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: David Chen - Morgan Stanley & Co LLC - Analyst
: Phenomenal. So yeah, so you mentioned a number of different areas of public admin, public safety, health, K-12. So just give us a sense for where
you came from, in terms of some of the core strength of the company and then like where you're going?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: That's great. Thank you. Now, a lot of the tariffs that you just mentioned, let's kind of get the question out of the way. We've obviously been on lots
of investors' minds in terms of the focus by the Dodge department on potential government cuts and (multiple speakers) I know exactly -- just get
it out of the way. So yeah, so just impact on your business one way or another.
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Okay. All right. So the -- it's 95% state and local and then a solutions can actually drive efficiency. What about the amount of funding that any state
or local gets from the federal side?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Yeah. I'm just looking forward just what's driving the business? You already mentioned focus on efficiency as one, you mentioned just moving from
manual paper-based processes. Any other kind of key drivers back in COVID, we were talking about like market funding, for example?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: All right. AI has been a big theme for Tyler over the last couple of years. So just give us a sense for where are you on that journey? Are you ready
to kind of sell AI-specific modules? I know you've made some acquisitions. You might be making some announcements on Investor Day, so just
give us a sense for where you are.
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MARCH 03, 2025 / 10:25PM, TYL.N - Tyler Technologies Inc at Morgan Stanley Technology, Media & Telecom
Conference
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: So there will be probably a combination of adding AI across probably, as you said, but also you will be charging extra for certain AI capabilities.
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MARCH 03, 2025 / 10:25PM, TYL.N - Tyler Technologies Inc at Morgan Stanley Technology, Media & Telecom
Conference
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Level set us on the -- just the cloud transition for the company. When did you start just top line metrics for how we should track it and how is it
going?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: That's the aggregate. Yeah.
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MARCH 03, 2025 / 10:25PM, TYL.N - Tyler Technologies Inc at Morgan Stanley Technology, Media & Telecom
Conference
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Any particular vertical that's faster to move or others that are a little more --?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Okay. What about -- you mentioned the move. So give us a sense on where you are from a time line perspective and then maybe just the impact
on the income statement?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Great. What are the most exciting parts of your business? You hinted at was your NIC acquisition in 2021. It's been a few years now. I kind of feel
like last two years, that's all we talked about with NIC.
I say, but this I assume the integration is done, but just like how are we doing on payments, cross-sell across the organization?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Yeah, that's what sounds super interesting. Like, when you say 95% is state and local, most of that is local?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Yeah. So how should we think about Tyler? You mentioned the direct effort to go after the state opportunity with specific sellers like over the
several years. What do you think that balance?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: Right. We only have like maybe 2.5 minutes left. I want to see if we have any questions from the audience. And if we could just bring the mic over.
And we have one over here. Great.
Unidentified Participant
Just really quickly, could you help me understand how the company is differentiated from its customers, both the big and the small?
Question: David Chen - Morgan Stanley & Co LLC - Analyst
: All right. Fantastic. Brian, thank you very much.
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