Investor Presentation

Tyler Technologies | March 2024

Statement Regarding Use of Non-GAAP Measures

Tyler Technologies has provided in this presentation financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler's ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenues (ARR) is calculated by annualizing the current quarter's recurring revenues from maintenance and subscriptions.

Tyler currently uses a non-GAAP tax rate of 22.0%.This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included in this presentation and our earnings press release.

2

Forward-Looking Statements

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as "believes," "expects," "anticipates," "foresees," "forecasts," "estimates," "plans," "intends," "continues," "may," "will," "should," "projects," "might," "could" or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements.

We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations.

These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed "Risk Factors" contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

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Tyler: A Winning Long-Term Growth Story

Accelerating Recurring

SaaS Revenue Growth

Massive Opportunity,

Revenue Growth

a Market Leader With Just

22%

27.7%

~5%

CAGR

CAGR

share*

since 2018

Since 2019

of fragmented $34B market

Uniquely positioned to deliver the most comprehensive mission-critical digital solutions in large

replacement market, leveraging largest public sector installed base

*Core state, local, and education addressable market

4

A T A G L A N C E

The Leader in Software Solutions to the Public Sector

1

83%

17%

98%

MARKET

RECURRING

FREE CASH FLOW

GROSS CLIENT

POSITION

REVENUES 2023

MARGIN

RETENTION

R E V E N U E B R E A K D O W N *

ERP /

COURTS &

PUBLIC

PLATFORM

APPRAISAL &

CIVIC

K-12

OTHER

FINANCIAL

JUSTICE

SAFETY

TECHNOLOGIES

TAX

SERVICES

SCHOOLS

2%

31%

14%

6%

31%

6%

3%

7%

*2023

5

A G E N D A

Tyler: A Winning Long-Term Growth Story

Record of

Market

2030 Vision &

Accelerating

Key Metrics &

Success

Leader

Four Growth Pillars

Cloud First Strategy

Annual Guidance

An impressive

A clear leader in

Recurring revenues,

Three dimensions of

Delivering superior FCF and

track record

attractive markets

improved margins &

cloud migration,

sustained value creation

expanded FCF

margin drivers

6

A G E N D A

Tyler: A Winning Long-Term Growth Story

Record of

Market

2030 Vision &

Accelerating

Key Metrics &

Success

Leader

Four Growth Pillars

Cloud First Strategy

Annual Guidance

An impressive

A clear leader in

Recurring revenue,

Three dimensions of

Delivering superior FCF and

track record

attractive markets

improved margins &

cloud migration,

sustained value creation

expanded FCF

margin drivers

7

Tyler is Entering a New Growth Era

1998 - 2017

2018 - 2022

2023+

Building Leadership

Position

Built a broad portfolio of software solutions

exclusively for local government

Expanding the Vision:

Strategic Investment

Connected Communities, Shift to cloud-first, expansion into State & Federal markets, Data & Insights, Citizen Experience, & Payments

New Era of Sustained Growth and

FCF Generation

2023 SaaS inflection point plus internal

alignment on other investments

Tyler's Path to Connected Communities

C O N N E C T E D C O M M U N I T I E S

L A U N C H

M I G R A TE T O

A D D D A T A

A D D L OW - C OD E

A D D

T H E V I S I ON

T H E C L O U D

& I N S I GH TS

P L A TFO R M

E X P E R TI S E

T H E F I R S T V I S I O N O F

Connected

Communities

Family of Products

BEST PRODUCTS FOR EACH AGENCY

Common Foundation

CONSISTENT FUNCTIONALITY

Shared Data

CLOUD -BASED DATA SHARING

Connected Apps & Personalized Portals

A CUSTOMIZED EXPERIENCE

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Disclaimer

Tyler Technologies Inc. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 18:45:06 UTC.