The gov tech behemoth, one of the few companies in the space to publicly report full results, said this week that its revenue for the first quarter ended March 31 reached $565.2 million, up 10.3 percent from the same period last year.
Net income increased 49.6 percent to about $81.1 million.
In a conference call with investors, CEO Lynn Moore credited much of the growth to the ongoing transition among public agencies to the cloud via Tyler’s technology.
“Our cloud-first strategy further strengthens the resilience and durability of our business model,” he said, offering confidence that the business will continue to thrive even amid economic changes and rising uncertainty.
Tyler has more than 12,400 clients using cloud services.
The company also says it has 45,000 installations in 13,000 locations, with clients in all 50 states. That means trends experienced by the company can reflect what is going on in the wider world of government technology.
One of those trends is anxiety about tariffs.
As procurement officials wonder if and how President Donald Trump’s push for more tariffs might influence their own operations, Moore acknowledged that the company is not “completely immune to the macro conditions affecting many companies,” but was otherwise optimistic in his comments to investors.
He said Tyler is seeing only “minimal” impacts “around the margins of our businesses” from “potential tariffs” and federal funding cuts. Tyler has yet to experience “any fundamental changes in demand or buying behavior,” he said.
As for DOGE — and other efforts to rein in or even claw back federal spending — Moore could point to only a few minor examples of that affecting Tyler. One was a “really small deal” with the Department of Education that was terminated and which amounted to about $100,000.
In all, Moore estimated that no more than five deals have died because of those efforts, with them “adding up to less than $1 million.” Another $1 million or so could be a risk, he told investors.
That’s not terribly surprising for a company that earns less than 5 percent of its revenue from the federal government.
“We have not seen and do not currently anticipate any meaningful negative impact on our business from DOGE or similar initiatives as the vast majority of the software and services we provide are considered essential and actually enhance efficiency,” Moore said during the call.
Indeed, Moore said DOGE, “which has become part of our vocabulary,” could present opportunity for Tyler.
That’s because of what he called a “focus on efficiency” that is spreading through governments, and because Tyler provides “essential” software and services that help public agencies bring more digital strength to their activities.
“Rather than viewing these initiatives as a risk, we see opportunities in aligning with efficiency objectives such as those outlined in DOGE, which emphasize modernizing technology as a key component of maximizing government efficiency and productivity,” he said as part of his prepared remarks.
As concerns about recession grow, Moore also put his faith in the relatively reliable property tax revenue streams that local governments use to back their technology purchases, and the tendency of state-level clients to pay for tech via “self-funded services or user fees that do not require appropriated funds from the state budget.”
As he made those comments, Texas was moving ahead with its own DOGE-like cost-cutting effort, the latest state to adopt that philosophy.
