Tyler Technologies Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : So Jeff, one of the things that I really appreciate about Tyler. The company has been around since the 1960s. And you've been with Tyler Technology since 1991.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : So I feel like you have a unique perspective here on how a company proves durable across multiple decades, multiple generations. What would you describe as Tyler's core competencies? And how do you now translate that to an AI, first of all?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Well, so it leads really nicely to a question. What do you think the next 30 years, and 30 years is a long time, so maybe we say the next three to five years, we all experienced some of the government organizations that you work with from a consumer-facing or a user-facing standpoint and the technology really quite painful. So give us a little bit of a sense, what are you most excited about if you were to take ERP, for example, in terms of being able to move that technology stack forward, are there one or two product cycles that you would put in front of us watch the space.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. And it leads nicely into a question on some of the near-term priorities as well because this year, there has certainly been an elevated volume of conversation on modernizing government infrastructure, primarily in the federal level, but certainly, there is enough impact on state and local as well. The same forcing function could be had on state and local. So talk to us a little bit about, are you seeing more catalysts for change? And on the flip side, has there been any incremental disruption into your typical sales processes in your compensation?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. Well, maybe the other way to ask this question. So you're talking about the growing effect and the pressure on labor. What do you think needs to happen to accelerate change or to take the technology budget, however you want to benchmark them at your customers. One could argue that the technology budget should be meaningfully higher on how state and local government thinks about technology adoption. So curious your thoughts on that. What do you think has to happen to level up and modernize?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. Well, actually, it's a great opportunity to talk a little bit about AI. And more specifically, how do you get your customers comfortable at this early stage with some of the more leading-edge technology products that have -- or is the answer you've just got to wait and see how this next phase of private adoption plays out?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. Fantastic. I'll ask one more here and turn over to more priorities as a COO. I know you're entering -- I'm guessing you're entering annual planning in the next several weeks. What are you most focused on? What are you most excited to work on?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. On the cloud transition, Tyler has made great progress to date. There's still a lot of work to do. Can you just level set us on the work that you've done, what you've learned from the conversions to date and how that's informing the next cohorts that are approaching?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And on that -- those larger customers, the on-prem base currently is more heavily tilted to those larger customers just given the complexity. As you approach the splits that are expected to peak in '27 and 2028, how are you thinking about the kind of tariffs versus sticks of getting those customers over?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : That make sense. And version consolidation has been another key goal of transitioning these clients over. Could you give us an update on the timeframe where you are with the sunsettings on older version?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : That makes sense. And your partnership with AWS is crucial for this scalability. How are you thinking about that partnership evolving as more of the large and complex customers do begin to migrate over to the cloud?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And we talked about how the public sector can be a bit slower moving to adopt these new technologies. But have you seen a shift in motivation to move over to the cloud, just given these AI-driven solutions? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 5:50PM, TYL.N - Tyler Technologies Inc at Goldman Sachs Communacopia & Technology Conference

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Let's talk about payments.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : So you've got a group of investors here, and we have our external data points. We have all of the incredible customer conversations that you're having and you're on a total roadmap. How would you advise us to model payment? Meaning, how do you think about the structure of adoption? How do you think about being above your long-term target today, 14% to (inaudible) 13%. Give us a little bit of a flavor for how you internally think about payments.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : It's interesting. If you look at your payments revenue today, I know part of it is inherited. But how do you think about the percentage which is differentiated as new target versus the part that is commodity?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Well, the flipside of that, though, is you have a number of customers that don't currently engage with you on payments. So how do you think about that next tranche of customers for payment structure? How do you target and then encourage those customers to adopt?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst :

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. So currently, your customers on average have two to three products in Tyler's portfolio, but there's a broad depth of products available, and you've talked about driving that closer to 8% to 10%. To start it off, like what do you see as the most not easy, but across all that makes it a sense where products are most complementary to each other where you have the most success?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And how are you going to market? What's the sales motion look like for making sure that these local governments know that they have all these solutions available through Tyler?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And so Tyler has had an M&A story for a while. How do you ensure that all of these products come together cohesively, it feels like one product? I know you hired Andrew Kahl as like the first Chief Client Officer, how does that fit into the whole footprint?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And given the breadth of the portfolio and the installed base, obviously, cross-sell is such a big part of the story. But are you thinking about the white space and both state and local government is still -- there's a lot of room to run. How do you think about that versus cross-sell and prioritization? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 10, 2025 / 5:50PM, TYL.N - Tyler Technologies Inc at Goldman Sachs Communacopia & Technology Conference

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : And are there any like specific initiatives, since I know he's fairly new to the role, that you've seen customers speak to or that has been driving more (inaudible)

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah, actually, once in a while, we have a similar issue years ago with Goldman Sachs and all of the different pieces of Goldman Sachs, and we came up with the One GS initiative. But I guess my question for you is, you mentioned the technical infrastructure. Maybe give us a couple of examples of that. And that's not easy what you're describing to get all of these pieces of Tyler, which has been around since the '60s in various shapes of forum to communicate. So how are you doing that internally? Maybe give us a little more depth there.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yes. And I know your pretty early days. Is this a multiyear initiative? How soon do you think before you're at the holy grail the company working seamlessly on project success?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : So there's an obvious way to measure success, which is a number of products for the customer. I'm curious what are the metrics you're tracking internally because customer experience, there are all kinds of ways we can measure that.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. Last one from us. So Maura already touched on some of the M&A success that you've had. As COO, what is the number one learning that you've taken away from all of the numerous M&A deals that you've done that's now informing your before M&A strategy?

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Jeff, thank you so much for your time. Please join me in thanking Tyler. Please, question on the back. Unidentified Participant Thank you for your presentation. (inaudible - microphone inaccessible) Could you help me understand what the -- there are like more structural protections that the company has that stops new entrants. I'll talk about if there is a minimum R&D expenditure that you need to do to remain competitive. I mean, what keeps some of the other folks down step of coming and attacking you.

Question: Gabriela Borges - Goldman Sachs Group Inc - Analyst : Yeah. Very good. Thank you for the question. Thank you, Jeff.