Sector: Information Technology | Focus: Application Software
HQ: Plano, Texas
Financial Risks
Tyler Technologies faces risks related to client budget changes impacting IT spending, cyberattacks, security breaches, integration challenges of acquired businesses, reliance on internet infrastructure, potential project delays, economic downturns, new product development challenges, industry competition, personnel loss, and regulatory compliance. The company also has ongoing litigation with a client.
Financial Upside
Tyler Technologies anticipates revenue growth, primarily from subscriptions, driven by a shift to SaaS arrangements and transaction-based fees. A new $700 million credit agreement provides significant borrowing capacity. Increased backlog and a growing employee base suggest potential for future expansion. Rental income from third-party tenants is also a revenue stream.
