泰勒科技 (TYL) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Hello, and welcome to today's Tyler Technologies Fourth 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, February 15, 2024.

女士們先生們，謝謝你們的支持。您好，歡迎參加今天的 Tyler Technologies 2023 年第四季電話會議。今天電話會議的主持人是 Tyler Technologies 總裁兼執行長 Lynn Moore。 （操作員說明）謹此提醒，本次會議將於今天（2024 年 2 月 15 日）進行錄音。

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

我想將電話轉給泰勒投資者關係高級總監哈拉·埃爾謝爾比尼 (Hala Elsherbini)。請繼續。

Thank you, Bhavesh, 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 our annual guidance for 2024. Lynn will end with some additional comments, and then we'll take your questions.

謝謝您，Bhavesh，歡迎您致電。今天和我在一起的是我們的總裁兼執行長 Lynn Moore；以及我們的財務長布萊恩米勒 (Brian Miller)。在我發表安全港聲明後，Lynn 將對我們的季度提出一些初步評論，然後 Brian 將審查我們結果的詳細信息並提供我們 2024 年的年度指導。Lynn 將以一些額外的評論結束，然後我們將採取你的問題。

During this 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 those projections. We would refer you to our Form 10-K and other SEC filings for more information on those risks.

在這次電話會議中，管理層可能會發表聲明，提供歷史資訊以外的信息，並可能包括有關公司未來前景、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有重大差異。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資訊。

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 quarterly bookings, backlog and recurring revenues. On the Events & 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?

此外，在我們的財報中，我們也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績效以及與軟體產業同業的比較。我們的收益報告中提供了 GAAP 與非 GAAP 指標的調整表。我們也在網站的投資者關係部分的「財務」標籤下發布了附有補充資訊的時間表，包括有關季度預訂、積壓訂單和經常性收入的資訊。在「活動和簡報」標籤上，我們發布了收益摘要投影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成長比較都將與去年同期相關。林恩？

Thanks, Hala. Fourth quarter results reflected a strong finish to a pivotal year in our cloud transition and return to year-over-year operating margin expansion. We achieved our key objectives for the year and earnings and cash flow surpassed our expectations with free cash flow representing a new high for a fourth quarter.

謝謝，哈拉。第四季業績反映出我們的雲端轉型關鍵一年的強勁收官，以及營運利潤率恢復同比擴張。我們實現了今年的主要目標，獲利和現金流超出了我們的預期，自由現金流創第四季新高。

Recurring revenues grew 8% and comprised 84% of our total revenues. Our SaaS mix continued to accelerate and comprised 89% of Q4 new software contract value. The quarter was also highlighted by SaaS revenue growth of 21.7% and represented our 12th consecutive quarter of SaaS revenue growth of 20% or more, exceeding our near-term growth expectations of a 20% CAGR in SaaS revenues through 2025. Transaction-based revenues were impacted by seasonal trends and contractual changes in one of our state enterprise agreements that included a change from a gross to a net revenue model for payments.

經常性收入成長了 8%，占我們總收入的 84%。我們的 SaaS 組合持續加速成長，佔第四季新軟體合約價值的 89%。本季的另一個亮點是SaaS 營收成長21.7%，這代表我們連續第12 季SaaS 營收成長20% 或以上，超出了我們對2025 年SaaS 營收複合年增率 20% 的近期成長預期。基於交易的收入受到季節性趨勢和我們一項國有企業協議中的合約變更的影響，其中包括從總收入模式到淨收入模式的付款模式的變化。

I want to remind you of the significance of pass-through merchant fees in our payments business and how they impact both revenue growth and margins. The majority of our payment processing arrangements are accounted for under a gross model where we charge a fixed percentage of the transaction and are responsible for the merchant and interchange fees. Under this model, merchant fees are reflected in both revenues and expenses with a resulting drag on margins. In a smaller number of arrangements, the client is responsible for paying merchant fees directly and we record revenues on a net basis.

我想提醒您轉嫁商家費用在我們的支付業務中的重要性以及它們如何影響收入成長和利潤。我們大部分的支付處理安排都是在總模式下進行的，我們收取交易的固定百分比，並負責商家和交換費用。在這種模式下，商家費用反映在收入和支出中，從而拖累利潤。在少數安排中，客戶負責直接支付商家費用，我們以淨額記錄收入。

We do not control which model the client chooses, although we expect that the majority of payment processing contracts will continue to be under the gross model. Throughout the year and during the fourth quarter, we continued to make solid progress with key initiatives around our cloud transition. We started to realize the benefits of our cloud optimization efforts as we release cloud efficient versions of many of our products and began to experience hosting cost improvements as we scaled our deployments at AWS.

我們不控制客戶選擇哪種模式，儘管我們預計大多數支付處理合約將繼續採用總模式。全年和第四季度，我們圍繞雲端轉型的關鍵舉措繼續取得紮實進展。隨著我們發布許多產品的雲端高效版本，我們開始意識到雲端優化工作的好處，並且隨著我們在 AWS 上擴展部署，我們開始體驗到託管成本的改善。

These efficiencies related to our cloud operations contributed significantly to our year-over-year operating margin expansion in the fourth quarter. Cloud adoption with both new and existing on-premises clients, continued at an accelerated pace across our product portfolio. In the fourth quarter, the number of on-premises migrations or flips, signed was a new fourth quarter high at 92. The increased SaaS adoption in 2023 was particularly notable in the public safety market, where we've seen a significant increase in SaaS adoption with new clients as well as signing our first flips.

這些與我們的雲端營運相關的效率為我們第四季度營運利潤率的同比增長做出了重大貢獻。我們的產品組合持續加速新舊客戶的雲端採用。第四季度，簽署的本地遷移或翻轉數量創第四季度新高，達到 92 起。2023 年 SaaS 採用率的增加在公共安全市場尤其引人注目，我們看到 SaaS 顯著增加與新客戶的採用以及簽署我們的第一個翻轉。

We also signed an expanded multiyear strategic collaboration agreement with Amazon Web Services to further enable the growing demand for our clients and public sector agencies to move to the cloud. Under the expanded agreement, we will jointly expand our framework and share programs to streamline migrations from on-premises solutions to our next-generation cloud applications. This is another major step forward in making the cloud accessible for our clients further improving business continuity, continuous delivery and enhanced security. It also supports our Tyler 2030 Vision to complete our transition to the cloud.

我們還與 Amazon Web Services 簽署了一項擴大的多年策略合作協議，以進一步滿足我們的客戶和公共部門機構不斷增長的遷移到雲端的需求。根據擴展後的協議，我們將共同擴展我們的框架並共享計劃，以簡化從本地解決方案到下一代雲端應用程式的遷移。這是讓我們的客戶能夠存取雲端、進一步提高業務連續性、持續交付和增強安全性的另一個重大進步。它還支持我們的 Tyler 2030 願景，以完成向雲端的過渡。

The public sector market remains very healthy, as evidenced by our elevated levels of RFPs and sales demo activity. Our pipeline reflects the benefits of a heightened level of sales collaboration across our division, driving strong upsell, cross-sell and multi-suite deal momentum. Additionally, we continue to build sales synergies across Tyler with our integrated payments team as we execute our unified payment strategy.

公共部門市場仍然非常健康，我們的 RFP 和銷售演示活動水平較高就證明了這一點。我們的管道反映了我們整個部門提高銷售協作水平的好處，推動了強勁的追加銷售、交叉銷售和多套房交易勢頭。此外，在執行統一支付策略時，我們將繼續與我們的綜合支付團隊在泰勒建立銷售協同效應。

I'd like to highlight some of our significant fourth quarter wins. Our new transaction-based contracts included a landmark win with the California Department of Parks and Recreation for our integrated outdoor recreation platform. This transaction-based 8-year contract is the largest transaction-based arrangement in Tyler's history. This self-funded contract, which is provided at no cost to California taxpayers is valued at an estimated $175 million and includes two 1-year renewal options. It extends our existing relationship under our 2016 agreement, formerly as US eDirect, with enhanced functionality to add Tyler's end-to-end payment solution, enabling everything from reservations booking to payment processing.

我想強調一下我們在第四季取得的一些重大勝利。我們基於交易的新合約包括與加州公園和娛樂部就我們的綜合戶外休閒平台取得的里程碑式勝利。這份為期8年的基於交易的合約是泰勒歷史上最大的基於交易的安排。這份自籌資金的合約免費向加州納稅人提供，價值估計為 1.75 億美元，包括兩個為期 1 年的續約選項。它擴展了我們根據 2016 年協議（以前稱為 US eDirect）的現有關係，並增強了功能以添加 Tyler 的端到端支付解決方案，從而實現從預訂到支付處理的一切。

We're honored to be chosen to have such a key role in managing the nation's largest state park system. We also added to our growing footprint in outdoor recreation with a multiyear transaction-based contract with the Wyoming state parks and a SaaS arrangement with the City of Miami, Florida.

我們很榮幸被選為管理美國最大的州立公園系統的關鍵角色。我們還與懷俄明州州立公園簽訂了多年交易合同，並與佛羅裡達州邁阿密市簽訂了 SaaS 協議，擴大了我們在戶外休閒領域的足跡。

We continue to execute on cross-sell opportunities through our digital solutions, formerly NIC, state enterprise agreements, that enable enhanced resident engagement across multiple public sector services. We signed 2 contracts under our state enterprise agreement in Mississippi as part of our newly launched resident engagement platform using Tyler's MyCivic platform. Working with the Mississippi Attorney General, we launched the Mississippi Access to Maternal Assistance mobile app, which includes the program's website and MyCivic platform to bridge access to public and private services across the state.

我們繼續透過我們的數位解決方案（以前稱為 NIC、國有企業協議）抓住交叉銷售機會，從而增強居民對多個公共部門服務的參與度。作為我們使用 Tyler 的 MyCivic 平台新推出的居民參與平台的一部分，我們根據密西西比州的國有企業協議簽署了 2 份合約。我們與密西西比州總檢察長合作，推出了密西西比州孕產婦援助行動應用程序，其中包括該計劃的網站和 MyCivic 平台，以橋接全州公共和私人服務的獲取。

We also signed an agreement with the Mississippi Department of Mental Health to develop a mobile application on our MyCivic platform that will allow the agency to provide useful mental health information to Mississippians affected by mental illness. We continue to build momentum in the public safety market with strong fourth quarter contract activity. Significant contracts included several competitive wins against key competitors making 2023 our most successful new business year in public safety, since we acquired New World Systems in 2015.

我們還與密西西比州心理健康部簽署了一項協議，在我們的 MyCivic 平台上開發行動應用程序，使該機構能夠向受精神疾病影響的密西西比州人提供有用的心理健康資訊。我們透過第四季強勁的合約活動繼續在公共安全市場建立動力。重要合約包括與主要競爭對手的多場競爭勝利，使 2023 年成為我們自 2015 年收購 New World Systems 以來公共安全領域最成功的新業務年。

We also experienced a significant increase in SaaS adoption of our Public Safety solutions. With SaaS comprising 46% of our fourth quarter Public Safety deals. Existing on-premises Public Safety clients are also showing heightened interest in moving to the cloud and 3 Public Safety clients signed contracts in the fourth quarter to flip to the cloud. The city of Klamath Falls, Oregon embraced the cloud-first strategy signing a contract for a SaaS deployment for an integrated enterprise public safety suite, which includes the full suite of our public safety solutions, including enterprise records management, geomanager, fire, electronic patient care reporting, civil process, e-citations and analytics.

我們的公共安全解決方案的 SaaS 採用率也顯著增加。 SaaS 占我們第四季公共安全交易的 46%。現有的本地公共安全客戶也對遷移到雲端表現出濃厚的興趣，3 個公共安全客戶在第四季度簽署了遷移到雲端的合約。俄勒岡州克拉馬斯福爾斯市採用雲端優先戰略，簽署了一份整合企業公共安全套件 SaaS 部署合同，其中包括我們的全套公共安全解決方案，包括企業記錄管理、地理管理器、消防、電子病人護理報告、民事程序、電子引文和分析。

Our recent contract signed in Q2 with the Oregon State Patrol serve as a strong reference for this competitive win. Other notable Public Safety deals included a SaaS contract with Santa Rosa County, Florida and on-premises contracts with Rensselaer County and Wayne County, both in New York. We also had a significant cross-sell win under our state enterprise agreement in Arkansas for a public safety solution for Pulaski County, Arkansas. In the court space, we signed our first SaaS flip of a statewide court system with the Idaho Supreme Court. This 5-year agreement includes migrating the court's 44 counties and 200 courtrooms from on-premises deployments to our SaaS offering.

我們最近在第二季度與俄勒岡州巡邏隊簽署的合約為這場競爭性勝利提供了強有力的參考。其他值得注意的公共安全交易包括與佛羅裡達州聖羅莎縣的 SaaS 合約以及與紐約州倫斯勒縣和韋恩縣的本地合約。根據我們在阿肯色州的國有企業協議，我們也為阿肯色州普拉斯基縣的公共安全解決方案贏得了重大的交叉銷售。在法院領域，我們與愛達荷州最高法院簽署了第一個全州法院系統的 SaaS 翻轉。這項為期 5 年的協議包括將法院的 44 個縣和 200 個法庭從本地部署遷移到我們的 SaaS 產品。

Our largest new SaaS deal in the quarter was with the state of North Carolina, where we extended the term of our existing court SaaS agreement for 5 years, and expanded the agreement to add our solution for appellate courts. We also achieved key operational milestones in Courts & Justice during the quarter, including the successful go live of our Enterprise Justice solution with the L.A. County criminal courts. This completed the countywide rollout across 35 court locations in the nation's largest court.

本季我們最大的新 SaaS 交易是與北卡羅來納州達成的，我們將現有法院 SaaS 協議的期限延長了 5 年，並​​擴展了協議以添加我們針對上訴法院的解決方案。本季我們也在法院和司法領域實現了關鍵的營運里程碑，包括我們的企業司法解決方案在洛杉磯縣刑事法院的成功上線。這完成了在全國最大法院 35 個法院地點的全縣範圍內的部署。

With our application platform, we secured a key SaaS win with the Virginia Department of Education to upgrade its enterprise state regulatory system and modernize its Citizen Portal. The system will support the management of Virginia's child daycare programs, which are transitioning from the Department of Social Services to the DOE, during the fourth quarter, we also signed 172 new payments deals, bringing the total to 600 for the year.

借助我們的應用程式平台，我們在維吉尼亞州教育部贏得了關鍵的 SaaS 勝利，升級了其企業州監管系統並實現了公民入口網站的現代化。該系統將支援維吉尼亞州兒童日托計畫的管理，該計畫正在從社會服務部過渡到能源部，在第四季度，我們還簽署了 172 項新付款協議，使全年總數達到 600 項。

We also signed a new state enterprise contract in Maryland, following a competitive rebid of our expiring contract as well as an extension of our Oklahoma enterprise agreement. Finally, as noted on our last call, we completed the acquisitions of ARInspect and Resource Act in October for a combined purchase price of approximately $37 million in cash and stock. We're pleased to see multiple early wins for our application platform, leveraging field operations and inspection capabilities that came to us through ARInspect.

在對即將到期的合約進行競爭性重新投標以及俄克拉荷馬州企業協議的延期之後，我們還在馬裡蘭州簽署了一份新的國有企業合約。最後，正如我們在上次電話會議中所指出的，我們在 10 月完成了對 ARInspect 和 Resource Act 的收購，現金和股票的總購買價約為 3,700 萬美元。我們很高興看到我們的應用平台利用 ARInspect 提供的現場操作和檢查功能取得了多項早期成果。

Now I'd like Brian to provide more detail on the results for the quarter and our annual guidance for 2024.

現在，我希望 Brian 提供有關本季業績和 2024 年年度指導的更多詳細資訊。

Thanks, Lynn. Total revenues for the quarter were $480.9 million, up 6.3%. Organic revenue growth, which also excludes COVID-related revenues in 2022 was 6.1%, the fourth quarter of 2022 included $3.5 million of revenues from COVID-related initiatives at our Digital Solutions division, all of which ended in 2022.

謝謝，林恩。該季度總營收為 4.809 億美元，成長 6.3%。 2022 年有機收入成長（不包括與新冠病毒相關的收入）為6.1%，2022 年第四季包括我們數位解決方案部門與新冠病毒相關措施產生的350 萬美元收入，所有這些收入均於2022 年結束。

Subscription revenues increased 11.4% and organically rose 10.8%. Within subscriptions, our SaaS revenues grew 21.7% to $141 million and grew organically 21.2%, which is consistent with our near-term growth expectations of the 20% CAGR and SaaS revenues through 2025. Keep in mind that there's often a lag from the signing of a new SaaS deal or a flip to the start of revenue recognition that can vary from 1 to several quarters. Because of this, as well as the timing of SaaS renewals and related price increases, SaaS revenue growth, both year-over-year and sequentially, may fluctuate from quarter-to-quarter.

訂閱收入成長 11.4%，有機成長 10.8%。在訂閱業務中，我們的SaaS 收入成長了21.7%，達到1.41 億美元，有機成長了21.2%，這與我們對2025 年複合年增長率和SaaS 收入20% 的近期成長預期一致。請記住，從簽約到簽約通常存在滯後。新的 SaaS 交易或翻轉到收入確認的開始時間可能會從 1 個季度到幾個季度不等。因此，以及 SaaS 續約的時間和相關價格上漲，SaaS 營收成長（無論是同比還是環比）可能會出現季度波動。

Transaction revenues grew 3% to $145.1 million and were up 2.1% on an organic basis. The lower growth rate in transaction revenues reflects, in part, the change from gross to net revenue recognition for payments under one of our state enterprise agreements. Just a reminder here about the seasonality of our transaction revenues, our seasonality is really driven by 2 primary factors: State determine deadlines, such as corporate filing deadlines or hunting seasons and the number of business days. Even with online transactions, we see a decline in volumes over the holidays. Q2 is typically our highest volume quarter with peak outdoor seasons, along with tax season deadlines, followed by Q1 due to the high volume of corporate filing services with Q1 deadlines.

交易收入成長 3%，達到 1.451 億美元，有機成長 2.1%。交易收入成長率較低部分反映了我們一項國有企業協議下付款的總收入確認變為淨收入確認。這裡提醒一下我們交易收入的季節性，我們的季節性實際上是由兩個主要因素驅動的：國家確定截止日期，例如公司申報截止日期或狩獵季節以及工作日數。即使是在線交易，我們也發現假期期間交易量有所下降。第二季度通常是我們業務量最高的季度，有戶外高峰期和報稅季節截止日期，其次是第一季度，因為第一季截止日期的公司申報服務量很大。

Q4 will always lag with the holiday season, which lead to fewer business days. While a smaller impact, revenues from driver history records are also stronger in the first half of the year. The sequential decline in transaction revenues this quarter reflects that typical seasonality. SaaS deals comprised approximately 89% of our Q4 new software contract value, compared to 86% last year. Professional services revenue declined 3.7% due to the absence of COVID-related revenues and was flat organically.

第四季總是滯後於假期，導致工作日減少。雖然影響較小，但今年上半年來自駕駛員歷史記錄的收入也較強勁。本季交易收入的連續下降反映了典型的季節性。 SaaS 交易約占我們第四季新軟體合約價值的 89%，而去年為 86%。由於缺乏與新冠病毒相關的收入，專業服務收入下降了 3.7%，並且有機持平。

As Lynn noted earlier, public sector demand remains healthy and we're pleased with the strength of our new contract signings in Q4. During the quarter, we added 156 new SaaS arrangements and converted 92 existing on-premises clients to SaaS, with a total contract value of approximately $137 million, an increase of 39% over last year. In Q4 of last year, we added 140 new SaaS arrangements and had 82 on-premises conversions with a total contract value of approximately $99 million. Also note that while the contract with the California State Parks includes our SaaS solution for outdoor recreation, it is not included in the new SaaS contract value because it is funded completely from transaction fees.

正如林恩之前指出的那樣，公共部門的需求仍然健康，我們對第四季度新合約簽署的強勁勢頭感到滿意。本季度，我們新增了 156 個 SaaS 安排，並將 92 個現有本地客戶轉換為 SaaS，合約總價值約為 1.37 億美元，比去年增長 39%。去年第四季度，我們增加了 140 個新的 SaaS 安排，並進行了 82 個本地轉換，合約總價值約為 9,900 萬美元。另請注意，雖然與加州州立公園的合約包括我們的戶外休閒 SaaS 解決方案，但它不包含在新的 SaaS 合約價值中，因為它完全由交易費用提供資金。

Overall, our pace of on-premises conversions to SaaS continues at a steady pace with 338 slips in 2023. More importantly, the total contract value associated with slips increased to $92 million compared to $76 million last year. As we've discussed, conversions are a significant growth driver over the next several years as we accelerate the pace of flips. Including transaction revenues, expansions with existing clients and professional services, total bookings increased 21.2% on an organic basis.

總體而言，我們的本地 SaaS 轉換步伐繼續穩步推進，到 2023 年將有 338 個單據。更重要的是，與單據相關的總合約價值從去年的 7,600 萬美元增至 9,200 萬美元。正如我們所討論的，隨著我們加快翻轉步伐，轉換將成為未來幾年的重要成長動力。包括交易收入、現有客戶拓展和專業服務在內，總預訂量有機成長 21.2%。

Our total annualized recurring revenue was approximately $1.61 billion, up 7.9% and organically grew 7.1%. Operating margins were better than expected despite pressure from our ongoing cloud transition. Our non-GAAP operating margin was 22.3%, up 70 basis points from Q4 last year. As Lynn discussed earlier, merchant and interchange fees from our payments business under the gross revenue model have a meaningful impact on our overall margins as they are passed through to clients and are included in both revenues and cost of revenues. We paid merchant fees of approximately $35 million in Q4 and approximately $157 million for the full year of 2023. Both cash flows from operations and free cash flow reached new highs for a fourth quarter at $147.4 million and $134.4 million, respectively.

我們的年化經常性收入總額約為 16.1 億美元，成長 7.9%，有機成長 7.1%。儘管我們持續的雲端轉型面臨壓力，但營運利潤率仍優於預期。我們的非 GAAP 營業利潤率為 22.3%，比去年第四季上升 70 個基點。正如林恩之前討論的那樣，在總收入模式下，我們的支付業務產生的商戶費和交換費對我們的整體利潤率產生了重大影響，因為它們會轉嫁給客戶，並包含在收入和收入成本中。我們第四季支付的商家費用約為3,500 萬美元，2023 年全年支付的商家費用約為1.57 億美元。營運現金流和自由現金流均創下第四季新高，分別為1.474 億美元和1.344 億美元。

Cash flow in the quarter was impacted by approximately $15 million of incremental cash taxes due to Section 174. And for the full year, those incremental cash taxes were approximately $127 million. We continue to prioritize repayment of term debt as a use of our cash flow. And in Q4, we reduced our term debt by $90 million, bringing our total repayments for the year to $345 million. We ended Q4 with total outstanding debt of $650 million and cash and investments of approximately $183 million. Our net leverage at quarter end was approximately 0.97x trailing 12-month pro forma EBITDA. Our 2024 guidance is as follows: we expect total revenues will be between $2.095 billion and $2.135 billion. The midpoint of our guidance implies organic growth of approximately 8%. We also expect that merchant fees will be down slightly and that implied growth excluding merchant fees would be approximately 90 basis points higher.

本季現金流受到第 174 條規定的約 1,500 萬美元增量現金稅的影響。全年，這些增量現金稅約為 1.27 億美元。我們繼續優先考慮償還定期債務作為現金流的使用。在第四季度，我們將定期債務減少了 9,000 萬美元，使全年還款總額達到 3.45 億美元。截至第四季末，我們的未償債務總額為 6.5 億美元，現金和投資約為 1.83 億美元。我們季度末的淨槓桿率約為過去 12 個月預計 EBITDA 的 0.97 倍。我們對 2024 年的指導如下：我們預計總收入將在 20.95 億美元至 21.35 億美元之間。我們指導的中點意味著約 8% 的有機成長。我們也預期商家費用將略有下降，且不包括商家費用的隱含成長將高出約 90 個基點。

We expect GAAP diluted EPS will be between $5.17 and $5.37 and may vary significantly due to the impact of discrete tax items on the GAAP effective tax rate. We expect non-GAAP diluted EPS will be between $8.90 and $9.10. We expect our free cash flow margin will be between 17% and 19% including the impact of incremental cash taxes related to Section 174 of approximately $50 million. Other details of our guidance are included in our earnings release and in the Q4 earnings deck posted on our website.

我們預計 GAAP 攤薄後每股收益將在 5.17 美元至 5.37 美元之間，並且由於離散稅項對 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 8.90 美元至 9.10 美元之間。我們預計我們的自由現金流利潤率將在 17% 至 19% 之間，其中包括與第 174 條相關的增量現金稅的影響約 5,000 萬美元。我們的指導的其他詳細資訊包含在我們的收益發布和我們網站上發布的第四季度收益報告中。

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

現在我想把電話轉回給林恩。

Thanks, Brian. We entered 2024 with tremendous optimism and confidence in the year ahead and beyond as we execute our mid- to long-term strategy supporting our Tyler 2030 Vision. We expect to return to a trajectory of consistent operating margin expansion in 2024 as we increasingly realize the benefits of our cloud optimization initiatives and execute our planned exits from our 2 proprietary data centers in 2024 and 2025.

謝謝，布萊恩。進入 2024 年，我們對未來一年及未來充滿信心和信心，執行支持泰勒 2030 願景的中長期策略。隨著我們越來越認識到雲端優化計畫的好處，並計劃在 2024 年和 2025 年退出我們的 2 個專有資料中心，我們預計將在 2024 年恢復到營運利潤率持續擴張的軌道。

We continue to leverage our competitive strengths and demonstrate the value of our deep domain expertise across the broadest most integrated offerings that are uniquely focused on the public sector, while empowering our clients who serve the public through Tyler's next-generation cloud applications. Finally, we are proud to be recognized by Government Technology Magazine as a GovTech 100 company for 2024. This marks our eighth consecutive year being recognized for our work in making a difference for government through technology.

我們繼續利用我們的競爭優勢，在專門針對公共部門的最廣泛、最整合的產品中展示我們深厚的領域專業知識的價值，同時為透過泰勒的下一代雲端應用程式為公眾服務的客戶提供支援。最後，我們很榮幸被《政府技術雜誌》評為 2024 年 GovTech 100 強公司。這標誌著我們連續第八年因透過科技為政府做出貢獻而獲得認可。

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

現在我們想開通問答熱線。

(Operator Instructions) Our first question comes from the line of Ken Wong of Oppenheimer & Co.

（操作員說明）我們的第一個問題來自 Oppenheimer & Co. 的 Ken Wong。

I wanted to maybe just touch on the accelerating pace of flips going into '24. And on one hand, like I think that's a fantastic initiative. You guys are also dialing back or at least decelerating the pace of sales and marketing growth or SG&A, I guess I'm modeling maybe mid-single digits. I guess, what's the confidence in being able to accelerate that pace while also maybe not leaning in as aggressively on the sales and marketing side.

我想也許只是談談進入 24 年後翻轉速度的加快。一方面，我認為這是一項很棒的舉措。你們也正在回落或至少放慢銷售和行銷成長或SG＆A的步伐，我想我正在建模可能是中個位數。我想，能夠加快這一步伐的信心是什麼，同時也可能不那麼積極地傾向於銷售和行銷方面。

Well, really, a lot of the movement in flip is -- doesn't require a lot of sales and marketing efforts. A lot of that is done through our inside sales organization through our existing client relationship managers and it doesn't require a great deal of increase in sales and marketing expenses. And generally, we feel like that sort of mid-single-digit growth in sales and marketing like a lot of efficiencies to do more cross-selling, put more synergies across our sales organization, put more products in the same sales rep bags. So those 2 factors don't really conflict with each other, but -- we believe the resources we have in place really are sufficient to drive the pace of flips that we expect to see over the next several years.

嗯，實際上，很多轉變是——不需要大量的銷售和行銷工作。其中許多工作是透過我們現有的客戶關係經理透過我們的內部銷售組織完成的，並且不需要大量增加銷售和行銷費用。總的來說，我們覺得銷售和行銷方面的中位數成長就像很多效率一樣，可以進行更多的交叉銷售，在我們的銷售組織中發揮更多的協同作用，將更多的產品放在同一個銷售代表的袋子中。因此，這兩個因素並不真正相互衝突，但是 - 我們相信我們擁有的資源確實足以推動我們預計在未來幾年看到的翻轉步伐。

Yes, just a follow-up on that. I mean when we outlined our Tyler 2030 Vision, we obviously -- we've got some goals around flips over the next 6, 7 years. And we also have goals on some of our G&A initiatives. So I think those are both tracking right now in line and with our expectations going forward.

是的，只是後續行動。我的意思是，當我們概述泰勒 2030 年願景時，我們顯然已經在未來 6、7 年裡制定了一些關於翻轉的目標。我們對一些一般管理費用計劃也有目標。所以我認為這些現在都符合我們的預期，也符合我們未來的預期。

Okay. Perfect. And then just a quick follow-up in terms of the hosting efficiencies I guess would you say we've peaked in terms of kind of extracting the efficiencies there? Or is there still a little room to go?

好的。完美的。然後就託管效率進行快速跟進，我想您會說我們在提取效率方面已經達到頂峰嗎？或者說還有一點空間可以走？

I think there's still room to go. And there's a lot that goes into that. We're continuing to optimize our products and find ways for them to run more efficiently. On the other side of it, we're also seeing -- continuing to make strides in our version consolidation, particularly with our major product lines. We've seen over the last 12 months significant version consolidation in 2 of our larger flagship products, and that will continue to contribute efficiencies as we go forward as well as with some of our other products that are out there.

我認為還有空間。這裡面有很多內容。我們正在繼續優化我們的產品並尋找讓它們更有效率運作的方法。另一方面，我們也看到——我們的版本整合繼續取得進展，特別是我們的主要產品線。在過去的 12 個月裡，我們已經看到我們的 2 個較大的旗艦產品進行了重大版本整合，隨著我們的前進以及我們現有的一些其他產品的發展，這將繼續提高效率。

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

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

Lynn, maybe for you, just along those lines. I was wondering if you could just go 1 level deeper into the latest agreement with AWS. And maybe the question is, how does the new agreement maybe change what you had previously? And how can that sort of continue to support the profitability growth that we're clearly seeing.

林恩，也許對你來說，就是這樣。我想知道您是否可以更深入地了解與 AWS 的最新協定。也許問題是，新協議可能會如何改變您先前的協議？這如何才能繼續支持我們清楚看到的獲利成長。

Yes, those are good questions. As you know, we signed an extension that now runs through the end of '31, which runs through our Tyler 2030 initiative, which is great. It obviously just further deepen those relationships, we've made certain commitments to AWS around migrating our existing Tyler clients, our net new clients into AWS. AWS has also made commitments back to us around certain pricing commitments, innovation, marketing, things like that. I'm not really at liberty to go into the specifics of what those details and those commitments and pricing concessions are.

是的，這些都是好問題。如您所知，我們簽署了一項延期協議，該協議現在一直持續到 31 年底，這也貫穿了我們的泰勒 2030 計劃，這非常棒。顯然，這只會進一步加深這些關係，我們已經向 AWS 做出了某些承諾，將我們現有的 Tyler 客戶、我們的淨新客戶遷移到 AWS。 AWS 也就某些定價承諾、創新、行銷等向我們做出了承諾。我實在無權詳細說明這些細節、承諾和價格優惠的具體內容。

But what I can say is that AWS has been a great partner for us. I couldn't be more happy with the relationship that we started in the fall of 2019. And this extension, I think, further embraces that. They're very collaborative with us and are eager to work with us to help us find ways to lower our costs. So they are a true partner.

但我可以說的是，AWS 一直是我們很棒的合作夥伴。我對我們在 2019 年秋天開始的關係感到非常高興。我認為，這次延期進一步體現了這一點。他們與我們非常合作，並渴望與我們合作，幫助我們找到降低成本的方法。所以他們是真正的合作夥伴。

Similar to the way we view our clients in the public sector as partners. That's why they view us. And I think part of the difference also in our relationship now is it's just -- it's more mature. And we're a lot farther along in our cloud journey than we were when we first signed it. If you remember when we first signed the agreement, we were still trying to figure out how our products really -- would really operate in AWS, and we spent a long time trying to just figure out the cost of just moving simply lift and shift. And now we've transformed and we've done all that, and it's how can we make them run even more efficiently in the private clouds -- I mean in the public cloud. So great partner, excited that they're on this journey with us for the next at least 8 years.

類似於我們將公共部門的客戶視為合作夥伴的方式。這就是他們看待我們的原因。我認為我們現在關係的部分差異在於它更加成熟。與我們第一次簽署雲端之旅時相比，我們已經走得更遠了。如果您還記得當我們第一次簽署協議時，我們仍在試圖弄清楚我們的產品如何真正在 AWS 中運行，並且我們花了很長時間試圖弄清楚簡單移動的成本。現在我們已經轉型，我們已經完成了所有這些，重點是如何讓它們在私有雲中（我是說在公有雲中）更有效率地運作。非常出色的合作夥伴，很高興他們在接下來的至少 8 年裡與我們一起踏上這段旅程。

No, that's great. That sounds like a win-win for everybody. I'll stick to the 1 follow-up and Brian, maybe it's for you. Great to see Tyler reach the 17% to 19% free cash flow target. I think 1 year ahead of schedule, and you correct me there if I'm wrong. I know we're not speaking to 2025 necessarily on this call, but maybe conceptually, how do you sort of think about free cash flow margin expansion versus EBIT margin expansion? Should those 2 things move largely in the same range? Or is there any reason to think that one should expand faster than the other? Does that make sense?

不，那太好了。這聽起來對每個人來說都是雙贏。我會堅持第一個後續行動，布萊恩，也許這適合你。很高興看到泰勒達到 17% 至 19% 的自由現金流目標。我認為比計劃提前了一年，如果我錯了，請糾正我。我知道我們在這次電話會議上不一定談論 2025 年，但也許從概念上講，您如何看待自由現金流利潤率擴張與息稅前利潤率擴張？這兩件事應該在很大程度上在同一範圍內變化嗎？或者有什麼理由認為其中一個應該比另一個擴張得更快？那有意義嗎？

Yes, yes. I think in the near term, they likely expand in the same range. And particularly, I think you see that in 2024, most likely, especially because we still, although it's lessening and lessens over the next several years, there still is an impact of the Section 174 change. It was $127 million impact on our free cash flow in 2023. It's about a $50 million impact in 2024, and it will decline again over the next 4 years after that until it sort of reaches equilibrium.

是的是的。我認為在短期內，它們可能會在同一範圍內擴張。特別是，我認為您最有可能在 2024 年看到這一點，尤其是因為我們仍然會受到第 174 條變更的影響，儘管這種情況在未來幾年中會越來越少。 2023 年，我們的自由現金流受到了 1.27 億美元的影響。2024 年，這一影響約為 5,000 萬美元，此後的未來 4 年，這一影響將再次下降，直到達到平衡。

But I think in the longer term, we would expect that free cash flow growth would be higher, especially if you take out that Section 174 impact. Because a couple of things, we've continued to get leverage out of CapEx and especially as we exit our data centers where a significant amount of our CapEx has been focused in recent years as we continue to become more efficient around how we manage office facilities and our other CapEx associated with our business.

但我認為，從長遠來看，我們預期自由現金流成長將會更高，特別是如果剔除第 174 條的影響的話。由於多種原因，我們繼續從資本支出中獲得槓桿作用，特別是當我們退出數據中心時，近年來我們的大量資本支出一直集中在數據中心，因為我們在管理辦公設施方面繼續變得更加高效以及與我們業務相關的其他資本支出。

And actually, you'll see we have lower expectation for CapEx around software development going forward as well. And -- but most importantly, the cash flow characteristics of the recurring revenues -- the SaaS revenues paid in advance and create deferred revenue, the transaction revenue is generally getting paid at the time of the transaction. So there aren't big receivables associated with those. So -- as those businesses grow, those revenue streams grow, they should have the impact of causing our cash flow to grow faster than the EBIT.

實際上，您會發現我們對未來軟體開發的資本支出的期望也較低。而且——但最重要的是，經常性收入的現金流特徵——SaaS收入提前支付並創造遞延收入，交易收入通常在交易時支付。因此，沒有與這些相關的大額應收帳款。因此，隨著這些業務的成長，這些收入流的成長，它們應該會導致我們的現金流成長快於息稅前利潤。

Our next question comes from the line of Joshua Reilly from Needham.

我們的下一個問題來自尼達姆的約書亞·賴利 (Joshua Reilly)。

Nice job on the quarter here. Overall, the demand environment seems very strong, but the initial revenue guidance for 2024 was a bit below the Street at the midpoint and implies a little greater acceleration in 2025 to hit the midterm target for revenue of $2.35 billion. How are you thinking about the progression to hit this 2025 target now, given the initial revenue guidance for the year?

本季工作做得很好。整體而言，需求環境似乎非常強勁，但 2024 年的初始收入指引略低於華爾街的中點，這意味著 2025 年將有更大的加速實現 23.5 億美元收入的中期目標。鑑於今年的初步收入指導，您如何看待現在實現 2025 年目標的進展？

Yes, Josh, right now, I'm -- I would say I'm confident in our -- both our 2025 and our 2030 projections just from overall what I'm seeing in the business. As Brian remarked or pointed out in the opening remarks, a couple of things impact revenue growth this year, and one really is the flat to slightly declining merchant fee growth. So when you pull out merchant fees, our growth is really more in the closer to mid-9s, probably 9 3, 9 4. It's about 90 basis points. And those tend to fluctuate. And part of that is, as Brian mentioned, due to one of our large state enterprise contracts flipping from the gross to net model.

是的，喬什，現在，我對我們的 2025 年和 2030 年預測充滿信心，僅從我在業務中看到的總體情況來看。正如布萊恩在開場白中所說或指出的那樣，有幾件事影響了今年的收入成長，其中一個確實是商家費用增長持平或略有下降。因此，當你剔除商家費用時，我們的成長其實更接近 9 左右，可能是 9 3、9 4。大約是 90 個基點。這些往往會波動。正如布萊恩所提到的，部分原因是我們的一份大型國有企業合約從總額模式轉變為淨額模式。

That's super helpful.

這非常有幫助。

Yes, overall, as you pointed out, I mean, what we're seeing in the markets right now, the demand -- the number of new business deals we're signing, our competitive position wins against really some key large Tier 1 competitors is -- are the things that really give me a lot of confidence. We recently had our national sales meeting really dive deep into sales forecast, not only for the next 12, 24 months, but even beyond. And right now, things look pretty good.

是的，總的來說，正如您所指出的，我的意思是，我們現在在市場上看到的情況，需求——我們正在簽署的新業務交易的數量，我們的競爭地位確實戰勝了一些主要的大型一級競爭對手是──這些事情確實給了我很大的信心。我們最近召開了全國銷售會議，真正深入探討了銷售預測，不僅是未來 12 個月、24 個月，甚至是更長遠的銷售預測。現在，情況看起來不錯。

Got it. And then just a quick follow-up. The Idaho Courts deal. That seems like an important deal in terms of being the first. I believe it's the first state to migrate out of the 16 or 17 that you have on-premise case management installations. Do you think this is a tipping point? Or do you think that the others 16 or 17 states are still a couple of years away from migrating?

知道了。然後進行快速跟進。愛達荷州法院的交易。就成為第一家而言，這似乎是一項重要的交易。我相信這是第一個從 16 或 17 個擁有本地案例管理安裝的州中遷移出來的州。您認為這是一個轉捩點嗎？或者您認為其他 16 或 17 個州距離移民還需要幾年時間？

Yes, I think it's hard to say, Josh. But I think -- every -- all of our global submarkets are a little bit different in the courts market, for sure. It's an area where people may be a little reluctant to go first. So getting Idaho there and going, eyes are going to be on it. And I think as we successfully pull off that deal, I do think it will trigger more throughout the courts community. As you know, everything we do is reference business, but particularly in these larger state-wide deals our state corp business. I think all the other states are watching Idaho. So we need to do what we do best, which is go and execute on the business and go make it a great experience. And I do think that will be a domino that will ripple throughout their client base.

是的，我認為這很難說，喬許。但我認為，我們的全球所有子市場在法庭市場上都略有不同，這是肯定的。人們可能不太願意先去這個區域。因此，將愛達荷州帶到那裡並繼續前進，人們的目光將會集中在它身上。我認為，當我們成功達成這項協議時，我確實認為它將在整個法院界引發更多的關注。如您所知，我們所做的一切都是參考業務，但特別是在這些較大的全州範圍交易中，我們的國有公司業務。我認為所有其他州都在關注愛達荷州。因此，我們需要做我們最擅長的事情，那就是繼續執行業務，並讓它成為一種很棒的體驗。我確實認為這將是一個多米諾骨牌，將波及整個他們的客戶群。

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

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

This is Connor Passarella on for Terry. I also just wanted to ask 1 on the Idaho state corporate deal. First, could you maybe just break down how we should think about this deal playing out in the model and maybe what the time line looks like for getting a large court system like this live in terms of the courtrooms and the counties and kind of how it all works with getting to cloud?

我是特里的康納·帕薩雷拉。我也只是想問 1 關於愛達荷州公司交易的問題。首先，您能否分解我們應該如何考慮在模型中進行的這筆交易，以及從法庭和縣方面來看，建立這樣一個大型法院系統的時間線是什麼樣的，以及它是如何實現的一切都可以透過雲端來實現嗎？

Yes, it's going to take some time for the full impact of this deal. I think we're going to recognize probably about 50% of the uplift revenue in 2024, and we'll really see the full impact in 2025. All of our courts businesses are large projects. We talked about the L.A. criminal courts go live. Probably 1 of the most successful go-lives we've had in Tyler's history, this will mirror that and as it will be our first statewide flip. But from a timing perspective, revenues, uplift, all that, we'll get about 50% of it in 2024 and 2025, we'll have the full run rate.

是的，這筆交易的全面影響需要一段時間才能反映出來。我認為我們將在 2024 年確認約 50% 的成長收入，並在 2025 年真正看到全面的影響。我們所有的球場業務都是大型項目。我們談到了洛杉磯刑事法庭的上線。這可能是泰勒歷史上最成功的上線之一，這將反映這一點，因為這將是我們第一次全州範圍內的翻轉。但從時間角度來看，收入、提升等等，我們將在 2024 年和 2025 年獲得約 50% 的收入，我們將擁有全部運行率。

Yes, I think about midyear is -- because that midyear is when we expect to start to bring them up into AWS. And that uplift is included in our guidance for the year, but it's a couple of million dollar uplift from what they were paying in maintenance.

是的，我認為年中是——因為年中我們預計開始將它們引入 AWS。這一增長已包含在我們今年的指導中，但比他們支付的維護費用增加了幾百萬美元。

Got it. Got it, makes sense. And then just on a follow-up. I just wanted to ask one around transaction revenues. Could you maybe just talk a little more about the impact of payments from customers slipping gross to net in the quarter? I think you mentioned the flip is one of the state enterprise agreements. I was just curious on how that impacted overall revenue in that segment.

知道了。明白了，有道理。然後進行後續行動。我只是想問一下有關交易收入的問題。您能否再多談談本季客戶付款從總額滑落到淨額的影響？我想你提到翻轉是國營企業協議之一。我只是好奇這對該領域的整體收入有何影響。

Yes. As we've talked about, one of our state contracts, actually midyear change from gross to net. So we had that impact in the second half of this year, and it also impacts us in the first half of next year. I think the overall impact for the second half of the year was in the $9 million to $10 million range, the first half of next year because is, I believe, somewhere in a similar range. And that was probably split between Q3 and Q4, but probably a little bit more of that impact was in Q3, but there was a several million dollar impact on the quarter.

是的。正如我們所討論的，我們的一項州合約實際上在年中從總額變為淨額。所以我們在今年下半年產生了這種影響，它也會在明年上半年影響我們。我認為今年下半年的整體影響在 900 萬美元到 1000 萬美元的範圍內，明年上半年的影響力也處於類似的範圍內。這可能會在第三季和第四季之間分配，但第三季的影響可能更大一些，但對該季度的影響為數百萬美元。

Our next question comes from the line of Matt VanVliet of BTIG.

我們的下一個問題來自 BTIG 的 Matt VanVliet。

I guess on the deal with the California Parks division there. You talked about it being exclusively funded through transaction revenue. Maybe just help us think about kind of I guess, not only maybe what the contractual minimums might be there? What's sort of embedded in guidance? How much potential upside is there to what's embedded in guidance? And then maybe more importantly, down the road, do you envision other states trying to take on approach more like this, where there's less contracted SaaS revenue and more funded through the program itself?

我猜是與加州公園部門的交易有關。您談到它完全透過交易收入提供資金。也許只是幫助我們思考一下我想的，不僅僅是合約最低限度可能是多少？指南包含哪些內容？指導中包含的內容有多少潛在的上升空間？也許更重要的是，您是否設想其他州也嘗試採取類似的方法，即合約 SaaS 收入較少，而透過專​​案本身獲得的資金較多？

Yes. Matt, I'll start, and Brian, you may jump in. There are a couple of things that are really exciting about that California State Parks deal. One obviously is it's the largest transaction deal in Tyler's history. The second thing is, as you pointed out, it validates this sort of self-funding model. It's not a surprise. Anybody who reads the journal that California has significant deficits, significant budgetary issues right now. And so going to them with a self-funded model on this type of contract is really about the only way they can do it.

是的。馬特，我先開始，布萊恩，你可以插話。加州州立公園交易有幾件事確實令人興奮。其中之一顯然是泰勒歷史上最大的交易。第二件事是，正如您所指出的，它驗證了這種自籌資金模式。這並不奇怪。任何讀過這本雜誌的人都會發現，加州目前有嚴重的赤字和嚴重的預算問題。因此，向他們提供此類合約的自籌資金模式實際上是他們能做到這一點的唯一方法。

And so again, it validates that model, that part of our business. Because it's self-funded, the impact going forward. We will be recognizing a lot more expense in 2024. It's actually a little bit of a drag on margins in 2024, but ramps up significantly in '25 and continues that ramp up with margin expansion all the way through the end of the contract in 2031, assuming we don't get the two 1-year extensions, which if we execute, we think we would get.

如此一來，它再次驗證了該模型、我們業務的這一部分。因為它是自籌資金，所以影響會持續下去。我們將在 2024 年認識到更多的費用。這實際上對 2024 年的利潤率造成了一點拖累，但在 25 年顯著增加，並且隨著利潤率的擴張一直持續到 2031 年合約結束。 ，假設我們沒有得到兩次為期一年的延期，如果我們執行的話，我們認為我們會得到。

Brian, do you have anything more to add?

布萊恩，你還有什麼要補充的嗎？

Yes. I just would say, your point is good because it isn't a fixed SaaS fee that the transaction revenues are currently an estimate. And we think we have a pretty good idea of what volumes will be and -- but they may vary from that. And it will -- currently in the plan for this year, we expect a few million dollars of revenues, and then it ramps up to that north of $20 million, starting and it will be approaching, we think, $20 million next year and then be north of $20 million beyond that as volumes increase and it becomes fully ramped.

是的。我只是想說，你的觀點很好，因為交易收入目前是一個估計值，這並不是固定的 SaaS 費用。我們認為我們對銷量有一個很好的了解——但它們可能會有所不同。目前在今年的計劃中，我們預計收入將達到數百萬美元，然後增加到 2000 萬美元以上，我們認為明年將接近 2000 萬美元，然後隨著銷量的增加和全面提升，該金額將超過2000萬美元。

But yes, it is subject to variances and subject to seasonality as well unlike a regular SaaS contract that is pro rata revenue recognition every quarter. This will also have seasonality and it's around those, as we do in many of our outdoor transaction revenues.

但是，是的，它會受到差異和季節性的影響，並且與每個季度按比例確認收入的常規 SaaS 合約不同。這也將具有季節性，並且圍繞著這些季節性，就像我們在許多戶外交易收入中所​​做的那樣。

Okay. Very helpful. And then maybe just 1 clarification around the AWS extension. As you continue to scale that business, are we still at maybe a subscale type of cost relative to the revenue running through that system? Or meaning is there still more leverage that can be achieved over the next couple of years through that contract? Or are we at a level now where it's kind of a pay as you go as you get more scale?

好的。很有幫助。然後可能只是關於 AWS 擴充的 1 個澄清。當您繼續擴展該業務時，相對於透過該系統運行的收入，我們的成本是否仍處於較低水準？或者意味著在未來幾年內透過該合約是否還可以實現更多的槓桿作用？或者說，我們現在是否處於這樣一種水準：隨著規模的擴大，即付即用？

No, I think there's still more leverage. And I think generally going forward, we make certain commitments to AWS, and we're making those commitments based on projections. But we're continuing, as I mentioned earlier, to further optimize our products further reduce our versions. I think the leverage in our cloud operations still has quite a bit of room to go.

不，我認為還有更多的槓桿。我認為，總體而言，展望未來，我們會對 AWS 做出某些承諾，而我們是根據預測做出這些承諾的。但正如我之前提到的，我們正在繼續進一步優化我們的產品，進一步減少我們的版本。我認為我們的雲端運營槓桿仍有相當大的發展空間。

Great. Very helpful.

偉大的。很有幫助。

Matt, I'd point out 1 other thing about the California contract. As we mentioned on the call, this is a significant expansion of what is already in an existing agreement we have with California under with US eDirect, which we acquired -- after we acquired NIC. So there are currently annual revenues under that agreement of a little less than $3 million a year. So it's not all incremental revenues, but it's a significant increase in the revenues as that has expanded and especially because it now includes payment processing.

馬特，我想指出有關加州合約的另一件事。正如我們在電話會議中提到的，這是我們在收購 NIC 後與加州簽署的 US eDirect 現有協議的重大擴展。因此，目前該協議下的年收入略低於 300 萬美元。因此，這並非全是增量收入，而是隨著收入的擴大，特別是因為它現在包括支付處理，收入顯著增加。

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

我們的下一個問題來自高盛的加布里埃拉·博爾赫斯。

This is [Kelly Ballentine] on for Gabriela. Another question on the number of conversions. Conversions have been in kind of the 70 to 100 range per quarter for the past 2 years. How should we think about the ramp to converting maybe hundreds of customers a quarter? And are you sharing any expectations for a number of flips in 2024?

這是加布里埃拉的[Kelly Ballentine]。另一個關於轉換次數的問題。過去 2 年，每季的轉換次數在 70 到 100 次之間。我們該如何看待每季轉換數百名客戶的速度？您對 2024 年的多次翻轉有何期望？

So I'll start. You're right. Kelly, our flips in Q4 were actually up about 12% over Q4 last year. We're not putting out guidance as far as I know, Brian, on specific foot deal count. There's a lot of things that go into that. And as you look out to 2030, the goals we outlined. Clearly, we will be ramping up as over time. There's things that go into the flips. And a lot of it is we have to get our customers on more modern versions. And when I talk about our version collapse efforts that have been going on for several years, but some of the strides that we've been making, as we continue to make strides on that, it will make -- it will accelerate -- it will help accelerate the pace of flips going forward.

那我就開始吧。你說得對。凱利，我們第四季的翻轉實際上比去年第四季增加了約 12%。據我所知，布萊恩，我們沒有就具體的客流量提供指導。這牽涉到很多事情。展望 2030 年，我們概述了目標。顯然，隨著時間的推移，我們將不斷加強。有些事情會發生翻轉。其中很大一部分是我們必須讓客戶使用更現代的版本。當我談到我們多年來一直在進行的版本崩潰工作時，但我們一直在取得的一些進展，隨著我們繼續在這方面取得進展，它將會——它將加速——它將有助於加快未來翻轉的步伐。

I just would add that it's also important, I think, to look at the size of the flips and the dollar value. So for example, this quarter with the signing the Idaho state corp deal significantly bigger than most of our typical flips. So even though that only counts as 1 of the 92, the dollars were pretty meaningfully different. And I think in our prepared remarks, we talked about the size of the increase in the dollar value of the flip contracts. And so in general, I'd expect that as we go forward over the next few years, we'll see more of our larger clients start to move, and so it has a bigger impact on that uplift on the dollar size. So obviously, each flip is not created equal and in general, we've got more of our large clients that are still to be migrated.

我只是想補充一點，我認為，看看翻轉的大小和美元價值也很重要。例如，本季簽署的愛達荷州公司協議比我們大多數典型的翻轉要大得多。因此，儘管這僅算作 92 美元中的 1 美元，但美元的差異卻相當大。我認為在我們準備好的發言中，我們討論了翻轉合約的美元價值增加的規模。因此，總的來說，我預計，隨著未來幾年的發展，我們將看到更多的大客戶開始採取行動，因此這對美元規模的提升產生了更大的影響。顯然，每次翻轉都不相同，總的來說，我們有更多的大客戶需要遷移。

Yes, that's helpful. A quick follow-up. On that versions control point, you mentioned last quarter, you had the goal kind of by the end of 2022 or early 2024 of only supporting 2 of the most recent versions of each product. Where are you at in kind of achieving that goal?

是的，這很有幫助。快速跟進。在版本控制點上，您上季提到，您的目標是到 2022 年底或 2024 年初僅支援每個產品的 2 個最新版本。您在實現這一目標方面處於什麼階段？

We've made a lot of progress. In particular, if you look at our enterprise ERP product, for example, I think at the end of last year, we only had about 23% of that client base on the more modern version at the end of this year, at the end of 2023 that was up to 86%. We've made similar strides with our Enterprise Justice solution. So just generally, across the board, we're tracking on that. I'm not sure if I remember saying at the end of 2025, I think it was more '26, but we're -- I think we're actually ahead of the pace that I was thinking about and discussing maybe 18 months, 24 months ago.

我們已經取得了很大的進步。特別是，如果你看一下我們的企業 ERP 產品，例如，我認為在去年底，我們只有大約 23% 的客戶群使用了更現代的版本，在今年年底，在2023 年這一數字將達到86% 。我們的企業正義解決方案也取得了類似的進展。所以總的來說，我們正在全面追蹤這一點。我不確定我是否記得在 2025 年底說過，我認為這更像是 26 個月，但我們——我認為我們實際上領先於我考慮和討論的可能 18 個月的步伐， 24 個月前。

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

我們的下一個問題來自貝爾德 (Baird) 的 Rob Oliver。

Lynn, first question for you. Just around Public Safety. Must be gratifying just to see the way the business is working after many years through the New World acquisition. And now moving to cloud faster than expected. So my question is, it seems like that would be good for Tyler. I just would be curious to hear your view on any potential shift in the competitive landscape that, that might cause, meaning some of your legacy typical competitors that we know in this space, are they properly cloud-enabled? And conversely, are you seeing new competitors in the market in Public Safety as these deals shift more to cloud first? And then I had a quick follow-up for Brian.

林恩，第一個問題給你。就在公共安全附近。看到新世界收購多年後業務的運作方式，一定會感到高興。現在遷移到雲端的速度比預期的快。所以我的問題是，這似乎對泰勒有利。我只是很想聽聽您對競爭格局任何潛在變化的看法，這可能會導致我們在這個領域認識的一些傳統的典型競爭對手，他們是否正確支持雲端？相反，隨著這些交易更多地轉向雲，您是否在公共安全市場上看到了新的競爭對手？然後我對布萊恩進行了快速跟進。

Yes, Rob, it's actually -- it's very interesting and to your point, gratifying to see this shift. And we've been anticipating it, but we just didn't know when it was going to happen. I think we mentioned on the -- in the opening remarks, about 46% of our Q4 deals were cloud deals in public safety. That's up from 16% in Q2. As we look out next year, we think it's going to cross 50%, and we're sort of planning on a little north of 50%. We're taking an approach that now with public safety as we see the market receptive start to be. It's an approach that we took generally with Tyler going back 4, 5 years, which is, going forward, we really want to be leading to the cloud. We think the market is ready.

是的，羅布，這實際上非常有趣，就你而言，很高興看到這種轉變。我們一直在期待它，但我們只是不知道它什麼時候會發生。我想我們在開場白中提到，我們第四季的交易中約有 46% 是公共安全領域的雲端交易。這比第二季的 16% 有所上升。展望明年，我們認為這一比例將超過 50%，而且我們正在計劃略高於 50%。我們現在正在採取一種與公共安全相關的方法，因為我們看到市場開始接受這種方法。這是我們泰勒四、五年前普遍採取的方法，也就是說，展望未來，我們真的希望引領雲端。我們認為市場已經準備好了。

As it relates to competitors, I'm not going to list all the different competitors in Public Safety. Obviously, we've had a few pop up in the last couple of years that were more cloud-native already. Those have been a little bit smaller competitors, and they have had their own set of issues to deal with. I think that we are well positioned with our cloud strategy in Public Safety to take advantage of this market shift. We have new leadership at Public Safety. It's been on our website, you might have seen a new division President that came on last year, came from outside of Tyler. He's actually has led -- been a part of leading companies through a cloud transition.

由於它涉及競爭對手，我不會列出公共安全領域的所有不同競爭對手。顯然，過去幾年我們已經出現了一些更雲端原生的產品。這些都是規模較小的競爭對手，他們有自己的一系列問題需要處理。我認為我們在公共安全領域的雲端策略已經做好了充分準備，可以利用這個市場轉變。我們在公共安全方面有了新的領導階層。在我們的網站上，您可能已經看到去年上任的新部門總裁，來自泰勒以外的地方。他實際上已經領導並成為領先公司的一部分，完成了雲端轉型。

So it's exciting to have him there, have him up in Troy with the people and really sort of helping lead those efforts. So I like where we are, like where we sit. And to reiterate your words, it's gratifying to see these early results. But a lot of things I'm going to caution it's a lot of things to go execute on in the future, but it is good to see this shift starting to happen in public safety.

因此，很高興他能來到特洛伊，與人們一起並真正幫助領導這些努力。所以我喜歡我們所處的位置，喜歡我們坐的地方。重申一下你的話，看到這些早期結果令人欣慰。但我要提醒的是，有很多事情需要在未來執行，但很高興看到這種轉變開始在公共安全領域發生。

Okay. I appreciate that. And then Brian, just a question around the R&D expense guide for the year, implying kind of mid-teens year-over-year growth. Just -- can you just talk about what some of the biggest drivers of that are within that R&D line?

好的。我很感激。然後布萊恩，只是一個關於今年研發費用指南的問題，這意味著同比增長在十幾歲左右。只是 - 您能談談研發線內的一些最大驅動因素是什麼嗎？

Yes. I mean I think it continues to be a lot of development around the cloud and new -- our optimization and efficiency efforts around optimizing our products for the cloud. There is a shift from R&D that was previously being capitalized, especially around some of the cloud projects. That will now be expensed. So a lot of it is the same people, but now running through expense as opposed to being capitalized. And that's obviously, it doesn't change our cash flow, but it changes where it turns up on the income statement. So I think it's important to note that we are expecting to drive margin expansion even as we have a movement away from capitalized software development and to more R&D expense.

是的。我的意思是，我認為圍繞雲端和新事物的大量開發仍然是我們圍繞優化雲端產品的優化和效率工作。先前資本化的研發發生了轉變，尤其是圍繞著一些雲端項目。現在將被支出。因此，其中很多都是同一個人，但現在透過支出而不是資本化。顯然，它不會改變我們的現金流，但會改變它在損益表中的顯示位置。因此，我認為重要的是要注意，即使我們正在從資本化軟體開發轉向更多研發支出，我們仍期望推動利潤率擴張。

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

我們的下一個問題來自 CJS Securities, Inc. 的 Charles Strauzer。

Looking at the guidance, especially as it pertains to the quarters, are there any abnormalities that we should take into account as we build our models out?

看看指南，特別是與季度相關的指南，我們在建立模型時是否應該考慮到任何異常情況？

I don't think there's anything unusual. What we did point out, I think both, we and the Street are still getting used to the seasonality of the transaction business. And I see when they were a separate public company, certainly we're well versed in that and people who followed them more. But as that impacts Tyler and as we saw this quarter, that seasonality around the transactions is pretty significant. I don't expect that to be meaningfully different in 2024, but I think that's the biggest thing to look out for when you look at the quarters.

我不認為有什麼不尋常的。我們確實指出，我認為我們和華爾街仍在適應交易業務的季節性。我看到當他們是一家獨立的上市公司時，我們當然很熟悉這一點，而且人們更關注他們。但正如我們在本季看到的那樣，這對泰勒產生了影響，交易的季節性非常重要。我預計 2024 年情況不會有太大不同，但我認為這是在查看季度時最需要關注的事情。

Great. And then just more of a macro question for you, given the impact in Congress related to the spending bill. Are you seeing any changes to the sales cycle, especially in your federal business.

偉大的。考慮到支出法案對國會的影響，這對你來說是一個宏觀問題。您是否發現銷售週期有任何變化，尤其是在您的聯邦業務中。

Charles, yes, not really, not right now. Q1 is probably -- we talked about the federal, we talk about seasonality. Q1 is probably a little bit slower time in that business as well. And right now, there's no real change in our outlook.

查爾斯，是的，不是真的，不是現在。第一季可能是——我們談論了聯邦，我們談論了季節性。第一季在該行業的發展速度也可能稍慢一些。目前，我們的觀點沒有真正的改變。

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

我們的下一個問題來自威廉·布萊爾的喬納森·何（Jonathan Ho）。

Just one question to start out with in terms of operating leverage. Can you maybe walk through for us, some of the levers that you have to pull down on for additional operating leverage and some of the moving parts there as we think about your guidance for 2024.

首先要討論的一個問題是營運槓桿。您能否為我們介紹一下，在我們考慮您對 2024 年的指導時，您必須按下以獲得額外營運槓桿的一些槓桿以及其中的一些活動部件。

I'd say most of the leverage that we're seeing in the model is coming from cloud operations and the things we've talked about, the impact of our moving customers out of our data centers and into AWS and our plan to have that first data center closed midyear. The benefits we're getting from both scale and improved costs at AWS as we put our new customers there and move existing hosted customers into AWS. So those unit costs become lower. And I think the new agreement with AWS further helps that pricing and leverage that we get as we scale that business. The version consolidation expenses or benefits that Lynn mentioned as we eliminate multiple versions of software and create efficiencies around both support and development.

我想說，我們在模型中看到的大部分槓桿作用都來自雲端運營和我們討論過的事情，將客戶從資料中心轉移到 AWS 的影響以及我們的計劃第一個資料中心於年中關閉。當我們將新客戶放在那裡並將現有託管客戶轉移到 AWS 時，我們從 AWS 的規模和成本降低中獲得了好處。因此這些單位成本變得更低。我認為與 AWS 的新協議進一步有助於我們在擴展業務時獲得定價和槓桿作用。 Lynn 提到的版本整合費用或收益是因為我們消除了軟體的多個版本並提高了支援和開發的效率。

So those cloud operations are really the biggest things driving our margin leverage, and those are the things we pointed to at Investor Day that will continue to drive that margin expansion that we expect to see over the next several years as we see versus 2030 targets.

因此，這些雲端業務確實是推動我們利潤槓桿的最大因素，而這些正是我們在投資者日指出的，將繼續推動我們預計在未來幾年看到的利潤率擴張，就像我們看到的2030年目標一樣。

Yes. And John, I would just add to -- I mean, we're always looking at levers to help make us more efficient. There's a number of internal initiatives going on. where we look around and look up and see opportunities for where we can operate internally more efficiently. And there's a number of those things that are -- we're actively acting on, which is really sounds we're progressing on, so.

是的。約翰，我想補充一點——我的意思是，我們一直在尋找幫助我們提高效率的槓桿。目前正在進行許多內部舉措。我們環顧四周，尋找並發現可以更有效地進行內部營運的機會。我們正在積極採取行動，這確實是我們正在取得進展的事情，所以。

Makes sense. That makes sense. Just with regards to use of capital, now that your debt payments have put sort of the interest payments under 1x EBITDA, how should we think about your plans for capital deployment going forward?

說得通。這就說得通了。就資本使用而言，既然你們的債務支付已經將利息支付納入了 1 倍 EBITDA 之下，我們應該如何考慮你們未來的資本部署計畫？

Yes. Sure, Jonathan. I think it's -- I think right now, we're still sort of in the same place we've been for the last couple of years. We're even though we will likely pay off the term debt sometime early this spring -- sometime this spring, we still have that $600 million convert that's due in a little more than 2 years. So my anticipation would be we will be building some cash reserves to be in a position to pay that off rather than renegotiate that at a high bank rate.

是的。當然，喬納森。我認為，我認為現在，我們仍然處於過去幾年的同一個地方。儘管我們可能會在今年春天早些時候的某個時候償還定期債務，但我們仍然有 6 億美元的轉換資金將在兩年多一點的時間內到期。因此，我的預期是，我們將建立一些現金儲備，以便能夠償還債務，而不是以高銀行利率重新協商。

But at the same time, just like we've done over the last couple of years, we were going to continue to do M&A, particularly where it makes sense, strategically and where it's accretive to Tyler. Last year, we did 4 deals. I think we spent about $75 million, $76 million in cash and stock. Over the last few years, we've spent several hundred million dollars of deals even as we were prioritizing debt paydown. So we still want to prioritize being in a good position when the convertible is due, but at the same time, we'll make smart acquisitions along the way.

但同時，就像我們過去幾年所做的那樣，我們將繼續進行併購，特別是在有意義、有戰略意義以及對泰勒有利的地方。去年，我們做了 4 筆交易。我想我們花了大約 7500 萬美元，其中 7600 萬美元是現金和股票。在過去的幾年裡，即使我們優先考慮償還債務，我們也花了數億美元的交易。因此，我們仍然希望優先考慮在可轉換債券到期時處於有利位置，但同時，我們將一路進行明智的收購。

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

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

Lynn, can you remind us just when, say, contracts that you signed on a SaaS basis, 4 or 5 years ago start to come up for renewal. How much of that is the renewal function -- an opportunity for cross-sell, upsell for you? Meaning as Munis or ERP deals or SaaS deals come up, is that an opportunity for the salespeople to start talking about additional products or solutions, meaning we should start to get into a little bit of a renewal cycle over the next couple of years. Just wondering how that works in terms of the uplift, either on a cross or upsell basis.

Lynn，您能否提醒我們一下，您在 4 或 5 年前簽署的基於 SaaS 的合約何時開始需要續約？其中有多少是續訂功能——為您提供交叉銷售、追加銷售的機會？隨著 Munis 或 ERP 交易或 SaaS 交易的出現，銷售人員有機會開始談論其他產品或解決方案，這意味著我們應該在未來幾年開始進入更新週期。只是想知道這在提升方面如何發揮作用，無論是在交叉銷售還是追加銷售的基礎上。

Well, it certainly is another conversation point with the client. So anytime you use a conversation point, there's opportunities for cross-sell, upsell. But we've got installed sales teams across all of our organizations. And they're reaching out to clients, whether they're halfway through their SaaS contract or at the beginning of the SaaS contract or towards the end of it. So I don't know that that's a specific trigger for Signify material uplift but it is just another -- it's another data point that's a contact point with our clients.

嗯，這當然是與客戶的另一個談話點。因此，只要您使用對話點，就有機會進行交叉銷售、追加銷售。但我們在所有組織中都設立了銷售團隊。無論客戶是在 SaaS 合約簽訂的中途，還是在 SaaS 合約的開始或即將結束時，他們都會與客戶聯繫。因此，我不知道這是 Signify 材料提升的特定觸發因素，但這只是另一個數據點，它是與我們客戶的聯繫點。

That's really helpful.

這真的很有幫助。

Flips provide that same opportunity. So we're having conversations with clients about moving a product to the cloud, it gives us an opportunity to have a conversation around other products, maybe in that same suite that they might have on-premises from another provider that aren't Tyler products and the opportunity to bring together an integrated set of solutions while they're moving to the cloud. And I think that as we continue to accelerate the pace of those that we'll continue to look for those opportunities to -- for greater upsells and cross-sells.

翻轉提供了同樣的機會。因此，我們正在與客戶討論將產品遷移到雲端的問題，這使我們有機會圍繞其他產品進行對話，也許在他們可能擁有來自非 Tyler 產品的其他提供者的本地產品的同一套件中以及在遷移到雲端時將一組整合解決方案整合在一起的機會。我認為，隨著我們繼續加快步伐，我們將繼續尋找機會，以實現更大的追加銷售和交叉銷售。

Okay. And then I guess, Brian, speaking of flips, obviously, you're guiding maintenance revenue to come down a little bit, which makes tons of sense as you flip people from on-prem to cloud. Can you just remind us the benefits of the uplift of that change, that plays out over a couple of years, meaning you just use the Idaho example. The reason you're not seeing sort of the SaaS revenue get all the benefit of that flip is you're just not going to see it on the income statement until '25. So is that the way we should think about sort of that 1.7% uplift that plays out over 24 months?

好的。然後我想，布萊恩，說到翻轉，顯然，您正在引導維護收入下降一點，當您將人員從本地轉移到雲端時，這非常有意義。您能否提醒我們這種變化的好處，這種變化將在幾年內發揮作用，這意味著您只需使用愛達荷州的例子。你看不到 SaaS 收入從這一轉變中獲得全部好處的原因是，直到 25 年你才會在損益表上看到它。那麼，我們應該以這種方式來考慮 24 個月內 1.7% 的成長嗎？

Yes, there's always a lag. And sometimes we might sign a flip and it starts next quarter, and then we see that uplift then. Other times, whether it's because of things that the client needs to do to get -- internally to get ready to move, whether it's that they need to upgrade to a current version of the software or they need to do things -- they've got other internal priorities around their own resources that caused a delay or there are a variety of reasons why there can be a lag of from 1 to multiple quarters. And sometimes it doesn't all happen at once.

是的，總是有滯後。有時我們可能會簽署一份翻轉協議，並在下個季度開始，然後我們就會看到這種提升。其他時候，無論是因為客戶需要做一些事情——內部準備移動，無論是他們需要升級到軟體的當前版本還是需要做一些事情——他們已經圍繞自己的資源製定其他內部優先事項，導致延遲，或者有多種原因導致可能出現1 個季度到多個季度的延遲。有時這一切不會同時發生。

So they may be flipping multiple applications with us so that they start -- the uplift starts at different times. So I'd say generally, it's not 24 months, but it could be from 1 to a few quarters before we see the full impact of those from the time we sign it to when we see the impact on the uplift.

因此，他們可能會與我們一起翻轉多個應用程序，以便他們開始——提昇在不同的時間開始。所以我想說，一般來說，這不是 24 個月，但可能需要 1 到幾個季度才能看到從我們簽署協議到我們看到對提升的影響的全部影響。

Our next question comes from the line of Alex Zukin of Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Alex Zukin。

Maybe just the first one. I think last quarter, you talked about wanting to do about 100-plus flips in Q4. Is the right way to think about it that the dollar value of the flips was in line with your expectations, but maybe not the actual number. And then to the point earlier, you did some of those get pushed into '24 and now there is the opportunity for a higher dollar value in '24. Just help us understand a little bit about that dynamic.

也許只是第一個。我想上個季度，您談到想要在第四季度進行 100 多次翻轉。正確的思考方式是，翻轉的美元價值符合您的預期，但可能不是實際數字。就先前的觀點而言，您在 24 年完成了其中一些工作，現在有機會在 24 年實現更高的美元價值。只是幫助我們稍微了解一下這種動態。

Yes. Well, I'd just say when we talk about the number of flips, it's just not that precise. I mean the timing, for example, the Idaho -- signing the Idaho agreement I think it was almost 3 years in the making that we had discussions with them and planning. As Lynn was talking about, it's very complex to move a statewide court system a lot of planning on their part, a lot of planning on our part and how that all goes and getting comfortable with that.

是的。好吧，我只是想說，當我們談論翻轉次數時，它並不那麼精確。我指的是時間，例如，愛達荷州——簽署愛達荷州協議，我認為我們與他們進行討論和規劃花了近三年的時間。正如林恩所說，移動全州法院系統非常複雜，他們需要進行大量規劃，我們也需要進行大量規劃，以及這一切如何進行並對此感到滿意。

So what quarter that actually gets signed in. Now not all of them are that complex, but there's not that much precision around directionally whether it's 92 or 100 or 103. So I'd say that the number was generally in line and the pace at which they're moving is in line with our expectations. The dollar value probably was a bit ahead of what we expected. So there was a little bit more larger ones in there and the uplifts were a little better than we expected.

那麼實際上是哪個季度簽到的。現在並不是所有的都那麼複雜，但是方向上沒有那麼精確，無論是 92、100 還是 103。所以我想說，數字總體上是一致的，速度是他們的搬遷符合我們的預期。美元價值可能有點超出我們的預期。所以那裡有更多更大的東西，而且提升比我們預期的要好一些。

But from -- it's really hard to be very precise from quarter-to-quarter about what we expect. But -- we are saying that we are on track with our long-term expectation that we -- the number of clients and the dollar volume that will migrate over the next several years as we drive towards that 75% to 85% of our customer base migrated to the cloud by 2030. But just like with new business signings, the exact quarter it falls in is a bit hard to predict, but we're at least in line with our expectations around flips.

但從每季到每季我們的預期都很難非常準確。但是，我們想說的是，隨著我們朝著 75% 到 85% 的客戶目標邁進，我們的客戶數量和金額將在未來幾年內遷移，我們的長期預期正步入正軌。到2030 年，基礎遷移到雲端。但就像新業務簽約一樣，確切的季度有點難以預測，但我們至少符合我們對翻轉的預期。

Got it. Helpful. And then maybe just as a follow-up. There's currently legislation out there that could reverse some of the R&D tax payments that you had to make. What would be the impact of -- if that act passed on you guys? Like what -- how much and when would you see those dollars return?

知道了。有幫助。然後也許只是作為後續行動。目前有立法可以逆轉您必須繳納的部分研發稅。如果這項法案通過了你們，會產生什麼影響？就像什麼——你會看到這些美元回來多少、什麼時候回來？

Yes, it's a little hard to tell exactly. I think the bill that's out there now that I believe is passed the house would actually not rescind it that would delay it until 2026. So the incremental taxes that we would -- if that became effective, we would not have to pay in the incremental taxes, the $50 million that we've talked about for this year and lesser numbers going forward. It's a little unclear exactly how and when we would sort of get back the taxes we paid in and incremental taxes we paid in, in 2023, which were $127 million, presumably, those would either offset our normal tax payments to reduce those tax payments over the next year or 2 or we would file for a refund, which also takes some time.

是的，確切地說有點困難。我認為現在眾議院通過的法案實際上不會廢除它，這會將其推遲到 2026 年。因此，如果生效，我們將不需要支付增量稅。稅收，我們今年討論過的5000 萬美元以及未來的更少數字。目前尚不清楚我們將如何以及何時收回我們在2023 年繳納的稅款和我們繳納的增量稅款，這些稅款為1.27 億美元，據推測，這些稅款要么會抵消我們的正常納稅額，要嘛會減少超過2023 年的稅額。明年或兩年，否則我們會申請退款，這也需要一些時間。

So it's hard to exactly quantify how that would be. But clearly, we wouldn't have those incremental payments going forward. And in some manner, we would look to recover the incremental taxes we paid in either through refunds or lower estimated payments going forward.

因此很難準確量化具體情況。但顯然，我們不會繼續進行這些增量付款。以某種方式，我們希望透過退款或降低未來的預計付款來收回我們支付的增量稅款。

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

我們的下一個問題來自北海岸研究中心的 Keith Housum。

In terms of the backlog, obviously, a nice jump this quarter year-over-year. How are we thinking about the duration of that backlog? Is it holding relatively stable? Or is that getting longer?

就積壓而言，顯然本季同比出現了不錯的成長。我們如何考慮積壓的持續時間？是否保持相對穩定？還是說越來越長了？

It's generally stable. The part that's expected to be recognized in the next 12 months, I think, is reasonably stable with where it's been. The term of new SaaS deals, for example, this quarter, I think, was very similar. It was a little under 4 years average term. So it's fairly consistent with what we've seen in recent quarters. So -- and then, of course, the transaction contracts don't really go into backlog. So they don't really affect that number. But on the software side, I'd say it's -- there aren't any meaningful changes in that duration of backlog.

整體來說是穩定的。我認為，預計在未來 12 個月內得到認可的部分與目前的情況相當穩定。例如，我認為本季新 SaaS 交易的術語非常相似。平均任期略低於4年。因此，這與我們最近幾季所看到的情況相當一致。因此，當然，交易合約並不會真正進入積壓狀態。所以它們並沒有真正影響這個數字。但在軟體方面，我想說的是，積壓的持續時間沒有任何有意義的變化。

All right. That's helpful. Just as a follow-up. There's obviously been a lot of high-profile cybersecurity issues over the past year with public agencies. Have those issues been with agencies that have been primarily on-prem versus the cloud. And if it's been on-prem, are you seeing that as perhaps one of the impetuses for the acceleration of the flips?

好的。這很有幫助。只是作為後續。在過去的一年裡，公共機構顯然出現了許多備受矚目的網路安全問題。這些問題是否存在於主要在本地部署而不是雲端部署的機構？如果是在本地，您是否認為這可能是加速翻轉的推動力之一？

Yes, absolutely. You're spot-on on both. And some of these issues have come with some -- obviously some existing clients of ours and it is an opportunity. The cloud is more stable, more secure. We actually have done some deals where clients who might have been resistant to the cloud have flipped because of some sort of recent ransomware or other issue.

是的，一點沒錯。你在這兩方面都很出色。其中一些問題是由我們的一些現有客戶帶來的，這是一個機會。雲端更穩定、更安全。實際上，我們已經完成了一些交易，其中可能對雲端有抵抗力的客戶由於最近的某種勒索軟體或其他問題而轉變。

(Operator Instructions) Our next question comes from the line of Alexei Gogolev of JPMorgan.

（操作員指令）我們的下一個問題來自摩根大通的 Alexei Gogolev。

Lynn, I recall comments from last year that roughly 20% of your customers have migrated to the cloud. Can you provide an update of that mix as you move towards that target of 75% by 2030?

Lynn，我記得去年的評論稱，您大約 20% 的客戶已遷移到雲端。當您朝著 2030 年 75% 的目標邁進時，您能否提供該組合的最新情況？

Yes. I think at Investor Day, we said we were somewhere around 15%. And so obviously, we've made progress since then. I'd say we're probably more around the 20% number now in terms of the -- that we've moved. But as I said earlier, we are -- each of our products has a time line and the road map for how they get to that point that converges on our entire customer base being 75% to 85% of the existing on-prem customers converted by 2030.

是的。我想在投資者日，我們說我們的比例約為 15%。顯然，從那時起我們已經取得了進展。我想說，就我們已經移動的數字而言，我們現在可能更接近 20%。但正如我之前所說，我們的每個產品都有一個時間表和路線圖，說明它​​們如何達到這一點，並集中在我們整個客戶群上，即75% 到85% 的現有本地客戶已完成轉換到2030年。

So each product is starting from a different place with their customer base. We've talked about public safety just getting its first flips this past year. Other products are much further along. So everybody has their own road map that converge on that overall number by 2030. And none of those will happen exactly as planned, but we have said that we are collectively on track to achieve those targets by 2030.

因此，每種產品的客戶群都是從不同的地方開始的。我們討論過公共安全在去年才剛轉變。其他產品則走得更遠。因此，每個人都有自己的路線圖，以 2030 年的總體數字為目標。這些目標都不會完全按計劃發生，但我們已經說過，我們集體預計將在 2030 年實現這些目標。

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

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

Lynn, I wanted to go back to something you said about the California contract and the fact that there will be a drag on margins but margin expansion over multiple years. Wondering if you could help explain that. Does that mean that there will be partial volume that moves to you and then full volume over time? Is that just reflective of services implementation costs in the first year that go away. And -- no, go ahead.

林恩，我想回到你所說的關於加州合約的事情，以及利潤率將受到拖累但多年來利潤率會擴張的事實。想知道你是否可以幫忙解釋一下。這是否意味著隨著時間的推移，會有部分成交量轉移到您身上，然後是全部成交量？這是否只是反映了第一年消失的服務執行成本？而且——不，繼續吧。

Yes, let me clarify that. It's a drag on margin in 2024. It will probably equate roughly to maybe a little bit of margin drag in '25, but it's just the ramp-up of revenues versus expenses. So the expenses are more front-loaded to get them up and running. As Brian mentioned, we're going from a contract that was a little under $3 million a year in revenues. I think first year, we're expecting it to just slightly more than double that. But you look out in 2025, it goes to $20 million. We expect it to grow all the way up to close to $30 million by the end of the contract. We do expect positive OP starting next year and ramping up significantly each year over time.

是的，讓我澄清一下。這會拖累 2024 年的利潤率。這可能大致相當於 25 年的一點利潤率拖累，但這只是收入與支出的成長。因此，為了讓它們啟動和運行，需要更多的前期費用。正如布萊恩所提到的，我們簽訂的合約年收入略低於 300 萬美元。我認為第一年，我們預計它會稍微增加一倍以上。但預計到 2025 年，這一數字將達到 2,000 萬美元。我們預計到合約結束時，其金額將一路增長至接近 3000 萬美元。我們確實預計積極的 OP 從明年開始，並且隨著時間的推移每年都會顯著增加。

Our final question comes from the line of David Unger of Wells Fargo.

我們的最後一個問題來自富國銀行的大衛·昂格（David Unger）。

So back to the flips again, in the topic as you wrap the call, if I would ask is how should we think about license TCV as a percentage of total TCV on a normalized quarterly run rate path to both the mid-term and long-term target.

因此，再次回到翻轉，在結束通話時的主題中，如果我要問的是，我們應該如何考慮許可證 TCV 在通往中期和長期的標準化季度運行率路徑上佔總 TCV 的百分比？期限目標。

Yes, we would expect license revenues to -- well, license revenues, which are mostly recognized upfront. So to -- we actually expect low single-digit growth this year. But in terms of the mix for them to continue to decline as part of our overall mix, I don't have that sort of broken out year by year or quarter by quarter, but we would expect that, that percentage of new business that's now in the high 80s to continue to expand incrementally year-by-year until there's very little license revenue left. We do have some third-party licenses. We have some license sales back into existing on-prem customers. But really selling very little, only a couple of products where we really sell any licenses at all in the new business market.

是的，我們預計許可收入——嗯，許可收入，大部分都是預先確認的。因此，我們實際上預計今年將出現低個位數成長。但就他們的組合而言，作為我們整體組合的一部分，它們將繼續下降，我沒有逐年或逐季地進行這種突破，但我們預計，現在新業務的百分比在80 年代中期繼續逐年遞增，直到許可證收入所剩無幾。我們確實有一些第三方許可證。我們將一些許可證銷售回現有的本地客戶。但實際上銷售量很少，只有幾種產品，我們在新業務市場上真正銷售任何許可證。

And I think part of your question was around total contract value, TCV, yes. So that will obviously vary a little bit depending on the SaaS term that we signed. You could use a rule of thumb of what a license deal and a 1-year maintenance that might drag on that versus sort of what we would project as a normal SaaS deal. So if the SaaS contract was probably only 1 or 2 years, it's probably going to have a lower TCV. If it's north of 3 years. We get to 4 years, 5 years, we'd have probably initial higher TCV.

我認為你的部分問題是圍繞合約總價值，TCV，是的。因此，根據我們簽署的 SaaS 條款，這顯然會有所不同。您可以使用經驗法則來確定許可證交易和 1 年維護可能會拖延時間，而不是我們預期的正常 SaaS 交易。因此，如果 SaaS 合約可能只有 1 或 2 年，那麼 TCV 可能會較低。如果是3年以北的話。到了 4 年、5 年，我們最初的 TCV 可能會更高。

It appear to be no further questions at this time. Mr. Lynn Moore, President and CEO of Tyler Technologies. I'll turn the call back over to you.

目前似乎沒有其他問題了。 Lynn Moore 先生，Tyler Technologies 總裁兼執行長。我會把電話轉回給你。

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

謝謝巴韋什，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。謝謝。祝你有美好的一天。

Thank you. This does conclude today's conference call. We thank you for participating. You may now disconnect.

謝謝。今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開連線。