泰勒科技 (TYL) 2024 Q1 法說會逐字稿

Hello, and welcome to today's Tyler Technologies First Quarter 2024 Conference Call. Your host for today's call is Lynn Moore, President and Chief Executive Officer of Tyler Technologies. (Operator Instructions) And as a reminder, this conference is being recorded today, April 25, 2024.

您好，歡迎參加今天的 Tyler Technologies 2024 年第一季電話會議。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 4 月 25 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, Christa, 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 update our annual guidance for 2024. Lynn will end with some additional comments, and then we'll take your questions.

謝謝您，克里斯塔，歡迎致電我們。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資訊並更新我們2024 年的年度指導。您的意見問題。

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

在這次電話會議期間，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。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。

A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. We have also posted on the Investor Relations section of our website under the Financials tab, schedules with supplemental information, including information about our quarterly recurring revenues and bookings. 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?

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，包括有關我們的季度經常性收入和預訂的資訊。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. Our first quarter results provided an exceptional start to the year, exceeding our expectations across key metrics, including revenues, earnings, operating margin and cash flow. Recurring revenues grew almost 9% and comprised 84% of our total revenues. SaaS revenues grew 22%, our 13th consecutive quarter of SaaS revenue growth of 20% or more, exceeding expectations of a 20% CAGR in SaaS revenues through 2025. In addition, transaction revenue surpassed our plan with higher volumes and positive pricing trends.

謝謝，哈拉。我們第一季的業績為今年提供了一個出色的開局，在收入、盈利、營業利潤率和現金流等關鍵指標上超出了我們的預期。經常性收入成長了近 9%，占我們總收入的 84%。 SaaS 營收成長了22%，這是我們連續第13 個季度SaaS 營收成長20% 或以上，超出了2025 年SaaS 營收複合年增長率20% 的預期。的定價趨勢超出了我們的計劃。

Our performance demonstrates the power of our business model against the backdrop of robust public sector demand, supported by generally healthy budgets. Our leading sales activity indicators remain elevated, and our pipeline reflects growing sales synergies as we execute our integrated go-to-market strategy.

在公共部門需求強勁、預算普遍健康的背景下，我們的業績證明了我們商業模式的力量。我們的領先銷售活動指標仍然很高，隨著我們執行全面上市策略，我們的管道反映了不斷增長的銷售協同效應。

During our Investor Day last year, we announced our Tyler 2030 Vision, which aligns our strategic focus on 4 key growth drivers: leveraging our installed base, expanding into new markets, completing our cloud transition, and growing our payments business.

在去年的投資者日期間，我們宣布了Tyler 2030 願景，該願景將我們的策略重點集中在4 個關鍵成長驅動力上：利用我們的客戶群、拓展新市場、完成雲端轉型以及發展我們的支付業務。

Leveraging our unmatched installed base has been a cornerstone of our growth strategy, and we're pleased with the outstanding execution by our sales organization, driving impactful cross-sell and upsell activity that further deepens existing client relationships and expands our market reach with new client engagements. Notable cross-sell and upsell wins during the quarter included a records management and ERP pro contract, including payments with Ada County, Idaho, leveraging our state enterprise relationship. And on-premises contract, for our full enterprise Public Safety suite with the City of Columbus, Georgia, adding to its existing Tyler courts, corrections, ERP, tax and permitting solutions.

利用我們無與倫比的安裝基礎一直是我們成長策略的基石，我們對銷售組織的出色執行力感到滿意，推動了有影響力的交叉銷售和追加銷售活動，進一步加深了現有客戶關係並擴大了新客戶的市場覆蓋範圍訂婚。本季度顯著的交叉銷售和追加銷售勝利包括記錄管理和 ERP 專業合同，包括利用我們的國有企業關係與愛達荷州艾達縣付款。以及我們與喬治亞州哥倫布市簽訂的完整企業公共安全套件的本地合同，增加了現有的泰勒法院、懲戒、ERP、稅務和許可解決方案。

An enterprise ERP win with the Texas Legislative Council facilitated by our existing Digital Solutions division relationship in Texas, which avoided an RFP process to secure a new enterprise ERP client in a nontraditional market. A combined SaaS contract with the city of Juneau, Alaska, for enterprise assessment and tax and enterprise permitting and licensing solutions. By prioritizing the cloud as one of our key growth drivers, we are unlocking new levels of innovation and responsiveness in making the cloud accessible for our clients, while providing enhanced security. Our new software SaaS mix continue to expand and comprised 93% of Q1 new software contract value.

我們在德州現有的數位解決方案部門關係推動了企業 ERP 贏得德州立法委員會，避免了 RFP 流程，從而在非傳統市場中獲得了新的企業 ERP 客戶。與阿拉斯加朱諾市簽訂聯合 SaaS 合同，提供企業評估、稅務以及企業許可和許可解決方案。透過將雲端優先視為我們的關鍵成長驅動力之一，我們正在將創新和回應能力提升到新的水平，使客戶可以存取雲，同時提供增強的安全性。我們的新軟體 SaaS 組合持續擴大，佔第一季新軟體合約價值的 93%。

We're particularly encouraged to see a growing preference for cloud technology in the state and federal market with our application platform and an accelerated shift in Public Safety cloud demand with multiple client-driven SaaS selections. In fact, 75% of our first quarter enterprise Public Safety deals were SaaS. Because the pace of the shift to SaaS in these markets this year is faster than we previously anticipated, we have lowered our expectations for license revenues for the year. And across Tyler, the volume of flip signed in the first quarter was in line with our expectations, with a 21.5% increase in average ARR.

我們特別高興地看到，透過我們的應用程式平台，州和聯邦市場對雲端技術的偏好日益增長，並且透過多種客戶端驅動的 SaaS 選擇，公共安全雲端需求加速轉變。事實上，我們第一季的企業公共安全交易中有 75% 是 SaaS。由於今年這些市場向 SaaS 轉變的步伐比我們之前的預期要快，因此我們降低了對今年授權收入的預期。而就 Tyler 而言，第一季的翻轉簽約量符合我們的預期，平均 ARR 成長了 21.5%。

Key first quarter new SaaS deals and flips included multiyear SaaS arrangements with the Hawaii Department of Natural Resources and land between the Lakes National Recreation area that build on our momentum in the outdoor recreation space. Competitive SaaS wins for Public Safety included a full enterprise Public Safety suite contract with Palm Beach, Florida, which was focused on a cloud-only strategy. We also won a sole-source enterprise Public Safety contract with the city of Evanston, Illinois, which expands our growing footprint in the Chicagoland area. An enterprise appraisal in tax for Fulton County, Georgia, which includes Atlanta. The contracts with ARR of more than $1 million was executed on accelerated timeline with a go-live completed within 1 month. Two Public Safety SaaS flips with Beringham, Alabama and Germantown, Tennessee, both of which were client-driven SaaS selections and accelerated go-lives. The Kansas judicial branch signed an enterprise justice appellate court SaaS flip as we continue to see a growing interest in moving to the cloud from our on-premises courts clients.

第一季的關鍵新 SaaS 交易和翻轉包括與夏威夷自然資源部的多年 SaaS 安排以及湖國家遊樂區之間的土地，這些協議增強了我們在戶外遊樂空間領域的發展勢頭。公共安全領域 SaaS 的競爭優勢包括與佛羅裡達州棕櫚灘簽訂的完整企業公共安全套件合同，該合約專注於純雲戰略。我們還贏得了與伊利諾伊州埃文斯頓市的獨家企業公共安全合同，這擴大了我們在芝加哥地區不斷增長的足跡。喬治亞州富爾頓縣（包括亞特蘭大）的企業稅收評估。 ARR 超過 100 萬美元的合約均按加速執行，並在 1 個月內完成上線。阿拉巴馬州貝靈厄姆和田納西州日耳曼敦的兩次公共安全 SaaS 翻轉，都是客戶驅動的 SaaS 選擇並加速上線。堪薩斯州司法部門簽署了一項企業司法上訴法院 SaaS 翻轉協議，因為我們不斷看到我們的本地法院客戶對遷移到雲端的興趣日益濃厚。

Another key driver of our long-term growth is our transactions and payments business. As I mentioned earlier, better-than-expected transaction volumes contributed to first quarter revenues that exceeded our expectations. In the first quarter, we signed 288 new payments deals across Tyler, representing approximately $9 million in projected ARR. In our state enterprise portal business, we signed a new 3-year enterprise contract with the State of Mississippi, extending our existing 14-year relationship. Our enterprise agreement with the State of Idaho was also renewed for 2 years in a rebid through the NASPO Citizen Engagement agreement.

我們長期成長的另一個關鍵驅動力是我們的交易和支付業務。正如我之前提到的，好於預期的交易量導致第一季收入超出了我們的預期。第一季度，我們在泰勒簽署了 288 項新支付協議，預計 ARR 約為 900 萬美元。在我們的州企業門戶業務方面，我們與密西西比州簽署了一份新的為期 3 年的企業合同，延長了我們現有的 14 年的合作關係。我們與愛達荷州的企業協議也透過 NASPO 公民參與協議在重新競標中續約了 2 年。

We're also very pleased to see early traction and growing demand for the solutions we added to our portfolio through our 2023 acquisitions of CSI, ARInspect and RexourceX, each of which brought us expanded AI capabilities. With CSI, we signed a contract with our existing course client in Dallas County, Texas, adding approximately $900,000 of ARR. We've seen demo activity double over pre-acquisition levels for our augmented field operation solution, formerly ARInspect, with first quarter wins that included the city of Newark manhole inspections and an expansion contract with the New Jersey Department of Environmental Protection.

我們也非常高興地看到，透過2023 年收購CSI、ARInspect 和RexourceX，我們添加到我們產品組合中的解決方案得到了早期關注和不斷增長的需求，每項收購都為我們帶來了擴展的AI 能力。透過 CSI，我們與德州達拉斯縣的現有課程客戶簽訂了合同，增加了約 90 萬美元的 ARR。我們看到我們的增強型現場操作解決方案（以前稱為ARInspect）的演示活動比收購前的水平翻了一番，第一季的勝利包括紐瓦克市的沙井檢查以及與新澤西州環境保護部的擴展合約。

For our priority-based budgeting solution powered by RexourceX, we signed contracts with Collier County, Florida and Fort Worth, Texas that added almost $600,000 of ARR.

對於由 RexourceX 支援的基於優先順序的預算解決方案，我們與佛羅裡達州科利爾縣和德克薩斯州沃思堡簽署了合同，增加了近 60 萬美元的 ARR。

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

現在，我希望 Brian 提供有關本季度業績以及我們更新的 2024 年年度指引的更多詳細資訊。

Lynn, total revenues for the quarter were $512.4 million, up 8.6% and organically grew to 7.8%. Subscriptions revenue increased 11.7% and organically rose 11.4%. Within subscriptions, our SaaS revenues grew 22% to $148.8 million and grew organically 21.3%. 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 one 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.

Lynn 表示，本季總營收為 5.124 億美元，成長 8.6%，有機成長至 7.8%。訂閱收入成長 11.7%，有機成長 11.4%。在訂閱方面，我們的 SaaS 營收成長了 22%，達到 1.488 億美元，有機成長了 21.3%。請記住，從簽署新的 SaaS 協議或翻轉到開始確認收入，通常會存在一個延遲，可能會延遲一個季度到幾個季度。因此，以及 SaaS 續約的時間和相關價格上漲，SaaS 營收的年成長和季增可能會出現季度波動。

Transaction revenues grew 3.7% to $164.5 million. While transaction revenues exceeded our plan, primarily due to higher transaction volumes from new and existing clients, including driver history records, the year-over-year comparison continues to be impacted by the change last year from the gross model to the net model for payments under one of our state enterprise agreement. SaaS deals comprised approximately 93% of our Q1 new software contract value compared to 87% last year.

交易收入成長 3.7%，達到 1.645 億美元。雖然交易收入超出了我們的計劃，主要是由於新客戶和現有客戶的交易量增加（包括駕駛員歷史記錄），但同比比較繼續受到去年從總支付模式到淨支付模式的變化的影響根據我們的一項國有企業協議。 SaaS 交易約占我們第一季新軟體合約價值的 93%，而去年為 87%。

During the quarter, we added 200 new SaaS arrangements and converted 90 existing on-premises SaaS clients -- on-premises clients to SaaS with a total contract value of approximately $86 million. In Q1 of last year, we added 145 new SaaS arrangements and had 73 on-premises conversions with a total contract value of approximately $86 million. More importantly, the average ARR associated with our Q1 flips increased 21.5% over last year. Including transaction revenues, expansions with existing clients and professional services, total bookings increased 15.7% on an organic basis.

在本季度，我們增加了 200 個新的 SaaS 安排，並將 90 個現有的本地 SaaS 客戶（本地客戶）轉換為 SaaS，合約總價值約為 8600 萬美元。去年第一季度，我們增加了 145 個新的 SaaS 安排，並進行了 73 個本地轉換，合約總價值約為 8600 萬美元。更重要的是，與第一季翻轉相關的平均 ARR 比去年增加了 21.5%。包括交易收入、現有客戶拓展和專業服務在內，總預訂量有機成長了 15.7%。

Our total annualized recurring revenue was approximately $1.72 billion, up 8.8% and organically grew 8.2%. In previous quarters, we discussed our expectation that 2023 would be the operating margin trough from our cloud transition and that 2024 would mark a return to operating margin expansion. Our non-GAAP operating margin in the first quarter was 23.8%, up 210 basis points from last year. The margin expansion reflects improved margins for our cloud operations along with effective operating expense management. As we discussed on previous calls, 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 $42 million in Q1.

我們的年化經常性收入總額約為 17.2 億美元，成長 8.8%，有機成長 8.2%。在前幾季中，我們討論了我們的預期，即 2023 年將是我們雲端轉型後營業利潤率的低谷，而 2024 年將標誌著營業利潤率擴張的回歸。我們第一季的非 GAAP 營業利潤率為 23.8%，比去年增長 210 個基點。利潤率的擴張反映了我們雲端業務利潤率的提高以及有效的營運費用管理。正如我們在先前的電話會議中所討論的那樣，在總收入模式下，我們的支付業務產生的商家和交換費對我們的整體利潤產生了重大影響，因為它們會傳遞給客戶，並包含在收入和收入成本中。第一季我們支付了約 4,200 萬美元的商家費用。

Both cash flows from operations and free cash flow were above expectations for the quarter at $71.8 million and $57.2 million, respectively, which allowed us to repay the remaining $50 million of term debt outstanding from the NIC acquisition earlier in the year than planned. We ended the quarter with $600 million of convertible debt outstanding and cash and investments of approximately $202 million. Our net leverage at quarter end was approximately 0.79x trailing 12-month pro forma EBITDA with our only remaining debt of $600 million convertible due in 2026.

本季營運現金流和自由現金流分別高於預期，分別為 7,180 萬美元和 5,720 萬美元，這使我們能夠比計劃提前償還 NIC 收購中剩餘的 5,000 萬美元未償定期債務。本季末，我們的未償可轉換債務為 6 億美元，現金和投資約為 2.02 億美元。我們季末的淨槓桿率約為過去 12 個月預計 EBITDA 的 0.79 倍，我們唯一剩餘的 6 億美元可轉換債務將於 2026 年到期。

Our updated 2024 annual guidance is as follows. We expect total revenues will be between $2.110 billion and $2.140 billion. The midpoint of our guidance implies organic growth of approximately 8.5%. We now expect that merchant fees will be up slightly over last year and that implied organic growth, excluding merchant fees, would be approximately 50 basis points higher. We expect GAAP diluted EPS will be between $5.27 and $5.47 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 $9.10 and $9.30. We expect to see sequential growth in earnings throughout the year with both revenues and EPS slightly weighted towards the second half. We expect our free cash flow margin will be between 17% and 19%, including the estimated impact of approximately $58 million of incremental cash taxes related to Section 174. Other details of our guidance are included in our earnings release and in the Q1 earnings deck posted on our website.

我們更新的 2024 年年度指導如下。我們預計總收入將在 21.1 億美元至 21.4 億美元之間。我們指導的中點意味著有機成長約為 8.5%。我們現在預計商家費用將比去年略有上升，這意味著有機成長（不包括商家費用）將高出約 50 個基點。我們預計 GAAP 攤薄後每股收益將在 5.27 美元至 5.47 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 9.10 美元至 9.30 美元之間。我們預計全年獲利將連續成長，下半年營收和每股盈餘均略有上升。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 條相關的約5800 萬美元增量現金稅的估計影響。發布和第一季財報中發佈在我們的網站上。

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. Our performance in the quarter demonstrates strong execution by team members across Tyler in key strategic areas, anchored to our Tyler 2030 Vision. We are starting to see the expected benefits of our cloud transition through progress with version consolidation, cloud optimization of products, cost efficiencies and improved agility as we empower our clients who serve the public through Tyler's next-generation cloud applications.

謝謝，布萊恩。我們本季的表現證明了泰勒團隊成員在關鍵策略領域的強大執行力，這一切都以我們的泰勒 2030 願景為基礎。當我們透過Tyler 的下一代雲端應用程式為公眾服務的客戶提供支援時，我們開始看到透過版本整合、產品雲優化、成本效率和提高敏捷性方面的進展，我們的雲端轉型帶來的預期好處。

Our strong first quarter results and positive outlook for the remainder of the year are reflected in our revised annual guidance. Even with lower expectations for license revenues because of the accelerated shift to SaaS with our Public Safety and application platform solutions, we've raised our revenue guidance while also increasing our earnings outlook.

我們強勁的第一季業績和今年剩餘時間的正面前景反映在我們修訂後的年度指引中。儘管由於我們的公共安全和應用程式平台解決方案加速轉向 SaaS，對許可證收入的預期較低，但我們還是提高了收入指引，同時也提高了獲利前景。

We recently published our 2023 corporate responsibility report, our fifth annual sustainability disclosure covering our environmental, social and governance activities. Our sustainability initiatives in 2023 included investments in data management, validation and processes to drive reporting efficiencies. We also undertook a double materiality assessment to understand key insights for multiple constituents on both financial materiality and impact materiality. We hope you take the time to review our report, which is available on our website.

我們最近發布了 2023 年企業責任報告，這是我們第五次年度永續發展揭露，涵蓋我們的環境、社會和治理活動。我們 2023 年的永續發展計畫包括對資料管理、驗證和流程的投資，以提高報告效率。我們也進行了雙重重要性評估，以了解多個成分對財務重要性和影響重要性的關鍵見解。我們希望您花時間查看我們的報告，該報告可在我們的網站上找到。

Finally, we're excited about Tyler Connect 2024, which will take place May 19 to 22 in Indianapolis. Nearly 5,000 Tyler clients and 900 Tyler team members will come together for training, collaboration and networking, and we're looking forward to inspiring our clients with the latest innovations from Tyler.

最後，我們對 Tyler Connect 2024 大會感到非常興奮，大會將於 5 月 19 日至 22 日在印第安納波利斯舉行。近 5,000 名 Tyler 客戶和 900 名 Tyler 團隊成員將齊聚一堂進行培訓、協作和交流，我們期待用 Tyler 的最新創新來激勵我們的客戶。

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

現在我們想開通問答熱線。

(Operator Instructions) And your first question comes from Rob Oliver from Baird.

（操作員說明）您的第一個問題來自 Baird 的 Rob Oliver。

Lynn, mine is for you. You mentioned in the outset of your prepared remarks, kind of your growth focus areas, but you talked about the kind of growing sales synergies and the integrated go-to-market strategy that you guys laid out in more detail last year. And I know this has been a big push of your since you assumed the CEO role. Could you give us a little bit of color on kind of what if some of those growing sales synergies are? Where you're excited about the progress you've had so far? What some of the levers you're pulling are? And what are some areas you still need to improve on? I appreciate it.

林恩，我的就是給你的。您在準備好的演講一開始就提到了您的成長重點領域，但您也談到了去年更詳細地制定的不斷增長的銷售協同效應和綜合進入市場策略。我知道自從您擔任執行長以來，這一直是您的巨大推動力。您能否給我們一些關於如果其中一些不斷增長的銷售協同效應會怎樣的信息？您對迄今為止所取得的進展感到興奮的地方是什麼？你拉動的槓桿是什麼？還有哪些方面您還需要改進？我很感激。

Yes. Sure, Rob. It's a good question. Last year, we elevated a couple of people to oversee all of our public admin sales, all of our justice sales. They're working more closely together than ever before. We've done things around aligning some incentive comp plans and changing the way people are comped to make sure that, for example, it's -- in the old days, it's well -- whose P&L is this recognized by. And we wanted to break down some of those barriers so that really, when -- it's all about Tyler, when Tyler wins, everybody wins. And so we've been doing things like that. We've done some things, and we're still in the process of -- and some of that's still work-in-progress.

是的。當然，羅布。這是一個好問題。去年，我們提拔了幾個人來監督我們所有的公共行政銷售、所有的司法銷售。他們的合作比以往任何時候都更加緊密。我們已經做了一些事情，調整了一些激勵補償計劃，並改變了人們的補償方式，以確保，例如，在過去，這是很好的——誰的損益得到了認可。我們想要打破其中一些障礙，這樣，當泰勒獲勝時，所有人都會獲勝。所以我們一直在做類似的事情。我們已經做了一些事情，而且仍在進行中——其中一些仍在進行中。

I mean when I say that we started these initiatives, they're not by any means finished, but these are things that are work-in-progress. We're doing things around our PSD and DSD divisions, our application platform and formerly NIC, we see a lot of synergies there. So we're doing things right now to start to bring some of those divisions closer together so that they can work more closely with sales and operating efficiencies. We believe the application platform is tailor-made for state government. And so just a number of initiatives like that. It's -- there's a lot going on. And I think we're going to continue to see improvement as we look out forward.

我的意思是，當我說我們開始這些舉措時，它們無論如何都還沒有完成，但這些都是正在進行中的事情。我們正在圍繞我們的 PSD 和 DSD 部門、我們的應用程式平台和以前的 NIC 開展工作，我們看到了很多協同效應。因此，我們現在正在採取措施，開始將其中一些部門更加緊密地聯繫在一起，以便它們能夠更緊密地合作，提高銷售和營運效率。我們相信該應用程式平台是為州政府量身定制的。諸如此類的措施還有很多。發生了很多事情。我認為，展望未來，我們將繼續看到進步。

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。

Lynn, the numbers are pretty straightforward. So maybe I'll ask just a little bit of a higher level question. It sounds like just the spending backdrop in state and local governments continues to sound healthy. But just to make sure the question is asked, can you talk about, Lynn, what you've seen historically from those customers in presidential election years? I mean I imagine that those 2 things aren't terribly related. But again, I just want to ask -- I want to make sure that question is asked as we kind of get deeper into election season.

林恩，這些數字非常簡單。所以也許我會問一些更高層次的問題。聽起來州和地方政府的支出背景仍然很健康。但為了確保問題得到解答，林恩，您能否談談您在總統選舉年從這些客戶身上看到的情況？我的意思是，我認為這兩件事並沒有太大關係。但我還是想問——我想確保在我們深入選舉季節時提出這個問題。

Yes, I don't know that historically, there's been much of a correlation between our sales and the presidential election year more so than what may be going on in the broader macroeconomic environment. As you note, the budgets for our clients are healthy and strong. Our sales outlook for the year, and we have some pretty aggressive sales plans, but our sales outlook for the year are looking on plan and significant parts of our business actually, may be ahead of plan. Maybe a little bit in the federal space. I don't know that I've got enough experience yet with our federal space as to what impact that may have. But it's normally more so around what's going on with the federal funding and budgets. But I think generally, in our -- if you look at our traditional local and state space, I haven't seen a lot of change in my 25 years plus.

是的，我不知道從歷史上看，我們的銷售與總統選舉年之間的相關性比更廣泛的宏觀經濟環境中可能發生的相關性更大。正如您所注意到的，我們客戶的預算健康而強勁。我們今年的銷售前景，我們有一些相當積極的銷售計劃，但我們今年的銷售前景正在按計劃進行，實際上我們業務的重要部分可能會提前。也許在聯邦領域有一點。我不知道我對我們的聯邦空間是否有足夠的經驗來了解這可能會產生什麼影響。但通常更多的是圍繞聯邦資金和預算的情況。但我認為，總的來說，如果你看看我們傳統的地方和州空間，我在 25 年多的時間裡並沒有看到太多變化。

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

您的下一個問題來自 BTIG 的 Matt VanVliet。

I said you continue to see a higher and higher mix of business going to set contracts and I believe even see an acceleration to a certain extent on the flips side (inaudible) Public Safety or maybe holding you back (inaudible) the case for or, I guess, impetus to try to push forward on more flips, maybe encouraged customers at a little bit more of an accelerated pace to move over and just try to get this done with sort of as quickly as possible? Or any changing in your thinking there of the motivation of customers?

我說你會繼續看到越來越多的業務組合簽訂合同，我相信甚至會在反面（聽不清）公共安全方面看到一定程度的加速，或者可能會阻礙你（聽不清）案件或，我想，嘗試推動更多翻轉的動力，也許會鼓勵客戶以更快的速度移動並嘗試盡快完成這件事？或者您對客戶動機的看法有改變嗎？

And you're kind of cutting out, I think I got most of your question, Matt. I'll start. Brian, you can certainly jump in. At Public Safety, I think it's a couple of things. I think actually, as you step back and you go back to 2019, when we sort of announced that we were going to go cloud-first from cloud agnostic, some of the message was we were going -- at least internally was we were going to take our leadership position and start leading the market to where we thought it was going to go and needed to go. In Public Safety, as you know, historically, it's been a little bit slower. We've spent a couple of years. We've got some new leadership Public Safety. Our position in Public Safety is we're very competitive. It's a competitive space, but we're in a very competitive space and a place, excuse me.

你有點被打斷了，我想我已經回答了你的大部分問題，馬特。我開始吧。布萊恩，你當然可以加入。我認為實際上，當你退後一步，回到 2019 年時，當我們宣布我們將從雲不可知論轉向雲優先時，一些信息是我們要這麼做——至少在內部是我們要這麼做佔據我們的領導地位，並開始引領市場走向我們認為將要發展和需要發展的方向。如您所知，在公共安全領域，從歷史上看，速度有點慢。我們已經花了幾年時間。我們有一些新的公共安全領導階層。我們在公共安全領域的地位非常有競爭力。這是一個競爭激烈的領域，但我們處於一個競爭非常激烈的領域和地方，請原諒。

And really starting this year and started more so third quarter, fourth quarter last year, we've taken the approach that we are going to start leading with SaaS with Public Safety. And so that's resonating. We talked about the Palm Beach, Florida contract. That was a deal where they were only looking for a SaaS arrangement. As we look out this year, we're going to continue to do things to push things quicker to SaaS. At the end of the day, it's still the customer's choice. There's a lot of selling things around that. You look at our Public Safety, I think our plan for the year was to do about 50% on-prem licenses, give or take, which was up significantly from last year. And what we're seeing right now, I think we reported 75% in Q1.

實際上從今年開始，尤其是去年第三、第四季開始，我們採取了我們將開始以公共安全 SaaS 為主導的方法。這引起了共鳴。我們討論了佛羅裡達州棕櫚灘的合約。在這筆交易中，他們只是尋求 SaaS 安排。展望今年，我們將繼續採取措施，更快地將事情推向 SaaS。歸根結底，這仍然是客戶的選擇。周圍有很多賣東西的。你看看我們的公共安全，我認為我們今年的計劃是發放約 50% 的本地許可證，這比去年顯著增加。我們現在所看到的，我認為我們在第一季報告了 75%。

As it relates to flips, there's a lot of selling messages generally around flips and where all our sales folks are armed with those. I think one thing that you're also starting to see, and we've talked about it before on earnings calls is the continued rise of cybersecurity and ransomware attacks are also sort of triggering clients to want to push to SaaS faster. And the more that they see that out in their community, which aren't always publicized, I think that's also sort of starting to grease the wheels a little bit to make that decision to move to SaaS.

由於與翻蓋有關，因此通常有很多圍繞翻蓋的銷售信息，並且我們所有的銷售人員都配備了這些信息。我認為您也開始看到一件事，我們之前在財報電話會議上已經討論過，那就是網路安全的持續成長和勒索軟體攻擊也在某種程度上觸發客戶想要更快地轉向 SaaS。他們在社區中看到的這一點（這些社區並不總是公開的）越多，我認為這也開始為他們做出轉向 SaaS 的決定做好準備。

I guess, the only thing I'd add to that is, in terms of our ability to significantly increase, the pace of flips beyond the sales efforts that Lynn talked about. We have talked about in the past the need for clients who aren't on the current version of our products generally to upgrade to that version either before or when they look to the cloud as we drive towards having one version of each product in the cloud. And we've made a lot of progress with version consolidation and sunsetting old versions and moving clients along, but that continues to be a gating factor in the pace of flips.

我想，我唯一要補充的是，就我們顯著提高的能力而言，翻轉的步伐超出了林恩談到的銷售努力。我們過去曾討論過，對於未使用我們產品當前版本的客戶，通常需要在他們尋求雲端之前或當他們尋求雲端時升級到該版本，因為我們致力於在雲端中擁有每個產品的一個版本。我們在版本整合、廢棄舊版本和推動客戶方面取得了很大進展，但這仍然是翻轉速度的一個控制因素。

And so as we continue to make progress with that, it opens up more opportunities from clients being in a position to flip. But as we've talked about, especially as we move into the larger flips, they're complicated processes from a planning perspective. And so the timing leading up to the flip from the time we start engaging with clients, sometimes can be kind of lengthy. So we're certainly pushing it as fast as possible. We've talked about a road map that varies by product, but across all of our products, converges on us being at 80%, 85% of our on-prem customer base having moved to the cloud by 2030, and all of our business units have road maps that are aligned with that goal.

因此，隨著我們在這方面不斷取得進展，它為有能力翻轉的客戶提供了更多機會。但正如我們所討論的，特別是當我們進入更大的翻轉時，從規劃的角度來看，它們是複雜的過程。因此，從我們開始與客戶接觸到轉變的時間有時可能會很長。所以我們肯定會盡快推動它。我們討論了一個因產品而異的路線圖，但在我們所有的產品中，我們的目標是到 2030 年 80%、85% 的本地客戶群已遷移到雲端，並且我們的所有業務各單位都有與該目標一致的路線圖。

Your next question comes from the line of Ken Wong from Oppenheimer.

你的下一個問題來自奧本海默的 Ken Wong。

This one for you, Lynn. When we look at the number of subscription contracts, it looks like it took a really big step up this quarter. I think you touched on some of the highlights. Just wondering if that's more of a kind of a lumpy volatile seasonality type of a situation we're seeing there from the jump up to 200? Or do you think that, that is perhaps a closer reflection of the run rate we can expect going forward?

這是給你的，林恩。當我們查看訂閱合約的數量時，看起來本季確實有了很大的進步。我認為您談到了一些亮點。只是想知道這是否更像是我們所看到的從跳躍到 200 的一種不穩定的季節性情況？或者您認為這可能更接近反映了我們未來預期的運行率？

It's probably a little bit of both. I think one -- obviously, with 200 new deals are going to vary in size and scope. But if you step back generally, when I think about 200 new contracts a year -- a quarter, that plays out to over 800 a year. That's a lot of business we're doing, and that's a lot of business we're executing on. It's great work by our sales teams. It's great work by our ProServe teams to then turn that into revenue. But I think it's -- I don't know that that's the new -- it's certainly higher than it was coming out of Q4 last year and most of last year. I think last year, we did about 750 new deals, give or take for the year. So we're on pace a little better. But as I said, right now, markets are healthy, budgets are strong. Our sales outlook, all indicators are positive and our sales outlook looks good for the year.

可能兩者都有一點。我認為，顯然，200 筆新交易的規模和範圍都會有所不同。但如果你退後一步，當我想到每年（一個季度）200 份新合約時，每年就會超過 800 份。這是我們正在做的很多業務，也是我們正在執行的許多業務。這是我們銷售團隊的出色工作。我們的 ProServe 團隊將其轉化為收入，這是一項偉大的工作。但我認為——我不知道這是新的——它肯定高於去年第四季和去年大部分時間的水平。我想去年我們達成了約 750 筆新交易，無論是多少。所以我們的節奏好一點了。但正如我所說，目前市場健康，預算強勁。我們的銷售前景，所有指標都是正面的，我們今年的銷售前景看起來很好。

Your next question comes from the line of Alexei Gogolev of JPMorgan.

你的下一個問題來自摩根大通的阿列克謝‧戈戈列夫。

Considering the elevated level of demand that Lynn, you just referred to, has your win rate remained relatively consistent at around 50%? And if it has, it feels like you should be taking more market share. Do you feel that you could show acceleration of organic revenue growth in the near term?

考慮到您剛才提到的 Lynn 的需求水準較高，您的勝率是否相對穩定地維持在 50% 左右？如果是的話，感覺你應該佔據更多的市場。您認為短期內有機收入成長是否會加速？

Yes. Thanks, Alexei. I'd say, generally, our win rates across the board are consistent. And when you say 50%, that's -- you got to look by each sort of major products. So there's certainly some areas where our win rates are 80%, 85%, some that are more competitive spaces, we talk about Public Safety, we talk about sort of the mid- to higher ERP space where there's -- it's a lot more competitive market, and they may sort of be around there. So those really haven't changed. There's still -- we still have some of the same lag factors that we talked about before between time of getting a deal to contract to getting them up and running. But yes, I mean, we -- as we look out, we've -- our overall revenue growth sort of slowed over the last 2 years, and I think we've said we expect that to pick back up, and we're starting to see some of that.

是的。謝謝，阿列克謝。我想說的是，總的來說，我們的勝率是一致的。當你說 50% 時，那就是——你必須按每種主要產品來看待。因此，肯定有一些領域我們的勝率是 80%、85%，有些領域競爭更激烈，我們談論公共安全，我們談論中高級 ERP 領域，那裡的競爭要激烈得多。所以這些確實沒有改變。在簽訂合約到啟動並運行之間，我們仍然存在一些與我們之前討論過的相同的滯後因素。但是，是的，我的意思是，我們 - 正如我們所看到的，我們 - 我們的整體收入增長在過去兩年中有所放緩，我認為我們已經說過我們預計會回升，而且我們'我開始看到其中的一些。

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

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

So we're hearing some of your venture-backed start-up competitors in Public Safety, specifically records management are having challenges getting customers live. Are you using this as an opportunity to go back to these customers and highlight the Tyler value proposition? And then just more broadly, how often have you seen this across other product lines where some of the venture-backed start-ups are making promises about getting customers live on timelines that they are unable to execute on?

因此，我們聽說公共安全領域（特別是記錄管理領域）的一些創投支持的新創競爭對手在吸引客戶方面面臨著挑戰​​。您是否以此為契機，再次接觸這些客戶並強調泰勒的價值主張？更廣泛地說，您在其他產品線上是否經常看到這種情況，其中一些由風險投資支援的新創公司承諾讓客戶按他們無法執行的時間表交付？

Yes, Joshua, that's a good question. And it's something we've seen, I'd say, really, over the 25-plus years I've been at Tyler. There's always seems to be little periods where someone comes up, makes little splash, they have a little spotlight on them. They certainly have a demo that looks good. They wouldn't have the depth of functionality and products that we've had because they haven't been in the space for as long as we have, but they win some business, but that's only part of the battle. We've always said part of Tyler secrets sauce is not just winning the business, but executing on the business. And it's hard stuff. Take, for example, our municipal and schools division, which really sells more on the low end of ERP and has some courts and things like that.

是的，約書亞，這是一個很好的問題。我想說，在 Tyler 工作的 25 多年裡，這確實是我們親眼所見的事情。似乎總是有一些小時期有人出現，引起很少的轟動，他們受到一點聚光燈的關注。他們當然有一個看起來不錯的演示。他們不會擁有我們所擁有的功能和產品的深度，因為他們進入這個領域的時間沒有我們長，但他們贏得了一些業務，但這只是戰鬥的一部分。我們總是說，泰勒的秘訣不僅在於贏得業務，還在於執行業務。這是很難的事。以我們的市政和學校部門為例，該部門確實在 ERP 低階產品上銷售更多，並且有一些法院和類似的東西。

They did, I think, last year -- I mean last quarter, they did 207 go-lives in 1 quarter. Now obviously, that's a -- those are small deals, but that's a lot of business. And that's the hard part. And people, I think, from the outside, generally sort of look at Tyler's results and say, boy, this is an easy business. This business is something we ought to invest in and get into. And what we found, not just with venture-backed, but some PE money that's come in, is they didn't really understand the market, and it's a lot more difficult than it may look at times from the outside. And it's a testament to all our hardworking people at Tyler, it's testament to our culture, it's a testament how we view our relationships with our clients. So no, it's -- I appreciate you bringing that up because it's not something we spend a lot of time talking about. But it's -- you're only successful as your last implementation in this business and all our clients talk. So when you fail, everybody knows.

我認為他們去年就這麼做了——我是說上個季度，他們在 1 季度內上線了 207 個項目。顯然，這些都是小交易，但卻是一筆大生意。這就是最困難的部分。我認為，從外部來看，人們通常會在看到泰勒的結果後說，天哪，這是一件容易的事。這個產業是我們應該投資和進入的。我們發現，不僅是創投支持的資金，還有一些私募股權投資的資金，他們並沒有真正了解市場，而且這比從外部看起來要困難得多。這證明了泰勒所有辛勤工作的員工，證明了我們的文化，證明了我們如何看待與客戶的關係。所以不，我很感謝你提出這個問題，因為這不是我們花很多時間討論的事情。但它是——只有當你在這個行業的最後一次實施和我們所有的客戶都談論時，你才算成功。所以當你失敗的時候，每個人都知道。

Your next question comes from Clarke Jeffries from Piper Sandler.

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

Brian, very encouraging to see operating margins up substantially, and operating income dollars up 19% year-over-year. You talked about improved cloud operations as a driver of that. Does that mean that some of the capacity in the private cloud is already being reduced? And you're taking up EPS today, but could you talk a little bit about the expectations for full year, how operating margins pan out for the rest of the year?

Brian，看到營業利益率大幅上升，營業收入較去年同期成長 19%，非常令人鼓舞。您談到了雲端運營的改進是其驅動因素。這是否意味著私有雲中的部分容量已經在減少？您今天討論的是每股盈餘，但您能談談對全年的預期嗎？

Yes. It's not so much of the capacity. We do continue to move clients to AWS, and we are on track with our plans to evacuate our first data center midyear of this year. But really, that -- a lot of those costs don't go out until after that data center is closed. So that's not really the biggest factor. Some of the things driving those improved cloud efficiencies are the releases we've had over recent quarters of the cloud optimized versions of our product, which improves the efficiencies and lowers our hosting costs at AWS. The progress we've made with version consolidation, and we made significant progress last year and continue to have aggressive plans this year about sunsetting older versions of products and getting the benefits from both support costs and development costs around the expenses associated with supporting multiple versions of multiple products.

是的。容量沒那麼大吧我們確實繼續將客戶轉移到 AWS，並且我們正在按計劃在今年年中撤離我們的第一個資料中心。但實際上，很多成本直到資料中心關閉後才會消失。所以這並不是最大的因素。推動雲端效率提高的一些因素是我們最近幾季發布的產品的雲端優化版本，這提高了效率並降低了我們在 AWS 的託管成本。我們在版本整合方面取得的進展，去年取得了重大進展，今年繼續制定積極的計劃，淘汰舊版本的產品，並從與支援多個版本相關的費用的支援成本和開發成本中獲益的多種產品。

And the new AWS agreement that we talked about last quarter has provided us with increased efficiencies or increased cost efficiencies around our hosting costs. So all of those are continuing to play out. And then on the revenue side, the outperformance in terms of revenues, especially on the payment side, where we were able to cover fixed costs in a better way with incremental revenues from things like driver history records above our plan that contributed there. And then lastly, we mentioned briefly, but continue to have effective expense management of OpEx. So both sales and marketing and G&A costs are growing at a slower rate than our than our overall revenues. So we're getting efficiencies there and those factor into the rest of the year as well.

我們上季討論的新 AWS 協議為我們提高了託管成本的效率或成本效益。所以所有這些都在繼續上演。然後在收入方面，收入方面表現出色，尤其是在支付方面，我們能夠以更好的方式覆蓋固定成本，並透過高於我們計劃的駕駛員歷史記錄等增量收入來支付固定成本。最後，我們簡要地提到，但仍繼續對營運支出進行有效的費用管理。因此，銷售和行銷以及一般管理費用的成長速度低於我們的整體收入成長速度。因此，我們正在提高效率，這些因素也會影響今年剩餘時間。

Yes. Clarke, I'd add, we are seeing efficiencies through the cloud, but there's still a runway to go in the efficiencies that we're going to achieve. And there's some other internal initiatives, we don't talk a lot about, things like improving our gross margins on pro services. We've seen -- we saw an uptick of that in Q1. That's really a function of a few different things. It's more of -- it's a strategic focus that we started working on last year. But it's also a function of that we've had a more stable labor market. Our turnover has been much lower and sort of returned back to pre-COVID levels. And that really helps. It helps drive billable utilization. Other internal initiatives around things like rationalization of some internal IT costs and real estate costs. Things that we've been working on behind the scenes are all starting to show some results in addition to the cloud. But I want to emphasize that the efficiencies that we're going to see from further version consolidation and optimization and all the things that we're going to do in the cloud are still out there for us to go capture.

是的。 Clarke，我要補充一點，我們正在透過雲端看到效率的提高，但我們要實現的效率還有很長的路要走。還有一些其他內部舉措，我們不會談論太多，例如提高專業服務的毛利率。我們已經看到，第一季這數字有所上升。這實際上是一些不同事物的函數。這更多的是──這是我們去年開始研究的一個策略重點。但這也是我們擁有更穩定的勞動市場的一個原因。我們的營業額要低得多，並且有點回到了疫情前的水平。這確實有幫助。它有助於提高計費利用率。其他內部措施則圍繞著一些內部 IT 成本和房地產成本的合理化等問題。除了雲端之外，我們在幕後所做的事情都開始顯示出一些成果。但我想強調的是，我們將從進一步的版本整合和優化中看到的效率以及我們將在雲端中完成的所有事情仍然可供我們捕捉。

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 Michael Turrin。

Maybe on transaction revenue, the prepared materials mentioned a customer change from gross to net. Would be curious on the rationale there, whether that's something we could see other customers elect for? And Brian, maybe you can just walk through both the margin impacts for us to consider there as well as the increased growth guide. Fast start came up a couple of times on the call, but if there's any supporting commentary on what's driving that, also helpful.

也許在交易收入方面，準備的資料提到了客戶從毛額轉為淨額。我們對其中的基本原理感到好奇，我們是否可以看到其他客戶選擇這樣做？布萊恩，也許您可以簡單介紹一下我們要考慮的利潤影響以及成長指南。快速啟動在電話會議中出現了幾次，但如果有任何關於推動這一點的支持性評論，也會有所幫助。

Sure. Yes, last year, and we talked about this some last year, we actually had 2 clients last year, state enterprise clients that had changes from the gross to the net model. And still, the vast majority of our payments business is on the gross model, and we expect that to continue to be the case. So we really don't see sort of large-scale changes like that ahead. It is a client decision. Most of our clients prefer the certainty and predictability they get from having a growth arrangement with us, where we're responsible for the merchant fees and interchange fees and bear the risk of the fluctuation of those. And -- so most of our clients prefer that.

當然。是的，去年，我們去年也談到這個問題，去年我們實際上有兩個客戶，國有企業客戶，從總量模式轉變為淨模式。儘管如此，我們的絕大多數支付業務仍然採用整體模式，我們預計這種情況將繼續如此。因此，我們確實不會看到未來出現類似的大規模變化。這是客戶的決定。我們的大多數客戶更喜歡與我們達成成長安排所獲得的確定性和可預測性，我們負責商家費用和交換費用，並承擔這些費用波動的風險。而且—所以我們的大多數客戶都喜歡這樣。

These two clients, one changed towards the beginning of the year. The one that's still impacting our comparisons changed midyear last year, and they had roughly between $4 million and $5 million, a quarter of merchant fees associated with that account. So it will impact us in terms of our comparison for the first half of this year, and then it will lap itself and it won't be a factor. So as a result, our growth in transaction revenues because of that impact, and again, an impact on revenues, it actually improves margins by going to the gross model and the merchant fees for the first half of the year will just be up -- or transaction fees for the first half of the year, grow in the low single digits. But the second half of the year, we expect low to mid-teens when that impact has lapped. But again, I don't see that as a real trend going forward, but it is a client decision on an individual basis and different clients have different approaches to the risk they're willing to take and whether they're willing to manage those and pay those merchant interchange fees directly themselves.

這兩個客戶，其中一個在年初發生了變化。仍然影響我們比較的那個在去年年中發生了變化，他們的帳戶費用大約在 400 萬到 500 萬美元之間，佔與該帳戶相關的商家費用的四分之一。因此，它會影響我們今年上半年的比較，然後它會自行消失，不會成為一個因素。因此，由於這種影響，我們交易收入的成長，以及對收入的影響，它實際上透過採用毛利率模型提高了利潤率，今年上半年的商家費用將會上升——上半年的交易費用以較低的個位數成長。但到今年下半年，當這種影響消失時，我們預計會出現低至中位數的情況。但同樣，我不認為這是一個真正的趨勢，但這是客戶個人的決定，不同的客戶對他們願意承擔的風險以及他們是否願意管理這些風險有不同的方法並自己直接支付那些商家交換費。

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 a little bit better the progress that you're seeing, I guess, adding more transaction-based systems to your existing customers. Can you give us a sense of how penetrated you are in terms of those transaction systems? And whether you're sort of on plan or on track in terms of adding more content to these existing contracts?

我想，我只是想更了解您所看到的進展，為現有客戶添加更多基於交易的系統。您能否讓我們了解一下您對這些交易系統的滲透程度？在為這些現有合約添加更多內容方面，您是否按計劃或按計劃進行？

Yes, that's a good question, Jonathan. I don't have those numbers just off here off the top of my head, we certainly can get back to you with those. I would say that generally speaking, we got a long runway left. We're still pretty early in our transactions business. You can point to our presentation at Tyler 2030 for how we saw transactions revenue to grow and the cash flow from that over the next 5 to 6 years.

是的，這是一個好問題，喬納森。我腦子裡沒有這些數字，我們當然可以用這些數字回覆您。我想說的是，一般來說，我們還剩下很長的跑道。我們的交易業務還處於起步階段。您可以參考我們在 Tyler 2030 上的演示，了解我們如何看待交易收入的成長以及未來 5 到 6 年的現金流。

Yes. We're still in the very early stages, very early innings of driving that cross-sell. We've done a lot of work with integrating the payments platform into our software products that have significant payments capabilities, things like utility billing and traffic court and licensing and permitting. And then as Lynn talked about earlier, the initiatives we've had to -- that in place more effective cross-selling sales motions. And we're starting to see the impact of that with, I think, we see 288 new payments deals across Tyler's customer base, but it's a very small fraction that we've penetrated so far of our software customer base with our payments platform, and that continues to build momentum, and we're really pleased with -- I'd say we're at least on track with our plans for this year. But again, in the very early innings of that.

是的。我們仍處於推動交叉銷售的早期階段。我們已經做了很多工作，將支付平台整合到我們的軟體產品中，這些產品具有重要的支付功能，例如公用事業計費、交通法庭以及許可和許可。正如林恩之前談到的，我們必須採取的措施——採取更有效的交叉銷售行動。我們開始看到這一影響，我認為，我們在泰勒的客戶群中看到了 288 項新的支付交易，但這只是我們迄今為止透過支付平台滲透到我們的軟體客戶群中的一小部分，這繼續增強勢頭，我們真的很高興——我想說，我們至少正在按計劃實施今年的計劃。但同樣，在比賽的最初幾局。

Yes. And I'd add to that, Jonathan. I mean, last -- I guess, now 2 years ago, we acquired Rapid Financial, which is the disbursements world. We are -- we barely scratched the surface with that. So still a lot to do on both sides. I would say if you look -- again, point you to our 2030 presentation, I'd say we're kind of on track right now for that.

是的。我還要補充一點，喬納森。我的意思是，最後 - 我想，兩年前，我們收購了 Rapid Financial，這是支付領域。我們只是──我們僅僅觸及了表面。所以雙方還有很多工作要做。我想說，如果您再看一下我們的 2030 年演示，我會說我們現在已經步入正軌了。

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

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

I want to unpack a comment you made earlier in terms of cybersecurity as a driver of public agencies moving to the cloud. Are we seeing like the concerns about ransomware and cybersecurity is perhaps a tailwind that you guys are dealing now with just for public safety, but across the board? And are you seeing the life cycle of the systems that you're replacing, is that shrinking? So are we seeing an acceleration in the refresh cycle, albeit it might be small, but are we seeing some level of that, you think?

我想解讀您之前就網路安全作為公共機構遷移到雲端的驅動力方面發表的評論。我們是否認為對勒索軟體和網路安全的擔憂可能是你們現在為了公共安全而處理的順風車，但是全面的？您是否看到您要更換的系統的生命週期正在縮短？那麼，我們是否看到刷新周期有所加速，儘管可能很小，但您認為我們是否看到了某種程度的加速？

I don't know about that. I guess I would just say that -- so my comment before on cybersecurity is look, we all know what's out there. It's a big event when it happens to a client. Generally, they -- as I said, they view us and we view them as their trusted partner, and we're usually there to help them. And one of the things that they realize quickly is getting them into the cloud will make them much more secure. It's -- to say that there's driving flips, it is. It's not a huge tailwind, but it's out there. And it's not necessarily something that we're hoping for. But it's just a fact of life. It's a fact of doing business in today's world.

我對此一無所知。我想我只想這麼說——所以我之前對網路安全的評論是，我們都知道那裡有什麼。當這件事發生在客戶身上時，這就是一件大事。一般來說，正如我所說，他們將我們視為他們值得信賴的合作夥伴，我們通常會在那裡幫助他們。他們很快意識到的一件事就是將它們轉移到雲端將使它們更加安全。可以說，確實存在駕駛翻轉。這不是一個巨大的順風，但它就在那裡。這不一定是我們所希望的。但這只是人生的一個事實。這是當今世界做生意的事實。

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。

Brian, on the 21% growth in ARR and the flip, is that just largely pricing? Does that include cross-sell, upsell? I guess what does that entail? Is that -- I'm just trying to get a sense of it, that's sort of apples-to-apples or if you're seeing some of the sales synergies Lynn discussed earlier, factoring into that growth as well.

Brian，關於 ARR 成長 21% 以及反過來，這在很大程度上只是定價嗎？這包括交叉銷售、追加銷售嗎？我想這意味著什麼？我只是想了解一下，這是一種同類比較，或者您是否看到林恩之前討論過的一些銷售協同效應，也將這種增長考慮在內。

Yes. I think the biggest factor is larger average deal size. So we're seeing at least in the mix this quarter, and it won't necessarily be consistent every quarter because that can be kind of lumpy what that mix is. But we saw more bigger customers move we highlighted one of them, Fulton County, Georgia, with their tax solution. I think $1.3 million in ARR from that one. So seeing generally more larger customers in the mix. Last quarter, we had our first court flip. This quarter, we had the pellet court in Kansas flipping.

是的。我認為最大的因素是平均交易規模更大。因此，我們至少在本季度看到了混合情況，而且不一定每個季度都保持一致，因為混合情況可能有點不穩定。但我們看到更多的大客戶搬遷，我們重點介紹了其中之一，佐治亞州富爾頓縣，及其稅務解決方案。我認為該項目的 ARR 為 130 萬美元。因此，通常會看到更多的大客戶。上個季度，我們進行了第一次法庭翻轉。本季度，堪薩斯州的球館發生了翻天覆地的變化。

So it's more around the average size of the clients. But there also is upsell in those as well. So I think the average we've talked about still tends to be about 1.7, 1.8x uplift relative to the maintenance, but in some of these -- especially some of the larger ones, we've seen a bigger uplift where we've added new services or additional products when they flip. So a combination of both of those things.

所以它更接近客戶的平均規模。但這些產品也有追加銷售。因此，我認為我們討論過的平均值相對於維護仍趨向於約 1.7 至 1.8 倍的提升，但在其中一些項目中——尤其是一些較大的項目，我們已經看到了更大的提升。時添加新服務或附加產品。所以這是這兩件事的結合。

Yes. And Kirk, I think there's also been a few occasions where we may have won business a while ago. And to get that business, we had some contract concessions, maybe had some fixed pricing for a period of time. And the SaaS flip is an opportunity to sort of revisit that.

是的。柯克，我認為我們不久前也曾有過幾次贏得業務的情況。為了獲得這項業務，我們有一些合約優惠，也許在一段時間內有一些固定定價。 SaaS 的轉變是一個重新審視這一點的機會。

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。

And Brian, I want to reconcile some of the commentary you're making on transaction -- on the transaction business. You commented specifically around higher transaction volumes and better pricing. So maybe just help us understand, is the volume is a function of the traction you're making in cross-sell and the run rate that you talked about earlier? Or is there an underlying dynamic going on as well? And then if you could touch on the pricing as well. Is there an additional dynamic around better pricing, independent of some of the specific contracts you talked about changing from gross to net and vice versa?

布萊恩，我想協調你對交易——交易業務的一些評論。您特別評論了更高的交易量和更好的定價。所以也許只是幫助我們理解，成交量是你在交叉銷售中所產生的牽引力和你之前談到的運行率的函數嗎？或者是否也存在潛在的動態？然後您是否也可以談談定價。圍繞更好的定價是否存在額外的動態，獨立於您談到的從總金額到淨值的某些具體合約的變化，反之亦然？

Yes. On the pricing side, specifically, we've talked about that as we continue to drive more business into the Tyler software customer base, we're able to generally achieve premium pricing or better pricing than a sort of a commodities type payment arrangement where we provide additional value from things like automated reconciliations. So having the software or the payments platform embedded with the software creates additional value for the customer and lets us get better pricing than some of the just payments-only type contracts.

是的。具體來說，在定價方面，我們已經討論過，隨著我們繼續將更多業務帶入泰勒軟體客戶群，我們通常能夠實現溢價或比某種商品類型支付安排更好的定價，在這種安排中，我們透過自動對帳等方式提供額外價值。因此，擁有該軟體或嵌入該軟體的支付平台可以為客戶創造額外的價值，並使我們獲得比某些僅支付類型的合約更好的定價。

So as we continue to add those, we're seeing improvements there. We've seen as well some price increases in some of our revenue-sharing arrangements with third-party payment processors that have also benefited us. And then we also saw, even though they're down year-over-year, we saw better-than-expected revenues from some of the other transaction volumes like driver history records, which tend to be a higher margin business as well. So sort of a combination of things driving that pricing.

因此，隨著我們繼續添加這些內容，我們看到了改進。我們也看到我們與第三方支付處理商的一些收入分享安排的價格上漲，這也使我們受益。然後我們也看到，儘管同比下降，但我們看到其他一些交易量（例如駕駛員歷史記錄）的收入好於預期，這往往也是利潤率較高的業務。這是多種因素共同推動了定價。

Your next question comes from the line of Mark Schappel from Loop Capital Markets.

您的下一個問題來自 Loop Capital Markets 的 Mark Schappel。

John, I believe the remaining ARPA funds must be allocated by year-end. I was wondering if you could just comment on the impact ARPA funds are having on your business today. And whether you anticipate any demand falling off next year as these funds come to an end?

約翰，我相信剩餘的 ARPA 資金必須在年底前分配。我想知道您是否可以評論一下 ARPA 基金今天對您業務的影響。隨著這些資金的結束，您是否預計明年需求會下降？

Yes. The ARPU funds generally have to be committed by the end of 2024 and spent by the end of 2026. And so the commitments -- I mean, largely, I think, at this point across the universe of our customers and prospects, I think the majority of those have been committed probably a strong majority, I think, 80%, 85%, maybe more than that. But committed and sort of an internal commitment and doesn't necessarily mean that they've even started a buying process. So they may have committed funds for a new ERP system, but they haven't even issued the RFP yet.

是的。 ARPU 資金通常必須在 2024 年底之前承諾並在 2026 年底之前支出。我認為可能是絕大多數，80%、85%，也許更多。但承諾和某種內部承諾並不一定意味著他們甚至已經開始購買過程。因此，他們可能已經為新的 ERP 系統投入了資金，但他們甚至還沒有發布 RFP。

We've said that we believe it is a factor in the strong market conditions we've talked about, but not the biggest factor. And so we expect it to continue to be a tailwind of some sort, really through 2026 as those commitments turn into purchases and then turn into deliveries and revenue recognition for us. But we don't expect a big drop-off after that. Most -- we think some of them -- some of the funds used for things like hardware purchases around our school transportation solution that are sort of onetime purchases. But generally, when they're buying something from us, it creates a recurring revenue stream that they may fund the first 2 or 3 years out of ARPA funds, and then they have an ongoing expense with us for a subscription. So I think it's a tailwind, not the biggest factor in the market, we're seeing the one that we'll continue for a while.

我們說過，我們相信這是我們所討論的強勁市場狀況的一個因素，但不是最大的因素。因此，我們預計到 2026 年，它將繼續成為某種推動力，因為這些承諾將轉化為採購，然後轉化為我們的交付和收入確認。但我們預計此後不會出現大幅下降。大多數——我們認為其中一些——一些資金用於購買學校交通解決方案周圍的硬件，這些都是一次性購買。但一般來說，當他們從我們這裡購買東西時，會創造一個經常性收入流，他們可能會用 ARPA 資金來資助前 2 或 3 年，然後他們就會向我們支付持續的訂閱費用。因此，我認為這是一種順風，而不是市場中最大的因素，我們看到這種趨勢將持續一段時間。

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。

Most of my questions have been asked -- answered. But one question I still had was, maybe we could talk about traction with AI-powered acquisitions. I think it was called out and it's on your slide deck. Just kind of curious, I know these were probably small acquisitions, but I'm curious about the revenue size of these products. And maybe kind of stack rank in terms of -- in your possession and with your size and scale and go-to-market, how would these opportunities stack up versus maybe what you did in the parks and recreation area or the vend engine and stuff in jails in the recent past? Just trying to better understand how meaningful these could be.

我的大部分問題都已被提出並得到解答。但我仍然有一個問題是，也許我們可以討論人工智慧驅動的收購的吸引力。我認為它已被調出並且位於您的幻燈片上。只是有點好奇，我知道這些可能是小型收購，但我很好奇這些產品的收入規模。也許在你擁有的、你的規模、規模和進入市場方面，這些機會與你在公園和休閒區或自動販賣機等方面所做的相比如何疊加最近在監獄裡？只是想更好地理解這些有多有意義。

Yes. Thanks, Terry. So I guess, first of all, like I said, we're early with these acquisitions. These acquisitions really fit the mold of acquisitions that we've done that have been very successful, which is a product differentiator that we can take into our installed base where we've got a really commanding position to leverage. I think each one of these 3 are -- have different growth trajectories, which is another one of our criteria is can this grow at a rate faster than Tyler's overall rate? And I think all 3 of these clearly ticked that box. I think the acquisition of CSI probably has a little bit bigger near-term market opportunity. The RexourceX will drive sufficient -- a lot of revenue in its own right, but it's also going to drive higher win rates for our ERP solutions, which is not necessarily as measurable.

是的。謝謝，特里。所以我想，首先，就像我說的，我們在這些收購方面處於早期階段。這些收購確實符合我們已經完成的非常成功的收購模式，這是一個產品差異化因素，我們可以將其納入我們的安裝基礎，在那裡我們擁有真正的主導地位可以利用。我認為這三者中的每一個都有不同的成長軌跡，這是我們的另一個標準是其成長速度能否比泰勒的整體速度更快？我認為這三者顯然都符合這個條件。我認為收購CSI可能有更大的近期市場機會。 RexourceX 本身將帶來足夠的收入，但它也將為我們的 ERP 解決方案帶來更高的勝率，而這不一定是可衡量的。

AR Inspect our field operations, new product. Again, we talked about there's a lot of interest there, a lot of excitement. And I'd expect that to really sort of all of them to outperform our expectations coming in. But based on those -- the criteria that I sort of originally outlined. So we're excited about all three of these. We're generally excited about every acquisition we do. But we -- these are off and running and off to a good start, and we're already seeing movements in the market based on these three acquisitions, and that's what's really appealing to me.

AR 檢查我們的現場操作、新產品。我們再次談到那裡有很多興趣，很多興奮。我預計所有這些都會超出我們的預期。所以我們對這三件事感到興奮。我們通常對我們所做的每一次收購都感到興奮。但我們——這些已經開始運行，並且有了一個良好的開端，而且我們已經看到基於這三項收購的市場變動，這才是真正吸引我的地方。

And collectively, those 3 are around $4 million of revenues for the quarter. So yes, small compared to Tyler's total. But interestingly, a couple of those deals we called out were significantly sized deals with large customers. So the Dallas County CSI, almost $1 million of ARR from the CSI product. So you see how that -- relative to a business group that are collectively doing around $4 million a quarter in revenues, adding single contracts that add $1 million of ARR is off to a nice start.

這三者合計本季的營收約為 400 萬美元。所以，是的，與泰勒的總數相比，這個數字很小。但有趣的是，我們公佈的其中幾筆交易是與大客戶的規模相當大的交易。因此，達拉斯縣 CSI 從 CSI 產品中獲得了近 100 萬美元的 ARR。因此，您會發現，相對於一個季度總收入約為 400 萬美元的業務集團來說，增加單一合約可增加 100 萬美元的 ARR，這是一個很好的開端。

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

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

So correct me if I'm wrong, but this is, I think, the first time since almost like 2014 that you've actually raised the top line guide for the full year after Q1. So maybe Lynn, just talk about and walk through what's giving you that confidence to do that? You guys don't usually do that. Is it improving demand from new arrangements as it flips? Is it transaction revenue expectations? It might be all of the above. It might be the M&A. But like what is driving that incremental confidence and conviction to kind of do something you don't usually do?

如果我錯了，請糾正我，但我認為，這是自 2014 年以來第一次真正提高第一季後全年的營收指南。那麼林恩，請談談並闡述一下是什麼讓您有信心這樣做？你們通常不會這樣做。隨著情勢的轉變，新安排是否會改善需求？是交易收入預期嗎？可能是以上所有情況。這可能是併購。但是，是什麼驅使你不斷增加信心和信念去做你平常不會做的事情呢？

Yes, it's a good point, Alex. And I was actually thinking to myself, when was the last time we'd ever done it, because I couldn't recall and you did my homework and told me it was 10 years ago. We just come off our management quarterly meetings. We've got really good visibility on what we see out there. And I would say it's improved. I talked earlier about not just the demand in the market, but what we're seeing for our sales outlook. We're just seeing a lot of things lining up in a way that gives us that confidence to do it, as you point out, I mean, it's not something we typically do. We were -- I wouldn't say we were conservative, but we like to not get ahead of our skis. And we'd like to tell you what we're going to do then we're going to go do it. And it's just -- it's a combination of a lot of factors.

是的，這是一個很好的觀點，亞歷克斯。我實際上在心裡想，我們最後一次這樣做是什麼時候，因為我記不清了，而你給我做了作業，告訴我那是 10 年前。我們剛結束管理層季度會議。我們對外面的情況有很好的了解。我想說它有所改善。我之前不僅談到了市場的需求，還談到了我們對銷售前景的看法。我們只是看到很多事情以一種讓我們有信心去做的方式排列起來，正如你所指出的，我的意思是，這不是我們通常會做的事情。我們——我不會說我們保守，但我們不喜歡超越我們的滑雪板。我們想告訴你我們要做什麼，然後我們就會去做。這只是——這是很多因素的結合。

I can tell you that for the last couple of years, one of the mantras I've been saying within Tyler to not just the management team, but to all the employees, whether it's in a town hall or what is, I would say, the last couple of years, I have never been more excited about Tyler's future than I am today. And coming into this year and really the last couple of months, I've switched that a little bit. So I've never been more confident in Tyler's future then I am today. And again, it's just a lot of things going right. We're clicking on all cylinders right now, and we've got an aligned management team with a singular vision, singular focus. There's a lot of initiatives going on at Tyler. I mean we're not just sitting back. There's a lot of things going on, but I just like where we sit right now.

我可以告訴你，在過去的幾年裡，我一直在泰勒內部對管理團隊和所有員工說的口頭禪之一，無論是在市政廳還是其他什麼地方，我會說，在過去的幾年裡，我從來沒有像今天這樣對泰勒的未來感到更興奮。進入今年，實際上是過去幾個月，我對此做了一些改變。所以我對泰勒的未來從未像現在這樣充滿信心。再說一遍，很多事情都進展順利。我們現在全力以赴，我們擁有一支團結一致的管理團隊，有著單一的願景、單一的焦點。泰勒正在進行許多舉措。我的意思是我們不只是袖手旁觀。發生了很多事情，但我喜歡我們現在的位置。

And just generally, the revenue outperformance in Q1, obviously, it was not sort of pull forward or timing of things that we might have seen in the later quarter, especially around the transaction-based revenue, truly was additive to what we expected for the rest of the year. And so that drove us raising the outlook for the full year.

總的來說，第一季的收入表現顯然不是我們在後一季可能會看到的事情的提前或時機，特別是圍繞基於交易的收入，確實是我們對第二季度的預期的補充。剩下的時間。這促使我們提高了全年的前景。

And I usually never asked this follow-up question, particularly because we love margins, and we love efficiency. But I guess, given this, call it, once in a decade incrementally higher level of confidence and conviction this early in a year. Is there a world where you do maybe push the throttle a little bit more on investments, both organic and/or inorganic as it does seem like the market seems to be coming to you at a faster pace?

我通常不會問這個後續問題，特別是因為我們喜歡利潤，我們喜歡效率。但我想，考慮到這一點，稱之為十年一次，在今年年初，信心和信念的水平逐漸提高。是否有一個世界，您可能會在有機和/或無機投資上加大一點力度，因為市場似乎正在以更快的速度走向您？

It's a good question, Alex. I think we -- I mean I don't know that we'll deviate from our historical practice of just taking a disciplined approach. We've got plans in place as it relates to margin and investment. I like our balance right now, I like our capital allocation where we sit right now. So I don't think you're going to hear us say this isn't 2017, 2018, where we're going to say, hey, this is now the time for elevated investment. We've got plenty of investments going on. And like I said, a lot of initiatives and both around revenue growth and margin expansion. So I don't think you'll hear that out of us over the next several quarters.

這是個好問題，亞歷克斯。我認為我們——我的意思是我不知道我們會偏離我們採取嚴格方法的歷史實踐。我們已經制定了與利潤和投資相關的計劃。我喜歡我們現在的平衡，我喜歡我們現在的資本配置。所以我認為你不會聽到我們說現在不是 2017 年、2018 年，我們會說，嘿，現在是增加投資的時候了。我們正在進行大量投資。就像我說的，圍繞著收入成長和利潤率擴張有很多舉措。因此，我認為您在接下來的幾個季度內不會聽到我們這樣說。

This does conclude our question-and-answer session. I will now turn the call back over to Lynn Moore for closing remarks.

我們的問答環節到此結束。現在，我將把電話轉回給林恩摩爾 (Lynn Moore)，讓其致閉幕詞。

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

謝謝克里斯塔，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。再次感謝，祝您有美好的一天。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。