Tyler Technologies Inc at UBS Global Technology and AI Conference Transcript

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

Question: Joseph Hickey - UBS Equities - Analyst : So Brian, maybe just to kick things off. For those of us in the room not as close to the Tyler story, maybe you could give us a bit of background of the business in general. Obviously, a lot more public sector exposure than a lot of enterprise-focused software companies that are here at our conference.

Question: Joseph Hickey - UBS Equities - Analyst : Got it. And when we think about just with -- you mentioned roughly 5% of your business is loosely federal. Is there any impact we should be thinking about with just the recent election cycle roughly a month ago? Or is that a little less material just given so much is --

Question: Joseph Hickey - UBS Equities - Analyst : And just thinking about like the backdrop of demand, what are the other key significant drivers? And how healthy is that right now just in terms of --

Question: Joseph Hickey - UBS Equities - Analyst : Got it. Need to modernize. With the multi-decade systems, it's terrifying. There's a lot out there still running on COBOL and whatnot. I'm curious, like with the advancement of just generative AI and developer tooling, code-completion tools, like that's been one area that other people we've spoken to say it's much easier to refactor old applications to something new because you get help from that. Do you see any increased velocity from your customers to that? Or is it still just very steady as you alluded to?

Question: Joseph Hickey - UBS Equities - Analyst : Got it. Last year, on the Analyst Day, you put out some longer-term 2030 targets. I believe low double-digit loosely recurring revenue growth, CAGRs. Help us just understand the bridge to get there, the different moving pieces. You've got -- you've made a number of very significant acquisitions, touching on things like payments or underlying data platforms. But how should we think about the drivers to achieve that over that long period of time and --

Question: Joseph Hickey - UBS Equities - Analyst : So I think I have a parking ticket I need to pay when I get home. So it's running through that. When you think about like the roughly two to three use cases that could be 8, 9 or 10, are there any natural areas that cross-sell really easily, like things that attach really naturally? And like what are the lowest hanging fruits?

Question: Joseph Hickey - UBS Equities - Analyst : With the broad number of applications Tyler has, how do you think about just maybe areas you might look to inorganically or just organically develop internally? Are there any hot areas that you feel like there are just gaps in the current product portfolio that you pursue? Or --

Question: Joseph Hickey - UBS Equities - Analyst : Got it. And maybe just dovetailing off M&A. How do you think about just capital allocation, whether it's paying down some of the debt you have or think about share repurchases? I think you guided to, what, low 20s free cash flow margins. How do you prioritize that?

Question: Joseph Hickey - UBS Equities - Analyst : Got it. You brought up a key focus area, obviously, the focus on shifting to the cloud. And you have some ambitious targets of just flipping some of those existing maintenance customers over to the cloud. So could you help us understand maybe what customers maybe are still hesitant to move over and what the roadblocks and blockers and things you can help alleviate to -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 9:55PM, TYL.N - Tyler Technologies Inc at UBS Global Technology and AI Conference

Question: Joseph Hickey - UBS Equities - Analyst : Got it. I know we're almost out of time, but I was going to squeeze in two just from the audience. One is you were touching on just efforts to migrate to the cloud and how it can be costly to manage all these different past versions. When you get customers to the cloud, does that make it easier to cross-sell other products just naturally?

Question: Joseph Hickey - UBS Equities - Analyst : That final one I'll squeeze in is, how many competitors do you typically compete with during an RFP? And what are you doing that your competitors aren't doing? Maybe that depends on what exactly you're targeting --

Question: Joseph Hickey - UBS Equities - Analyst : Got it. That's great. Well, I know we're a little over time. But thank you, Brian, so much for being with us today.