Tyler (TYL) Inks 2-Year Contract Extension With State of Idaho
Tyler Technologies TYL recently announced that the state of Idaho has signed a two-year contract extension for its digital government and payments processing services. The new deal can be attributed to Tyler’s recently completed acquisition of NIC.
It is worth mentioning that the relationship between Idaho’s Office of Information Technology Services and NIC is 22-year long. The newly signed agreement reflects further extension of the relationship.
Tyler’s new subsidiary, NIC, hosts Idaho government’s official website — Idaho.gov — and provides 500 digital government services in the state. Working with over 371 state and local government bodies, NIC has processed more than 8 million transactions.
Tyler Technologies, Inc. Price and Consensus
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Last year, the citizen portal of Idaho’s motor vehicles department, which was developed and managed by NIC, witnessed a double-digit growth in online vehicle registration renewals as well as across driver’s license renewals, replacements, and suspension reinstatement.
The COVID-19 outbreak has disrupted almost every area of the federal government through mandated shutdowns. This has led to growing demand for contactless, digital interaction with the government among citizens and businesses. With markets rebounding to pre-COVID levels as evident from an upsurge in market trends, the high level areas in the state governments are focusing on transforming their operations digitally.
Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. It has been continuously advancing its core software applications and expanding complementary product and service portfolios to fulfill the changing needs of customers and respond to technological advancements.
During second-quarter 2021, the company added 170 new subscription-based arrangements and converted 62 existing on-premises clients, accounting for approximately $73 million in total contract value.
The Texas-based company has been extensively focusing on extending its major state enterprise contracts as well. It has recently signed a five-year contract extension with the Administrative Office of the Illinois Courts for providing eFileIL electronic filing solutions to the Illinois Courts.
In the second quarter, it entered into a definitive agreement to buy VendEngine. During that quarter, Tyler’s quarterly revenues jumped 49.4% year over year to $405.4 million.
In the third quarter, the company expanded its 10-year relationship with the state of Oregon’s E-Government Program by signing a four-year extension agreement. It also expanded its partnership with Legal Aid BC (formerly the Legal Services Society), under which the latter expanded the deployment of the former’s Modria online dispute solution to its other online services.
Additionally, Tyler partnered with Missouri River Energy Services for providing enterprise resource planning solutions through its integrated Incode software system. The non-profit organization, Florida Certification Board, has also signed a multi-year contract with the company for obtaining State Regulatory Licensing and Enforcement software services and online portal services provided by Tyler.
Zacks Rank & Other Key Picks
Tyler currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Avnet AVT, Shopify SHOP and Paycom Software PAYC, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate of Avnet, Shopify and Paycom are pegged at 25.4%, 25% and 25%, respectively.
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