Tyler Technologies: Is The Growth in Transactional Revenue & Payments Processing Here To Stay?

Tyler Technologies’ fourth-quarter results reflect a period of strong financial performance, characterized by significant growth and expansion across its key operational pillars. The company experienced 12.5% revenue increase, largely spurred by a 21.9% jump in subscription revenues, particularly within their SaaS offerings which saw close to 23% growth. This rise in subscription income underscores a strategic pivot towards cloud-based solutions, which remained a focal point in Tyler’s strategy, evident by accelerated SaaS adoption and a reduction in on-premise license revenues. The emphasis on cloud transitions is expected to peak between 2027 and 2028 as Tyler continues efforts to migrate the majority of its clients by 2030.