While the vast majority of gov tech providers don’t publicly release their financials, those that do — most notably, Texas-based Tyler Technologies — provide enough information that one can at least glimpse the general shape of trends to come. Tyler provides a range of products and services to all levels of the public sector — both state and national entities.
“We’re just generally seeing healthy budgets, healthy buying seasons, sort of just a really good, robust market,” Tyler CEO Lynn Moore recently told analysts.
Those trends, in turn, will help shape how state and local governments buy and deploy technology.
Tyler’s revenue increased 4.3 percent in Q4, and 16.2 percent for the full year, “a bit below forecasts,” according to a research note from Peter Heckmann, senior research analyst at D.A. Davidson. He said bookings were “flat” in Q4 but he maintained a “buy” rating on the company’s stock.
Tyler also reported $3.5 million in COVID-related revenue for the fourth quarter.
That’s down from $16.6 million from the same period last year, reflecting the diminishing of pandemic projects for gov tech suppliers. In fact, company executives on a conference call with investors said revenues from all of Tyler’s COVID-related initiatives have ended.
As that happens, federal money is flowing into the gov tech space, thanks largely to infrastructure improvement efforts backed by the Biden administration. That’s making gov tech suppliers — and many of their customers — optimistic as the mid-point of 2023 approaches.
Tyler signed 571 payment deals in all in 2022 — that’s good for more than $13 million in annual recurring revenue, along with cross-sell opportunities, according to Moore.
Industrywide hiring challenges also appear to be easing. At Tyler, employee turnover was decreasing in late 2022, company executives said, and approaching pre-COVID levels.
“It’s definitely mitigating from what we saw last year,” CFO Brian Miller told analysts, pointing to those layoffs and also to hiring freezes among tech companies in general. “And there’s less pressure than we saw last year on wage increases. Those (factors) are working in a positive manner for us.”
*This story is excerpted from a Government Technology story. Government Technology and Industry Insider — Texas are sister publications.
