Financial Data and Key Metrics Changes - Total revenues for Q4 2022 were $452.2 million, an increase of 4.3% year-over-year, with organic growth of approximately 6% excluding COVID-related revenues [12][19] - Recurring revenues accounted for nearly 83% of quarterly revenues, with subscription revenues increasing by 11.9% and organic growth of 14.3% [5][14] - Non-GAAP annual recurring revenue (ARR) was approximately $1.50 billion, up 7.5%, while SaaS software ARR was $440.6 million, up 18.5% [15][19] - Operating margins were pressured due to the shift to cloud and increased R&D expenses, with an estimated impact of bubble costs on 2023 non-GAAP operating margin of approximately 130 basis points [15][25] Business Line Data and Key Metrics Changes - Subscription revenue growth was driven by a shift to SaaS, with 86% of new software contract value being SaaS compared to 77% in Q4 2021 [7][14] - The Digital Solutions division signed significant contracts, including a new contract with the Kansas Department of Revenue and several SaaS agreements with various states [8][9] - Professional services revenue rose 2.8%, with an organic growth of 8.5%, while licensed revenue declined over 60% due to the shift to SaaS [13][14] Market Data and Key Metrics Changes - The backlog at the end of Q4 2022 reached a new high of $1.89 billion, up 5.2% [15] - Bookings for the quarter were approximately $464 million, flat compared to the previous year, with organic bookings up 2% [16] - The company signed 571 new payments deals in 2022, contributing over $13 million in annual recurring revenue, with a significant portion sold to existing clients [10][19] Company Strategy and Development Direction - The company is focused on a cloud-first strategy, aiming to exit proprietary data centers by 2024 and 2025, with expectations of significant declines in licensed revenues replaced by recurring SaaS revenue [22][25] - Strategic acquisitions were made to enhance digital solutions and payments business, with three transactions completed in 2022 [24] - The company anticipates annual organic revenue growth in the 8% to 10% range over the next five to seven years, with consistent long-term margin expansion beginning in 2024 [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects, citing healthy budgets among clients and robust market conditions [37][64] - The company expects 2023 to be a margin trough year due to the transition to SaaS and associated costs, with a return to margin expansion anticipated in 2024 [25][36] - The impact of Section 174 tax changes is expected to significantly affect cash tax payments in 2023, potentially increasing cash taxes by around $100 million [21][61] Other Important Information - The company repaid $90 million of term debt in Q4 2022, with a total of $755 million paid down since the NIC acquisition [17] - The company received recognition for its environmental, social, and governance practices, being named to the Dow Jones Sustainability Index North America for the second consecutive year [30] Q&A Session Summary Question: Margin troughing in '23 and future expectations - Management indicated it is early to provide detailed projections for 2024 margins but expects an inflection point in 2023 as recurring revenues offset declines in licenses [31][32] Question: Impact of federal and state budgets on revenue - Management noted that client budgets are generally healthy, with access to federal funds contributing to a robust market environment [37][38] Question: Pace of conversions to SaaS - The company reported an increase in conversions, with 336 flips in 2022 compared to 239 in 2021, and expects this trend to continue [41] Question: Operating margin performance in Q4 - The decline in operating margins was attributed to a significant drop in licensed revenues and higher R&D expenses due to unexpected capitalization changes [42][43] Question: Subscription ARR growth expectations - Management expects subscription bookings and ARR to accelerate in 2023, driven by a strong pipeline and increased transaction activity [58] Question: Procurement cycles and market conditions - Current procurement cycles are normal, with no significant delays noted, and the market remains healthy with strong client budgets [64]

| --- | --- | |-------|------------------------------------| | | | | | | | | | | | Q4 and Fiscal 2022 Earnings Review | | | | Statement Regarding Use of Non-GAAP Measures Tyler Technologies has provided in this presentation financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income ...

Tyler Technologies, Inc. (NYSE:TYL) Q3 2022 Earnings Conference Call October 27, 2022 10:00 AM ET Company Participants Lynn Moore - President & Chief Executive Officer Brian Miller - Chief Financial Officer Conference Call Participants Sami Badri - Credit Suisse Pete Heckmann - D.A. Davidson Kirk Materne - Evercore ISI Michael Turrin - Wells Fargo Securities Matt VanVliet - BTIG Joshua Reilly - Needham Alex Zukin - Wolfe Research Charles Strauzer - CJS Securities Saket Kalia - Barclays Terry Tillman - Trui ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File Number 1-10485 TYLER TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) | Delaware | | 75-2303920 | | | --- | --- | --- | --- | | (State or other jurisdiction of | | ...

Investor Presentation August 2022 | Forward-Looking Statements Tyler has included in this presentation "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as "believes," ...

Financial Data and Key Metrics Changes - Total revenues grew approximately 16% to $468.7 million, with organic growth of 6.2% on a GAAP basis and 5.8% on a non-GAAP basis [19][7][8] - Subscription revenues rose 28.2%, with strong organic growth of 14.1% [20][22] - Cash flows from operations reached $76.7 million, and free cash flow rose to $60 million from negative $33.5 million last year [24] - Non-GAAP ARR was approximately $1.49 billion, up 16.3% [22] - Backlog at the end of the quarter was a new high of $1.85 billion, up 13.9% [23] Business Line Data and Key Metrics Changes - Services revenues were flat on an organic basis, impacted by labor market challenges [8][20] - Software revenues rose 18.3%, while service revenues were essentially flat on an organic basis [20] - Transaction-based revenues, including NIC portal and payment processing, were $154.4 million, up 29.1% [22] - The company added 167 new subscription-based arrangements, representing approximately $115 million in total contract value [21] Market Data and Key Metrics Changes - The public sector market environment remains strong, with a 21% increase in bookings [6] - The company successfully extended enterprise contracts in multiple states, including West Virginia and Kentucky [11] - The active cross-sell pipeline doubled in value from Q1, indicating strong market demand [12] Company Strategy and Development Direction - The company is focused on leveraging its competitive position and ongoing investments in strategic initiatives to capitalize on the strong public sector market [31] - The integration of acquisitions, including NIC, VendEngine, and US eDirect, is expected to enhance cross-sell and upsell opportunities [32] - The company is prioritizing cash flow to reduce debt while retaining flexibility for strategic acquisitions [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating solid financial results despite rising inflation and interest rates [34] - The public sector market is viewed as more stable compared to the private sector, with recurring revenues comprising approximately 80% of total revenues [35] - The company is on track with major strategic initiatives, including cloud migration and product optimization [37] Other Important Information - The company expects total revenues for the full year to be between $1.835 billion and $1.870 billion, implying organic growth of approximately 9% [28] - Interest expense guidance was adjusted to approximately $30 million, reflecting increased costs due to rising interest rates [28][30] Q&A Session Summary Question: Sales cycle for larger deals and connection to state and local budgets - Management indicated that sales cycles are normal, with a healthy market environment and strong state and local budgets [41][44] Question: Progress on hiring for professional services - Management acknowledged challenges in hiring but plans to continue growing the implementation team [52][53] Question: Success in converting maintenance customers to SaaS - The primary success in conversions is seen in the ERP product suite, with expectations for continued momentum [66][67] Question: Impact of rising interest rates on margins - Management noted that margin impacts are expected as new hires ramp up to become billable [99][100] Question: Current state of public safety market - The public safety market is returning to normal, with competitive advantages noted in mobility and product integration [110][112]

PART I. FINANCIAL INFORMATION [Financial Statements](index=2&type=section&id=ITEM%201.%20Financial%20Statements) This section presents Tyler Technologies' unaudited condensed consolidated financial statements, including income, balance sheets, and cash flows, with detailed notes on accounting policies and acquisitions [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Tyler Technologies reported significant revenue and net income growth for the six months ended June 30, 2022, with increased assets and positive operating cash flow Condensed Consolidated Statements of Income (Six Months Ended June 30) | Metric | 2022 (in thousands) | 2021 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $924,792 | $698,877 | +32.3% | | **Gross Profit** | $385,866 | $326,268 | +18.3% | | **Operating Income** | $112,625 | $76,499 | +47.2% | | **Net Income** | $79,930 | $62,506 | +27.9% | | **Diluted EPS** | $1.88 | $1.48 | +27.0% | Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $253,062 | $309,171 | | Goodwill | $2,449,638 | $2,359,674 | | Total Assets | $4,787,046 | $4,732,161 | | Total Liabilities | $2,328,719 | $2,408,129 | | Total Shareholders' Equity | $2,458,327 | $2,324,032 | Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $130,220 | $51,356 | | Net cash used by investing activities | ($110,378) | ($1,998,692) | | Net cash (used) provided by financing activities | ($75,951) | $1,560,486 | | Net decrease in cash and cash equivalents | ($56,109) | ($386,850) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the US eDirect acquisition, debt structure, segment reorganization, and significant recurring revenue and backlog figures - Acquired US eDirect Inc., a provider of campground and outdoor recreation management solutions, on February **8**, **2022**, for a net purchase price of approximately **$116.7 million**. The acquisition resulted in goodwill of approximately **$91.7 million**[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - Effective January **1**, **2022**, the company realigned its reportable segments into two: Enterprise Software (ES) and Platform Technologies (PT). The former Appraisal & Tax (A&T) segment was moved into ES, and NIC solutions were moved to PT. Prior year figures were adjusted to reflect this change[99](index=99&type=chunk)[114](index=114&type=chunk) Total Outstanding Debt (June 30, 2022) | Debt Instrument | Amount (in thousands) | | :--- | :--- | | Term Loan A-1 | $570,000 | | Term Loan A-2 | $105,000 | | Convertible Senior Notes due 2026 | $600,000 | | **Total Borrowings** | **$1,275,000** | | Less: unamortized costs | ($11,912) | | **Total borrowings, net** | **$1,263,088** | - Total backlog, representing contracted revenue not yet recognized, was **$1.85 billion** as of June **30**, **2022**. Approximately **47%** of this is expected to be recognized as revenue over the next **12** months[107](index=107&type=chunk) - Recurring revenues (subscriptions and maintenance) for the six months ended June **30**, **2022**, totaled **$735.1 million**, accounting for **79.5%** of total revenues[104](index=104&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=27&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, highlighting revenue growth driven by acquisitions and SaaS, gross margin impacts, and the company's strong liquidity position - Total revenues for the six months ended June **30**, **2022**, increased **32.3%** year-over-year. Excluding the impact of acquisitions from **2021** and **2022**, organic revenue growth was **6.5%**[117](index=117&type=chunk) - Subscription revenues grew **66.0%** for the first six months of **2022**, driven by the NIC acquisition and the ongoing strategic shift to SaaS arrangements. Organic subscription revenue growth was **12.3%**[118](index=118&type=chunk)[131](index=131&type=chunk) - The company's backlog increased by **13.9%** year-over-year to **$1.85 billion** as of June **30**, **2022**[119](index=119&type=chunk) [Results of Operations](index=29&type=section&id=Analysis%20of%20Results%20of%20Operations) Subscription revenue surged due to acquisitions and SaaS adoption, while overall gross margin declined due to lower-margin business and cloud transition costs Revenue by Type (Six Months Ended June 30) | Revenue Type | 2022 (in thousands) | 2021 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Subscriptions | $501,259 | $302,037 | +66% | | Maintenance | $233,844 | $238,733 | -2% | | Software services | $124,622 | $100,977 | +23% | | Software licenses and royalties | $31,515 | $32,537 | -3% | - The shift to SaaS continues, with subscription-based arrangements making up approximately **78%** of the new client mix in H**1** **2022**, compared to **64%** in H**1** **2021**. This trend reduces upfront license revenue but is expected to generate higher overall revenue over the contract term[127](index=127&type=chunk)[128](index=128&type=chunk) - Overall gross margin for H**1** **2022** decreased by **5.0** percentage points to **41.7%**, primarily due to the inclusion of NIC's revenues which have historically lower margins, and increased costs related to the transition to AWS cloud services[135](index=135&type=chunk)[138](index=138&type=chunk) - The effective tax rate for H**1** **2022** was **21.8%**, up significantly from **2.9%** in H**1** **2021**. The increase was driven by a substantial decrease in excess tax benefits from stock incentive awards, which were **$4.7 million** in H**1** **2022** versus **$15.2 million** in H**1** **2021**[83](index=83&type=chunk)[145](index=145&type=chunk) [Financial Condition and Liquidity](index=35&type=section&id=Financial%20Condition%20and%20Liquidity) The company maintains a strong liquidity position with substantial cash and credit availability, supported by operating cash flow and strategic debt repayments Summary of Cash Flows (Six Months Ended June 30, 2022) | Activity | Cash Flow (in thousands) | | :--- | :--- | | Operating Activities | $130,220 | | Investing Activities | ($110,378) | | Financing Activities | ($75,951) | - Days Sales Outstanding (DSO) improved to **115** days at June **30**, **2022**, compared to **131** days at June **30**, **2021**, attributed to better collection efforts[149](index=149&type=chunk) - The company repaid **$80.0 million** of its unsecured term loans during the first six months of **2022** and an additional **$100 million** in July **2022**[151](index=151&type=chunk)[109](index=109&type=chunk) - Anticipated capital spending for the full year **2022** is projected to be between **$58 million** and **$62 million**, including about **$34 million** for capitalized software development[158](index=158&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk involves exposure to interest rate fluctuations on its variable-rate debt under the 2021 Credit Agreement - The company is exposed to interest rate risk on its **$675.0 million** of outstanding variable-rate borrowings under the **2021** Credit Agreement[160](index=160&type=chunk) - A hypothetical **0.25%** change in interest rates would impact annual interest expense by approximately **$1.7 million**[162](index=162&type=chunk) [Controls and Procedures](index=37&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June **30**, **2022**[163](index=163&type=chunk) - No material changes to internal control over financial reporting occurred during the second quarter of **2022**[164](index=164&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=ITEM%201.%20Legal%20Proceedings) No material legal proceedings are pending against the company, beyond routine litigation incidental to its business - There are no material legal proceedings pending against the company[166](index=166&type=chunk) [Risk Factors](index=38&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes were reported in the company's risk factors compared to the prior annual report - No material changes were reported in the company's risk factors during the three months ended June **30**, **2022**[167](index=167&type=chunk) [Other Items (2, 3, 4, 5, 6)](index=38&type=section&id=Other%20Items) This section confirms no unregistered equity sales, defaults, or shareholder votes, and lists exhibits filed with the 10-Q report - Items **2**, **3**, **4**, and **5**, covering unregistered sales of equity, defaults, and shareholder votes, are all reported as "None"[168](index=168&type=chunk)

Tyler Technologies, Inc. (NYSE:TYL) Q1 2022 Results Conference Call April 28, 2022 11:00 AM ET Company Participants Lynn Moore - President, CEO Brian Miller - CFO Conference Call Participants Jonathan Ho - William Blair Pete Heckmann - D.A. Davidson Josh Reilly - Needham Terry Tillman - Truist Securities Matt VanVliet - BTIG Saket Kalia - Barclays Charles Strauzer - CJS Securities Kirk Materne - Evercore ISI Alex Zukin - Wolfe Research Keith Housum - Northcoast Research Brent Bracelin - Piper Sandler Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File Number 1-10485 TYLER TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Delaware 75-2303920 (State or other jurisdiction of incorporation or organization) (I.R.S. employ ...

Investor Presentation March 2022 2 | Forward-Looking Statements Tyler has included in this presentation "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as "believes," ...