Tyler (TYL) to Transform Budgeting Process in Collier County
Tyler Technologies, Inc. TYL has inked a deal with Collier County, FL, to implement its Priority Based Budgeting solution. This move aims to enhance the county's budgeting process by eliminating the constraints of traditional line-item budgeting methods.
Budgeting Process Improvement
Collier County Commissioner Chris Hall expressed enthusiasm about the collaboration, citing expectations of improved alignment, efficiency and transparency in budget priorities. By adopting a priority-based approach, the county intends to better allocate resources in line with community needs and outcomes, fostering accountability and a deeper understanding of program costs.
Through Tyler’s solution, Collier County anticipates a transformation in its budgeting approach, supporting the realization of strategic goals while safeguarding taxpayer funds. The incorporation of machine learning capabilities enables predictive analytics, empowering targeted budget predictions that drive program outcomes.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Following Tyler’s acquisition of ResourceX in October 2023, the addition of Priority Based Budgeting to Tyler’s ERP portfolio signifies a significant advancement in public sector budgeting. Collier County joins a growing cohort of local governments adopting progressive budgeting methodologies, as recommended by the Government Finance Officers Association.
Tyler’s President of ERP & Civic Division, Chris Webster, underscored the company’s commitment to supporting Collier County’s objectives. The solution’s machine learning capabilities expedite implementation, facilitating informed budget decisions aligned with the county’s priorities and aspirations.
With a population of approximately 392,000, Collier County, situated along Florida's Gulf Coast, including Naples, stands poised to benefit from this innovative budgeting initiative.
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Tyler has been capitalizing on the public sector's shift toward cloud-based systems, abandoning outdated on-premise solutions.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
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have risen 2.3% year to date (YTD).
Some better-ranked stocks from the broader technology sector are NVIDIA Corporation NVDA, Meta Platforms META and Amazon.com AMZN, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The consensus mark for Meta’s 2024 earnings has been revised upward by 12 cents to $19.94 per share over the past 30 days, which indicates 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 41.1% YTD.
The Zacks Consensus Estimate for Amazon’s 2024 earnings has been revised upward by 2 cents to $4.08 per share in the past seven days, which implies an increase of 40.7% 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 15.4% YTD.
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