Slide 1: 2024 Second Quarter Earnings Review
2024 Second Quarter Earnings Review Tyler Technologies | July 25, 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 AT A G L A N C E 1 MARKET 83% RECURRING 16.8% F REE CASH F LO W 98% GROSS CLIENT PO SIT IO N REVENUES 2023 MARG IN 2023 RET ENT ION R E V E N U E B R E A K D O W N * ERP / COURTS & PUBLIC PLATFORM APPRAISAL & CIVIC K-12 OTHER FINANCIAL JUSTICE SA
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: Q2 2024 Summary
© Tyler Technologies 2024
Slide 7: Second Quarter Results Exceed Expectations
Second 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 $541M, up 7.3% $2.40 EPS, up 19.4% 24.5%, up 150 bps (organic growth of 6.5%) SaaS Revenues $156M, up 23.2% ARR $1.80B, up 8.4%
Slide 8: Second Quarter Results Exceed Expectations: Key Highlights
Second Quarter Results Exceed Expectations K E Y H I G H L I G H T S Healthy public Healthy publicsector demand, sector demand Strong balance sheet – Elevated sales activity indicators with elevated sales indicators in RFP pipeline and demo trends favorable working capital with RFP and demo trends f
Slide 9: Strong Recurring Revenue Growth
Strong Recurring Revenue Growth Total Revenues Recurring Revenues Recurring revenues up 8.4%,, with h organic c growth h off 7.8% $541.0M $449.0M % of Total Revenues YoY Growth Subscriptions rose e 12.1%,, with h organic c growth h off 11.8% % $156.0M +23.2% SaaS Revenues • SaaS revenues grew 23.2%
Slide 10: Q2 2024 Strong Performance Across Key Metrics
Q2 2024 Strong Performance Across Key Metrics Total Revenues Recurring Revenues Diluted EPS1 Adjusted EBITDA1 $541.0M $449.0M GAAP $1.57 $144.0M +7.3% +8.4% +36.5% +14.7% +6.5% organic +7.8% organic Non-GAAP $2.40 +19.4% Cash from Operations* Free Cash Flow*1 Gross Margin1 Operating Margin1 $64.3M $
Slide 11: Q2 2024 New Software Business Mix
Q2 2024 New Software Business Mix # of New Software Deals New Software Contract Value $120 250 231 204 $100 200 $87.4M $80 $75.1M 150 203 88% $60 170 100 $61.7M $84.7M 97% 83% $40 82% 50 $20 34 17% 28 12% $13.3M 18% 0 $- $2.7M 3% 2Q23 2Q24 2Q23 2Q24 License Subscription License Subscription 11
Slide 12: Notable Wins
Notable Wins New SaaS deals New SaaS deals Large client SaaS flips • Cityy off Topeka,, KS • Arizona a Supreme e Court • Fulton n County,, GA A (Atlanta) • Integrated solution suite: Enterprise ERP, • Enterprise Supervision expansion, • $1.9M ARR Enterprise Permitting & Licensing, and adding juvenil
Slide 13: Notable Wins
Notable Wins Growing cross-sell synergies Meaningful Application Platform wins State agreement activity via AI-powered acquisitions • Cherokee e Nation,, Oklahoma • CSII • Five e state e enterprise e renewalss • Enterprise Public Safety suite + Enterprise • Santa Barbara, CA – Superior court and 1st
Slide 14: Healthy Balance Sheet with Strong Cash Flow
Healthy Balance Sheet with Strong Cash Flow Under One Times Proforma EBTIDA at 6/30/24 $1.355B Repaid d $1.2B B off termm debtt since e NIC C $1,400M 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 $740M 1.54x 1.55x $60
Slide 15: 2024 Annual Guidance
2024 Annual Guidance
Slide 16: 2024 Annual Guidance
2024 Annual Guidance ACCELERATING SAAS SHIFT AND CLOUD TRANSITION PROGRESS 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) $2.120 - $2.150B Revenue range percentage growth expectations: $1.952B • Subscriptions growth in the mid-teens •
Slide 17: 2024 Annual Guidance
2024 Annual Guidance Diluted EPS - GAAP1 Diluted EPS - Non-GAAP $9.25 - $9.45 $7.80 $5.76 - $5.96 $3.88 2023 2024 Guidance 2023 2024 Guidance Free Cash Flow Margin R&D Expense $122.0 - $125.0M $109.6M 18% -20% 16.8% Most recent 2024 guidance provided on 7/24/24 2023 2024 Guidance 2023 2024 Guidance
Slide 18: Appendix
Appendix
Slide 19: Non-GAAP Measures
Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP 19
Slide 20: Non-GAAP Measures
Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP 20
Slide 21: tylertech.com
oe “s, tyler Empowering people who serve the public® “ _e°8 e technologies