Tyler Technologies ( TYL Quick Quote TYL - Free Report) announced that Vermont signed a three-year contract extension for its digital government and payment processing services. The deal can be attributed to the Texas-based company’s acquisition of NIC in April 2021.
The relationship between Vermont and NIC is 16-year long. The newly signed agreement reflects a further extension of their relationship. Tyler’s subsidiary, NIC, manages more than 150 services and 120 websites on behalf of Vermont. Moreover, NIC Vermont’s digital payment processing platform securely processed more than $55 million in 2021.
Cloud Adoption Driving Demand for Tyler Products
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. TYL has been consistently enhancing its core software applications and expanding complementary product and service portfolios to cater to the changing needs of customers while keeping pace with technological advancements.
Earlier this month, Tyler grabbed a contract from the Putnam County Sheriff’s Office in New York for its Enterprise Public Safety suite. However, the company didn’t disclose the financial terms of the deal.
The solution suite includes Tyler’s Enterprise Computer Aided Dispatch, Enterprise Law Enforcement Records, Enterprise Law Enforcement Mobile, Civil Process and Public Safety Analytics. The implementation of the aforementioned Enterprise Public Safety solutions will help the Sheriff’s Office increase efficiency and streamline communication.
Last month, Tyler’s NIC signed a one-year contract extension with the Commonwealth of Kentucky for its digital government and payment processing services. The relationship between Kentucky and NIC is 19-year long, and the latter manages more than 300 services on behalf of the former and processes more than $7 billion in payment processing annually.
Tyler has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically.
In May, Tyler acquired Quatred, a systems integrator and solution provider that assists clients by implementing advanced touchless technologies, including barcoding. However, Tyler faces significant integration risks due to frequent acquisitions.
The accelerated digital transformation and a sustained focus on enhancing the product portfolio through innovation and acquisitions are driving Tyler’s overall financial performance.
In the second quarter of 2022, the company’s GAAP and non-GAAP revenues increased 16% year over year to $468.7 million and outpaced the Zacks Consensus Estimate of $456.2 million. Non-GAAP earnings improved 2.9% to $1.88 per share and beat the consensus mark of $1.83 per share.
Zacks Rank & Stocks to Consider
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have decreased 34.2% year to date (YTD).
Some better-ranked stocks from the broader Computer and Technology sector are
Clearfield ( CLFD Quick Quote CLFD - Free Report) , Silicon Laboratories ( SLAB Quick Quote SLAB - Free Report) and Monolithic Power ( MPWR Quick Quote MPWR - Free Report) . Clearfield and Silicon Laboratories each sport a Zacks Rank #1 (Strong Buy), while Monolithic Power carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
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