Brian K. Miller
Executive Vice President, Chief Financial Officer & Treasurer at Tyler Technologies
Thanks, Lynn. Yesterday, Tyler Technologies reported its results for the second quarter ended June 30, 2022. In our earnings release, we have included non-GAAP measures that we believe facilitate understanding of our results and comparisons with peers in the software industry. A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. Weve also posted on the Investor Relations section of our website under the Financial Reports tab, schedules with supplemental information provided on this call, including information about quarterly bookings, backlog and recurring revenues. Both GAAP and non-GAAP revenues for the quarter were $468.7 million, up 16%, including NIC and our other acquisitions from the last 12 months. Organic revenue growth, excluding COVID-related revenues, was 6.2% on a GAAP basis and 5.8% on a non-GAAP basis. NICs COVID-related revenues for the quarter exceeded our expectations at $15.2 million. Revenues from the TourHealth initiatives concluded in the second quarter and the Virginia rent relief program is expected to be completed in the third quarter with about $8 million of revenues anticipated in the quarter.
As expected, license revenues declined 14.7% as our new software contract mix continued to shift to SaaS. Software revenues rose 18.3% -- service revenues rose 18.3%, but on an organic basis were essentially flat with last year. Services revenues were impacted by delays in hiring new professional services staff in the current labor market. While we hired a large class of implementers during the quarter, there is an onboarding period of several months before they will be fully billable. We intend to continue to grow our implementation team during the second half of the year to support delivery of our growing backlog and pipeline, but well likely continue to see some pressure on services revenues in the short term as those teams ramp up. Subscription revenues rose 28.2% with strong organic growth of 14.1%. We added 167 new subscription-based arrangements and converted a new high of 96 existing on-premises clients, representing approximately $115 million in total contract value. In Q2 of last year, we added 170 new subscription-based arrangements and had 62 on-premises conversions, representing approximately $73 million in total contract value. Our software subscription bookings in the second quarter added $27.6 million in new ARR.
Subscription contract value comprised approximately 74% of the total new software contract value signed this quarter compared to 65% in Q2 of last year. The value weighted average term of new SaaS contracts this quarter was 3.7 years compared to 4.1 years last year. Transaction-based revenues, which include NIC portal, payment processing and e-filing revenues and are included in subscriptions were $154.4 million, up 29.1%. Excluding NIC, Tylers transaction-based revenues grew 17.5%. E-filing revenues reached a new high of $18.5 million, up 14%. For the second quarter, our non-GAAP ARR was approximately $1.49 billion, up 16.3%. Non-GAAP ARR for SaaS software arrangements was approximately $405.6 million, up 24.9%. Transaction-based ARR was approximately $617.7 million, up 29.1% and non-GAAP maintenance ARR was down 2.3% at approximately $467.3 million due to the continued migration of on-premises clients to the cloud. Our backlog at the end of the quarter was a new high of $1.85 billion, up 13.9%. Bookings in the quarter were very strong at approximately $562 million, up 21%, including transaction-based revenues. On an organic basis, bookings were also quite robust at approximately $423 million, up 16.3%. For the trailing 12 months, bookings were approximately $2 billion, up 53.2% and on an organic basis were approximately $1.5 billion, up 21.1%.
If our weighted average contract terms for new SaaS contracts had been the same as last year, organic bookings growth would have been 18.3%. As Lynn mentioned earlier, both cash flows from operations and free cash flow reached new highs for a second quarter. Cash flows from operations were $76.7 million and free cash flow rose to $60 million from negative $33.5 million last year. We continue to strengthen our already solid balance sheet. During the quarter, we repaid $60 million of our term debt. And since completing the NIC acquisition, we have paid down $475 million of term debt. We will also pay down an additional $100 million in term debt at the end of this month. We ended the quarter with total outstanding debt of $1.275 billion and cash and investments of $314 million. As a reminder, $600 million of our debt is in the form of convertible debt with an interest rate of 0.25% and the remainder is in prepayable term debt due in 2024 and 2026. We also have an undrawn $500 million revolver. Our net leverage at June 30 was approximately 2.07 times trailing 12 months pro forma EBITDA and our leverage should be under 2 times at the end of July. Interest rate hikes thus far this year and projected for the remainder of the year have resulted in significantly higher projected interest expense for the year than we anticipated at the beginning of the year.
In addition, we have debt discounts and issuance costs related to our term debt that are being amortized as noncash interest expense. And as we prepay term debt, we are required to accelerate the amortization of those costs. Accordingly, we have adjusted our earnings guidance for the full year to reflect those changes in assumptions around interest. Our current guidance for the full year interest expense of $30 million represents an increase of about $7 million or approximately $0.12 per share for both GAAP and non-GAAP EPS compared to our previous guidance. The $7 million increase includes about $4 million of cash interest on term debt and $3 million of additional noncash amortization of debt discounts and issuance costs. Its important to note that our revenue guidance has not changed, and our expectations for operating margins are generally consistent with our previous outlook. Our updated 2022 guidance is as follows. We expect both GAAP and non-GAAP total revenues will be between $1.835 billion and $1.870 billion.
The midpoint of our guidance implies organic growth of approximately 9%. We expect total revenues will include approximately $44 million of COVID-related revenues from NICs TourHealth and pandemic rent relief services. Revenues from TourHealth concluded in the second quarter, while revenues from the rent relief program are expected to wind down in the third quarter. We expect GAAP diluted EPS will be between $3.60 and $3.76 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate. We expect non-GAAP diluted EPS will be between $7.36 and $7.52. Interest expense is expected to be approximately $30 million, including approximately $7.5 million of noncash amortization of debt discounts and issuance costs. Other details of our guidance are included in our earnings release.
Now Id like to turn the call back over to Lynn.