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Tyler Technologies (TYL) Rides on Growing Customer Base

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Tyler Technologies (TYL - Free Report) has gained 12.8% year to date against the Zacks Business - Software Services Industry’s decline of 5.4%. TYL’s price rise reflects investors’ confidence in the company's impressive financial results in consecutive quarters, strong fundamentals and an array of customer wins.

So far in 2024, the company has signed deals with the Florida Department of Corrections, Illinois Police Department, Guam Department of Corrections, Jackson Public Schools, Florida-based Collier County, California State Parks, Idaho Supreme Court, Wyoming State Parks, City of Edina and the Commonwealth of Kentucky.

Adding to this list, TYL recently revealed that the City of Philadelphia Sheriff’s Office has successfully implemented the company’s Civil Process solution. The implementation will enable the sheriff’s office to conduct civil process and warrant service more effectively. Tyler Technologies’ Civil Process solution also improves communication capabilities and financial and real estate data management.

The entire setup took a nine-month implementation time and involved TYL’s multiple applications, such as Civil Serve, Civil Query, Civil Mobile, GIS Connector and Sales Web. The platform will be hosted in Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”) for improved reliability and flexibility.

Industry Trends to Aid TYL’s Prospects

The public sector's increasing reliance on technology to improve efficiency and service delivery bodes well for Tyler Technologies. Governments at all levels are investing in digital transformation initiatives, which include modernizing legacy systems, enhancing cybersecurity and adopting cloud-based solutions. As a trusted partner to the public sector, TYL is well-positioned to benefit from these industry trends.

Additionally, TYL’s partnerships with tech giants like Microsoft (MSFT - Free Report) and Amazon’s AWS significantly enhance its offerings and market reach. The partnership with Microsoft allows Tyler Technologies to provide scalable and secure cloud-based solutions to public sector clients, addressing the growing demand for digital transformation in government operations.

The partnership with Amazon’s AWS enables TYL to utilize AWS’ powerful cloud infrastructure, ensuring reliable and efficient service delivery.

Strong Growth Projection

Tyler Technologies has demonstrated a strong financial performance in the past four quarters, with its non-GAAP earnings beating the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 6.67%.

The Zacks Consensus Estimate for Tyler Technologies’ 2024 earnings has been revised upward by 22 cents to $9.19 per share, indicating growth of 17.8% year over year. The consensus mark for revenues is pegged at $2.12 billion, indicating 8.8% year-over-year growth.

The long-term expected earnings growth rate is 15%, significantly higher than the industry average of 10.2%.


We consider that TYL represents a compelling investment opportunity due to its strong market position, consistent revenue growth, strategic partnerships, focus on innovation and favorable industry trends. Its ability to deliver essential software solutions to the public sector, combined with its commitment to innovation and strategic growth, positions it well for sustained success.

Additionally, Tyler Technologies sports a Zacks Rank #1 (Strong Buy) and has a Growth Score of B at present. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Growth Score of A or B offer solid investment opportunities.

Therefore, considering its impressive growth profile and attractive Zacks Style Score, we believe it is the right time to invest in the stock.

Another top-ranked stock worth considering in the broader technology sector is NVIDIA Corporation (NVDA - Free Report) . The stock currently sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for NVIDIA’s fiscal 2025 revenues is currently pegged at $117.3 billion, indicating year-over-year growth of 92.6%. The consensus mark for earnings is pegged at $2.68 per share, implying year-over-year growth of 106%. Shares of NVDA have skyrocketed 166.4% year to date.

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