The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gabriela Borges - Goldman Sachs - Analyst
: I'm Gabriela Borges and my colleague, Callie Valenti, is stage left.
Brian, I want to start with a little bit of the demand environment that you're seeing because it's been remarkably resilient, especially relative to the
rest of software. So give us a little bit of color on what you're seeing in the government verticals, federal, state, local, and why you think that the
demand picture has held up so nicely for you here today.
Question: Gabriela Borges - Goldman Sachs - Analyst
: Well, I'll pick up on your comments on cloud, because we were just chatting about it in the back of the room, how we're about a year on from the
Investor Day targets that you provided, and during that time, the cloud transition at Tyler has really picked up momentum. So walk us through a
little bit on the progress you've made so far with converting existing customers from on-premise to SaaS, and how do we think about the number
of conversions that you still have to do to get to your 80% converted target?
Question: Gabriela Borges - Goldman Sachs - Analyst
: How do you think about, from a go-to-market standpoint, or even from a customer incentive standpoint, the nuance between carrots versus sticks?
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SEPTEMBER 11, 2024 / 8:45PM, TYL.N - Tyler Technologies Inc at Goldman Sachs Communacopia & Technology
Conference
Question: Gabriela Borges - Goldman Sachs - Analyst
: Let me ask you one more on the cloud transition before turning it over to Callie on the product cycle environment. You mentioned the backend
infrastructure that you have, so the Dallas data center has already been exited, you have a second data center, and then you have the collaboration
with AWS. Talk to us about how these pieces fit together and how should we be thinking about the cost profile of the business after you exit the
second data center, I believe it's at the end of 2025.
Question: Gabriela Borges - Goldman Sachs - Analyst
: And Brian, presumably that ultimately lowers your barrier to entry or the time it would take for you to negotiate a deal. Is that fair?
Question: Gabriela Borges - Goldman Sachs - Analyst
: Is that fair that the self-funded contracts make it easier for you to grow your business?
Question: Gabriela Borges - Goldman Sachs - Analyst
: Absolutely. Let me pause for a moment. Any questions from the audience? [Please, yes.]
Unidentified Participant
Can you talk a little bit about, across your entire product portfolio, which products tend to be more of a push and which products tend to be more
of a pull from organizations to get a sense of the demand profile across your solutions?
Question: Gabriela Borges - Goldman Sachs - Analyst
: Let me ask a little about the success that you've had with M&A. You mentioned NIC in the last few minutes and certainly Tyler has a long history
of M&A going well before NIC. When you look at the roadmap and you plot out your competitive positioning versus the broader world of software
that sells into the government, how do you think about where you want to focus time and energy and are there areas in the roadmap that stand
out to you either from an organic development standpoint or from an M&A standpoint that are particularly interesting?
Question: Gabriela Borges - Goldman Sachs - Analyst
: It lends itself a little bit to a question on the innovation that you're seeing on the private side. Callie and I spend time in a number of different
sub-sectors of software, and we tend to see a lot of competition, a lot of fragmentation. It's a little bit of a two-sided question. On the one hand,
the barrier to entry is incredibly high. On the other hand, does that mean that there is less interesting things happening on the private side for
Question: Gabriela Borges - Goldman Sachs - Analyst
: Yeah, very interesting. Well, I think we're out of time. Please join me in thanking Brian for his time this afternoon. Brian, thank you.
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