Tyler Technologies beats quarterly revenue estimates on steady cloud demand

Tyler Technologies TYL beat Wall Street expectations for second-quarter revenue on Wednesday, helped by steady demand for its IT and cloud-based software services.

Shares of the company rose about 3% in extended trading.

Demand for Tyler’s services has grown as more businesses and government agencies transition to cloud-based solutions to streamline operations.

The company provides integrated information management solutions and professional IT services primarily to the public sector, including local governments, courts, and schools.

It reported second-quarter revenue of $596.1 million, beating analysts' estimates of $587.9 million, according to data compiled by LSEG.

The company also slightly raised its annual revenue forecast to between $2.33 billion and $2.36 billion, up from a prior range of $2.31 billion to $2.35 billion.

For the quarter ended June 30, Tyler reported earnings of $1.93 per share, compared with $1.57 per share a year earlier.