Tyler Technologies ( TYL Quick Quote TYL - Free Report) recently announced that it has grabbed two major contracts in the City of Lima, OH. One contract is with the Lima Municipal Court and the other with the Lima Police Department.
Under the contract with the Lima Municipal Court, Tyler will replace the court’s current case management system with its Enterprise Justice and Enterprise Supervision solutions, both powered by Odyssey. The implementation of these solutions will help the municipal court improve case management, streamline court processes and manage all supervision processes and pretrial services more efficiently.
Under its contract with the Lima Police Department, TYL will provide several solutions from its Enterprise Public Safety suite, including Enterprise Law Enforcement Records, Enterprise Police, Enterprise Computer Aided Dispatch and Fire Mobility.
Tyler disclosed that the aforementioned solutions would run on Amazon Web Services, which provide an on-demand cloud computing platform, thereby eliminating the need for courts to build and maintain local servers. Moreover, the solutions will improve the availability and uptime of products and enhance security and compliance.
With Tyler’s integrated solutions, the Lima Police Department will be able to streamline work processes, thereby improving staff efficiency and productivity while enhancing community safety. These solutions will help the police department provide accurate and secure information for dispatchers and first responders in the field and command its staff.
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from the on-premise and outdated systems to scalable cloud-based systems. It has been continuously advancing its core software applications and expanding its complementary product and service portfolios to fulfill the changing needs of customers and respond to technological advancements, which is helping it win new customers.
In the first quarter of 2022, TYL added 149 new subscription-based arrangements and 44 license contracts, accounting for a cumulative contact value worth $73.6 million.
The company has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. However, it faces significant integration risks due to frequent acquisitions.
Furthermore, Tyler’s near-term growth prospect is likely to be negatively impacted by delays in procurement processes and lengthening sales cycles as public entities focus on issues related to the pandemic. Moreover, inflation, rising oil prices and Fed’s hawkish monetary policy are raising concerns of a recession, which can result in lower spending by the public sector. This will eventually hurt Tyler’s sales growth.
Zacks Rank & Stocks to Consider
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have plunged 37.7% year to date (“YTD”).
Some better-ranked stocks worth considering from the broader technology sector are
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