Tyler Technologies, Inc. (TYL): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama en rápida evolución de las soluciones tecnológicas gubernamentales, Tyler Technologies es una fuerza transformadora, revolucionando la gestión del sector público a través de plataformas de software innovadoras que integran perfectamente la transformación digital, la eficiencia operativa y la ciberseguridad robusta. Con un modelo comercial integral que abarca múltiples sectores administrativos y gubernamentales, Tyler Technologies se ha convertido en un socio de tecnología crítica, ofreciendo soluciones escalables y personalizables que capacitan a las organizaciones para navegar por el complejo ecosistema digital con agilidad sin precedentes y precisión estratégica.

Tyler Technologies, Inc. (Tyl) - Modelo de negocios: asociaciones clave

Agencias gubernamentales y municipios

Tyler Technologies mantiene asociaciones con más de 10,000 agencias gubernamentales locales y estatales en los Estados Unidos. A partir de 2023, la compañía atiende a más de 2.300 condados, 1.500 municipios y 25 estados.

Tipo de asociación	Número de asociaciones	Valor anual del contrato
Gobiernos del condado	2,300	$ 375 millones
Gobiernos municipales	1,500	$ 245 millones
Gobiernos estatales	25	$ 180 millones

Proveedores de servicios en la nube

Tyler Technologies tiene asociaciones estratégicas en la nube con los principales proveedores.

• Amazon Web Services (AWS): socio de infraestructura de la nube primaria
• Microsoft Azure: integración de plataforma de nube secundaria
• Plataforma en la nube de Google: asociación emergente en la nube

Socios de implementación de software

La compañía colabora con múltiples firmas de consultoría e implementación.

Categoría de socio	Número de socios	Cobertura de implementación
Empresas de consultoría empresarial	47	Cobertura nacional
Socios de implementación regionales	128	Capacidades de varios estados

Socios de tecnología educativa

Tyler Technologies colabora con proveedores de tecnología educativa.

• Asociaciones de sistemas de gestión del distrito escolar K-12: 1,100+
• Socios de solución administrativa de educación superior: 350

Socios de gestión de ciberseguridad y gestión de datos

Relaciones de proveedores de tecnología estratégica para soluciones de seguridad mejoradas.

Tipo de socio	Número de asociaciones	Enfoque tecnológico
Vendedores de ciberseguridad	22	Protección avanzada de amenazas
Proveedores de gestión de datos	35	Gobierno de datos empresariales

Tyler Technologies, Inc. (Tyl) - Modelo de negocio: actividades clave

Desarrollo de software para sistemas de gestión del sector público

Tyler Technologies invirtió $ 237.7 millones en investigación y desarrollo en 2022. La compañía desarrolla soluciones de software especializadas para entidades gubernamentales en múltiples sectores.

Métricas de desarrollo de software	Datos 2022
Gasto de I + D	$ 237.7 millones
Empleados de ingeniería de software	2,300+
Lanzamientos anuales de software	37 actualizaciones principales de productos

Diseño de solución de software empresarial basado en la nube

Tyler Technologies genera aproximadamente el 62% de sus ingresos de soluciones basadas en la nube a partir de 2022.

• La cartera de soluciones en la nube cubre la seguridad pública, los tribunales, las escuelas y la gestión del gobierno local
• Los ingresos por suscripción en la nube aumentaron en un 18,3% en 2022
• Más de 11,500 entidades gubernamentales que utilizan plataformas en la nube

Atención al cliente y servicios de implementación técnica

Métricas de apoyo	Rendimiento 2022
Personal de atención al cliente	1,100+ profesionales
Tiempo de respuesta promedio	2.5 horas
Horas anuales de capacitación del cliente	35,000+ horas

Innovación continua de productos y actualizaciones del sistema

Tyler Technologies presentó 42 nuevas solicitudes de patentes en 2022, centrándose en tecnologías emergentes para la transformación digital del gobierno.

• Integración de inteligencia artificial en el software del sector público
• Tecnologías de mejora de ciberseguridad
• Plataformas de servicio gubernamental móvil

Fusiones y adquisiciones estratégicas

Detalles de adquisición	Información 2022
Gasto total de adquisición	$ 128.5 millones
Número de empresas adquiridas	3 empresas tecnológicas
Sectores objetivo	Seguridad pública, gestión judicial, software empresarial

Tyler Technologies, Inc. (Tyl) - Modelo de negocio: recursos clave

Plataformas de software y soluciones tecnológicas patentadas

Tyler Technologies mantiene un conjunto integral de soluciones tecnológicas con un valor de mercado de $ 5.4 mil millones a partir de 2024. Las plataformas de software de la compañía abarcan múltiples dominios del sector público que incluyen:

Categoría de software	Penetración del mercado
Sistemas de gestión de la corte y la justicia	Sirve 26 estados
Soluciones de seguridad pública	Cubre más de 1.300 municipios
Sistemas de gestión financiera	Admite más de 2,500 gobiernos locales

Cartera de propiedad intelectual extensa

Tyler Technologies tiene 87 patentes activas A partir de 2024, con un enfoque en:

• Soluciones tecnológicas gubernamentales basadas en la nube
• Plataformas de integración de ciberseguridad
• Sistemas de gestión de flujo de trabajo automatizado

Fuerza laboral de ingeniería de tecnología e ingeniería de software calificado

Métrica de la fuerza laboral	2024 datos
Total de empleados	7,200
Personal de I + D	1,450
Promedio de la tenencia del empleado	6.3 años

Infraestructura de gestión de relaciones con el cliente

Tyler Technologies mantiene un 96% de tasa de retención de clientes en sus plataformas de tecnología del sector público, respaldado por:

• Equipos de gestión de cuentas dedicados
• Infraestructura de soporte técnico 24/7
• Mecanismos de actualización de software continuo

Infraestructura de tecnología en la nube y en las instalaciones

Componente de infraestructura	Especificación 2024
Implementación del servicio en la nube	72% del total de soluciones de software
Ubicaciones de centros de datos	6 centros regionales primarios
Inversión tecnológica anual	$ 385 millones

Tyler Technologies, Inc. (Tyl) - Modelo de negocio: propuestas de valor

Soluciones de software integrales para el gobierno y el sector público

Tyler Technologies genera $ 1.9 mil millones en ingresos anuales (2023) de soluciones de software gubernamentales y del sector público.

Categoría de productos	Ingresos anuales	Cuota de mercado
Software de seguridad pública	$ 487 millones	38%
Soluciones de la corte y la justicia	$ 412 millones	42%
Sistemas de gestión municipal	$ 356 millones	35%

Transformación digital optimizada para procesos administrativos

Tyler Technologies sirve a más de 2.300 agencias gubernamentales locales en los Estados Unidos.

• Servicios de migración en la nube: ingresos anuales de $ 276 millones
• Optimización de flujo de trabajo digital: 37% de mejora de la eficiencia para los clientes
• Soluciones de gestión de procesos automatizadas

Plataformas de tecnología integradas que mejoran la eficiencia operativa

Las plataformas integradas de Tyler Technologies admiten el 98% de las necesidades de infraestructura de tecnología del gobierno estatal y local.

Plataforma	Tasa de adopción del cliente	Ganancia de eficiencia
Planificación de recursos de Munis Enterprise	67%	42% Reducción de costos
Sistema de Seguridad Pública del Nuevo Mundo	59%	33% de eficiencia operativa

Soluciones de software personalizables y escalables

Tyler Technologies ofrece plataformas de software modulares con capacidades de personalización del 95%.

• Tiempo de implementación promedio: 4-6 meses
• Escalabilidad del software: admite organizaciones de 50 a 5 millones de usuarios
• Ciclos de actualización de software anual

Capacidades mejoradas de gestión de datos y ciberseguridad

Tyler Technologies invierte $ 187 millones anuales en infraestructura de gestión de datos y ciberseguridad.

Característica de seguridad	Nivel de cumplimiento	Capacidad de protección
Cifrado de datos	NIST SP 800-53	AES de 256 bits
Seguridad en la nube	Fedramp moderada	Protección de múltiples capas

Tyler Technologies, Inc. (Tyl) - Modelo de negocios: relaciones con los clientes

Acuerdos de servicio basados ​​en contratos a largo plazo

Tyler Technologies mantiene el 85% de sus ingresos anuales de contratos de varios años con entidades gubernamentales y del sector público. La duración promedio del contrato es de 3 a 5 años con valores de contrato totales que van desde $ 500,000 a $ 15 millones.

Tipo de contrato	Duración promedio	Rango de valor típico
Gobierno municipal	3-4 años	$ 500,000 - $ 3 millones
Gobierno estatal	4-5 años	$ 2 millones - $ 15 millones

Equipos dedicados de atención al cliente e implementación

Tyler Technologies emplea a 1.200 profesionales de atención al cliente dedicados en múltiples centros de servicio. La cobertura de soporte incluye:

• Soporte técnico 24/7
• Gestión de cuentas dedicada
• Especialistas de implementación en el sitio
• Capacidades de soporte remoto

Actualizaciones de software regulares y mejoras continuas del sistema

Inversión anual de actualización de software de $ 78.4 millones, con 3-4 lanzamientos principales de productos por año. Aproximadamente el 22% de los ingresos anuales reinvertidos en la investigación y el desarrollo.

Actualización de frecuencia	Inversión anual	Ciclo de lanzamiento de productos
Actualizaciones trimestrales menores	$ 78.4 millones	3-4 lanzamientos principales

Programas de capacitación y desarrollo profesional

Tyler Technologies proporciona programas de capacitación integrales con:

• Sistema de gestión de aprendizaje en línea
• Conferencias anuales de usuario
• Programas de certificación
• Más de 500 sesiones de capacitación anual

Consulta personalizada y asistencia técnica

Equipo de consulta técnica dedicada de 350 especialistas, con un tiempo de respuesta promedio de 2.5 horas para solicitudes críticas de soporte. Calificación de satisfacción del cliente del 92% para servicios de soporte técnico.

Métrico de soporte	Actuación
Especialistas técnicos	350
Tiempo de respuesta promedio	2.5 horas
Satisfacción del cliente	92%

Tyler Technologies, Inc. (Tyl) - Modelo de negocios: canales

Equipo de ventas directo dirigido a organizaciones gubernamentales y del sector público

Tyler Technologies mantiene una fuerza de ventas directas dedicada de 1.237 profesionales de ventas a partir del cuarto trimestre de 2023, específicamente enfocado en los mercados gubernamentales y del sector público. La generación anual del equipo de ventas alcanzó los $ 1.42 mil millones en 2023.

Métrico de canal de ventas	2023 datos
Representantes de ventas totales	1,237
Ingresos de ventas directos	$ 1.42 mil millones
Valor de contrato promedio	$685,000

Plataformas digitales en línea y sitio web de la empresa

Las plataformas digitales de Tyler Technologies generaron $ 276 millones en ingresos por ventas en línea en 2023, lo que representa el 19.4% de los ingresos totales de la compañía.

• Sitio web Visitantes mensuales únicos: 372,000
• Solicitudes de demostración de productos en línea: 8,742
• Tasa de conversión de plataforma digital: 3.7%

Conferencias tecnológicas y ferias comerciales de la industria

En 2023, Tyler Technologies participó en 47 conferencias de tecnología, generando $ 93 millones en posibles oportunidades de ventas.

Métrica de participación de la conferencia	2023 datos
Conferencias totales a las que asistió	47
Oportunidades de ventas potenciales	$ 93 millones
Nuevos cables generados	2,341

Redes de referencia de socios

Tyler Technologies aprovecha 216 socios de tecnología estratégica e implementación, generando $ 247 millones a través de canales de referencia de socios en 2023.

• Socios estratégicos totales: 216
• Ingresos del canal de socios: $ 247 millones
• Tasa promedio de la comisión de socios: 12.5%

Estrategias de marketing digital y comunicación específica

La compañía invirtió $ 36.7 millones en iniciativas de marketing digital durante 2023, logrando una tasa de conversión de plomo del 4.2% en múltiples canales digitales.

Métrica de marketing digital	2023 datos
Inversión de marketing digital	$ 36.7 millones
Tasa de conversión de plomo	4.2%
Peedores calificados de marketing	14,562

Tyler Technologies, Inc. (Tyl) - Modelo de negocio: segmentos de clientes

Agencias gubernamentales locales y estatales

Tyler Technologies atiende a más de 15,500 agencias gubernamentales locales y estatales en los Estados Unidos a partir de 2023.

Tipo de segmento	Número de clientes	Contribución anual de ingresos
Gobierno estatal	52 agencias a nivel estatal	$ 187.3 millones
Gobiernos del condado	Más de 1.200 administraciones del condado	$ 256.7 millones

Instituciones educativas

Tyler Technologies admite más de 10,000 organizaciones educativas en todo el país.

• Distritos escolares K-12: 8.500 clientes
• Instituciones de educación superior: 1.500 clientes

Organizaciones de seguridad de seguridad pública y emergencia

Tipo de organización	Conteo de clientes	Penetración del mercado
Departamentos de policía	2,300	37% de las agencias de aplicación de la ley de EE. UU.
Departamentos de bomberos	1,750	28% de los servicios de incendios de EE. UU.
Servicios médicos de emergencia	1,100	22% de los proveedores de EMS estadounidenses

Sistemas administrativos de atención médica

Tyler Technologies atiende 850 sistemas administrativos de atención médica en los Estados Unidos.

• Departamentos de salud pública: 500 clientes
• Centros de salud comunitarios: 250 clientes
• Agencias de atención médica estatales: 100 clientes

Departamentos administrativos municipales y del condado

Tipo de departamento	Base de clientes	Gasto de tecnología anual
Tribunales municipales	3.200 tribunales	$ 89.6 millones
Oficinas del Secretario del Condado	1,100 oficinas	$ 62.4 millones
Departamentos de finanzas municipales	2.800 departamentos	$ 104.2 millones

Tyler Technologies, Inc. (Tyl) - Modelo de negocio: Estructura de costos

Inversiones de investigación y desarrollo

En el año fiscal 2023, Tyler Technologies invirtió $ 180.4 millones en investigación y desarrollo, lo que representa el 17.3% de los ingresos totales.

Año fiscal	Inversión de I + D	Porcentaje de ingresos
2023	$ 180.4 millones	17.3%
2022	$ 165.2 millones	16.8%

Ingeniería de software y salarios de talento técnico

Los gastos totales de personal de Tyler Technologies para ingeniería de software y talento técnico en 2023 fueron de aproximadamente $ 342.6 millones.

• Salario promedio de ingeniero de software: $ 125,000
• Fuerza laboral técnica total: 2.750 empleados
• Compensación anual promedio por roles técnicos: $ 124,600

Infraestructura en la nube y mantenimiento de tecnología

Los costos de mantenimiento de la nube y tecnología para Tyler Technologies en 2023 totalizaron $ 95.3 millones.

Categoría de gastos de infraestructura	Costo anual
Servicios en la nube	$ 62.7 millones
Mantenimiento de la tecnología	$ 32.6 millones

Gastos de ventas y marketing

Tyler Technologies gastó $ 214.5 millones en ventas y marketing en el año fiscal 2023.

• Compensación del equipo de ventas: $ 127.3 millones
• Gastos del programa de marketing: $ 87.2 millones
• Ventas y marketing como porcentaje de ingresos: 20.6%

Desarrollo de productos en curso y costos de innovación

El desarrollo de productos y los gastos de innovación para Tyler Technologies en 2023 fueron de $ 152.8 millones.

Categoría de innovación	Inversión anual
Desarrollo de nuevos productos	$ 98.6 millones
Mejora del producto	$ 54.2 millones

Tyler Technologies, Inc. (Tyl) - Modelo de negocio: flujos de ingresos

Licencias de software basadas en suscripción

Tyler Technologies genera $ 1.47 mil millones en ingresos totales para el año fiscal 2023. La licencia de software basada en suscripción representa aproximadamente el 65% de los ingresos totales, lo que equivale a aproximadamente $ 956 millones.

Categoría de software	Ingresos anuales	Porcentaje de ingresos por suscripción
Soluciones de seguridad pública	$ 342 millones	35.7%
Soluciones de la corte y la justicia	$ 285 millones	29.8%
Soluciones municipales y gubernamentales	$ 329 millones	34.5%

Servicios de implementación y consultoría profesional

Los ingresos por servicios profesionales para 2023 fueron de $ 287 millones, lo que representa aproximadamente el 19.5% de los ingresos totales de la compañía.

• Valor promedio del proyecto de implementación: $ 1.2 millones
• Duración típica del proyecto: 6-12 meses
• Margen de servicios de consultoría: 42-48%

Contratos continuos de soporte técnico y mantenimiento

Los contratos de soporte técnico y mantenimiento generaron $ 203 millones en 2023, representando aproximadamente el 13.8% de los ingresos totales.

Tipo de contrato	Ingresos anuales	Valor de contrato promedio
Soporte estándar	$ 127 millones	$85,000
Soporte premium	$ 76 millones	$155,000

Proyectos de desarrollo de software personalizados

Los proyectos de desarrollo personalizado contribuyeron con $ 98 millones a los ingresos de Tyler Technologies en 2023, lo que representa aproximadamente el 6.7% de los ingresos totales.

Servicios de alojamiento en la nube y gestión de datos

Los servicios de alojamiento en la nube y gestión de datos generaron $ 127 millones en 2023, representando aproximadamente el 8.6% de los ingresos totales de la compañía.

Tipo de servicio en la nube	Ingresos anuales	Base de clientes
Alojamiento de la nube pública	$ 72 millones	1.850 clientes
Servicios en la nube privado	$ 55 millones	1.200 clientes

Tyler Technologies, Inc. (TYL) - Canvas Business Model: Value Propositions

You're looking at the core reasons why governments stick with Tyler Technologies, Inc. year after year. The value proposition isn't just about selling software; it's about becoming an indispensable partner for essential public services.

The foundation of the value is providing mission-critical software for core government functions. This isn't optional software; it runs the machinery of government. Think about the systems for courts, public safety dispatch, property appraisal, and enterprise financials. Tyler Technologies, Inc. has over 44,000 installations across 13,000 locations. This deep integration means high switching costs for clients, which is a massive part of the value proposition.

The shift to a cloud-first strategy directly addresses major government pain points, specifically IT staffing shortages and security concerns. The move to Software as a Service (SaaS) is accelerating; in Q1 2025 alone, there were 106 flips from on-premise systems to the cloud. When a client flips to the cloud, the contract value typically increases by 28% compared to legacy systems. Currently, about 50-50 of their total customer base is on-premise versus in the cloud, showing a huge runway for migration. The company has a goal to transition 85% of on-premise customers to the cloud by 2030. For new sales, almost 100% of product sales are now in the cloud.

This deep, long-term relationship is quantified by the trust clients place in the company. The high client retention rate is a standout metric; Tyler Technologies, Inc. maintains a gross client retention rate of approximately 98%. To be fair, the low churn rate of 1.5% to 2% shows that once you're in, you're likely staying. This recurring trust is the financial engine, with recurring revenues making up 86.0% of total revenues in Q3 2025, totaling $512.4 million.

To combat public sector labor shortages, Tyler Technologies, Inc. is embedding AI-driven automation. They are leveraging AI to address the 'graying effect' in local governments by automating tasks. They have already secured AI-driven deals for things like augmented field operations and document automation. The focus is on low-risk, highly repetitive tasks like data entry and permit reviews, which can provide real-time labor savings. The company sees interest in AI accelerating over the next 1 to 2 years.

Here's a quick look at the scale and financial validation of these value propositions as of late 2025:

Metric	Value (Latest Reported)	Context/Period
Gross Client Retention Rate	98%	Ongoing
SaaS Revenue Growth	20%	Q3 2025 Year-over-Year
Annual Recurring Revenue (ARR)	$2.05 billion	Q3 2025
Recurring Revenue as % of Total Revenue	86.0%	Q3 2025
Cloud-Based Solutions Users	14,200+ clients	As of 2025
Projected Full Year 2025 Revenue	$2.335 billion to $2.360 billion	Guidance

The value is also seen in the financial outcomes this model produces. For the full year 2025, the company projects a free cash flow margin between 25% and 27%. Non-GAAP diluted earnings per share for Q3 2025 was $2.97.

You can see the commitment to innovation supporting this value through planned spending:

• Projected 2025 R&D Investment: $202 million to $205 million.
• R&D investment increase from 2024: Up from $117.9 million in 2024.
• Goal: Embedding AI into all products by 2025.

Finance: draft 13-week cash view by Friday.

Tyler Technologies, Inc. (TYL) - Canvas Business Model: Customer Relationships

Tyler Technologies, Inc. builds its business on deep, enduring relationships within the public sector, which naturally creates significant barriers for competitors to overcome. This is not a transactional business; it's about being the core system provider for government entities.

Long-term, high-touch relationships with high switching costs

The stickiness of Tyler Technologies' customer base is a defining feature of its model. You see this reflected in the numbers: the company maintains a remarkable 98% gross client retention rate. This high retention, coupled with the complexity of government systems, translates directly into high switching costs for clients. The company reports a low churn rate, specifically between 1.5% to 2%. Tyler Technologies serves a massive installed base, reporting over 45,000 solutions installed across 15,000 different jurisdictions. This deep integration means that recurring revenue-subscriptions, maintenance, and transactions-forms the bedrock of the business, comprising 86% of total revenues as of Q3 2025.

Here are the key statistical indicators of this relationship strength:

Metric	Value (as of late 2025)	Source Context
Gross Client Retention Rate	98%	Reported as a key strength
Annual Churn Rate (Target/Actual)	1.5% to 2%	Cited as providing a competitive advantage
Total Solutions Installed	45,000+	Across all jurisdictions
Total Client Locations	15,000+	The scale of the installed base
Recurring Revenue as % of Total Revenue (Q3 2025)	86.0%	Reflecting the subscription/renewal focus

Dedicated client continuum strategy for continuous value delivery

Tyler Technologies is actively managing the customer lifecycle to ensure continuous engagement, especially through its cloud transition. The company has established a dedicated focus on the client experience, evidenced by appointing its first-ever chief client officer, Andrew Kahl. The cloud transition is a major part of this continuum; the company is moving clients from on-premise systems to the cloud over timelines ranging from 18 months to five years. As of late 2025, the customer base is roughly split 50-50 on-prem and in the cloud for product deployment. The strategy involves moving away from incentives for on-premise systems toward potential disincentives by 2030.

Cross-selling focus to increase products per customer from 2-3 to 8-10

A core growth pillar for Tyler Technologies is deepening its penetration within the existing customer base. The goal is ambitious: to increase the average number of products per customer from the current two to three up to eight to ten. This strategy is a key part of their 'Tyler 2030' vision. The company notes that the average customer currently uses 2 or 3 products but has the potential for 8 or 10. When successful, this cross-selling and upsell motion has been consistently delivering a revenue uplift of about 1.7 to 1.8x, sometimes closer to 2x when including add-on sales. Improving client experience is seen as the necessary precursor to achieving faster cross-sell rates.

Annual user conference, Tyler Connect, for training and community building

The annual user conference, Tyler Connect, serves as a critical touchpoint for training, community reinforcement, and product education. The May 2025 event, held in San Antonio, brought together 5,300 public sector attendees for three days of learning and networking. This event, which ran from May 11-14, 2025, is designed to offer training and community building. The upcoming Connect 2026 is scheduled for April 7-10, 2026, in Las Vegas. Data from the 2026 preview suggests the 2025 event included over 790+ sessions and more than 330+ CPE Sessions.

• Connect 2025 dates: May 11-14
• Connect 2025 attendance: 5,300 public sector attendees
• Connect 2025 sessions: Over 790+ total sessions
• Connect 2026 dates: April 7-10, 2026

Tyler Technologies, Inc. (TYL) - Canvas Business Model: Channels

You're looking at how Tyler Technologies, Inc. gets its integrated software and services into the hands of its government clients. It's a mix of direct relationship selling, ongoing service delivery, and modern cloud infrastructure.

Direct sales force with deep public sector relationships

Tyler Technologies relies on its established presence within the public sector. This channel is reinforced by a large installed base and a high degree of customer stickiness. The sales effort focuses on deepening these relationships to drive cross-sell and upsell opportunities, aiming to expand the average customer relationship from 2 or 3 products to 8 or 10 products.

The scale of this relationship channel is significant:

• Client retention rate is approximately 98%.
• The company has more than 44,000 successful installations.
• These installations span across 13,000 locations.
• As of October 2025, Tyler Technologies has approximately 7.5K employees.

Professional services teams for implementation and consulting

The professional services teams are crucial for implementation, consulting, and managing the transition for clients moving to new systems or the cloud. While this revenue stream is important, it is currently undergoing a strategic shift, with management guiding for it to be flat to a decline of 3% for the full year 2025. This contrasts with the strong growth in recurring revenue streams.

Here's a look at the recent revenue performance for this channel:

Period Ended	Professional Services Revenue (in millions)	Change vs. Prior Year Period
March 31, 2025 (Q1)	$64.05	Not specified as a percentage decline in the same report as the flat/down 3% guidance.
June 30, 2025 (Q2)	$58.6	Declined 18.5%

The decline in Q2 2025 revenue to $58.6 million shows the immediate impact of the strategic shift away from non-recurring services. Still, these teams are essential for ensuring successful cloud flips.

Cloud platforms like AWS for SaaS delivery and scalability

The core of Tyler Technologies, Inc.'s channel strategy is the delivery of Software as a Service (SaaS) solutions, which now dominate new business. New SaaS arrangements comprised approximately 96% of the total new software contract value in Q1 2025. In specific areas like public safety software, sales have moved to 100% SaaS arrangements over the last two years. This cloud-first approach is driving the highest growth within the company.

The financial results reflect this channel's strength:

• Full-year 2025 guidance projects SaaS revenue growth between 21% and 23%.
• In Q3 2025, SaaS revenues grew 20% year-over-year to $199.8 million.
• Annualized Recurring Revenue (ARR) reached $2.05 billion in Q3 2025, up 10.7%.
• The company's total customer base is split about 50-50 between on-premise and cloud installations, indicating significant runway for cloud migration.

Integrated payment processing for transaction-based services

Transaction revenues, which include integrated payment processing, are another key recurring revenue component, growing by 11.5% to $201.3 million in Q3 2025. The focus here is on value-added payment solutions tightly integrated with the core software, rather than low-margin commodity payments. The company plans to double its annual recurring revenue by integrating payments into its SaaS offerings.

The revenue mix shows the importance of this channel, even with a specific contract winding down:

Revenue Stream	Q3 2025 Revenue (in millions)	Q3 2025 Growth YoY	Full Year 2025 Guidance Growth
Subscription (SaaS & Maintenance)	$401.1	Up 15.5%	Up 17% to 19% (Total Subscription)
Transaction-based	$201.3	Up 11.5%	Up 14% to 16%

The Texas payments contract is a specific item impacting this channel, with the majority expected to continue through the end of 2025 or early 2026, contributing approximately $41 million in full-year 2025 revenue. That's a concrete number to watch for timing risk.

Tyler Technologies, Inc. (TYL) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Tyler Technologies, Inc. as of late 2025. This company is laser-focused on the public sector, which is why its customer numbers are so tied to government entities across the United States.

The sheer scale of their footprint is significant, showing deep penetration into the market they serve. As of the third quarter of 2025, Tyler Technologies reported having more than 45,000 successful installations across 13,000 locations. This client base spans all 50 states in the U.S., plus operations in Canada, the Caribbean, and Australia.

The company's penetration within major governmental structures is a key indicator of its primary segment strength. Tyler Technologies serves 22 of the 25 largest counties and all 25 largest cities in the U.S. Furthermore, the company boasts an impressive client retention rate of approximately 98%.

The shift to cloud services is reflected in how new business is signed: SaaS (Software as a Service) arrangements comprised approximately 96% of the total new software contract value in the second quarter of 2025.

Here's a look at the primary customer groups and the revenue distribution data we have from 2024, which reflects the historical focus of these segments:

Customer Segment Focus Area	Related Product Categories	2024 Revenue Distribution Percentage
US State and Local Government Agencies (Primary)	Enterprise Financials, Planning & Regulatory, Records & Document Management, Transportation, Data & Insights	32% (ERP/Financials)
Public Safety and Justice Agencies	Courts & Justice, Public Safety	15% (Courts & Justice)
K-12 School Districts	School ERP (strengthened by 2025 acquisitions)	Segment data not explicitly broken out, but part of overall local government focus
Municipal Utility Providers	Platform Technologies	29% (Platform Technologies)

The Platform Technologies segment, which would include utility provider solutions, represented 29% of revenue in 2024. The Courts & Justice segment accounted for 15% of revenue in 2024.

For the K-12 market, Tyler Technologies specifically bolstered its School ERP Human Resources capabilities with the acquisition of Edu. Link Incorporated in December 2025. Also, strategic acquisitions in 2025 expanded offerings for fire departments.

The customer segments can be summarized by the core functions Tyler Technologies supports:

• US state and local government agencies (primary focus)
• Public safety and justice agencies (courts, police, fire)
• K-12 school districts
• Municipal utility providers

Federal government entities represent a much smaller portion of the overall business. Tyler Technologies has stated that it earns less than 5 percent of its revenue from the federal government. The CEO noted in April 2025 that they did not anticipate any meaningful negative impact from the Department of Government Efficiency (DOGE) initiatives, as the vast majority of their software is considered essential.

To give you a sense of the scale of the business supporting these segments in 2025, total revenues for the third quarter ended September 30, 2025, were $595.9 million. Annualized Recurring Revenue (ARR) reached $2.05 billion as of Q3 2025.

Finance: draft 13-week cash view by Friday.

Tyler Technologies, Inc. (TYL) - Canvas Business Model: Cost Structure

You're looking at the core expenditures driving Tyler Technologies, Inc.'s growth engine as of late 2025. The cost structure is heavily weighted toward future product capability and maintaining the cloud transition advantage.

Research and Development (R&D) is a massive line item, reflecting the commitment to innovation in the public sector software space. Management's latest full-year 2025 guidance puts this investment in the range of $202 million to $205 million. This step-up in spending, up from roughly $118 million previously, is intended to support innovation, especially around AI initiatives with partners like Microsoft and OpenAI.

The shift to Software as a Service (SaaS) is changing the nature of infrastructure spending. While the move to the cloud, including partnerships with AWS, has actively reduced infrastructure expenses by consolidating data centers, there is still significant capital outlay. Total Capital Expenditures (CapEx) for fiscal year 2025 is guided to be between $31 million to $33 million, which includes capitalized software development costs, estimated around $18 million for the year.

For driving new business and expanding current relationships, Sales and Marketing expenses are a key focus. The second quarter of 2025 results indicated the company was achieving leverage in sales and marketing and G&A expenses, meaning revenue growth outpaced the growth in these operating costs.

Mergers and Acquisitions (M&A) activity, such as the tuck-in acquisition of MyGov in January 2025, introduces integration costs. While the deal terms for MyGov were not disclosed, the strategic intent is clear: to bring in complementary community development and asset management solutions. The cost structure must absorb the expenses associated with integrating MyGov's approximately 150 clients into the Tyler ecosystem.

Here's a quick look at the key financial figures shaping the 2025 cost profile:

Cost Component Category	Specific Metric/Data Point	Value (USD)
Research & Development (R&D)	Upper End of Full-Year 2025 Guidance	$205 million
Capital Expenditures (CapEx)	Midpoint of Full-Year 2025 Guidance	$32 million
Capitalized Software Development Costs	Estimated Component of CapEx for 2025	Approximately $18 million
MyGov Acquisition Client Base	Number of Clients Acquired (Pre-Acquisition)	Approximately 150
Operating Expense Trend (S&M)	Q2 2025 Margin Commentary	Leverage Achieved

The ongoing operational costs associated with maintaining the cloud environment are managed through efficiency gains. You can see the focus on operational leverage in the expense management:

• SaaS revenues grew 21.5% in Q2 2025.
• Merchant fees, a variable cost component, were approximately $53 million in Q2 2025.
• The company ended Q2 2025 with zero net leverage (cash and investments of approximately $895 million vs. $600 million in convertible debt).

The cost of delivering services is also reflected in the gross margin profile, which benefits from the shift away from lower-margin revenue streams. For instance, maintenance revenue is expected to decline between 4 to 6 percent for the full year 2025, which helps manage the overall cost base by shedding lower-value work.

Tyler Technologies, Inc. (TYL) - Canvas Business Model: Revenue Streams

You're looking at how Tyler Technologies, Inc. converts its market position into actual dollars, and honestly, it's a story of successful migration to recurring revenue. The structure heavily favors predictable income over one-time sales now.

Subscription revenue is the engine, showing consistent, high-velocity growth as government clients move to the cloud. For the third quarter of 2025, the overall subscription revenue grew by 15.5% year-over-year, reaching $401.1 million. Within that, the Software as a Service (SaaS) component is the star, showing growth of 20% in Q3 2025. This shift is key; SaaS arrangements comprised approximately 96% of the total new software contract value in Q3 2025.

The revenue streams break down across the business like this, using the latest reported quarter, Q3 2025, for the most current picture of the mix:

Revenue Stream Component	Q3 2025 Amount (Millions USD)	Year-over-Year Growth (Q3 2025)
Total Revenues	$595.9	9.7%
Recurring Revenues (Total)	$512.4	10.7%
Subscription Revenues (Total)	$401.1	15.5%
SaaS Revenues (Component of Subscription)	$199.8	20%
Transaction-based Revenues (Component of Subscription)	$201.3	11.5%

Transaction-based revenue from integrated payment processing is a significant and growing part of the subscription bucket. In Q3 2025, this stream grew by 11.5%, contributing $201.3 million to the total. This shows that as clients adopt the cloud core systems, the volume of financial activity processed through Tyler Technologies' platforms is also increasing.

You still see revenue from older models, which is expected given the installed base. Maintenance and support fees for legacy on-premise systems are declining as clients migrate. For example, in Q2 2025, Maintenance revenues were $112.1 million, which was a year-over-year decline. This decline reflects the ongoing strategic shift away from perpetual licenses to the cloud.

Professional services revenue from implementation and training is also part of the mix, though it can be lumpy. To give you a concrete example of its scale, in the second quarter of 2025, Professional Services revenues amounted to $58.6 million. This stream supports the initial adoption and transition for new and upgrading clients.

Looking ahead, management's view on the total top line for the full year 2025 is quite specific. The guidance for full-year 2025 revenue is set in the range of $2.335 billion to $2.360 billion.

Here are the key drivers influencing the revenue composition:

• SaaS adoption rate reached 96% of new software contract value in Q3 2025.
• Annualized recurring revenue (ARR) stood at $2.05 billion as of Q3 2025, up 10.7%.
• Initial 2025 guidance projected total subscription revenue growth between 15% and 18% for the year.
• Initial 2025 guidance projected Maintenance revenue to decline between 4% and 6%.

Finance: draft 13-week cash view by Friday.