It has been about a month since the last earnings report for Tyler Technologies (TYL). Shares have added about 1.9% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Tyler Technologies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Tyler Q3 Earnings & Revenues Surpass Estimates, Up Y/YTyler Technologies reported third-quarter 2020 non-GAAP earnings of $1.50 per share, which surpassed the Zacks Consensus Estimate of $1.34. Moreover, the bottom line increased 11.1% from the year-ago quarter’s reported tally.Revenues on a non-GAAP basis increased 3.2% year on year to $285.9 million, beating the consensus mark of $284.9 million. Tyler recorded 3.3% year-over-year growth in organic revenues.Recurring revenues increased 12% year over year to $207.3 million and accounted for 72.5% of total revenues.Q3 Results in DetailSegment wise, Maintenance revenues (41.3% of total revenues) came in at $118 million, up 7.4% year over year.Subscription revenues (31.2% of total revenues) climbed 18.6% year over year to $89.3 million.Software licenses and royalties (7% of total revenues) of $19.9 million slid 21.4% on a year-over-year basis.Software Services revenues (16.8% of total revenues) of $43.7 million dropped 12.8% from the year-ago quarter.Appraisal services revenues (1.9% of total revenues) slipped 10.2% to $5.4 million.Hardware and other revenues (1.8% of total revenues) jumped 33% to $5.2 million.Backlog at the end of the quarter was $1.55 billion, up 9.2% year over year. Of this, software-related backlog (excluding appraisal services) increased 9.5% to $1.38 billion.Bookings grew 12.9% year on year to $292 million. Subscription bookings added $9.9 million in annual recurring revenues.Operating DetailsTyler’s non-GAAP gross profit increased to $156.2 million from the year-earlier quarter’s $144.1 million. Non-GAAP gross margin also expanded 260 basis points (bps) to 54.6%.Adjusted EBITDA was $88.9 million, up 15.4% year over year.Selling, general and administrative (SG&A) expenses, as percentage of revenues, expanded 20 bps year over year to 23.4%. However, research and development (R&D) expenses, as percentage of revenues, contracted 10 bps to 7.6%.The company’s non-GAAP operating income increased 15.2% year over year to $81.8 million. Its operating margin advanced 300 bps to 28.6%Balance Sheet and Cash FlowAs of Sep 30, 2020, cash and cash equivalents were $518.7 million compared with $351.3 million as of Jun 30, 2020.The company generated an operating cash flow of $169.8 million during the third quarter and $266.3 million in the first nine months of 2020.Updated Full-Year OutlookTyler lowered its full-year revenue guidance to $1.118-$1.130 billion from the $1.125-$1.145 billion projected earlier. However, it raised the non-GAAP earnings outlook to $5.48-$5.58 per share from the $5.30-$5.50 per share estimated previously.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended downward during the past month.VGM ScoresAt this time, Tyler Technologies has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Tyler Technologies has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tyler Technologies, Inc. (TYL): Free Stock Analysis Report To read this article on Zacks.com click here.