Tyler Technologies Sees Path to Stronger Growth Through Cloud Migration
Tyler Technologies presented its long-term plan at the Goldman Sachs Communacopia + Technology Conference 2026, outlining its vision for growth through cloud migration and artificial intelligence. The company's Chief Financial Officer, Brian Miller, stated that Tyler sees a path to stronger growth and wider margins through 2030, despite some revenue trends being held back by contract runoff and new deal rollouts.
Tyler reported record bookings in the second quarter of 2024, with demand remaining strong. However, the company's annual recurring revenue (ARR) growth is currently running at about 8%, partly due to the planned runoff of the Texas payments contract. Excluding this headwind, underlying ARR growth was approximately 11% last quarter.
The company's long-term case rests on Cloud Living, the next stage of its cloud transition, which is expected to improve retention, client experience, and sales efficiency. Tyler now expects 85% of on-premises customers to move to the cloud by 2030, up from prior expectations of 75% to 80%. The company has started formal cloud migration planning meetings with all on-prem customers.
Tyler reaffirmed its long-term organic recurring revenue growth target of 10% to 12% through 2030. Miller stated that the company is highly confident in several drivers supporting this outlook, including pricing optimization, new customer wins, expansion within existing accounts, cloud migrations with revenue uplift, and growth in transaction revenue.