Tyler Technologies Inc at Piper Sandler Growth Frontiers Conference Transcript

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

Question: Clarke Jeffries - Piper Sandler - Analyst : All right. Perfect. Well, we can kick it off with a little bit of just an intro on Tyler for those who may be less familiar, at a high level, what is Tyler technology is all about and what's the mission of the company?

Question: Clarke Jeffries - Piper Sandler - Analyst : Yes, absolutely. And so it's a very unique market. I mean, the governments don't go out of business. There's not new ones being created each day. Hopefully, and so at how level, what drives growth in that market? How do you have mechanism to grow well above GDP? What -- maybe what is the market growth rate for government software and the strategy kind of that. 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, 2024 / 1:00PM, TYL.N - Tyler Technologies Inc at Piper Sandler Growth Frontiers Conference

Question: Clarke Jeffries - Piper Sandler - Analyst : Replacement and then on the margins and transformative initiatives, either through the citizen level or administratively trying to operate municipality. Well, then let's shift gears into what I think has been the most interesting dynamic of the business. Maybe for the last 12 months, maybe 12 months with the SaaS transition. Could you recap where the company stands today in terms of progress with the SaaS transition. It's been an interesting year in terms of some of the metrics that you put out.

Question: Clarke Jeffries - Piper Sandler - Analyst : Yes. And maybe you could talk about hitting that 90% business as you mentioned (inaudible) majority year. But it's been a pretty steady ramp that I don't think I certainly wasn't expecting it to go above this 90% level in this year. What do you think about the big drivers that improved it to that 90% level versus the 70 and 80. I know that had been historically some holdout categories, but what changed with those hold-out categories to really got to this level.

Question: Clarke Jeffries - Piper Sandler - Analyst : Heavy in Q3. 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, 2024 / 1:00PM, TYL.N - Tyler Technologies Inc at Piper Sandler Growth Frontiers Conference

Question: Clarke Jeffries - Piper Sandler - Analyst : Yes. Well, let's maybe a little deeper and talk about the maintenance revenue today, $450-odd million of maintenance revenue. And one of the big initiatives had been the versioning, moving a lot of on-premise customers to the most recent version and helps prepping them to do a SaaS migration. Where do you sit today in terms of that versioning journey? And how close are you to bringing that maintenance base to a close current version?

Question: Clarke Jeffries - Piper Sandler - Analyst : Yes, absolutely. And so then maybe we can talk about this, you laid the groundwork to start really moving more aggressively towards the migration journey. Maybe can we talk about in this post versioning framework, what are the ways you'll incentivize the flips and -- what are the dynamics? And how often a customer may decide their contract terms? And are they saying, no, I don't want to move or yes, I want to move?

Question: Clarke Jeffries - Piper Sandler - Analyst : And then I guess last question on the mechanics of this. What's the expectation for when we really see that maintenance revenue start to decline? Because I think what's interesting to me is the bookings and the backlog and maintenance are actually up. Even though you do have conversions and migration, there is a baseline of a tailwind from pricing. And so it.

Question: Clarke Jeffries - Piper Sandler - Analyst : So maybe we can talk about margins because I think overlapping with all of this migration on the SaaS side is a margin benefit or a margin change. You've touched on versioning and cloud efficiency in some of these cloud built versions. But maybe we could talk about the efficiency benefit from cloud operator pricing versus the software-driven games? How do we think about some of these things being linear with the revenue and some of these being lumpy.

Question: Clarke Jeffries - Piper Sandler - Analyst : I think that's all we have time for. But Brian, I really appreciate you making the national. 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, 2024 / 1:00PM, TYL.N - Tyler Technologies Inc at Piper Sandler Growth Frontiers Conference