On Friday, Tyler Technologies, Inc. (NYSE: NYSE:TYL) stock received a reiterated Market Outperform rating and a $580.00 price target from JMP Securities, following the announcement of its second-quarter financial performance for fiscal year 2024.
Tyler Technologies reported a revenue increase of 7% year-over-year, reaching $541.0 million, aligning with consensus estimates. Additionally, the company saw a rise in non-GAAP earnings per share (EPS) to $2.40, surpassing the consensus forecast of $2.30.
The company's second-quarter success is highlighted by the addition of 203 new software subscription contracts, marking a 19% growth from the previous year. Tyler Technologies' CEO, Lynn Moore, expressed satisfaction with the company's performance, stating that key metrics such as revenues, earnings, operating margin, and cash flow all exceeded expectations.
Moore also noted the importance of the substantial shift towards Software as a Service (SaaS) in their new software contract mix, which has put pressure on revenues and margins.
This positive performance has been reflected in Tyler Technologies' stock movement, with shares up 35% year-to-date (YTD), outperforming the Russell 3000 index, which has seen a 12% increase within the same timeframe.
Tyler Technologies' strong quarterly report and the subsequent reaffirmation of its Market Outperform rating by JMP Securities underscore the company's robust financial health and its ability to exceed market and analyst expectations.
The company's focus on expanding its SaaS offerings appears to be paying off, as evidenced by the significant number of new software subscription contracts and the overall positive trajectory of its financial metrics.
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