Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Tyler Technologies (TYL 0.61%) jumped 11% today after the company reported earnings.
So what: In the third quarter, revenue grew 21.6% to $93.8 million and net income grew 44% to $10.8 million, or $0.33 per share. Revenue beat expectations and earnings per share were $0.05 above the bar Wall Street had set.
Now what: Some of the revenue growth was due to acquisitions, but organic growth of 13% was still impressive. However, the stock still trades at 38 times next year's earnings, which is a steep price to pay for this level of organic growth. I'm going to sit out the move today and look for better value elsewhere.
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