Tyler Technologies, a major IT service provider to the public sector, missed Wall Street estimates for its third-quarter revenue, Reuters reported on Wednesday. The company posted $494.7 million in revenue for the third quarter ending on Sept. 30, which fell below analysts’ estimates of $495.9 million, according to LSEG data.
Based in Plano, Texas, Tyler is facing steep competition from larger firms — including Oracle, Motorola Solutions and Reuters — as the U.S. economy grows increasingly unpredictable.
“Our third quarter earnings and cash flow surpassed expectations and reflect a continuation of solid execution on key operational initiatives,” Lynn Moore, Tyler’s president and chief executive officer, said in a statement to the Financial Times.
The U.S. government’s IT spending is expected to increase by 20% over the next three years, according to research and advisory firm Gartner’s 2023 forecast, with state and local government application and software spending expected to grow globally from $27 billion to $41.8 billion by 2026.
Tyler now expects annual revenue in the range of $1.942 billion to $1.962 billion, compared with prior estimates of between $1.940 billion and $1.965 billion. The company raised its annual adjusted profit per share to a range of $7.66 to $7.80, from its prior estimate of between $7.60 and $7.75.
Tyler Technologies held a conference call Thursday to discuss the company’s third-quarter results, including its recent acquisition of Computer Systems Innovations for approximately $36 million, the latest in a string of acquisitions.