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

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But it also didn’t happen without NIC and their contacts at the state and utilizing that state master contract. So that was three different pieces of our organization coming together to create a really great result and something that I think we can replicate across other states that deals a $600,000, AAR deal, really an ideal, but really took the efforts of multiple divisions to do that. And I think that’s sort of an example of what we’re looking to do in the future.

Operator: Your next question comes from the line of Kirk Materne with Evercore. Your line is now open.

Unidentified Analyst: Yes, guys, it’s actually Peter on for Kirk. Appreciate taking the questions. So maybe, Brian, just one for you. Curious are we at the point where there should sort of be more stability in terms of the impact of this subscription transition on revenue versus your guidance? I mean, I think we all get the moving target, but just curious if the level of dispersion is likely to go down from here on that, in that sense?

Brian Miller: Yes, I think so. We certainly expect a bigger decline in licensed revenues this year. Licenses are always the most, or the least predictable of our revenue streams at least in the short term. And so now with well into the 80s, is the percentage of our revenues that are recurring. There’s much less, a much higher level of predictability. So I think we’re definitely kind of around that corner. And in that there should be an increasingly higher level of confidence around our outlooks versus what we actually where results come in.

Operator: Your next question comes from the line of Terry Tillman with Truist Securities. Your line is now open.

Terry Tillman: Hey, good morning. Thanks for filling me in. Unfortunately, for you all still have some more questions, even though a bunch have been answered. Maybe Lynn the first question for you. It’s kind of a twofold first question. And then Brian, I was going to ask you about payments. So Lynn, in terms of those couple of larger public safety deals that slid into the first half. Do you expect those pulls in the first quarter? And then the second part of that first question for you is, you had a great deal last quarter with the Department of State and I know it’s still small in terms of the federal sector for you all. But just anything you can share about optimism in more we could hear this year on that side. And then I want to ask you about payments, Brian?

Lynn Moore: Yes, my expectation is that at least one of those larger deals is on track to close in Q1. As it relates to Tyler federal. I think you’re right. I mean, things that I’m seeing that’s coming out of that that division, in terms of sales indicators, the pipeline, the volume of deals is up significantly since year-over-year. We’re also seeing interesting going up more and more movement in the federal side to SaaS, which is good to see. It’s something that we put an internal focus on in the last two years. And we’re starting to see more of that receptiveness there. So I think there’s positive things coming out of the federal space. And I like our position there right now.

Terry Tillman: That’s great to hear. And then Brian we’ve gotten a lot of data points on payments, and there’s lots of puts and takes up particularly the gross to net or when there’s a rev share, but could you just like really try to help boil it down in terms of for €˜23, the payments revenue business? I mean would that grow at about a similar rate in €˜22, or just anything you can share about the growth rate on the recognized revenue for payments? Thank you.

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