I came across this while skimming this week’s IBD. IBD profiles a top mutual fund every week and asks the fund managers a few questions about their favorite picks. One of them mentioned was TYL.
According to one of the fund managers, TYL helps the government with their record keeping by digitizing them. Many local and state governments have systems that are over 20 years old and the people who know how to manage them are retiring. This is a cloud based company that eliminates the need for each government body to each have their own set to maintenance specialists. (This reminds me a lot of TWLO, for which I was super late to.)
From Lynn Moore, the CEO, in an interview found here:
"We’re the largest provider of technology to the public sector. … We have a vision called Connected Communities that’s really going to change and transform the way local governments operate and the way they interact with their citizens. … We provide software that runs all the essential functionality of local government … Connected Communities is really about taking the data and processes and trying to connect them across different agencies.
Right now, the local agencies really operate in a silo. We acquired a company called last year (Socrata) and they’re able to pull out data from all these disparate systems and put it in a way that will help local governments make more meaningful decisions and … the way they interact with the citizens. It’s really about connecting multiple agencies and actually connecting jurisdictions so that the government itself works a lot more efficient and is more responsive to the citizens."
At heart, I am an MI guy, and not an ideal “Saul” guy. Therefore, I won’t post YOYs, retention rates, growth rates, etc. However, IBD does rate their EPS at 91, RS 90 and overall at 98. Yep, it’s a growth stock!