10/30/2025

speaker
Operator
Conference Call Operator

up. And as a reminder, this conference is being recorded today, October 30th, 2025. I would like to turn the call over to Hala El-Shabiri, Tyler's Senior Director of Investor Relations. Please go ahead.

speaker
Hala El-Shabiri
Senior Director of Investor Relations

Thank you, 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 update our annual guidance for 2025. Lynn will end with some additional comments, and then we'll take your questions. During this 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 uncertainty, 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 comparison with peers in the software industry. A reconciliation of GAAP to non-GAAP measures is provided in our earnings release. We have also posted on the investor relations section of our website under the financials tab, a schedule with supplemental information, including information about quarterly recurring revenues and bookings. 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?

speaker
Lynn Moore
President and Chief Executive Officer

Thanks, Holla. Third quarter results once again exceeded expectations across our key revenue and profitability measures, continuing the momentum we saw in the first half of the year. Total revenues grew by almost 10%, led by 20% SaaS revenue growth and 11.5% transaction revenue growth. We're also pleased to report solid bookings in Q3, as total SaaS bookings grew 5% sequentially and rose 5.8% year-over-year to reach a new all-time high. Our results reflect a high level of execution across our team as we advance our cloud strategy to lead the public sector's digital transformation. Our leading sales indicators, including RFP and demo activity, remain steady, reflecting a healthy new business pipeline. Throughout the year, we have not seen any fundamental change in public sector demand, nor have we seen any material impact on demand from DOGE or related initiatives, or more recently, the federal government shutdown. As we've discussed previously, we view efficiency mandates as a long-term tailwind for our software and services across a large replacement market aging mission-critical systems. We continue to operate in a resilient budget environment with allocations increasingly directed towards technology investments as a key lever for maximizing efficiency and productivity. We are executing our strategic priorities from a position of strength, grounded in durable fundamentals that reinforce our leadership position and competitive differentiators. Our four key growth pillars remain central to this strategy, including our cloud transition, leveraging our large client base, growing our payments business, and expanding into new markets. Operationalizing our cloud-first strategy is fully embedded as the cornerstone of how we deliver, innovate, and scale. Our cloud living approach will bring together technology and talent to drive agility and continuous improvement, ensuring consistency across releases, and improve time to value for clients. Building on this foundation, Our purpose-built AI innovation is amplifying the power of the cloud, creating more seamless connected client experiences, deepening relationships, and expanding cross-sell and up-sell opportunities across our portfolio. I'd like to highlight a few third quarter wins that illustrate progress against our growth objectives with a broader list of key deals included in our quarterly earnings deck. We continue to gain traction with our AI-driven solutions. Significant deals this quarter including a contract with Hillsborough County, Florida, the state's third largest county, for document automation, adding $953,000 in ARR, and a contract with the state of Arizona for our priority-based budgeting solution. We also signed a contract with the South Carolina Department of Administration for our resident engagement solution, adding to our growing roster of state clients, unlocking streamlined government services access through our AI-powered resident assistant. We continue to build momentum in the public safety market with competitive wins that demonstrate the breadth of our integrated offering and market strength. Public safety deals this quarter included contracts with Coweta County, Georgia in the metropolitan area of Atlanta for our full enterprise public safety suite and a cross-sell win with the city of Columbia, Missouri, an existing enterprise ERP client. We're also pleased to see market success from our recent acquisition, Emergency Networking, with the first statewide win for our National Emergency Response Information System with the state of Pennsylvania, serving more than 2,000 fire agencies across the state. Finally, we signed a statewide contract with the Colorado Department of Corrections for our Inmate Services Financial Suite, which is expected to generate approximately $2 million in transaction-based ARR. Now I'd like Brian to provide more detail on the results for the quarter and our updated annual guidance for 25th.

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