Tyler Technologies, Inc. Goldman Sachs Communacopia + Technology Conference 2026

You bet. It's great to be here.

I think it's really the impact of the next phase of our cloud transition, which we refer to as Cloud Living. There are a lot of impacts from that. It impacts margin expansion, it impacts our client experience, and ultimately our ability to cross-sell and upsell more effectively. I think that's probably one of the biggest ones. Of course, it's the opportunity from AI. I still think this broad narrative around AI applies to a lot of software companies, and there are a lot of reasons why we view AI as an opportunity more than a risk. I think that's probably still underappreciated.

Well, there are several components of that 10%-12% growth. There's pricing, there's new business or new logos, there's expansion with existing customers, cloud migrations and the uplift from that, and then our growth in transactions revenue. We're highly confident in how all of those contribute to that 10%-12% CAGR. That's in line with our recent growth that I think if you're looking for what might have the most risk, it's probably around the new logos, which is more subject to the broader market conditions.

Well, they both should clearly be upside to revenue. We've certainly demonstrated a long history of successfully executing M&A. Our CEO likes to say M&A is in our DNA. I've been at the company for 29 years. We've done, I think, about 65 acquisitions over that time period. So it's something we think we do very well and we'll continue to do. I guess if you look at an average over that time period, we've probably added low single-digit growth on top of our organic growth. There have been a handful of larger acquisitions, a couple that were 20% of Tyler's size. So I think you should certainly expect to see us continue to drive additional growth from M&A.

AI, we laid out a lot of reasons at our Investor Day in June about why we think that we'll be a winner with AI and why it's incremental to our revenue growth. At this point, we don't think we can credibly say 2030 revenues from AI are going to be X. But we certainly believe there's upside from that, and we've got a high degree of confidence in our ability to drive that. I think we're clearly seeing, with some of the early examples, uplifts from their core software revenues of anywhere from 20% to north of 100%, as we add AI-enabled applications on top of the core systems of record.

Yeah. The majority of the acquisitions we do, I guess you would categorize as tuck-ins or things that fill in a gap in our product portfolio, expand our TAM. It could be something related to an existing suite of products. Occasionally, it adds a whole new sub-vertical within the public sector space, everything in the public sector space. Sometimes there's a technology acquisition. But most of them are the tuck-ins that add new capabilities. We've done, as I said, quite a few of those over time. We look for a number of things. Generally, we're looking for acquisitions that we would expect to grow significantly higher rate than our core growth rate.

I think we had an example at our Investor Day, the acquisitions we've done over the last three years, that their current and projected growth over the five years following acquisition is mid-20% CAGR. So about 2X our core growth rate. We can do that by leveraging our sales organization, by leveraging our customer base, selling them back into our installed base, selling them to, or bundling them with new sales. Often, we are looking at a buy versus build as we look to fill in those gaps. We look for a good cultural fit, a reasonable valuation, which has been something that's been challenging in recent years. Increasingly, we also look for, is there a payments opportunity or a transaction-based opportunity? Because we now have a very robust payments platform that complements our core software.

If there's an opportunity to layer payments on top of a software solution, that's a plus for us. And now increasingly, we look at is there an AI opportunity or is there an AI risk? But is there an opportunity? Do they either bring us AI capabilities or is there an opportunity to enhance that product with new AI capabilities?