Quarterly Statement of Operations 9.30.21

Tyler Technologies, Inc.
Quarterly Statements of Operations
As of September 30, 2021
(in thousands, except per share data)
Amounts reported under ASC 605
Amounts reported under ASC 606
Revenues:		FY2000		FY2001		FY2002		FY2003		FY2004		FY2005		FY2006		FY2007		FY2008		FY2009		FY2010		FY2011
Software licenses and royalties	$	19,312	$	19,491	$	24,278	$	25,914	$	30,258	$	29,418	$	37,247	$	35,063	$	41,490	$	42,131	$	34,913	$	32,594
Software services		19,425		21,538		25,703		37,128		49,786		46,233		50,861		60,283		74,997		80,405		68,340		69,617
Subscriptions												5,852		7,298		10,406		14,374		17,181		23,298		31,160
Maintenance		29,108		36,587		40,667		47,157		57,760		64,728		73,413		85,411		107,458		124,512		135,655		146,498
Appraisal services		20,909		34,727		37,319		30,011		27,394		18,374		19,755		21,318		19,098		18,740		20,554		23,228
Hardware and other		5,179		6,473		5,930		5,244		7,072		5,852		6,729		7,315		7,684		7,317		5,868		6,294
Total revenues		93,933		118,816		133,897		145,454		172,270		170,457		195,303		219,796		265,101		290,286		288,628		309,391
Cost of revenues:
Software licenses		2,605		4,130		5,482		6,610		8,819		9,087		9,968		7,953		9,224		5,440		3,456		3,034
Software services, maintenance and subscriptions		38,355		46,024		50,175		56,892		72,609		80,614		90,601		104,993		126,247		137,199		138,085		143,776
Acquired software		-		2,432		2,432		2,006		1,447		794		1,360		2,279		1,799		1,411		1,592		1,125
Appraisal services		14,681		23,894		25,512		21,275		20,132		14,188		13,563		14,467		12,251		11,518		12,910		14,550
Hardware and other		4,017		4,749		4,746		3,844		5,425		4,287		5,007		5,679		5,793		5,955		4,268		4,994
Total cost of revenues		59,658		81,229		88,347		90,627		108,432		108,970		120,499		135,371		155,314		161,523		160,311		167,479
Gross profit		34,275		37,587		45,550		54,827		63,838		61,487		74,804		84,425		109,787		128,763		128,317		141,912
Selling, general and administrative expenses		31,304		30,418		33,302		37,247		42,932		43,821		48,390		51,724		62,923		70,115		69,480		75,650
Research and development expense		1,501		412		612		1,143		2,519		2,421		3,321		4,443		7,286		11,159		13,971		16,414
Amortization of customer and trade name intangibles		6,903		4,466		897		925		1,267		1,266		1,318		1,478		2,438		2,705		3,225		3,331
Operating income (loss)		(5,433)		2,291		10,739		15,512		17,120		12,719		21,775		26,780		28,095		44,784		41,641		46,517
Other income (expense), net		(4,884)		(479)		(698)		339		317		906		1,080		1,800		1,181		(146)		(1,742)		(2,404)
Income (loss) from continuing operations
before income taxes		(10,317)		1,812		10,041		39,084		17,437		13,625		22,855		28,580		29,276		44,638		39,899		44,113
Income tax provision (benefit)		(2,810)		1,540		3,869		13,106		7,309		5,432		8,493		11,079		14,414		17,628		14,845		16,556
Income (loss) from continuing operations		(7,507)		272		6,172		25,978		10,128		8,193		14,362		17,501		14,862		27,010		25,054		27,557
Net income (loss)
$	(24,597)	$	269	$	7,989	$	26,402	$	10,128	$	8,193	$	14,362	$	17,501	$	14,862	$	27,010	$	25,054	$	27,557
Basic earnings (loss) per common share:
Net income (loss) per common share	$	(0.54)	$	0.01	$	0.17	$	0.62	$	0.25	$	0.21	$	0.37	$	0.45	$	0.39	$	0.77	$	0.74	$	0.88
Diluted earnings (loss) per common share:
Net income (loss) per common share	$	(0.54)	$	0.01	$	0.16	$	0.59	$	0.23	$	0.19	$	0.34	$	0.42	$	0.38	$	0.74	$	0.71	$	0.83
Weighted average common shares outstanding:
Basic		45,380		47,181		47,136		42,547		41,288		39,439		38,817		38,735		37,714		35,240		34,075		31,267
Diluted		45,380		47,984		49,493		45,035		44,566		42,075		41,868		41,352		39,184		36,624		35,528		33,154
Gross Margin		36.5%		31.6%		34.0%		37.7%		37.1%		36.1%		38.3%		38.4%		41.4%		44.4%		44.5%		45.9%
Operating Margin		-5.8%		1.9%		8.0%		10.7%		9.9%		7.5%		11.1%		12.2%		10.6%		15.4%		14.4%		15.0%

Tyler Technologies, Inc.
Quarterly Statements of Operations
As of September 30, 2021
(in thousands, except per share data)
Amounts reported under ASC 605
Amounts reported under ASC 606													AS REPORTED UNDER ASC 605
Revenues:		1Q12			2Q12		3Q12		4Q12		FY2012		1Q13			2Q13		3Q13		4Q13		FY2013		1Q14		2Q14		3Q14		4Q14		FY2014
Software licenses and royalties	$	7,563	$	8,422	$	8,973	$	8,970	$	33,928	$	8,830	$	10,090	$	10,495		$	11,426	$	40,841	$	11,232	$	12,083	$	13,226	$	12,524	$	49,065
Software services		18,530			21,737		22,099		21,042		83,408		20,461			24,085		24,860			23,861		93,267		24,307		30,128		31,159		28,227		113,821
Subscriptions		9,968			10,553		11,335		12,762		44,618		13,473			13,863		15,214			19,314		61,864		20,507		20,934		22,694		23,713		87,848
Maintenance		39,850			42,060		44,452		45,489		171,851		46,050			46,639		49,291			49,740		191,720		50,240		51,951		54,713		55,792		212,696
Appraisal services		5,682			5,771		5,594		5,496		22,543		5,591			5,056		5,207			4,971		20,825		4,851		5,444		5,802		5,705		21,802
Hardware and other		1,130			2,825		1,392		1,609		6,956		1,394			3,355		1,954			1,423		8,126		1,489		3,831		1,070		1,479		7,869
Total revenues		82,723			91,368		93,845		95,368		363,304		95,799			103,088		107,021			110,735		416,643		112,626		124,371		128,664		127,440		493,101
Cost of revenues:
Software licenses		566			484		458		475		1,983		426			692		583			676		2,377		531		343		565		461		1,900
Software services, maintenance and subscriptions		39,813			43,118		43,485		45,168		171,584		46,382			48,833		51,786			52,616		199,617		54,999		58,274		61,428		61,662		236,363
Acquired software		410			482		478		518		1,888		549			523		513			493		2,078		481		444		448		485		1,858
Appraisal services		3,796			3,876		3,598		3,619		14,889		3,799			3,418		3,360			3,232		13,809		3,311		3,665		3,764		3,544		14,284
Hardware and other		719			2,709		882		948		5,258		798			2,580		1,230			951		5,559		774		3,087		667		797		5,325
Total cost of revenues		45,304			50,669		48,901		50,728		195,602		51,954			56,046		57,472			57,968		223,440		60,096		65,813		66,872		66,949		259,730
Gross profit		37,419			40,699		44,944		44,640		167,702		43,845			47,042		49,549			52,767		193,203		52,530		58,558		61,792		60,491		233,371
Selling, general and administrative expenses		21,335			21,699		20,909		22,763		86,706		22,646			24,971		24,581			26,091		98,289		25,367		27,419		27,344		28,130		108,260
Research and development expense		5,094			5,408		4,273		5,365		20,140		5,598			5,594		5,982			6,095		23,269		6,172		6,389		6,567		6,615		25,743
Amortization of customer and trade name intangibles		946			1,137		1,103		1,093		4,279		1,131			1,128		1,129			1,129		4,517		1,129		1,128		1,136		1,153		4,546
Operating income (loss)		10,044			12,455		18,659		15,419		56,577		14,470			15,349		17,857			19,452		67,128		19,862		23,622		26,745		24,593		94,822
Other income (expense), net		(703)			(773)		(849)		(384)		(2,709)		(338)			(296)		(285)			(390)		(1,309)		(259)		(216)		(47)		167		(355)
Income (loss) from continuing operations
before income taxes		9,341			11,682		17,810		15,035		53,868		14,132			15,053		17,572			19,062		65,819		19,603		23,406		26,698		24,760		94,467
Income tax provision (benefit)		3,660			4,577		6,978		5,659		20,874		5,639			6,006		6,523			8,550		26,718		7,720		8,666		9,698		9,443		35,527
Income (loss) from continuing operations		5,681			7,105		10,832		9,376		32,994		8,493			9,047		11,049			10,512		39,101		11,883		14,740		17,000		15,317		58,940
Net income (loss)
$	5,681	$	7,105	$	10,832	$	9,376	$	32,994	$	8,493	$	9,047	$	11,049		$	10,512	$	39,101	$	11,883	$	14,740	$	17,000	$	15,317	$	58,940
Basic earnings (loss) per common share:
Net income (loss) per common share	$	0.19	$	0.24	$	0.36	$	0.30	$	1.09	$	0.27	$	0.29	$	0.34		$	0.32	$	1.23	$	0.36	$	0.45	$	0.52	$	0.46	$	1.79
Diluted earnings (loss) per common share:
Net income (loss) per common share	$	0.17	$	0.22	$	0.33	$	0.28	$	1.00	$	0.25	$	0.26	$	0.32		$	0.30	$	1.13	$	0.33	$	0.42	$	0.48	$	0.43	$	1.66
Weighted average common shares outstanding:
Basic		30,015			30,171		30,387		30,779		30,327		31,403			31,617		32,037			32,498		31,891		32,916		32,918		32,935		33,275		33,011
Diluted		32,530			32,769		32,986		33,421		32,916		33,948			34,290		34,764			35,348		34,590		35,500		35,161		35,284		35,661		35,401
Gross Margin		45.2%							46.8%		46.2%		45.8%								47.7%		46.4%		46.6%		47.1%				47.5%		47.3%
			44.5%		47.9%						45.6%		46.3%							48.0%
Operating Margin		12.1%			13.6%		19.9%		16.2%		15.6%		15.1%			14.9%		16.7%			17.6%		16.1%		17.6%		19.0%		20.8%		19.3%		19.2%

Tyler Technologies, Inc.
Quarterly Statements of Operations
As of September 30, 2021
(in thousands, except per share data)
Amounts reported under ASC 605
Amounts reported under ASC 606
Revenues:		1Q15		2Q15		3Q15		4Q15		FY2015		1Q16		2Q16		3Q16		4Q16		FY2016
Software licenses and royalties	$	14,300	$	14,586	$	15,690	$	14,432	$	59,008	$	16,850	$	17,551	$	19,930	$	19,975	$	74,306
Software services		30,804		34,563		36,398		38,087		139,852		42,430		46,040		44,738		41,595		174,804
Subscriptions		25,288		26,949		29,036		30,660		111,933		34,089		33,968		36,869		37,778		142,704
Maintenance		57,348		59,463		61,018		67,708		245,537		76,032		78,743		83,000		85,194		322,969
Appraisal services		6,089		6,691		6,557		5,728		25,065		6,558		6,984		6,541		6,204		26,287
Hardware and other		1,137		4,043		2,146		2,301		9,627		3,334		5,686		3,419		2,535		14,973
Total revenues		134,966		146,295		150,845		158,916		591,022		179,293		188,972		194,497		193,281		756,043
Cost of revenues:
Software licenses		553		483		147		449		1,632		638		666		623		1,037		2,964
Software services, maintenance and subscriptions		65,377		69,678		72,764		77,521		285,340		85,270		86,717		88,623		88,329		348,939
Acquired software		456		456		552		2,976		4,440		5,459		5,680		5,598		5,498		22,235
Appraisal services		4,135		4,278		3,984		3,525		15,922		3,962		4,458		4,053		3,938		16,411
Hardware and other		566		3,147		1,565		1,223		6,501		1,846		4,515		2,120		1,662		10,143
Total cost of revenues		71,087		78,042		79,012		85,694		313,835		97,175		102,036		101,017		100,464		400,692
Gross profit		63,879		68,253		71,833		73,222		277,187		82,118		86,936		93,480		92,817		355,351
Selling, general and administrative expenses		28,545		30,396		31,869		42,507		133,317		40,759		42,232		42,007		42,162		167,161
Research and development expense		7,004		7,110		7,193		8,615		29,922		9,956		10,336		11,070		11,793		43,154
Amortization of customer and trade name intangibles		1,152		1,151		1,282		2,320		5,905		3,362		3,453		3,458		3,458		13,731
Operating income (loss)		27,178		29,596		31,489		19,780		108,043		28,041		30,915		36,945		35,404		131,305
Other income (expense), net		181		185		255		(240)		381		(467)		(720)		(526)		(285)		(1,998)
Income (loss) from continuing operations
before income taxes		27,359		29,781		31,744		19,540		108,424		27,574		30,195		36,419		35,119		129,307
Income tax provision (benefit)		10,086		10,945		11,602		10,922		43,555		9,350		5,188		989		3,923		19,450
Income (loss) from continuing operations		17,273		18,836		20,142		8,618		64,869		18,224		25,007		35,430		31,196		109,857
Net income (loss)
$	17,273	$	18,836	$	20,142	$	8,618	$	64,869	$	18,224	$	25,007	$	35,430	$	31,196	$	109,857
Basic earnings (loss) per common share:
Net income (loss) per common share	$	0.51	$	0.56	$	0.59	$	0.24	$	1.90	$	0.50	$	0.69	$	0.97	$	0.85	$	3.01
Diluted earnings (loss) per common share:
Net income (loss) per common share	$	0.48	$	0.52	$	0.55	$	0.23	$	1.77	$	0.47	$	0.65	$	0.91	$	0.80	$	2.82
Weighted average common shares outstanding:
Basic		33,562		33,751		33,900		35,334		34,137		36,549		36,160		36,433		36,653		36,448
Diluted		35,895		36,097		36,349		37,864		36,552		39,071		38,738		39,062		38,975		38,961
Gross Margin		47.3%		46.7%				46.1%		46.9%		45.8%		46.0%				48.0%		47.0%
			47.6%						48.1%
Operating Margin		20.1%		20.2%		20.9%		12.4%		18.3%		15.6%		16.4%		19.0%		18.3%		17.4%

Tyler Technologies, Inc.
Quarterly Statements of Operations
As of September 30, 2021
(in thousands, except per share data)
Amounts reported under ASC 605
Amounts reported under ASC 606						RESTATED FOR ASC 606
Revenues:		FY2016		1Q17			2Q17		3Q17		4Q17		FY2017		1Q18		2Q18			3Q18		4Q18		FY2018
Software licenses and royalties	$	83,733	$	21,758	$	19,306	$	22,762	$	22,416	$	86,242	$	22,776	$	22,400	$	22,444	$	25,821	$	93,441
Software services		171,648		42,496			45,860		46,045		46,059		180,460		45,939		50,674			48,199		46,457		191,269
Subscriptions		142,657		39,862			40,517		44,352		47,445		172,176		49,028		53,009			58,699		59,811		220,547
Maintenance		320,998		86,307			88,811		91,847		92,354		359,319		93,897		96,076			96,215		98,333		384,521
Appraisal services		26,287		6,612			6,366		6,290		5,755		25,023		5,394		5,532			5,544		5,376		21,846
Hardware and other		14,557		2,694			7,903		3,410		3,672		17,679		4,140		8,369			4,966		6,183		23,658
Total revenues		759,880		199,729			208,763		214,706		217,701		840,899		221,174		236,060			236,067		241,981		935,282
Cost of revenues:
Software licenses		2,964		731			647		826		1,117		3,321		778		1,204			957		863		3,802
Software services, maintenance and subscriptions		348,939		93,540			96,172		98,036		99,886		387,634		106,085		109,487			111,508		111,843		438,923
Acquired software		22,235		5,410			5,360		5,473		5,443		21,686		5,382		5,724			5,897		5,969		22,972
Appraisal services		16,411		4,197			4,282		4,089		3,718		16,286		3,781		3,568			3,505		3,445		14,299
Hardware and other		10,143		1,316			6,799		2,293		2,187		12,595		2,343		6,801			2,574		3,990		15,708
Total cost of revenues		400,692		105,194			113,260		110,717		112,351		441,522		118,369		126,784			124,441		126,110		495,704
Gross profit		359,188		94,535			95,503		103,989		105,350		399,377		102,805		109,276			111,626		115,871		439,578
Selling, general and administrative expenses		165,176		42,780			43,000		44,513		45,621		175,914		47,604		52,262			52,605		55,134		207,605
Research and development expense		43,154		11,599			11,874		11,834		12,017		47,324		13,048		15,831			17,050		17,335		63,264
Amortization of customer and trade name intangibles		13,202		3,325			3,331		3,360		3,365		13,381		3,315		4,041			4,386		4,475		16,217
Operating income (loss)		137,656		36,831			37,298		44,282		44,347		162,758		38,838		37,142			37,585		38,927		152,492
Other income (expense), net		(1,998)		(190)			(101)		75		914		698		599		558			1,041		1,180		3,378
Income (loss) from continuing operations
before income taxes		135,658		36,641			37,197		44,357		45,261		163,456		39,437		37,700			38,626		40,107		155,870
Income tax provision (benefit)		21,957		3,872			5,427		5,521		(20,935)		(6,115)		1,612		(1,461)			(298)		8,555		8,408
Income (loss) from continuing operations		113,701		32,769			31,770		38,836		66,196		169,571		37,825		39,161			38,924		31,552		147,462
Net income (loss)
$	113,701	$	32,769	$	31,770	$	38,836	$	66,196	$	169,571	$	37,825	$	39,161	$	38,924	$	31,552	$	147,462
Basic earnings (loss) per common share:
Net income (loss) per common share	$	3.12	$	0.89	$	0.86	$	1.04	$	1.76	$	4.55	$	1.00	$	1.02	$	1.00	$	0.82	$	3.84
Diluted earnings (loss) per common share:
Net income (loss) per common share	$	2.92	$	0.84	$	0.81	$	0.99	$	1.68	$	4.32	$	0.95	$	0.97	$	0.96	$	0.79	$	3.68
Weighted average common shares outstanding:
Basic		36,448		36,845			37,154		37,391		37,694		37,273		38,002		38,390			38,761		38,614		38,445
Diluted		38,961		38,931			39,201		39,342		39,499		39,246		39,836		40,224			40,528		39,891		40,123
Gross Margin		47.3%		47.3%									47.5%		46.5%		46.3%							47.0%
				45.7%		48.4%		48.4%						47.3%		47.9%
Operating Margin		18.1%		18.4%			17.9%		20.6%		20.4%		19.4%		17.6%		15.7%			15.9%		16.1%		16.3%

Tyler Technologies, Inc.
Quarterly Statements of Operations
As of September 30, 2021
(in thousands, except per share data)
Amounts reported under ASC 605
Amounts reported under ASC 606
Revenues:		1Q19		2Q19		3Q19		4Q19		FY2019		1Q20		2Q20			3Q20		4Q20		FY2020		1Q21		2Q21		3Q21		FY2021
Software licenses and royalties	$	21,793	$	20,675	$	25,379	$	32,358	$	100,205	$	18,737	$	17,025	$	19,937	$	17,465	$	73,164	$	14,933	$	17,604	$	22,673	$	55,210
Software services		48,443		57,401		54,997		52,220		213,061		52,133		43,654			47,946		42,676		186,409		47,640		53,337		54,624		155,601
Subscriptions		67,275		73,475		75,272		80,330		296,352		81,723		85,638			89,290		93,997		350,648		102,479		199,558		252,942		554,979
Maintenance		100,152		106,689		109,833		113,644		430,318		114,365		116,760			117,979		118,409		467,513		119,112		119,621		117,833		356,566
Appraisal services		5,214		6,233		6,008		6,024		23,479		5,763		4,696			5,394		5,274		21,127		6,465		6,265		7,146		19,876
Hardware and other		4,189		10,651		3,911		4,261		23,012		3,820		3,318			5,200		5,464		17,802		4,173		7,690		4,655		16,518
Total revenues		247,066		275,124		275,400		288,837		1,086,427		276,541		271,091			285,746		283,285		1,116,663		294,802		404,075		459,873		1,158,750
Cost of revenues:
Software licenses		818		891		971		1,258		3,938		740		1,130			1,177		292		3,339		1,236		1,368		1,547		4,151
Software services, maintenance and subscriptions		117,160		125,759		128,545		130,674		502,138		131,779		124,287			125,881		128,557		510,504		134,320		199,771		241,944		576,035
Acquired software		6,682		7,988		7,975		7,997		30,642		8,027		8,006			7,965		7,964		31,962		7,964		11,823		12,896		32,683
Appraisal services		3,452		3,758		4,096		4,031		15,337		4,385		3,976			3,434		4,150		15,945		4,617		4,429		4,506		13,552
Hardware and other		2,906		8,868		3,096		2,602		17,472		2,479		2,489			3,780		3,653		12,401		2,458		4,623		2,764		9,845
Total cost of revenues		131,018		147,264		144,683		146,562		569,527		147,410		139,888			142,237		144,616		574,151		150,595		222,014		263,657		636,266
Gross profit		116,048		127,860		130,717		142,275		516,900		129,131		131,203			143,509		138,669		542,512		144,207		182,061		196,216		522,484
Selling, general and administrative expenses		57,766		65,827		63,888		70,265		257,746		67,485		62,521			66,819		62,736		259,561		78,774		108,922		101,847		289,543
Research and development expense		18,941		20,101		21,130		21,170		81,342		22,361		21,949			21,642		22,411		88,363		21,813		23,428		24,002		69,243
Amortization of customer and trade name intangibles		4,850		5,266		5,646		5,683		21,445		5,392		5,392			5,392		5,486		21,662		5,412		11,420		14,183		31,015
Operating income (loss)		34,491		36,666		40,053		45,157		156,367		33,893		41,341			49,656		48,036		172,926		38,208		38,291		56,184		132,683
Other income (expense), net		586		(247)		499		2,633		3,471		990		470			280		376		2,116		88		(12,199)		(4,951)		(17,062)
Income (loss) from continuing operations
before income taxes		35,077		36,419		40,552		47,790		159,838		34,883		41,811			49,936		48,412		175,042		38,296		26,092		51,233		115,621
Income tax provision (benefit)		7,729		4,420		162		1,000		13,311		(12,667)		(12,081)			10,652		(5,682)		(19,778)		1,320		562		7,063		8,945
Income (loss) from continuing operations		27,348		31,999		40,390		46,790		146,527		47,550		53,892			39,284		54,094		194,820		36,976		25,530		44,170		106,676
Net income (loss)
$	27,348	$	31,999	$	40,390	$	46,790	$	146,527	$	47,550	$	53,892	$	39,284	$	54,094	$	194,820	$	36,976	$	25,530	$	44,170	$	106,676
Basic earnings (loss) per common share:
Net income (loss) per common share	$	0.71	$	0.83	$	1.04	$	1.20	$	3.79	$	1.20	$	1.35	$	0.98	$	1.34	$	4.87	$	0.91	$	0.63	$	1.08	$	2.61
Diluted earnings (loss) per common share:
Net income (loss) per common share	$	0.69	$	0.80	$	1.00	$	1.15	$	3.65	$	1.16	$	1.30	$	0.94	$	1.29	$	4.69	$	0.88	$	0.61	$	1.04	$	2.53
Weighted average common shares outstanding:
Basic		38,308		38,402		38,765		39,076		38,640		39,500		39,963			40,261		40,404		40,035		40,611		40,765		40,888		40,805
Diluted		39,585		39,813		40,280		40,736		40,105		41,143		41,416			41,606		41,925		41,526		42,056		42,094		42,286		42,196
Gross Margin		47.0%		46.5%		47.5%		49.3%		47.6%		46.7%		48.4%			50.2%		49.0%		48.6%		48.9%		45.1%		42.7%		45.1%
Operating Margin		14.0%		13.3%		14.5%		15.6%		14.4%		12.3%		15.2%			17.4%		17.0%		15.5%		13.0%		9.5%		12.2%		11.5%