Tyler (TYL) Helps DeKalb County Transition to SaaS Deployment
Tyler Technologies TYL revealed that DeKalb County, a suburb of Atlanta, GA, has successfully transitioned to Tyler’s software-as-a-service (SaaS) installation from an on-premise installation. The company stated that its newly deployed SaaS-based products are powered by Amazon Web Services.
With this transition, DeKalb County has become Tyler’s largest-ever court client that has migrated from an on-premise hosting environment to a cloud environment. The county is one of the long-standing clients for the company and has deployed multiple products, including Enterprise Justice suite, Enterprise Corrections and pretrial services.
Additionally, DeKalb County has deployed court modules, including Electronic Notices, Electronic Signatures and batch scanning, as well as Records Management, eFileGA and re:SearchGA.
Debra DeBerry, DeKalb County Clerk of Superior Court, believes that SaaS deployment will provide better stability, flexibility and cost effectiveness over time. The new installation will remove the expenses as well as the manpower necessary for managing servers and required hardware. This, in turn, will save money over time as well as lessen the burden on IT staff.
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems.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.
Shares of Tyler have outperformed the Zacks Business – Software Services industry in the year-to-date (YTD) period. TYL’s shares have rallied 27.6% YTD compared with the industry’s 19.5% growth.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Broadening Portfolio Through Acquisitions
TYL 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 August 2023, the company completed the acquisition of Orlando, FL-headquartered Computing System Innovations, LLC (“CSI”) to enhance its electronic filing and redaction solutions.
Tyler intends to integrate CSI’s artificial intelligence (AI)-driven redaction and indexing solution — Intellidact Platform — into its eFile & Serve solution portfolio to automate data entry and document processing options for its clientele. It is also likely to leverage CSI’s AI and automation solution across its other verticals like Municipal & Schools, Property & Recording and Platform Solutions.
In March 2023, TYL revealed that it acquired Safeground Analytics — a Massachusetts-based analytics company offering exemplary real estate appraisals and assessments for states, counties and municipalities.
With this buyout, the company intends to accelerate its appraisal service businesses by bringing a team of experienced appraisers, analysts, statisticians, economists, computer scientists and assessors from Safeground Analytics. The analytics company will provide TYL with residential and commercial reassessments and deliver litigation support, expert witness testimony solutions for property appraisal matters, and auditing and monitoring services.
However, Tyler’s near-term growth prospects are likely to be affected by a delay in procurement process and lengthy sales cycle amid ongoing macroeconomic uncertainties. Also, many customers are expected to face budget pressures in the near term.
Additionally, high investments in R&D initiatives are likely to hurt margins. Intensifying competition from the likes of Oracle, SAP and Workday might keep Tyler’s pricing under pressure and negatively impact its gross margin.
Zacks Rank & Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology sector are Intel Corporation INTC, Aspen Technology, Inc. AZPN and Datadog, Inc. DDOG. While both Intel and Aspen currently sport a Zacks Rank #1 (Strong Buy), Datadog carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Intel’s fourth-quarter 2023 earnings has moved north 10 cents to 42 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 30 cents to 91 cents in the past 30 days.
Intel's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, delivering an average surprise of 136.3%. Shares of INTC have rallied 65.7% year to date.
The Zacks Consensus Estimate for Aspen's second-quarter fiscal 2024 earnings has moved north 14 cents to $1.49 per share in the past 30 days. The consensus estimate for fiscal 2024 earnings has increased 5 cents to $6.63 per share in the past 30 days.
Aspen's earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average negative surprise of 32.3%. Shares of AZPN have lost 10.6% year to date.
The Zacks Consensus Estimate for Datadog's fourth-quarter 2023 earnings has moved north 9 cents to 43 cents per share in the past 30 days. The consensus estimate for 2023 earnings has increased 19 cents to $1.51 per share in the past 30 days.
DDOG’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 28.6%. Shares of Datadog have rallied 49% year to date.
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