Education
About Us
Working with TipRanks
Follow Us
Tyler Technologies (TYL)
NYSE:TYL
Top Page
Tyler Technologies
(NYSE:TYL)
68Neutral
Positive Factors
Financial performance
Tyler reported a solid Q1 with SaaS ARR growing 21% year-over-year.
Government contracts
Tyler could actually be a beneficiary as software modernization is outlined as a priority for the U.S. federal government.
Negative Factors
ARR growth concerns
Investors are concerned about the net new SaaS ARR added in the quarter was down 8% year-over-year and ARR from new SaaS deals was $7.9 million, which is below expectations.
Cash flow performance
Free cash flow, however, declined 16% year-over-year and came in below Street expectations by 4%.
Tyler Technologies (TYL) vs. S&P 500 (SPY)
Market Cap
$22.50B
Dividend YieldN/A
Average Volume (3M)311.43K
Price to Earnings (P/E)78.7
Beta (1Y)0.78
Revenue Growth9.96%
EPS Growth50.93%
CountryUS
Employees7,462
SectorTechnology
Sector Strength63
IndustrySoftware - Application
Share Statistics
EPS (TTM)6.63
Shares Outstanding43,123,547
10 Day Avg. Volume339,033
30 Day Avg. Volume311,433
Financial Highlights & Ratios
PEG Ratio1.54
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.13
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit27.12
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$670.80Price Target Upside25.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
Tyler Technologies Business Overview & Revenue Model
Company DescriptionTyler Technologies, Inc. is a leading provider of integrated software and technology services focused on local governments and other public sector entities. The company offers a comprehensive suite of solutions designed to enhance the efficiency and effectiveness of public administration across various sectors such as public safety, education, courts and justice, and financial management. Tyler Technologies' products help streamline processes, improve data management, and enable greater transparency and engagement between governments and their constituents.
How the Company Makes MoneyTyler Technologies generates revenue primarily through the sale of software solutions and services to local governments and public sector entities. Their revenue model includes licensing fees for the use of their software products, subscription fees for cloud-based services, and ongoing maintenance and support contracts. Additionally, Tyler Technologies offers professional services such as consulting, implementation, and training, which contribute to their earnings. The company also benefits from strategic partnerships and long-term contracts with governmental agencies, which provide a stable and recurring revenue stream. Tyler's focus on delivering tailored solutions that address the specific needs of public sector clients helps it maintain a strong market position and drive financial growth.
Tyler Technologies Financial Statement Overview
Summary
Tyler Technologies is in a strong financial position, driven by robust revenue growth and solid profitability. The company maintains financial stability with low leverage and effective cash flow management. While there are minor fluctuations in margins and cash flow, the overall financial health remains sound, positioning the company well for future growth opportunities in the software application industry.Income Statement
Tyler Technologies demonstrates strong and consistent revenue growth, with a remarkable increase from $1.59 billion in 2021 to $2.19 billion in TTM, indicating a robust growth trajectory. The gross profit margin remains consistently high at around 44% in TTM, reflecting efficiency in cost management. The net profit margin also improved to approximately 13.23% in TTM, showing solid profitability. However, the EBITDA margin slightly declined in TTM compared to 2023, which might indicate rising operational costs.85
Very Positive
Balance Sheet
The company maintains a healthy equity ratio of 69.9% in TTM, highlighting strong financial stability with substantial equity relative to total assets. The debt-to-equity ratio improved to 0.18 in TTM, indicating effective debt management. Return on Equity (ROE) stands at 8.25% in TTM, suggesting good returns for shareholders, although there is room for improvement. Overall, the balance sheet reflects a stable financial position with low leverage.78
Positive
Cash Flow
Tyler Technologies shows a strong free cash flow growth rate, with free cash flow increasing from $327.43 million in 2023 to $576.34 million in TTM, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 2.1 in TTM, demonstrating efficient cash conversion. However, the slight decline in operating cash flow compared to 2024 suggests a need to monitor cash flow sustainability.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.14B | 1.95B | 1.85B | 1.59B | 1.12B | Gross Profit |
| 935.76M | 861.10M | 783.86M | 709.64M | 542.51M | EBIT |
| 299.53M | 218.54M | 214.25M | 180.74M | 172.93M | EBITDA |
| 299.53M | 392.63M | 388.01M | 328.12M | 254.58M | Net Income Common Stockholders |
| 263.03M | 165.92M | 164.24M | 161.46M | 194.82M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 767.98M | 175.88M | 210.89M | 361.47M | 709.15M | Total Assets |
| 5.18B | 4.68B | 4.69B | 4.73B | 2.61B | Total Debt |
| 638.37M | 696.89M | 1.05B | 1.39B | 22.18M | Net Debt |
| -106.35M | 531.40M | 872.32M | 1.08B | -581.44M | Total Liabilities |
| 1.79B | 1.74B | 2.06B | 2.41B | 621.16M | Stockholders Equity |
| 3.39B | 2.94B | 2.62B | 2.32B | 1.99B |
| Cash Flow | Free Cash Flow | |||
| 604.10M | 327.43M | 331.30M | 316.14M | 326.62M | Operating Cash Flow |
| 624.63M | 380.44M | 381.45M | 371.75M | 355.09M | Investing Cash Flow |
| -67.61M | -76.96M | -172.53M | -2.09B | -98.32M | Financing Cash Flow |
| 22.21M | -311.84M | -344.24M | 1.42B | 114.17M |
Tyler Technologies Technical Analysis
Negative
534.15
Price Trends
578.02
Negative
589.02
Negative
586.88
Negative
Market Momentum
-11.39
Positive
40.73
Neutral
18.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TYL, the sentiment is Negative. The current price of 534.15 is below the 20-day moving average (MA) of 555.57, below the 50-day MA of 578.02, and below the 200-day MA of 586.88, indicating a bearish trend. The MACD of -11.39 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 18.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TYL.
Tyler Technologies Risk Analysis
Tyler Technologies disclosed 36 risk factors in its most recent earnings report. Tyler Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Tyler Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.61B | 48.73 | 20.49% | ― | 15.96% | 31.76% | |
78 Outperform | $13.10B | 25.40 | 34.88% | 0.66% | 11.19% | 51.03% | |
75 Outperform | $18.08B | 22.81 | 12.35% | 1.36% | 6.92% | 28.43% | |
72 Outperform | $32.24B | 7,137.88 | 0.29% | ― | 21.07% | ― | |
68 Neutral | $22.50B | 78.67 | 8.87% | ― | 9.96% | 50.93% | |
67 Neutral | $16.74B | 528.94 | -1.34% | ― | 17.16% | 67.81% | |
59 Neutral | $10.71B | 10.35 | -6.77% | 3.02% | 7.32% | -11.27% |
* Technology Sector Average
Performance Comparison
TYL
Tyler Technologies
534.15
75.62
16.49%
GWRE
Guidewire
204.95
94.15
84.97%
SSNC
SS&C Technologies Holdings
74.91
14.50
24.00%
PAYC
Paycom
228.56
43.78
23.69%
PCTY
Paylocity
192.33
43.09
28.87%
HUBS
HubSpot
612.69
6.60
1.09%
Tyler Technologies Earnings Call Summary
Earnings Call Date:Apr 23, 2025
(Q1-2025)
| % Change Since: -6.17%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong start to the fiscal year with significant growth in revenues and profitability, driven by the company's strategic initiatives and cloud transition. However, there were some concerns regarding the decline in bookings and the potential impacts of macroeconomic conditions. Despite these challenges, the overall outlook remains positive with revised annual guidance reflecting continued growth.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
Tyler Technologies exceeded expectations across key revenue and profitability metrics, achieving a 10.3% increase in total revenues to $565.2 million and a 21% growth in SaaS revenues.
Expansion of Non-GAAP Operating Margin
The non-GAAP operating margin expanded to 26.8%, up 300 basis points from the previous year, driven by efficiencies in cloud operations and a shift to higher-margin SaaS revenues.
Cloud Transition Driving Efficiency
The company's cloud transition is enhancing scalability and driving efficiency gains, supported by version consolidation and cloud-optimized releases.
Significant First-Quarter Wins
First-quarter wins included a full enterprise justice cloud migration valued at $800,000 in ARR and a $31 million ARR payment processing contract extension with the state of Florida.
Positive Guidance for 2025
Revised annual guidance reflects positive outlook with expected total revenues between $2.31 billion and $2.35 billion, and non-GAAP diluted EPS between $11.05 and $11.35.
Negative Updates
Decrease in Total Bookings
Total bookings for Q1 were down 1.9% year over year, attributed to deals being pulled forward into Q4 and longer sales processes.
SaaS Bookings Decline
SaaS bookings declined from last year's Q1, influenced by the pull-forward effect of deals into Q4 and extended sales cycles.
Potential Impacts from Macro Conditions
Caution around spending due to uncertain macroeconomic conditions and potential tariffs on hardware are noted, though currently only minimal impacts are observed.
Company Guidance
In the first quarter of fiscal year 2025, Tyler Technologies reported a robust performance, with total revenue growing by 10.3% to $565.2 million and subscription revenue increasing by 19.7%. SaaS revenues rose by 21% to $180.1 million, marking the seventeenth consecutive quarter of over 20% growth in this segment. Transaction-based revenues also grew significantly by 18.5%, driven by higher transaction volumes and new service deployments. Additionally, the non-GAAP operating margin expanded to 26.8%, benefiting from a shift towards higher-margin SaaS revenues. Free cash flow reached $48 million, exceeding expectations. The company updated its annual guidance for 2025, projecting total revenues between $2.31 billion and $2.35 billion, with an organic growth rate of approximately 9%. Tyler Technologies expects GAAP diluted EPS to range from $7.50 to $7.80 and non-GAAP diluted EPS between $11.05 and $11.35. The company also anticipates a free cash flow margin of 24% to 26%, with R&D expenses projected to be between $193 million and $198 million.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.