Tyler Technologies, Inc. · NYSE:TYL
Tyler Technologies — Q1 2024 Earnings Presentation
22 slides from Tyler Technologies's earnings presentation, Apr 25, 2024
Slide 1: 2024 First Quarter Earnings Review
2024 First Quarter Earnings Review Tyler Technologies | April 25, 2024
Slide 2: Statement Regarding Use of Non-GAAP Measures
Statement Regarding Use of Non-GAAP Measures Tyler Technologies has provided in this presentation financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-
Slide 3: Forward-Looking Statements
Forward-Looking Statements This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectat
Slide 4: The Leader in Software Solutions to the Public Sector
The Leader in Software Solutions to the Public Sector AT A G L A N C E 1 MARKET 83% R E C U R R ING 16.8% FREE CASH FLOW 98% G R O SS C L I EN T POSITION REVENUES 2023 MAR G IN 2 023 R E T E N T ION R E V E N U E B R E A K D O W N * ERP / COURTS & PUBLIC PLATFORM APPRAISAL & CIVIC K-12 OTHER FINANCI
Slide 5: Tyler 2030 | Pillars for Growth
Tyler 2030 | Pillars for Growth Leveraging Expanding Completing Growing Our Strong Into New Our Cloud Our Payments Client Base Markets Transition Business Goals: Grow revenues, expand margins, and invest in our people & tools
Slide 6: Q1 2024 Summary
Q1 2024 Summary
Slide 7: First Quarter Results Exceed Expectations
First Quarter Results Exceed Expectations O U T P E R F O R M A N C E A C R O S S K E Y M E T R I C S Revenues Non-GAAP Earnings1 Non-GAAP Operating Margin1 Total Revenues $512M, up 8.6% $2.20 EPS, up 25% 23.8%, up 210 bps (organic growth of 7.8%) SaaS Revenues $148.8M, up 22% ARR $1.72B, up 8.8% ¹
Slide 8: First Quarter Results Exceed Expectations: Key Highlights
First Quarter Results Exceed Expectations K E Y H I G H L I G H T S Healthy public Healthy publicsector demand, sector demand Elevated sales activity indicators Increased average ARR value with elevated sales indicators in RFP pipeline and demo trends associated with cloud flips RFP and demo trends
Slide 9: Strong Recurring Revenue Growth
Strong Recurring Revenue Growth Total Revenues Recurring Revenues $512.4M $430.5M % of Total Revenues YoY Growth Recurring revenues up 8.8%,, with organic c growth h off 8.2% $148.8M Subscriptions rose e 11.7%,, with h organic c growth h off 11.4% % +22.0% SaaS Revenues • SaaS revenues grew 22.0% %
Slide 10: Q1 2024 Strong Performance Across Key Metrics
Q1 2024 Strong Performance Across Key Metrics Total Revenues Recurring Revenues Diluted EPS1 Adjusted EBITDA1 $512.4M $430.5M GAAP $1.26 $134.6M +8.6% +8.8% +72.6% +19.6% +7.8% organic +8.2% organic Non-GAAP $2.20 +25% Cash from Operations* Free Cash Flow*1 Gross Margin1 Operating Margin1 $71.8M $57
Slide 11: Q1 2024 New Software Business Mix
Q1 2024 New Software Business Mix # of New Software Deals New Software Contract Value $130 250 218 $104 200 174 $79.8M $78 $65.8M 150 200 92% $52 100 145 83% $69.7M 93% $61.5M 87% 50 $26 29 17% 18 8% $10.1M 13% 7% 0 $- $4.3M 1Q23 1Q24 1Q23 1Q24 License Subscription License Subscription 11
Slide 12: Notable Wins
Notable Wins Growing cross-sell synergies New SaaS deals SaaS flips • Ada a County,, ID D • Palm m Beach,, FL,, and d Evanston,, IL • Fulton n County,, GA A (Atlanta) • Records Management + ERP Pro, including • Enterprise Public Safety Suite • $1.3M ARR payments • Competitive SaaS wins • Enterprise
Slide 13: Notable Wins
Notable Wins Early traction with AI-powered acquisitions State enterprise agreement activity • CSII • State e off Mississippii • Dallas County, TX - existing Enterprise Justice client • New 3-year contract • Largest CSI product win since acquisition • Extends 14-year relationship • Adding >$900K of
Slide 14: Remaining Term Debt Retired With Strong Cash Flow
Remaining Term Debt Retired With Strong Cash Flow Under One Times Proforma EBTIDA at 3/31/24 $1.355B Repaid d $1.2B B off termm debtt since e NIC C $1,400M acquisition n in n Aprill 2021 Net Leverage 2.07x $955B $1,200M Net Leverage $875B $875M 2.07x $1,000M Net Leverage Net Leverage $740M 1.54x 1.5
Slide 15: 2024 Annual Guidance
2024 Annual Guidance
Slide 16: 2024 Annual Guidance
2024 Annual Guidance ACCELERATING SAAS SHIFT AND CLOUD TRANSITION PROGRESS R E V E N U E D R I V E R S Total Revenues Guidance midpoint implies organic growth of approx. 8.5% (approx. 9% excluding merchant fees) $2.110 - $2.140B Revenue range percentage growth expectations: $1.952B • Subscriptions g
Slide 17: 2024 Annual Guidance
2024 Annual Guidance Diluted EPS - GAAP1 Diluted EPS - Non-GAAP $3.88 $5.27 - $5.47 $9.10 - $9.30 $7.80 2023 2024 Guidance 2023 2024 Guidance Free Cash Flow Margin R&D Expense $109.6M $125.0 - $130.0M 17% - 19% 16.8% Most recent 2024 guidance provided on 4/24/24 2023 2024 Guidance 2024 Guidance 2023
Slide 18: 2024 Annual Guidance
2024 Annual Guidance Quarterly Cadence Drivers Revenue e Guidance:: $2.110 0 - $2.140B • Slightly weighted toward second half 2024: ~49% 1H vs ~51% 2H • SaaS revenues grow sequentially throughout the year • Transaction revenues grow sequentially in Q1 and Q2, with smaller sequential growth from Q2 t
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Measures
Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP GA 20
Slide 21: Non-GAAP Measures
Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP G AA 21
Slide 22: tylertech.com
“. tyler Empowering people who serve the public® ey e x) technologies