Tyler Technologies Inc (NYSE: TYL)

Tyler Technologies, Inc. (TYL), a prominent player in the public sector market, specializes in providing integrated software and technology management solutions. With operations spanning various regions, the company's solutions significantly contribute to enhancing the functionality of local, state, and federal government entities. By empowering these entities, Tyler Technologies plays an instrumental role in building smarter, safer, and stronger communities.

The company's revenue generation primarily stems from four key sources: subscription-based services, maintenance and support, professional services, and software licenses and royalties. Subscription-based services represent the majority of Tyler's earnings, encompassing software as a service (SaaS) arrangements and transactions-based fees. These services cater to government agencies, assisting them in managing various aspects of their operations such as public administration, courts and public safety, K-12 education, and health and human services.

Tyler Technologies holds a notable position within the industry, characterized by its comprehensive platform and transformative technology solutions. These offerings bolster government innovation and amplify clients' capacity to engage with constituents, perform transactions, collect and disburse funds, safeguard systems, and harness data effectively. The company's extensive product and service portfolio includes cybersecurity, data and insights, digital solutions, payments, platform technologies, outdoor recreation, public administration, courts and public safety, K-12 education, and health and human services.

Within the public administration domain, Tyler's solutions seamlessly link departments, agencies, municipalities, and states, facilitating the delivery of core business functions inherent to the public sector. Meanwhile, the company's courts and public safety solutions find application at municipal, county, state, and federal levels. These solutions aid courts, prosecutors, defenders, jails, sheriff's offices, police departments, and probation officers in maintaining community safety.

In its pursuit of growth, Tyler Technologies employs a dual strategy involving organic revenue and earnings expansion, complemented by strategic acquisitions. The company's integrated system of applications for multiple offices or departments often serves as a competitive advantage, setting it apart from numerous local, regional, and national firms offering similar solutions and services.

Tyler Technologies' sales, marketing, and client team primarily leverages direct sales and marketing personnel distributed across the United States to promote its products and services. Additionally, the company utilizes a partner network for both sales and professional services, with a particular focus on state and federal markets.

The company's supplier base primarily consists of computers, peripherals, printers, scanners, operating system software, office automation software, and other necessary equipment for implementing and providing its software systems and services. Notably, Tyler Technologies has not encountered any significant supply problems.

As of December 31, 2023, Tyler Technologies' backlog stood at $2.3 billion, expected to materialize as revenue over the subsequent three to five years. This backlog comprises signed contracts and purchase orders yet to be recognized as revenue. Approximately $937 million, or 46%, of the backlog is projected for recognition during 2024.

Tyler Technologies' brand names and trade names encompass a wide array of product and service offerings. These include, but are not limited to, cybersecurity, data and insights, digital solutions, payments, platform technologies, outdoor recreation, public administration, courts and public safety, K-12 education, and health and human services.