Tyler Technologies Earnings: Here’s Why Investors Like These Results

Tyler Technologies, Inc. (NYSE:TYL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.35%.

Tyler Technologies, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 63.64% to $0.36 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 12.84% to $103.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tyler Technologies, Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.35. It missed the average revenue estimate of $103.25 million.

Quoting Management: “We are pleased with the results Tyler Technologies achieved in the second quarter, with quarterly revenues surpassing $100 million for the first time,” said John S. Marr Jr., Tyler’s president and chief executive officer. “Software licenses and royalties revenue increased almost 20 percent, while our subscription revenues grew more than 31 percent, as adoption of our SaaS model and e-filing offerings continues to expand. Our non-GAAP operating margin improved 200 basis points to 19.3 percent and non-GAAP net income rose 29 percent.”

Key Stats (on next page)…

Revenue increased 7.62% from $95.8 million in the previous quarter. EPS increased 5.88% from $0.34 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.40 to a profit $0.39. For the current year, the average estimate has moved up from a profit of $1.47 to a profit of $1.48 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)