📋 Tender Overview
Tyler Technologies Inc. announced updated annual guidance for 2021 which includes the results of NIC Inc. from the date of its acquisition April 21 2021.As of June 7 2021 Tyler Technologies is providing the following guidance for the full year 2021GAAP total revenues are expected to be in the range of 1.507 billion to 1.537 billion.Non-GAAP total revenues are expected to be in the range of 1.510 billion to 1.540 billion.NIC is expected to contribute non-GAAP revenues from the date of acquisition of 310 million to 315 million which includes approximately 21 million of COVID-related revenues from TourHealth and pandemic unemployment services that are not expected to recur in future years.NICs full year pro-forma non-GAAP revenues are expected to be approximately 475 million to 480 million which includes approximately 57 million of COVID-related revenues.GAAP diluted earnings per share are expected to be in the range of 3.58 to 3.74 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate.Non-GAAP diluted earnings per share are expected to be in the range of 6.65 to 6.77.Interest expense is expected to be approximately 24 million.Pretax non-cash share-based compensation expense is expected to be approximately 100 million.Research and development expense is expected to be in the range of 98 million to 100 million.Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.GAAP earnings per share assumes an estimated annual effective tax rate of approximately 3.5 after discrete tax items including approximately 39 million of discrete tax benefits related to share-based compensation.The non-GAAP annual effective tax rate is expected to be 24.Capital expenditures are expected to be in the range of 40 million to 42 million including approximately 6 million related to real estate and approximately 15 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately 126 million including approximately 88 million from amortization of acquisition intangibles.Our guidance reflects the strong year-to-date performance and improving market activity for Tyler including NIC said Lynn Moore Tylers president and chief executive officer. As we noted previously the NIC acquisition is expected to be significantly accretive to non-GAAP earnings per share and EBITDA. As we continue to work together with the NIC leadership team to identify and prioritize opportunities we are emboldened by the potential to accelerate long-term growth in both of our businesses and expand our platform for connected communities. With the addition of NICs highly complementary industry-leading digital government solutions and payment services to Tylers broad portfolio of essential public sector software solutions and extensive client base the combined company is well equipped to address the tremendous demand at the federal state and local levels for innovative platform solutions. Together Tyler and NIC will connect data and processes across disparate systems and deliver essential products and services to all public sector stakeholders.GAAP to non-GAAP guidance reconciliationNon-GAAP total revenues is derived from adding back the estimated full year impact of write-downs of acquisition-related deferred revenue of approximately 3 million. Non-GAAP diluted earnings per share excludes the estimated full year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately 100 million amortization of acquired software and intangible assets of approximately 88 million and acquisition-related costs of approximately 24 million. Additionally the non-GAAP tax rate of 24 is estimated periodically as described below under Non-GAAP Financial Measures and excludes approximately 39 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.
