Tyler Technologies Inc at UBS Global Technology and AI Conference Summary

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

Question: Taylor McGinnis - UBS AG - Analyst : <_ALACRA_META_ABSTRACT>Yes. Brian, maybe a good place to start would just be at a high level in terms of what you're seeing in the demand environment. I know you guys talked at the start of this year that there was some disruption on your most recent earnings call. It sounds like you didn't see any big impacts from changes with DOGE or the government shutdown. So maybe you just could give a state of what you're seeing today. Brian Miller - Tyler Technologies Inc - Chief Financial Officer, Executive Vice President, Treasurer Yeah, absolutely. As you know, we serve exclusively the public sector. So we're really focused on what's going on in that market. And we've seen a pretty stable demand environment over the last several quarters. We've talked about really for the last I guess, almost two years, an active market that demand as we look at leading indicators like the number of RFPs we're seeing each quarter, how those deals are progressing through the pipeline, all are at least stable at kind of elevated levels. So we're seeing a really consistently strong demand. There was some disruption, not really affecting the actual demand, but the timing in the first quarter. There were a couple of things specific to Tyler. We saw some pull forward of demand of bookings into the fourth quarter of last year because of the expiration of the federal stimulus, the ARPA funds. And then we saw around all the noise around the new administration, around DOGE, around tariffs, LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 3:15PM, TYL.N - Tyler Technologies Inc at UBS Global Technology and AI Conference all the things that were going on in the first quarter, there were some pauses in processes as our customers or prospects try to figure out did any of this really affect them. Ultimately, I think the conclusion was, for the most part, no. It didn't really change what they were looking to do with Tyler or currently doing with Tyler. And that's all pretty normalized by now. And then the federal government shutdown even in the most recent quarter had no material impact on us. So less than 5% of our business is with the federal government, and there really wasn't any kind of trickle-down effect. So whatever disruption was in the beginning of the year has really seemed to have kind of worked its way out, and it's a good demand environment right now.

Question: Taylor McGinnis - UBS AG - Analyst : Yeah. I want to talk about that runway. But before we get there, I think if I reflect on 2025, in my conversations with a lot of investors, I think there was greater appetite to own vertical software players over horizontal fee-based SaaS companies where there's a lot of concern on potential AI disruption. There's concern on where are we in the maturity curve. So maybe on the first part on AI, I'm curious for how Tyler is evolving its product strategy to make sure it's keeping up with the trends that we're seeing in AI. So one common frame that we hear in our conversations is that in order for AI to be effective, it has to be domain specific, right, and tailored to specific use cases. So is that something that Tyler's experience in its own development of AI? And maybe you could just talk about like whether or not that gives Tyler sustainable moat as these trends continue to emerge. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 03, 2025 / 3:15PM, TYL.N - Tyler Technologies Inc at UBS Global Technology and AI Conference

Question: Taylor McGinnis - UBS AG - Analyst : Perfect. And of those use cases that you mentioned earlier, I'm curious which ones you think are getting the most traction or which areas is the government prioritizing to automate? And maybe as a second part to that question, I know it's very early days. And as you mentioned earlier, the government is slow to modernize. But just in terms of when you think we could start to see more widespread adoption of AI, just what are your thoughts there?

Question: Taylor McGinnis - UBS AG - Analyst : Perfect. And I would imagine with the introduction of the cloud, you already started to see the competitive landscape shift. I would imagine there's going to be a next evolution of that with the emergence of AI. So could you talk about just what you're seeing in the competitive environment in terms of AI? Who do you see as the biggest competitors today? Would that be the government creating their own in-house solutions? Is there native AI companies that you guys are tracking closely? Maybe it's just the incumbent SaaS firms themselves. But what are you seeing in terms of the competitive landscape and how that might be shifting with AI?

Question: Taylor McGinnis - UBS AG - Analyst : Yes. That makes sense. Let's shift to the non-AI opportunity. So as I mentioned earlier, I think another key investor debate is just where we are on the maturity curve. So I'm curious if you believe that your focus on public sector and government lends itself to more runway ahead. You mentioned earlier, governments are slow to modernize. So maybe you could just talk about the opportunity that's still sitting ahead of Tyler in terms of cross-sell and upsell and where your base is in migrating to the cloud as well, too.

Question: Taylor McGinnis - UBS AG - Analyst : Yeah. And how would you characterize the current pace of migration activity compared to what we've seen in the past because you mentioned you're at this 50-50 split? And I think typically, when you get to that point, there's this concern of, okay, if you had a lot of the low-hanging fruit that's moved, right? And might this next tranche take a little longer. It sounds like you guys are pretty comfortable that you could continue to see a good pace of migration for the next two to three years. So maybe you could just tell the audience like what's giving you that comfort? And if there's any catalyst to push things a little bit faster versus what we've seen?

Question: Taylor McGinnis - UBS AG - Analyst : Yes. And as you approach this tranche of customers that is larger, more complex, could you talk about how the learnings you've had in the past have now influenced how you're approaching this next tranche of customers in their own migration path? So I guess, how is your value proposition evolved from just security benefits? You guys have talked about driving this consistent, let's call it, like a 2x revenue uplift. So maybe you could talk about how you see that trending going forward as well.

Question: Taylor McGinnis - UBS AG - Analyst : Yes. You mentioned version sprawl, and I know that's been a strategic priority. So could you talk about how version consolidation is trending amongst your customer base? And under what time frame do you expect to sunset most of the older versions?

Question: Taylor McGinnis - UBS AG - Analyst : Perfect. And let's talk about the cross-sell opportunity. So you've talked about ambitions to get from 2 to 3 products to 8 to 10 per customer. So does Tyler have any initiatives in place to promote that? And what timeline are you thinking around that?

Question: Taylor McGinnis - UBS AG - Analyst : Yeah. I appreciate the thoughts on the client experience initiatives, and you mentioned a little bit how that's influencing cross-sell and how you guys are thinking about product strategy. But could you just give an update on how that's progressing overall and what metrics are you tracking internally to measure the success of those?

Question: Taylor McGinnis - UBS AG - Analyst : Perfect. And Brian, last question for you, just to wrap this all up. So looking towards your 2030 goals, maybe you could just help investors think through how you're thinking about balancing organic investment with M&A. I know there was a call mentioned on the last earnings call about taking a more proactive approach. So maybe you could just give a little bit of color about what you meant by that. And as investors are trying to track your progression to your 2030 goals, what metrics would you highlight that they should be following closely?

Question: Taylor McGinnis - UBS AG - Analyst : Perfect. Well, we'll leave it there. Thanks, everyone, for attending, and let's give Brian a round of applause.