TYL – Market expectations are for Uniform ROA to continue expanding, but management may be concerned about their backlog and contracts

• Tyler Technologies, Inc. (TYL:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 44.1x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may be concerned about their backlog and contracts
• Specifically, management may be concerned about the sustainability of recent backlog growth and about the value of their North Carolina Odyssey contract. Furthermore, they may lack confidence in their ability to determine the best cloud optimization strategy for their services.