Tyler Technologies Inc. (NYSE: TYL) has maintained its Neutral rating with a price target of $550.00 at DA Davidson. Despite slightly missing revenue expectations, the technology firm exceeded forecasts for Non-GAAP earnings per share (EPS).
The company experienced an 8% year-over-year increase in third-quarter bookings, totaling $586 million. Over the past twelve months, Tyler Tech’s bookings have shown strong growth of 13%, indicating continued business momentum.
Management has confirmed the midpoint of their previous revenue guidance for 2024, with a narrowed range, signaling a stable outlook. They have also raised the midpoint of their Non-GAAP EPS guidance by 2%, indicating improved profitability expectations.
A conference call is scheduled for Friday morning at 10:00 AM ET to discuss the quarterly results in more detail. Updates to the forecasts are expected following the call, providing further insight into the company’s financial trajectory.
The reaffirmed guidance and the slight adjustment to the EPS forecast suggest a cautious but positive outlook on the company’s performance. Stakeholders and investors await updates post the conference call for any potential changes to the current financial outlook.
In other news, Tyler Technologies reported a strong third-quarter performance with SaaS revenue reaching $166.6 million, a 20.3% year-over-year increase. Transaction revenue also saw a 15.2% year-over-year increase, reaching $180.6 million.
Analyst firm BTIG has maintained a Buy rating on the company, and Tyler Technologies has revised its full-year 2024 revenue outlook to a range of $2,125 million to $2,145 million. The company has also increased its full-year 2024 Non-GAAP EPS guidance to $9.47-$9.62.
In partnership news, Tyler Technologies has entered agreements with the Phoenix Municipal Court and the Arkansas Department of Labor and Licensing to implement cloud-based solutions to enhance efficiency.
Barclays upgraded Tyler Tech to Overweight, Needham maintained a Buy rating, and DA Davidson kept a Neutral rating in recent analyst updates.
InvestingPro Insights
Tyler Technologies’ recent performance aligns with key metrics highlighted by InvestingPro. The company’s 6.7% revenue growth over the last twelve months supports the 8% year-over-year increase in third-quarter bookings. This growth trajectory is further supported by the company’s strong return over the last year, with a 55.61% price total return.
InvestingPro Tips indicate that 16 analysts have revised their earnings upwards for the upcoming period, aligning with the company’s increased Non-GAAP EPS guidance. Additionally, the tip suggesting that Tyler Technologies operates with a moderate level of debt could be seen as a positive factor for its financial stability and growth potential.
Tyler Technologies is currently trading near its 52-week high, with its price at 95.93% of the 52-week high, reflecting the positive performance and outlook discussed. For investors seeking more in-depth analysis, InvestingPro offers 17 additional tips for Tyler Technologies to provide a deeper understanding of the company’s financial position and market performance.
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