Tyler Technologies TYL recently announced that it has completed the integration of its CAVU eLicense solution between the Office of the State Bank Commissioner (“OSBC”) of Kansas and the Nationwide Multistate Licensing System and Registry (“NMLS”).
Tyler revealed that the integration of the CAVU eLicense solution has been done in two phases. The first phase of integration allowed the CAVU eLicense system to automatically bring the daily changes from NMLS related to Kansas. With this, OSBC staff no longer need to make these changes to their records manually.
In the second phase of integration, the CAVU eLicense system brings payment information from NMLS. Licensees can pay through NMLS for renewals. With the second phase of integration, payment information is now updated to the CAVU eLicense system through a streamlined and automated process. The integration is saving several hours of manual work and reducing tedious data entry for OSBC staff while improving data accuracy.
Digital Transformation Aids Tyler’s Product Demand
It is worth mentioning that Tyler has been benefiting from the public sector’s ongoing transition from on-premise and outdated systems to scalable cloud-based systems. TYL has been consistently enhancing its core software applications and expanding complementary product and service portfolios to cater to the changing needs of customers while keeping pace with technological advancements.
Tyler Technologies, Inc. Price and Consensus
Tyler Technologies, Inc. price-consensus-chart | Tyler Technologies, Inc. Quote
TYL has been pursuing strategic takeovers to broaden its product and service offerings, enter new markets related to local governments, attract clients and expand geographically. Last month, the company revealed that it has acquired a Massachusetts-based analytics company offering exemplary real estate appraisals and assessments for states, counties and municipalities — Safeground Analytics.
With this buyout, Tyler intends to accelerate its appraisal services businesses by bringing a team of experienced appraisers, analysts, statisticians, economists, computer scientists and assessors from Safeground Analytics. The analytics company will offer TYL residential and commercial reassessments and deliver litigation support, expert witness testimony solutions for property appraisal matters, and auditing and monitoring services.
In May 2022, Tyler acquired Quatred, a systems integrator and solution provider that assists clients by implementing advanced touchless technologies, including barcoding. In February 2022, the company acquired U.S. eDirect, a market-leading provider of technology solutions for campground and outdoor recreation management. However, frequent acquisitions pose significant integration risks for the company.
Furthermore, Tyler’s near-term growth prospects are likely to be affected by delays in procurement processes and lengthening sales cycles amid ongoing macroeconomic uncertainties. Also, many customers are expected to face budget pressures in the near term.
Additionally, 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 & Stocks to Consider
Currently, Tyler carries a Zacks Rank #3 (Hold). Shares of TYL have increased 11.4% year to date (YTD).
Some better-ranked stocks in the broader technology sector are Wix.com WIX, Aspen Technology AZPN and Fortinet FTNT, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward by 7 cents to 23 cents per share in the past 30 days. For 2023, earnings estimates have been revised northward by 7 cents to $1.49 per share in the past 30 days.
Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 29.9% YTD.
The Zacks Consensus Estimate for Aspen Technology's third-quarter fiscal 2023 earnings has remained unchanged at $1.66 per share in the past 60 days. For fiscal 2023, earnings estimates have been revised northward by 2 cents to $7.10 per share in the past 60 days.
Aspen Technology’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 5.2%. Shares of AZPN have rallied 12% YTD.
The Zacks Consensus Estimate for Fortinet's first-quarter 2023 earnings has been revised a penny northward to 28 cents per share over the past 60 days. For 2023, earnings estimates have moved upward by a penny to $1.41 per share in the past 30 days.
Fortinet's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 15.8%. Shares of FTNT have soared 35.1% YTD.
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