Q3 2024 Tyler Technologies Inc Earnings Call Transcript
Key Points
- Tyler Technologies Inc (TYL) reported strong top and bottom-line performance, with SaaS and transaction revenues exceeding expectations.
- The company achieved a non-GAAP operating margin of 25.4%, benefiting from cloud efficiency initiatives and improved professional services margins.
- Recurring revenues grew 12.1% and comprised 85% of total revenues, with SaaS revenues growing 20.3%, marking the 15th consecutive quarter of 20% or more SaaS revenue growth.
- New software bookings were robust, with new SaaS contract value reaching approximately $105.6 million, up 78% over last year.
- Tyler Technologies Inc (TYL) made significant progress in cloud optimization efforts, driving efficiencies and scalability, and signed a total of 108 flips of on-premises clients, tripling the total contract value from last year's third quarter.
- License revenues were below plan due to a shift from expected on-premise license deals to SaaS contracts, particularly in the public safety sector.
- The company noted that progress towards its 2025 and 2030 targets will not be linear, indicating potential variability in achieving these goals.
- SaaS revenue growth may fluctuate from quarter to quarter due to the timing of new SaaS deals and renewals.
- Merchant and interchange fees from the payment business have a meaningful impact on overall margins, as they are included in both revenues and cost of revenues.
- The company acknowledged that the competitive landscape remains neutral, with consistent competition from players like ServiceNow and Workday in certain subverticals.
Hello, and welcome to today's Tyler Technologies third-quarter 2024 conference call. Your host for today's call is Lynn Moore, President and CEO of Tyler Technologies. (Operator Instructions) And as a reminder, this conference is being recorded today, October 24, 2024.
I would like to turn the call over to Hala Elsherbini, Tyler's Senior Director of Investor Relations. Please go ahead.
Thank you, Rob, and welcome to our call. With me today is Lynn Moore, our President and Chief Executive Officer; and Brian Miller, our Chief Financial Officer. After I give the Safe Harbor statement, Lynn will have some initial comments on our quarter, and then Brian will review the details of our results and update our annual guidance for 2024. Lynn will end with some additional comments, and then we'll take your questions.
During this conference call, management may make statements that provide information other than historical information and may include projections concerning the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
