Tyler Technologies, Inc. (NYSE:TYL) Q4 2022 Earnings Call Transcript

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Lynn Moore: Yes, I’d say, David if you go back 12 months ago, we were still experiencing really pretty high elevated turnover, still lower than industry, but higher than our norms, which, as you know, was all companies we’re dealing with. As we progress throughout the year, things started, I think there’s I talk a lot about the pendulum and the labor market pendulum is another one that I talked about. And it’s definitely started to swing back as we fell back into sort of November, December, I would say our turnover has actually come back down to sort of pre-COVID levels. Still early to see if that’s where it stays. But I like words, it’s I like that trend. As it relates to things like that Brian mentioned our services and implementation.

That was an area that was hit particularly hard over the last couple years, and we’ve won a lot of business. We do have to do some hiring to ramp up to deliver on that business. And we’re doing that. It’s also creates a little bit of margin pressure in the near term. Because when we hire large classes of implementers, it normally takes four or five, six months before we get them out billable on the road.

Brian Miller: Most of the growth in our headcount this year will be in revenue generating positions.

Operator: Your last question comes from the line of Keith Housum with Northcoast Research. Your line is now open.

Keith Housum: morning, guys. Thanks for squeezing me in here. I’m just unpacking the payments just a little bit further. The 571 wins is obviously a phenomenal number for the year. Are these mostly agencies that are we taking on that payments for the first time, or at least actually competitive with and what do you see the trajectory I guess in 2023 for that same question?

Brian Miller: I’d say the majority of that number, although not the majority of the dollars, but the majority of the number would be certainly new payments for most of this customer. So a lot of those are existing Tyler customers where we’re adding payments to a utility billing system or a licensing and permitting system. So we may be adding capabilities. they may have only taken checks before and now we’re providing online payment capabilities or credit card payments. And a number of those are still under rev share agreements. So the revenue generated is on an individual payment opportunity may be relatively small, but at good margins. But some of the more significant wins are competitive wins, like we mentioned the City of Milwaukee. That’s a full enterprise payment processing contract. And we’re replacing another vendor there. So I’d say the larger wins tend to be competitive ones, the smaller ones tend to be more first time payments.

Operator: This concludes our question and answer session for today. I turn the call back over to you Lynn Moore.

Lynn Moore : Great. Thanks, everybody for joining us today. If you have any further questions, please feel free to contact Brian Miller or myself. Have a great day everybody.

Operator: This concludes today’s conference. Thank you for attending. You may now disconnect.

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