Brian Miller
Executive Vice President, Chief Financial Officer and Treasurer at Tyler Technologies
Thanks, Lynn. Yesterday, Tyler Technologies reported its results for the third quarter ended September 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. We have also posted on the Investor Relations section of our website under the Financials 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 $473.2 million, up 2.9% and 2.7%, respectively. Organic revenue growth, excluding COVID-related revenues was strong at 9% on a GAAP basis and 8.8% on a non-GAAP basis.
NIC's COVID-related revenues for the quarter were $11.7 million compared to $43.3 million in last year's third quarter. Revenue from the TourHealth initiative ended in the second quarter, and the Virginia rent relief program has now officially ended with less than $2 million of remaining revenues anticipated in the fourth quarter. License revenue declined 10.6% as our new software contract mix has shifted to SaaS even more rapidly than planned at the beginning of the year. Professional services revenues rose 15.7% and 6.3% organically. We intend to continue to grow our implementation team during the fourth quarter to support delivery of our growing backlog and pipeline, but we'll likely continue to see some pressure on professional services revenue in the near term as those teams ramp up to become fully billable.
Subscriptions revenue was just slightly above Q3 of last year due to the expected $37 million decline in COVID-related subscription revenue, but organically rose 14.5%. We added 153 new subscription-based arrangements and converted 70 existing on-premises clients, representing a total of approximately $149 million in contract value. In Q3 of last year, we added 144 new subscription-based arrangements and had 67 on-premises conversions, representing a total of approximately $84 million in contract value. Our software subscription bookings in the third quarter added $28.1 million in new ARR. Subscription contract value comprised a new high of approximately 91% of total new software contract value signed this quarter compared to 74% in Q3 of last year. The value weighted average term of new SaaS contracts this quarter was 3.8 years compared to 3.4 years last year.
Transaction-based revenues, which include NIC portal, payment processing and e-filing revenues and are included in subscriptions, were $148.9 million, down 13% but excluding COVID-related revenue, grew 11.1%. E-filing revenue reached a new high of $19.7 million, up 13.3%. Our non-GAAP ARR was approximately $1.49 billion, which was flat with last year, but up 11.2%, excluding COVID-related revenues. Non-GAAP ARR for SaaS software arrangements was $421.7 million, up 27.7%. Transaction-based ARR was $595.6 million, down 13%, but up 11.1%, excluding COVID-related revenues. Non-GAAP maintenance ARR was flat with Q3 last year at $469.4 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 $1.88 billion, up 6.3%. Bookings in the quarter were approximately $499 million, down 17% on a difficult comparison to Q3 of last year for three main reasons.
First, Q3 of last year included the State of Illinois fixed fee e-filing renewal of approximately $63 million. Second, COVID-related revenues and bookings were approximately $43 million in Q3 last year, versus $11 million in the current quarter. And finally, most of the Federal Department of State deals signed this quarter was not included in backlog or bookings. Normalizing for these items, bookings grew 7.7%. On an organic basis, bookings were approximately $364 million, down 17.9% but grew 7.7% on a normalized basis. For the trailing 12 months, bookings were approximately $1.9 billion, up 18.1%. And on an organic basis, were approximately $1.4 billion, up 2.1%. As a result of an increase in our estimated research tax credit, our annual GAAP and non-GAAP effective tax rates were positively affected.
Our non-GAAP annual effective tax rate is now 22.5%, down from the 24% previously used and the non-GAAP effective tax rate for the third quarter was 19.6% to adjust the year-to-date tax rate. This resulted in an $0.11 uplift to our third quarter non-GAAP EPS. For the full year, we expect this tax rate change to impact non-GAAP EPS by approximately $0.14. Cash flows from operations were $129.4 million, down 37% and free cash flow was $115.6 million, down 40% mainly due to the timing of working capital items such as payroll accruals, remittance of portal fees and taxes, and we expect to see positive impacts of these timing items in the fourth quarter. We continue to strengthen our already solid balance sheet.
During the quarter, we repaid $190 million of our term debt. And since completing the NIC acquisition, we have paid down $665 million of term debt. We ended the quarter with total outstanding debt of $1.085 billion and cash and investments of $247.9 million. As a reminder, $600 million of our debt is in the form of convertible debt with a fixed interest rate of 0.25%. The remaining $485 million is in prepayable term debt due in 2024 and 2026, with interest at floating rates based on LIBOR plus a margin of 125 or 150 basis points. So our exposure to floating rates is limited. We also have an undrawn $500 million revolver. Our net leverage at quarter end was approximately 1.79 times trailing 12-month pro forma EBITDA. Looking forward, we have adjusted the upper end of our full year revenue guidance to reflect lower license revenue as a result of a higher SaaS mix as well as the timing of new license contracts in our Public Safety and federal divisions along with ongoing pressures on professional services revenue.
Adjusted for the change in our effective tax rate, the midpoint of our non-EPS guidance is unchanged. Our updated 2022 guidance is as follows: we expect both GAAP and non-GAAP total revenues will be between $1.837 billion and $1.857 billion. The midpoint of our guidance implies organic growth of approximately 8%. We expect total revenues will include approximately $49 million of COVID-related revenues from NIC's TourHealth and pandemic rent relief services. Revenue from TourHealth ended in the second quarter, while revenue from the rent relief program is expected to end in the fourth quarter. We expect GAAP EPS will be between $3.89 and $4.05 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
We expect non-GAAP diluted EPS will be between $7.51 and $7.65. Interest expense is expected to be approximately $28 million, including approximately $7 million of noncash amortization of debt discounts and issuance costs. For the full year, the net impact of the change in our tax rate, offset by increases in estimated interest expense, resulted in a $0.02 net reduction in non-GAAP EPS compared to our initial guidance. Other details of our guidance are included in our earnings release.
Now I'd like to turn the call back over to Lynn for his comments.