GTY Reports Impressive Growth and Operating Performance Amid Ongoing Global Public Health Crisis

Rhea-AI Summary

GTY Technology Holdings (NASDAQ: GTYH) announced the addition of 314 net-new customers in 2020, showcasing robust growth across its business units. The procurement software Bonfire saw a 36% increase in clients, and CityBase grew its customer base by 28%. eCivis reported a 70% increase with 53 new customers, while OpenCounter added 11 clients with a 30% growth. The budgeting units, Questica and Sherpa, combined for a 14% increase, totalling 103 new clients. CEO TJ Parass highlighted the role of cloud solutions in enhancing public sector efficiency during the pandemic.

Positive

• 314 net-new customers added in 2020.
• Bonfire's client increase of 36% sets a growth record.
• CityBase achieved a 28% increase in clients.
• eCivis saw a 70% customer growth with 53 new accounts.
• OpenCounter experienced a 30% increase with 11 new clients.
• Questica and Sherpa together added 103 new clients, a 14% increase.

Negative

• None.

GTY Technology Holdings Inc. (Nasdaq: GTYH) (“GTY”), a leading provider of cloud solutions for the public sector, announced today that GTY business units have continued to add customers at a strong pace, bringing on 314 net-new customers in calendar 2020.

“Cloud-based platforms have become an indispensable tool for government as the COVID-19 pandemic continues to change how public sector organizations serve their citizens,” said TJ Parass, CEO of GTY Technology. “As agencies accelerate the digitization of their business processes, GTY’s cloud-based solutions are helping them stay flexible while increasing speed, efficiency, and accountability during the pandemic and beyond.”

Bonfire, a leading provider of procurement software for the public sector, has added 126 new clients year-to-date, a 36% increase over 2019, making it a record year for growth. New Bonfire clients include a range of public agencies comprising notable local governments, transportation authorities, K-12 districts, and higher education institutions like Harris County, TX; Barnstable County, MA; and Toronto Waterfront Revitalization Corporation, ON. Furthermore, subscribers to Bonfire’s premium vendor offering experienced 724% growth so far in 2020, signaling that Bonfire continues to be the platform of choice for both public procurement teams as well as vendors seeking public-sector bidding opportunities.

CityBase, a leading provider of government and utility payment technology, has added 21 new clients in state and local governments in 2020, a 28% increase over 2019. The City of Austin, TX, a technology innovator that puts residents first in its digital strategy, selected the CityBase payment platform as part of its continued focus on service enhancements. The City and County of Denver, CO, selected CityBase as its payment partner to modernize and unify point of sale cashiering and online payments for its more than 716,000 residents. The Village of Mount Prospect, IL, and the City of Portage, IN, partner with CityBase for streamlined online payments and self-service payment kiosks. Several cities have partnered with CityBase to introduce 24/7 kiosk payments to their constituents, including Plymouth and Andover, MA, Edgewater, FL, and Lancaster, SC.

eCivis, a leading cloud-based grant management system for state, local, and tribal governments, added 53 new customers so far this year, a 70% increase over 2019. The California Department of Forestry and Fire Protection has teamed with eCivis to run all of their fire and disaster recovery funds for the state, reduce audit findings, and improve communication and payment processing to their subrecipients. The California Department of Housing and Community Development has teamed with eCivis to run all of their critical community program funds, including their CDBG program and grant, Disaster Recovery programs as well as Emergency Solutions Block Grant (Covid-19 funding), Homekey Program (homeless assistance), National Housing Trust Fund, and Home Program.

OpenCounter, a leading provider of public sector permitting technology, added 11 new customers this year, a 30% increase over 2019. Sales of OpenCounter’s Portals surged this year as cities like Omaha, NE; Fort Worth, TX; and Miami, FL prioritized remote-friendly options to navigate the business formation process. Additionally, OpenCounter launched its Special Events Portal, an industry-leading, end-to-end solution for managing special events. Cities including Orlando, FL, and Salt Lake City, UT, chose OpenCounter’s Special Events Portal in 2020 to digitize and streamline special events permitting. This is especially important as increased public health requirements make special events even more difficult to manage without OpenCounter’s solution.

GTY Technology’s budgeting units, Questica and Sherpa are industry-leading providers of cloud-based budget, performance, and transparency solutions for the public sector. Together, they have added a total of 103 new clients in 2020, a 14 % increase over 2019, and now serve customers in all 50 states and 12 provinces and territories. Questica maintained a customer retention rate above 97% and won new accounts across enterprise and mid-market government, education, and non-profit sectors, including Bucks County, PA; Metropolitan Water District of Southern California; Via Metro Transit in San Antonio, TX; Massachusetts State Appeals Court; City of Meridian, ID; City of New Orleans, LA; and Fort Worth Housing Authority, TX. Sherpa maintained a 100% retention rate while adding several enterprise clients that include the State of New Mexico; the City and County of San Francisco, CA; and the County of Ventura, CA.

For more information about GTY Technology, the GTY family of companies, or investment opportunities, visit www.gtytechnology.com.

About GTY Technology Holdings Inc.

GTY Technology Holdings Inc. (NASDAQ: GTYH) (“GTY”) brings leading public sector technology companies together to achieve a new standard in stakeholder engagement and resource management. Through its six business units, GTY offers an intuitive cloud-based suite of solutions for state and local governments, education institutions, and healthcare organizations spanning functions in procurement, payments, grant management, budgeting, and permitting: Bonfire provides strategic sourcing and procurement software to enable confident and compliant spending decisions; CityBase provides government payment solutions to connect constituents with utilities and government agencies; eCivis offers a grant management system to maximize grant revenues and track performance; OpenCounter builds permitting and licensing software to streamline interactions between applicants and staff; Questica offers budget preparation and management software to deliver on financial and non-financial strategic objectives; Sherpa provides public sector budgeting software and consulting services.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The company’s actual results may differ from its expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the company’s expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside of the company’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the impact of the coronavirus (“COVID-19”) outbreak, or similar global health concerns, on our operations and customer base; (2) our ability to consummate any proposed transaction with respect to the previously announced review of strategic alternatives; (3) the lack of actionable alternatives being identified in connection with the strategic alternative review; (4) our failure to generate sufficient cash flow from our business to make payments on our debt; (5) our ability to raise or borrow funds on acceptable terms; (6) changes in applicable laws or regulations; (7) the possibility that the company may be adversely affected by other economic, business, and/or competitive factors; (8) other risks and uncertainties included in our Annual Report on Form 10-K for the year ended December 31, 2019, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 and our subsequent filings with the Securities and Exchange Commission. We caution you that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based.

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FAQ

What is the customer growth for GTY Technology Holdings in 2020?

GTY Technology Holdings added 314 net-new customers in 2020.

How much did Bonfire increase its client base in 2020?

Bonfire saw a 36% increase in new clients in 2020.

What percentage did CityBase grow its client base in 2020?

CityBase experienced a 28% client increase in 2020.

By how much did eCivis increase its customer base in 2020?

eCivis reported a 70% increase with 53 new customers in 2020.

How many new clients did OpenCounter add in 2020?

OpenCounter added 11 new clients in 2020, representing a 30% growth.

What was the client increase for Questica and Sherpa in 2020?

Questica and Sherpa together added 103 new clients, a 14% increase in 2020.