tyler technologies earnings call transcript
That amount includes e-filing revenue of $14.7 million, up 10.5% over last year. I would, however, like to express my gratitude to all Tyler employees, who once again displayed the heart of Tyler in their response and handling of the security incident, especially our internal IT teams that worked around the clock with an aggressive and coordinated response to recover and remediate our internal systems. In our earnings release, we have included non-GAAP measures that we believe facilitate understanding of our results and comparisons with peers in the software industry. And so â and I think they're starting to recognize that. So it's been on our list, our R&D list to put in some more investment, and yet, we were able to find a company with a solid product to bring in. But again, recognizing that there's still going to be significant demand for on-premises. We expect 2020 GAAP revenues will be between $1.117 billion and $1.129 billion, and non-GAAP revenues will be between $1.118 billion and $1.130 billion. Agilent Technologies Inc. (A) Q4 2020 Earnings Call Transcript; Earnings reports to watch for the week of Nov. 23; Agilent (A) Q3 earnings rise, beat forecast; revenue down 1%; Agilent Technologies Inc (NYSE: A) Q2 2020 Earnings Call Transcript The pipe is there. In fact, one of the things that we've done over the last six months, you probably remember us talking about over the last couple of years is our white space initiative. Please go ahead. I would now like to turn the conference over to Mr. Moore. Thanks for taking my questions. You may now disconnect. Or is this a pretty good cadence to think about that growth quarter over quarter and year over year? Davidson. Thanks a lot guys. We expect 2020 GAAP diluted EPS will be between $4.53 and $4.63 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate. We also won the Coolest Overall Technology Innovation Award from School Technology (sic) [Transportation] (17:21) News for our new bus attendance application, which works with Tyler's bus routing solutions to provide schools a tool for limiting bus capacity, contact tracing and social distancing on the school bus. It's the first time we've had a state-level contract for that product, and that's a product we acquired about a year ago. The largest deal they did this quarter was Sedgwick County, Kansas, that was about a $1.6 million license deal. In fact, I read an article this morning where Mitch McConnell in the Senate said that getting a stimulus passed by the end of the year was his new top priority as well as â and he made a comment specifically â as well as state and local government stimulus. Okay. With me on the call today is Brian Miller, our Chief Financial Officer. Tyler Wood -- Northland Securities -- Analyst. Our guidance for the full year of 2019 is as follows: We expect 2019 GAAP revenues will be between $1.082 billion and $1.095 billion, and non-GAAP revenues will be between $1.090 billion and $1.103 billion. It's just an evolution to -- these are our standard terms now. Thanks, Lynn. For the trailing 12 months, bookings were approximately $1.2 billion, up 18.9%. A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. They have two PE firms -- got together and have acquired a number of assets of significant size. But it seems like the last couple of quarters, there's been some more movements there. It was about our phone systems, our website and things of that nature. ...Operator Hello, and welcome to today's Tyler Technologies first quarter 2016 conference call. That has not slowed down during COVID. So we'll do that. Our next question comes from Charlie Strauzer of CJS Securities. And has there been any change in the types of RFPs that are coming to market, maybe in terms of size or the products that are in demand in the current environment? We'd refer you to our Form K and other SEC filings for more information on those risks. Our backlog at the end of the quarter was $1.41 billion, up 13.9%. So, and I think what's encouraging about that to me, Matt, is that Tyler really is out in the forefront of this. So, looking out sort of a long time, but sort of five to seven years, right? The intentional reduction in the term of new subscription contracts also impacted bookings growth. I think what you were alluding to there is, there does seem to be bipartisan efforts to provide more funding, specifically for state and local government IT upgrades. I mean, I do believe the shift to how government's going to operate, how they're going to deliver services to their citizens, I believe that was going to change pre-COVID, and I think it's going to change and accelerate past that. Good morning, gentlemen. Thank you very much for attending today's presentation. Our Public Safety division had never signed two contracts with licenses greater than $1 million each in the same quarter until this quarter, when we signed large contracts with Sedgwick County, Kansas and the City of Laredo, Texas. These include the largest deal, a contract for the Veterans Administration Vocational Rehabilitation and Education for a $3.2 million license fee. We've competed with them in the markets for years. Thanks, Eric, and thanks everybody for joining us today. Hi, Lynn, Hi, Brian. Our competitive position remains high, in part reflecting our increased investment in R&D over the last two years, and we signed a record number of new deals in the quarter. We expect that revenue growth for the fourth quarter will continue to be significantly impacted by the pandemic, and to a much lesser extent, the IT security incident. And then, can you talk a little bit about the reaction from clients in the salesforce now that you're a few quarters into this initiative to pursue, I guess, shorter-duration contracts? And secondly, just you're generating a ton of cash, really just want to just get a better sense of now that you've got so much cash on the balance sheet, any change in priorities for the use of cash? Yeah, so I would say two things. Tyler Technologies Investor Presentation - November 2020: May 20, 2020: Tyler Technologies Fact Sheet 2020: May 10, 2018: Tyler Technologies ASC 605 to ASC 606 Transition: Apr 18, 2018: Tyler â¦ And you talk about budget constraints. And then just a quick follow-up, Brian, while I've got you. It operates through the Enterprise Software, and Appraisal and Tax segments. Please proceed with your question. We remember how we started the year in the first quarter before it hit. It's interesting, the shift and move to the cloud, the SaaS, even Tyler cloud or whatever, it has been increasing. This brings in our whole Connected Communities vision and things that we're already doing. We're investing. There has been no evidence of compromise in the separate and segregated environments where we host software for our clients. So, being successful with your existing base is such a big part of getting the new business and they're just doing a great job. Good morning, guys. I just wanted to maybe touch on the ARR metric and just, I guess, better understand what your broader expectations for maybe what ARR should be growing. I think Snohomish County, Washington was a new e-filing customer. Take care. The value weighted average term of new SaaS contracts this quarter was 4.3 years compared to 2.7 years in Q3 of last year. And then, as it relates to MicroPact, we're still learning and they're still learning really about this -- the partner channels, and they have spent some time and made some investments over the last couple of years. Your next question comes from Jonathan Ho with William Blair & Company. We expect 2019 non-GAAP diluted EPS will be between $5.22 and $5.35. But some of these lines, where there's a little bit larger deals, we see this with Odyssey, sometimes even in our core business, the predictabilities gets a little bit off internally. Tyler Johnson â Senior Vice President and Treasurer. So a good example of those investments. So, we're in the middle of all that. We've gotten, as you mentioned, we â I think some of the initial traction was in Texas. To your question about R&D, like almost every investment we do, we don't just put them in and let them run. North Carolina, adopting Brazos and our new e-warrants solution statewide, where those have typically been purchased at the local level, and they did that in conjunction with implementing our Odyssey court system statewide. I think I talked about last time â at the last call â the prior Fed Chairman Bernanke, he made a comment coming out of the Great Recession, that one of the things that they, I think, sort of missed the boat on was they did not devote enough money to state and local governments when they were doing their stimulus then. But again, this kind of the secret sauce of Tyler. Organic revenue growth was 3.3% on a GAAP basis and 2.7% on a non-GAAP basis. Contents: Yeah, I'd say, broadly, we expect to be sort of growing into this new level of R&D. Image source: The Motley Fool. As a result, we expect to continue to see year-over-year margin expansion in the fourth quarter. While we remain confident in our long-term outlook, there are uncertainties around the continuously evolving COVID-19 pandemic and its impact on our operations and those of our clients. And along with that, then we'll be sort of back on a trajectory of long-term operating margin improvement that's more consistent with what we've seen in -- over a longer period of Tyler's history. All of our software-related revenue lines grew by double digits, and organic revenue growth accelerated from the second quarter. Fully diluted shares for the year are expected to be between 40 million and 40.5 million shares. So, I do expect some investment there. OK. Well, thank you, Nick, and thank you all for joining us on our call today. 8 million and free cash flow grew 34.8% to $165.4 million, both new quarterly highs. As we've introduced these new products, CAD and e-records, the number of go-lives that have been successful, in getting those references, that's the stuff we don't spend a lot of time talking about. We're still learning a little bit about these markets. Got it, helpful. Yeah, sure, Kirk. And yes, we're always â we've talked before â we're always looking at deals and that's continued. So clearly, we're seeing the impact of Tyler on the public safety business. The impact of the incident was directed at our internal corporate network and phone systems. Technology is an increasingly critical factor in helping government function effectively, especially in difficult times. And Brian, just a follow-up for you. We're pleased to continue to build on the strong first half of the year with a very solid third quarter. We certainly have had elevated investments -- over the last couple of years, I think R&D has been up more than 30% in each of the last two years. But at some point, over the next year or two, should we expect even acceleration of that growth, as you sign -- you guys sign up more customers? For our recently acquired MicroPact solution, we signed notable arrangements for Entellitrak with the Utah Department of Health, the Office of Personnel Management with the Inspector General's Office, and the Illinois Department of Agriculture. Our win rates are good across the board. Yes. It's these things like SceneDoc, SoftCode, Brazos, Socrata. Great. And so, we generally take an approach where we continue to evolve the products without blowing our customers out of the water and delivering this in a non-disruptive way to both our clients, as well as, our business strategies. I think you're right. Tyler Technologies Q4 2010 Earnings Conference Call Transcript â 2011-02-24 â US$ 54.00 â Final Transcript of TYL earnings conference call or presentation, 24-Feb-11 12:00pm ET We won't be rewriting any of the major apps. Thanks, everybody. Cash provided by operations and free cash flow both reached new quarterly highs in the third quarter, as did non-GAAP EPS. Please proceed with your question. I'd just love to hear the pipeline of activity around kind of statewide and what's driving that. If there are any further questions, feel free to reach out to myself, Brian or Lynn. And just given the duration shift in bookings, is this sort of a more relevant metric when we think about sort of the forward-looking performance of the company? It helps modernizing our portfolio short-term. Hey, guys. And you've had maybe better success selling, maybe either more or different modules within that suite that's relatively broad at the end of the day. Yes. But certainly, our cloud business, our subscription business has been growing in the 20% to 30% range for very, very consistently over the last several years, and we expect that to continue. So I do expect we'll continue to build on that. It's a technical, strategic question and I'm not sure I'm ready to give you that product roadmap right now, but it's something that we're working on intently. And you're right, it's â we've done a lot over the last several years, both in terms of expanding our functionality. I mean, are you going to rewrite it so that we have sort of a multi-tenant, true SaaS solution? I mean, we've done the work on the product and we don't talk a lot about it, but we had two really big go-lives this quarter, Scott. Yeah, I think going back to my comments before, I'm pleased where public safety sits today. Thanks. Got it. Yeah, thanks very much and congrats on a good quarter in a tough environment. Yes, Scott, it's actually â it's quite a number of factors. As you know, it's a reference business. Thanks, Brian. Our balance sheet is stronger than ever, with $650 million in cash and investments and no debt. Such statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties, which could cause actual results to differ materially from these projections. Great. Yeah. The security incident did impact our ability to deliver licenses and services during late September and into October. Hi, everyone. For the year, estimated pre-tax noncash share-based compensation expense is expected to be approximately $62 million. That's it for me. So, the 51% mix on subscriptions this quarter, you've got MicroPact deals that are going to hit this quarter, assuming some of them are going to be perpetual license since it tends to be more perpetual. Our next question comes from Joe Goodwin of JMP Securities. Public safety tends to be much more heavily weighted toward license deals today. I'd say that in terms of the sort of number of deals we look at, it's probably kind of consistent with what we were before. Thanks, John. From the morning of September 23, our incident response efforts have been facilitated by Tyler's internal resources as well as third-party providers. And then from a follow-up perspective, you had a couple of MicroPact deals that kind of moved out of Q3 into Q4, and I certainly understand the rationale there. And I guess, how do you balance that? And you just can't overlook that, making sure that our clients are happy and feel like they're getting value. Thanks. Thanks for taking the call. As you know, we don't put out quarterly guidance. On the product development front, we are continuing all of our strategic initiatives, including product R&D projects, and accelerating our move to the cloud and still expect that R&D expense will grow at more than 9% for the year. We've got existing customer commitments. Our core software license and subscription revenues combined grew organically approximately 20%. Revenues from e-filing and online payments, which are included in subscriptions, were $23.2 million, up 9%. Transaction-based ARR was approximately $93 million, up 9%, and non-GAAP maintenance ARR was approximately $472 million, up 6.2%. Those third-party providers include FireEye Mandiant, a nationally recognized incident response provider. We've had some really good examples of that in the last couple of years. Your host for today's call is Lynn Moore, President and CEO of Tyler Technologies. We -- in the early days of our cloud business, we were, I think, less -- we -- and this is going back 15 years ago, we and our clients, were newer to it. In Orlando's case, for example, our team got multiple personal handwritten notes from the clients just all about the success of the implementation. About $4 million of that is what we talked about earlier on the call related to the IT security incident where we lost primarily services revenues, some license revenues, as a result of a lack of ability to interface with clients while our systems were compromised. Gross margins came in probably the best that I remember them being. So, I think that's coming. Great. And then, we expect to continue to win new business as we did this quarter. And I think the key selling point there was really the whole Tyler Alliance story. Dell Technologies Inc. Q2 2021 earnings call dated Aug. 27, 2020Corporate Participants: Rob Williams â Head of Investor Relations. We signed 49 new on-premises contracts in the quarter that included software licenses greater than $100,000, and those contracts had an average license of $293,000, compared to 29 new contracts with an average license value of $465,000 in the third quarter of 2018. So, we are seeing some of that right now. 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