Tyler Technologies Inc – Trending Technology Stocks
A moat business is one where clients stick to the business for a long time and the entry barriers for the competition are significant. Think about government offices around the country. They need software solutions to run their systems. Whether it is keeping proper records or facilitating tax payments or even allowing people like us to access information, the backbone of the entire operation is technology-based. One company is a leader when it comes to providing schools, state and local governments, and other public sector institutions with their software requirements. The name of the company is Tyler Technologies and it is among the trending software stocks right now. One of the reasons it has been in an uptrend for more than a decade is the strength of its business. The demand from the public institutions is also stable and somewhat recession-resistant. In fact, the stock only fell some 20-odd percent during the pandemic-triggered crash of March 2020.
Second-Quarter Earnings Numbers Announced By Tyler Technologies
On 28th July 2021, Tyler Technologies released its Q22021 earnings results. Total revenues jumped from $271 million in Q22020 to $404 million. The biggest revenue growth came from the subscription segment with a jump of more than 100% year on year. However, selling, general, and administrative expenses were significantly higher and, therefore, net income was down about 50% from $53 million in Q22020 to $25 million. Earnings per share on a diluted basis followed the trend of net income as it fell from $1.3 per share to $0.6 per share. The GAAP gross profit margin fell from 48% to about 45%. The company management was bullish on the future outlook as it informed that market activity levels were approaching the pre-pandemic levels. Tyler Technologies is one of the trending technology stocks that investors can further examine.
Tyler Technologies’ stock is up from $28 in October 2011 to $486 in October 2021. The 10-year growth has been significant. Over the preceding 5 years as well, the stock has more than doubled. Such long-term trending stocks are usually good candidates for buying on dips.