Tyler Technologies Updates 2021 Annual Guidance
June 07 2021 - 6:30AM
Business Wire
Guidance Includes Impact of NIC Acquisition
Tyler Technologies, Inc. (NYSE: TYL) today announced updated
annual guidance for 2021, which includes the results of NIC Inc.
from the date of its acquisition, April 21, 2021.
As of June 7, 2021, Tyler Technologies is providing the
following guidance for the full year 2021:
- GAAP total revenues are expected to be in the range of $1.507
billion to $1.537 billion.
- Non-GAAP total revenues are expected to be in the range of
$1.510 billion to $1.540 billion.
- NIC is expected to contribute non-GAAP revenues from the date
of acquisition of $310 million to $315 million, which includes
approximately $21 million of COVID-related revenues from TourHealth
and pandemic unemployment services that are not expected to recur
in future years.
- NIC's full year pro-forma non-GAAP revenues are expected to be
approximately $475 million to $480 million, which includes
approximately $57 million of COVID-related revenues.
- GAAP diluted earnings per share are expected to be in the range
of $3.58 to $3.74 and may vary significantly due to the impact of
stock incentive awards on the GAAP effective tax rate.
- Non-GAAP diluted earnings per share are expected to be in the
range of $6.65 to $6.77.
- Interest expense is expected to be approximately $24
million.
- Pretax non-cash, share-based compensation expense is expected
to be approximately $100 million.
- Research and development expense is expected to be in the range
of $98 million to $100 million.
- Fully diluted shares for the year are expected to be in the
range of 42.5 million to 43.0 million shares.
- GAAP earnings per share assumes an estimated annual effective
tax rate of approximately 3.5% after discrete tax items, including
approximately $39 million of discrete tax benefits related to
share-based compensation.
- The non-GAAP annual effective tax rate is expected to be
24%.
- Capital expenditures are expected to be in the range of $40
million to $42 million, including approximately $6 million related
to real estate and approximately $15 million of capitalized
software development costs. Total depreciation and amortization
expense is expected to be approximately $126 million, including
approximately $88 million from amortization of acquisition
intangibles.
"Our guidance reflects the strong year-to-date performance and
improving market activity for Tyler, including NIC," said Lynn
Moore, Tyler's president and chief executive officer. "As we noted
previously, the NIC acquisition is expected to be significantly
accretive to non-GAAP earnings per share and EBITDA. As we continue
to work together with the NIC leadership team to identify and
prioritize opportunities, we are emboldened by the potential to
accelerate long-term growth in both of our businesses and expand
our platform for connected communities. With the addition of NIC's
highly complementary, industry-leading digital government solutions
and payment services to Tyler's broad portfolio of essential public
sector software solutions and extensive client base, the combined
company is well equipped to address the tremendous demand at the
federal, state, and local levels for innovative platform solutions.
Together, Tyler and NIC will connect data and processes across
disparate systems and deliver essential products and services to
all public sector stakeholders."
GAAP to non-GAAP guidance
reconciliation
Non-GAAP total revenues is derived from adding back the
estimated full year impact of write-downs of acquisition-related
deferred revenue of approximately $3 million. Non-GAAP diluted
earnings per share excludes the estimated full year impact of
non-cash share-based compensation expense and employer portion of
payroll tax related to employee stock transactions of approximately
$100 million, amortization of acquired software and intangible
assets of approximately $88 million, and acquisition-related costs
of approximately $24 million. Additionally, the non-GAAP tax rate
of 24% is estimated periodically as described below under "Non-GAAP
Financial Measures" and excludes approximately $39 million of
estimated discrete tax benefits that are included in the GAAP
estimated annual effective tax rate.
Conference Call
Tyler Technologies will hold a conference call on Monday, June
7, 2021 at 10:00 a.m. ET to discuss the company’s financial
guidance and provide an update on the NIC acquisition. Participants
can pre-register for the conference through the following link:
http://dpregister.com/sreg/10157097/e8f3ed7c31. Registered
participants will receive an email with a calendar reminder and
dial-in number and PIN that allows immediate access to the call on
Monday, June 7.
Participants who do not wish to pre-register for the call may
dial in using 844-861-5506 (U.S. callers) or 412-317-6587
(international callers) or 866-450-4696 (Canada callers) and ask
for the “Tyler Technologies” call. A replay will be available one
hour after the call ends through June 14, 2021. To access the
replay, please dial 877-344-7529 (U.S. callers), 412-317-0088
(international callers) and 855-669-9658 (Canada callers) and
reference passcode 10157097.
The live webcast and archived replay can also be accessed at
https://tylertech.irpass.com/Presentations, where presentation
charts will also be available before the conference call.
About Tyler Technologies, Inc.
Tyler Technologies (NYSE: TYL) provides integrated software and
technology services to the public sector. Tyler's end-to-end
solutions empower local, state, and federal government entities to
operate more efficiently and connect more transparently with their
constituents and with each other. By connecting data and processes
across disparate systems, Tyler's solutions are transforming how
clients gain actionable insights that solve problems in their
communities. Tyler has more than 27,000 successful installations
across more than 11,000 sites, with clients in all 50 states,
Canada, the Caribbean, Australia, and other international
locations. Tyler has been named to Government Technology's GovTech
100 list five times and has been recognized three times on Forbes'
"Most Innovative Growth Companies" list. More information about
Tyler Technologies, an S&P 500 company headquartered in Plano,
Texas, can be found at tylertech.com.
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, expectations or beliefs with respect to our financial
condition, results of operations or business. Forward-looking
statements often contain words such as “believes,” “expects,”
“anticipates,” “foresees,” “forecasts,” “estimates,” “plans,”
“intends,” “continues,” “may,” “will,” “should,” “projects,”
“might,” “could” or other similar words or phrases. Similarly,
statements that describe our business strategy, outlook,
objectives, plans, intentions or goals also are forward-looking
statements. We believe there is a reasonable basis for our
forward-looking statements, but they are inherently subject to
risks and uncertainties and actual results could differ materially
from the expectations and beliefs reflected in the forward-looking
statements. We presently consider the following to be among the
important factors that could cause actual results to differ
materially from our expectations and beliefs: (1) the effects of
the COVID-19 pandemic, including its potential effects on the
economic environment, our customers and our operations, as well as
any changes to federal, state or local government laws, regulations
or orders in connection with the pandemic; (2) changes in the
budgets or regulatory environments of our clients, primarily local
and state governments, that could negatively impact information
technology spending; (3) disruption to our business and harm to our
competitive position resulting from cyber-attacks and security
vulnerabilities; (4) our ability to protect client information from
security breaches and provide uninterrupted operations of data
centers; (5) our ability to achieve growth or operational synergies
through the integration of acquired businesses, while avoiding
unanticipated costs and disruptions to existing operations; (6)
material portions of our business require the Internet
infrastructure to be adequately maintained; (7) our ability to
achieve our financial forecasts due to various factors, including
project delays by our clients, reductions in transaction size,
fewer transactions, delays in delivery of new products or releases
or a decline in our renewal rates for service agreements; (8)
general economic, political and market conditions; (9)
technological and market risks associated with the development of
new products or services or of new versions of existing or acquired
products or services; (10) competition in the industry in which we
conduct business and the impact of competition on pricing, client
retention and pressure for new products or services; (11) the
ability to attract and retain qualified personnel and dealing with
the loss or retirement of key members of management or other key
personnel; and (12) costs of compliance and any failure to comply
with government and stock exchange regulations. These factors and
other risks that affect our business are described in our filings
with the Securities and Exchange Commission, including the detailed
“Risk Factors” contained in our most recent annual report on Form
10-K and quarterly report on Form 10-Q. We expressly disclaim any
obligation to publicly update or revise our forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20210607005226/en/
Brian K. Miller Executive Vice President & CFO Tyler
Technologies, Inc. 972-713-3720 brian.miller@tylertech.com
Tyler Technologies (NYSE:TYL)
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