Revenue Growth - Total revenues for the three months ended March 31, 2025, increased by 10% compared to the prior period, primarily driven by a 20% growth in subscription revenue [106]. - Annualized recurring revenues (ARR) reached $1.95 billion as of March 31, 2025, representing a 13% increase from $1.72 billion in the prior year [110]. - Subscription revenue for the three months ended March 31, 2025, totaled $374.99 million, a 20% increase from $313.24 million in the same period last year [114]. - SaaS revenue grew by 21%, or $31.3 million, for the three months ended March 31, 2025, with 672 new SaaS clients added and 431 existing clients converting to the SaaS model [116]. - Transaction-based fees revenue increased by 19%, totaling $194.91 million for the three months ended March 31, 2025, compared to $164.46 million in the prior period [117]. - The Enterprise Software (ES) segment's subscription revenue was $228.58 million, a 27% increase from $180.03 million in the prior year [114]. - The Platform Technologies (PT) segment's subscription revenue was $146.41 million, a 10% increase from $133.22 million in the prior year [114]. Cost and Expenses - Total cost of revenues increased by 3% to $298,084,000 compared to $288,693,000 in 2024 [122]. - Subscription, maintenance, and professional services costs rose by 3% to $278,053,000, primarily due to increased hosting costs and higher personnel expenses [124]. - Software licenses and royalties costs increased by 22% to $1,910,000, driven by higher third-party software costs [126]. - Amortization of software development costs increased by 23% to $5,379,000, attributed to new capitalized software projects going into service [128]. - Research and development expenses surged by 63% to $47,844,000, reflecting a redeployment of resources towards new product development [133]. Profitability - Total gross profit for the three months ended March 31, 2025, was $267,081,000, with an overall gross margin of 47.3%, up from 43.7% in 2024 [130]. - Operating income margin improved to 15.8% for the three months ended March 31, 2025, compared to 13.1% in the prior year [113]. - Total operating income increased by 33% to $89,173,000, with the ES segment contributing significantly due to higher subscription revenues [135]. Cash Flow and Financing - Operating activities provided cash of $56.2 million for the three months ended March 31, 2025, compared to $71.8 million in the same period of 2024 [144]. - Investing activities used cash of $96.2 million in the three months ended March 31, 2025, compared to $12.7 million in 2024, including an acquisition of MyGov for approximately $18.2 million [145]. - Financing activities provided cash of $1.0 million in the three months ended March 31, 2025, compared to a cash outflow of $36.4 million in 2024 [146]. - The company anticipates capital spending for 2025 to be between $32.0 million and $34.0 million, including approximately $19.0 million for software development [152]. - As of March 31, 2025, the company had cash and cash equivalents of $705.7 million, down from $744.7 million as of December 31, 2024 [143]. - The company has an available borrowing capacity of $700.0 million under the 2024 Credit Agreement as of March 31, 2025 [149]. - As of March 31, 2025, the company had $600.0 million in outstanding principal for Convertible Senior Notes due in 2026 [149]. Tax and Other Income - The income tax provision for the three months ended March 31, 2025, was $14,238,000, an increase of $1,769,000 or 14% compared to $12,469,000 in 2024 [141]. - The effective income tax rate for the three months ended March 31, 2025, was 14.9%, down from 18.7% in the prior period [141]. - Interest expense decreased by 43% to $(1,246,000) due to the repayment of Term Loans in early 2024 [139]. - Other income, net, rose by 299% to $7,363,000, primarily from increased interest income on higher invested cash balances [140]. Acquisitions and Strategic Moves - The company acquired MyGov, LLC for approximately $18.2 million on January 31, 2025, enhancing its SaaS platform solutions for community development [104]. - Software license revenues are expected to decline as the company shifts from perpetual licenses to SaaS, resulting in lower initial revenue but higher overall revenue over the contract term [121]. Share Repurchase - The company has authorization to repurchase up to 2.1 million additional shares of common stock as of April 25, 2025 [147].

Tyler Technologies (TYL) Q1 2025 Earnings Call April 24, 2025 06:05 PM ET Company Participants Hala Elsherbini - Senior Director of IRLynn Moore - President & CEOBrian Miller - Executive VP & CFOKirk Materne - Senior Managing Director, Equity ResearchTerry Tillman - Managing DirectorAlexei Gogolev - Executive DirectorSaket Kalia - Managing DirectorCharles Strauzer - Senior Managing Director Conference Call Participants Ken Wong - Managing Director & Senior AnalystMichael Turrin - Managing Director, Software ...

Tyler Technologies Inc (NYSE:TYL) Q1 2025 Results Conference Call April 24, 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 Kirk Materne - Evercore Ken Wong - Oppenheimer Terry Tillman - Truist Securities Michael Turrin - Wells Fargo Securities Alexei Gogolev - JPMorgan Joshua Reilly - Needham Saket Kalia - Barclays Charles Strauzer - CJS Securities Rob Oliver - Baird Jonathan Ho - Will ...

Tyler Technologies, Inc. (TYL) started 2025 on a strong note with reporting better-than-expected first-quarter results. The company reported first-quarter non-GAAP earnings of $2.78 per share, which beat the Zacks Consensus Estimate by 8.6% and increased 28.9% year over year. Tyler Technologies surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 3.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Tyler Technologies ...

The upcoming report from Tyler Technologies (TYL) is expected to reveal quarterly earnings of $2.56 per share, indicating an increase of 16.4% compared to the year-ago period. Analysts forecast revenues of $556.02 million, representing an increase of 8.5% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Ahead of a company's earni ...

Tyler Technologies (TYL) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power ...

Tyler Technologies, Inc. (TYL) has inked a four-year agreement with Hillsborough County, FL, to provide its Appraisal Services, marking a major step toward modernizing the county's property assessment operations. This deal reflects Tyler Technologies' growing influence in the public sector digital transformation landscape, as governments increasingly adopt tech-driven solutions to enhance efficiency, accuracy, and transparency. By deploying Tyler Technologies' advanced appraisal technology, Hillsborough Cou ...

Since opening its doors in 2015 at 4820 S Broadway Ave., Natural Grocers has been a trusted source for high-quality, affordable organic and natural groceries, supplements, and household essentials. The company, founded in 1955, remains committed to its Five Founding Principles providing: Nutrition Education, Quality Products, Always AffordableSM Pricing, Commitment to Community, and Commitment to its good4uSM Crew. "We're honored to have served the citizens of the 'Rose Capital of America' for the past deca ...

Cybersecurity and Technology Risks - The company faces significant risks from cyber-attacks and security vulnerabilities, which could disrupt operations and harm competitive position[53] - The evolving threat landscape, including the use of AI, increases the risk of data breaches and could result in significant financial liabilities[54] - The company must respond timely to technological changes to remain competitive, as failure to do so could render existing products obsolete[65] - Incorporating AI technologies into products and services presents challenges, including the risk of delays in innovation and potential operational and reputational risks[66] - The company relies on proprietary information and intellectual property rights, and any failure to protect these rights could have a material adverse effect on business[67] - The company’s business is dependent on reliable Internet infrastructure, and any failures in this infrastructure could harm business operations[60] Financial Performance and Market Risks - The company faces risks related to public sector sales, including budgetary constraints and long sales cycles, which could adversely affect financial performance[70] - A prolonged economic slowdown could reduce demand for the company's software products and services, impacting growth and profitability[75] - The company is exposed to interest rate risk due to variable rate indebtedness under the 2024 Credit Agreement, which could increase debt service obligations[90] - Fluctuations in quarterly revenues can significantly impact the company's operating results and stock price, with potential reductions in earnings if actual revenues fall below expectations[94] - The market price of the company's common stock may be volatile, influenced by various factors including technological innovations and economic conditions[96] Operational Challenges - The reliance on third-party vendors for project deliverables and financial transactions poses risks to operating results and business prospects[55] - The company may face challenges in maintaining relationships with third-party software providers, which could limit product functionality and increase costs[62] - The introduction of new products may contain errors or defects, potentially leading to revenue loss and market acceptance delays[64] - The company may experience delays in software implementations and appraisal projects due to client project holds or slowdowns[73] - The company may face challenges in securing performance bonds required by clients, impacting the ability to win contracts[83] Strategic and Investment Considerations - The company has entered into a $700.0 million credit agreement, providing an unsecured revolving credit facility[85] - The company may need to obtain equity, equity-linked, or debt financing in the future to fund operations, including its acquisition strategy, amid increased volatility in financial markets[93] - The company has not declared or paid a cash dividend since entering the software business in 1998 and does not anticipate paying dividends in the foreseeable future[106] - The company may face challenges in executing its acquisition strategy, which has historically contributed to growth, and may encounter risks related to integration and unforeseen liabilities[98] - The company plans to continue investing significantly in research and development, which could adversely affect operating margins[95] Human Resources and Labor Market - Labor costs are subject to external factors, and increases in labor costs could adversely affect the company's business and profitability[101] - The company may experience difficulties in hiring and retaining qualified personnel due to intense competition in the labor market[103] Goodwill and Impairment Risks - The company has historically evaluated goodwill for impairment annually, with potential future impairment charges if adverse changes occur[74] - The company’s ability to service its indebtedness depends on future performance, which is subject to various external factors[88] Competition and Market Dynamics - Increased competition in the public sector software market may lead to pricing pressure and reduced market share[81]

Financial Data and Key Metrics Changes - The fourth quarter results showed total revenues of $541.1 million, an increase of 12.5%, with organic growth of 12.4% [27] - Subscription revenue increased by 21.9%, with organic growth of 21.8% [27] - SaaS revenues grew 23% to $173.4 million, with organic growth of 22.8% [28] - Non-GAAP operating margin expanded to 24.4%, up 210 basis points from the previous year [32] - Free cash flow reached $216 million, up 60.7% from the previous year [34] Business Line Data and Key Metrics Changes - SaaS revenue growth exceeded the 20% target, with transaction revenues growing nearly 21% [9][10] - New software bookings included approximately $141 million in new SaaS contract value, up 37% year-over-year [15] - The average annual recurring revenue (ARR) from new SaaS contracts increased by 63% [31] - Transaction revenues grew 20.9% to $175.4 million, driven by new transaction services and higher volumes [29] Market Data and Key Metrics Changes - The public sector market remains strong, with approximately 95% of total revenue coming from state and local levels [14] - Demand for digital modernization in the public sector is increasing due to aging systems and cybersecurity threats [14] - The company signed 244 new payment deals in Q4, representing approximately $8.1 million in projected ARR [25] Company Strategy and Development Direction - The company is focused on a cloud-first strategy, aiming for organic recurring revenue CAGR of 10% to 12% and sustainable margin expansion [13] - The strategic focus includes executing on cloud initiatives, leveraging the installed base, expanding into new markets, and growing the payments business [15] - The company plans to close its main data center by the end of 2025, continuing its transition to cloud operations [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets and long-term goals, citing strong demand and effective execution by sales teams [11][46] - The company views the increased focus on government efficiency as an opportunity rather than a risk [14][110] - Management highlighted the importance of AI in enhancing productivity and decision-making, with plans to integrate AI features into flagship products [53][121] Other Important Information - The company announced the acquisition of MyGov, enhancing its public administration offerings [52] - Management emphasized disciplined financial management and capital allocation, reducing net leverage to zero [49] - The company has been recognized for its workplace culture and innovation, including being named to the Forbes Best Large Employers list [61] Q&A Session Summary Question: Comments on payment strategy and Fiserv partnership - Management clarified that the focus is on avoiding commoditized payments and leveraging technology from partners like Fiserv to enhance margins [68][74] Question: Visibility on maintenance revenue decline - Management indicated that migrations to cloud are broad-based, with public safety showing rapid increases [80][82] Question: Cash flow expectations for 2025 - Management noted that some cash flow strength in 2024 was due to unusual items, but expects continued margin expansion [88][92] Question: Cross-sell momentum - Management highlighted strong performance across product lines and investments in sales resources to fuel growth [95][99] Question: Federal funding impact on state and local budgets - Management stated that federal funding is minimal at the local level, viewing current government efficiency initiatives as opportunities [106][110] Question: Demand environment and SaaS growth - Management reported healthy budgets and strong sales execution driving SaaS momentum, with AI expected to play a role in future growth [116][121]