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Tyler Technologies, Inc. TYL reported fourth-quarter 2024 non-GAAP earnings of $2.43 per share, which beat the Zacks Consensus Estimate by 0.8%. The bottom line was higher than the year-ago quarter’s earnings of $1.89.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Non-GAAP revenues increased 12.5% year over year to $541.1 million. The top line beat the Zacks Consensus Estimate of $539.74 million by 0.3%.
The year-over-year improvement in the top line was primarily due to a rise in subscription revenues. During the fourth quarter, software subscription arrangements comprised approximately 97% of the total new software contract value as the company continued to transform into a software-as-a-service model from its on-premise license-based model.
Buoyed by strong bottom-line performance, Tyler initiated a strong earnings guidance for 2025. The better-than-expected fourth-quarter performance, along with upbeat guidance, can give a fresh boost to Tyler’s share price. In the past year, TYL shares have soared 41.4%, outperforming the Zacks Business – Software Services industry’s return of 23.8%.
Tyler Technologies, Inc. Price, Consensus and EPS Surprise
Tyler Technologies, Inc. price-consensus-eps-surprise-chart | Tyler Technologies, Inc. Quote
Quarterly Details of Tyler
Tyler’s recurring revenues from maintenance and subscriptions increased 14.9% year over year to $463.85 million and accounted for 85.7% of the total quarterly revenues.
TYL reported annualized recurring revenues on a non-GAAP basis of $1.86 billion, up 14.9% year over year.
Segment-wise, Maintenance revenues (accounting for 21.3% of total revenues) were $115 million, down from $117.5 million reported in the year-ago quarter. Our model estimate for Maintenance revenues was pegged at $110.3 million.
Subscription revenues (64.5% of total revenues) grew 21.9% year over year to $348.84 million, while our model estimate for the same was pinned at $347.7 million.
Software licenses and royalties (1.1% of total revenues) of $6.1 million fell year over year by 20%. Our model predicted Software licenses and royalties’ sales to decrease 7.1% to $7.1 million.
Professional Services revenues (11.6% of total revenues) amounted to $62.8 million, up 2.1% from the year-ago quarter. Our model estimate for the same was pegged at $64 million.
Hardware and other revenues (1.5% of total revenues) were up 1.8% from the year-ago quarter to $8.4 million. Our model estimate for Hardware and other revenues was pegged at $7.7 million.
Tyler’s Operating Details
Tyler Technologies’ non-GAAP gross profit increased 11% year over year to $254.4 million. The non-GAAP gross margin declined 60 basis points (bps) to 47%.
Adjusted EBITDA increased 21% year over year to $142.77 million.