TYLER TECHNOLOGIES INC - SaaS Valuation Profile TYL

Tyler Technologies, Inc. is the largest pure-play software company serving the public sector in the United States, providing integrated technology solutions for state governments, local governments, counties, cities, schools, courts, and federal agencies. Founded in 1966 and headquartered in Plano, Texas, Tyler has assembled the most comprehensive portfolio of government technology software in the industry through decades of organic development and over 40 strategic acquisitions.

Tyler's product suite covers virtually every function of government operations, organized into major solution areas: Enterprise ERP and financial management (Munis, Infinite Visions), courts and justice (Odyssey, a market-leading court case management system used by courts in 28 states), public safety (New World Systems), tax and appraisal (iasWorld, ProVal, Orion), planning and regulatory (Energov), school ERP and student information (Infinite Campus), data and insights (Socrata, a data platform for open government data), and payments (Tyler Payments, a unified government payment platform).

The company has invested heavily in transitioning its solutions to cloud-native SaaS delivery, with its Connected Communities vision enabling seamless data sharing between government agencies within and across jurisdictions. Tyler's cloud offerings reduce the IT burden on resource-constrained government organizations and enable faster deployment and continuous updates. Subscription and SaaS revenue have become the majority of total revenue.

Tyler serves more than 15,000 local government offices and related entities across all 50 states, plus Canadian and international customers. The company generates approximately $2.2 billion in annual revenue, with recurring revenue exceeding 80% of total. Gross margins are approximately 50% (blended across software and services), with software-only margins significantly higher. Tyler employs approximately 7,500 people and is the dominant vendor in multiple government software categories with minimal competition from large horizontal enterprise vendors.