TYLTyler Technologies, Inc.

“this past quarter, we won a couple of document automation deals, one in Miami-Dade. I think we mentioned that in our prepared remarks. That's a client where their existing maintenance and support agreement was a little over $0.25 million, and we sold a document automation SaaS deal for upwards of $800,000. So that product is getting a lot of traction in the market.”

“We had 2 big document automation deals. I mentioned one was about $800,000 deal. Another one was Harris County that was pushing $1 million.”

“On internal AI efficiencies, I would say we're seeing them, but it's still anecdotal at this point. Brian answered a question before about R&D. And the way we really think about internal resources is we really focus on capacity. And so what we're seeing, for example, in the R&D world, it's increasing the capacity of our developers, which allows them to do more, which is great. We are seeing some anecdotal efficiencies in the service delivery area. For example, one of our clients in our appraisal and tax is doing a data conversion. In the past, this was a conversion that would have taken many months that was down to a couple of weeks.”

“Buzz doesn't always translate to deals immediately. We are getting deals. As you mentioned, these use cases, we have some of those already in the hands of clients and in the market. But I would generally say it's going to be a slower ramp. Our sector generally moves a little slower than the private sector. A lot of receptiveness, a lot of excitement. I think still TBD to see how much it's going to impact near-term financials.”

“FTR, they've already made a big splash in their space. 45% of the U.S. courtrooms are using it. We look at it as the combination is something that we're able to create something powerful, we call judicial intelligence, something that doesn't exist today, something that can sort of bring together what's right now disparate manual systems between the judge, the clerk, the court reporter.”

“as it relates generally to that acquisition of CSI and document automation, absolutely, we think it's applicable across more parts of our portfolio. Our initial focus has been in the court space. That's where their bread and butter was, and that's where we have a really strong presence. But it is something that I expect to be rolling out across other Tyler portfolio products.”

“with that uplift from the AI-driven document automation, they will generate really significant labor savings. So there's a very strong ROI to that purchase from Tyler.”

“The most important feedback we've gotten is really the point we've emphasized a lot over the last year is trust. And our clients really trust us to be their partner more so than anybody else. They're really concerned about their data and the fact that while -- and the protection of that data, which is something that we do. We talked a lot about the AI Foundry. We mentioned it in our notes. And that really includes all that security we have around it around their data, around their processes, being embedded in their workflows and really helping them do their business and make their jobs more efficient and free up their time from sort of more manual tasks so that they can accomplish other things.”

“when we look about the true increase in development spend, it's kind of balanced across investments in innovation across our entire portfolio, those things that improve our competitiveness, drive higher win rates and add more value to our existing customers, which has always been a hallmark of Tyler as well as the newer investments and growing investments in AI. We are continuing to move resources that are already on board to the AI side as we do things like execute on version consolidation and free up more internal resources. So it's not a huge hiring push on the AI side, but we are dedicating more of our development resources to those efforts.”

“As it relates to AI, I think it's a tailwind. I wouldn't say it's a big tailwind at this point. We have a lot of AI initiatives going. We've got AI in a lot of our products. It's embedded in our workflows. We spend a lot of time showcasing it at Connect. There was a lot of buzz around what we're doing and really the trust we have with our clients. And they trust us to move forward with AI. And so I like where we're positioned. We're making the right investments. Our clients are partnering with us on it, and I like where it's going.”

“as we look out over time, there's been a few questions around flips and getting clients in the cloud. And over the years, we've talked about carrots and sticks. I wouldn't be surprised if we look out in the future that AI will be something that will become more and more available only in the cloud, but we're not quite there yet. But that is something that we're looking at really hard.”

“Some of these are going to be priced SaaS. Some AI features will be just part of our competitiveness added into our features and some will be priced as separate modules. Right now, I think we're still early, but we're getting wins in deals that are validating our models.”

“Public sector demand remains robust with an active pipeline and growing momentum across our cloud solutions, AI-enabled applications and our unified transaction strategy.”

“putting AI in our products, but it's the whole basket of our strategic initiatives that will help drive those cross-sells and upsells as we head towards our 2030 goals.”

“We're also seeing some increasing deal sizes by adding on things like AI and things like that.”

“a trust-based approach to leading the public sector's AI evolution, supporting our confidence in delivering on our strategic initiatives and 2030 targets.”