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Tyler Shifts Clients to New EEO Solution: What Should Investors Do?
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Tyler Technologies (TYL - Free Report) shares have gained 38.5% in the year-to-date period, outperforming the Zacks Business - Software Services industry, Zacks Computer and Technology Sector and the S&P 500 index’s return of 14.7%, 24.5% and 20.5%, respectively. Tyler’s outperformance can be attributed to its steady flow of customer wins and robust financials.
Recently, Tyler has shifted its clients from its older ICOMPLAINTS platform to its latest Application Platform-based Equal Employment Opportunity (EEO) Case Management solution.
Organizations that have shifted to the new EEO platform include the U.S. Health and Human Services, Defense Threat Reduction Agency, U.S. Army, National Geospatial-Intelligence Agency, U.S. Government Accountability Office and U.S. Social Security Administration.
These customers will benefit from Tyler’s regular upgrades of its EEO Case Management platform in compliance with the evolving federal labor laws. Tyler keeps on upgrading the solution per the needs of the agencies while also enhancing transparency. The solution also enables agencies to generate the Form 462 annual report. The migration of customers from its older system reflects Tyler’s proactiveness with its customers.
Tyler YTD Performance
Image Source: Zacks Investment Research
Tyler Gains From Expanding Client Base
So far this year, Tyler has gained numerous clients from the government, healthcare and education end markets. Tyler enabled Lewis County with its Enterprise Assessment & Tax solution. The State of New Jersey extended its agreement with Tyler for its Digital Government solutions. Idaho Supreme Court transitioned to TYL’s Court Case Management Solution from on-premises to cloud deployment.
North Dakota Parks subscribed to Tyler’s cloud-based reservation software. The city of Philadelphia Sheriff’s office implemented Tyler’s Civil Process solution. Florida Department of Corrections adopted Tyler’s payment and deposit solutions. Evanston Police Department in Illinois, Arizona Supreme Court and Guam Department of Corrections implemented and expanded the use of TYL’s enterprise supervision solution.
Jackson Public Schools implemented the Enterprise Resource Planning solution. Collier County, FL, went live with Budgeting Solution from Tyler. Rhode Island Department of Business Regulation implemented the State Regulatory Platform suite. The city of Edina implemented TYL’s permitting and inspection processes software. With all these major wins, Tyler is expanding its footprint in the federal and public service solutions space.
Economic and Competitive Challenges for Tyler
Tyler faces near-term challenges, including delayed procurement processes and lengthening sales cycles caused by the ongoing macroeconomic volatility. Many of its customers are wary of a probable economic slowdown that shows in their low budget allocation for digital transformation.
Tyler has major competitors like Oracle (ORCL - Free Report) , Workday (WDAY - Free Report) and SAP (SAP - Free Report) . Tyler competes with Oracle’s Public Sector Cloud, PeopleSoft ERP solution, JD Edwards, SAP's S/4HANA, SuccessFactors, Ariba, Analytics Cloud and Integrated Business Planning, as well as Workday's Human Capital Management, Enterprise Accounting and Finance and Adaptive Planning solutions.
The competition from Oracle, Workday and SAP forces Tyler to continuously invest in research and development. Moreover, the rising competition keeps Tyler’s product pricing under pressure, affecting its gross margin.
What Should Investors Do?
Although the Federal and Public Service solution market is highly competitive due to the presence of big players, Tyler is receiving a steady flow of clientele, which is positively impacting its top line.
The public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems is an upside. The growing hybrid working trend is also driving the demand for its connectivity and cloud services.
Image: Bigstock
Tyler Shifts Clients to New EEO Solution: What Should Investors Do?
Tyler Technologies (TYL - Free Report) shares have gained 38.5% in the year-to-date period, outperforming the Zacks Business - Software Services industry, Zacks Computer and Technology Sector and the S&P 500 index’s return of 14.7%, 24.5% and 20.5%, respectively. Tyler’s outperformance can be attributed to its steady flow of customer wins and robust financials.
Recently, Tyler has shifted its clients from its older ICOMPLAINTS platform to its latest Application Platform-based Equal Employment Opportunity (EEO) Case Management solution.
Organizations that have shifted to the new EEO platform include the U.S. Health and Human Services, Defense Threat Reduction Agency, U.S. Army, National Geospatial-Intelligence Agency, U.S. Government Accountability Office and U.S. Social Security Administration.
These customers will benefit from Tyler’s regular upgrades of its EEO Case Management platform in compliance with the evolving federal labor laws. Tyler keeps on upgrading the solution per the needs of the agencies while also enhancing transparency. The solution also enables agencies to generate the Form 462 annual report. The migration of customers from its older system reflects Tyler’s proactiveness with its customers.
Tyler YTD Performance
Image Source: Zacks Investment Research
Tyler Gains From Expanding Client Base
So far this year, Tyler has gained numerous clients from the government, healthcare and education end markets. Tyler enabled Lewis County with its Enterprise Assessment & Tax solution. The State of New Jersey extended its agreement with Tyler for its Digital Government solutions. Idaho Supreme Court transitioned to TYL’s Court Case Management Solution from on-premises to cloud deployment.
North Dakota Parks subscribed to Tyler’s cloud-based reservation software. The city of Philadelphia Sheriff’s office implemented Tyler’s Civil Process solution. Florida Department of Corrections adopted Tyler’s payment and deposit solutions. Evanston Police Department in Illinois, Arizona Supreme Court and Guam Department of Corrections implemented and expanded the use of TYL’s enterprise supervision solution.
Jackson Public Schools implemented the Enterprise Resource Planning solution. Collier County, FL, went live with Budgeting Solution from Tyler. Rhode Island Department of Business Regulation implemented the State Regulatory Platform suite. The city of Edina implemented TYL’s permitting and inspection processes software. With all these major wins, Tyler is expanding its footprint in the federal and public service solutions space.
Economic and Competitive Challenges for Tyler
Tyler faces near-term challenges, including delayed procurement processes and lengthening sales cycles caused by the ongoing macroeconomic volatility. Many of its customers are wary of a probable economic slowdown that shows in their low budget allocation for digital transformation.
Tyler has major competitors like Oracle (ORCL - Free Report) , Workday (WDAY - Free Report) and SAP (SAP - Free Report) . Tyler competes with Oracle’s Public Sector Cloud, PeopleSoft ERP solution, JD Edwards, SAP's S/4HANA, SuccessFactors, Ariba, Analytics Cloud and Integrated Business Planning, as well as Workday's Human Capital Management, Enterprise Accounting and Finance and Adaptive Planning solutions.
The competition from Oracle, Workday and SAP forces Tyler to continuously invest in research and development. Moreover, the rising competition keeps Tyler’s product pricing under pressure, affecting its gross margin.
What Should Investors Do?
Although the Federal and Public Service solution market is highly competitive due to the presence of big players, Tyler is receiving a steady flow of clientele, which is positively impacting its top line.
The public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems is an upside. The growing hybrid working trend is also driving the demand for its connectivity and cloud services.
Considering these factors, it is prudent for investors to invest in this Zacks Rank #2 (Buy) stock right now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.