Brian Miller: 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 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.
Lynn Moore: Yes. And I’d add to that, Jonathan. I mean, last – I guess, now two 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 on track right now for that.
Jonathan Ho: Right. Thank you.
Operator: Your next question comes from the line of Keith Housum from Northcoast Research. Please go ahead.
Keith Housum: Good morning. 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?
Lynn Moore: 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.
Keith Housum: Great. Thank you.
Operator: Your next question comes from the line of Kirk Materne from Evercore ISI. Please go ahead.
Kirk Materne: Yes. Thanks very much for taking the question. 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? Thanks.
Lynn Moore: 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. 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 a 1.7, 1.8 times 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.
Lynn Moore: 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.
Operator: Your next question comes from the line of Gabriela Borges from Goldman Sachs. Please go ahead.
Gabriela Borges: Hi, good morning. Thank you. Lynn 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 pricing independent of some of the specific contracts you talked about changing from gross to net and vice versa? Thanks.
Brian Miller: 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 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 payment-only type contracts. 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 a combination of things driving that pricing.
Gabriela Borges: Thank you for the details.
Operator: Your next question comes from the line of Mark Schappel from Loop Capital Markets. Please go ahead.
Mark Schappel: Hi. Thank you for taking my question. 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?
