Tyler Technologies (TYL)

When I first ventured into writing this blog, I had the preconceived idea that subscribers would pay to obtain relevant information from companies that cannot always be found easily. Over time, I realized that, while that added value is indeed there, many subscribers use the blog as a tool to be more efficient and save time. If we do some quick math and assume that I spend between 75 and 100 hours on each company I write about, I'm charging around €0.17 per hour of research, which doesn't seem like a bad deal for subscribers. It’s not a bad deal for me, either, because I can sell my research to an unlimited number of subscribers with little to no incremental cost. Tyler Technologies, which provides a wide range of vertical software solutions to the public sector, shares some of these characteristics.

Tyler’s main customers are local governments (cities, counties, school districts, local agencies…) and provides services that are essential to the development of modern societies: from public services billing, tax collection, marriage and birth registration, human resources, licensing and permitting, to the day-to-day management of police, ambulance, fire and court services. Software is critical to its customer base, and Tyler's case management system can attest to that. With this software, court work can be performed remotely, and traditional courts are transformed into virtual environments that are much safer and, above all, more efficient, as manual processes become nonexistent. Without this tool, courts would have to increase the space dedicated to filing documents that must be preserved for years and hire more staff, or else court proceedings would take so long that the service would collapse. Customers are able to cut costs through process automation, and they usually recover the cost of the software over the 3 to 5 years a contract usually lasts. At the end of the contract, customers often renew for as many more years.