Tyler Technologies Charts Cloud-Based Growth Trajectory Through 2030
Tyler Technologies, a leading provider of software solutions for government and public sector organizations, presented its long-term growth plan at the Goldman Sachs Communacopia + Technology Conference 2026. The company's Chief Financial Officer, Brian Miller, outlined a vision that combines cloud migration, artificial intelligence, and transaction-funded software to drive stronger growth and wider margins through 2030.
According to Miller, Tyler is framing Cloud Living as the next major phase of its cloud transition, which will improve retention, facilitate cross-selling and upselling, and support margin expansion. The company expects 85% of on-premises customers to move to the cloud by 2030, up from prior expectations of 75% to 80%. Peak conversion activity is expected between 2027 and 2029.
Tyler reaffirmed its long-term organic recurring revenue growth target of 10% to 12% through 2030, citing several drivers supporting this view. The company's record bookings in the second quarter of 2024, combined with a larger cloud opportunity and early signs that AI tools can command premium pricing, are contributing factors. However, new logo growth remains the most exposed to broader market conditions.
The company also highlighted its use of transaction-funded software models, particularly in outdoor recreation and digital motor vehicle titling. This model allows customers to fund new systems through usage fees instead of seeking budget appropriations, making it attractive to state governments. Tyler's long relationships with 28 state governments have helped the company win deals without intense competitive bidding.
Miller noted that transaction-funded software carries software-like margins, which are much higher than traditional payments contracts. The model is expected to add 1 to 2 percentage points to margin expansion by 2030. Tyler's public-sector market is large but slow-moving, with customers often driven by ROI questions rather than funding considerations.