Saket Kalia: Got it. Very helpful. Thank you.
Operator: Thank you for your question. Our next question is from the line of Jonathan Ho with William Blair. Your line is live.
Jonathan Ho: Hi, good morning and thank you for taking my question. Just wanted to better understand sort of the AI opportunity that you’re seeing out there and sort of the rationale for making the acquisitions at this time. Just given state and local governments typically adopt technologies a little bit more slowly, how do you think about sort of driving these types of solutions? What does the opportunity look like? Just want to get the broader color. Thank you.
Lynn Moore: Yes, sure, Jonathan. Obviously, it’s a pretty rapidly evolving landscape. There’s a lot that’s in the news, some of it may be a little more hype. But it’s real. And we see AI benefits within Tyler, we’re kind of looking at it in two different ways. We’re looking at it sort of pointing it internally, things that we’re doing, how can we make ourselves more efficient by using AI. Because I think one of the biggest benefits around AI really is when you’re talking about sort of high-volume repetitive tasks, which there are pieces of our business that do that, whether it’s some software coding, it may be some things around some support, things like that. The other side of it is how do we make our products more competitive and differentiate them more?
What we’ve done internally is we’ve organized a working group that’s been in place for several quarters, looking at all the various opportunities. There’s pockets of AI going on all around Tyler right now. We want to take — not surprisingly, what we always do at Tyler is sort of a deliberate targeted approach. Sort of we’re in the process of identifying what are the couple of key areas that we want to focus on in both of those scenarios, whether we’re pointing it internally around creating more efficiencies or adding more competitiveness to our products. The CSI acquisition is a great example of that. They really started off as a sort of a document redaction sort of extraction leader. Recently, they’ve added some machine learning and robotic process automation.
This is something that all of our core clients need and some of our core clients were already using. Tarrant County, which is here out in Fort Worth, they’ve utilized the CSI acquisition and what it saved in their personnel costs, this is their numbers not mine. they’re saying they’ve cut their labor costs by 50% by sort of automating some of these more repetitive things around documents which, of course, there’s a lot there. So even the CSI acquisition, we were just talking earlier the Rapid acquisition. Initially, it’s in the court space, that’s where we’re pointing it. But we also see a lot of places and leverage it across other platforms in Tyler, whether it’s things in our ERP space like invoice processing and things like that. So a lot of applicability.
You’re right, states and clients are — they’re taking different approaches, and we’re going to take that deliberate approach with our clients.
Operator: Thank you for your question. Our next question is from the line of Clarke Jeffries with Piper Sandler. Your line is live.
Clarke Jeffries: Good morning Thank you for taking the question. I apologize, I’m maybe going to beat a dead horse and ask a little bit more questions about the reclass. But specifically, looking at SaaS ARR either pre-reclass or post reclass, been in this mid-single-digit sequential growth paradigm. And what stood out was an acceleration of maybe a high single-digit sequential growth in ARR. And so, Brian, I wanted to ask, is this a reflection of maybe the good bookings you had last year and some of those deals finally reaching the timing where they would be going live in revenue terms? Or was there a change being made in the business, either on a capacity level or a new bookings level that we may not appreciate that contributed to an acceleration in ARR growth? Thank you.
