Tyler Technologies, Inc. reported significant financial growth in its latest 10-Q filing for the three and nine months ended September 30, 2024. Total revenues for the third quarter reached $543.3 million, a 10% increase from $494.7 million in the same period of 2023. For the nine months, revenues totaled $1.6 billion, up from $1.5 billion year-over-year. The growth was primarily driven by an 18% increase in subscription revenue, which amounted to $347.2 million for Q3 2024, compared to $295.2 million in Q3 2023. Subscription revenue for the nine months also grew by 14%, reaching $994.1 million.
Net income for the third quarter was $75.9 million, a substantial increase from $47.0 million in Q3 2023, while net income for the nine months rose to $197.8 million from $127.0 million in the prior year. Earnings per share (EPS) for Q3 2024 were $1.78, compared to $1.12 in Q3 2023, reflecting strong profitability improvements.
The company’s operating income for Q3 2024 was $82.8 million, up from $63.9 million in the same quarter of 2023, with operating income as a percentage of total revenues increasing from 12.9% to 15.5%. The overall gross margin for the third quarter decreased slightly by 1.8% compared to the prior year, attributed to rising costs in subscriptions, maintenance, and professional services, which increased by 15% to $283.8 million.
Tyler Technologies maintained a strong cash position, with cash and cash equivalents rising to $538.3 million as of September 30, 2024, compared to $165.5 million at the end of 2023. The company also reported total current assets of $1.2 billion, up from $860.6 million at year-end 2023.
Strategically, Tyler Technologies did not complete any acquisitions during the nine months ended September 30, 2024, but resolved outstanding matters related to previous acquisitions, including a $60 million indemnification related to Resource Exploration, Inc. and a $9.5 million settlement concerning Rapid Financial Solutions, LLC. The company’s backlog as of September 30, 2024, was $2.13 billion, with approximately 45% expected to be recognized as revenue over the next 12 months.
The company’s employee count increased to 7,386, reflecting growth from recent acquisitions. Additionally, Tyler Technologies entered into a new $700 million credit agreement in September 2024, replacing a previous $500 million facility, enhancing its financial flexibility.
About TYLER TECHNOLOGIES INC
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