About Tyler Technologies

Tyler Technologies, Inc. (Tyler) operates as a major provider of integrated information management solutions and services for the public sector. The company’s solutions empower local, state, and federal government entities to create smarter, safer, and stronger communities. The company offers the broadest range of software solutions and services designed for every level of public sector government agency. The company’s solutions deliver mission-critical technology to support the essential functions of government, including public safety, justice, public health, taxation and budgeting, infrastructure and land use, outdoor recreation, utility and civic services, regulation, K-12 education, and social services. The company provides both the back-office systems-of-record that serve the operational needs of specific government agencies, as well as platform technology solutions that are designed to integrate with its back-office solutions and be deployed and connected across many agencies. Examples of transformative platform technologies include the company’s market-leading payments platform, data platform, low-code application development platform, and digital resident experience solutions. The company maintains deep, long-term relationships with state and local government agencies, including dedicated state-level offices in the 28 states in which it has enterprise contracts. The company’s professional information technology (IT) services include cloud-based software deployment, data conversion, and training. The company also provides continuing client support services to ensure product performance and reliability, providing it with long-term client relationships and a significant base of recurring revenue. Products and Services The company provides a comprehensive and flexible suite of products and services that addresses the information technology needs of cities, counties, states, schools, federal agencies, and other government entities. The company designs, develops, markets, and supports a broad range of software solutions to serve mission-critical back-office functions of the public sector. Many of the company’s back-office software applications integrate with its transformative platform solutions, such as its unified payments platform, data and insights platform, and digital public engagement solutions that allow for real-time public access to a variety of information or that allow the public to transact business with governments online. Each of the company’s core software solutions consists of several fully integrated applications. In some of the product areas, such as financial management and education and property appraisal and tax, it offers multiple solutions designed to meet the needs of different sized governments. A description of the company’s primary suites of products and services follows: Platform and Transformative Technology Solutions The company’s platform and transformative technology solutions create the foundation for government innovation and enhance its clients’ ability to connect with constituents, conduct business, collect and disburse funds, safeguard systems, and leverage data to its fullest. Many of these solutions are integrated into the company’s products, while others can be leveraged as add-on solutions. The company’s platform & transformative technology solutions include: Cybersecurity: Augments government agencies’ resources with access to advanced expertise for program design, 24/7 threat detection and response, customized employee training, vulnerability testing, and more. Data and Insights: Allows agencies to transform data into insights about financial, operational, and strategic outcomes by making it easier to surface meaningful data for informing government decisions and citizens. Digital Solutions: Provides a seamless cross-department experience so that agencies can deliver a unified citizen experience and achieve better outcomes while helping workers and policymakers share, communicate, and leverage data more effectively. Payments: As the leading platform for public sector payment processes nearly half a billion transactions annually and covers the entire payments life cycle, including billing, presentment, merchant onboarding, collections, reconciliation, and disbursements. Platform Technologies: A low-code application development platform purpose-built for the public sector. Enables government workers to quickly build solutions and applications that suit their needs. Outdoor Recreation: Designed specifically for local, state, and federal outdoor agencies, the company’s solutions encompass campsite reservations, activity registrations, licensing sales and renewals, and real-time data for conservation and park management. Public Administration Solutions The company’s public administration solutions connect the dots between departments, agencies, municipalities, and states to deliver the core business functions of the public sector. By making it easier to manage the business side of the public sector, agencies can focus on delivering the resources and services required to make their community a place where people want to live. The company’s public administration solutions include: Civic Services: Business management and community development solutions manage permitting, enforcement, health and safety inspections, compliance, maintenance and work orders, 311 requests, and more. ERP: Integrates core financial applications with human resources, revenue management, tax billing, utilities, asset management, and payment processing. Property and Recording: Manages all aspects of the property tax life cycle, including appraisal services, valuation, tax billing and collections, assessment administration, and land and official records. Regulatory: Permitting, licensing and regulatory management help local, state, and federal government agencies and departments of any size simplify every aspect of regulatory compliance. Courts and Public Safety Solutions The company’s integrated courts and public safety solutions are used at the municipal, county, state, and federal levels to help courts, prosecutors, defenders, jails, sheriff’s offices, police departments, and probation officers keep their communities safe. The company’s courts and public safety solutions include: Corrections: Connects courts, public safety, and supervision agencies to ensure safer and more efficient operations for correctional facilities. Courts and Justice: Provides case management and shares data with all justice partners by connecting courts, prosecutors, public defenders, and the filing community. Public Safety: Integrated public safety solutions designed to comply with state and federal reporting mandates, provide real-time information and instant data sharing across jurisdictions, and promote intelligence-led responses so that help arrives faster and more prepared. K-12 Education Solutions The company’s integrated school solutions enable districts to operate as a single system across campuses and functions. By bringing data together and making it accessible as needed to administrators, teachers, students, bus drivers, and parents, the company is able to improve everyone’s ability to support the educational journey. The company’s K–12 Education solutions include: School ERP: Manages K-12 schools’ most essential business functions by integrating financial, budgeting, and procurement data. The company’s suite of human resource management tools helps schools efficiently manage payroll and employee information and hire and retain qualified teachers, staff, and substitutes. Student Transportation: Manages every aspect of the student transportation operation with integrated software and telematic hardware solutions to help ensure operational efficiency and cost-effectiveness. Health and Human Services Solutions The company’s integrated solutions enable health and human service agencies to leverage data and optimize operations to better maintain the well-being of communities. The company’s health and human services solutions include: Environmental Health: Streamlines the process of issuing permits, performing health inspections, running reports, and investigating complaints. Disability & Benefits: Helps programs and agencies administer benefits and makes it easier to manage the complexity of services like medical cannabis regulation, veterans’ benefits, vocational rehabilitation, workers’ compensation, and more. Revenues The company derives its revenues from four primary sources, such as subscription-based services; maintenance and support; professional services; and software licenses and royalties. Subscription-Based Services Subscriptions revenue consists of revenues derived from the company’s SaaS arrangements and transactions-based fees. The company is able to provide the majority of its software products through its SaaS model. The majority of the company’s SaaS or hosting arrangements include additional professional services, as well as maintenance and support services. In certain arrangements, the client may also acquire a license to the software. Other sources of subscriptions revenue are derived from transaction-based fees primarily related to digital government services, online payment solutions, which are sometimes offered with the assistance of third-party vendors, and online dispute resolution solutions. Maintenance and Support Support is provided to clients over the phone or via the Web through help desks staffed by the company’s client support representatives. The company maintains its clients’ software largely through releases that contain improvements and incremental additions of features and functionality, along with updates necessary because of legislative or regulatory changes. Nearly all of the company’s on-premises software clients contract with it for maintenance and support, which provides it with a significant source of recurring revenue. The company generally provides maintenance and support for its on-premises clients under annual, or in some cases, multi-year contracts, with a typical fee based on a percentage of the software product’s license fee. Professional Services The company provides a variety of professional services to clients who utilize its software products. The company’s clients contract with it for installation, training, and data conversion services in connection with their implementation of Tyler’s software solutions, whether through a SaaS arrangement or on-premise software license. The complete implementation process for a typical system includes planning, design, data conversion, set-up and testing. At the culmination of the implementation process, a data implementation team is generally onsite at the client’s facility or available via remote video conferencing to help ensure the smooth go-live with the new system. Implementation fees are charged separately to clients on either a fixed-fee or hourly charge basis, depending on the contract. Both in connection with the installation of new systems and on an ongoing basis, the company provides extensive training services and programs related to its products and services. Training can be provided in the company’s training centers, onsite at clients’ locations, at meetings and conferences, or remotely, and can be customized to meet clients’ requirements. The vast majority of the company’s clients contract with it for training services, both to improve their employees’ proficiency and productivity and to fully utilize the functionality of its systems. Software Licenses and Royalties Many of the company’s software arrangements involve off-the-shelf software. The company recognizes the revenue allocable to off-the-shelf software licenses and specified upgrades at a point in time when control of the software license transfers to the customer, unless the software is not considered distinct. The company considers off-the-shelf software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the customer for the customer’s purpose upon installation, and remaining services, such as training are not considered highly interdependent or interrelated to the product's functionality. The company recognizes royalty revenue when the sale occurs under the terms of its third-party royalty arrangements. The company’s third-party royalties are recognized on an estimated basis and adjusted if needed, when it receives notice of amounts it is entitled to receive. The company typically receives notice of royalty revenue it is entitled to and billed on a quarterly basis in the quarter immediately following the royalty reporting period and adjustments have not been significant. Strategy The key components of the company’s business strategy are to provide high quality, value–added products and services to its clients; continue to expand its product and service offerings; accelerate its move to the cloud; expand its client base; expand its existing client relationships; pursue strategic acquisitions; and establish strategic alliances. The company has a strategic collaboration agreement with Amazon Web Services (AWS) for cloud hosting services, which brings together Tyler, the nation's largest software company exclusively focused on the public sector, and AWS, the broadest and deepest cloud platform. Specifically, the agreement with AWS provides the framework for development, training and collaboration in order to support next-generation applications that have the scalability, resiliency, and security AWS offers. AWS is assisting the company in accelerating innovation and the development of strategic initiatives. These initiatives will bring the most advanced cloud-native services to Tyler clients, to help improve the flow of information and provide a better experience for state, local, and federal governments. Sales, Marketing and Clients The company markets its products and services primarily through direct sales and marketing personnel located throughout the United States. Other in-house sales staff focus on add-on sales, professional services and support. For certain products the company also utilizes a partner network for both sales and professional services, primarily in the state and federal markets. Sales of new systems are typically generated from referrals from other government offices or departments within a county or municipality, referrals from other local governments, relationships established between sales representatives and county or local officials, contacts at trade shows, direct mailings, and direct contact from prospects already familiar with the company. The company is active in numerous national, state, county, and local government associations and participate in annual meetings, trade shows, and educational events. Clients consist primarily of federal, state, county and municipal agencies, school districts and other local government offices. In counties, clients include the auditor, treasurer, tax assessor/collector, county clerk, district clerk, county and district court judges, probation officers, sheriff, and county appraiser. At municipal government sites, clients include directors from various departments, including administration, finance, utilities, public works, code enforcement, personnel, purchasing, taxation, municipal court and police. At the state and federal levels, clients include Chief Information Officers and agency heads. Contracts for software products and services are generally implemented over periods of three months to one year, although some complex implementations may span multiple years, with annually renewing maintenance and support update agreements thereafter. Competition The company competes with national firms, including Oracle Corporation, Infor, SAP AG, Workday, Inc., CentralSquare Technologies, Thomson Reuters Corporation, Motorola Solutions, Inc., Axon Enterprise, Inc., and Constellation Software, Inc. Seasonality Transaction-based fees are generally the result of multi-year contracts with the company’s clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. Transaction-based fees are historically highest in the second quarter, which coincides with peak outdoor recreation seasons and statutory filing deadlines in many jurisdictions, and lowest in the fourth quarter (year ended December 31, 2023) due to fewer business days and lower transaction volumes around holidays. Research and Development Costs The company expensed research and development expense of $109.6 million in 2023. History Tyler Technologies, Inc. was founded in 1966.