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Tyler's SCGC Solution Sees Uptake, Adds Chattanooga as Client

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Tyler Technologies, Inc. (TYL - Free Report) announced that the city of Chattanooga, TN, has signed an agreement with it for using its Socrata Connected Government Cloud (SCGC) solution to steer the government toward a data-driven set-up.

Kevin Merritt, president, Data & Insights Division of Tyler Technologies, stated that the solution “will support Chattanooga’s work of building a more resilient, innovative and connected community through data-driven governance.”

Notably, the solution has been resonating well with the market since it was launched early last year. Recently, the Metropolitan Transportation Commission in San Francisco, CA, also inked a deal with Tyler for applying this solution.

SCGC in Detail

Tyler introduced SCGC last May. This advanced internal data sharing approach provides government workers with access to a single-source of trusted data and helps securely share analysis, visualizations and performance measurements across multiple departments and programs.

The solution offers a safe, cloud-based, self-service environment to government organizations that aids in breaking down data silos, promoting collaboration and reusing data. Moreover, by delivering an advanced toolset to government employees, the solution assists in transforming data into information and insights that improve financial, operational and strategic outcomes.

The solution enjoyed an early adoption by Utah Department of Transportation, Hawaii Department of Transportation, the state of Pennsylvania, and the city of Henderson, NV. It is now available across all federal, state and local government agencies including Tyler’s broad base of current clients.

On last earnings call, management mentioned that the company signed seven new contracts for SCGC in the last reported quarter, adding clients at the federal, state and local levels.

Tyler Rides on Socrata Integration

Tyler acquired Socrata in April 2018, focused on accelerating “Connected Communities vision through innovative data and insights cloud offering.”

Notably, Socrata’s roster of Tier 0 and Tier 1 clients including the Michigan State Budget Office, the Utah Department of Transportation and general administration offices for several states comprising Texas, New York, Illinois and Pennsylvania are positives for Tyler.

In the last reported quarter, Socrata's revenues increased significantly on a sequential basis. Management expects the same to substantially rise in the fourth quarter over the third.

Zacks Rank and Stocks to Consider

Currently, Tyler has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Computer and Technology sector are Synopsys, Inc.(SNPS - Free Report) , Cloudera and Verint Systems Inc. (VRNT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for both Synopsys and Verint is projected to be 10% while the same for Cloudera stands at 8%.

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Synopsys, Inc. (SNPS) - free report >>

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