TYLER TECHNOLOGIES INC (TYL)

Tyler Technologies, Inc. is a leading provider of integrated software and technology management solutions exclusively for the public sector, serving local, state, and federal government entities across the United States and in Canada, the Caribbean, the United Kingdom, Australia, and other international locations. The company offers a comprehensive suite of back-office systems-of-record alongside transformative platform technologies—including a market-leading payments platform processing nearly half a billion transactions annually, a data and insights platform, a low-code application development platform, digital resident experience solutions, cybersecurity services, and outdoor recreation management tools—that integrate across government agencies. Tyler's core product lines are organized into several solution areas: Public Administration Solutions (civic services, ERP, property & recording, and regulatory/permitting management); Courts & Public Safety Solutions (corrections, courts & justice case management, and public safety systems); K-12 Education Solutions (school ERP and student transportation management); and Health & Human Services Solutions (environmental health and disability & benefits administration).

Revenue is derived from three primary sources: subscription-based services (SaaS arrangements and transaction-based fees from digital government services, online payments, and e-filing), maintenance and support for on-premises software, and professional services including implementation, data conversion, and training; software licenses/royalties and hardware equipment represent a small remaining portion of revenue. The company maintains deep, long-term relationships with government clients—including dedicated state-level offices in 29 states—serving hundreds of federal agencies, all 50 states, approximately 3,000 counties, 36,000 cities and towns, 12,600 school districts, and roughly 40,000 special districts, with clients including county auditors, treasurers, tax assessors, court judges, sheriffs, municipal department directors, and state/federal CIOs and agency heads. Tyler's strategy centers on organic growth supplemented by strategic acquisitions (such as its 2021 acquisition of NIC Inc.), an accelerating shift to cloud-based delivery via a strategic collaboration with Amazon Web Services, expansion into larger jurisdictions and new geographies, cross-selling within its existing client base, and growing its recurring revenue base, which totaled $1.8 billion (84% of total revenue) in 2024 with annualized recurring revenue of $1.86 billion.

The company competes against numerous local, regional, and national firms, including larger competitors such as Oracle, Infor, SAP, Workday, CentralSquare Technologies, Thomson Reuters, Motorola Solutions, Axon Enterprise, and Constellation Software, differentiating itself through breadth of integrated offerings, industry expertise, technological innovation, reputation, and value. As of December 31, 2024, Tyler employed approximately 7,400 team members, with about 94% based in 54 U.S. offices or remote U.S. locations and the remainder in Canada, the Philippines, or India, reflecting a workforce with average tenure of about eight years and low voluntary turnover of 8%.