(Reuters) – Tyler Technologies raised its full-year revenue and profit forecast and surpassed Wall Street’s third-quarter profit expectations, fueled by strong demand for its IT services.
The recent trend of public sector clients shifting enterprise workloads from internal data centers to the cloud has boosted revenue for IT providers like Tyler Technologies.
The company now projects revenue for its fiscal year 2024 in a range of $2.13 billion to $2.15 billion, compared with its prior projection of $2.12 billion and $2.15 billion.
Analysts had estimated full year 2024 revenue to be $2.14 billion, according to data compiled by LSEG data.
The Plano, Texas-based company also revised its full-year adjusted profit forecast to be between $9.47 and $9.62, from its prior estimate of $9.25 to $9.45 per share.
Tyler offers IT services and software designed to streamline data processing and enhance workflow for public sector organizations.
“The total contract value signed this quarter for on-premises client flips to the cloud was more than triple that of last year’s third quarter” said Lynn Moore, CEO of Tyler Technologies.
The IT-solution provider’s subscription revenue rose 17.6% to $347.2 million during the reported quarter from a year earlier.
Third-quarter profit per share stood at $2.52, compared with analysts’ expectation of $2.43.
However, the company posted revenue of $543.3 million for the quarter ended Sept. 30, missing analysts’ average estimate of $547.4 million.
(Reporting by Priyanka.G in Bengaluru; Editing by Tasim Zahid)
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