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Empowering people who serve the public Tyler Technologies Reports Earnings for Third Quarter 2021 Ⓡ tyler technologies Total revenues grew 61 % ; cash flows from operations and free cash flowreached record highs PLANO , Texas - Tyler Technologies , Inc. ( NYSE : TYL ) today announced financial results for the third quarter ended September 30 , 2021 . Third Quarter 2021 Financial Highlights : • Total revenues were $ 459.9 million , up 60.9 % from $ 285.7 million for the third quarter of 2020. On an organic basis , total revenues grew 7.6 % . Non - GAAP total revenues were $ 460.6 million , up 61.1 % from $ 285.9 million for the third quarter of 2020. On an organic basis , non - GAAP total revenues grew 7.5 % . Recurring revenues from maintenance and subscriptions were $ 370.8 million , up 78.9 % from $ 207.3 million for the third quarter of 2020 , and comprised 80.6 % of third quarter 2021 revenue , up from 72.5 % for the third quarter of 2020. On an organic basis , recurring revenues were $ 226.3 million , up 9.2 % . • Subscriptions revenue and software services revenues included a total of $ 43.3 million from NIC's Tour Health and COVID - related initiatives that are expected to wind down in the first half of 2022 . • Operating income was $ 56.2 million , up 13.1 % from $ 49.7 million for the third quarter of 2020. Non - GAAP operating income was $ 116.8 million , up 42.8 % from $ 81.8 million for the third quarter of 2020 . • Net income was $ 44.2 million , or $ 1.04 per diluted share , up 12.4 % from $ 39.3 million , or $ 0.94 per diluted share , for the third quarter of 2020. Non - GAAP net income was $ 85.0 million , or $ 2.01 per diluted share , up 36.3 % from $ 62.4 million , or $ 1.50 per diluted share , for the third quarter of 2020 . • Cash flows from operations were $ 205.4 million , up 21.0 % from $ 169.8 million for the third quarter of 2020. Free cash flow was $ 192.8 million , up 16.6 % from $ 165.4 million for the third quarter of 2020 . • Adjusted EBITDA was $ 125.0 million , up 40.6 % from $ 88.9 million for the third quarter of 2020 . • Software subscription arrangements comprised approximately 74 % the total new software contract value in the third quarter , compared to approximately 47 % in the third quarter of 2020 . • Subscription bookings in the third quarter added $ 19.0 million in annual recurring revenue . • Annualized non - GAAP recurring revenues were $ 1.486 billion , up 79.2 % from $ 829.5 million for the third quarter of 2020 . • Total backlog was $ 1.77 billion , up 14.3 % from $ 1.55 billion at September 30 , 2020 . . During the third quarter , Tyler completed the acquisitions of VendEngine and Arx for a combined purchase price of approximately $ 96 million . " Our third quarter results were exceptionally strong as we continued to build on the momentum established in the first half of the year . It was our best quarter ever by most financial measures , and we achieved new quarterly highs in revenues , non - GAAP earnings per share , free cash flow , adjusted EBITDA and bookings , " said Lynn Moore , Tyler's president and chief executive officer . " With the inclusion of NIC's results for the full quarter , total revenues grew more than 60 % , led by subscription revenue growth of 183 % . In addition , for the first time , recurring revenues exceeded 80 % of total revenues for the quarter . " We're very pleased that NIC continued its strong performance in the first full quarter as a part of Tyler . As a result of the surge in the Delta variant , NIC'S COVID - related revenues , which we had expected to wind down , were significantly above plan at $ 43.3 million , which contributed to a reduction in consolidated margins . Excluding the COVID - related revenues , NIC's core revenues grew 5 % over last year . " Cash flows from operations and free cash flow both reached new quarterly highs , and our balance sheet remains very solid . During the third quarter , we paid down $ 122.5 million of bank debt and used $ 89.5 million in cash to fund the acquisitions of VendEngine and Arx . " We continue to see positive trends in public sector market activity , with indicators such as proposals , sales demonstrations and pipelines generally at or above pre - COVID levels , and we're beginning to see client purchasing that is being funded through federal stimulus programs . Bookings in the third quarter , including NIC's activity , were very robust at approximately $ 601 million , more than double the third quarter of 2020. Excluding NIC , bookings rose nearly 52 % , fueled by both new contracts and renewals with existing clients . " Our team's enthusiasm around the integration of NIC and Tyler continues to grow as we begin to execute on our strategy to leverage existing relationships in both of our client bases . We further strengthened our justice and public safety solution suites through the September acquisitions of Vend Engine and Arx , and we believe our strong competitive position validates our accelerated shift to the cloud , as well as our elevated product investments , both before and during the pandemic . We look forward to a strong finish to 2021 , and to continuing our momentum into next year , " concluded Moore .