泰勒科技 (TYL) 2023 Q1 法說會逐字稿

Hello, and welcome to today's Tyler Technologies First Quarter 2023 Conference Call. Your host for today's call is Lynn Moore, President and CEO of Tyler Technologies. (Operator Instructions) And as a reminder, this conference is being recorded today, April 27, 2023.

您好，歡迎來到今天的 Tyler Technologies 2023 年第一季度電話會議。今天電話會議的主持人是 Tyler Technologies 總裁兼首席執行官 Lynn Moore。 （操作員說明）提醒一下，本次會議將於今天 2023 年 4 月 27 日錄製。

I would like to turn the call over to Hala Elsherbini, Tyler's Senior Director of Investor Relations. Please go ahead.

我想把電話轉給 Tyler 的投資者關係高級總監 Hala Elsherbini。請繼續。

Thank you, Gavin, and welcome to our call. With me today is Lynn Moore, our President and Chief Executive Officer; and Brian Miller, our Chief Financial Officer. After I give the safe harbor statement, Lynn will have some initial comments on our quarter, and then Brian will review the details of our results and provide an update to our annual guidance. Lynn will end with some additional comments, and then we'll take your questions.

謝謝你，加文，歡迎來電。今天和我在一起的是我們的總裁兼首席執行官 Lynn Moore；和我們的首席財務官 Brian Miller。在我發表安全港聲明後，Lynn 將對我們的季度發表一些初步評論，然後 Brian 將審查我們的結果細節並提供我們年度指導的更新。 Lynn 將以一些補充意見結束，然後我們將回答您的問題。

During this conference call, management may make statements that provide information other than historical information, and may include projections concerning the company's future prospects, revenues, expenses and profits. Such statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties, which could cause actual results to differ materially from these projections. We would refer you to our Form 10-K and other SEC filings for more information on those risks.

在此電話會議期間，管理層可能會發表聲明，提供歷史信息以外的信息，並可能包括有關公司未來前景、收入、支出和利潤的預測。根據 1995 年《私人證券訴訟改革法案》的安全港條款，此類陳述被視為前瞻性陳述，並受到某些風險和不確定性的影響，這可能導致實際結果與這些預測存在重大差異。我們建議您參考我們的 10-K 表格和其他 SEC 文件，以獲取有關這些風險的更多信息。

Also, in our earnings release, we have included non-GAAP measures that we believe facilitate understanding of our results and comparisons with peers in the software industry. A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. We have also posted on the Investor Relations section of our website under the Financials tab, schedules with supplemental information, including information about quarterly bookings, backlog and recurring revenues. On the Events and Presentations tab, we posted an earnings summary slide deck to supplement our prepared remarks. Please note that all growth comparisons we make on the call today will relate to the corresponding period of last year, unless we specify otherwise.

此外，在我們的收益發布中，我們包括了我們認為有助於理解我們的結果以及與軟件行業同行進行比較的非 GAAP 措施。我們的收益發布中提供了 GAAP 與非 GAAP 措施的對賬。我們還在我們網站的“投資者關係”部分的“財務”選項卡下發布了附有補充信息的時間表，包括有關季度預訂、積壓訂單和經常性收入的信息。在“事件和演示”選項卡上，我們發布了收益摘要幻燈片以補充我們準備好的評論。請注意，除非我們另有說明，否則我們今天在電話會議上所做的所有增長比較都將與去年同期相關。

Lynn?

林恩？

Thanks, Hala. We began 2023 by delivering strong first quarter results, that met or exceeded our expectations for most key metrics. We continue to see broad-based demand across our product solutions, reflecting strength in the public sector market and our unique ability to support our public sector clients digital modernization needs. We're seeing a high level of request for proposal and demo activity across our software business with particularly strong activity in the ERP space.

謝謝，哈拉。 2023 年，我們在第一季度取得了強勁的業績，達到或超過了我們對大多數關鍵指標的預期。我們繼續看到我們產品解決方案的廣泛需求，反映了公共部門市場的實力以及我們支持公共部門客戶數字現代化需求的獨特能力。我們在整個軟件業務中看到了高水平的提案和演示活動請求，其中 ERP 領域的活動尤其活躍。

Our mix of new software business also demonstrates how our market continues to embrace the move to the cloud. Total revenue growth was 3.5% with 7.2% organic growth, which also excludes COVID-related revenues and recurring revenues comprised nearly 84% of our quarterly revenues. We're pleased with our solid revenue growth, even as the shift to SaaS and our new software mix continued to accelerate, with SaaS deals comprising 87% of our Q1 new software contract value compared to 80% last year. Most importantly, SaaS revenues grew organically at 24.4%.

我們的新軟件業務組合也展示了我們的市場如何繼續擁抱向雲的遷移。總收入增長 3.5%，有機增長 7.2%，這還不包括與 COVID 相關的收入，經常性收入占我們季度收入的近 84%。我們對穩健的收入增長感到滿意，即使向 SaaS 的轉變和我們的新軟件組合繼續加速，SaaS 交易占我們第一季度新軟件合同價值的 87%，而去年為 80%。最重要的是，SaaS 收入有機增長了 24.4%。

Our sales activity this quarter reflected strong cross-selling success including opportunities driven by leveraging state relationships at our digital solutions division, formerly NIC, and upsells with our data and insight solutions. In addition to our current quarter wins, our pipeline of cross-sell opportunities continues to grow. We also continue to execute our growth strategy around our payments business. During the first quarter, we signed more than 120 new payment deals, and we are especially pleased with the early traction that we are gaining with our acquisition of Rapid Financial Solutions and their robust payment issuing capabilities.

我們本季度的銷售活動反映了強大的交叉銷售成功，包括利用我們數字解決方案部門（前身為 NIC）的州關係所帶來的機會，以及我們的數據和洞察解決方案的追加銷售。除了我們當前的季度勝利外，我們的交叉銷售機會渠道還在繼續增長。我們還繼續圍繞我們的支付業務執行我們的增長戰略。在第一季度，我們簽署了 120 多項新的支付交易，我們對通過收購 Rapid Financial Solutions 及其強大的支付發行能力而獲得的早期牽引力感到特別高興。

I'd like to highlight a couple of first quarter deals that illustrate these successes. In Indiana, we expanded the relationship between Indiana's family and social services administration and our digital solutions division with a contract for Tyler's Disbursement-as-a-service platform to improve the payment disbursement process for sending its existing child care and development fund payments to providers. The purpose of the CCDS federal program is to increase the availability, affordability and quality of childcare.

我想強調幾個第一季度的交易來說明這些成功。在印第安納州，我們通過與 Tyler 的支付即服務平台簽訂合同，擴大了印第安納州家庭和社會服務管理局與我們的數字解決方案部門之間的關係，以改進支付流程，將其現有的兒童保育和發展基金付款發送給提供者. CCDS 聯邦計劃的目的是提高兒童保育的可用性、可負擔性和質量。

Leveraging the capabilities from the Rapid acquisition, in combination with our existing state enterprise contract, we will streamline the entire disbursement process from portal setup, including registering users and collecting banking information from providers to virtual account payments across all payment types and channels. Through Rapid's robust platform, the solution will also provide reporting and reconciliation features to support complete oversight of the payment program.

利用 Rapid 收購的能力，結合我們現有的國有企業合同，我們將簡化從門戶設置的整個支付流程，包括註冊用戶和從供應商處收集銀行信息，再到跨所有支付類型和渠道的虛擬賬戶支付。通過 Rapid 強大的平台，該解決方案還將提供報告和對賬功能，以支持對支付程序的全面監督。

In addition, we signed 2 payments contracts to provide rapid disbursement solution for court funds, including Fort Bend County, Texas, a current user of Tyler's jury management solution and Shelby County, Tennessee, a current Tyler Enterprise courts client. The quarter's largest SaaS deal valued at approximately $18.5 million was with the province of New Brunswick in Canada for our enterprise assessment solution. New Brunswick becomes the fourth Canadian province to implement our flagship property tax solution.

此外，我們還簽署了 2 份支付合同，為法庭資金提供快速支付解決方案，包括 Tyler 陪審團管理解決方案的當前用戶德克薩斯州本德堡縣和 Tyler Enterprise 法院當前客戶田納西州謝爾比縣。本季度價值約 1850 萬美元的最大 SaaS 交易是與加拿大新不倫瑞克省的企業評估解決方案。新不倫瑞克省成為加拿大第四個實施我們的旗艦財產稅解決方案的省份。

Now I'd like for Brian to provide more detail on the results for the quarter and our annual guidance for 2023.

現在，我希望 Brian 提供有關本季度結果和我們 2023 年年度指導的更多詳細信息。

Thanks, Lynn. Yesterday, Tyler Technologies reported its results for the first quarter ended March 31, 2023. Total revenues for the quarter were $471.9 million, up 3.5%. Organic revenue growth, which also excludes COVID-related revenues was 7.2%. Last year's first quarter included $20.6 million of revenues from COVID-related initiatives, at our digital solutions division, formerly NIC, all of which ended in 2022.

謝謝，林恩。昨天，Tyler Technologies 公佈了截至 2023 年 3 月 31 日的第一季度業績。本季度總收入為 4.719 億美元，增長 3.5%。不包括 COVID 相關收入的有機收入增長為 7.2%。去年第一季度，我們的數字解決方案部門（前身為 NIC）從 COVID 相關舉措中獲得了 2060 萬美元的收入，所有這些收入均於 2022 年結束。

License revenue declined 39% as our new software contract mix continued to shift to SaaS at an accelerated pace. Professional services revenue declined 13% due to completion of COVID initiatives, but rose 4.7% organically. Subscriptions revenue increased 14.3% and organically rose 16.4%. Within subscriptions, our SaaS revenues grew 24.4% to $126.6 million and transaction revenues grew 7.1% to $153.9 million. On an organic basis, which also excludes COVID-related revenues, transaction revenues grew 13.1%.

由於我們的新軟件合同組合繼續加速轉向 SaaS，許可收入下降了 39%。由於 COVID 計劃的完成，專業服務收入下降了 13%，但有機增長了 4.7%。訂閱收入增長 14.3%，有機增長 16.4%。在訂閱方面，我們的 SaaS 收入增長 24.4% 至 1.266 億美元，交易收入增長 7.1% 至 1.539 億美元。在有機基礎上，交易收入也排除了與 COVID 相關的收入，增長了 13.1%。

We added 145 new SaaS arrangements and converted 73 existing on-premises clients to SaaS, with a total new software contract value of approximately $86 million. In Q1 of last year, we added 149 new SaaS arrangements and had 88 on-premises conversions, with the total new software contract value of approximately $76 million. Our new SaaS bookings in the first quarter added $17.1 million in new ARR. Our total ARR was approximately 10 -- I'm sorry, $1.58 billion, up 9.1% and organically grew 11.5%. Since Q4 of last year, SaaS revenues now exceed our maintenance revenues.

我們增加了 145 個新的 SaaS 安排，並將 73 個現有的本地客戶轉換為 SaaS，新軟件合同總價值約為 8600 萬美元。去年第一季度，我們增加了 149 個新的 SaaS 安排，並進行了 88 個本地轉換，新軟件合同總價值約為 7600 萬美元。我們在第一季度的新 SaaS 預訂增加了 1710 萬美元的新 ARR。我們的總 ARR 約為 10——對不起，15.8 億美元，增長 9.1%，有機增長 11.5%。自去年第四季度以來，SaaS 收入現已超過我們的維護收入。

Operating margins in the quarter were once again pressured by the acceleration of the shift to the cloud in the new business and the related decline in license revenues. As we've previously stated, we expect operating margin to trough in 2023 and to return to a trajectory of margin expansion in 2024. As we also discussed last quarter, merchant and interchange fees from our payments business under the gross revenue model have a meaningful impact on our overall margins. In Q1, we paid merchant fees of approximately $42 million. If those fees were netted out of both revenues and cost of revenues, our consolidated non-GAAP operating margin for the quarter would have been approximately 200 basis points higher.

本季度的營業利潤率再次受到新業務加速向雲轉移以及相關許可收入下降的壓力。正如我們之前所說，我們預計營業利潤率將在 2023 年觸底，並在 2024 年回到利潤率擴張的軌道。正如我們在上個季度也討論的那樣，我們支付業務在總收入模式下的商戶和交換費具有重要意義對我們整體利潤率的影響。第一季度，我們支付了大約 4200 萬美元的商家費用。如果這些費用從收入和收入成本中扣除，我們本季度的綜合非 GAAP 營業利潤率將高出約 200 個基點。

Cash flow was robust this quarter, with cash flow from operations of $74.7 million, up 39.5% and free cash flow of $63.6 million up 55.1%. As a reminder, cash flow for the balance of the year will be impacted by an estimated $131 million of cash tax payments resulting from the Section 174 tax changes, of which $73 million is related to 2022 taxes and $58 million is related to 2023 estimated taxes. We continue to strengthen our balance sheet as we repaid $120 million of floating rate term debt during the first quarter. We ended Q1 with total outstanding debt of $875 million and cash and investments of approximately $174.2 million.

本季度現金流強勁，運營現金流為 7470 萬美元，增長 39.5%，自由現金流為 6360 萬美元，增長 55.1%。提醒一下，本年度餘額的現金流量將受到 174 節稅收變化產生的估計 1.31 億美元現金稅款的影響，其中 7300 萬美元與 2022 年稅收相關，5800 萬美元與 2023 年估計稅收相關.我們在第一季度償還了 1.2 億美元的浮動利率定期債務，繼續加強我們的資產負債表。第一季度結束時，我們的未償債務總額為 8.75 億美元，現金和投資約為 1.742 億美元。

Our net leverage at quarter end was approximately 1.52x trailing 12-month pro forma EBITDA. Our revenue and non-GAAP earnings guidance for the year are unchanged. Our 2023 guidance is as follows: we expect total revenues will be between $1.935 billion and $1.970 billion. The midpoint of our guidance implies organic growth of approximately 8%. We expect GAAP diluted EPS will be between $3.65 and $3.80 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate. We expect non-GAAP diluted EPS will be between $7.50 and $7.65. Interest expense is expected to be approximately $26 million including approximately $5 million of noncash amortization of debt discounts and issuance costs. Other details of our guidance are included in our earnings release.

我們在季度末的淨槓桿率約為 1.52 倍的 12 個月備考 EBITDA。我們今年的收入和非 GAAP 收益指引保持不變。我們的 2023 年指引如下：我們預計總收入將在 19.35 億美元至 19.70 億美元之間。我們指導的中點意味著有機增長約為 8%。我們預計 GAAP 稀釋後每股收益將在 3.65 美元至 3.80 美元之間，並且由於股票期權活動對 GAAP 有效稅率的影響，可能會有很大差異。我們預計非 GAAP 稀釋後每股收益將在 7.50 美元至 7.65 美元之間。利息支出預計約為 2600 萬美元，其中包括約 500 萬美元的債務折扣和發行成本的非現金攤銷。我們指南的其他詳細信息包含在我們的收益發布中。

I'd like to turn the call back over to Lynn.

我想把電話轉回 Lynn。

Thanks, Brian. Our first quarter results demonstrate the strong momentum, we are building across our business. Our cloud transition initiatives are on track in this pivotal year, as we make progress with our move from Tyler's data centers to AWS and managed through expected margin headwinds resulting from the accelerated pace of cloud adoption as well as cloud bubble costs. Our successes in the marketplace reflect our unparalleled competitive strength, synergistic cross-sell and upsell momentum and highly desirable cloud solutions and position us well to execute on our long-term strategic growth road map.

謝謝，布萊恩。我們第一季度的業績顯示了我們正在整個業務中建立的強勁勢頭。我們的雲轉型計劃在這個關鍵的一年步入正軌，因為我們在從 Tyler 的數據中心遷移到 AWS 方面取得了進展，並通過雲採用速度加快和雲泡沫成本帶來的預期利潤逆風進行了管理。我們在市場上的成功反映了我們無與倫比的競爭實力、協同的交叉銷售和追加銷售勢頭以及非常受歡迎的雲解決方案，並使我們能夠很好地執行我們的長期戰略增長路線圖。

In the next few days, we'll release our fourth annual corporate responsibility report. We hope you'll take some time to review it, and learn more about the progress we've made with our ESG efforts.

在接下來的幾天裡，我們將發布第四份年度企業責任報告。我們希望您能花一些時間來審閱它，並更多地了解我們在 ESG 方面取得的進展。

To close, we're extremely excited to host clients in person at Connect, our annual user conference, which will take place in San Antonio from May 7 through May 10. Registrations are an all-time high, and this will be our largest Connect ever, with some 6,000 public sector clients attending. We also look forward to our upcoming Investor Day that will be held in person, on June 15 in Frisco, Texas, along with a live webcast. We look forward to highlighting our differentiated value proposition in our mid- to long-term strategic plan, growth drivers and financial targets supporting our Tyler 2030 vision. More details will be communicated soon, and we hope you'll be able to join us in person, or online.

最後，我們非常高興能夠在我們的年度用戶大會 Connect 上親自接待客戶，該大會將於 5 月 7 日至 5 月 10 日在聖安東尼奧舉行。註冊人數創歷史新高，這將是我們規模最大的 Connect曾經有大約 6,000 名公共部門客戶參加。我們也期待即將到來的投資者日，該日將於 6 月 15 日在得克薩斯州弗里斯科舉行，屆時將進行現場網絡直播。我們期待在支持我們 Tyler 2030 願景的中長期戰略計劃、增長動力和財務目標中突出我們的差異化價值主張。更多詳細信息將很快公佈，我們希望您能夠親自或在線加入我們。

With that, we'd like to open the line for Q&A.

有了這個，我們想打開問答熱線。

(Operator Instructions) And your first question comes from the line of [Ryan Gu] from Credit Suisse Securities USA.

（操作員說明）您的第一個問題來自瑞士信貸證券美國公司的[Ryan Gu]。

This is Sami Badri on Ryan's line. The first question I wanted to kick off with, was just about operating margins. It looks like you guys did better than what street and our models were forecasting. And I kind of just want to understand, if the mechanism kind of going into the model or into the business, it's allowing you guys to execute a little bit better. Are you seeing better pricing, better cost control? Any other kind of details around the margin beat?

我是 Ryan 的 Sami Badri。我想開始的第一個問題就是營業利潤率。看起來你們比街道和我們的模型預測的要好。我只是想了解，如果這種機制進入模型或進入業務，它會讓你們執行得更好一點。您是否看到更好的定價、更好的成本控制？關於保證金節拍的任何其他類型的細節？

And then the other question is, I know that you guys have been messaging about operating margins, troughing in 2022 before they expand in 2024. But is it possible that we have already seen your operating margins trough and those are very well understood, and you're going to be building and expanding from this point forward maybe from a 2Q base? Can you just give us color on margins, please?

然後另一個問題是，我知道你們一直在傳達關於營業利潤率的信息，在 2022 年觸底，然後在 2024 年擴大。但是我們是否有可能已經看到您的營業利潤率觸底並且這些都很好理解，而且您從現在開始可能會在第二季度基礎上進行建設和擴展？你能給我們在頁邊上的顏色嗎？

Sure. Around the second part of the question, I don't think we've seen the trough yet, for the full year. We think the consolidated margin for the full year will be lower this year than it was last year, and our guidance implies that. I do think -- and I don't think Q2 will be the point where you'll see year-over-year margin improvement. I think by Q4, we'd expect that we would be seeing year-over-year margin improvement at that point. But not -- I don't think, we've hit the trough yet.

當然。關於問題的第二部分，我認為我們還沒有看到全年的低谷。我們認為今年全年的綜合利潤率將低於去年，我們的指引暗示了這一點。我確實認為 - 我認為第二季度不會是您看到利潤率同比增長的地步。我認為到第四季度，我們預計屆時我們將看到同比利潤率有所提高。但不是——我不認為，我們已經觸底了。

And then, in terms of the overall margin, we don't give quarterly guidance, so we didn't have a quarterly margin target out there. Our earnings and revenue guidance is basically unchanged from where we started the year. So our expectations at this point are generally consistent. The first quarter did have good performance, good growth around the subscription revenues, as some of those revenues are coming online from deals we've signed in prior quarters and the pace at which those revenues hit can affect that somewhat. I think our subscription revenues were probably a bit above the -- where the street was. But generally, our expectation for the full year margins hasn't changed.

然後，就整體利潤率而言，我們沒有給出季度指導，因此我們沒有季度利潤率目標。我們的收益和收入指引與年初基本沒有變化。所以我們在這一點上的預期大致是一致的。第一季度確實有良好的表現，訂閱收入增長良好，因為其中一些收入來自我們在前幾個季度簽署的交易，而這些收入的增長速度可能會在一定程度上影響這一點。我認為我們的訂閱收入可能略高於 - 街道所在的位置。但總的來說，我們對全年利潤率的預期沒有改變。

Yes, Sami, I'd add this, too. We've talked a lot, over the last couple of years about the cloud transition and the impact on both revenue headwinds and margins, but there's a lot more going on within Tyler. And I'd say right now, there's a lot of intentionality going on at Tyler. It's a little bit more, than just sort of sitting back and letting the cloud transition run through the financials. We have a lot of internal analysis, we have a lot of internal initiatives going on beyond just the cloud transition, taking a look -- deep look at different parts of our business, different things that we should be doing and can be doing.

是的，薩米，我也要補充一下。在過去的幾年裡，我們談了很多關於雲轉型以及對收入逆風和利潤率的影響，但泰勒內部還有很多事情要做。我現在要說的是，泰勒有很多意向性。這不僅僅是坐下來讓雲過渡貫穿財務。我們有很多內部分析，我們有很多內部計劃正在進行，而不僅僅是雲過渡，看看 - 深入了解我們業務的不同部分，我們應該做和可以做的不同事情。

And I really commend our executive team and really our entire staff for the work that's going on right now. There's a lot of work going on at Tyler, for sure. But I could say that everybody is sort of aligned generally with what our long-term goals and our long-term vision is and part of that is around margin expansion. So there's just a lot of things going on, a lot of intentionality. There are some bigger pieces. There's smaller things that we're doing. But I think there's just a lot of intentionality going on.

我真的很讚揚我們的執行團隊和我們全體員工目前正在進行的工作。當然，Tyler 有很多工作要做。但我可以說，每個人都普遍認同我們的長期目標和長期願景，其中一部分是圍繞利潤率擴張。所以有很多事情在發生，有很多意向性。還有一些更大的碎片。我們正在做一些更小的事情。但我認為只是有很多意向性在發生。

Next question comes from the line of Kirk Materne from Evercore ISI.

下一個問題來自 Evercore ISI 的 Kirk Materne。

Lynn, given that you're going to Connect next week or next week or in the next couple of weeks, can you just talk about what you're hoping clients take away from that? And I was just kind of curious if you've seen more folks from, say, state governments signing up to participate at the conference?

Lynn，鑑於你將在下週或下週或接下來的幾週內進行連接，你能談談你希望客戶從中得到什麼嗎？我只是有點好奇你是否看到更多來自州政府的人報名參加會議？

Yes, Kirk, that's a good question. We actually are hosting some special events around our state government clients, and we're going to have a lot of our key state government stakeholders there. We're going to have them introduced to a lot of our executive team. So there'll be sort of a side path going on with them, also be part of the larger forum as well.

是的，柯克，這是個好問題。實際上，我們正在圍繞我們的州政府客戶舉辦一些特別活動，我們將有很多重要的州政府利益相關者參加。我們將把他們介紹給我們的很多執行團隊。因此，他們會走一條小路，同時也會成為更大論壇的一部分。

Connect is just a unique opportunity for us. We've got so many clients. It's a chance for us to sit down and talk to them, talk about our vision, but also listen to them and listen to their needs, hear what their vision is, it's a chance for us to interact. It's a great opportunity for us to help our clients with more training, more information, talk about the new offerings that we have, things that can make their jobs better and more efficient.

Connect 對我們來說只是一個獨特的機會。我們有這麼多客戶。這是我們坐下來與他們交談的機會，談論我們的願景，同時也傾聽他們的聲音，傾聽他們的需求，聽聽他們的願景是什麼，這是我們互動的機會。這對我們來說是一個很好的機會，可以幫助我們的客戶提供更多培訓、更多信息、談論我們擁有的新產品，以及可以讓他們的工作變得更好、更有效率的事情。

It's a big event. It takes a lot of work. Our marketing team does -- and events team just does -- it's an amazing job. If anybody hasn't been to it, I'd recommend people go, it's really done in a first-class manner. There's a lot of work that goes into it. It's not an inexpensive event, but it's something that's very worthwhile. I think not only does Tyler and executive team get a lot out of it. I think our clients get a lot out of it.

這是一件大事。這需要很多工作。我們的營銷團隊會做——活動團隊也會做——這是一項了不起的工作。如果沒有人去過，我會建議人們去，它確實以一流的方式完成。有很多工作要做。這不是一個便宜的活動，但它是非常值得的。我認為不僅泰勒和執行團隊從中受益匪淺。我認為我們的客戶從中受益匪淺。

Your next question comes from the line of Matthew VanVliet from BTIG.

你的下一個問題來自 BTIG 的 Matthew VanVliet。

I guess, Lynn, on the back of the last question there, you referenced a number of potential pipeline opportunities around some of the state-level contracts. Curious, if you could give us some sense of sort of the magnitude of how much you feel like is in sort of the near-term pipeline, where you're actually discussing specific deal terms and things of that nature?

我想，林恩，在最後一個問題的背後，你提到了一些圍繞一些州級合同的潛在管道機會。很好奇，如果你能告訴我們你對近期管道的感覺有多大，你實際上在討論具體的交易條款和那種性質的事情？

And maybe just compared to sort of how much upsell cross-sell has come through those contracts since the acquisition closed, and I guess maybe it boils down to sort of what inning or what percentage of those potential opportunities do you think you've realized so far? What's on sort of the near term, and then what's maybe more long term in terms of mix?

也許只是與自收購結束以來通過這些合同進行的追加銷售交叉銷售進行比較，我想這可能歸結為你認為你已經意識到的那些潛在機會的局數或百分比遠的？什麼是近期的，那麼就混合而言，什麼是更長期的？

Yes, sure, Matthew. I think we're -- part of your question, I think, we're still in the early innings. I'd say we're still in the early innings with everything we're doing with NIC. Probably talked a year ago about being in the first inning. We might be in the top of the second. The cross-sell opportunities continue to grow. We take a very deliberate approach around that. We've been instituted this year. We've been doing the strategic account management meetings where we're getting the Tyler salespeople together with state GMs and really sort of doing what we call sort of a state of the state baseline, where we're sort of taking a deep dive and look into what are the objectives in that particular state, what are the relationships that NIC, our digital solutions division brings, where what's the Tyler product footprint, what's the terms of the contract vehicle, how can we easily get products into those clients' hands.

是的，當然，馬修。我認為我們 - 我認為你的問題的一部分，我們仍處於早期階段。我會說我們在 NIC 上所做的一切都還處於早期階段。大概一年前就談到了在第一局。我們可能排在第二位。交叉銷售機會繼續增長。我們對此採取了非常深思熟慮的方法。我們今年成立了。我們一直在召開戰略客戶管理會議，我們將 Tyler 銷售人員與州總經理召集在一起，實際上是在做我們所謂的州基線狀態，我們正在深入研究和研究那個特定州的目標是什麼，我們的數字解決方案部門 NIC 帶來的關係是什麼，Tyler 產品足跡在哪裡，合同工具的條款是什麼，我們如何輕鬆地將產品交到這些客戶手中.

When we talk about what those near-term opportunities are, we do qualify them. I mean, we have a number of opportunities that we think are more longer term, but what we call more qualified leads. We're up around sort of in the 175, 180 range right now. All different types of plays that we're looking at there, probably somewhere around $50 million ARR is what we've considered a more qualified pipe. Qualified pipe to me is not something that's going to close in the next month or 2, but it's something that I think has got a pretty viable horizon on it.

當我們談論那些近期機會是什麼時，我們確實對它們進行了限定。我的意思是，我們有許多我們認為更長期的機會，但我們稱之為更合格的潛在客戶。我們現在大約在 175、180 範圍內。我們在那裡看到的所有不同類型的戲劇，大約 5000 萬美元的 ARR 是我們認為更合格的管道。對我來說，合格的管道不會在下個月或 2 個月內關閉，但我認為這是一個非常可行的前景。

Your next question comes from the line of Joshua Reilly of Needham & Company.

你的下一個問題來自 Needham & Company 的 Joshua Reilly。

You mentioned the strong ERP results in the quarter and the pipeline for the rest of the year. Can you just speak to what's driving that pipeline and the visibility that you have in ERP deals for the rest of 2023?

您提到了本季度強勁的 ERP 結果和今年剩餘時間的管道。你能談談是什麼推動了這條管道，以及你在 2023 年剩餘時間裡在 ERP 交易中的可見性嗎？

Yes. I think what I would say there, Josh, was that what we're seeing in terms of the sales indicators, the RFP volume, the number of demos that we're doing is really at almost all-time highs. Now that's not going to turn into business for several quarters, but it's very encouraging to see. I don't really -- I can't really put my finger on, what's driving that right now other than the fact that demand remains high and our clients' budgets remain solid.

是的。 Josh，我想我要說的是，我們在銷售指標、RFP 數量、我們正在進行的演示數量方面看到的幾乎是歷史最高水平。現在這不會在幾個季度內轉化為業務，但它非常令人鼓舞。我真的不——我不能真正指出，除了需求仍然很高和我們客戶的預算保持穩定之外，現在是什麼推動了這一點。

Next question comes from the line of Terry Tillman of Truist Securities.

下一個問題來自 Truist Securities 的 Terry Tillman。

Question with a slight follow-up. I guess on the conversions, what I'd be curious, Lynn, has anything evolved or changed in terms of -- as you're doing these flips or conversions, the propensity to maybe do multi-suite then and/or just think, much more strategic and broader with the broader product footprint that you've evolved?

有輕微跟進的問題。我想關於轉換，林恩，我想知道的是，在進行這些翻轉或轉換時，是否有任何演變或變化，然後可能會做多套房的傾向和/或只是想，隨著您已經發展的更廣泛的產品足跡，更具戰略性和更廣泛？

And then, the second part of this is just with Rapid Financial Solutions. It sounds like it's really interesting in terms of kind of 1 plus 1, 3. Anything on the quantifying the size of that business now?

然後，第二部分就是 Rapid Financial Solutions。就 1 加 1、3 而言，這聽起來真的很有趣。現在有關於量化該業務規模的任何信息嗎？

Sure. I think, we certainly use the flips and conversions as an opportunity to upsell. That is part of our strategic direction. We're still going at a pretty healthy pace. I think, when we get to Investor Day in June, you probably give us -- we'll probably hear a little more guidance on the pace of our conversions and where we think we'll be over the next 4, 5, 6, all the way up to Tyler 2030. But yes, you're exactly right. It's an opportunity for us to once again reach out and upsell other products around, and then help incentivize flips too.

當然。我認為，我們當然會利用翻轉和轉換作為追加銷售的機會。這是我們戰略方向的一部分。我們仍然以非常健康的速度前進。我認為，當我們在 6 月的投資者日到來時，您可能會給我們——我們可能會聽到更多關於我們轉換速度的指導，以及我們認為我們將在接下來的 4、5、6，一直到 Tyler 2030。但是，是的，你是完全正確的。這是我們再次接觸和追加銷售其他產品的機會，然後也有助於激勵翻轉。

As it relates to Rapid, this is a transaction that we're pretty excited about. It's a capability that we didn't have in-house. It's not a capability that I see didn't have in house, the whole bringing in the whole issuing side of disbursements and the fact that we closed that deal, at the end of November. And so we've owned this company for just a little over about 5 months now, not quite 5 months and already the synergies in working with the digital services team, formally NIC, these deals that we've already got signed, I think this early is something a little unusual for us with acquisitions. It normally takes a little bit of time.

由於它與 Rapid 相關，這是一項令我們非常興奮的交易。這是我們內部沒有的能力。這不是我看到的內部沒有的能力，整個支付的整個發行方以及我們在 11 月底完成該交易的事實。因此，我們現在擁有這家公司僅 5 個多月，還不到 5 個月，並且已經與數字服務團隊（正式名稱為 NIC）合作產生了協同效應，我們已經簽署了這些交易，我認為這早期對於我們的收購來說有點不尋常。通常需要一點時間。

There's a lot of road map looking out on the disbursement side of payments. As you know, they're primarily focused right now sort of in the justice space, but there's applicability across all of our product lines. That again is going to take years to develop, but it's pretty exciting, the early momentum we've seen.

在支付的支付方面有很多路線圖。如您所知，它們現在主要集中在司法領域，但它們適用於我們所有的產品線。這又需要數年時間才能發展，但我們已經看到了早期的勢頭，這非常令人興奮。

And we don't disclose the revenues for Rapid separately, but when we acquired them, they were in the kind of $14 million, $15 million annual revenue range.

我們沒有單獨披露 Rapid 的收入，但當我們收購它們時，它們的年收入在 1400 萬美元到 1500 萬美元之間。

Your next question comes from the line of (inaudible) from Wolfe Research.

您的下一個問題來自 Wolfe Research 的（聽不清）。

Guys, this is Alex. So I guess maybe, just a quick question -- another quick question on the demand environment. It does seem, Lynn, that you're seeing literally every company kind of talk about the strength of state and local. Is there -- obviously, the budgets have been on a relative basis, better than other sectors, but is there anything unique or special going on?

伙計們，這是亞歷克斯。所以我想也許，只是一個快速問題——另一個關於需求環境的快速問題。 Lynn，您似乎確實看到每家公司都在談論國家和地方的力量。是否 - 顯然，預算是相對的，比其他部門更好，但是有什麼獨特或特殊的事情嗎？

And, kind of if you look at your own pace of new SaaS bookings, has that changed at all? Like is it -- is the environment better on a relative basis than where you thought it was going to be? Is it as good, as you thought it was going to be? I'd love to get color there.

而且，如果你看看自己的新 SaaS 預訂速度，那有沒有改變？就像它一樣 - 相對而言，環境是否比您想像的要好？它像你想像的那樣好嗎？我很想在那裡得到顏色。

And then, just one for Brian around. I appreciate the commentary on operating margin trends through the year. Is there anything you can help us with on free cash flow specifically, I think the $130 millions, how that propagates those cash tax payments through the year? And as you're looking at cash conversion on an annual basis, where that falls out?

然後，只給 Brian 一個。我很欣賞對全年營業利潤率趨勢的評論。在自由現金流方面，您有什麼可以幫助我們的，我認為是 1.3 億美元，這將如何在全年傳播這些現金稅款？當您每年查看現金轉換時，哪裡會出現問題？

Yes. I think when we talk about what we're seeing in the market, it's a couple of things, probably. I mean we're -- it certainly reinforces the principle that the things that we're providing are essential functionality. I think it reinforces the principle that we went through some periods of time where there might have been a little pent-up demand coming out of COVID, and also the continued shift towards modernization and digitization of local government.

是的。我認為當我們談論我們在市場上看到的東西時，可能有幾件事。我的意思是我們 - 它肯定強化了我們提供的東西是基本功能的原則。我認為這強化了這樣一個原則，即我們經歷了一段時間，在這段時間裡，COVID 可能會產生一些被壓抑的需求，而且地方政府繼續向現代化和數字化轉變。

We also see where we talk about the labor markets, for example, and how the labor markets are affecting different companies, but they're also affecting our clients. And as there's labor shortages and turnovers with our clients, it's also creating challenges for our clients, which is having them really point to and use technology to help bridge that gap. So there's just a lot of things going on right now. It's a good market right now. And it's -- I don't know how I'd characterize this to my expectation, but I'm pretty happy with where the market is right now.

例如，我們還看到我們在哪裡談論勞動力市場，以及勞動力市場如何影響不同的公司，但它們也影響著我們的客戶。由於我們的客戶存在勞動力短缺和人員流失，這也給我們的客戶帶來了挑戰，這讓他們真正指出並使用技術來幫助彌合這一差距。所以現在有很多事情正在發生。現在是一個很好的市場。它是——我不知道我會如何根據我的預期來描述這一點，但我對目前的市場狀況非常滿意。

And on the free cash flow, and I think a little bit on the bookings growth that Lynn was just mentioning. It's interesting our overall bookings growth was on an organic basis around 7%. But our subscription bookings on an organic basis were almost 24%, very close to the same number our revenue growth was. So the real strength is in the bookings, both the SaaS and the transaction bookings.

關於自由現金流，我想有點林恩剛才提到的預訂增長。有趣的是，我們的整體預訂量有機增長約 7%。但我們的有機訂閱預訂量接近 24%，非常接近我們收入增長的數字。所以真正的優勢在於預訂，包括 SaaS 和交易預訂。

On the free cash flow, yes, the $130 million, $131 million estimated incremental cash taxes this year related to Section 174 is a bit higher than we had talked about in the fourth quarter call, as we've got more information and gotten into the calculations more. That impact is a little bit higher this year. I think, it's $73 million of that applies to really the deposit for last year's taxes about $58 million this year. So that impact does continue to decline each year, but we have a 2-year impact or catch up in this year, but that impact should decline year-over-year until after 5 years, it sort of neutral.

在自由現金流方面，是的，今年與第 174 條相關的 1.3 億美元、1.31 億美元的估計增量現金稅比我們在第四季度電話會議上談到的要高一些，因為我們獲得了更多信息並進入了計算更多。今年這種影響略大一些。我認為，其中 7300 萬美元實際上適用於去年的稅金，今年約為 5800 萬美元。因此，這種影響確實每年都在繼續下降，但我們有 2 年的影響或在今年趕上，但這種影響應該逐年下降，直到 5 年後，它有點中性。

We made -- the biggest piece of that in mid-April. I think, it was around $85 million. And then, I think the impact is around, I think, in the $15 million range in the -- it's roughly equal in each of the last 3 quarters. On a free cash flow basis, overall, I think our free cash flow margin, excluding the Section 174 impact is, I'd say, the ranges in the kind of 18% to 20% margin range. And including the impact of the free cash flow -- I'm sorry, more in the mid-teens range and including the impact of the Section 174 change, it's kind of high single, low double-digit free cash flow margin. So the impact is pretty meaningful this year.

我們在 4 月中旬製作了其中最大的一塊。我想，大約是 8500 萬美元。然後，我認為影響大約在 1500 萬美元的範圍內——在過去 3 個季度中的每個季度大致相等。在自由現金流的基礎上，總的來說，我認為我們的自由現金流利潤率，不包括第 174 條的影響，我想說，在 18% 到 20% 的利潤率範圍內。包括自由現金流的影響——對不起，更多在十幾歲左右，包括第 174 條變化的影響，這是一種高單位數、低兩位數的自由現金流利潤率。所以今年的影響是非常有意義的。

Your next question comes from the line of Saket Kalia from Barclays.

你的下一個問題來自巴克萊銀行的 Saket Kalia 系列。

Okay. Great. Brian, maybe for you. I appreciate the additional disclosure, I think, on SaaS bookings ARR. I think that was what we called in the supplement. And I think that grew mid-single digits this quarter off of a very tough compare. I was just wondering, if you could just talk a little bit about how that sort of trend -- how you sort of think about that trending through the year? And maybe just introduce us to that metric a little bit.

好的。偉大的。布賴恩，也許適合你。我認為，我感謝有關 SaaS 預訂 ARR 的額外披露。我認為這就是我們在補充中所說的。而且我認為本季度增長了中個位數，這是一個非常艱難的比較。我只是想知道，你能否談談這種趨勢——你是如何看待這一年的趨勢的？也許只是向我們介紹一下這個指標。

And then just relatedly, on disclosure, can you just talk about some of the other changes here? Like I think appraisal is a metric that we used to get before. I think that's gotten consolidated somewhere else. Just talk to us a little bit about some of the disclosure changes here, and what you want us to focus on in terms of the new?

然後相關地，關於披露，你能談談這裡的其他一些變化嗎？就像我認為評估是我們以前使用的指標一樣。我認為這在其他地方得到了鞏固。只是和我們談談這裡的一些披露變化，以及你希望我們在新方面關注什麼？

Yes. Appraisal is certainly a much smaller piece of our business. Appraisal services, it's an important service that we provide often to customers that we also have sold or will sell a property tax system to. But it's now well under 2% of our revenues. And so we've consolidated that line into the professional services line. And again, the focus, as you've seen from some of the things we've talked about really is around subscriptions revenue growth, the recurring revenues. And we've given some detail breaking that out between the SaaS revenues and the transaction-based revenues, which would be things like payments, our digital solutions portal, e-filing those sorts of things.

是的。評估當然是我們業務的一小部分。評估服務，這是我們經常向客戶提供的一項重要服務，我們也已經或將向其出售財產稅系統。但它現在遠低於我們收入的 2%。因此，我們將該線整合到專業服務線中。再一次，正如你從我們討論過的一些事情中看到的那樣，重點是圍繞訂閱收入的增長，即經常性收入。我們已經提供了一些細節，將 SaaS 收入和基於交易的收入分開，比如支付、我們的數字解決方案門戶、電子歸檔等。

In the SaaS bookings detail, you're correct, it grew sort of mid-single digits. But the -- that's really just referring to basically new logo SaaS deals. So there's additional SaaS bookings in the upsells, pricing increases, inside sales of additional products to existing customers. So the metric we really think is important is the bookings growth number for subscriptions overall, which are the transactions and SaaS revenues, and that was 23.6% this quarter.

在 SaaS 預訂詳細信息中，你是對的，它增長了中個位數。但是——這實際上只是指基本上新的標識 SaaS 交易。因此，在追加銷售、價格上漲、向現有客戶額外產品的內部銷售中會有額外的 SaaS 預訂。因此，我們真正認為重要的指標是整體訂閱的預訂增長數字，即交易和 SaaS 收入，本季度為 23.6%。

Your next question comes from the line of Pete Heckmann of D.A. Davidson.

你的下一個問題來自 D.A. 的 Pete Heckmann。戴維森。

Just a couple of quick questions. You've done a fabulous job of reducing net leverage, post the acquisition of NIC. How are you thinking about the potential for M&A? How does that landscape look, as well as valuations? And then, really have focused mainly on deleveraging and not so much on the share repurchase plan. I mean, what are your thoughts there in terms of resuming share repurchase at some level of net leverage?

只是幾個簡單的問題。在收購 NIC 後，您在降低淨槓桿率方面做得非常出色。您如何看待併購的潛力？這種情況以及估值如何？然後，真正主要關注的是去槓桿化，而不是股票回購計劃。我的意思是，您對在某種淨槓桿水平下恢復股票回購有何看法？

Yes, sure, Pete. I think you're right. Our focus still continues to be a reduction of debt. We're -- that's our primary focus with our use of capital. It's interesting. Our term debt now is getting closer to 30% of our overall debt. It started off more at 65%. So we're about 1/3 -- we've kind of flipped that model.

是的，當然，皮特。我想你是正確的。我們的重點仍然是減少債務。我們 - 這是我們使用資本的主要重點。這真有趣。我們的定期債務現在越來越接近我們總債務的 30%。它以 65% 的比例開始。所以我們大約有 1/3——我們有點翻轉了那個模型。

We still look at M&A. We still evaluate a lot of M&A opportunities. Clearly, we just did this Rapid Solutions deal last fall. If we see an opportunity like that, where we really believe in the long-term strategic value, we're going to pursue it. I think, that's been our take really even when we had a lot higher net leverage profile. That being said, we've got a lot of initiatives going on at Tyler, and we've got a lot of our hands full with a lot of different things. And I could see us continuing to do acquisitions like Rapid, but in terms of a larger sort of more transformational or entering into a whole new space, that's probably not on the near-term horizon.

我們仍然關注併購。我們仍然評估很多併購機會。顯然，我們去年秋天剛剛完成了 Rapid Solutions 交易。如果我們看到這樣的機會，我們真的相信長期戰略價值，我們就會去追求它。我認為，即使我們的淨槓桿率高得多，我們也確實如此。話雖這麼說，我們在 Tyler 進行了很多計劃，而且我們已經忙於處理很多不同的事情。而且我可以看到我們繼續像 Rapid 這樣的收購，但就更大範圍的更具變革性或進入全新領域而言，這可能不在近期範圍內。

Question comes from the line of Charles Strauzer of CJS Securities, Inc.

問題來自 CJS 證券公司的 Charles Strauzer。

Brian, on the last call, you talked about Q1 being similar to Q4 in terms of the EPS, a big ramp in Q2 with the full year guidance essentially unchanged. Should we assume that the ramp in Q2 will be less, given that Q1 results were better than expected?

布賴恩，在上次電話會議上，你談到第一季度的每股收益與第四季度相似，第二季度大幅增長，全年指導基本不變。鑑於第一季度的結果好於預期，我們是否應該假設第二季度的增長會更少？

Well, I think we'd still be in the same range for the full year. I'd say we're increasingly confident of that range, and we may be trending a little bit more to the upper end of the range at this point, although it's still early in the year. But I think, that yes, maybe the ramp is -- I mean I think we were still in the ballpark. We did $1.66. Last year, we did $1.76 in the first quarter, but I think that jump up into Q2 and Q3 and Q4 would be maybe a little less pronounced, but again, we're in the -- pretty much in the same range.

好吧，我認為我們全年仍處於同一範圍內。我想說我們對這個範圍越來越有信心，我們可能會在這一點上更接近這個範圍的上限，儘管現在還處於今年年初。但我認為，是的，也許斜坡是——我的意思是我認為我們還在球場上。我們做了 1.66 美元。去年，我們在第一季度的收入為 1.76 美元，但我認為進入第二季度、第三季度和第四季度的漲幅可能不會那麼明顯，但同樣，我們處於 - 幾乎相同的範圍內。

Of Michael Turrin from Wells Fargo Securities.

來自富國銀行證券公司的 Michael Turrin。

The commentary around the demand environment, RFP volume has remained consistently upbeat. I realize there are some moving pieces, but the organic growth number of 7% towards the lower end of the target range. So can you just help us square those things? What is the organic growth number not entirely reflecting relative to the demand backdrop, whether it's pipeline bookings or just general mix and transition impacts? Any context you can provide, just around your view on that number is helpful.

圍繞需求環境的評論，RFP 數量一直保持樂觀。我意識到有一些移動的部分，但 7% 的有機增長率接近目標範圍的下限。那麼你能幫我們解決這些問題嗎？沒有完全反映需求背景的有機增長數字是多少，無論是管道預訂還是一般的混合和轉型影響？您可以提供的任何上下文，圍繞您對該數字的看法都會有所幫助。

I'll take a stab at that. I think most of it is around the lag between the time that we sign a new deal and when revenues start to hit the income statement. So, when we've talked about our SaaS bookings over recent quarters and this quarter, in particular, being very strong. But there's typically a lag, whether it's a new software deal where it might be a quarter to 2 quarters maybe a little bit longer lag from the time we signed the contract to when the client is -- the environment is set up and we're able to start recognizing revenues and really the same sort of things in many of our transaction-based revenue contracts. We signed a new deal for payments, for example, and there might be perhaps a quarter or so lag between the time those revenues start to get recognized.

我會嘗試一下。我認為大部分時間都在我們簽署新協議與收入開始影響損益表之間的時間差。因此，當我們談到最近幾個季度和本季度的 SaaS 預訂時，特別是非常強勁。但通常會有滯後，無論是新的軟件交易，從我們簽署合同到客戶——環境已經建立，我們正在能夠開始確認收入和我們許多基於交易的收入合同中真正相同的事情。例如，我們簽署了一項新的付款協議，這些收入開始得到確認的時間可能會有四分之一左右的延遲。

At the same time, we see the impact of lower licenses immediately because if those were license deals, we would have recognized all that revenue or the majority of that revenue pretty much upfront, when very soon after the contract is signed. So that would be the biggest factor there. And it's the same thing with flips from on-prem to the cloud. There's -- we may sign it now, but there's a period of time where that transition takes place, so we don't get the uplift in the revenues immediately.

與此同時，我們立即看到了較低許可的影響，因為如果這些是許可交易，我們會在合同簽署後不久就提前確認所有收入或大部分收入。所以這將是那裡最大的因素。從本地到雲端的翻轉也是如此。有 - 我們現在可能會簽署它，但有一段時間會發生這種轉變，所以我們不會立即獲得收入的提升。

Your next question comes from line of Jonathan Ho from William Blair & Company.

你的下一個問題來自 William Blair & Company 的 Jonathan Ho。

Can you talk a little bit about the data insights opportunity that you referenced in the script? And perhaps what kind of upsell opportunities you're seeing in and around that product grouping?

你能談談你在腳本中提到的數據洞察機會嗎？也許您在該產品組中和周圍看到了什麼樣的追加銷售機會？

Yes, Jonathan. I think I mean data insights is something that -- when I look out in the future of public sector, that's to me is an offering that I can see every single public sector agency needing. It's a very unique offering. We're in a unique position given our big -- our large footprint and our ability to surface data across so many different solutions, not only our own but even non-Tyler solutions. I think, it's something that -- look, we made that investment now 5, 6 years ago. And I think we're starting to see more and more demand for it.

是的，喬納森。我想我的意思是數據洞察力是——當我展望公共部門的未來時，對我來說，這是一種我可以看到每個公共部門機構都需要的產品。這是一個非常獨特的產品。我們處於一個獨特的位置，因為我們有很大的足跡，我們有能力在這麼多不同的解決方案中顯示數據，不僅是我們自己的，甚至是非 Tyler 的解決方案。我認為，這是——看，我們在 5、6 年前就進行了這項投資。而且我認為我們開始看到越來越多的需求。

What we've also seen is internally, we've actually sort of deconstructed the D&I former division within Tyler, and we now sort of have it integrated with each of our divisions so that we're aligning more product with the individual demand, so it's something that I think is a differentiator for us. I think, it's always been a differentiator for us. We've seen it, even in the last year or so, it's been a differentiator for NIC. When we talk about a year ago, we were talking about the South Carolina rebid or the early renewal of the Texas payments contract. Those were done in part or primarily or a major factor was our Data & Insights. So it's something that we're going to continue to leverage. I think, we're in a unique position with it, and it's something that the public sector really needs.

我們還看到了在內部，我們實際上已經解構了 Tyler 內部的 D&I 前部門，現在我們將它與我們的每個部門整合在一起，這樣我們就可以根據個人需求調整更多的產品，所以我認為這是我們的差異化因素。我認為，這一直是我們的差異化因素。我們已經看到了它，即使在過去一年左右，它一直是 NIC 的差異化因素。當我們談論一年前時，我們在談論南卡羅來納州的重新投標或德州支付合同的提前續約。這些是部分或主要完成的，或者一個主要因素是我們的數據和洞察力。所以這是我們將繼續利用的東西。我認為，我們在這方面處於獨特的地位，這是公共部門真正需要的東西。

Your next question comes from the line of Rob Oliver of Baird.

您的下一個問題來自 Baird 的 Rob Oliver。

Great. Brian, one for you. I know last quarter, it seemed like a couple of big deals that slipped out of the quarter and the deal sizing, I think was a bit more moderate. And just curious, if you saw some of those deals closed this quarter and what you're seeing in terms of deal sizing. And then, just a quick follow-up. So just on the free cash flow, just to understand that better. Is that -- is the impact there all of the catch-up from '22? Or is there anything else, on the tax side that's impacting free cash flow? I apologize for the laryngitis here.

偉大的。布賴恩，一個給你。我知道上個季度，似乎有幾筆大交易從本季度溜走，交易規模，我認為更溫和一些。只是好奇，如果你看到其中一些交易在本季度結束，以及你在交易規模方面看到了什麼。然後，只是快速跟進。所以就自由現金流而言，只是為了更好地理解這一點。那是 22 年所有追趕的影響嗎？或者在影響自由現金流的稅收方面還有其他什麼嗎？我在這里為喉炎道歉。

Yes. On the free cash flow, yes, that impact is really pretty much all from the catch-up of Section 174, and it's a complicated calculation that's still evolving the overhead you have to add into it, and some of those things. But the impact is higher than we initially impacted -- expected, particularly related to the 2022 amount.

是的。在自由現金流方面，是的，這種影響實際上幾乎完全來自第 174 條的追趕，這是一個複雜的計算，仍在不斷發展你必須添加到其中的開銷，以及其中的一些東西。但影響高於我們最初的預期——尤其是與 2022 年的數量有關。

Yes, the average deal size this quarter was a bit bigger than the average deal size in the first quarter of last year. A couple of those -- half of those deals that we referred to. And we always have deals that slipped from quarter-to-quarter with the subscription model, it's less impactful. But we did have a couple of license deals that we talked about in Q4 that we referred to, not by name that did close this quarter. We had 2 really nice license deals with the -- for our property or recording product with 2 large counties in North Carolina, Wake County and -- which is Raleigh and Mecklenburg County, which is Charlotte. And then, we had a nice public safety deal with the Virginia State police that closed this quarter as well. So generally, we've seen those deals that the timing shifted a bit. We've seen those come in.

是的，本季度的平均交易規模略高於去年第一季度的平均交易規模。其中一些 - 我們提到的那些交易的一半。而且我們總是有訂閱模式的交易從一個季度到另一個季度下滑，影響較小。但我們確實有一些我們在第四季度討論過的許可交易，我們提到了這些交易，而不是本季度結束的名字。我們與北卡羅來納州的 2 個大縣、維克縣和羅利縣以及夏洛特的梅克倫堡縣簽訂了 2 項非常好的許可協議——我們的財產或錄音產品。然後，我們與弗吉尼亞州警方達成了一項很好的公共安全協議，該協議也於本季度關閉。所以總的來說，我們已經看到這些交易的時間發生了一些變化。我們已經看到那些進來了。

Your next question comes from the line of Gabriela Borges from Goldman Sachs.

你的下一個問題來自高盛的 Gabriela Borges。

I wanted to follow up on some of the commentary on margin expansion. So Lynn and Brian, as you think about the longer-term trajectory for margins, I know you've given us some qualitative color, and a little bit of quantitative color as well. Is your expectation that margin progression after this year is likely to be linear? Or do you see a period of time, when maybe there's an accelerated structure rate for margins?

我想跟進一些關於保證金擴張的評論。所以 Lynn 和 Brian，當你考慮利潤率的長期軌跡時，我知道你給了我們一些定性的顏色，也給了我們一些定量的顏色。您預計今年之後的利潤率增長可能是線性的嗎？或者你看到一段時間後，利潤結構率可能會加快嗎？

Yes, Gabriela, I don't expect it will be linear. And certainly, margins and our targets and broadly how we view the trajectory of one of the topics we'll be looking to address at the Investor Day, that things are rarely linear. I do think around the timing of flips over the next few years, as we accelerate the move of our clients from on-prem to the cloud, the timing of -- if that's a J-curve or an S-curve or how that works will be a factor in that margin trajectory.

是的，Gabriela，我不希望它是線性的。當然，利潤率和我們的目標以及我們如何看待我們將在投資者日討論的主題之一的軌跡，這些事情很少是線性的。我確實在考慮未來幾年的翻轉時間，因為我們加快了客戶從本地到雲端的遷移，時間——如果是 J 曲線或 S 曲線，或者它是如何工作的將是保證金軌蹟的一個因素。

I think that we're more certain around the timing of the closing of our data centers and we've talked about that in 2024 and towards the end of 2025, closing those 2 data centers and being able to reduce those bubble costs and so those will have more of an impact in those years. So, I don't expect it to be linear. I really can't give much color beyond that right now, but it is something we'll continue to refine our outlook for, and we'll be talking about margins will certainly be a significant topic at Investor Day.

我認為我們對關閉數據中心的時間更加確定，我們已經在 2024 年和 2025 年底討論過這個問題，關閉這兩個數據中心並能夠降低這些泡沫成本等等那些年會產生更大的影響。所以，我不希望它是線性的。我現在真的不能給出更多的顏色，但我們將繼續完善我們的前景，我們將討論利潤率，這肯定是投資者日的一個重要話題。

Yes. And of course, as we grow out through Tyler 2030 and we talk about our growth in our SaaS and our flips but at the same time, we're actively growing our transaction business and our payments business, which will have somewhat of a negative effect. So depending on the growth rates between those 2 businesses will have some impact on overall margins.

是的。當然，隨著我們在 Tyler 2030 中成長，我們談論我們在 SaaS 和翻轉方面的增長，但與此同時，我們正在積極發展我們的交易業務和支付業務，這將產生一定程度的負面影響.因此，根據這兩項業務之間的增長率，將對整體利潤率產生一些影響。

Your next question comes from the line of Keith Housum of Northcoast Research.

你的下一個問題來自 Northcoast Research 的 Keith Housum。

Brian, no one quarters pass, we talked about the servicing revenue and the staffing up with that unit. Can you perhaps talk about the staffing (inaudible) you're currently at, you just satisfy them? And if you have those people now, they're actually able to contribute to the bottom line.

布賴恩，沒有人通過，我們談到了服務收入和該部門的人員配備。你能不能談談你目前的人員配置（聽不清），你只是讓他們滿意？如果你現在有這些人，他們實際上能夠為底線做出貢獻。

Yes. I think we've continued to hire new staff as well as are seeing attrition flow, which is not surprising, given some of the shifts in the broader employment markets. So, as we've talked about over the last few quarters, we've added new people, new classes on the pro services side and those people are becoming billable. I think you'll see in Q2 and beyond, you'll see more of the impact of that, so we will likely see nice growth in services revenue, which will also help lead most importantly to bring subscription revenues or SaaS revenues online at a faster pace.

是的。我認為我們一直在招聘新員工，並看到人員流失，這並不奇怪，因為更廣泛的就業市場發生了一些變化。因此，正如我們在過去幾個季度所討論的那樣，我們在專業服務方面增加了新的人員、新的課程，並且這些人正在收費。我想你會在第二季度及以後看到，你會看到更多的影響，所以我們可能會看到服務收入的良好增長，這也將有助於最重要的是將訂閱收入或 SaaS 收入帶到網上更快的步伐。

So, I think you'll start to see that really the impact of those people becoming fully billable in Q2. And I think we're pretty well on plan with our efforts to staff up to the capacity we want to have.

所以，我認為你會開始真正看到這些人在第二季度完全收費的影響。而且我認為我們的計劃非常好，我們努力讓員工達到我們想要的能力。

Yes. And I think to be clear, we've talked historically over the years, about services and our margins on services. And services historically is not accretive to margins. We've talked in the past about it maybe in breakeven or really more of a loss leader. That's likely not to change going forward. I think, when I talked earlier about intentionality around other things that we're doing within the business, part of that is things around what we can do to minimize the negative impact of services on overall margins.

是的。我想明確地說，多年來我們一直在談論服務和我們在服務上的利潤率。從歷史上看，服務不會增加利潤。我們過去曾談到它可能處於盈虧平衡狀態，或者更像是一個虧損的領導者。這可能不會改變。我認為，當我之前談到我們在業務中所做的其他事情的意向性時，其中一部分是圍繞我們可以做些什麼來盡量減少服務對整體利潤率的負面影響。

Your next question comes from the line of Clarke Jeffries of Piper Sandler.

你的下一個問題來自 Piper Sandler 的 Clarke Jeffries。

Brian, I just wanted to ask, was there a restatement of SaaS revenue in 2022? As I just look to Q4 as an example, it seems like where we were talking about $110 million last quarter, and now it's $120 million in the supplementals. Was there any change here?

布賴恩，我只是想問一下，2022 年 SaaS 收入是否有重述？正如我僅以第四季度為例，上個季度我們談論的似乎是 1.1 億美元，而現在是 1.2 億美元的補充。這裡有什麼變化嗎？

There's not a -- there was a very small reclass, I think, of some revenues from transaction revenues to SaaS revenues. So, getting those kind of in line with our current recording, but not a significant one, but -- and that's reflected in the supplemental data.

沒有——我認為，從交易收入到 SaaS 收入的一些收入進行了非常小的重新分類。因此，讓這些與我們當前的記錄保持一致，但不是很重要，但是——這反映在補充數據中。

Your next question comes from the line of Joe Goodwin of JMP .

您的下一個問題來自 JMP 的 Joe Goodwin。

I guess, Lynn and Brian, how different at the product or technology level would you say the current payment portfolio is so NIC, Rapid, everything you have there now that is built for governments versus other players in the space? And would you say you differentiate beyond your existing relationships and market presence? Or is there some differentiation on the technology level as well?

我想，Lynn 和 Brian，您認為當前的支付產品組合在產品或技術層面有何不同，如此 NIC，Rapid，您現在擁有的一切都是為政府和該領域的其他參與者構建的？你會說你的差異化超越了你現有的關係和市場存在嗎？或者在技術層面上也有一些差異？

Yes. We believe the technology is meaningfully differentiated from the more horizontal payment providers. So the -- whether it's the different types of payment channels we can offer, now really robust disbursement capabilities adding to the payment acquiring side. And then, really around the reporting, the integration to Tyler's back-end systems that makes reconciliations easier that makes the client's job easier, and it's a meaningful differentiator for us.

是的。我們認為該技術與更橫向的支付提供商有著明顯的區別。所以——無論是我們可以提供的不同類型的支付渠道，現在真正強大的支付能力都增加了支付獲取方面。然後，真正圍繞報告，與 Tyler 後端系統的集成使對賬更容易，使客戶的工作更輕鬆，這對我們來說是一個有意義的差異化因素。

And in fact, it enables us, in many instances, to be -- to have really solid pricing and in some cases, premium pricing because we provide additional value around that. So Rapid was a nice addition to those capabilities, but NIC already had very, very robust capabilities and continues to invest in that payments platform and enhance those. And today, we have a lot of processes underway to further integrate that payment platform into the Tyler back-end systems to create more and more of a competitive edge because of that integration.

事實上，在許多情況下，它使我們能夠 - 擁有真正可靠的定價，在某些情況下，溢價定價，因為我們圍繞它提供了額外的價值。所以 Rapid 是對這些功能的一個很好的補充，但 NIC 已經擁有非常非常強大的功能，並將繼續投資於該支付平台並增強這些功能。今天，我們正在進行許多流程，以進一步將該支付平台集成到 Tyler 後端系統中，以通過這種集成創造越來越多的競爭優勢。

Yes. And Joe, I think you can expect at the Investor Day in June, for us to provide a little more color, maybe in a little more detail around some of these topics, specifically the topic around differentiation in the market and what we -- why we're different and the opportunities that we have in front of us.

是的。喬，我想你可以期待在 6 月的投資者日，我們會提供更多的顏色，也許會圍繞其中一些主題提供更多的細節，特別是關於市場差異化的主題以及我們 - 為什麼我們是不同的，我們面前的機會。

Your next question comes from the line of Kirk Materne of Evercore ICI (sic) ISI.

您的下一個問題來自 Evercore ICI (sic) ISI 的 Kirk Materne。

Just a follow-up, Lynn, your comment on sort of payments and maybe, I guess, I'll drag Brian into this as well. Just on the gross revenue recognition, a, I assume you all have no real ability to pick which one you want to go with, meaning I assume that would be easier, but I assume your grosses are required by accounting rules. And, is there a certain scale that payments gets to that where the drag from a mix shift perspective becomes less, meaning probably I appreciate you calling out the 100 bps this quarter.

只是跟進，林恩，你對某種付款的評論，我想，也許我也會把布賴恩也拖進去。就總收入確認而言，a，我假設你們都沒有真正的能力來選擇你想要的那個，這意味著我認為這會更容易，但我假設你的總收入是會計規則所要求的。而且，支付是否達到一定規模，從混合轉變的角度來看，阻力會變小，這意味著我很感激你在本季度宣布 100 個基點。

Should we expect that to get incrementally better, as it just grows in scale. So I was just kind of curious about, if there's any flexibility to maybe get to that and then sort of how we should think about sort of the drag as that part of the business gets bigger?

隨著規模的擴大，我們是否應該期望它會逐漸變得更好？所以我只是有點好奇，如果有任何靈活性可以做到這一點，然後我們應該如何考慮隨著業務的這一部分變得更大而產生的阻力？

There's not really a lot of ability to pick and choose how it's accounted for. And the difference is really whether we assume the responsibility and the risk for paying those merchant fees and interchange fees, which can vary depending on the type of credit card, whether it's Amex or Visa, whether it's a business card or a personal card.

沒有太多的能力來選擇它的解釋方式。真正的區別在於我們是否承擔支付這些商家費用和交換費的責任和風險，這些費用可能因信用卡類型而異，無論是美國運通卡還是維薩卡，無論是名片卡還是個人卡。

And so in most cases, our clients prefer for us to handle that, so that they know what their fee is. So we have a percentage of the transaction that we charge, let's call it, 2%, and we pay out the merchant fees and interchange fees, and those might be, say, 1.75% but they can vary around that number. And generally, we also get a per transaction charge as well. And so, we do get a margin on the merchant fees, but it's a pretty slim margin and then, we also get a transaction fee generally.

所以在大多數情況下，我們的客戶更願意讓我們來處理，這樣他們就知道他們的費用是多少。因此，我們收取一定比例的交易費用，我們稱之為 2%，我們支付商家費用和交換費，這些費用可能是 1.75%，但它們可能會在這個數字附近變化。通常，我們也會收取每筆交易費用。因此，我們確實從商家費用中獲得了保證金，但這是一個非常微薄的保證金，然後，我們通常也會獲得交易費。

In a net model, we would -- the customer has chosen to pay those merchant fees interchange fees directly. And we're just getting a -- generally a per transaction charge for the services that we provide. And in most cases, the client prefers for us to take that risk. But, if we are paying those fees, then we have to do gross accounting. So we think it's important, even though there is some margin on those that we sort of put it back to give you what that impact is on a net basis. So, if you take those fees out, as we talked about, if you take those out of both revenues and expenses and just sort of leave what we keep, it would -- it's a 200 basis point overall operating margin impact on Tyler as a whole.

在網絡模型中，我們會——客戶選擇直接支付這些商家費用交換費。而且我們只是得到 - 通常是我們提供的服務的每筆交易費用。在大多數情況下，客戶更願意讓我們承擔這種風險。但是，如果我們要支付這些費用，那麼我們就必須進行總額核算。因此，我們認為這很重要，儘管我們將其放回原處以向您提供淨影響是什麼。所以，如果你把這些費用去掉，正如我們談到的那樣，如果你把這些費用從收入和支出中去掉，而只留下我們保留的東西，那麼對 Tyler 的整體營業利潤率影響將達到 200 個基點所有的。

So depending on how fast those grow relative to the rest of Tyler, that impact could be bigger or could be smaller. And that's one of the reasons, why we would expect to continue to sort of give you those numbers, so that you can see the impact of and how that might be trending over time.

因此，取決於它們相對於 Tyler 其他部分的增長速度，這種影響可能更大也可能更小。這就是為什麼我們希望繼續為您提供這些數字的原因之一，以便您可以看到影響以及隨著時間的推移趨勢如何。

Yes. And just to be clear, Kirk, the -- it is customer driven, as Brian said, in the gross model, while lower margin actually produces higher free cash flow. So it's a benefit to our free cash flow.

是的。柯克，要明確一點，正如布賴恩所說，在總模型中，它是由客戶驅動的，而較低的利潤率實際上會產生更高的自由現金流。所以這對我們的自由現金流有好處。

And that was the last question we had for today. So I'd like to hand back to Lynn Moore for closing comments.

這是我們今天的最後一個問題。所以我想返回 Lynn Moore 發表結束評論。

Thanks, Gavin, and thanks, everybody, for joining us today. If you have any further questions, please feel free to contact Brian Miller or myself. Have a great day.

謝謝加文，也謝謝大家今天加入我們。如果您有任何其他問題，請隨時聯繫 Brian Miller 或我本人。祝你有美好的一天。

That does conclude our conference for today. Thank you for participating. You may now all disconnect.

我們今天的會議到此結束。感謝您的參與。您現在可能會全部斷開連接。