On February 12, 2025, Tyler Technologies Inc (TYL, Financial) released its 8-K filing detailing the financial results for the fourth quarter of 2024. Tyler Technologies, a leading provider of integrated software solutions for public sector entities, reported significant growth in both SaaS and transaction-based revenues, contributing to a strong financial performance.
Tyler Technologies Inc (TYL, Financial) offers a comprehensive suite of software solutions and services tailored to the needs of local government entities, including cities, counties, schools, and courts. The company's core products include Munis, an ERP system, Odyssey, a court management system, and various payment solutions. Tyler Technologies also provides outsourced property tax assessment services.
For the fourth quarter of 2024, Tyler Technologies reported total revenues of $541.1 million, marking a 12.5% increase compared to the same period in 2023. This figure exceeded the analyst estimate of $540.46 million. Recurring revenues, which include subscriptions and maintenance, rose by 14.9% to $463.9 million, comprising 85.7% of total revenues.
The company's GAAP net income was $65.2 million, or $1.49 per diluted share, which is below the analyst estimate of $1.61 per share. However, the non-GAAP net income was $106.7 million, or $2.43 per diluted share, surpassing expectations.
Tyler Technologies achieved a notable 21.9% increase in subscription revenues, with SaaS revenues growing by 23.0% to $173.4 million and transaction-based revenues increasing by 20.9% to $175.4 million. The company's annualized recurring revenue (ARR) reached $1.86 billion, reflecting a 14.9% growth.
GAAP operating income rose by 50.1% to $71.7 million, while non-GAAP operating income increased by 22.7% to $131.8 million. Adjusted EBITDA was $142.8 million, up 21.0% from the previous year.
Tyler Technologies reported a gross profit of $236.8 million for the fourth quarter, with a GAAP gross margin of 43.8%. The company's cash flows from operations were $224.8 million, representing a 52.5% increase, and free cash flow was $216.0 million, up 60.7%.
“Our fourth quarter results provided a solid finish to an exceptional year of growth and profitability as we executed on our key objectives across financial, operational, and strategic initiatives,” said Lynn Moore, Tyler’s president and chief executive officer.
Looking ahead, Tyler Technologies is optimistic about its growth prospects, supported by strong public sector market conditions and a focus on digital modernization. The company has set a revenue guidance range of $2.30 billion to $2.34 billion for 2025, with expected growth in subscription revenues between 15% and 18%.
Tyler Technologies Inc (TYL, Financial) has demonstrated robust financial performance in the fourth quarter of 2024, driven by significant growth in SaaS and transaction-based revenues. The company's strategic focus on cloud adoption and digital transformation positions it well for continued success in the public sector software industry. Value investors may find Tyler Technologies' strong recurring revenue base and growth potential appealing as the company continues to expand its market presence.
Explore the complete 8-K earnings release (here) from Tyler Technologies Inc for further details.
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