tyler technologies earnings call transcript

So, it's really just a continuation of stuff that we've been talking about. Maybe not a question directly from that, but as how it impacted you during the quarter? 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. I think when I look at the business overall of the public sector, I think the shift that we're starting to see, that part of it's due to COVID, but it's new, more online, mobile, public access – things that are interaction with the parents, with the schools – but even more just citizens engaging with their communities. Tyler Technologies, Inc. Common Stock (TYL) Stock Quotes - Nasdaq offers stock quotes & market activity data for US and global markets. From the morning of September 23, our incident response efforts have been facilitated by Tyler's internal resources as well as third-party providers. 44. As we continue to evolve our applications in response to the public sector needs, this collaboration will enable Tyler's clients to deliver better experiences for citizens and further enable governments to use data as a strategic asset in the design, management, and delivery of their programs. Yeah, Jonathan, I'd say, certainly, as we become more and more of our new business coming through the cloud, that the ARR metric becomes more important. The teleconference begins at … 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. Yes. We've talked about where rates were five years ago versus today, and where we think they'll be in the future. So, it was really short term. I think it's -- this is kind of something I've been talking about for the last several quarters. I don't expect that the margin growth will be as high in Q4 or that we'll see 300 basis points next year. Linkedin. But we do expect to grow our state business and certainly our federal business as we expand beyond our traditional focus just on local government. We spent a lot of time talking about cybersecurity. Public safety tends to be much more heavily weighted toward license deals today. Every quarter goes by, we're another quarter down in our R&D and further along in our investments. Fully diluted shares for the year are expected to be between 40 million and 40.5 million shares. And just one quick follow-up for Brian, if I could. So, we're in the middle of all that. We're more compliant than we were before. And I think we're seeing that there more so than, say, on the other sides of the business. So, I think it's those kinds of -- the three-year term that we generally lead with is, I think, pretty consistent with what other vendors provide. Our core software revenues from licenses and subscriptions grew 26% on a non-GAAP basis with 20% organic growth. And so that continues to – that loss of that revenue continues to be – have a positive impact. Go ahead. And so, I think that's been part of it. CHT's SaaS solution serves courts of all states across the United States and Canada, including five statewide agreements, and their addition will complement and elevate our existing suite of court solutions. See you at the top! They were a Tier 1 client for both CAD and records. For the third quarter, our annualized non-GAAP total recurring revenue, or ARR, was approximately $830 million, up 11%. To come back to the transaction costs and some of the delays you're seeing in evictions and recovery of debt, does this perhaps create a pent-up demand as we look into next year, assuming that some of these restrictions let up and the courts kind of open up. [Operator instructions] As a reminder, this conference is being recorded today, October 31st, 2019. So yeah, if we look out over the next couple of years, margin improvement is still a big part of our story, and something that we do have a focus and discipline on and we'd expect to be getting back to that. That's something that's going to continue. 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. As we reported in a Form 8-K filed on September 29, we discovered early on September 23 that an unauthorized third-party intruder had disrupted access to some of our internal phone and IT systems. We talked with Clarence Anthony, the CEO there, and this is for their upcoming user conference. And just whether or not that resonates with clients or not, meaning, are there things you all can do from an upfront pricing perspective that can help you maybe take share in this period of uncertainty? And that was a full suite of CAD, enterprise records, but also pulling through things – SoftCode, our field reporting, Tyler Corrections, Brazos, Socrata, Mobility – all these things. I think our total R&D expense, excluding acquired companies, was pretty flat with last year's Q3. For the year, estimated pre-tax non-cash share-based compensation expense is expected to be approximately $77 million. And obviously, valuations across software have been fairly robust over the last six months. And so – and I think they're starting to recognize that. But then again, stepping back, it was that high-end ERP space that really got out of the gate fast in Q1 and that's what's still so encouraging. 8 million and free cash flow grew 34.8% to $165.4 million, both new quarterly highs. Got it. Thanks for taking my questions. The new credit facility also provides a minimum of $250 million additional uncommitted funding through an accordion feature. It's interesting, the shift and move to the cloud, the SaaS, even Tyler cloud or whatever, it has been increasing. We expect 2019 GAAP diluted EPS will be between $3.50 and $3.63 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate, as well as, the final valuation of acquired intangibles. So deals slip in, deals slip out. May 2, 2020. And what we've seen, generally is, we've seen a little bit of difference in terms of bit of difference in terms of different market segments but public safety the demand's still there. Thank you, guys, for taking my question. This has been an investment year from an R&D standpoint, which has impacted your operating margins. And just to build on that, with budget pressure on state and local governments, are you starting to see, I guess, a greater desirability towards moving to cloud and SaaS solutions and particularly, for the cost savings side, is that starting to accelerate? I guess, Lynn, I wanted to go back to this concept of this digital wakening that we're clearly seeing across other enterprises, other segments of the market. It's kind of -- that's just the nature of the business and we don't really talk about it. Please go ahead. So, that's a bit of a drag on our margin improvement. It still tends to be a little bit seasonal that way and they have a lot of big deals in the pipeline. We immediately activated our internal incident response plan, which included taking impacted systems offline to further contain the spread. One was in Orlando, Florida, and that was really our first Tier 1 CAD go-live. In addition, it's hard to underestimate, really what we've done on the service side as well, really shoring up client references. I get there will be budget uncertainty, but is the – is there anything you can see that gives you more confidence that that shift to digital could also accelerate in that government vertical? 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 – and he made a comment specifically – as well as state and local government stimulus. Now I'd like to turn the call back over to John for his comments. For our public safety solutions, we signed significant contracts with Nassau County, New York; the Metropolitan Computer-Aided Dispatch in Champaign County, Illinois; Fulton County, New York, and Grove City, Ohio. Date Type Description; 02/12/2021: Earnings: Tyler Technologies Inc Fourth Quarter Earnings for 2020 Release: 02/12/2021 10:00 EST: Misc: Tyler Technologies Inc Fourth Quarter Earnings Conference Call for 2020 Total depreciation and amortization is expected to be approximately $76 million, including approximately $52 million of amortization of acquired intangibles. Brian, I apologize if I missed this, but any impact from Courthouse on the fourth-quarter guidance? We've also talked about the Fed has specific bond buying programs for counties and cities, and I think that's going to continue. I think what's particularly encouraging is this continued move-up market, which is also part of the fact that we're – the Tyler Alliance story – the total Tyler story is really starting to resonate. Our software subscription bookings in the quarter added $10.6 million in new annual recurring revenue, up 58.9% over last year's $6.7 million. Great. And we're seeing that really across all of our divisions. Tyler Technologies Q2 2009 Earnings Conference Call Transcript. Lynn? I don't know that we're in a position still to sort of outline, you can expect this in this quarter and that in that quarter. I guess, there's actually somewhat less, although, it's on a bigger sample, and we have pretty negligible attrition in general. That would be great. Logo of jester cap with thought bubble. As you look at the pipeline, is there a healthy amount of activity on more statewide deals? Great. Our Public Safety division continues to expand its market with the year-to-date average deal size up 92% over last year. And through the first nine months of 2019, we have already surpassed the total number of new deals signed in the full year of 2018. That's certainly our expectation. Our backlog at the end of the quarter was $1.41 billion, up 13.9%. We have some sort of backlog of e-filing, and then, we've got commitments from some clients that are in the process of implementing case management solutions that will go live on e-filing once that system's in place. Pat Walravens -- JMP Securities -- Analyst. I know you're up at 10% year over year. Yes. Thank you very much for attending today's presentation. 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 heard that a little bit anecdotally. Our core software license and subscription revenues grew – combined grew – 8.1% on a non-GAAP basis with 7.8% organic growth. And yes, we're always – we've talked before – we're always looking at deals and that's continued. In Orlando's case, for example, our team got multiple personal handwritten notes from the clients just all about the success of the implementation. Now I'd like for Brian to provide more detail on the results for the quarter and update our annual guidance for 2019. Edited earnings call transcripts of Tyler Technologies, Inc. (TYL) stock With me on the call, today are Lynn Moore, our president and chief executive officer; and Brian Miller, our chief financial officer. As public sector clients continue to increasing trend toward the cloud, we continue to evolve our applications in response to their needs. We encourage you to check for updates there as well. During the course of this conference call, management may make statements that provide information other than historical information and may include projections concerning the company's future prospects, revenues, expenses and profits. Let's conquer your financial goals together...faster. And then, Brian, a question for you. Our products are there. Thanks, Lynn. And that Tyler is better positioned than our competitors to provide innovative solutions to help our clients meet new challenges. Please go ahead. Hi, good morning. We had our own existing jury management solution. ET and will be hosted by H. Lynn Moore Jr., president and CEO; and Brian K. Miller, executive vice president and chief financial officer. Fourth Quarter 2018 Financial Highlights: Total revenues were $242.0 million, up 11.2 percent from $217.7 million for the fourth quarter of … If there are any further questions, feel free to reach out to myself, Brian or Lynn. And we talk about how it takes a little bit of time with some of these investments, these acquisitions, and they're really starting to hit their stride; they're doing a great job. So it is a – it's very preliminary right now, but we do drill down. I continue to be extremely proud and inspired by how the entire Tyler team has risen to face the challenges of this year head on, supporting our clients as well as each other. Software license and royalty revenues in the third quarter were the second-highest in our history, increasing 13.1%. Thanks. Please note that all growth comparisons we make on the call today will relate to the corresponding period of last year unless we specify otherwise. And so it really puts us in a great position when things – when we sort of get on the other side of this. I mentioned some of the metrics. Yeah. 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. We know that what they've been doing is -- has been a little bit disruptive in the market in terms of trying to consolidate product lines, consolidate business BizOps. Over time, as the market matured, and generally, the de facto relationship had services paid for on the side and the annual fee typically was a subscription fee and the hosting fee, it became less necessary for us to require our clients to sign these longer-term agreements. It operates through the Enterprise Software, and Appraisal and Tax segments. We currently estimate the impact to revenue was approximately $1.5 million in the third quarter and $2.5 million in the fourth quarter. Well, the partners were getting that business but didn't turn around. So, we are seeing some of that right now. And then just a quick follow-up, Brian, while I've got you. We also added two new Odyssey clients in California, a license arrangement with Shasta County and a SaaS agreement with the Mendocino Superior Court, along with a new fixed-fee e-filing contract with Snohomish County, Washington. We were pleased with our third quarter results as we continue to execute at a high level, particularly in light of the continuing impact of the COVID-19 pandemic. And so, this really is an extension of that. In Q3 of last year, we added 81 new subscription-based arrangements and had 31 on-premises conversions, representing approximately $29 million in total contract value. Tyler Technologies, Inc. (TYL) CEO Lynn Moore On Q2 2018 Results - Earnings Call Transcript Jul. I think that's a significant priority. Tyler Technologies (NYSE:TYL)Q3 2019 Earnings CallOct 31, 2019, 10:00 a.m. Some of that's in R&D and some of that's in operating expense, but those investments are sometimes around the product, sometimes around the integration with other Tyler products, sometimes beefing up the organization to take advantage of the opportunities that they have ahead of them. 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. Tom Sweet — Chief Financial Officer. I've got a question for you on the competitive front. Our estimated non-GAAP annual effective tax rate for 2019 is 24%. We also signed significant Justice solutions contract with Dallas County, Texas, including a license arrangement for our Odyssey Solution for criminal and justice of the peace courts valued at approximately $8 million and a SaaS arrangement for our Jury Management Solution valued at approximately $1.6 million. Our non-GAAP operating margin increased sequentially 100 basis points from 24.6% in the second quarter to 25.6% in the third quarter but declined 150 basis points from last year's third quarter. 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. Coming into the year, pre-COVID, we had had a goal kind of holding margins flat with last year after a couple of down years as a result of our significant increases in R&D. Great. Just curious on – when you're doing a conversion from an on-premise customer into the cloud or subscription, do – and I understand this might vary across products, across Tyler. Historically, it hasn't been a big focus. I think my expectation, if you go back to the Q1 call, my expectation might have been – you might have seen more on the valuation front. At this time, all participants are in a listen-only mode. All of our software-related revenue lines grew by double digits, and organic revenue growth accelerated from the second quarter. We were out to a really great start and so we sort of expect that to continue. Tyler Technologies has generated $4.16 earnings per share over the last year and currently has a price-to-earnings ratio of 90.0. Scott Berg -- Needham and Company -- Analyst. We expect our total capital expenditures will be between $45 million and $47 million for the year, including approximately $20 million related to real estate and approximately $6 million of capitalized software development costs related to MicroPact. It's these things like SceneDoc, SoftCode, Brazos, Socrata. As we've talked before, as you guys know, it's -- everything we do is out in the public. Our next question comes from Charlie Strauzer of CJS Securities. 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 mentioned from Orlando and Burlington, which are key for -- to move upmarket. But I think, you've also seen this year, the number of new names we're getting is up significantly year over year. We also announced yesterday that we have acquired Courthouse Technologies, a leading provider of jury management systems based in Vancouver, British Columbia. Super. From day one, we have been regularly communicating with our client community and have actively maintained an incident response page on our website. We also signed a SaaS agreement for our Munis ERP solution valued at $4.3 million with the Union County Public Schools in North Carolina. Great. [Operator instructions]First question comes from Kirk Materne, Evercore ISI. It's a lot of operational execution to try to get all those closed. What are you seeing just from a state, local engagement activity metric? During the third quarter, our Virtual Court solution, which has been selected by approximately 60 courts nationwide, received the AWS Best Remote Work Solution award in conjunction with its use in the city of Alvin, Texas. And you're right, it's – we've done a lot over the last several years, both in terms of expanding our functionality. Yes, if you look at the change in our full year revenue guidance, I believe the midpoint of our guidance came down by about $11 million compared to where that was when we reinitiated guidance after Q2. It's funny, I think 10 days from now will be our five year anniversary of acquiring that, and I think it's a testament to the work that those people have put in and the investments we've put in. Our largest SaaS deal in the quarter was a $6 million contract with the city of Tigard, Oregon in the port – excuse me – in the Portland metropolitan area for our Munis ERP and EnerGov Civic Services solutions. We're certainly seeing that our public safety solution had not had much success in Texas historically, and in the last year or so, they've had a number of deals in Texas. If you have any further questions, please feel free to contact Brian Miller or myself. Organic revenue growth was 3.3% on a GAAP basis and 2.7% on a non-GAAP basis. Thanks, and good afternoon. Our backlog at the end of the quarter reached a new high of $1.55 billion, up 9.2%. Keith Housum -- Northcoast Research -- Analyst. Subscription contract value comprised 51% of the total new software contract value signed this quarter, compared to 37% in Q3 of last year. So, I think that's coming. We're doing things like that around our Tyler Detect, which is our cybersecurity, our research, taxes, things like that. It was certainly not a strength of ours. I think we're doing a little bit of that, and we're doing a little bit of that with some of these products that we're really planning to try to introduce this year or that we really were expecting to sort of jump start this year. We also signed a multi-suite contract with Ellis County, Kansas for our New World Public Safety, Odyssey Courts, Socrata Data & Insights and Brazos Solutions and contracts with the city of Brownsville, Texas and Des Moines, Iowa for our Public Safety and Socrata Data & Insight Solutions. Lynn, so I think it was around this time year that you guys started to see that cross-sell traction in New World Public Safety into some of your existing Tyler accounts. Mr. Marr, I'll turn the call back over to you for closing remarks. 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 Current unbilled receivables, DSOs were unchanged from last September at 79 days some budget certainty take! State of Nevada 's one of the biggest initiatives this year was our e-records which scheduled. 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At a high tyler technologies earnings call transcript, yes, Jonathan, I really like our position right now approximately.

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