Tyler Technologies, Inc.

Hello and welcome to today's Tyler Technologies first quarter 2023 conference call. Your host for today's call is Lynne Moore, President and CEO of Tyler Technologies. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. In order to address your questions and stay within the allotted time, Please limit your questions to one question per person. And as a reminder, this conference is being recorded today, April 27th, 2023. I would like to turn the call over to Halal El-Shabini, Tyler's Senior Director of Investor Relations. Please go ahead.

Thank you, Gavin, and welcome to our call. With me today is Lynn Moore, our President and Chief Executive Officer, and Brian Miller, our Chief Financial Officer. After I give the Safe Harbor statement, Lynn will have some initial comments on our quarter, and then Brian will review the details of our results and provide an update to our annual guidance. Lynn will end with some additional comments, and then we'll take your questions. During this conference call, management may make statements that provide information other than historical information and may include projections concerning the company's future prospects, revenues, expenses, and profits. Such statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties which could cause actual results to differ materially from these projections. We would refer you to our Form 10-K and other SEC filings for more information on those risks. Also, in our earnings release, we have included non-GAAP measures that we believe facilitate understanding of our results and comparisons with peers in the software industry. A reconciliation of gap to non-gap measures is provided in our earnings release. We have also posted on the investor relations section of our website under the financials tab, schedules with supplemental information including information about quarterly bookings, backlog, and recurring revenues. On the events and presentations tab, we posted an earnings summary slide deck to supplement our prepared remarks. Please note that all growth comparisons we make on the call today will relate to the corresponding period of last year unless we specify otherwise. Len?

Thanks, Holla. We began 2023 by delivering strong first quarter results that met or exceeded our expectations for most key metrics. We continue to see broad-based demand across our product solutions, reflecting strength in the public sector market and our unique ability to support our public sector clients' digital modernization needs. We're seeing a high level of request for proposal and demo activity across our software business, with particularly strong activity in the ERP space. Our mix of new software business also demonstrates how our market continues to embrace the move to the cloud. Total revenue growth was 3.5%, with 7.2% organic growth, which also excludes COVID-related revenues, and recurring revenues comprise nearly 84% of our quarterly revenues. We're pleased with our solid revenue growth, even as the shift to SaaS and our new software mix continue to accelerate, with SaaS deals comprising 87% of our Q1 new software contract value compared to 80% last year. Most importantly, SaaS revenues grew organically at 24.4%. Our sales activity this quarter reflected strong cross-selling success, including opportunities driven by leveraging state relationships at our digital solutions division, formerly NIC, and upsells with our data and insight solutions. In addition to our current quarter wins, our pipeline of cross-sell opportunities continues to grow. We also continue to execute our growth strategy around our payments business. During the first quarter, we signed more than 120 new payment deals. And we are especially pleased with the early traction that we are gaining with our acquisition of Rapid Financial Solutions and their robust payment issuing capabilities. I'd like to highlight a couple of first quarter deals that illustrate these successes. In Indiana, we expanded the relationship between Indiana's Family and Social Services Administration and our Digital Solutions Division with a contract for Tyler's Disbursement as a Service platform to improve the payment disbursement process for sending its existing child care and development fund payments to providers. The purpose of the CCDF federal program is to increase the availability, affordability, and quality of child care. Leveraging the capabilities from the rapid acquisition in combination with our existing state enterprise contract, we will streamline the entire disbursement process from portal setup, including registering users and collecting banking information from providers to virtual account payments across all payment types and channels. Through RAPID's robust platform, the solution will also provide reporting and reconciliation features to support complete oversight of the payment program. In addition, we signed two payments contracts to provide RAPID's disbursement solution for court funds, including Fort Bend County, Texas, a current user of Tyler's jury management solution, and Shelby County, Tennessee, a current Tyler Enterprise Quartz client. The quarter's largest SAS deal, valued at approximately $18.5 million, was with the province of New Brunswick in Canada for our enterprise assessment solution. New Brunswick becomes the fourth Canadian province to implement our flagship property tax solution. Now I'd like for Brian to provide more detail on the results for the quarter and our annual guidance for 2023. Thanks, Lynn.