Tyler Technologies (TYL) Oppenheimer 29th Annual Technology, Internet & Communications Conference summary

Business overview and market position

• Serves over 16,000 government entities, primarily in the U.S., with a broad suite of mission-critical software solutions for local, state, and some federal agencies.

• Transaction-based business with embedded payments complements core software offerings.

• Largest customer base and broadest solution set in the public sector software market.

Financial targets and performance

• Raised 2030 financial targets after exceeding 2025 interim goals, driven by margin expansion and strong cash flow.

• SaaS revenue CAGR target increased to 20% for the next five years, with transaction revenue targeted at 10% growth.

• AI and future M&A contributions are not included in current growth targets.

Cloud transition and SaaS growth

• Cloud migration is the primary driver of margin improvement, targeting mid-30s% operating margin by 2030.

• 85% of on-prem customers expected to migrate to the cloud by 2030, supported by incentives and new feature exclusivity.

• New SaaS bookings, cross-sell, upsell, and pricing contribute to 20% SaaS revenue growth; flips from on-prem to cloud provide a 1.7x uplift.

• SaaS bookings growth aligns with long-term revenue targets, with recent normalization in sales cycles and stable market activity.