Tyler Technologies, Inc.

Strong Q1 Performance: Tyler Technologies reported total revenues of $565.2 million for Q1 2025, reflecting a year-over-year growth of 10.3%. Subscription revenue increased by 19.7%, with SaaS revenue generating $180.1 million, achieving a growth rate of 21% over the same period last year. The company demonstrated robust performance in its transition to a cloud-native model.

SaaS and Transaction Revenue Dynamics: SaaS revenues grew for the seventeenth consecutive quarter, but total bookings were down 1.9% year-over-year, primarily attributed to a pull-forward effect from Q4 2024 when deals funded by American Rescue Plan Act (ARPA) were closed early. Transaction revenues rose by 18.5%, suggesting strong demand for transaction-based services, despite some delays in the procurement cycle due to consultant involvement in decision-making.

Positive Outlook and Revised Annual Guidance: Tyler revised its 2025 revenue guidance to between $2.31 billion and $2.35 billion, suggesting an organic growth rate of approximately 9% at the midpoint. The company expects non-GAAP diluted EPS to range from $11.05 to $11.35, indicating confidence in maintaining profitability despite macroeconomic challenges.