Tyler Technologies ( (TYL) ) has released its Q4 earnings. Here is a breakdown of the information Tyler Technologies presented to its investors.
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Tyler Technologies, Inc. is a leading provider of integrated software and technology services specifically designed for the public sector, offering solutions that enhance operational efficiency and transparency for government entities.
In its latest earnings report, Tyler Technologies demonstrated robust financial performance for the fourth quarter of 2024, highlighted by significant growth in SaaS and transaction-based revenues which exceeded the 20% mark.
The company reported a total revenue increase of 12.5% compared to the previous year, reaching $541.1 million, with recurring revenues making up 85.7% of this total. Subscription revenues saw a remarkable increase of 21.9%, driven by a notable 23% rise in SaaS revenues and a 20.9% growth in transaction-based revenues. GAAP operating income surged by 50.1% to $71.7 million, while non-GAAP net income increased by 31.2% to $106.7 million. Additionally, free cash flow grew by an impressive 60.7%.
Tyler Technologies also shared its annual financial highlights, reporting a total revenue of $2.138 billion for 2024, a 9.5% increase from the previous year. The company’s strategic focus on transitioning clients from on-premises to cloud-based solutions resulted in SaaS arrangements making up 96% of new software contract value. This strategic shift, along with a strong client base and a focus on digital modernization, positions the company well for continued growth.
Looking forward to 2025, Tyler Technologies projects total revenues between $2.30 billion and $2.34 billion, with subscription revenues expected to grow by 15% to 18%. The company remains optimistic about its growth strategy and is confident in its ability to maintain strong financial performance, supported by a diverse range of integrated offerings and sustained demand in the public sector market.
