Tyler Technologies finished 2023 with strong financial performance
After missing the mark for third-quarter revenue estimates, Tyler Technologies wrapped up its fourth quarter of 2023 with “robust” financial performance thanks to a shift to cloud services and a partnership with Amazon Web Services, Investing.com reported last week.
The major IT service provider to the public sector posted $480.9 million in revenue, a 6.3% increase from the previous year. This was after Tyler Technologies reported $497.7 million in revenue for the third quarter of 2023, falling below analysts’ estimates.
“Our fourth quarter results reflected a strong finish to a pivotal year in our cloud transition and a return to year-over-year operating margin expansion,” Lynn Moore, the company’s president and chief executive, said in a press release. “We achieved our key objectives for the year and both earnings and cash flow surpassed our expectations.”
The company reported $403.6 million in recurring revenues, which is an increase of nearly 8% when compared to last year. Tyler’s recurring revenues accounted for nearly 84% of the company’s fourth quarter revenue. Tyler’s subscription revenues came in at $286.1 million for the quarter, which is an increase of 11.4% compared to last year.
The California Department of Parks and Recreation signed an eight-year, $175 million contract with Tyler Technologies in the fourth quarter. The company also expanded its agreement with Amazon Web Services in an effort to increase the adoption of Tyler’s cloud services in the public sector.
Tyler’s annual revenue for 2023 fell in line with the company’s expectations and the company reportedly ended the year with $1.952 billion, an increase of 5.5% when compared to 2022 as a whole.
“We enter 2024 with tremendous optimism and confidence in the year ahead and beyond as we execute our strategy supporting our Tyler 2030 vision,” Moore said. “We are on track with key initiatives around our cloud transition, including the migration of on-premises clients to the cloud and the planned exit from our proprietary data centers, and we expect to return to a trajectory of operating margin expansion in 2024.”
