An agreement has been forged between Tyler Technologies, Inc. (TYL) and the Commonwealth of Kentucky to introduce the Cannabis Licensing solution, facilitating oversight of the state’s medical cannabis initiative.
Tyler’s Role in Kentucky’s Medical Cannabis Program
In March 2023, the approval of Senate Bill 47 opened the doors for the legalization of medical cannabis in Kentucky under strict guidelines. Tyler’s software will play a pivotal role in the implementation of the Kentucky Medical Cannabis Program, scheduled to launch on Jan 1, 2025. The Cabinet for Health and Family Services (“CHFS”) will utilize Tyler’s solution to streamline the licensing and registration procedures for patients, caregivers, and businesses, ensuring compliance with regulatory protocols.
Cloud Adoption Boosting Tyler’s Growth
Tyler has been capitalizing on the transition of the public sector towards cloud-based systems, moving away from outdated on-premise solutions. By continuously enhancing its core software applications and expanding its product offerings, Tyler remains aligned with evolving customer needs and technological advancements.
With an expansive market consisting of 3,000 counties, 36,000 municipalities, and numerous schools nationwide, Tyler is well-positioned to tap into diverse opportunities. From property assessment to healthcare, government agencies are seeking IT solutions for various functions while grappling with challenges in retaining IT talent amidst competitive job markets.
In the latest financial results for the fourth quarter of 2023, Tyler witnessed a 6.3% year-over-year revenue increase to $480.9 million. The quarter-end backlog stood at $2.03 billion, marking a 7.6% rise compared to the previous year. Bookings surged by 21.3% year over year to $563 million.
Nevertheless, Tyler faces obstacles such as procurement delays and extended sales cycles in the face of economic uncertainties. Additionally, budget restrictions may impact short-term growth prospects for the company and its clients.
Zacks Rank & Promising Tech Stocks
Currently holding a Zacks Rank #3 (Hold), shares of TYL have recorded a 4.4% year-to-date (YTD) increase. Noteworthy stocks in the broader technology sector include CrowdStrike Holdings (CRWD), Amazon.com (AMZN), and Meta Platforms (META), all boasting a Zacks Rank #1 (Strong Buy) at present. CrowdStrike’s fiscal 2024 earnings estimate has risen to $2.95 per share, indicating a 91.6% year-over-year growth.
Amazon’s 2024 earnings estimate stands at $4.06 per share, reflecting a 40% increase year-over-year. Meanwhile, Meta’s 2024 earnings projection of $19.94 per share signifies a 34.1% uptick from 2023. Each of these tech giants has shown considerable YTD stock price growth.