On November 1, 2023, Tyler Technologies Inc (TYL, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a 4.5% increase in total revenues, reaching $494.7 million. On an organic basis, revenues grew 6.0%.
Financial Highlights
Recurring revenues from maintenance and subscriptions were $412.7 million, up 11.0% from the third quarter of 2022, and comprised 83.4% of total revenues. On an organic basis, recurring revenues grew 9.8%. Subscription revenues were $295.2 million, up 16.1% from the third quarter of 2022. On an organic basis, subscription revenues grew 14.7%.
SaaS revenues grew organically 26.0% to $138.5 million. Transaction-based revenues grew 8.5% to $156.7 million. On an organic basis, transaction-based revenues grew 6.0%. SaaS arrangements comprised approximately 80% of the total new software contract value.
GAAP operating income was $63.9 million, up 5.0% from the third quarter of 2022. Non-GAAP operating income was $122.5 million, up 4.0% from the third quarter of 2022. GAAP net income was $47.0 million, or $1.10 per diluted share, down 11.7% from the third quarter of 2022. Non-GAAP net income was $91.6 million, or $2.14 per diluted share, up 4.9% from the third quarter of 2022.
Acquisition and Cash Flow
During the third quarter, Tyler Technologies completed the acquisition of Computer Systems Innovations (CSI) for a cash purchase price of approximately $36 million, net of cash acquired. Cash flows from operations were $177.5 million, up 37.2%, compared to $129.4 million for the third quarter of 2022. Free cash flow was $162.7 million, up 40.7%, compared to $115.6 million for the third quarter of 2022.
Outlook for 2023
For the full year 2023, Tyler Technologies expects total revenues to be in the range of $1.942 billion to $1.962 billion. GAAP diluted earnings per share are expected to be in the range of $3.82 to $3.96. Non-GAAP diluted earnings per share are expected to be in the range of $7.66 to $7.80.
Explore the complete 8-K earnings release (here) from Tyler Technologies Inc for further details.
