泰勒科技 (TYL) 2023 Q2 法說會逐字稿

Hello, and welcome to today's Tyler Technologies Second Quarter 2023 Conference Call. Your host for today's call is Lynn Moore, President and CEO of Tyler Technologies. (Operator Instructions)

您好，歡迎參加今天的 Tyler Technologies 2023 年第二季度電話會議。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）

As a reminder, this conference is being recorded today, July 27, 2023. I would like to turn the call over to Hala Elsherbini, Tyler's Senior Director of Investor Relations. Please go ahead.

謹此提醒，本次會議將於今天（2023 年 7 月 27 日）進行錄製。我想將電話轉給泰勒投資者關係高級總監 Hala Elsherbini。請繼續。

Thank you, Colby, 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 additional 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.

謝謝您，科爾比，歡迎致電我們。今天和我在一起的是我們的總裁兼首席執行官林恩·摩爾 (Lynn Moore)；以及我們的首席財務官布萊恩·米勒 (Brian Miller)。在我發表安全港聲明後，林恩將對我們的季度提出一些額外的評論，然後布萊恩將審查我們結果的詳細信息並提供我們年度指導的更新。林恩將以一些補充評論結束，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 results, 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.

在這次電話會議期間，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業績、未來前景、收入、費用和利潤的預測。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，可能導致實際結果與這些預測存在重大差異。

We would refer you to our Form 10-K and other SEC filings for more information on those risks. 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've also posted on the Investor Relations section of our website under the Financials tab schedules with supplemental information, including information about our quarterly bookings, backlog and recurring revenues.

我們建議您參閱我們的 10-K 表格和其他 SEC 文件，以了解有關這些風險的更多信息。此外，在我們的財報中，我們還納入了非公認會計準則衡量標準，我們認為這些衡量標準有助於理解我們的業績以及與軟件行業同行的比較。我們的收益報告中提供了 GAAP 與非 GAAP 指標的調節表。我們還在網站的投資者關係部分的“財務”選項卡時間表下發布了補充信息，包括有關我們的季度預訂、積壓訂單和經常性收入的信息。

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. Lynn?

在“活動和演示”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進行的所有增長比較都將與去年同期相關。林恩？

Thanks, Hala. Tyler delivered exceptionally strong second quarter results that exceeded expectations across our key performance measures. We also reached a new milestone for total quarterly revenues surpassing the $500 million mark for the first time. Our results reflect a high level of execution and collaborative one Tyler approach across our organization that is the foundation of our long-term growth strategy.

謝謝，哈拉。泰勒交付了異常強勁的第二季度業績，超出了我們關鍵績效指標的預期。我們還達到了新的里程碑，季度總收入首次突破 5 億美元大關。我們的業績反映了我們整個組織的高水平執行力和協作性泰勒方法，這是我們長期增長戰略的基礎。

Total revenue growth was 7.6% with 10.4% organic growth. Recurring revenue comprised 82% of our quarterly revenues and grew organically almost 11%. It's gratifying to achieve double-digit revenue growth even as the shift to SaaS in our new software contract mix continue to accelerate, with SaaS deals comprising 82% of our Q2 new software contract value.

總收入增長 7.6%，有機增長 10.4%。經常性收入占我們季度收入的 82%，有機增長近 11%。儘管我們的新軟件合同組合繼續加速向 SaaS 的轉變，SaaS 交易占我們第二季度新軟件合同價值的 82%，但實現兩位數的收入增長還是令人欣慰的。

Most importantly, SaaS revenues grew organically 20%, our tenth consecutive quarter of SaaS revenue growth of 20% or more. At the start of the year, we characterized 2023 as a pivotal year in our cloud transition where the significant decline in license revenue is replaced by valuable long-term recurring SaaS revenue.

最重要的是，SaaS 收入有機增長了 20%，我們的 SaaS 收入連續第十個季度增長 20% 以上。今年年初，我們將 2023 年描述為雲轉型的關鍵一年，許可證收入的大幅下降被寶貴的長期經常性 SaaS 收入所取代。

Now halfway through the year, the accelerated pace of cloud adoption coupled with our heightened focus on our cloud optimization and migration efforts position us well to drive sustained long-term growth and operating margin improvement. While operating margins this quarter declined from last year as expected due to our cloud transitions, margins were better than planned because of operating efficiencies.

今年已過半，雲採用步伐的加快，加上我們對雲優化和遷移工作的高度關注，使我們能夠很好地推動持續的長期增長和運營利潤率的提高。雖然由於我們的雲轉型，本季度的運營利潤率比去年有所下降，但由於運營效率的提高，利潤率好於計劃。

We continue to deliver results that reflect our competitive strengths and market-leading position in the public sector. Key to our performance is our hyper focus on leveraging our largest asset, our unmatched installed client base to drive an increasing number of cross-sell and upsell wins, prioritize migration of on-premises clients to the cloud and capture higher transaction volumes through our unified payment solution. Overall, sales activity is high in what we see as a robust demand environment, with leading indicators such as RFPs and demos generally at or above pre-COVID highs.

我們繼續提供反映我們在公共部門的競爭優勢和市場領先地位的成果。我們業績的關鍵是我們高度重視利用我們最大的資產、我們無與倫比的已安裝客戶群來推動越來越多的交叉銷售和追加銷售勝利，優先考慮將本地客戶遷移到雲端，並通過我們的統一解決方案捕獲更高的交易量。支付解決方案。總體而言，在我們認為強勁的需求環境中，銷售活動很高，RFP 和演示等領先指標普遍處於或高於新冠疫情前的高點。

In addition to software solutions, our unified payment strategy in our Digital Solutions division continued to prove their tremendous value to our growth algorithm. During the second quarter, we signed 132 new payment deals, including a contract with Cook County, Illinois for traffic court payments. We also signed renewals of our state enterprise contracts in Wisconsin and Connecticut, and extensions of our state enterprise agreements in West Virginia, Illinois, Idaho, New Jersey and Kentucky.

除了軟件解決方案之外，我們數字解決方案部門的統一支付策略繼續證明了它們對我們的增長算法的巨大價值。第二季度，我們簽署了 132 項新付款協議，其中包括與伊利諾伊州庫克縣簽訂的交通法庭付款合同。我們還續簽了威斯康星州和康涅狄格州的國有企業合同，並延長了西弗吉尼亞州、伊利諾伊州、愛達荷州、新澤西州和肯塔基州的國有企業協議。

Additionally, synergies from our disbursements business through our acquisition of Rapid Financial Solutions, and deals influenced by data and insights continue to materialize and provide compelling offerings in the state and federal markets. I'd like to highlight a few strategic second quarter deals that illustrate these successes.

此外，通過收購Rapid Financial Solutions，我們的支付業務產生的協同效應以及受數據和見解影響的交易繼續實現，並在州和聯邦市場提供引人注目的產品。我想重點介紹第二季度的一些戰略性交易，這些交易說明了這些成功。

We've seen growing momentum in the public safety market with our best first half sales performance since we acquired New World in 2015. During the second quarter, we signed contracts with 2 state police organizations for enterprise CAD and mobility solutions. These marquee license agreements include a cloud deployment for the Oregon State Police and an on-premises deployment for the Missouri State Highway Patrol.

自 2015 年收購 New World 以來，我們看到了公共安全市場的增長勢頭，上半年銷售業績最好。第二季度，我們與 2 個州警察機構簽署了企業 CAD 和移動解決方案合同。這些重要的許可協議包括俄勒岡州警察局的雲部署和密蘇里州高速公路巡邏隊的本地部署。

Additionally, Harris County, Texas, the third largest county in the United States, selected Tyler's enforcement mobile solution for eCitations and eCrash applications. We want a cross-sell opportunity with Michigan Bureau of Elections, a Digital Solutions division client to replace an existing custom solution with Tyler's application platform, formerly entellitrak with $1.7 million of ARR.

此外，美國第三大縣德克薩斯州哈里斯縣選擇了 Tyler 的用於 eCitation 和 eCrash 應用程序的執法移動解決方案。我們希望獲得與數字解決方案部門客戶密歇根選舉局的交叉銷售機會，用 Tyler 的應用程序平台（原名 entellitrak，ARR 為 170 萬美元）替換現有的定制解決方案。

We also added our enterprise licensing platform and 1 outdoor solution under our state enterprise agreement in Illinois with $5.2 million of ARR. 94 clients signed contracts to migrate on-premises Tyler solutions to the cloud, including the Cab County, Georgia, for their enterprise justice solution; Charleston, West Virginia for their enterprise ERP solution and the Wyoming State control for their public safety solution. Now I'd like for Brian to provide more detail on the results for the quarter and our annual guidance for 2023.

我們還根據伊利諾伊州的州企業協議添加了企業許可平台和 1 個戶外解決方案，ARR 為 520 萬美元。 94 家客戶簽署了合同，將本地 Tyler 解決方案遷移到雲端，其中包括佐治亞州 Cab 縣的企業司法解決方案；西弗吉尼亞州查爾斯頓的企業 ERP 解決方案和懷俄明州控制的公共安全解決方案。現在，我希望 Brian 提供有關本季度業績和 2023 年年度指導的更多詳細信息。

Thanks, Lynn. Total revenues for the quarter were $504.3 million, up 7.6%. Organic revenue growth, which also excludes COVID-related revenues in 2022 was 10.4%. Last year's second quarter included $15.2 million of revenues from COVID-related initiatives at our Digital Solutions division, formerly NIC, all of which ended in 2022.

謝謝，林恩。該季度總收入為 5.043 億美元，增長 7.6%。不包括與新冠病毒相關的收入，2022 年有機收入增長率為 10.4%。去年第二季度，我們的數字解決方案部門（前身為 NIC）與新冠肺炎相關的舉措帶來了 1,520 萬美元的收入，所有這些收入均於 2022 年結束。

Subscriptions revenues increased 16.4% and organically rose 16%. Within subscriptions, our SaaS revenues grew 20% to $131.5 million and transaction revenues grew 13.7% to $166.3 million. On an organic basis, transaction revenues grew 12.8%.

訂閱收入增長 16.4%，有機增長 16%。在訂閱方面，我們的 SaaS 收入增長了 20%，達到 1.315 億美元，交易收入增長了 13.7%，達到 1.663 億美元。從有機角度來看，交易收入增長了 12.8%。

License revenue declined 34.8% as our new software contract mix continued to shift to SaaS at an accelerated pace with SaaS deals comprising 82% of our Q2 new software contract value compared to 74% last year.

由於我們的新軟件合同組合繼續加速轉向 SaaS，許可證收入下降了 34.8%，SaaS 交易占我們第二季度新軟件合同價值的 82%，而去年為 74%。

Professional services revenue declined 7.7% due to the absence of COVID-related revenues but rose 12.9% organically. We added 170 new SaaS arrangements and converted 94 existing on-premises clients to SaaS, with a total contract value of approximately $93 million.

由於缺乏與新冠病毒相關的收入，專業服務收入下降了 7.7%，但有機增長了 12.9%。我們增加了 170 個新的 SaaS 安排，並將 94 個現有本地客戶轉換為 SaaS，合同總價值約為 9300 萬美元。

In Q2 of last year, we added 167 new SaaS arrangements and had 96 on-premises conversions, with a total contract value of approximately $115 million.

去年第二季度，我們新增了 167 個 SaaS 安排，並進行了 96 個本地轉換，合同總價值約為 1.15 億美元。

As a reminder, in last year's second quarter, we signed a $20 million SaaS contract for a digital motor vehicle titling solution in New Jersey. Our total annualized recurring revenue was approximately $1.66 billion up 11.2% and organically grew 11.6%.

提醒一下，去年第二季度，我們在新澤西州簽署了價值 2000 萬美元的數字機動車所有權解決方案 SaaS 合同。我們的年化經常性收入總額約為 16.6 億美元，增長 11.2%，有機增長 11.6%。

Operating margins in the quarter were once again pressured by the acceleration of the shift to the cloud in new business and the related decline in license revenues. We've also seen expenses associated with employee health benefits grow well above planned levels during the first half of the year, and we remain cautious about future increases for the balance of the year and next year. As we previously stated, we expect operating margins to trough in 2023 and the return to a trajectory of margin expansion in 2024.

本季度的運營利潤率再次受到新業務加速向雲轉移以及許可收入相關下降的壓力。我們還發現，今年上半年與員工健康福利相關的費用增長遠高於計划水平，我們對今年剩餘時間和明年的未來增長保持謹慎態度。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 年恢復利潤率擴張的軌跡。

As we also discussed in prior quarters, merchant and interchange fees from our payments business under the gross revenue model have a meaningful impact on our overall margins. In Q2, we paid merchant fees of approximately $44 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 220 basis points higher.

正如我們在前幾個季度所討論的那樣，在總收入模式下，我們的支付業務的商戶和交換費對我們的整體利潤率產生了重大影響。第二季度，我們支付了約 4400 萬美元的商戶費用。如果從收入和收入成本中扣除這些費用，我們本季度的綜合非 GAAP 營業利潤率將高出約 220 個基點。

Both cash flows from operations and free cash flow were negative this quarter at $19.2 million negative and $33.2 million, respectively, mainly due to incremental cash tax payments of approximately $90 million related to the current status of IRC Section 174 capitalization rules. On a pro forma basis, excluding the Section 174 cash taxes, our year-to-date free cash flow would be approximately $120 million, up 19% over last year.

本季度運營現金流和自由現金流均為負值，分別為負值1,920 萬美元和負值3,320 萬美元，這主要是由於與IRC 第174 條資本化規則的當前狀態相關的約9,000 萬美元的增量現金稅款。根據預計，不包括第 174 條現金稅，我們今年迄今的自由現金流約為 1.2 億美元，比去年增長 19%。

We did not pay down term debt in Q2 due to the elevated cash tax payments, but we expect to continue to prioritize debt payments as our cash flow accelerates in the second half of the year. We ended Q2 with total outstanding debt of $875 million and cash and investments of approximately $148 million and net leverage at quarter end of approximately 1.55x trailing 12-month pro forma EBITDA.

由於現金稅款增加，我們沒有償還第二季度的定期債務，但隨著下半年現金流加速，我們預計將繼續優先償還債務。第二季度末，我們的未償債務總額為 8.75 億美元，現金和投資約為 1.48 億美元，季度末的淨槓桿約為過去 12 個月預計 EBITDA 的 1.55 倍。

Our updated 2023 guidance is as follows: We expect total revenues will be between $1.94 billion and $1.965 billion. The midpoint of our guidance implies organic growth of approximately 8%. We expect GAAP diluted EPS will be between $3.87 and $4.02 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 $7.60 and $7.75. Interest expense is expected to be approximately $25 million including approximately $5 million of noncash amortization of debt discounts and issuance costs.

我們更新的 2023 年指導如下：我們預計總收入將在 19.4 億美元至 19.65 億美元之間。我們指導的中點意味著約 8% 的有機增長。我們預計 GAAP 攤薄後每股收益將在 3.87 美元至 4.02 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 攤薄後每股收益將在 7.60 美元至 7.75 美元之間。利息支出預計約為 2500 萬美元，其中包括約 500 萬美元的債務折扣和發行成本非現金攤銷。

Other details of our guidance are included in our earnings release and in the Q2 earnings deck posted on our website.

我們的指導的其他詳細信息包含在我們的收益發布和我們網站上發布的第二季度收益報告中。

In conjunction with our guidance for the full year, I'd like to remind you of the seasonality around our transaction revenues. While transaction revenues will grow year-over-year, we expect they will decline sequentially in Q3 and again in Q4. Historically, transaction revenues are driven by 2 primary factors: They determine deadlines like corporate filings and hunting seasons and the number of business days. Transaction revenues typically are at the highest in Q2 coinciding with peak outdoor seasons and tax deadlines. Transactions are at a seasonal low in the fourth quarter with fewer business days and less activity around the holidays.

結合我們全年的指導，我想提醒您我們交易收入的季節性。雖然交易收入將同比增長，但我們預計第三季度交易收入將連續下降，第四季度將再次下降。從歷史上看，交易收入由兩個主要因素驅動：它們決定公司備案和狩獵季節等截止日期以及工作日數。交易收入通常在第二季度達到最高水平，此時正值戶外高峰期和納稅截止日期。第四季度交易量處於季節性低點，工作日較少，節假日期間活動也較少。

In addition, starting in Q3, we'll see the revenue impact of contractual changes in one of our state enterprise agreements that includes a move from a gross to net model for payments. Now I'd like to turn the call back over to Lynn.

此外，從第三季度開始，我們將看到一項國有企業協議中的合同變更對收入的影響，其中包括從總額支付模式轉變為淨支付模式。現在我想把電話轉回給林恩。

Thanks, Brian. We finished a strong quarter and first half performance excelled across our business. The quarter was highlighted by 2 highly successful events: Connect 2023, which was our most attended user conference to date with nearly 6,000 attendees and our first stand-alone investor event in 4 years, where we unveiled our Tyler 2030 vision and key growth pillars driving our strategic direction toward organic recurring revenue long-term CAGR of 10% to 12%, sustainable margin expansion with non-GAAP operating margins of 30% or greater and expanded free cash flow of $1 billion and free cash flow margins in the high 20s.

謝謝，布萊恩。我們完成了強勁的季度業績，上半年整個業務的表現都非常出色。本季度有兩場非常成功的活動：Connect 2023，這是我們迄今為止參加人數最多的用戶會議，有近6,000 名與會者；以及我們4 年來的第一次獨立投資者活動，我們在會上公佈了泰勒2030 願景和推動增長的關鍵增長支柱我們的戰略方向是有機經常性收入長期復合年增長率為10% 至12%，可持續利潤率擴張（非GAAP 營業利潤率為30% 或更高） ，自由現金流擴大至10 億美元，自由現金流利潤率在20 多歲。

If you didn't attend our Investor Day in person or virtually, we invite you to watch the replay or access the presentations on our website. It's an exciting time in Tyler's next era of growth, and we see a clear pathway to achieve our mid- and long-term goals, guided by a well-defined growth strategy and powerful financial algorithm to deliver sustained value creation and support our public sector clients digitally empowered future.

如果您沒有親自或虛擬參加我們的投資者日，我們邀請您觀看重播或訪問我們網站上的演示文稿。這是泰勒下一個增長時代的激動人心的時刻，我們看到了實現中長期目標的明確途徑，以明確的增長戰略和強大的財務算法為指導，以實現持續的價值創造並支持我們的公共部門客戶數字化賦能未來。

Now we'd like to open the line for Q&A.

現在我們想開通問答熱線。

We will now begin the question-and-answer session. (Operator Instructions) Your first question comes from the line of Pete Heckmann from D.A. Davidson.

我們現在開始問答環節。 （操作員說明）您的第一個問題來自 D.A. 的 Pete Heckmann。戴維森。

Can you talk a little bit about the ERP business and whether you've seen any changing dynamics there competitively. I always thought it was interesting that some of the big horizontal ERP companies really just focused on the top tier. But are you seeing any instances of some players, maybe like Workday coming down into the mid-tier where Tyler has historically been very strong?

您能談談 ERP 業務嗎？您是否看到了該領域競爭動態的變化。我一直認為有趣的是，一些大型橫向 ERP 公司實際上只專注於頂層。但是你是否看到過一些球員的例子，比如 Workday 進入了 Tyler 歷史上非常強大的中層？

Yes, sure, Pete. I think to start the background, the ERP market is really strong right now. Market activity is good. It's -- RFPs are up, demos are up. I think we commented on that at the end of the first quarter earnings call. It is a very competitive market. We do see Workday more so at the top end, as you mentioned -- more so in larger deals. And really, we see them more in deals where clients may be driven more from an HR point solution rather than a suite solution, and they compete very well there. We think over the long term that having a suite of products that's fully integrated is the best bet. And we're competing well when we compete on that front.

是的，當然，皮特。我認為首先要了解背景，ERP 市場現在確實很強大。市場活躍度良好。這是——RFP 已經開始，演示也已經開始。我想我們在第一季度財報電話會議結束時對此發表了評論。這是一個競爭非常激烈的市場。正如您提到的，我們確實認為 Workday 在高端交易中更是如此——在較大的交易中更是如此。事實上，我們更多地在交易中看到他們，在這些交易中，客戶可能更多地受到人力資源點解決方案而不是套件解決方案的驅動，並且他們在那裡競爭非常好。我們認為，從長遠來看，擁有一套完全集成的產品是最好的選擇。當我們在這方面競爭時，我們的競爭就很好。

Okay. And then in terms of like some of the dynamics around in-to-out migrations, it seems like that's continuing a pace. I guess are there any pockets of either certain software products that will need to be upgraded before they can be moved into the cloud or just certain areas where the customer base has maybe been more reluctant where you think they could be hold out in terms of eventually moving to the cloud?

好的。然後，就從內到外的遷移的一些動態而言，這種情況似乎仍在繼續。我猜想是否有某些軟件產品需要升級才能遷移到雲中，或者只是某些客戶群可能不太願意的領域，您認為他們最終可以堅持下去遷移到雲端？

Yes. No, that's right. That's one of the -- I think we talked a little bit about that at the investor conference. One of the, I guess, hurdles to getting people into the cloud and getting them upgraded and migrated is -- some of them are on older versions and that's something that we're consciously attacking across all our product lines, trying to get to version collapse. Some divisions are a little more ahead than others.

是的。不，沒錯。這是其中之一——我想我們在投資者會議上對此進行了一些討論。我想，讓人們進入雲並讓他們升級和遷移的障礙之一是——其中一些使用舊版本，這是我們在所有產品線中有意識地攻擊的問題，試圖獲得版本坍塌。有些部門比其他部門領先一點。

But I think it also sort of highlights what I've said a lot of times is Tyler is not really going through a single cloud transition. It's going through multiple cloud transitions, because we have multiple core applications who are in different stages with different versions out there, different technology, different beginning points, different endpoints. And so it's kind of -- it's a lot of moving parts. But yes, that's certainly a key factor that plays across all of them and different products are in different points right now.

但我認為這也凸顯了我多次說過的一點：泰勒並沒有真正經歷單一的雲轉型。它正在經歷多次雲轉型，因為我們有多個核心應用程序，它們處於不同的階段，有不同的版本、不同的技術、不同的起點、不同的終點。所以它有很多活動部件。但是，是的，這肯定是影響所有產品的關鍵因素，而且不同的產品目前處於不同的階段。

And I'll just add to that, that public safety is probably the area that lags both in terms of adoption of new customers of the cloud and migration of existing customers. But that is changing. We're seeing a continuous move towards a higher percentage of the new public safety deals coming to us in the cloud. And this year, we've had our first 2 flips of on-prem public safety clients to the cloud 1 in Q1 and then the Wyoming State Patrol this quarter.

我想補充一點，公共安全可能是在雲新客戶採用和現有客戶遷移方面都落後的領域。但這種情況正在改變。我們看到越來越多的新公共安全交易通過雲端進行。今年，我們在第一季度將本地公共安全客戶端首次轉向雲端 1，然後在本季度將懷俄明州巡邏隊轉向雲端。

Okay. That's good to hear. I appreciate it. I'll get back in the queue.

好的。聽起來還不錯。我很感激。我會回到隊列中。

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

您的下一個問題來自 BTIG 的 Matthew VanVliet。

I guess as we look at the strength of the SaaS business and especially on the SaaS bookings, I wonder if you could help us think through maybe the cadence of the bookings throughout the quarter? Were they a little bit more back-end weighted? or anything from sort of a timing perspective?

我想當我們審視 SaaS 業務的實力，尤其是 SaaS 預訂時，我想知道您是否可以幫助我們思考整個季度的預訂節奏？他們的後端權重是否更大一些？或者從時間角度來看什麼？

And then a second part there is we seem to have seen some of the best organic growth in a number of quarters here. So business is performing well. But maybe think about why you didn't maybe raise the midpoint of the revenue guidance for the year, just sort of what went into the process of essentially maintaining the midpoint on the guidance there.

第二部分是我們似乎在這裡看到了幾個季度以來最好的有機增長。所以業務表現良好。但也許想想為什麼你沒有提高今年收入指導的中點，只是基本上維持指導中點的過程中發生了什麼。

Yes. I'd say the cadence of bookings has been pretty normal. Our bookings typically are not terribly back-end loaded. They tend to be -- within a quarter, they tend to be generally spread throughout the quarter. We obviously have some push to get things in at the end of the quarter, but probably different than some of the businesses, software businesses that are focused on the private sector. So I don't think there's anything unusual this quarter. As we said, it continues to be a pretty robust market with a lot of activity.

是的。我想說預訂的節奏非常正常。我們的預訂通常不會有太多後端加載。它們往往是——在一個季度內，它們往往會普遍分佈在整個季度。顯然，我們在本季度末採取了一些措施，但可能與某些專注於私營部門的軟件業務有所不同。因此，我認為本季度沒有什麼異常情況。正如我們所說，它仍然是一個相當強勁的市場，有很多活動。

In terms of the revenue guidance, typically, we're not making big changes in that through the early part of the year. We did narrow the range. So more confident around where the bottom end and the top end are, but our expectations really haven't changed. It's more around the timing. This quarter, there were a few deals that happened maybe a little earlier than we planned in the year, but our outlook for the full year really hasn't changed much of then to narrow.

就收入指導而言，通常情況下，我們在今年年初不會做出重大改變。我們確實縮小了範圍。因此對底端和頂端的位置更加有信心，但我們的期望確實沒有改變。更多的是圍繞時間。本季度，有幾筆交易發生的時間可能比我們今年的計劃早一些，但我們對全年的展望實際上並沒有太大變化，而是縮小了範圍。

Your next question comes from the line of Terry Tillman from Truist Securities.

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

And maybe, Lynn, first question for you is in terms of unified payments and you called out 132 payment deals. I'm just curious on that kind of revenue synergy side and now taking into account new use cases around disbursements. How does the back half look in terms of kind of building confidence in these revenue synergies? And can you keep building on top of like 132 payment deals as we move into 3Q and beyond just a little bit more around -- could we see more goodness where you've seen so far?

Lynn，也許你問的第一個問題是統一支付方面的，你列出了 132 項支付交易。我只是對這種收入協同效應感到好奇，現在正在考慮圍繞支出的新用例。在對這些收入協同效應建立信心方面，下半年情況如何？當我們進入第三季度及以後，您能否繼續在 132 筆支付交易的基礎上繼續發展——我們能否看到您迄今為止看到的更多好處？

Yes. Terry, that's a good question. I think payments is an area where it continues to even outbeat our internal plan. And so my expectation is that's going to continue. It's something that we push with every deal. It's the more that we get involved, it's also involved in a lot of our inside sales, which also continues to outpace quarter after quarter.

是的。特里，這是個好問題。我認為支付領域的進展甚至超過了我們的內部計劃。所以我的期望是這種情況會持續下去。這是我們在每筆交易中都會推動的事情。我們參與得越多，它也參與了我們的很多內部銷售，這些銷售也繼續逐季增長。

As it relates to Rapid, we're still pretty early. We're what 9 months, 8 months into the Rapid acquisition. We've got a lot of good traction. We've got a lot of deals that are in the works that are really pretty exciting deals that we wouldn't have without Rapid and that are going to add really some extra revenues down the road. So where we are with payments right now is I'm excited about where we are. I'm really excited about the Rapid deal. It's something that's being pushed throughout our entire sales channel, and I would expect that to continue to grow.

就 Rapid 而言，我們還處於早期階段。收購Rapid 已經過去了九個月、八個月了。我們有很多良好的牽引力。我們有很多正在進行中的交易，這些交易確實非常令人興奮，如果沒有 Rapid，我們就不會實現這些交易，並且這些交易將在未來增加一些額外的收入。因此，我們目前的付款狀況令我感到興奮。我對Rapid 交易感到非常興奮。這是我們整個銷售渠道都在推動的事情，我預計這種情況會繼續增長。

And I would point out that there is a lag typically from the time we sign a new payments deal to the time those revenues start hitting the income statement. It might be a quarter or 2, it might be longer. They often -- we're replacing an incumbent payments provider and so there may be some time period for that change to take place? Or the payments are associated with the implementation of a new solution like the utility billing solution. And so those payments start when that new system is implemented. So the fact that we're continuing to see a growing number of new deals signed, bodes well for future revenue growth in that area, but it is an instant.

我想指出的是，從我們簽署新的支付協議到這些收入開始進入損益表，通常會有一個滯後期。可能是四分之一或兩個，也可能更長。他們經常——我們正在更換現有的支付提供商，因此可能需要一段時間才能發生這種變化？或者付款與新解決方案（例如公用事業計費解決方案）的實施相關。因此，這些付款是在新系統實施時開始的。因此，我們繼續看到越來越多的新交易簽署，這預示著該領域未來收入的增長，但這只是一瞬間的事情。

Got it. I guess, maybe, Brian, just a follow-up question, and then I'll get back in the queue is -- it was good to call out that the lumpiness in large deal kind of exposure that you all have. So the $20 million deal, if you back it out, I mean the software contract value was down a little bit year-over-year. It sounds like year-to-date, there's been robust demand activity. But I'm just kind of curious, was there smaller large deals in the quarter and compared to maybe last year's 2Q? And then -- and is there anything we should call out into 3Q that you anniversary like a big deal like last year in 2Q?

知道了。布萊恩，我想，也許這只是一個後續問題，然後我會回到隊列中——很高興指出你們所有人所面臨的大量曝光的不穩定性。因此，如果你退出這筆 2000 萬美元的交易，我的意思是軟件合同價值同比略有下降。聽起來今年迄今為止，需求活動一直很強勁。但我只是有點好奇，與去年第二季度相比，本季度是否有規模較小的大型交易？然後，我們應該在第三季度的周年紀念日中提到什麼，比如像去年第二季度那樣的大事？

Yes, it was a tough comp from a bookings perspective. This year, our biggest deal was an $8.8 million total contract value in the Michigan Bureau of elections. And we -- on the SaaS side and then we had I guess, 5 other deals that were worth more than $2 million and one large license deal, the Missouri Highway Control deal.

是的，從預訂的角度來看，這是一個艱難的競爭。今年，我們最大的一筆交易是密歇根州選舉局的合同總價值 880 萬美元。在 SaaS 方面，我猜我們還達成了另外 5 項價值超過 200 萬美元的交易，以及一項大型許可交易，即密蘇里州高速公路控制交易。

Last year, we had the New Jersey deal, which was a $20 million deal. So we don't have anything that approached that size deal this year. And we also had a $13 million license deal with the tax system in Montreal. So there were just a number of large deals last year. This year was much more, I'd say, kind of normal.

去年，我們簽下了新澤西州的合同，價值 2000 萬美元。因此，今年我們沒有任何接近這一規模的交易。我們還與蒙特利爾稅務系統簽訂了價值 1300 萬美元的許可協議。所以去年只有幾筆大交易。我想說，今年比較正常。

In Q3, I don't believe we have a meaningful sort of comp issue. I think our biggest license deal was a $2.5 million deal. And we did have -- on the SaaS side, we did have a very large deal with the State Department last year in Q3, which was a total contract value of north of $50 million. And we had a statewide supervision deal, that was a $15 million SaaS deal. So those will make for a difficult comp on the SaaS side next quarter.

在第三季度，我認為我們沒有出現有意義的補償問題。我認為我們最大的許可交易是 250 萬美元的交易。在 SaaS 方面，我們去年第三季度確實與國務院達成了一項非常大的交易，合同總價值超過 5000 萬美元。我們達成了一項全州範圍的監管協議，價值 1500 萬美元的 SaaS 協議。因此，這些將導致下個季度 SaaS 方面的競爭變得困難。

Yes. I think what's interesting there, Terry, is while there were no huge mega deals this quarter, really across the board, all of our divisions are outperforming plan and what they're seeing in their sales and in their pipeline and in their activity. So typically, there's always puts and takes, but really -- this is really just a strong quarter across the board, both from a revenue standpoint and an execution standpoint.

是的。特里，我認為有趣的是，雖然本季度沒有發生大規模交易，但實際上，我們所有部門的表現都超出了計劃，以及他們在銷售、管道和活動中看到的情況。因此，通常情況下，總會有看跌期權，但實際上，無論是從收入角度還是從執行角度來看，這實際上都是一個全面強勁的季度。

We've talked for a long time about the lumpiness of those mega deals. They come along from time to time. We -- in some of these product areas where like Courts & Justice and tax, we're very well positioned to win those, but they're not here every quarter. So they do create some lumpiness, whether it's SaaS or license bookings.

我們已經討論了這些大型交易的混亂性很長時間了。他們時不時地過來。我們——在一些產品領域，比如法院和司法以及稅務，我們非常有能力贏得這些領域，但他們並不是每個季度都在這裡。因此，無論是 SaaS 還是許可證預訂，它們確實造成了一些混亂。

Understood. Good look into 3Q. Thanks.

明白了。 3Q 不錯。謝謝。

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加布里埃拉·博爾赫斯。

I wanted to follow up on the comment on RFPs and demos now being at or above pre-COVID highs. Would love to get a little bit of color, how much of that is activity changing at the customer versus maybe Tyler specific initiatives? And is there any reason to think that the quality of these RFPs and demos could be better or worse? In other words, how do you think about conversion rates for some of this great top of funnel pipeline activity relative to the history?

我想跟進對 RFP 和演示的評論，這些 RFP 和演示目前已達到或高於新冠疫情前的高點。我很想了解一點，與泰勒的具體舉措相比，客戶的活動改變了多少？是否有任何理由認為這些 RFP 和演示的質量可能會更好或更差？換句話說，您如何看待與歷史相關的一些漏斗頂部活動的轉化率？

Yes, Gabriela. I think it's just -- the RFPs and demos up is just a function of the market. And I think there's probably still been a little bit of hangover from COVID, but we're seeing it really across the board, across all of our business units. As it relates to the quality of RFPs, I think there are certain business units where we're actually probably being even a little bit more selective, which I think is going to increase our win rates. I know we're doing that, for example, at public safety. But generally speaking, it's just a healthy market right now.

是的，加布里埃拉。我認為 RFP 和演示只是市場的一個功能。我認為新冠疫情可能仍然存在一些後遺症，但我們在所有業務部門都看到了這種情況。由於它與 RFP 的質量相關，我認為在某些業務部門，我們實際上可能會更加挑剔，我認為這將提高我們的獲勝率。我知道我們正在這樣做，例如，為了公共安全。但總的來說，目前市場還算健康。

I think it is a combination of both, the strength of the market, I think the stimulus is a factor there, but not the major factor, but also the strength of Tyler's broader presence, the ability for us to leverage our customer relationships and see more opportunities and see some of those opportunities sooner through the NIC state contracts and our ability. We talk about RFPs and demos but a growing number of our deals take place without RFPs. So in sole source or deals that bypass that formal RFP process. So that's a positive for us as well.

我認為這是兩者的結合，市場的力量，我認為刺激是一個因素，但不是主要因素，而且泰勒更廣泛的存在的力量，我們利用我們的客戶關係並看到的能力更多機會，並通過NIC 州合同和我們的能力更快地看到其中一些機會。我們談論 RFP 和演示，但我們越來越多的交易是在沒有 RFP 的情況下進行的。因此，在單一來源或繞過正式 RFP 流程的交易中。所以這對我們來說也是積極的。

Your next question comes from the line of Josh Reilly from Needham.

你的下一個問題來自尼達姆的喬什·賴利 (Josh Reilly)。

Nice job on the quarter here. Subscription and maintenance gross margin was higher in the quarter. Maybe you can give us some color on what drove that increase quarter-over-quarter? And how is the cloud migration impacting gross margin near term here versus some of the operating expense line items?

本季度工作做得很好。本季度訂閱和維護毛利率較高。也許您可以告訴我們是什麼推動了季度環比增長？與某些運營費用項目相比，雲遷移對近期毛利率有何影響？

Well, I think we continue to see operating efficiencies around a number of aspects of our business, but they're certainly impacting our recurring revenues and our SaaS business. We're continuing to be very efficient around managing our staffing levels. We're seeing some of the efficiency gains, for example, around the Digital Solutions reformer NIC business that from changes that have been made there to operate more efficiently. So as we expect that as the SaaS revenues grow, margins should continue to expand. I think we're also seeing improved efficiencies around our public cloud, AWS operations and better per unit costs as we add more customers there.

嗯，我認為我們業務的許多方面的運營效率繼續提高，但它們肯定會影響我們的經常性收入和 SaaS 業務。我們將繼續高效地管理我們的人員配置水平。我們看到了一些效率的提高，例如，圍繞數字解決方案改革者​​ NIC 業務，通過為提高運營效率而進行的變革。因此，正如我們預計，隨著 SaaS 收入的增長，利潤率應該會繼續擴大。我認為，隨著我們增加更多客戶，我們的公共雲、AWS 運營效率也得到了提高，單位成本也得到了改善。

So even though we are seeing certainly pressure on margins because of the cloud transition, the things we've talked about, the bubble costs around -- until we exit our proprietary data centers, we are seeing efficiency gains around those operations as we continue to scale those.

因此，儘管我們確實看到了由於雲轉型、我們所討論的事情以及周圍的泡沫成本而對利潤率造成的壓力，但在我們退出我們的專有數據中心之前，隨著我們繼續擴展那些。

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

您的下一個問題來自巴克萊銀行的 Saket Kalia。

Okay. Great. Brian, maybe just for you. Great to see the SaaS revenue here, I think, continue to grow 20% plus in the quarter. I know that's the CAGR that we talked about at Analyst Day recently, I think, out to '25. So maybe the question is, should we sort of think about this continuing pretty steady in this range in the medium term? Or should we think about just maybe a little bit of a different shape around SaaS revenue over the next couple of years? Just curious how you think about kind of this quarter's growth in the context of that long-term target.

好的。偉大的。布萊恩，也許只適合你。我認為很高興看到 SaaS 收入在本季度繼續增長 20% 以上。我知道這就是我們最近在分析師日討論的複合年增長率，我想，到 25 年。所以也許問題是，我們是否應該考慮在中期繼續保持在這個範圍內相當穩定？或者我們是否應該考慮未來幾年 SaaS 收入的形狀可能略有不同？只是好奇您在長期目標的背景下如何看待本季度的增長。

Yes. I think, in the Investor Day, I think we actually talked about kind of high-teens CAGR over that period collectively from now through 2030. So right now and for the next few years, we'll continue to see a bump to the growth from the flips from our on-prem customers and over time, I mean, that certainly will accelerate over the next few years and then we'll wind down as we talked about the cadence that we expect to convert those customers over. So we are getting higher benefit from those flips and we'll continue to see that. But I think ultimately, it moves more into the teens. But I'd expect to see this growth in this range for the near future.

是的。我認為，在投資者日，我們實際上討論了從現在到 2030 年這段時期的複合年增長率。因此，現在和未來幾年，我們將繼續看到增長的突飛猛進從我們的本地客戶的轉變來看，隨著時間的推移，我的意思是，這肯定會在未來幾年加速，然後當我們談論我們期望轉換這些客戶的節奏時，我們就會逐漸結束。因此，我們從這些轉變中獲得了更高的收益，並且我們將繼續看到這一點。但我認為最終，它會更多地進入青少年。但我預計在不久的將來會看到這個範圍內的增長。

Got it. And then if I could fit in a housekeeping question. Really interesting point you made in your prepared remarks, Brian, just on having one customer switch from gross to net in the payments business here in Q3. Could you just maybe dig into how much of a revenue impact that is in Q3 that we should think about? And is this going to be more of a trend? Or do you think this is a little bit of a one-off?

知道了。然後我是否可以回答一個家政問題。 Brian，您在準備好的講話中提出了非常有趣的觀點，即第三季度有一個客戶在支付業務中從毛額轉向淨額。您能否深入探討一下我們應該考慮的第三季度收入影響有多大？這會成為一種趨勢嗎？或者您認為這有點一次性？

Yes. I think we actually talked about that at our -- when we gave guidance for the full year. There is 1 state that's about a $10.5 million that's changing midyear, so that impact will start to hit this year, and we estimated that at around $10.5 million in the second half of the year, probably a little more of that impact in Q3. It happens really on a state or a customer by customer basis. The vast majority of our business is on the gross model, and we expect that to continue to be the case.

是的。我認為，當我們給出全年指導時，我們實際上討論過這一點。有 1 個州在年中發生了約 1050 萬美元的變化，因此這種影響將在今年開始產生，我們估計下半年的影響約為 1050 萬美元，第三季度的影響可能會更大一些。它確實發生在一個州或一個客戶的基礎上。我們的絕大多數業務都是基於總體模型，我們預計這種情況將繼續下去。

Customers generally prefer the certainty and the predictability around having us assume the responsibility for the merchant and interchange fees and have a set percentage that they're going to pay for their payments processing. There are some customers that are willing to accept that risk around those merchant interchange fees and prefer the net model and sometimes there are changes there as we've seen this year. We really -- I think we had 2 states that's been the case with this year. But again, generally, we would expect that the vast majority of our payments business would continue to be on the gross model.

客戶通常更喜歡我們承擔商戶費用和交換費用的確定性和可預測性，並且他們將支付一定比例的付款處理費用。有些客戶願意接受商家交換費的風險，並且更喜歡網絡模式，有時會發生一些變化，正如我們今年看到的那樣。我們真的——我認為今年有兩個州就是這種情況。但總的來說，我們預計我們的絕大多數支付業務將繼續採用總體模式。

Your next question comes from the line of Alek Zukin from Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Alek Zukin。

This is Ethan Park on Alek Zukin. I have 2 parts here. Just first, can you talk a little bit about the shape of the quarter, just comment a bit about kind of the environment coming in and out of the Analyst Day. And then just a question on the SaaS works. How did it perform just relative to your internal expectations as we look at about a year versus a year ago and just how to think about that trending through the rest of this year and into 2024.

我是亞歷克·祖金 (Alek Zukin) 的伊森·帕克 (Ethan Park)。我這裡有兩部分。首先，您能談談本季度的情況嗎？簡單評論一下分析師日期間的環境。然後只要問一個關於 SaaS 的問題就可以了。當我們對比一年前和一年前的情況時，它的表現與您的內部預期相比如何，以及如何思考今年剩餘時間和 2024 年的趨勢。

Yes, the demand environment, as we said in the prepared remarks, is stable or growing generally at or above kind of our pre-COVID highs. So a very robust demand environment coming out of Investor Day and really very similar to what we've seen throughout this year and don't see signs of that changing right now. So stable at a high level.

是的，正如我們在準備好的發言中所說，需求環境穩定或總體增長至或高於新冠疫情前的高點。因此，投資者日帶來了非常強勁的需求環境，與我們今年全年所看到的非常相似，而且目前沒有看到這種變化的跡象。如此穩定在高水平。

With respect to flips, I'd say generally, we're performing a long plan -- the number of flips is very similar to last year, but the dollar value is higher. So we are seeing bigger customers flip. And I think that will continue to be the case, especially in the early days, flips most of the customers doing that. We're on the small end today. We're seeing more of the larger customers. We talked about a couple this quarter that were on the larger side, a large county in Georgia with a court system. As I said, we've seen our first couple of public safety customers flip. So I'd say, generally, those migrations are in line with our expectations for the year.

關於翻轉，我想說的是，一般來說，我們正在執行一個長期計劃——翻轉的數量與去年非常相似，但美元價值更高。所以我們看到更大的客戶流失。我認為這種情況將繼續存在，尤其是在早期，這會讓大多數客戶這樣做。我們今天處於小範圍。我們看到了更多的大客戶。我們本季度討論了幾個較大的縣，即佐治亞州的一個大縣，有一個法院系統。正如我所說，我們已經看到我們的第一批公共安全客戶發生了轉變。所以我想說，總的來說，這些遷移符合我們今年的預期。

Your next question comes from the line of Michael Turrin from Wells Fargo Securities.

您的下一個問題來自富國銀行證券公司的邁克爾·特林 (Michael Turrin)。

I wanted to go back to something that was asked earlier, but with a slightly different tilt. If we look at the subscription mix as a percent of total contracts, it's very consistent with what we've seen recently. If we look at the TCV and the term metrics, they're down a bit. And this is plus a year-on-year comparison question and more. Just wondering if there's anything to call out in terms of customer behavior, whether it's rising rates or something that might be driving a slightly smaller initial deal size? And then just thinking through if there are impacts that flow into the backlog or bookings numbers that we're looking at. Just wanting to reconcile if there's anything to call out there and just try to kind of calibrate maybe what to expect on those metrics rest of the year?

我想回到之前被問到的問題，但角度略有不同。如果我們將訂閱組合視為合同總數的百分比，就會發現它與我們最近看到的情況非常一致。如果我們查看 TCV 和術語指標，就會發現它們有所下降。這還加上同比比較問題等等。只是想知道客戶行為方面是否有什麼需要注意的地方，是利率上升還是可能導致初始交易規模略小？然後考慮是否會對我們正在研究的積壓或預訂數量產生影響。只是想協調是否有什麼需要注意的地方，並嘗試校準今年剩餘時間對這些指標的期望？

Yes. I don't think there's anything of note around that. The mix of what deals signed in any given quarter can just vary a lot depending on the timing of when those things happen and what happens to be in the pipeline. So I don't think there's a trend to call out or anything, any macro condition that's affecting.

是的。我不認為這有什麼值得注意的。任何特定季度簽署的交易組合可能會有很大差異，具體取決於這些事情發生的時間以及正在醞釀中的事情。因此，我認為沒有任何趨勢需要指出，任何宏觀條件都會產生影響。

We continue to -- if we look at comparison to last year, I think some of those metrics are skewed a bit by those very large deals. But I don't think there's anything really notable to call out there, and I'd expect that -- generally, we expect to continue to see deal sizes grow over time, but it's hard to predict exactly what will happen in Q3 or Q4. But I don't think there's anything fundamentally changing in the market around that.

我們繼續 - 如果我們與去年進行比較，我認為其中一些指標因那些非常大的交易而有所偏差。但我認為沒有什麼真正值得注意的地方，而且我預計 - 一般來說，我們預計交易規模會隨著時間的推移而繼續增長，但很難準確預測第三季度或第四季度會發生什麼。但我認為市場並沒有發生任何根本性的變化。

Yes. I think I would add there that generally, there's a couple of areas in our business that sign larger deals. Appraisal and tax often has some very large deal, multiyear deals. Our Courts & Justice, Enterprise Justice has some very large deals. And the appraisal tax stuff can be a little cyclical. The large deals are -- they come and they go. We've talked about it for years. That's what makes -- that's the 1 reason why we stopped talking about bookings numbers and started focusing on different metrics.

是的。我想我要補充一點，一般來說，我們業務中有幾個領域簽署了更大的交易。評估和稅務經常有一些非常大的、多年的交易。我們的法院和司法部、企業司法部有一些非常大的交易。評估稅可能有點週期性。大宗交易來了又走。我們已經討論這個問題很多年了。這就是我們停止談論預訂數量並開始關注不同指標的第一個原因。

I'd go back to my comment earlier today that really performance across the board has been really solid and actually above plan in Q2, which is pretty exciting to see given as well as our competitive position and sort of the demand nature that's out there right now.

我想回到今天早些時候的評論，即全面的表現非常穩定，並且實際上高於第二季度的計劃，考慮到我們的競爭地位以及現有的需求性質，這是非常令人興奮的現在。

Your next question comes from the line of Kirk Materne from Evercore ISI.

您的下一個問題來自 Evercore ISI 的 Kirk Materne。

Question on sort of flips. I was wondering, Lynn, if you could talk a little bit about when customers are considering moving from on-prem to cloud, is that a cross-sell opportunity as well for you all, meaning when they're having that discussion, has that given you all an opportunity to go in and talk about the sort of other products that might hang off the product they're moving to the cloud. I was just wondering if you have any thought process or if there's anything you could share in terms of what percentage of flips come along with incremental revenue associated with it?

關於翻轉類型的問題。我想知道，Lynn，您是否可以談談客戶何時考慮從本地遷移到雲，這對你們所有人來說是否也是一個交叉銷售機會，也就是說，當他們進行討論時，是否有這樣的機會？讓你們所有人都有機會參與討論可能會與他們正在遷移到雲的產品掛鉤的其他產品。我只是想知道您是否有任何思考過程，或者您是否可以分享有關翻轉百分比以及與之相關的增量收入的任何內容？

Yes. No, that's a good point. And you're right. That's a big part of our sales strategy. And I'd say we actually probably call that more of an upsell opportunity. We talk about cross-sells and upsells. It's an opportunity to add things like our data and insight solutions, our payment solutions as well as just other things. So -- and we talked earlier about how a lot of this requires the customers to upgrade to a newer version of the software, which also opens up doors for other modules and things that are more compatible.

是的。不，這是一個好點。你是對的。這是我們銷售策略的重要組成部分。我想說，我們實際上可能稱之為追加銷售機會。我們談論交叉銷售和追加銷售。這是一個添加我們的數據和洞察解決方案、支付解決方案以及其他內容的機會。因此，我們之前討論過，這在很大程度上需要客戶升級到更新版本的軟件，這也為其他模塊和更兼容的東西打開了大門。

And can you talk about just in terms of moving to the cloud, obviously, as people start talking more about generative AI and AI in general, to take advantage of you sort of need to be in the cloud. Has that started to percolate at all as a topic of discussion for customers to move over to the cloud? Or is it still just super early days in the public sector?

顯然，當人們開始更多地談論生成式人工智能和一般人工智能時，你能否談談遷移到雲的問題，以利用你在雲中的某種需要。這是否已經開始成為客戶遷移到雲的討論話題？或者公共部門現在還處於早期階段嗎？

I think from a customer standpoint, the concept of AI is very early days. As you know, our customer base is generally pretty conservative, pretty risk-averse. And I think they probably are more on a wait-and-see approach. Now we at Tyler are not -- we're not just sitting around taking a wait-and-see approach. We are actively looking at AI. We formed our own AI task committee. We're actively already using a little bit of AI. We're looking at things about how it can improve some of our internal efficiencies. We're looking at things at how it can improve our competitiveness as well as how it can improve our clients' efficiency. So we're looking at that right now. But I would say, from a Tyler perspective, we're pretty early on. And from a client's perspective, they're even earlier on.

我認為從客戶的角度來看，人工智能的概念還很早期。如您所知，我們的客戶群通常相當保守，非常厭惡風險。我認為他們可能更多地採取觀望態度。現在，泰勒不是——我們不會只是坐以待斃。我們正在積極研究人工智能。我們成立了自己的人工智能任務委員會。我們已經在積極使用一點人工智能。我們正在研究如何提高我們的內部效率。我們正在研究它如何提高我們的競爭力以及如何提高客戶的效率。所以我們現在正在研究這個問題。但我想說，從泰勒的角度來看，我們還處於起步階段。從客戶的角度來看，他們甚至更早。

Your next question comes from the line of Charles Strauzer from CJS Securities, Inc.

您的下一個問題來自 CJS 證券公司的 Charles Strauzer。

Just a quick question. Just it seems like every month or so, there's the high-profile data breach, the latest one being the MOVEit data breach, that has been in the news impacting government clients and private businesses. Have you seen any impact on your business from that? And more importantly, are you seeing opportunities from that as well?

只是一個簡單的問題。似乎每個月左右都會發生備受矚目的數據洩露事件，最新的一起是 MOVEit 數據洩露事件，新聞報導中該事件影響了政府客戶和私營企業。您是否看到這對您的業務產生了任何影響？更重要的是，您是否也從中看到了機會？

Yes. I mean it's an unfortunate reality of doing business is the world of cybersecurity and breaches. And our clients are not immune to it. I think there's been a fair number of those over the last couple of years. My guess is for the ones that are publicized, there's probably even more that are not. It does create opportunities for us. I think it creates opportunities to flip people into the cloud. It's creating opportunities around, for example, our cybersecurity offering.

是的。我的意思是，在充滿網絡安全和漏洞的世界裡開展業務是一個不幸的現實。我們的客戶也不能倖免。我認為過去幾年中這樣的情況已經相當多了。我的猜測是，對於那些已經公開的，可能還有更多沒有公開的。它確實為我們創造了機會。我認為這創造了將人們轉向雲的機會。例如，它圍繞我們的網絡安全產品創造了機會。

We didn't talk a lot about it last year. We had a client last year in Arizona that we had been trying to flip to the cloud for really for some time, and they had a security breach and that was the decision point for them to pull the trigger and flip to the cloud. So again, it's an unfortunate part of doing business. But I think that also creates opportunities for our clients to move into more secure environments.

去年我們沒有談論太多。去年，我們在亞利桑那州有一個客戶，我們已經嘗試轉向云有一段時間了，他們遇到了安全漏洞，這就是他們扣動扳機並轉向雲的決策點。再說一遍，這是做生意的一個不幸的部分。但我認為這也為我們的客戶創造了進入更安全環境的機會。

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

你的下一個問題來自威廉·布萊爾的喬納森·何 (Jonathan Ho)。

Just wanted to maybe understand some of sort of your comments around seeing some additional out margin pressure around employee increases. Is this a change relative to your prior expectations? And can you maybe walk through some of the dynamics or the details around that?

只是想了解一下您對員工增加帶來的額外利潤壓力的評論。與您之前的預期相比，這是否有變化？您能否介紹一下相關的一些動態或細節？

Yes. It's really -- it's not around our labor costs generally or our headcount, it was really more around health care. We budget health care every year. We do the best we can. We model it based on last year's practices. And we've just been experiencing a higher level of employee claims this year than the budget. Last year, I think our employee claims were a little bit below budget. This year, they're trending higher. And we're just trying to grapple with that as we go forward. It's something that we're probably modeling to continue throughout the rest of the year. But there's ebbs and flows as it relates to health care.

是的。這實際上與我們的勞動力成本或員工人數無關，更多的是與醫療保健有關。我們每年都會對醫療保健進行預算。我們盡力而為。我們根據去年的實踐進行建模。今年我們的員工索賠水平剛剛高於預算。去年，我認為我們的員工索賠額略低於預算。今年，它們呈上升趨勢。我們只是在前進的過程中努力解決這個問題。我們可能會在今年餘下的時間裡繼續這種模式。但與醫療保健相關的事情卻有起有落。

Yes. There continues to be higher inflation, I think on the health care side, even than in the environment in general, utilization is up, more high claims experience. So -- we continue to monitor it. We believe we have adjusted our expectations for the balance of the year in our guidance. But it is -- I would point out that it's several million dollars of expense in the first half of the year above what our expectations were. And so I think that makes our -- the performance we've turned in for the first half of the year, even more positive. But -- and you see that throughout our margins, but also especially in the SG&A side.

是的。我認為，在醫療保健方面，通貨膨脹率持續走高，甚至比總體環境中的利用率更高，索賠體驗也更高。所以——我們將繼續監控它。我們相信，我們已經在指導中調整了對今年剩餘時間的預期。但我要指出的是，今年上半年的支出超出了我們的預期數百萬美元。因此，我認為這使得我們今年上半年的表現更加積極。但是——你可以在我們的利潤率中看到這一點，尤其是在SG&A方面。

(Operator Instructions) Your next question comes from the line of Keith Housum from Northcoast Research.

（操作員說明）您的下一個問題來自 Northcoast Research 的 Keith Housum。

Brian, a question for you on your commentary regarding the Public Safety segment having the first -- the best first half of the year. Is there something in the market that's helping to contribute to that? Or is this a market share gain, but how do you guys explain, I guess, your success you're having there?

布萊恩，請教您一個關於公共安全部分的評論的問題，這是今年上半年最好的。市場上有什麼東西可以對此做出貢獻嗎？或者這是市場份額的增長，但我想你們如何解釋你們在那裡取得的成功？

I'd say it's a couple of things, Keith. Market activity is really strong in public safety. We're seeing demos right now are on pace for their highest level in a year that we've seen in a long time. Proposals are up. Our competitive position is good. We've done some internal resets at public safety and really kind of excited about where we are. I mean we landed 3 really large deals this quarter sort of in the range of $1.8 million to $2 million range, which we haven't done in a while. So we're excited about what's going on in public safety. We're excited about where the market is and some of the things we've done internally to capture that market.

我想說這有幾件事，基思。公共安全方面的市場活動確實很活躍。我們現在看到的演示正在達到我們長期以來所見的一年來的最高水平。提案已上。我們的競爭地位很好。我們已經在公共安全方面進行了一些內部重置，並且對我們所處的位置感到非常興奮。我的意思是，本季度我們達成了 3 筆規模非常大的交易，金額在 180 萬美元到 200 萬美元之間，我們已經有一段時間沒有這樣做了。因此，我們對公共安全領域正在發生的事情感到興奮。我們對市場所在以及我們為佔領該市場而在內部所做的一些事情感到興奮。

Yes, the competitive position is -- continues to improve. We've made investments in that product over the last several years. And I think the integration with some of the other acquisitions we've made, like our enforcement mobile product, our data and analytics capabilities are very, very strong. And so all of those things that create a very strong integrated public safety platform along with the integration to our Courts & Justice platform, continue to improve our market position.

是的，競爭地位正在持續改善。過去幾年我們對該產品進行了投資。我認為與我們進行的其他一些收購（例如我們的執法移動產品）的整合，我們的數據和分析能力非常非常強大。因此，所有這些創建了一個非常強大的綜合公共安全平台以及與我們的法院和司法平台的集成，將繼續提高我們的市場地位。

Yes. Our mobility platform, a big differentiator. And I think what's also encouraging is that we talked about -- I think Brian mentioned in his remarks earlier, is the fact that the public safety market is really starting to slowly -- I'll say slowly, but embrace movement to the cloud. It's been sort of moving in a snails pace. I'm not suggesting it's going crazy, but we are seeing a lot more receptiveness, which was highlighted by some of the deals we talked about earlier.

是的。我們的移動平台是一個巨大的差異化因素。我認為同樣令人鼓舞的是，我們談到 - 我認為布萊恩在早些時候的講話中提到，公共安全市場確實開始緩慢 - 我會說緩慢，但擁抱雲計算。它的進展速度有點像蝸牛。我並不是說它會變得瘋狂，但我們看到了更多的接受度，我們之前討論的一些交易強調了這一點。

We have no further questions at this time. I will now turn the call back over to Lynn Moore for any further remarks.

目前我們沒有進一步的問題。我現在將把電話轉回給林恩·摩爾，以徵求進一步意見。

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

謝謝科爾比，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。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。