Tyler Technologies, Inc. (TYL) Tops Q2 EPS by 7c; Guides Above the Street

Tyler Technologies, Inc. (NYSE: TYL) reported Q2 EPS of $0.52, $0.07 better than the analyst estimate of $0.45. Revenue for the quarter came in at $124.4 million versus the consensus estimate of $117.55 million.

Tyler Technologies, Inc. sees FY2014 EPS of $1.95-$2.22, versus the consensus of $1.87. Tyler Technologies, Inc. sees FY2014 revenue of $482-489 million, versus the consensus of $476.6 million.

“This was the best quarterly performance in the company’s history by virtually any measure,” said John S. Marr Jr., Tyler’s president and chief executive officer. “License and royalty revenues grew by nearly 20 percent, while subscription revenues rose more than 50 percent for the second consecutive quarter. We achieved gross margin expansion of 150 basis points and operating margin expansion of 410 basis points, even as we continued to invest in long-term growth opportunities such as e-filing for courts.

“In addition to record revenues and earnings, our bookings and backlog also reached new highs. Bookings for the quarter and the trailing 12 months grew 62.6 percent and 47.8 percent, respectively, and our backlog at June 30 rose 52 percent over last year. The total value of SaaS client contracts signed during the quarter was almost $18 million as we added 65 SaaS clients, a new quarterly high.

“During the second quarter we signed contracts for our Odyssey® case management solution with courts in 13 California counties, including Los Angeles and San Diego, two of the nation’s five largest counties. Bookings and win rates were very strong across all of our major product suites, which is indicative of Tyler’s market-leading competitive position in the local government space. More important, beyond the initial contract values reflected in current bookings, we expect these new contracts will generate long-term recurring revenue streams from maintenance or subscriptions, and in the case of most of the new courts contracts, transaction-based e-filing,” continued Mr. Marr.

“Our results in the first half of 2014 significantly exceeded our expectations, and because the outlook for the remainder of the year is increasingly positive, we are revising upward our revenue and earnings guidance to reflect that outlook,” Mr. Marr concluded.

For earnings history and earnings-related data on Tyler Technologies, Inc. (TYL) click here.

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