The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
ServiceNow NOW and Tyler Technologies TYL are well-known providers of cloud-based enterprise software stocks. Both are helping enterprises in digital transformation through their respective cloud-supported solutions.
Tyler Technologies (TYL) reported earnings 30 days ago. What's next for the stock?
I am downgrading Tyler Technologies to a hold due to concerns over 1Q25 bookings, declining deal sizes, and shorter contract durations. Despite solid 1Q25 revenue growth and strong SaaS performance, the significant drop in new SaaS bookings raises red flags about mid-term growth. Management's assurance of strong RFP and demo activity provides some comfort, but the uncertainty around bookings impacts my confidence.
Shares of Tyler Technologies slid after reporting weak Q1 earnings, which to me is the beginning of a deeper slide. Tyler Technologies' bookings momentum and revenue trends are decelerating, with Q1 showcasing a drying up of new software deals and ARR. Government efficiency measures are reducing demand for new software like Tyler's, impacting its growth prospects and bookings.
Tyler Technologies Inc (NYSE:TYL ) Q1 2025 Results Conference Call April 24, 2025 10:00 AM ET Company Participants Hala Elsherbini - Senior Director of IR Lynn Moore - CEO, President & Director Brian Miller - EVP & CFO Conference Call Participants Kirk Materne - Evercore Ken Wong - Oppenheimer Terry Tillman - Truist Securities Michael Turrin - Wells Fargo Securities Alexei Gogolev - JPMorgan Joshua Reilly - Needham Saket Kalia - Barclays Charles Strauzer - CJS Securities Rob Oliver - Baird Jonathan Ho - William Blair Gabriela Borges - Goldman Sachs Alex Zukin - Wolfe Research Keith Housum - Northcoast Research Operator Hello, and welcome to today's Tyler Technologies First Quarter 2025 Conference Call. Your host for today's call is Lynn Moore, President and CEO of Tyler Technologies.
TYL's Q1 results reflect the benefits of a rise in subscription revenues, primarily driven by new software contracts.
While the top- and bottom-line numbers for Tyler Technologies (TYL) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Tyler Technologies (TYL) came out with quarterly earnings of $2.78 per share, beating the Zacks Consensus Estimate of $2.56 per share. This compares to earnings of $2.20 per share a year ago.
Tyler Technologies raised its annual forecast and beat Wall Street expectations for first-quarter revenue on Wednesday, driven by strong demand for its IT services.
Evaluate the expected performance of Tyler Technologies (TYL) for the quarter ended March 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
TYL's Q1 results are likely to reflect benefits from robust demand for SaaS solutions as the public sector shifts from on-premise to cloud-based systems.