Tyler Technologies, Inc. · NYSE:TYL

Tyler Technologies — Q4 2024 Earnings Presentation

29 slides from Tyler Technologies's earnings presentation, Feb 13, 2025

  1. Slide 1: 2024 Fourth Quarter Earnings Review, 2025 Annual Guidance

    2024 Fourth Quarter Earnings Review 2025 Annual Guidance Tyler Technologies | February 13, 2025

  2. 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-

  3. 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

  4. 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 85% RECURRING 26.9% FREE CASH FLO W 98% GROSS CLIENT PO SIT IO N REVENUES 2024 MARG IN 2024 RET ENT ION 2 0 2 4 R E V E N U E B R E A K D O W N ERP / PLATFORM COURTS & PUBLIC K-12 APPRAISAL & CIVIC OTHER FINANC

  5. Slide 5: Tyler 2030 | Pillars of Growth

    Tyler 2030 | Pillars of 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

  6. Slide 6: Q4 2024 Summary

    Q4 2024 Summary © Tyler Technologies 2025 2S

  7. Slide 7: Fourth Quarter Results

    Fourth Quarter Results C O N T I N U E D S T R O N G 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 $541.1M, up 12.5% $2.43 EPS, up 28.6% 24.4%, up 210 bps (organic growth of 12.4%) SaaS Revenues $173.4M, up 23% ARR $1.86B,

  8. Slide 8: Fourth Quarter Results: Key Highlights

    Fourth Quarter Results K E Y H I G H L I G H T S HealthyyHealthy public c sector public r demand, sector demand , Executing g enhanced d go-to-markett Elevated sales activity with elevated sales indicators indicators in strategy,, driving higher cross-sell and RFP pipeline and demo trends RFP and de

  9. Slide 9: Strong Recurring Revenue Growth

    Strong Recurring Revenue Growth Total Revenues Recurring Revenues • Recurring revenues up 14.9% % (14.9% % organic) $541.1M $463.9M % of Total Revenues YoY Growth • Subscriptions rose e 21.9% % (21.8% % organic)) $173.4M SaaS Revenues +23.0% o SaaS revenues grew 23.0% % (22.8%% organic),, marking th

  10. Slide 10: Q4 2024 Strong Performance Across Key Metrics

    Q4 2024 Strong Performance Across Key Metrics Total Revenues Recurring Revenues Diluted EPS1 Adjusted EBITDA1 $541.1M $463.9M GAAP $1.49 $142.8M +63.7% +21.0% +12.5% +14.9% +12.4% organic Non-GAAP $2.43 +14.9 organic +28.6% Cash from Operations* Free Cash Flow*1 Gross Margin1 Operating Margin1 $224.

  11. Slide 11: Q4 2024 New Software Business Mix

    Q4 2024 New Software Business Mix ACCELERATING SAAS ADOPTION WITH HIGHER CONTRACT VALUE # of New Software Deals # of Flips 179 177 87% 85% 156 150 106 92 SaaS 23 13% 27 15% 4Q23 4Q24 4Q23 4Q24 License Flip Contract Value New Software Contract Value $146.2M $116.2M $53.1M $141.2M 97% $103.0M 89% $33.

  12. Slide 12: Q4 2024 New ARR

    Q4 2024 New ARR ACCELERATING SAAS ADOPTION WITH HIGHER AVERAGE ARR New SaaS Total ARR New SaaS Avg ARR $24.7M $164.6K $15.8M $101.3K 4Q23 4Q24 4Q23 4Q24 Flips Total ARR Flips Avg ARR $17.1M $161.5K $11.3M $122.7K 12 4Q23 4Q24 4Q23 4Q24

  13. Slide 13: Notable Q4 Wins

    Notable Q4 Wins ACCELERATING SAAS ADOPTION AND FLIPS New SaaS deals New SaaS deals Large SaaS flips • Southwestt Regionall • State e off Maine • Tarrantt County,, TX Communicationss Center • Resident Engagement Portal • Enterprise Jury • A Texas 911 Consortium in the DFW • Strong references from oth

  14. Slide 14: Notable Q4 Wins

    Notable Q4 Wins Cross-sell synergies Multi-product wins State & Federal • Utah h State e Enterprise e 2-yearr extension • Nebraska a State e Patrol • Cityy off Kenosha,, WI • Enterprise Portal extension • Enterprise Public Safety + Digital Solutions • Joint effort across Public Admin Group • Digital

  15. Slide 15: 2024 Annual Summary

    2024 Annual Summary

  16. Slide 16: Strong Recurring Revenue Growth

    Strong Recurring Revenue Growth Total Revenues Recurring Revenues • Recurring revenues up 11.1% % (10.7 7 % organic) $2.138B $1.806B % of Total Revenue YoY Growth • Subscriptions rose e 15.8% % (15.6% % with h organic) $644.8M SaaS Revenues o SaaS revenues grew 22.1% % (21.6% % organic) +22.1% o Tra

  17. Slide 17: 2024 Strong Performance Across Key Metrics

    2024 Strong Performance Across Key Metrics Total Revenues Recurring Revenues Diluted EPS1 Adjusted EBITDA $2.138B $1.806B GAAP $6.05 $567.8M +55.9% +9.5% +11.1% +16.6% +9.0% organic +10.7% organic Non-GAAP $9.55 +22.4% Cash from Operations* Free Cash Flow* Gross Margin1 Operating Margin1 $624.6M $57

  18. Slide 18: Annual 2024 New Software Business Mix

    Annual 2024 New Software Business Mix # of New Software Deals # of Flips 835 765 632 83% 734 88% 415 338 SaaS 133 17% 101 12% License 2023 2024 2023 2024 New Software Contract Value Flip Contract Value $408.2M $345.3M $393.1M 96% $153.6M $293.7M 85% $91.9M $51.6M 15% (70.6)% 4% $15.1M 2023 2024 2023

  19. Slide 19: 2024 Annual New ARR

    2024 Annual New ARR Higher Average ARR New SaaS Total ARR New SaaS Avg ARR $72.5M $98.8K $80.8K $51.1M 2023 2024 2023 2024 Flips Total ARR Flips Avg ARR $53.0M $127.7K $101.1K $34.2M 2023 2024 2023 2024 19

  20. Slide 20: Executed Key Initiatives in Our Cloud Transition

    Executed Key Initiatives in Our Cloud Transition 9 Launched cloud optimized releases across many of our flagship products, driving an accelerated pace of client migrations with more flips of larger clients taking place 97% 9 Solid progress toward version consolidation 83% 85% 71% 9 Tracking well aga

  21. Slide 21: Strong Cash Flow Generation

    Strong Cash Flow Generation Cash From Operations Free Cash Flow $700M $625M $600M $500M $575M $372M $381M $380M $400M $355M $300M $255M $331M $327M $327M $200M $316M $213M $100M $0M 2019 2020 2021 2022 2023 2024 Note: Cash flow was positively impacted by $29 million SaaS prepayment in Oct. 2024 rela

  22. Slide 22: Healthy Balance Sheet with Strong Cash Flow

    Healthy Balance Sheet with Strong Cash Flow Cash Exceeds Outstanding Debt Repaid d $1.2B B off term m debtt since e NIC C acquisition n in n Aprill 2021 $1,400M $1.355B Net Leverage Nett leverage e iss zero o ass cash h exceedss outstanding g debt 2.07x $1,200M $955B Net Leverage $875B $875M 2.07x $

  23. Slide 23: 2025 Annual Guidance

    2025 Annual Guidance

  24. Slide 24: 2025 Annual Guidance

    2025 Annual Guidance EXECUTING LONG-TERM GROWTH AND CLOUD-FIRST STRATEGY R E V E N U E D R I V E R S Guidance midpoint implies growth of approx. 8.5% Totall Revenues Revenue range percentage growth expectations: $2.30B - $2.34B • Subscriptions growth of 15 - 18% $2.14B • SaaS growth of 21 - 24% • Tr

  25. Slide 25: 2025 Annual Guidance

    2025 Annual Guidance Diluted EPS - GAAP Diluted EPS - Non-GAAP $10.90 - $11.15 $7.31 - $7.56 $9.55 $6.05 2024 2025 Guidance 2024 2025 Guidance Free Cash Flow Margin R&D Expense 26.9% $177.0 - $182.0M 24% -26% $117.9M Most recent 2025 guidance provided on 2/12/25 2024 2025 Guidance 2024 2025 Guidance

  26. Slide 26: Appendix

    Appendix

  27. Slide 27: Non-GAAP Measures

    Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP 27

  28. Slide 28: Non-GAAP Measures

    Non-GAAP Measures THE TABLE RECONCILES THE NON-GAAP MEASURES USED IN THIS PRESENTATION GAAP 28

  29. Slide 29: tylertech.com

    “. tyler Empowering people who serve the public* vey e oe y technologies

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