourth quarter, cash tax payments included approximately $15 million related to IRC Section 174 capitalization rules.

Acquisitions

During the fourth quarter, we completed the acquisitions of ResourceX and ARInspect for a combined purchase price of approximately $37 million in cash and stock.

Full Year 2023 Financial Highlights (all comparisons are to the full year of 2022):

Revenues

Total revenues were $1.952 billion, up 5.5%. On an organic basis (excluding COVID-related revenues in 2022), revenues grew 7.4%.

Recurring Revenues

Recurring revenues were $1.63 billion, up 9.8%, and comprised 83.3% of 2023 revenues, up from 80.0%. On an organic basis, recurring revenues were $1.61 billion, up 9.5%.

• Subscription revenues were $1.16 billion, up 14.5%. On an organic basis, subscription revenues grew 14.4%. Within subscriptions:
  • SaaS revenues grew 23.2% to $528.0 million. On an organic basis, SaaS revenues grew 23.1%.
  • Transaction-based revenues grew 8.2% to $631.5 million. On an organic basis, transaction-based revenues grew 7.9%.
  • SaaS arrangements comprised approximately 85% of the total new software contract value, compared to approximately 83%.

Earnings/EBITDA

• GAAP operating income was $218.5 million, up 2.0%. Non-GAAP operating income was $448.1 million, up 2.5%.
• GAAP net income was $165.9 million, or $3.88 per diluted share, up 1.0%. Non-GAAP net income was $333.7 million, or $7.80 per diluted share, up 4.9%.
• Adjusted EBITDA was $488.4 million, up 2.8%.

Cash Flow

• Cash flows from operations were $380.4 million, down 0.3%.
• Free cash flow was $327.4 million, down 1.2%.
• Cash tax payments in 2023 included approximately $127 million related to IRC Section 174 capitalization rules.

“Our fourth quarter results reflected a strong finish to a pivotal year in our cloud transition and a return to year-over-year operating margin expansion,” said Lynn Moore, Tyler’s president and chief executive officer. “We achieved our key objectives for the year and both earnings and cash flow surpassed our expectations. Recurring revenue growth for the quarter was solid, highlighted by SaaS revenue growth of 21.7%, marking our 12th consecutive quarter of SaaS revenue growth of 20% or more. Free cash flow reached a new high for a fourth quarter and our SaaS mix expanded to 89% of new software contract value.

“We're pleased with the strength of new contract signings during the fourth quarter, including a landmark win with the California Department of Parks and Recreation for our integrated Outdoor Recreation platform, including payments. This transaction-based, self-funded eight-year contract is the largest transaction-based arrangement in Tyler's history. We're also excited to have signed our expanded strategic collaboration agreement with Amazon Web Services to further enable the growing adoption of Tyler's cloud-based mission-critical solutions and to support our public sector clients' digital modernization needs.

“During 2023, we excelled on many fronts executing our four-pronged growth strategy to drive predictable, higher recurring revenues and long-term margin expansion. We leveraged our unmatched installed base, broad suite of offerings, and strong relationships across local, state, and federal agencies to expand our cross-sell and upsell opportunities. We continued to take a balanced and opportunistic approach with respect to capital allocation and closed four strategic acquisitions, adding AI technology that can be leveraged across Tyler's product portfolio. We further strengthened our balance sheet and aggressively reduced our term debt with fourth quarter repayments of $90 million. For the full year, we reduced debt by $345 million, bringing our net leverage at year-end to under one times proforma EBITDA.

“We enter 2024 with tremendous optimism and confidence in the year ahead and beyond as we execute our strategy supporting our Tyler 2030 vision. The public sector market remains very healthy, as evidenced by our elevated levels of RFP and sales demonstration activity. We are on track with key initiatives around our cloud transition, including the migration of on-premises clients to the cloud and the planned exit from our proprietary data centers, and we expect to return to a trajectory of operating margin expansion in 2024,” concluded Moore.

Annual Guidance for 2024

As of February 14, 2024, Tyler Technologies is providing the following guidance for the full year 2024:

• Total revenues are expected to be in the range of $2.095 billion to $2.135 billion.
• GAAP diluted earnings per share are expected to be in the range of $5.17 to $5.37.
• Non-GAAP diluted earnings per share are expected to be in the range of $8.90 to $9.10.
• Free cash flow margin is expected to be in the range of 17% to 19%.
• Research and development expense is expected to be in the range of $125 million to $130 million.
• Capital expenditures are expected to be in the range of $46 million to $48 million, including approximately $27 million of software development costs.

GAAP to non-GAAP guidance reconciliation	2024
GAAP diluted earnings per share (1)	$5.17 - $5.37
Plus:
Share-based compensation expense	2.92
Amortization of acquired software and other intangibles	2.21
Less:
Income tax impact (1)	(1.40)
Non-GAAP diluted earnings per share	$8.90 - $9.10
Shares used in computing diluted earnings per share (millions)	43.5
GAAP estimated annual effective tax rate used in computing GAAP diluted earnings per share (1)	18%
Non-GAAP estimated annual effective tax rate used in computing non-GAAP diluted earnings per share	22%
(1) GAAP diluted earnings per share may fluctuate due to the impact on our annual effective tax rate of discrete tax items, such as stock incentive awards, future acquisitions, changes in tax legislation, and other transactions.

Conference Call

Tyler Technologies will hold a conference call on Thursday, February 15, 2024, at 10:00 a.m. ET to discuss the company’s results. Participants can register in advance for the conference through the following link: https://conferencingportals.com/event/eqivMdEU. Registered participants will receive an email with a calendar reminder, dial-in number and conference ID that allows them immediate access to the call.

The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial 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 diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance.

Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

#TYL_Financial

TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2023				2022				2023				2022
Revenues:
Subscriptions		$	286,068			$	256,699			$	1,159,512			$	1,012,304
Maintenance			117,508				117,273				466,661				468,455
Professional services			61,501				63,855				249,976				277,625
Software licenses and royalties			7,633				7,622				38,096				59,406
Hardware and other			8,225				6,771				37,506				32,414
Total revenues			480,935				452,220				1,951,751				1,850,204
Cost of revenues:
Subscriptions, maintenance and professional services			245,236				239,173				1,001,221				977,885
Software licenses and royalties			2,956				1,436				10,821				6,083
Amortization of software development			4,058				2,514				12,625				6,507
Amortization of acquired software			9,183				11,310				36,062				52,192
Hardware and other			6,577				4,453				29,923				23,674
Total cost of revenues			268,010				258,886				1,090,652				1,066,341
Gross profit			212,925				193,334				861,099				783,863
Sales and marketing expense			39,666				34,969				149,770				135,743
General and administrative expense			80,015				66,883				308,575				267,324
Research and development expense			26,163				32,667				109,585				105,184
Amortization of other intangibles			19,333				18,104				74,632				61,363
Operating income			47,748				40,711				218,537				214,249
Interest expense			(3,750	)			(8,103	)			(23,629	)			(28,379	)
Other income, net			652				1,012				3,328				1,723
Income before income taxes			44,650				33,620				198,236				187,593
Income tax provision			5,747				2,543				32,317				23,353
Net income		$	38,903			$	31,077			$	165,919			$	164,240
Earnings per common share:
Basic		$	0.92			$	0.75			$	3.95			$	3.95
Diluted		$	0.91			$	0.73			$	3.88			$	3.87
Weighted average common shares outstanding:
Basic			42,191				41,707				42,024				41,544
Diluted			42,972				42,419				42,769				42,399

TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
Reconciliation of non-GAAP gross profit and margin			2023				2022				2023				2022
GAAP gross profit		$	212,925			$	193,334			$	861,099			$	783,863
Non-GAAP adjustments:
Add: Share-based compensation expense included in cost of revenues			6,981				6,667				26,607				27,486
Add: Amortization of acquired software			9,183				11,310				36,062				52,192
Non-GAAP gross profit		$	229,089			$	211,311			$	923,768			$	863,541
GAAP gross margin			44.3	%			42.8	%			44.1	%			42.4	%
Non-GAAP gross margin			47.6	%			46.7	%			47.3	%			46.7	%

		Three Months Ended December 31,								Twelve Months Ended December 31,
Reconciliation of non-GAAP operating income and margin			2023				2022				2023				2022
GAAP operating income		$	47,748			$	40,711			$	218,537			$	214,249
Non-GAAP adjustments:
Add: Share-based compensation expense			27,433				24,994				108,338				102,985
Add: Employer portion of payroll tax related to employee stock transactions			682				378				1,873				1,571
Add: Acquisition-related costs			154				757				409				1,971
Add: Lease restructuring costs and other			2,863				1,623				8,220				2,782
Add: Amortization of acquired software			9,183				11,310				36,062				52,192
Add: Amortization of other intangibles			19,333				18,104				74,632				61,363
Non-GAAP adjustments subtotal		$	59,648			$	57,166			$	229,534			$	222,864
Non-GAAP operating income		$	107,396			$	97,877			$	448,071			$	437,113
GAAP operating margin			9.9	%			9.0	%			11.2	%			11.6	%
Non-GAAP operating margin			22.3	%			21.6	%			23.0	%			23.6	%

		Three Months Ended December 31,								Twelve Months Ended December 31,
Reconciliation of non-GAAP net income and earnings per share			2023				2022				2023				2022
GAAP net income		$	38,903			$	31,077			$	165,919			$	164,240
Non-GAAP adjustments:
Add: Total non-GAAP adjustments to operating income			59,648				57,166				229,534				222,864
Less: Income tax impact			(17,198	)			(17,884	)			(61,792	)			(68,999	)
Non-GAAP net income		$	81,353			$	70,359			$	333,661			$	318,105
GAAP earnings per diluted share		$	0.91			$	0.73			$	3.88			$	3.87
Non-GAAP earnings per diluted share		$	1.89			$	1.66			$	7.80			$	7.50

TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)
		Three Months Ended December 31,						Twelve Months Ended December 31,
Detail of share-based compensation expense			2023			2022			2023			2022
Subscriptions, maintenance and professional services		$	6,981		$	6,667		$	26,607		$	27,486
Sales and marketing expense			2,730			2,229			10,118			8,800
General and administrative expense			17,722			16,098			71,613			66,699
Total share-based compensation expense		$	27,433		$	24,994		$	108,338		$	102,985

		Three Months Ended December 31,						Twelve Months Ended December 31,
Reconciliation of EBITDA and adjusted EBITDA			2023			2022			2023			2022
GAAP net income		$	38,903		$	31,077		$	165,919		$	164,240
Amortization of other intangibles			19,333			18,104			74,632			61,363
Depreciation and amortization included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense			19,755			22,627			74,954			89,890
Interest expense			3,750			8,103			23,629			28,379
Income tax provision			5,747			2,543			32,317			23,353
EBITDA		$	87,488		$	82,454		$	371,451		$	367,225
Share-based compensation expense			27,433			24,994			108,338			102,985
Acquisition-related costs			154			757			409			1,971
Lease restructuring costs and other			2,863			1,623			8,220			2,782
Adjusted EBITDA		$	117,938		$	109,828		$	488,418		$	474,963

		Three Months Ended December 31,								Twelve Months Ended December 31,
Reconciliation of free cash flow			2023				2022				2023				2022
Net cash provided by operating activities		$	147,419			$	121,857			$	380,440			$	381,455
Less: additions to property and equipment			(8,013	)			(5,088	)			(20,519	)			(22,529	)
Less: investments in software development			(5,043	)			(2,065	)			(32,490	)			(27,622	)
Free cash flow		$	134,363			$	114,704			$	327,431			$	331,304
Free cash flow margin			27.9	%			25.4	%			16.8	%			17.9	%

TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
		December 31, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents		$	165,493		$	173,857
Accounts receivable, net			619,704			577,257
Short-term investments			10,385			37,030
Prepaid expenses and other current assets			65,003			59,098
Total current assets			860,585			847,242
Accounts receivable, long-term portion			8,988			8,271
Operating lease right-of-use assets			39,039			50,989
Property and equipment, net			169,720			172,786
Other assets:
Software development costs, net			67,124			48,189
Goodwill			2,532,109			2,489,308
Other intangibles, net			928,870			1,002,164
Non-current investments			7,046			18,508
Other non-current assets			63,182			49,960
Total assets		$	4,676,663		$	4,687,417
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities		$	304,897		$	236,754
Operating lease liabilities			11,060			10,736
Current income tax payable			2,466			43,667
Deferred revenue			632,914			568,538
Current portion of term loans			49,801			30,000
Total current liabilities			1,001,138			889,695
Term loans			—			362,905
Convertible senior notes due 2026, net			596,206			594,484
Deferred revenue, long-term			291			2,037
Deferred income taxes			78,590			148,891
Operating lease liabilities, long-term			39,822			48,049
Other long-term liabilities			22,621			16,967
Total liabilities			1,738,668			2,063,028
Shareholders' equity			2,937,995			2,624,389
Total liabilities and shareholders' equity		$	4,676,663		$	4,687,417

TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
		Three Months Ended December 31,								Twelve Months Ended December 31,
			2023				2022				2023				2022
Cash flows from operating activities:
Net income		$	38,903			$	31,077			$	165,919			$	164,240
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization			39,881				42,122				154,079				159,072
Losses from sale of investments			—				1				1				45
Share-based compensation expense			27,433				24,994				108,338				102,985
Provision for losses and sales adjustments - accounts receivable			8,233				2,781				8,233				2,781
Operating lease right-of-use assets expense			4,430				3,729				16,688				12,969
Deferred income tax benefit			(29,704	)			(54,347	)			(73,704	)			(87,192	)
Other			77				—				475				—
Changes in operating assets and liabilities, exclusive of effects of acquired companies			58,166				71,500				411				26,555
Net cash provided by operating activities			147,419				121,857				380,440				381,455
Cash flows from investing activities:
Additions to property and equipment			(8,013	)			(5,088	)			(20,519	)			(22,529	)
Purchase of marketable security investments			—				(9,507	)			(10,617	)			(29,935	)
Proceeds and maturities from marketable security investments			3,960				15,982				49,412				71,034
Investment in software development			(5,043	)			(2,065	)			(32,490	)			(27,622	)
Cost of acquisitions, net of cash acquired			(27,219	)			(46,215	)			(62,759	)			(163,921	)
Other			(35	)			117				13				443
Net cash used by investing activities			(36,350	)			(46,776	)			(76,960	)			(172,530	)
Cash flows from financing activities:
Payment on term loans			(90,000	)			(90,000	)			(345,000	)			(360,000	)
Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award			8,522				(1,188	)			16,960				(890	)
Contributions from employee stock purchase plan			4,416				4,037				16,196				16,651
Net cash used by financing activities			(77,062	)			(87,151	)			(311,844	)			(344,239	)
Net increase (decrease)in cash and cash equivalents			34,007				(12,070	)			(8,364	)			(135,314	)
Cash and cash equivalents at beginning of period			131,486				185,927				173,857				309,171
Cash and cash equivalents at end of period		$	165,493			$	173,857			$	165,493			$	173,857

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240214453647/en/

Hala Elsherbini

Senior Director, Investor Relations

Tyler Technologies, Inc.

972-713-3770 ext. 1143

hala.elsherbini@tylertech.com

Source: Tyler Technologies

FAQ

What were Tyler Technologies' (TYL) total revenues for the fourth quarter of 2023?

Tyler Technologies reported total revenues of $480.9 million for the fourth quarter of 2023.

How much did SaaS revenues grow in the fourth quarter of 2023 for Tyler Technologies (TYL)?

SaaS revenues grew by 21.7% to $141.0 million in the fourth quarter of 2023 for Tyler Technologies.

What was the GAAP net income for Tyler Technologies (TYL) in the fourth quarter of 2023?

Tyler Technologies reported a GAAP net income of $38.9 million, or $0.91 per diluted share, in the fourth quarter of 2023.

What were the full-year 2023 revenues for Tyler Technologies (TYL)?

Tyler Technologies reported full-year 2023 revenues of $1.952 billion.

What guidance did Tyler Technologies (TYL) provide for 2024?

Tyler Technologies provided guidance for 2024 expecting total revenues in the range of $2.095 billion to $2.135 billion.