Tyler Technologies, Inc. TYL is scheduled to report fourth-quarter 2024 results after market close on Feb. 12.

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The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $539.7 million, suggesting a 12.2% increase from the year-ago quarter's level.

The consensus mark for earnings is pegged at $2.41 per share, indicating an increase of 27.5% from the year-ago quarter's figure. The bottom-line estimate has been revised downward by a couple of cents in the past 60 days.

TYL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4%.

Factors to Note Ahead of Tyler’s Q4 Results

Tyler Technologies’ fourth-quarter revenues are likely to have been driven by the demand for its subscription-based software-as-a-service (SaaS) products as the public sector continues to shift from on-premise and backdated systems to scalable cloud-based frameworks. Our estimate for the company’s fourth-quarter Subscription segment revenues is pegged at $347.7 million, indicating a year-over-year increase of 21.6%.

Nevertheless, public sector entities’ transition to SaaS at an accelerated pace is likely to have affected TYL’s Software Licenses and Royalties segment's revenues. Our estimate for the segment’s fourth-quarter revenues is pegged at $7.1 million, indicating a 7.1% year-over-year decline.

Our estimate for Professional Services’ fourth-quarter revenues is pinned at $64 million, indicating year-over-year growth of 4.1%. Our estimate of $110.3 million for the Maintenance segment’s fourth-quarter revenues suggests a year-over-year decrease of 6.2%. Overall, our estimate for the company’s Total Subscriptions, Professional Services and Maintenance revenues, which include all four abovementioned segments, is pegged at $522 million. The figure indicates a year-over-year increase of 12.2%.

However, macroeconomic and geopolitical risks might have negated Tyler Technologies’ business during the fourth quarter. Still-high interest rates and persistent inflationary conditions are expected to have led public sectors to postpone procurement processes and lengthen sales cycles, which might have hurt TYL’s top line in the quarter under review.

The acceleration in the shift to the cloud in the new business and the related decline in license revenues are likely to have weighed on operating margins.

Earnings Whispers for Tyler Technologies

Our proven model does not conclusively predict an earnings beat for Tyler Technologies this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Tyler Technologies carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Akamai Technologies AKAM has an Earnings ESP of +0.09% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for AKAM’s fourth-quarter earnings per share (EPS) is pegged at $1.52, down a penny over the past 60 days. AKAM's shares have risen 3.7% over the past year.

Autohome ATHM has an Earnings ESP of +11.32% and a Zacks Rank #3 at present.

It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Autohome’s fourth-quarter earnings is pegged at 53 cents per share, which remained unchanged over the past 60 days, indicating a decline of 8.6% from the year-ago quarter’s reported figure. ATHM shares have plunged 22.2% over the past year.

Sabre SABR has an Earnings ESP of +25.93% and a Zacks Rank #3 at present.

It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Sabre’s fourth-quarter bottom line is pegged at a loss of 7 cents per share, which remained unchanged over the past 60 days. The consensus mark indicates an improvement from the year-ago quarter's loss of 12 cents per share. SABR's shares have tanked 20% over the past year.

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