Tyler Technologies Inc. (TYL - Free Report) recently announced that its Incode utility billing solution will be deployed by Georgetown Divide Public Utility District (PUD) and the County of Madera in California.
Reportedly, Incode will be used by these entities to manage respective utility billing processes, which include scheduling, billing and reporting.
Tyler aims to increase efficiency, reduce manual processes and simplify communications with these clients so that they can serve their communities better.
Tyler’s Incode Utility Billing Online is part of Incode, which is a comprehensive enterprise resource planning (ERP) solution for local governments. Notably, Tyler’s Incode solution has 2,400 clients across the country, of which 70 are based in California.
Moreover, in addition to Incode, Georgetown Divide PUD has chosen Tyler’s Socrata Open Finance solution that will merge with Incode and exhibit its transactions and funds in a better format.
Tyler’ Traction From Client Wins
Tyler is gaining traction from robust growth in new business. The company is benefitting from the surging SaaS adoption among local governments. Investments and acquisitions are helping it improve its competitive edge and address new and expanding opportunities.
A solid uptrend in subscription revenues, backed by large SaaS contract wins, is a key driver for the company.
Notably, Tyler recently announced that its Infinite Visions ERP and Tyler Content Manager solutions will be deployed by Phoenix, AZ-based Paradise Valley Unified School District (USD).
However, uncertainty about the ability to frequently snap up significant deals is a concern. The company anticipates to witness a normal mix of some huge deals and more traditional mid-sized agreements through the rest of 2019.
Further, Tyler faces fierce competition in maximum end markets from leading players like Oracle, SAP, Workday etc. As stiff rivalry exerts a lot of pricing pressure, it makes us apprehensive about the company’s earnings potential.
Zacks Rank & Stocks to Consider
Tyler currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Synopsys (SNPS - Free Report) , Chegg (CHGG - Free Report) and Perficient (PRFT - Free Report) , each flaunting 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 Synopsys, Chegg and Perficient is currently projected to be 12%, 30% and 10.8%, respectively.
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