Tyler Technologies TYL revealed that the city of Greenville, TX, selected its Enterprise Permitting & Licensing (“EPL”) and Enterprise Asset Management (“EAM”) solutions to improve community services. Being an existing user of Tyler’s Enterprise Resource Planning solution, Greenville has expanded the partnership with the new contract.
Implementing Tyler’s EPL and EAM solutions will help Greenville upgrade its current system, which has limited end-user configuration tools and lacks a robust customer portal. The solutions will help the city increase staff efficiency, maximize productivity, lower costs and reduce wait time in multiple departments.
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. It has been consistently enhancing its core software applications, and expanding complementary product and service portfolios to customers’ changing needs, while keeping pace with technological advancements.
The company has been pursuing strategic takeovers to broaden its product and service offerings, enter markets related to local governments, attract clients and expand geographically. In May, Tyler acquired Quatred, a system integrator and solution provider that assists clients by implementing advanced touchless technologies, including barcoding.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
Accelerated digital transformation and a sustained focus on enhancing the product portfolio through innovation and acquisitions are driving Tyler’s overall financial performance.
In the third quarter of 2022, the company’s GAAP and non-GAAP revenues increased 2.9% year over year to $473.2 million and outpaced the Zacks Consensus Estimate of $466.5 million. Non-GAAP earnings improved 2.8% to $2.06 per share and beat the consensus mark of $1.86 per share.
Tyler’s near-term growth prospect is likely to be affected by delays in procurement processes and lengthening sales cycles amid ongoing macroeconomic uncertainties. Also, many customers are likely to face budget pressures in the near term.
Moreover, 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 the gross margin.
Zacks Rank & Key Picks
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have plunged 40.7% year to date (YTD).
Some better-ranked stocks from the broader technology sector are Celestica CLS, Zscaler ZS and Blackbaud BLKB. Celestica sports a Zacks Rank #1 (Strong Buy) at present, while Zscaler and Blackbaud carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 60 days. For 2022, earnings estimates have moved up 9.4% to $1.86 per share in the past 60 days.
CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have declined 2.7% YTD.
The Zacks Consensus Estimate for Zscaler's second-quarter fiscal 2023 earnings has been revised 3 cents upward to 29 cents per share over the past 30 days. For fiscal 2023, earnings estimates have moved up by 6 cents to $1.23 per share in the past 30 days.
ZS’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 27.3%. Shares of the company have declined 65.1% YTD.
The Zacks Consensus Estimate for Blackbaud's fourth-quarter 2022 earnings has been revised southward by 3 cents to 58 cents per share over the past 60 days. For 2022, earnings estimates have moved upward by 4 cents to $2.59 per share in the past 60 days.
Blackbaud's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters, while missing the same on one occasion, the average surprise being 4.9%. Shares of BLKB have slumped 28.4% YTD.
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