That's that. All right. Good afternoon, everyone. I'm David Chen with Morgan Stanley. Very pleased to have Brian Miller here, Chief Financial Officer of Tyler Technologies. Brian, welcome.
Thanks. Great to be here.
All right. why don't we just kinda get started with for those of you that are possibly maybe new to the Tyler story, Brian, just kinda give us the quick, you know, sense of the company and the products.
Sure. vertical software company focused exclusively on the public sector market.
Mm-hmm
We provide a wide range of software applications that manage essential mission-critical functions of government. Most of our focus is the local government level, so cities, counties, school districts. Local agencies make up about 70%-75% of our business. Another 20%-25% is at the state level and less than 5% federal, not much exposure there. We have by far the largest or broadest product portfolio in the industry, which is a very fragmented space historically, as well as the largest customer base. We've got about 45,000 systems installed across about 15,000 different jurisdictions. Revenues will be about $2.5 billion this year. Market cap is around $15 billion.
We also have a growing transactions business as well, so we do a lot of payment processing and transaction-based services, especially for state governments.
Mm-hmm
We're driving that down into our local government base through integration with our software products. Transactions are about a third of our business today.
I thought maybe just bring it to something that everyone can relate to. Just maybe pick one of your flagship customers that are using a wide variety of your products.
Mm-hmm
Across, you know, public, you know, admin, public safety, and just bring to light, you know, what that customer's actually using Tyler for across kind of the.
Yeah, sure.
Software categories.
Yeah, we have.
Yeah
S ome customers we call total Tyler customers.
Yeah
T hat have,
Absolutely. Yeah
Jumped on the bandwagon fully. One of our big growth drivers over time is our ability to cross-sell and up-sell. The average customer at Tyler has two or three products. When I say products, I mean like a suite of products or products in a suite, or an office like public safety or courts or property tax or public admin, ERP. The average customer has two or three of those products and could have 8 to 10 with most customers. Even within a suite of products, we have the opportunity to. They don't necessarily have everything. Some of them may have our court case management system, but not our jail system or our jury system or our probation system. There are a lot of different cross-sell opportunities.
A customer like Mobile, Alabama is a.
Yeah
R eally good mid-sized, kind of right down the middle-
Yeah
T otal Tyler customer. They have our ERP system, utility billings, public safety, municipal courts, licensing and permitting. Really almost all of their core functions are run on Tyler. They were also one of the early clients to move to the cloud, so they were one of the first clients to have all of those products in the cloud, so they've been a, kind of a flagship customer. Another bigger customer, where we're located in Plano, Texas, Collin County, just outside Dallas, started with our ERP system years ago, added our courts and justice system, our jail system, and has continued to expand their relationship with us. Still a really big cross-sell opportunity in front of us, and now we're laying payments on top of those software products.
Yeah. Bring to life, it might not be just intuitive if you're a typical software investor that looks at more horizontal categories, you know, Salesforce, you know, CRM, you know, sales, marketing service.
Yeah
T hat's very intuitive. Like, in your space, you know, I guess my favorite example is, like, if I get, you know, arrested by a cop.
Yeah
You know, he or she can then book me into the courtroom faster.
Yeah
S o just give me a sense for some of the natural linkages.
Yeah. there's.
Between your-
There's a lot of value created by having.
Yeah
more and more Tyler products.
Yeah
S old based on standalone features, functionality.
Yeah
References and reputation. Our presence in the market is a big thing. Governments are risk-averse. They don't like change. Take a lot of comfort in buying something that works really well.
Yeah
In peers. Also, problems also are really well-known 'cause they don't compete with each other. They talk to each other a lot. If you think one of the great examples is the integration of public safety and courts. Those are bought by different decision makers. The public safety system would generally be, say, the police chief, and the courts would be a courts administrator.
Yep.
They're obviously adjacent markets. We're the only company that has products in both of those suites. We compete with a whole bunch of companies in public safety, like Motorola, Central Square. In courts, we have a different set of competitors. Those products are tightly integrated. If you think about that whole, an incident or a process from start to finish, there's a 911 call that's dispatched through a Computer-Aided Dispatch system.
Yep.
The police officer responds. He arrests somebody. There's a records management system where all that data is captured and reports are created. He takes the guy to jail. The jail may not be in the city. It may be in the county, so you may be now crossing a jurisdiction, but they're booked into a jail through a jail system. The prosecutor files charges through a prosecutor system.
Mm-hmm.
There's a trial, so there's a court case management system. There's a jury system that manages the jury, and then say the person's put on probation, so there's a system for probation. Along the way, there's an electronic warrant system as well, and there's other things. If you think about that, I don't know what that was, like maybe eight.
Like 7 or 8 different things, yeah.
A lot of places that would be eight different systems from eight different vendors, maybe two of them are homegrown, some of them are integrated, some of them aren't. At a lot of those points along the way, they start all over with data entry. The biggest example is when a police officer, he's arrested somebody, captures a lot of information. Who's the guy? What did he do? That goes into an arrest report on the terminal in his car. He takes the guy to jail, and they start all over. Who's the guy? What did he do? It might take 45 minutes to book someone into jail.
If those are both systems from Tyler, even though one may be in the city and one is in the county, they're integrated out of the box, so all of that data kind of pre-populates or pre-books the guy. It takes 15 minutes instead of 45 minutes, you get 30 minutes more. The police officer back on the streets 30 minutes faster. Those are the kinds of advantages that you get from being able to buy more and more products from Tyler, and we are by far the largest provider of court systems. About 55% of the country uses our court case management system. As those jurisdictions need a public safety system, we should have a very strong advantage in being the vendor selected there.
That naturally, you know, begs the question on just the go-to-market. Just how do you know, take... A typical enterprise software company has a field salesperson-
Yeah.
Then product, you know, leads in different functions that. That's just a coordinated, you know, let's just one person sells to the entire organization. Like, how does that work with.
Yeah. That, that's a little different.
Yeah.
Within each of these functions, they're typically a different decision maker.
Yeah.
It's typically not a top-down decision. They may have IT sort of some standards or. Generally, it's not like a CIO making the decision.
Right.
It's not like a city manager making the decision.
Right
Across all this stuff. It's these functional leaders, some of whom may be elected, some may be.
Yeah
N ot. They each buy based on.
Yeah
O n features and functionality and reputation. They understand the advantage, and we show them the advantage. We have a different sales organization for each product.
For each product.
They work in a coordinated manner.
Yeah.
One of the things we've done more recently to help us drive more cross-sell, and create a more unified customer experience, because it becomes also, as they get more and more products from Tyler, it has become more complicated for them.
Yeah
B ecause we had different support organizations.
Yeah
P rofessional services team. We have a new client, chief client officer who's really driving a lot of standardization to create a unified client experience with the ultimate goal of being able to have much happier customers that wanna buy a lot more stuff from us.
Yeah.
Um, so-
That's how you make sure the left hand is talking to the right hand.
Exactly.
Yeah.
You know, one door to Tyler, those sorts of things.
Right.
We also have kind of account executives now, starting with the biggest clients, but where there's just one overall account executive who's responsible for helping them develop their long-term roadmaps across multiple products, but also just being their single point of contact, and then they bring in the appropriate resources also from Tyler.
Okay. you are actually rolling out that-
We actually are rolling out more of that.
Typical enterprise software model.
Yeah.
How big of a customer would that be to get an account executive?
Yeah. To have a dedicated one-
Yeah
O r to have one who has a handful, you know, probably the top 25%, 30% of our customer base.
Okay.
I mean, we have a lot of really small clients. The other thing we've done last year, we created a dedicated state sales organization. State is a newer market for us.
Yeah.
We established a big presence in the state government space through the acquisition of NIC about five years ago. One of the strategies around that was that these relationships we had with NIC on the transaction side, would give us a leg up in selling-.
All the rest of the products. Yeah.
S oftware to state governments where we didn't have relationships, didn't have sales organizations. We've more recently created a dedicated state organization that is sort of a bridge between those relationships we have and all the Tyler products that we could sell in there. There's, like, one primary account rep, and then they bring in the product specialist when they need to.
I see. Within any given state, you could have account execs for different jurisdictions.
Yeah. An overall state rep.
R epresentative. Yeah. I see.
Yeah.
That's interesting. All of that is relatively new for Tyler.
Yeah, a lot of it's evolving. I mean.
A couple years.
You know, as Tyler has.
Yeah. Yeah.
G rown, as we've done acquisitions and broadened our product portfolio and had more of those opportunities.
Yeah
The business model needs to evolve to make sure.
Yeah
W e're taking advantage of all those opportunities, and the structure needs to continue to evolve-
Yeah
As well as some of the back-end stuff.
Yeah. Big question would just be, just the terms of just the overall demand drivers.
Mm-hmm.
Just help us make sense of just you've got, you know, expectations of citizens. You've got, you know, ARPA.
Yeah
W hich was a big, big driver. It's obviously come down. You know, just like workforce pressure, just head.
Yeah.
Help us with the heads or tails of just, like, the drivers.
The basic demand driver, at the core for most of the demand is just they've got an old system that's reached end of life.
Sure. Yeah.
It's sort of.
They're on-.
A have to.
Paper and pencil or just-
Yeah, or just an old system.
Yeah.
Governments, again, because they don't have competition, because they're not profit motivated-
Mm-hmm
H ave historically... They don't like change. They've historically used software until it's like on its deathbed.
Right.
It's about, you know, it may be from a vendor who's no longer supporting it.
Yeah.
It maybe runs on old hardware.
Okay.
Like we're replacing systems that were purchased in 1999 because of Y2K. It could be an in-house system written in COBOL, you know, in the 1970s. For whatever reason, they've decided that now I really have to replace it, and that sort of creates this very stable, consistent demand that's never explosive, but it also never goes away. We still think that well over half of the systems that governments use fall in that category. It's a little bit hard to accelerate that demand or to create demand.
Yeah.
It's always there. The things that fit kind of on top of that are some of the things you mentioned. Workforce is a big problem. Governments, especially local governments, have aging workforces, people retiring, big percentage of their workforce retiring in the next few years. Struggling to hire people, to attract them to work for in the public sector, to pay market rates, especially on the IT side. That's one of the big drivers of our customers moving from on-prem to the cloud because they just struggle with.
Yeah.
Their systems in-house even if they want to. I think what we're seeing more recently, though, I mean, you could sort of associate it with DOGE. There was really a lot of focus, an increasing focus on government efficiency even before there was a DOGE.
Yeah.
Governments constantly have to do more with less. It's a common theme. It's nothing new. They never have enough resources to do everything they want to, but they've normally been insulated because they don't have competition. You don't really have a choice, where it may be cumbersome to go down to the DMV, and you don't like it, but there's nowhere else to go get your license plate.
Right.
Um, so-
Yeah.
They have typically, not, you know, used technology-
Had a real catalyst. Yeah.
To move forward.
Yeah.
Now with just a growing focus on efficiency as well as pressures from the public, I mean, the public does want better service and says, "Why can't I get the same experience I get as a consumer with the government?" There is a growing awareness and focus on efficiency, and ultimately, the way they get more efficient is using technology. It's a lot of times their processes are inefficient because they're really driven by the technology limitations. They have an old system that doesn't provide for online access, so there's no ability to provide citizen self-service. They may be very paper-based. You know, we replaced a lot of court systems that were entirely paper-based with, you know...
Cook County, Illinois, had 10 people whose only job was to push shopping carts of case files to the courtroom every day and stack manila folders on the judges' benches. That system now is entirely digital. There is no paper in the courts. Documents are filed electronically. The judge has an electronic bench, and there's massive amounts of storage. It's kind of a green story because all that paper isn't used anymore. Those are examples. I think what we're starting to see is... and there's sort of some incremental demand or some pull forward of demand.
It's not, it's not a flood of anything today, but there is some incremental demand around, people saying, "Yeah, if I, if I make the effort now, spend the money now, I actually do get a return that is valuable to me.
Yeah. Makes sense. All right. Gotta hit the big topic. I mean, kind of related to what you just said, you know, that we have Sam Altman tomorrow. We had Anthropic yesterday. You know, what's it like at a local police department or local city office where they're seeing this AI craziness? Are they saying, "Hey, I'm gonna go try to vibe coding my own technology"? Or are they saying, "I don't get any of that"? Or are they saying, "Hey, maybe I need to get some of the benefit from that through, you know, some of the vendors out there"?
Closer to the latter. Governments are never, rarely, I'd say, wanna be the first with anything. There are a few governments that are more progressive than others. Generally, government is not the first to adopt any new technology, and that's certainly been evidenced by the very slow pace at which they've moved to the cloud.
Mm-hmm.
AI is I think right now the same. They're very curious about it, and they obviously hear a lot about AI, just like all of us do. They don't want to be the first to do it. They're certainly not gonna do it themselves with vibe coding or something. They really are interested in how AI can solve real-world, real practical problems that cause them, you know, tax and toil all day long. They're kind of, pretty simple sorts of things that are the kinds of use cases they're interested in. That's where we're prioritizing our investments.
Yeah.
We have some products already that some of them have been acquired, that are discrete products that have AI at their core. We have a product called Priority-Based Budgeting, which uses AI to help a government align their budget with their priorities and basically find places where they can reallocate funds to higher priority topics.
Yep.
We have a product called Document Automation that came from an acquisition of a partner of ours in the court space that automates data entry in the court systems. Instead of a clerk having to look at a lawsuit that came in and create a case in the system and extract data, that can be done with AI to identify all the data elements, pre-populate or populate-.
Right.
The case files so they need fewer clerks. We sold that to a large county in Florida. It was paying us about $750,000 a year in maintenance for the court system. They're paying us $950,000 a year for the Document Automation piece, but they've saved more than $2 million a year in labor costs.
Yeah.
Clear value, something they're willing to pay for and that they can, you know, solve the problem that they have. They don't have enough clerks. One of the things you mentioned the report writing. Police officers spend a lot of their day writing reports, two or three hours a day on average. Integrating AI capabilities to help them assist with that. I think what governments are looking for and what Tyler can provide is that, you know, it's not part of current buying processes. You know, we're not seeing it in RFPs or current requirements. What we're bringing to them are things that solve those kind of real problems.
The things that give us an advantage there and why we believe they'll continue to wanna buy those from us is the domain expertise. Each of these things like report writing in the public safety system, they could use ChatGPT, I guess, a police officer to write a report.
Yeah.
This has to be right. It has to be integrated with the whole law enforcement process. It has to be ready, you know...
Yeah
T o go into a criminal case or whatever. There's a whole layer of domain expertise around how that's embedded in the product. We have another product. One of our early development efforts is around application reviews. Another kind of simple subject, we're a big provider of licensing and permitting systems, like building permits. A lot of places, there's a really big backlog to get a building permit. It might take six months because there's just not enough clerks to review those applications. AI can review that application in minutes and replace the work that a lot of clerks do. It needs to be. We've got the domain expertise because we built the underlying system of record, which is a really pretty complex workflow around licensing and permitting.
Customers trust us to have the domain expertise and to integrate it with those products. We have the relationships. We've got decades-long relationships-
Yeah
W ith a lot of these customers, so they have that trust factor that they don't have with a startup or, you know, a company that doesn't have a lot of experience in the public sector. The third thing is really around data. We have not just the data from that customer system and their transactions, but we've got the data from hundreds of licensing and permitting customers and thousands or millions of building permit applications over time, that can help train those models and make them more effective. That combination is something that others can't match and it's what governments are looking for.
Got it.
Um, so-
In many cases, you are actually the system of record.
Yeah. Yeah.
Or-
we've provided that under that court system, or we've provided... you know...
Yeah
J ust like someone else could write an application, could use AI to do data entry.
Yeah.
We fully understand how that court process works and what court documents look like.
Yeah
and they get it from us. They don't have to have another vendor and, as requirements change or processes change.
Yeah
Y ou know, it'll stay up to date.
Yeah. The last piece would just be the idea of a not a nationwide network effect, but there are some really interesting, you know, localized network effects.
Yeah. Around data, there are some, that's another one of the advantages you can get from working with Tyler. Not necessarily completely AI-driven, but we have the ability to create networks or regional networks or in some cases, potentially national networks, using data in Tyler systems. One good example is, and we talk about a kind of a concept of Connected Communities, so things that don't necessarily stop at a city limit or a border. In the court space, again, you know, there are outstanding warrants for people that are wanted for something. Those are typically... Although TV might have you believe that there's a big nationwide database of all of these kinds of things, there's really not.
Those warrants are typically at a county level and contained in the county court system. In North Texas, where we're located, there are probably 10 or 12 counties in a region. A police officer could have someone stopped in Collin County. Literally across the street is Dallas County, and they could be wanted for something there and have a warrant out for them, but that officer wouldn't see that.
Wouldn't see it. Yeah.
Where those counties are all Tyler customers, they're all in their own system, in their own instance of the software. We have the ability to publish different data elements that are important to a private cloud and have that shared amongst them. They all have access to outstanding warrants for anyone in that group of counties. We're able to provide that access to that data through our presence there without someone trying to build, you know, individual interfaces across these lines.
Right. Excellent. One of the key, you know, strategic focus areas for the company over the last several years has been the SaaS migration.
Mm-hmm.
Just give us a sense for just where you are in that journey and how's it going?
Yeah. It's been a long process.
Yeah
Again, very representative of government. Originally, long ago, we were, you know, completely an on-prem license model. For a long time, we had a hybrid model. We offered a cloud, actually a private cloud or a hosted model in the Tyler data centers, paid for with a subscription, but really the same software just hosted at a Tyler data center. We were cloud neutral or cloud agnostic. We didn't care how people bought it. Then really going back, I guess 2019 was kind of the tipping point when we said we're cloud first. We're gonna stop selling on-prem licenses for most products. We're going to do what we need to do to encourage customers to, on-prem customers to move to the cloud more rapidly.
Yeah. Is it carrot, stick?
Today it's more carrots. That process of customers moving has been slow but has accelerated in recent years.
Yeah.
Still, if you look from a revenue perspective, if you put all of our revenue, our maintenance revenue on a cloud equivalent, I think we're 47% on-prem and 53% cloud. We still have a ways to go. We expect that.
Just roughly 50 people or about. Just give us a sense where just maybe a few years ago, where was that?
Oh. When we, in, I guess 2019 when we made the shift, it was probably 25%-
Okay
C loud, maybe even less than that, maybe 20%.
Got it.
We've said that by 2030, We had an investor day two years ago, set a number of targets for 2030. Some minimum targets for 2025. We said by 2030 we expected that of that base that was on-prem at that time, that 80%-85% of that would convert by 2030, and we're well on track for that.
Still on track.
The peak is really gonna be, if you think about bell curve, kind of the top of the curve is gonna be in that 2027, 2028, 2029 timeframe, somewhere in there. The, the on-prem base is still more heavily weighted towards large customers, not surprisingly. It takes them longer.
Sure. Yeah.
Y ou know, more, more things to manage. We still have the impact of a lot of large customers to go. Carrots and sticks, today, I think the biggest carrot we're using, obviously, they know that we don't sell on-prem anymore. I think with virtually every customer, it's not a matter of why they should move to the cloud or are they going to move. I think we'd have almost no customers that say, "I have no plans to ever move." That was different, like three years ago...
Yeah
C onvincing them why. It's more about when, how, you know, what the process is and how it fits into their priorities. We have increasingly told customers that new features will only be available in the cloud-
Right
F or our court system. For example, last year at the beginning of 25, we told customers that the 25 release was the last one for on-prem customers that would have any new features. Further down the road, maintenance pricing can be used to create more of an economic incentive, and we haven't really done that at this point.
Mm-hmm.
There are some other gating items like version consolidation. We have historically had a lot of clients that weren't on the current version of the software. We supported multiple versions. We've been putting a lot of effort into sunsetting older versions and getting customers current so that they're in a position to move to the.
Yeah
T he one cloud version. There's a number of things. We couldn't move everybody next quarter if they wanted to, but the trajectory's been strong. The Q4 was both in terms of the number of flips of on-prem customers and the dollar value was by far the biggest quarter we've ever had, and we're still a ways away from the peak.
Yeah.
Typically getting a 1.7x-1.8x uplift on a like for like basis as customers move from maintenance to SaaS. Starting to see more examples of upsells and add-on sales expansion as they move to the cloud. They might move a Tyler court system to the cloud, but have other products that from another vendor like Jails maybe.
Right
Doesn't have a cloud option.
Mm-hmm.
That gives us an opportunity to bring those in, bring those to the cloud through Tyler.
Great. If anyone in the audience has any questions, let me know. You on the backend side, you made a big switch from, you know, your own data centers to AWS. You know, just give us a sense for where you are on that evolution.
We're done with it. It was a multi-year process. We had two major data centers and a few satellite ones, but two main ones where our clients were hosted. Back in 2023, we said that by the end of 2025, we would be out of those data centers. Big effort. We have a really strong partnership with AWS-
Yeah
T hat we renewed about a year ago. Really good relationship with them.
On a gross margin basis, I know initially, you know, it was a slight hit just because you have to actually maintain both systems. Are you through that and-?
Yeah. We've had what we call bubble costs or duplicate costs because-
Yeah
There are a lot of fixed costs around running the data center.
Yeah
They don't go away until you actually get out of it.
Right.
You're also spending money with AWS. We're through a lot of that. There are some of those really that run through the end of this year. We had some tooling and some other some VMware costs that continue through this year that kind of help facilitate that move. All of the customers are now out of our data centers.
Yeah
I think we'll see a little bit more margin uplift next year, as we get the last of those bubble costs drop off.
All right. Any questions for Brian? Oh, there's one.
You're 100% U.S., right? Any ambitions to go internationally?
Sure. The question's about international expansion and do we have plans there. Yeah, we're about 98% domestic and the 2% is mostly Canada. We have a few, you know, court system in Australia and a few cats and dogs, but mostly domestic. I think that's where the focus will primarily stay for the foreseeable future. There's still an awful lot of runway in the U.S. The international business has been sort of targeted to opportunities that are really good fits, mostly former British Commonwealth countries that have a similar justice system, or in the case of Canada, we have a number of property tax systems in several provinces there. Their property taxation processes very similar to ours. Australia has a very similar justice system, so we have a court system there.
Really our focus in the foreseeable future is pretty much domestic. Having said that, we have an acquisition that we announced about a month or so ago that is currently pending HSR approval of a company that works in the courtroom around court reporting and digital court transcription. They're an Australian company. They have some international operations in a very narrow niche. Probably not something that we're really looking to expand a lot in the near term. We just have a lot of runway left in the U.S..
Well, thanks for being here. Are there any overlaps with Axon's file offerings to
The question's about overlap with Axon. We do compete in the public sector space, public safety space. In public safety, there's kind of two major, on the software side, two major areas: Computer-Aided Dispatch, which is the 911 system, and Records management, which is kind of everything else. There's some ancillary areas there. We have the full suite of public safety applications. We're probably one of two or three leaders in that space. We compete a lot with Motorola. I'd say there's a lot of opportunities where Tyler and Motorola would be the two finalists. It's probably the most common thing you see. Central Square has a presence in the space, Intergraph.
Axon has been sort of moving into the software side to, I guess, leverage their body cam and TASER business, the relationships they already have. They are in the Records management side, not in the Computer-Aided Dispatch side. I'd say that compared to our offering, it's, I'd say, not as deep in terms of functionality and not as broad in terms of what they offer. Motorola leverages their hardware presence with software. We leverage our presence in courts and other areas of public sector to drive public safety business. Public safety has been an area that has really been growing nicely for us. We've been, I think, at the forefront of leading that space to the cloud.
We've also seen a lot of success in terms of moving up into larger opportunities. We've got, I think, five or six state police agencies that all of which we've signed in the last couple of years. That's a really nice growth area for us, although it's a very competitive market.
Brian, can you speak about, like, the future importance of the payments business and how, like
Around the payments business and transactions. Payments is almost a third of our business today, or transactions. We have a lot of different flavors of that. One of the big things we're doing, we have a lot of software systems that have payments embedded in them, utility billing, licensing and permitting, property taxes, courts, traffic tickets. Now, we have, through the NIC acquisition, a very robust payment platform that we've integrated to our software products to kinda create an end-to-end payments integrated with the system of record that produced the bill. That is a more valuable system to the customer because it automates reconciliations, provides better data, better analytics, better reporting. They're willing to pay more for that than a commoditized payment.
So we're seeing a lot of growth around that, improving our payments margins as a result of that. It just gives us a nice, you know, another layer of recurring revenues on top of the core software revenues. We are seeing some instances where we're selling software under a transaction model, so providing, say, an outdoor recreation system like we did for the California State Parks. Rather than charging a SaaS fee, we're getting paid by convenience fees that are levied on a campground reservation or a kayak rental, so it's self-funded. The state doesn't have to budget SaaS fees. It's paid by user fees. We're in a position that we're able to do that.
Right. That was one of your big deals last year, right?
That's actually the biggest software deal Tyler's ever done, even though it's not in software.
Which state again?
California.
That was California. That's right.
The California State Parks is about $200 million deal over eight years, but it didn't show up in SaaS bookings or SaaS revenues. It's showing up in transactions.
That's great. One quick one.
Quick segue. Guys, again, in the past, talked briefly about whether the current environment. Would you like to spend more? Any changes?
We'll see. Obviously, multiples have changed. Ours has changed quite a bit. Most of the companies we look at acquiring are private companies. A lot of them are small, and valuation's always a big factor. It's been somewhat frustrating to us over the last few years that especially PE firms have been paying multiples that often we thought were not reasonable. We'll see how this all resets. I think it's a little bit early, especially around some of the PE-owned assets, the bigger things. We do think it'll be an opportunity to acquire some things at more reasonable valuations.
All right. Brian, thank you very much.
Great. Thank you.