TYLER TECHNOLOGIES INC - SaaS Valuation Profile TYL

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

The product suite covers nearly every government function. Enterprise ERP and financial management through Munis and Infinite Visions. Courts and justice through Odyssey, the leading court case management system used in 28 states. Public safety through New World Systems. Tax and appraisal through iasWorld, ProVal, and Orion. Planning and regulatory through Energov. School ERP and student information through Infinite Campus. Data and insights through Socrata, a platform for open government data. And Tyler Payments, a unified government payment platform.

The company invested heavily in moving to cloud-native SaaS delivery. Its Connected Communities vision enables data sharing between government agencies within and across jurisdictions. Cloud offerings reduce the IT burden on resource-strapped government organizations and enable faster deployment with continuous updates. Subscription and SaaS revenue now make up the majority of total revenue.

More than 15,000 local government offices use Tyler's software across all 50 states. Annual revenue is roughly $2.2 billion. Recurring revenue exceeds 80% of total. Blended gross margins are about 50%, though software-only margins are much higher. About 7,500 employees work at the company. Tyler dominates multiple government software categories with very little competition from the large horizontal enterprise vendors.