📈 Tyler Technologies (NYSE:TYL) is revolutionizing public sector technology. In Q3 2024, the company achieved a 10% revenue increase year-over-year, reaching $543.3 million. SaaS revenue soared 20% for the 15th consecutive quarter. Transitioning 108 on-premise clients to cloud-based SaaS boosted recurring revenue by 88%. By 2030, Tyler aims to transition over 20,000 clients, reinforcing its ambitious cloud-first strategy.
💡 Scalable cloud solutions are driving this impressive momentum. SaaS bookings surged 55% year-over-year, with contract values up 78%, reflecting robust demand. The public sector’s modernization remains crucial as governments upgrade legacy systems to embrace cloud technologies. Operational efficiencies pushed EBIT margins to 25%, progressing steadily toward the 2030 goal of exceeding 30%.
🚀 Tyler’s transactional business also thrived, with growth accelerating from 4% in Q2 to 15% in Q3. This surge highlights Tyler’s ability to replace outdated systems with cutting-edge solutions. Major wins, including a $35 million justice deal in Kentucky and contracts in Arizona and Florida, underline Tyler’s trusted role in modernizing public sector systems.
💸 Financially, Tyler set remarkable records. Free cash flow rose 55% year-over-year to $252.9 million, supported by strong fiscal management and innovation. With free cash flow margins forecasted at 21–23% and a solid balance sheet, Tyler is primed for sustainable growth, balancing reinvestment while delivering consistent returns.
🌐 With $1.85 billion in annual recurring revenue, Tyler Technologies is not just leading the future of SaaS but defining it. Its innovative approach, strategic vision, and commitment to efficiency make it a standout opportunity for investors seeking growth and stability in today’s evolving market.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.