Tyler (TYL) 25 Apr 242024 Q1 Earnings call transcript

Hello, and welcome to today's Tyler Technologies First Quarter 2024 Conference Call.

Your host for today's call is Lynn Moore, President and Chief Executive Officer of Tyler Technologies. [Operator Instructions] And as a reminder, this conference is being recorded today, April 25, 2024.

I would like to turn the call over to Hala Elsherbini, Tyler's Senior Director of Investor Relations. Please go ahead.

welcome call. and Christa, you, to our Thank With Chief our Executive is Lynn Chief President and Moore, our Officer; Officer. me today Financial and Brian Miller, After annual will review will details of statement, on safe and quarter XXXX. the I update results initial our our Brian some for comments Lynn then and our give the guidance have harbor and questions. your will Lynn we'll then end with some take additional comments,

results uncertainties concerning and materially statements the believe are that conference future that provide more make for information Reform may earnings in XXXX are and call, the include of We historical than considered safe comparisons Act cause our release, this differ expenses projections with included to During you peers revenues, and Litigation we in provision could Also, statements subject those measures information of refer company's statements on XX-K from and industry. prospects, Private and and we SEC software under which management other Form Such have certain our Securities to the facilitate results those understanding risks. would of harbor may actual our profits. the forward-looking other projections. information filings to non-GAAP risks

non-GAAP reconciliation in measures GAAP A of our to provided is earnings release.

posted including about our information section also of revenues tab, information, supplemental bookings. our on Relations have the Investor Financials quarterly We with website under schedules the and recurring

we Lynn? of to posted and the period comparisons an on prepared deck we we summary last corresponding growth relate year otherwise. Presentations Please the today supplement Events all remarks. tab, will call On that the our earnings specify to note unless slide make

Thanks, Hala.

metrics, almost results across exceptional operating and exceeding our grew revenues comprised SaaS quarter through XX% cash quarter revenues XX% year, of flow. key XXth SaaS of the start X% of CAGR first revenue to revenues, an XXXX. and exceeding expectations a margin earnings, expectations Recurring provided including grew revenues. of SaaS XX%, more, total consecutive in our or growth revenues our XX% Our

with plan volumes trends. In addition, positive pricing higher and our revenue transaction surpassed

demonstrates the supported budgets. by against business model backdrop public performance healthy Our our of power sector robust of demand, generally the

Our sales execute go-to-market strategy. synergies integrated growing elevated, sales activity and leading indicators we our our reflects as pipeline remain

announced Investor Day strategic Vision, growth transition, Tyler last XXXX business. our base, During leveraging year, expanding focus cloud we into completing aligns markets, our our X our new which and installed drivers: key our our growing payments on

state for quarter Idaho, Ada our enterprise of the contract, solutions. included permitting Columbus, ERP, City a driving execution Georgia, and and full been client ERP we're payments cornerstone new Leveraging sales our our organization, existing strategy, and market our unmatched upsell client activity with further growth that leveraging the relationship. pro by base on-premises our Safety during installed to impactful County, Public Tyler of the with and our cross-sell courts, with a And tax its upsell and wins has including reach existing cross-sell outstanding and pleased records Notable corrections, contract, management enterprise expands relationships with adding suite engagements. deepens

of market. An one the new a division to our existing ERP and accessible while facilitated Legislative for ERP innovation in solutions. city making and for in enterprise relationship enterprise the our key licensing levels cloud Alaska, prioritizing our unlocking new Council tax growth cloud client which Juneau, process drivers, secure assessment and permitting responsiveness of the enhanced an security. win clients, we as contract providing By Texas a enterprise the of in by with RFP combined avoided Digital Texas, nontraditional SaaS with Solutions A are and enterprise

mix and contract software new value. XX% SaaS software comprised to expand QX new Our continue of

platform application accelerated selections. the state a client-driven cloud encouraged particularly in shift multiple see Public preference in for growing SaaS We're with federal our cloud an technology and demand to market Safety and with

for across Tyler, the signed was expectations, enterprise for And fact, the our revenues we of ARR. of previously the have line the SaaS. lowered anticipated, were these we deals shift pace than first average with XX.X% in the expectations volume to year Because quarter Public our year. flip a in markets Safety our license increase faster with this In in is quarter of first XX% SaaS in

Resources Key with and multiyear National Competitive SaaS strategy. cloud-only area focused on a on Safety Palm new full momentum Public Public Florida, SaaS Beach, our the the Lakes wins Department of first included deals and arrangements flips Recreation Safety that land recreation the SaaS for quarter build with Hawaii included which a enterprise space. between in contract outdoor Natural suite was

than the X Safety with which justice We a clients. accelerated timeline also completed SaaS Alabama accelerated interest enterprise city appellate SaaS appraisal flip to executed court client-driven selections Evanston, both $X Safety from Kansas the contract which Fulton of Germantown, with a courts we footprint Chicagoland Tennessee, our Illinois, SaaS enterprise signed on-premises ARR were more of month. growing go-lives. County, of with expands on which won was enterprise continue contracts The Beringham, An Public in as Atlanta. an Two with for and moving The cloud Georgia, see a million Public sole-source flips within growing in the go-live tax in and includes judicial our to area. branch

driver payments of transactions and long-term growth business. our key is Another our

$X X-year enterprise projected expectations. portal signed business, to quarter quarter, a our signed of million Mississippi, across first XX-year we contract new As volumes deals I transaction relationship. exceeded existing better-than-expected In earlier, first extending our that XXX in enterprise representing new ARR. state payments State with the contributed revenues we In our the mentioned Tyler, approximately

was enterprise with Our NASPO agreement State the rebid Citizen Engagement X a through agreement. years for Idaho of the also renewed in

formerly and us a capabilities. contract of CSI, our each traction We're our also AI for demand RexourceX, client ARInspect we pleased in to which XXXX through and existing signed adding augmented we CSI, city our field an and Texas, brought inspections see the activity with Newark to our approximately operation with very ARR. levels With added growing first of We've solutions manhole the course pre-acquisition expansion Department for seen Jersey early wins Dallas Environmental of over the solution, ARInspect, Protection. included of County, portfolio quarter contract acquisitions $XXX,XXX expanded with that of New demo double

of powered Worth, our budgeting by Fort we Collier almost with County, ARR. and solution For that priority-based signed contracts RexourceX, Texas $XXX,XXX added Florida

Brian results like the I'd on detail to updated XXXX. and our more for Now for quarter annual guidance provide the

a the and revenue new fluctuate from this, quarters. $XXX.X grew grew organically and flip our and that for rose revenues Keep were to as up SaaS year-over-year as grew increased X.X% or Within subscriptions, lag revenues well organically to of from revenue Because XX.X%. a $XXX.X XX.X%. from organically quarter related XX.X% million, of signing million there's increases, deal the both Lynn, SaaS total revenue to start XX% several SaaS can quarter-to-quarter. renewals of the mind the of price X.X%. to and recognition sequentially a that Subscriptions in may often one timing vary growth, and SaaS

to Transaction $XXX.X million. revenues X.X% grew

new continues clients, due comprised under While and volumes by our model exceeded the year. including contract comparison the approximately one to higher new last to to state the of our deals QX be primarily transaction year-over-year from our value transaction of driver impacted gross change agreement. existing year revenues XX% payments history SaaS records, plan, model XX% software to the enterprise net for last compared from

QX clients $XX of XX on-premises on-premises to SaaS SaaS and During and total value million. the SaaS last clients of approximately a added arrangements quarter, arrangements -- million. of total we on-premises converted conversions a we In added XXX existing had XXX XX contract year, value new with $XX SaaS with contract new approximately

increased the basis. importantly, XX.X% increased XX.X% expansions professional Including with flips services, existing and associated year. total average ARR More on with organic an last clients over transaction QX revenues, our bookings

annualized revenue margin return was cloud X.X%. organically be operating from billion, that recurring XXXX grew and X.X% In total that would operating we to our the approximately and XXXX trough expansion. $X.XX quarters, a would transition mark Our expectation margin discussed previous our up

Our with expense cloud for first margin XXX was last XX.X%, margin operating year. points The quarter management. operating along non-GAAP our up expansion from margins improved in operations effective the basis reflects

QX. As are fees cost passed they fees revenue payments a our from under clients have the calls, margins business $XX to overall of previous on merchant model, gross million are interchange as discussed revenues our through We merchant included and and of approximately in paid meaningful we both and impact on in revenues.

million were from respectively, outstanding debt flows cash allowed and the $XXX remaining quarter of earlier and outstanding in quarter of operations debt cash investments us with the flow $XX.X the $XX.X $XXX and of the to million, million We ended million. expectations the above term and at free planned. repay Both which $XX million convertible from acquisition than cash NIC approximately year for

was quarter XXXX. X.XXx approximately trailing due at EBITDA pro $XXX net Our in leverage XX-month debt our remaining convertible with only million of end forma

guidance Our annual follows. as updated XXXX is

midpoint merchant basis expect now implied will over be points growth, implies excluding organic fees We higher. billion. slightly fees, and expect our XX year We be $X.XXX last The approximately and merchant approximately of will billion of $X.XXX total that X.X%. organic guidance would revenues be growth between that up

on be We tax and the expect the to and due items impact between will of tax GAAP significantly effective EPS vary may $X.XX rate. $X.XX diluted discrete GAAP

be between $X.XX. and will EPS diluted non-GAAP expect $X.XX We

throughout earnings year with towards We revenues expect the sequential to in EPS both weighted the half. slightly growth see and second

to our will our earnings XX% deck taxes of our XX%, related are approximately of estimated on earnings and $XX QX including guidance Section in posted incremental expect included be the the flow We website. cash Other in and XXX. details million our free of release between margin cash impact

I'd to like call back Lynn. turn over the to Now

Brian. Thanks,

demonstrates XXXX quarter key areas, members performance Our our anchored the Vision. Tyler by in strategic to Tyler in execution team strong across

agility progress the we starting the efficiencies our cost of cloud to consolidation, with applications. are products, of benefits our transition clients and public serve cloud version through who improved through We see empower as cloud next-generation optimization Tyler's expected

results of for because outlook. expectations raised earnings the accelerated Safety increasing while license quarter revenue are to platform strong the with and in our with the annual solutions, of year guidance our remainder revenues our also SaaS reflected application Our outlook our revised shift Even first guidance. we've Public lower for positive and

our governance published our responsibility recently fifth social annual environmental, covering corporate and activities. XXXX sustainability We our disclosure report,

to included XXXX data investments and in efficiencies. initiatives sustainability processes management, reporting in validation drive Our

assessment We you multiple impact understand the take hope also undertook a which materiality. key report, website. our review is to financial on materiality both our materiality time constituents and for insights to We double on available

from innovations Connect XXXX, collaboration and training, which about networking, team Tyler the our X,XXX inspiring XX place Finally, Tyler. members forward Nearly XXX XX and we're together will take and clients excited clients for to with Indianapolis. Tyler latest we're to in come Tyler May will looking

the Now we'd open Q&A. like to line for

[Operator your Oliver question from Baird. first comes Instructions] from Rob And

Lynn, mine you. for is

CEO what kind You excited role. your color improve about outset you've a mentioned the are in What of pulling has go-to-market you still integrated little in on? progress sales the year. areas some what you're since if of to the so some had of know more and laid synergies need of growth give Where push it. synergies I your you are? focus on been I sales prepared assumed kind talked the of kind the remarks, of out you you're And far? you And Could levers us last growing a bit that growing appreciate about of guys you this the some big those detail strategy are? but your areas, of

good Sure, We've together of it's people a Tyler, way wins. closely our example, plans of barriers everybody justice oversee than public P&L recognized elevated it's It's that Rob. that, when wanted some Last it's our whose question. And and working year, the by. sales. those days, in wins, all we make -- comped the before. to to changing break incentive is to really, done sales, admin sure Tyler about this so of are -- couple They're old more a of things some for aligning around people down -- all ever well when we Yes. all comp

like been done and doing some process We've things in still of and that. things, And work-in-progress. we're that's the of so -- we've some still

that there. things application our our We're are say they're initiatives, lot I divisions, any by DSD finished, doing we that and when these but formerly NIC, these see and things mean not started synergies means are a of around platform work-in-progress. I PSD we

tailor-made So we're closer We start that for and to doing some is things those more government. right state closely now the can bring so they divisions together believe with platform to work operating of application sales efficiencies.

that. like improvement think to initiatives out a see to as -- on. number just going look we so And I going It's And there's of forward. a continue lot we're

Barclays. of the Kalia Your next from question from Saket line comes

the straightforward. Lynn, numbers pretty are

I'll customers state like a what election to maybe I I of X from is election season. aren't want we governments spending asked, historically want those sure just healthy. sounds ask the bit I and again, years? you question things It little So just to can Lynn, kind presidential make local continues mean to level in But imagine get of related. But those that just just asked higher a ask question. that question is I seen deeper sound into sure you've as backdrop in terribly talk about, to make the --

going more election that in been be than of know much between there's broader may the historically, environment. macroeconomic year Yes, presidential sales correlation a on what I our the and so don't

you our and budgets for clients the As are healthy note, strong.

my space so in budgets. year, and have with know the -- as But on year local with impact what don't funding our I sales generally, have. but some a of outlook our significant we to I what's haven't I've a for you and traditional change plans, think federal bit on and seen may more federal plan. experience going normally aggressive plus. I that that space, years the of enough may looking outlook look our pretty Maybe lot are got our it's in Our little if our yet state the sales ahead space. parts sales be for at business federal plan But and of XX in actually, around the

comes from VanVliet next question from Matt Your the of line BTIG.

flips, continue Public holding business case side maybe see believe little sort contracts the of over of and with on you more for [indiscernible] there thinking set move try Or maybe mix guess, quickly encouraged customers? pace see you a impetus of said the an or to customers get acceleration I an and certain flips to to at changing your to try done just the push [indiscernible] forward accelerated of bit going a as I of on to extent any I a higher more and motivation to or, Safety possible? higher as in back even this to

you question, At couple cutting I'll can And I of most Matt. think of think you're Safety, kind things. start. jump I out, certainly your a of I got in. Brian, Public it's

little historically, leading going of leadership to leadership a go. We've needed new it go We've and think to got the at go Public of going internally to where position In it's been and thought you some we to sort as some as from back actually, that when cloud we start I we step Public we back were was our message was announced and XXXX, couple go market you take -- were a of cloud-first we you were know, going was the going bit agnostic, Safety. Safety, spent to slower. to years. least

but competitive excuse position is in and Public Safety place, we're a me. It's competitive a in we're a space space, very competitive. very Our

And year, and start approach year taken so third leading really this are with quarter, fourth we've going SaaS last with Safety. started to the more Public that we starting quarter

And was so only arrangement. a contract. We about deal for that's were looking That they Palm where resonating. Beach, the SaaS a talked Florida

do to of things going There's look the the continue quicker selling to around out year, to of choice. to we still a that. At this customer's the SaaS. lot things end things we're it's As push day,

now, think the year or QX. we're about from give up which do our I look seeing XX% reported on-prem XX% our right I year. significantly at think Safety, was in was we And take, plan what last You Public for to licenses,

selling a generally where our to relates flips, those. of armed it around As are with folks flips there's and lot messages all sales

sort clients more a to which I to to to about one wheels aren't the also rise the their publicized, think that starting SaaS are to on it calls we've attacks and also starting push they the bit of of I grease thing little to that that SaaS. cybersecurity sort out see that also is in decision earnings talked triggering think make ransomware and want faster. community, you're continued of to move see, to And that's always before

add flips terms only to is, guess, that I'd of our I the beyond talked the significantly thing in to efforts ability the pace Lynn that of increase, sales about.

or with in We sunsetting past upgrade having they cloud. that to have we the progress drive the of that who gating towards the a and one of to before products consolidation our version in current be of along, in version a talked each moving factor the to need either And continues clients version old cloud the generally about and we've version but for pace look flips. aren't on when product to made lot of versions clients the as

as larger with up we opportunities about, more progress complicated from clients a in a flips, we've we they're the that, into talked so as And especially move But flip. being continue from as processes to to perspective. position make it planning opens

timing And engaging time the of from up we so leading with start to sometimes can lengthy. clients, be flip the the kind

that So to of but our that that maps have as it our customer about fast by of XX%, products, We've the our a XX% business as road aligned on possible. at us across cloud goal. converges road map all are base XXXX, certainly being we're product, varies with by units having of moved and talked on-prem pushing all

Ken question Wong from Oppenheimer. Your line of comes next from the

took it When This quarter. like of contracts, it we this really number you, one looks big Lynn. up for the step subscription look a at

I some touched on think highlights. you the of

situation that rate run of a closer do perhaps the lumpy XXX? of jump volatile Or a reflection to think seeing more wondering the expect that, is Just that's we of kind seasonality can a from going forward? up you if there a we're of type

It's a bit little of probably both.

business going you a when over scope. lot to back a -- lot think if new I generally, of I I than great know certainly we're teams. vary our a year into -- quarter, and It's of and higher one teams great work don't new deals QX was I last year But think that a then obviously, step that XXX of coming out new by the turn on. XXX XXX revenue. plays -- that's last by our of that's with size to to It's most year. work sales contracts are think doing, that That's it But it's we're ProServe -- in it's year. a executing about business and out

think year, for we last year. deals, I XXX did take give the about new or

better. So as we're are little right But I strong. markets budgets now, are on pace said, a healthy,

Our sales the sales looks are and our outlook outlook, positive year. indicators all good for

comes next Alexei JPMorgan. the question Gogolev line Your from of of

elevated around has, the win demand in Considering referred acceleration has you rate of organic And Lynn, of feels show at remained be taking should Do if the XX%? relatively that level you could term? revenue like you just that you market more feel consistent your growth to, near it it share.

the generally, major across I'd each win are consistent. that's Alexei. say, Thanks, you -- to board by our of look products. Yes. XX%, rates And say got you when sort

there. spaces, competitive Public -- win it's we where there's more market, and more some the sort some be XX%, So ERP space around where Safety, that they are about areas a there's lot of may competitive mid- sort certainly XX%, of about rates our talk we higher to talk are

the There's talked I of running. getting them a -- really yes, we some to have still and time getting up contract we haven't to factors So But that deal before lag of between to mean, our the changed. same about starting still those said as we've of revenue we're sort and -- X I back -- see slowed we overall we've over we some years, that that. last to pick and growth expect look of up, think we out,

Your next the Joshua of Needham line from question comes & Company. Reilly from

the challenges to these you seen about this this venture-backed of how then customers are the as proposition? to they Public timelines unable product some using where have getting are customers Tyler broadly, hearing to we're across live. Are And promises value lines often getting start-up specifically management more records on back making are competitors highlight an So go in you live other customers some Safety, execute start-ups opportunity having just your and venture-backed that on? of

a it's And Joshua, little There's at winning something only as they business, some for have sauce splash, long said that's part have certainly that win the but a And demo ERP comes that our business, had as someone the for on products that. seems courts some they little Tyler. business. the it's which seen, division, is good the have wouldn't of spotlight but little the hard battle. be because functionality We've of always sells depth Tyler periods schools looks of example, really, we've always that's where XX-plus has not they over really we but question. have, Yes, and part more of makes space They say, up, to we've stuff. in executing years them. and been They secrets on been the I'd haven't the just low like municipal and Take, a end on I've things and good.

they year did, quarter, X think, quarter. I go-lives last mean They did XXX -- I in last

a our the hardworking look people it boy, And understand it's hard a I we business to a with it's just we into. results And culture, our invest with generally view obviously, deals, not of of -- this And testament that's in, is an the found, testament than This money think, And look testament they venture-backed, difficult it's and times the relationships what from but at our small that's get but something people, it's sort how are part. clients. ought at really easy in the and Now that's to lot and at lot from that's outside. business. to Tyler, is may some Tyler's market, is come business. those say, outside, all we our a PE a more didn't

because it's a implementation But spend not that last about. successful -- you're -- as of I your it's time and So talk. lot something in appreciate up business you our it's only all this bringing talking clients we no,

you knows. everybody fail, when So

Your next Piper question Sandler. comes from Clarke Jeffries from

margins up and year-over-year. encouraging very operating substantially, XX% to see dollars income Brian, up operating

You private improved could the operating taking you're some cloud already the that of in as that. full pan expectations of is the operations EPS cloud year? how a up talk of Does being but you a capacity out little And margins today, that bit year, talked about driver mean the reduced? the about for rest for

It's capacity. after so Yes. do data that our out center year. until first are continue lot to We don't this that midyear much the those is clients move -- But evacuate data not track on of center our costs to to AWS, go and with we really, of plans closed. of a

that's So factor. biggest really not the

Some progress and over of made costs. have around optimized to last efficiencies plans product, had quarter about consolidation, the associated things The improved older the talked made we our the expenses version supporting costs we've versions provided progress lowers AWS quarters of driving AWS. improves products. And sunsetting continue recent aggressive increased hosting efficiencies significant of our this efficiencies and cloud the multiple the about the we multiple year products from new efficiencies both and agreement that has costs versions increased around we've us with are of hosting development cloud cost getting with and year benefits support last which with costs those releases versions at and our or the of

expense terms And where revenues, in revenues briefly, cover that the OpEx. of continue payment on mentioned to then in And we a outperformance especially So way of the history incremental fixed to from able to like play things then contributed records revenue there. better side, our but with plan are of those effective all lastly, have side, driver on management were continuing we above costs out. the

So our marketing than slower are growing and costs both our than revenues. G&A a at overall sales and rate

we're those the rest as efficiencies So factor of year there getting and well. the into

efficiencies going of Yes. are through in talk on stable we And achieve. few year. we in of that a started a to of improving But the function services. margins that our Clarke, we've strategic some efficiencies saw other also we labor different don't we're uptick that more last go an things that things. of initiatives, it's I'd -- runway lot seen the there's a market. a it's on there's we add, really had cloud, focus internal a to -- a working seeing That's We've a more about, still pro gross QX. but function It's like

going turnover and has returned internal Our initiatives IT pre-COVID optimization cloud emphasize results estate to capture. go for scenes out Things that And much lower It some we're starting on things But to to efficiencies the the been in like back behind working consolidation internal to we've utilization. of helps. and are are some the really around we're billable the to of rationalization show Other there see all the sort want cloud. us drive in and things levels. helps I that real that and costs. do to that been addition that costs going to still from version further all

Fargo Turrin comes the question from Wells Michael line next of Your Securities. from

start through materials prepared on as well for revenue, also both for? impacts a what's guide. helpful. Fast on gross up from the of came call, as but walk just And couple increased to a we driving on if could customer the us transaction any net. consider growth commentary supporting Would rationale you the to the whether that, mentioned times margin there's on other there be see curious Brian, something that's change the Maybe customers maybe elect there, can

net last case. had Yes, be enterprise the Sure. payments expect year, the from about the talked our we we gross the to and to vast state clients gross the X to on year, last of that year, And actually is model, still, had we and continue clients business this some last majority that changes model.

interchange that So fluctuation like our clients a arrangement -- large-scale and fees and we client us, get predictability decision. we're from the really and And those. for clients of of certainty the that. having ahead. Most It responsible with changes is of so merchant growth where most of a don't the risk see sort they fees of prefer our bear prefer the

These two the The fees they clients, our account. one a one of that associated million, and of that's changed last towards changed and quarter midyear comparisons year, still impacting $X beginning year. the merchant between with roughly $X million had

it impact a of terms us half won't it this in our then itself factor. it comparison So lap year, first be and of the for will and will

the to approaches interchange half and the that of revenues, gross on the that forward, an to individual fees risk model a the merchant I digits. because year, but again, fees those -- in has we they're But have don't impact when decision single growth mid-teens themselves. half on see the the and expect transaction revenues will to different take basis first for pay going merchant as going different fees again, directly as to a and real the impact, whether that low of So transaction client clients manage it it to lapped. half year, is low the a second willing and year impact willing our grow they're and an those the trend result, the in actually first for up be of of But by margins or improves just

Blair. Your of next from the line William from Jonathan Ho question comes

Just are wanted in Can penetrated terms how sort give you're bit that systems to a whether of more on transaction-based these transaction And your content existing to us maybe contracts? on guess, or of sense seeing, understand more adding of you're better terms you little existing in you plan those customers. progress a to adding systems? track of the I

those the We're we back good long head, of speaking, I can runway get numbers to off generally question, pretty say my Jonathan. off certainly a transactions would that's in early Yes, got just here those. we you a our with have that don't top I still left. business.

You from Tyler point can grow X next to XXXX cash to our saw presentation to revenue for the and how that years. the X transactions over at we flow

into deals stages, cross-sell. sales very And things starting place of still as to the that impact a very platform, early payments Tyler's innings very customer track this base software permitting. and fraction we with it's we've about integrating then traffic early pleased work again, more Lynn for But court of payments see motions. done have really we're billing in in earlier, that -- -- platform small capabilities, We're base, innings and with I but talked Yes. And plans least of very XXX year. initiatives build to like cross-selling of effective that and say driving penetrated and significant with so customer far in We've new licensing payments payments the utility early momentum, see we're that our with, think, at the to a on we've with our lot that our and products we're that that. the software the across I'd had continues of our

I add last that, I'd ago, now world. mean, And guess, Financial, Jonathan. to -- Rapid the Yes. disbursements I we acquired which X years is

are We surface scratched barely with we that. the --

our to kind -- So now still XXXX right point a lot again, I'd that. track of I presentation, if you say look we're do would you for to on sides. say both on

next line comes Housum the Northcoast Your Research. Keith of question from from

you you cybersecurity is level made guys a just we the concerns are the albeit and that in seeing but seeing the systems the the it And ransomware as seeing tailwind of of that a are shrinking? cybersecurity dealing small, that about replacing, of you agencies safety, life board? public the you're unpack an acceleration earlier think? cloud. to you cycle I cycle, seeing might comment we some a for but moving are terms driver in like refresh is of So that, are across we perhaps be now Are want to with public

there just tailwind, don't cybersecurity so before I It's comment there. all my we it and is that happens out we and view to just of would about a -- doing there's we're in realize a not know what's -- world. getting them. they the a of much on client. I view I -- look, It's when they not Generally, And as guess trusted they say it's us partner, them as it into help that say that. them event I hoping that to secure. their today's things know big quickly life. is. business but the It's But said, usually something one a necessarily there. a for. to it's huge fact out it's And fact we're more them driving cloud make is of that flips, will It's

Your Materne the of Kirk line question next ISI. comes from Evercore from

ARR flip, get as Lynn that if the does of it, Is that sense factoring of sales I'm XX% the what the earlier, apples-to-apples growth trying Does that in discussed include sort into just you're largely a on -- and to that's Brian, growth well. pricing? that is that of some seeing just or upsell? entail? guess cross-sell, synergies I

Yes.

biggest larger factor average is the size. deal think I

because mix of tax in it the we at customers we're be lumpy So necessarily with quarter is. what be this County, solution. consistent their saw seeing Georgia, move we that them, every quarter, kind But bigger one won't more that can least mix of highlighted Fulton and

from ARR $X.X think that I million in one.

flip. our generally more the mix. first Last larger seeing customers in quarter, So court had we

had This flipping. quarter, we the pellet in Kansas court

size around So upsell well. average also But in there those is it's clients. the more the of as

So I about added larger talked seen of bigger about relative flip. uplift uplift where be some X.X, -- they especially but the still when these to or the in to maintenance, we've of additional tends we've we've ones, X.Xx a new average think services products some the

combination of things. both a So those of

contract a the had flip And I where get business some Kirk, of revisit that. few ago. to fixed SaaS we pricing maybe think some had while been also for a And a Yes. of period sort business, an that occasions there's have may opportunity won we to is And time. concessions,

the Goldman from Gabriela Your question Sachs. Borges line comes of from next

business. some transaction on want you're to on I reconcile -- Brian, the of And transaction the making commentary

and specifically commented higher better around pricing. transaction You volumes

dynamic you the well. cross-sell help So and some on pricing, the an of on the of is understand, specific independent traction there And going you a of vice pricing dynamic net the contracts gross us you're touch better about to an maybe in well? is talked as around then function underlying making if additional as Is there and could rate talked just is Or earlier? about versa? you that volume from run changing the

Yes.

as of we're or able more to customer a about things to payment On the software base, we've drive Tyler generally pricing additional arrangement business continue talked into that we where pricing provide commodities better from we value achieve premium side, specifically, than reconciliations. sort pricing a type the like automated

embedded some the platform contracts. type the software just having So than for the pricing or the value additional software with better and lets payments-only payments customer of us get the creates

from improvements those, revenue-sharing as some we we they're payment margin saw, down also third-party our as to seen some benefited have be seeing history to there. some other records, So transaction price increases We've in well. higher year-over-year, we which then that also a better-than-expected revenues like continue us. add the even saw as well volumes with tend we're arrangements driver of processors And business of though

So that things sort of of a driving combination pricing.

next Your Schappel Mark from Markets. comes the of from question Capital Loop line

on year-end. anticipate And if I impact an next John, be year funds you remaining believe any falling come you must your these are ARPA business to the could end? on having today. comment the as ARPA funds just off I allocated by whether was demand wondering funds

spent committed XXXX to by end The of the generally of the by Yes. be and XXXX. end have ARPU funds

this that. majority, universe prospects, of process. they've think so across a probably XX%, sort I think, internal an largely, But the even and point been I mean commitments started mean, a committed maybe necessarily that the those XX%, more commitment And our of and I I buying have the at than doesn't think, majority customers and -- committed of strong

So have the ERP a committed even funds may they haven't issued for system, they new RFP yet. but

market the factor. believe a the in talked it factor We've conditions said about, we've but that we strong is not biggest

that through sort, into a some for deliveries and some commitments think continue some into turn subscription. then school funds they and X those it hardware them purchases don't -- to revenue they're they from or for after may then as ARPA be something onetime we recognition us, to ongoing And the of big a our expect buying turn of us and a like we But drop-off that it purchases. funds, Most XXXX X things an so purchases transportation creates solution that. fund have around out we years a used stream But tailwind of for expense us. recurring with generally, are expect really revenue of first when -- sort the of

factor not continue that think one I a while. market, the it's we'll the in for we're a tailwind, biggest So the seeing

Your Terry the next question Truist from Securities. comes of line Tillman from

asked been question traction with we still talk answered. one But about was, have could acquisitions. questions -- my I had maybe AI-powered of Most

I was on deck. think and called it your it's slide out

recreation acquisitions, stack these better be. stuff in up maybe recent how the in know possession -- I revenue probably curious of products. curious, in what small could of about terms did these kind the to of and trying would rank kind area were meaningful I'm you how engine Just go-to-market, your size or opportunities these understand your scale vend and and in the these size of and maybe the in versus stack with past? and but parks And Just jails

Yes. Thanks, Terry.

that a really is acquisitions of into these differentiator very that can So our successful, done mold we have I a been with of base acquisitions got the These leverage. early guess, I really we've we're to first where acquisitions. installed position said, we've like fit all, which that take commanding product

of of think one X Tyler's -- different each this And have these is that think these X clearly trajectories, box. than which I rate? at are faster is I a can criteria our overall one growth of grow ticked another all rate

of our higher own rates but it's I measurable. AR to probably is bit -- a that And opportunity. our expect the I our of coming acquisition think field the for originally has talked solutions, we operations, outperform ERP Again, The of to that RexourceX based near-term lot sort in all outlined. its sufficient sort lot excitement. them interest CSI -- to those about Inspect criteria there's on a bigger right, But not new going product. a I'd of of which drive as revenue win drive also of there, expectations lot little of a really necessarily market will in.

running and acquisitions, appealing off do. me. all seeing generally market and what's a about we really we on to are So three of start, based these that's these. the and and we're off But three -- these We're to good already every we're excited in acquisition excited movements about

And for collectively, revenues around of quarter. are million those X $X the

couple total. customers. interestingly, significantly called Tyler's But we a were small compared of deals with those So deals yes, to large out sized

of County $X CSI, ARR the from million product. Dallas almost CSI the So

So relative million $X you group a ARR adding is revenues, around that business in nice that off of quarter see to start. add a to $X -- a collectively contracts doing how single million that are

of the Alex from Your from line Zukin next comes question Wolfe Research.

for if think, since like QX. after the raised top time actually guide correct wrong, year full the XXXX I first line So me that almost the I'm you've this is, but

to walk So what's that? new just do you You usually Is as and flips? from through arrangements do about talk it that you don't above. expectations? to usually of revenue is the confidence don't improving giving maybe the Is It all might Lynn, demand incremental might do But what guys that. it M&A. do? conviction kind driving It transaction and like be confidence something be of it that

of my point, homework good just because got was see me recall the about the the you improved. we're and not come and for couldn't our on was off just management it, it sales We've I there. a really years in I quarterly And say I when Alex. good done market, it's what out we're we And it's just what visibility seeing what XX We to but up And not told We're was And ever Yes, you we'd thinking last we'd earlier not time do. I ago. I -- meetings. actually to as things conservative, would myself, factors. our it's to gives demand talked did to we're then a outlook. a we skis. go it's We a like of going say way us were just ahead going get mean, do we lot tell combination lot wouldn't do it's like of it, seeing to were we I our lining point you it. out, typically confidence something in do that to a but that of --

is, couple the team, employees, for you saying one not or of just of it's whether tell I've of bit. the town switched today. more to coming I would years, a than I in I've little year the the and mantras that within years, the am months, but I been a been couple I management into can about this Tyler last couple that have last last really And hall say, future all what never of Tyler's the to excited

got am Tyler's right lot today. at I singular clicking we're There's just we've So right going an I've cylinders never it's been sit not I aligned now, and We're more then just just in a all future again, And but confident management initiatives things of on a of team going right. like singular I vision, focus. sitting on going of on, mean Tyler. we lot lot back. things a There's now. where a with

of quarter, of to in expected rest QX, might around the timing later the the for seen not that revenue, additive truly revenue pull transaction-based or was obviously, it just outperformance of year. forward what have we especially we was the And in sort things the generally,

so us the year. for the that outlook And full drove raising

a to year. more market higher love you incrementally to and I level Is you this, never But because a as a it, early seems throttle margins, coming asked conviction guess, there And faster in a little decade confidence once world in where both inorganic and the given we this love usually of pace? do question, call push I organic it particularly bit the we follow-up does and/or on this efficiency. maybe investments, a be seem like at

It's question, Alex. a good

relates of think got that place approach. like plans our we'll I investment. our margin just deviate We've mean capital disciplined balance practice in from allocation don't like sit I now, historical I as it right our where -- now. I taking and right a we to we I know

We've going and XXXX, don't growth and plenty margin lot isn't investment. think to time on. to us of this And say around for a got hear revenue the we're of like going going initiatives this is now I said, I So you're investments both expansion. XXXX, hey, where say, elevated

next quarters. I us that several think So the of hear over out you'll don't

This Lynn over to closing call does remarks. conclude our question-and-answer session. I will for back Moore now turn the

us today. Thanks, for Krista, thanks, joining and everybody,

or Thanks again, day. any feel contact have to have a you myself. please Brian Miller free and If great further questions,

Thank This and for you you now may concludes call. disconnect. your today's participation, conference