On Wednesday, BTIG maintained a Buy rating and a $630.00 price target on Tyler Technologies (NYSE:TYL) stock, following the company's third-quarter earnings report. The software provider's revenue slightly missed expectations due to a higher mix of Software as a Service (SaaS) sales, but surpassed profitability and earnings forecasts.
Tyler Technologies reported third-quarter SaaS revenue of $166.6 million, a 20.3% year-over-year increase, with organic growth at 19.7%. Transaction revenue also saw a healthy climb, with a 15.2% year-over-year increase, reaching $180.6 million. The company's SaaS bookings were robust, making up 97% of new software contract value, indicating a continued demand for cloud solutions and integrated payment offerings in the public sector.
Management at Tyler Technologies has refined its full-year 2024 revenue outlook to a range of $2,125 million to $2,145 million, slightly narrowing from the previously projected $2,120 million to $2,150 million. This updated guidance is in line with BTIG's and the Street's expectations, which are set at $2,141 million and $2,139 million, respectively.
Furthermore, the company has increased its full-year 2024 Non-GAAP earnings per share (EPS) guidance to $9.47-$9.62, up from the earlier estimate of $9.25-$9.45. This new range is higher than both BTIG's and the Street's projections, which were at $9.43 and $9.37, respectively.
Tyler Technologies is scheduled to host a conference call with management to discuss these results on Thursday at 10:00 am ET. The insights from this call are anticipated to potentially inform adjustments to future financial models.
In other recent news, Tyler Technologies has seen a surge in noteworthy developments. The company's second-quarter earnings reflected a 7% year-on-year revenue increase to $541.0 million, primarily fueled by a 23% rise in the Software as a Service (SaaS) segment and accelerating SaaS conversions. In partnership news, Tyler Technologies has entered into an agreement with the Phoenix Municipal Court to implement its cloud-based Enterprise Justice solution, with the aim to enhance the court's case management system.
The company has also joined forces with Envisio to enhance local government budgeting processes and with the Arkansas Department of Labor and Licensing to implement its Augmented Field Operations platform. On the analyst front, Needham maintained a Buy rating on Tyler Technologies, while DA Davidson kept a Neutral rating. Barclays upgraded Tyler Tech from an Equalweight rating to Overweight, anticipating an accelerated transition to SaaS solutions. These are the recent developments for Tyler Technologies.
InvestingPro Insights
Tyler Technologies' recent performance aligns with several InvestingPro metrics and tips. The company's market cap stands at $24.84 billion, reflecting its significant presence in the software sector. With a P/E ratio of 118.66, Tyler is trading at a high earnings multiple, which is consistent with the InvestingPro Tip noting that it's "Trading at a high P/E ratio relative to near-term earnings growth."
The company's revenue growth of 6.7% over the last twelve months and 7.28% in the most recent quarter supports the positive outlook reflected in the earnings report. This growth trajectory is further emphasized by the InvestingPro Tip that "16 analysts have revised their earnings upwards for the upcoming period," suggesting continued optimism about Tyler's financial performance.
Tyler's strong market position is evident in its stock performance, with a 55.61% price return over the past year and trading at 95.93% of its 52-week high. This aligns with the InvestingPro Tip highlighting a "High return over the last year" and that it's "Trading near 52-week high."
For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips for Tyler Technologies, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.