Tyler Technologies, Inc. (TYL - Free Report) recently entered into a five-year, software-as-a-service (SaaS) contract with the city of Oxnard, CA, for an integrated enterprise resource planning (ERP) solution, which will replace the city’s 30-year-old legacy system.
The city selected enterprisewide modules from Tyler’s Munis ERP solution, EnerGov civic services suite, ExecuTime time and attendance applications plus Socrata Open Finance public data access and analysis portal.
How Will It Benefit Oxnard City?
Tyler’s product portfolio will provide residents and businesses in Oxnard city with improved accessibility to services. The array of solutions will also allow city staff to be more transparent with its constituents.
Further, Tyler’s software will eliminate the need for paper. The resident portal can be used by inhabitants for utility services, application and scheduling permit inspections, and payment of fees online.
Businesses will be able to submit electronic plans for review, thus facilitating easy track changes online. Additionally, vendors trading with the city will have the choice to tender invoices online and check payments in real time, thereby bettering their accessibility.
Notably, Tyler clinched 288 new software contracts in the last reported quarter. Management mentioned that the company already surpassed the total number of deals inked in 2018 through the first nine months of 2019.
In the third quarter, the company added 150 subscription-based arrangements and converted 20 existing on-premises clients, accounting for nearly $47 million in total contract value.
Tyler has also been pursuing strategic takeovers to widen its product and service portfolio, enter new markets related to local governments, attract clients and expand geographically. Investments and acquisitions are helping it strengthen its competitive edge and exploit new and expanding opportunities.
On the last earnings call, it was reported that the company snapped up 22 new ERP and public safety deals in the third quarter including Socrata's Data-as-a-Service platform. It also struck seven deals with CaseloadPRO, now branded as Tyler Supervision.
We therefore believe that large SaaS contract wins will boost growth in subscription revenues, which will remain a key driver for the company.
Zacks Rank & Stocks to Consider
Tyler currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Fortinet, Inc. (FTNT - Free Report) , Synopsys, Inc. (SNPS - Free Report) and ManTech International Corporation (MANT - 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 Fortinet, Synopsys and ManTech is currently pegged at 14%, 12.56% and 8%, respectively.
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