Slide 1: 2024 Third Quarter Earnings Review
2024 Third Quarter Earnings Review Tyler Technologies | October 24, 2024
Slide 2: Statement Regarding Use of Non-GAAP Measures
Statement Regarding Use of Non-GAAP Measures Tyler Technologies has provided in this presentation financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-
Slide 3: Forward-Looking Statements
Forward-Looking Statements This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectat
Slide 4: The Leader in Software Solutions to the Public Sector
The Leader in Software Solutions to the Public Sector T Y L E R AT A G L A N C E 1 MARKET 84% RECURRING 22.5% FREE CASH FLO W 98% GROSS CLIENT PO SIT IO N REVENUES YT D 2024 MARGIN YT D 2024 RET ENT ION 2 0 2 3 R E V E N U E B R E A K D O W N ERP / COURTS & PUBLIC PLATFORM APPRAISAL & CIVIC K-12 OTH
Slide 5: Tyler 2030 | Pillars for Growth
Tyler 2030 | Pillars for Growth Leveraging Expanding Completing Growing Our Strong Into New Our Cloud Our Payments Client Base Markets Transition Business Goals: Grow revenues, expand margins, and invest in our people & tools 5
Slide 6: Q3 2024 Summary
© Tyler Technologies 2024 4 ee
Slide 7: Third Quarter Results Exceed Expectations
Third Quarter Results Exceed Expectations O U T P E R F O R M A N C E A C R O S S K E Y M E T R I C S Revenues Non-GAAP Earnings1 Non-GAAP Operating Margin1 Total Revenues $543.3M, up 9.8% $2.52 EPS, up 18% 25.4%, up 60 bps (organic growth of 9.4%) SaaS Revenues $166.6M, up 20.3% ARR $1.85B, up 12.1
Slide 8: Third Quarter Results Exceed Expectations: Key Highlights
Third Quarter Results Exceed Expectations K E Y H I G H L I G H T S Healthy public Healthy publicsector demand, sector demand Executing go-to-market strategy, Elevated sales activity indicators with elevated sales indicators in driving higher cross-sell and upsell RFP pipeline and demo trends RFP an
Slide 9: Strong Recurring Revenue Growth
Strong Recurring Revenue Growth Total Revenues Recurring Revenues Recurring revenues up 12.1% % (11.8% % organic) $543.3M $462.8M % of Total Revenues YoY Growth Subscriptions rose e 17.6% % (17.3% % organic)) $166.6M SaaS Revenues +20.3% • SaaS revenues grew 20.3% % (19.7%% organic),, marking 15 con
Slide 10: Q3 2024 Strong Performance Across Key Metrics
Q3 2024 Strong Performance Across Key Metrics Total Revenues Recurring Revenues Diluted EPS1 Adjusted EBITDA1 $543.3M $462.8M GAAP $1.74 $152.4M +9.8% +12.1% +58.2% +15.0% +9.4% organic +11.8% organic Non-GAAP $2.52 +17.8% Cash from Operations* Free Cash Flow*1 Gross Margin1 Operating Margin1 $263.7
Slide 11: Q3 2024 New Software Business Mix
Q3 2024 New Software Business Mix ACCELERATING SAAS ADOPTION WITH HIGHER CONTRACT VALUE # of New Software Deals # of New Flips 208 209 161 77% 181 87% 108 79 SaaS 47 23% 28 13% 3Q23 3Q24 3Q23 3Q24 License New Software Contract Value New Flip Contract Value $108.7 $74.2 $105.6M 97% $35.9M $59.2M 80%
Slide 12: Q3 2024 New ARR
Q3 2024 New ARR ACCELERATING SAAS ADOPTION WITH HIGHER AVERAGE ARR New SaaS Total ARR New SaaS Avg ARR $20.7M $114,542 $83,121 $13.4M 3Q23 3Q24 3Q23 3Q24 New Flips Total ARR New Flips Avg ARR $102,529 $11.1M $74,729 $5.9M 12 3Q23 3Q24 3Q23 3Q24
Slide 13: Notable Wins
Notable Wins ACCELERATING SAAS FLIPS WITH HIGHER AVERAGE ARR New SaaS deals New SaaS deals Larger SaaS flips • Cityy off St.. Petersburg,, FL • Kentuckyy Administrative e Office e off • Cobb b County,, GA • Integrated solution suite: Enterprise ERP e Court,, KY the • Enterprise Assessment & Tax Util
Slide 14: Notable Wins
Notable Wins LEVERAGING UNMATCHED INSTALLED BASE THROUGH STRATEGIC CROSS-SELL Growing cross-sell synergies Growing cross-sell synergies State Enterprise activity • Texass Office e off Courtss Administration • Riverside e County,, CA • State e enterprise e renewalss & extensions • Texas Connected Jus
Slide 15: Healthy Balance Sheet with Strong Cash Flow
Healthy Balance Sheet with Strong Cash Flow Under One Times Proforma EBTIDA at 9/30/24 Repaid d $1.2B B off termm debtt since e NIC C $1,400M $1.355B acquisition n in n Aprill 2021 Net Leverage 2.07x $955B $1,200M Net Leverage $875B $875M 2.07x $1,000M Net Leverage Net Leverage 1.54x 1.55x $740M $60
Slide 16: 2024 Annual Guidance
© Tyler Technologies 2024 a
Slide 17: 2024 Annual Guidance
2024 Annual Guidance EXECUTING LONG-TERM GROWTH AND CLOUD-FIRST STRATEGY R E V E N U E D R I V E R S Total Revenues Guidance midpoint implies growth of approx. 9.4% (approx. 9% organic) $2.125 - $2.145B Revenue range percentage growth expectations: $1.952B • Subscriptions growth in the mid-teens • S
Slide 18: 2024 Annual Guidance
2024 Annual Guidance Diluted EPS - GAAP1 Diluted EPS - Non-GAAP $9.47 - $9.62 $7.80 $6.13 - $6.28 $3.88 2023 2024 Guidance 2023 2024 Guidance Free Cash Flow Margin R&D Expense $119.0 - $122.0M $109.6M 21% -23% 16.8% Most recent 2024 guidance provided on 10/23/24 2023 2024 Guidance 2023 2024 Guidance
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Measures
Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP G AAP 20
Slide 21: Non-GAAP Measures
Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP G AAP 21
Slide 22: tylertech.com
“. tyler Empowering people who serve the public* vey e oe y technologies