Tyler (TYL) to Support Kentucky's Medical Cannabis Program
Tyler Technologies, Inc. TYL has inked a deal with the Commonwealth of Kentucky to deploy its Cannabis Licensing solution, aiding in the regulation of the state's medical cannabis initiative.
Following the approval of Senate Bill 47 in March 2023, which greenlit the legalization of medical cannabis under strict guidelines, Tyler's software is poised to facilitate the rollout of Kentucky's Medical Cannabis Program, set to commence on Jan 1, 2025. The Cabinet for Health and Family Services (“CHFS”) will leverage Tyler's solution to streamline licensing and registration processes for patients, caregivers and businesses while ensuring adherence to regulatory standards.
Utilizing Amazon Web Services (“AWS”), Tyler's cloud-hosted platform ensures scalability, resilience and data security. Carlos Luna, Tyler's Kentucky state enterprise general manager, expressed confidence in the collaboration, emphasizing the company's expertise in implementing state cannabis regulation solutions. With a proven track record in supporting regulatory agencies across 11 states and the U.S. Virgin Islands, Tyler is positioned as a trusted partner in navigating the complexities of cannabis regulation.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Cloud Adoption Aids Tyler’s Growth
Tyler has been capitalizing on the public sector's shift toward cloud-based systems, abandoning outdated on-premise solutions. Continuously upgrading its core software applications and diversifying its product offerings, Tyler aligns with evolving customer demands and technological advancements.
Operating in a vast market comprising 3,000 counties, 36,000 municipalities and numerous schools nationwide, Tyler unlocks diverse opportunities. From property assessment to healthcare, government agencies seek IT solutions for various functions, facing challenges in retaining IT professionals amid competitive job markets.
In the latest reported financial results for the fourth quarter of 2023, Tyler’s revenues increased 6.3% year over year to $480.9 million. The backlog at the quarter-end was $2.03 billion, up 7.6% year over year. Bookings soared 21.3% year over year to $563 million.
However, Tyler is facing some hurdles, like procurement delays and prolonged sales cycles amid economic uncertainties. Moreover, budget constraints may hinder short-term growth prospects for the company and its clientele.
Zacks Rank & Stocks to Consider
Tyler currently carries a Zacks Rank #3 (Hold). Shares of TYL have increased 4.4% year to date (YTD).
Some better-ranked stocks from the broader technology sector are CrowdStrike Holdings CRWD, Amazon.com AMZN and Meta Platforms META, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CrowdStrike’s fiscal 2024 earnings has been revised a penny upward to $2.95 per share in the past 30 days, suggesting year-over-year growth of 91.6%. The long-term estimated earnings growth rate for the stock stands at 36.1%. Shares of CRWD have jumped 25.8% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 3 cents to $4.06 per share in the past seven days, which calls for an increase of 40% on a year-over-year basis. The long-term expected earnings growth rate for the stock is pegged at 28.1%. AMZN stock has returned 14.3% YTD.
The consensus mark for Meta’s 2024 earnings has been revised upward by 12 cents to $19.94 per share over the past seven days, indicating a 34.1% increase from 2023. It has a long-term earnings growth expectation of 19.5%. In the trailing 12 months, META stock has surged 37.5% YTD.
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