TYLER TECHNOLOGIES INC, 10-K filed on 2/19/2025
Annual Report
v3.25.0.1
Cover - USD ($)
 12 Months Ended
Dec. 31, 2024
Feb. 18, 2025
Jun. 30, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2024    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 1-10485    
Entity Registrant Name TYLER TECHNOLOGIES, INC.    
Entity Incorporation, State DE    
Entity Tax Identification Number 75-2303920    
Entity Address, Street 5101 Tennyson Parkway    
Entity Address, City Plano,    
Entity Address, State TX    
Entity Address, Postal Zip Code 75024    
City Area Code 972    
Local Phone Number 713-3700    
Title of 12(b) Security COMMON STOCK, $0.01 PAR VALUE    
Trading Symbol TYL    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 21,332,091,018
Entity Common Stock, Shares Outstanding   43,013,800  
Documents Incorporated by Reference Certain information required by Part III of this annual report is incorporated by reference from the registrant’s definitive proxy statement for its annual meeting of stockholders to be held on May 6, 2025.    
Amendment Flag false    
Document Fiscal Year Focus 2024    
Document Fiscal Period Focus FY    
Entity Central Index Key 0000860731    
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Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Name Ernst & Young LLP
Auditor Firm ID 42
Auditor Location Dallas, Texas
v3.25.0.1
Consolidated Statements of Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenues:      
Total revenues $ 2,137,803 $ 1,951,751 $ 1,850,204
Cost of revenues:      
Total cost of revenues 1,202,042 1,090,652 1,066,341
Gross profit 935,761 861,099 783,863
Sales and marketing expense 157,731 149,770 135,743
General and administrative expense 300,938 308,575 267,324
Research and development expense 117,939 109,585 105,184
Amortization of other intangibles 59,627 74,632 61,363
Operating income 299,526 218,537 214,249
Interest expense (5,931) (23,629) (28,379)
Other income, net 14,572 3,328 1,723
Income before income taxes 308,167 198,236 187,593
Income tax provision 45,141 32,317 23,353
Net income $ 263,026 $ 165,919 $ 164,240
Earnings per common share:      
Basic (in dollars per share) $ 6.17 $ 3.95 $ 3.95
Diluted (in dollars per share) $ 6.05 $ 3.88 $ 3.87
Subscriptions      
Revenues:      
Total revenues $ 1,342,931 $ 1,159,512 $ 1,012,304
Maintenance      
Revenues:      
Total revenues 463,132 466,661 468,455
Professional services      
Revenues:      
Total revenues 263,991 249,976 277,625
Software licenses and royalties      
Revenues:      
Total revenues 26,357 38,096 59,406
Cost of revenues:      
Total cost of revenues 6,277 10,821 6,083
Hardware and other      
Revenues:      
Total revenues 41,392 37,506 32,414
Cost of revenues:      
Total cost of revenues 27,217 29,923 23,674
Subscriptions, maintenance and professional services      
Cost of revenues:      
Total cost of revenues 1,112,778 1,001,221 977,885
Amortization of software development      
Cost of revenues:      
Total cost of revenues 18,806 12,625 6,507
Amortization of acquired software      
Cost of revenues:      
Total cost of revenues $ 36,964 $ 36,062 $ 52,192
v3.25.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 263,026 $ 165,919 $ 164,240
Securities available-for-sale and transferred securities:      
Change in net unrealized holding gains (losses) on available-for-sale securities during the period 151 518 (850)
Reclassification adjustment of unrealized losses on securities transferred from held-to-maturity 0 0 (27)
Reclassification adjustment for net loss on sale of available-for-sale securities, included in net income 18 0 79
Other comprehensive income (loss), net of tax 169 518 (798)
Comprehensive income $ 263,195 $ 166,437 $ 163,442
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 744,721 $ 165,493
Accounts receivable (less allowance for losses and sales adjustments of $17,325 in 2024 and $22,829 in 2023) 587,634 619,704
Short-term investments 23,257 10,385
Prepaid expenses 65,135 54,700
Income tax receivable 11,975 0
Other current assets 8,057 10,303
Total current assets 1,440,779 860,585
Accounts receivable, long-term 7,153 8,988
Operating lease right-of-use assets 31,433 39,039
Property and equipment, net 163,775 169,720
Other assets:    
Software development costs, net 76,117 67,124
Goodwill 2,531,653 2,532,109
Other intangibles, net 831,966 928,870
Non-current investments 10,758 7,046
Other non-current assets 86,381 63,182
Total assets 5,180,015 4,676,663
Current liabilities:    
Accounts payable 156,817 146,339
Accrued liabilities 197,709 158,558
Operating lease liabilities 9,643 11,060
Current income tax payable 0 2,466
Deferred revenue 701,438 632,914
Current portion of term loans 0 49,801
Total current liabilities 1,065,607 1,001,138
Convertible senior notes due 2026, net 597,934 596,206
Deferred revenue, long-term 22,376 291
Deferred income taxes 47,503 78,590
Operating lease liabilities, long-term 30,791 39,822
Other long-term liabilities 27,382 22,621
Total liabilities 1,791,593 1,738,668
Commitments and contingencies 0 0
Shareholders' equity:    
Preferred stock, $10.00 par value; 1,000,000 shares authorized; none issued 0 0
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares issued in 2024 and 2023 481 481
Additional paid-in capital 1,539,301 1,354,787
Accumulated other comprehensive loss, net of tax (157) (326)
Retained earnings 1,866,799 1,603,773
Treasury stock, at cost; 5,184,092 and 5,858,476 shares in 2024 and 2023, respectively (18,002) (20,720)
Total shareholders' equity 3,388,422 2,937,995
Total liabilities and shareholders' equity $ 5,180,015 $ 4,676,663
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 17,325 $ 22,829
Preferred stock, par value (in dollars per share) $ 10.00 $ 10.00
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares issued (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 48,147,969 48,147,969
Treasury stock (in shares) 5,184,092 5,858,476
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income $ 263,026 $ 165,919 $ 164,240
Adjustments to reconcile net income to cash provided by operating activities:      
Depreciation and amortization 143,437 154,079 159,072
Losses from sale of investments 24 1 45
Share-based compensation expense 122,813 108,338 102,985
Provision (reductions in reserve) for losses and sales adjustments - accounts receivable (5,504) 8,233 2,781
Amortization of operating lease right-of-use assets 8,932 16,688 12,969
Deferred income tax benefit (30,663) (73,704) (87,192)
Other 207 475 0
Changes in operating assets and liabilities, exclusive of effects of acquired companies:      
Accounts receivable 28,795 (39,878) (51,410)
Income tax (payable) receivable (14,441) (41,201) 61,940
Prepaid expenses and other current assets (29,775) (19,668) 910
Accounts payable 10,509 41,485 (17,537)
Operating lease liabilities (11,650) (11,533) (12,396)
Accrued liabilities 43,387 13,069 (24,344)
Deferred revenue 90,775 58,513 59,460
Other long-term liabilities 4,761 (376) 9,932
Net cash provided by operating activities 624,633 380,440 381,455
Cash flows from investing activities:      
Additions to property and equipment (20,535) (20,519) (22,529)
Purchase of marketable security investments (32,448) (10,617) (29,935)
Proceeds and maturities from marketable security investments 15,994 49,412 71,034
Investment in software development (29,401) (32,490) (27,622)
Cost of acquisitions, net of cash acquired (1,395) (62,759) (163,921)
Other 173 13 443
Net cash used by investing activities (67,612) (76,960) (172,530)
Cash flows from financing activities:      
Payment on term loans (50,000) (345,000) (360,000)
Payment of debt issuance costs (2,637) 0 0
Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award settlement 57,213 16,960 (890)
Contributions from employee stock purchase plan 17,631 16,196 16,651
Net cash provided (used) by financing activities 22,207 (311,844) (344,239)
Net increase (decrease) in cash and cash equivalents 579,228 (8,364) (135,314)
Cash and cash equivalents at beginning of period 165,493 173,857 309,171
Cash and cash equivalents at end of period 744,721 165,493 173,857
Supplemental cash flow information:      
Cash paid for interest 3,095 19,154 21,256
Cash paid for income taxes, net 84,204 142,820 38,490
Non-cash investing and financing activities:      
Non-cash additions to property and equipment 254 3,123 169
Issuance of shares for acquisitions $ 0 $ 5,675 $ 18,169
v3.25.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Treasury Stock
Balance at Dec. 31, 2021 $ 2,324,032 $ 481 $ 1,075,650 $ (46) $ 1,273,614 $ (25,667)
Balance (in shares) at Dec. 31, 2021   48,148,000        
Balance (in shares) at Dec. 31, 2021           (6,833,000)
Increase (Decrease) in Stockholders' Equity            
Net income 164,240       164,240  
Other comprehensive (loss) income, net of tax (798)     (798)    
Exercise of stock options and vesting of restricted stock units 26,329   (3,218)     $ 29,547
Exercise of stock options and vesting of restricted stock units (in shares)           433,000
Employee taxes paid for withheld shares upon equity award settlement (27,219)         $ (27,219)
Employee taxes paid for withheld shares upon equity award settlement (in shares)           (70,000)
Stock compensation 102,985   102,985      
Issuance of shares pursuant to employee stock purchase plan 16,651   16,365     $ 286
Issuance of shares pursuant to employee stock purchase plan (in shares)           49,000
Issuance of shares for acquisitions 18,169   17,943     $ 226
Issuance of shares for acquisitions (in shares)           56,000
Balance at Dec. 31, 2022 2,624,389 $ 481 1,209,725 (844) 1,437,854 $ (22,827)
Balance (in shares) at Dec. 31, 2022   48,148,000        
Balance (in shares) at Dec. 31, 2022           (6,365,000)
Increase (Decrease) in Stockholders' Equity            
Net income 165,919       165,919  
Other comprehensive (loss) income, net of tax 518     518    
Exercise of stock options and vesting of restricted stock units 44,697   15,122     $ 29,575
Exercise of stock options and vesting of restricted stock units (in shares)           514,000
Employee taxes paid for withheld shares upon equity award settlement (27,737)         $ (27,737)
Employee taxes paid for withheld shares upon equity award settlement (in shares)           (74,000)
Stock compensation 108,338   108,338      
Issuance of shares pursuant to employee stock purchase plan 16,196   15,988     $ 208
Issuance of shares pursuant to employee stock purchase plan (in shares)           52,000
Issuance of shares for acquisitions 5,675   5,614     $ 61
Issuance of shares for acquisitions (in shares)           15,000
Balance at Dec. 31, 2023 $ 2,937,995 $ 481 1,354,787 (326) 1,603,773 $ (20,720)
Balance (in shares) at Dec. 31, 2023   48,148,000        
Balance (in shares) at Dec. 31, 2023 (5,858,476)         (5,858,000)
Increase (Decrease) in Stockholders' Equity            
Net income $ 263,026       263,026  
Other comprehensive (loss) income, net of tax 169     169    
Exercise of stock options and vesting of restricted stock units 97,474   41,926     $ 55,548
Exercise of stock options and vesting of restricted stock units (in shares)           739,000
Employee taxes paid for withheld shares upon equity award settlement (40,261)         $ (40,261)
Employee taxes paid for withheld shares upon equity award settlement (in shares)           (78,000)
Stock compensation 122,813   122,813      
Issuance of shares pursuant to employee stock purchase plan 17,631   17,456     $ 175
Issuance of shares pursuant to employee stock purchase plan (in shares)           43,000
Reimbursement of shares from escrow (10,425)   2,319     $ (12,744)
Reimbursement of shares from escrow (in shares)           (30,000)
Balance at Dec. 31, 2024 $ 3,388,422 $ 481 $ 1,539,301 $ (157) $ 1,866,799 $ (18,002)
Balance (in shares) at Dec. 31, 2024   48,148,000        
Balance (in shares) at Dec. 31, 2024 (5,184,092)         (5,184,000)
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DESCRIPTION OF BUSINESS
We provide integrated software systems and related services for the public sector. We develop and market a broad line of software solutions and services to address the information technology (“IT”) needs primarily of cities, counties, states, schools, federal agencies, and other government entities. We provide subscription-based services such as software as a service (“SaaS”), transaction-based fees primarily related to digital government services and online payment processing, and electronic document filing solutions (“e-filing”), which simplify the filing and management of court related documents. In addition, we provide professional IT services, including software and hardware installation, data conversion, training, and for certain clients, product modifications, along with continuing maintenance and support for clients using our solutions. Additionally, we provide property appraisal outsourcing services for taxing jurisdictions.
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include our parent company and 62 subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). During the twelve months ended December 31, 2024, 2023 and 2022, we had approximately $169,000 and $518,000 other comprehensive income, net of taxes, and $798,000 of other comprehensive loss, net of tax, from our available-for-sale investment holdings, respectively.
USE OF ESTIMATES
The preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations and loss contingencies; the recoverability of goodwill and other intangible assets and estimated useful lives of intangible assets; and determining the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from estimates.
CASH AND CASH EQUIVALENTS
Cash in excess of that necessary for operating requirements is invested in short-term, highly liquid, income-producing investments. Investments with original maturities of three months or less are classified as cash and cash equivalents, which primarily consist of cash on deposit with several banks and money market funds. Cash and cash equivalents are stated at cost, which approximates market value.
REVENUE RECOGNITION
Nature of Products and Service
We account for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. We earn the majority of our revenues from subscription-based services and post-contract client support (“PCS” or “maintenance”). Other sources of revenue are professional services, software licenses and royalties, and hardware and other. Revenue is recognized upon transfer of control of promised products or services to clients in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps:
•Identification of the contract, or contracts, with a client
•Identification of the performance obligations in the contract
•Determination of the transaction price
•Allocation of the transaction price to the performance obligations in the contract
•Recognition of revenue when, or as, we satisfy a performance obligation
Our software arrangements with clients contain multiple performance obligations that range from software licenses, installation, training, consulting, software modification and customization to meet specific client needs; hosting; and PCS. For these contracts, we account for individual performance obligations separately when they are distinct. We evaluate whether separate performance obligations can be distinct or should be accounted for as one performance obligation. Arrangements that include professional services, such as training or installation, are evaluated to determine whether those services are highly interdependent or interrelated to the product’s functionality. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, client demographics, and the number and types of users within our contracts.
For arrangements that involve significant production, modification, or customization of the software, or where professional services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the client over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent.
Revenue is recognized net of allowances for losses and sales adjustments and any taxes collected from clients, which are subsequently remitted to governmental authorities.
Subscription-Based Services
Subscription-based services consist primarily of revenues derived from SaaS arrangements and transaction-based fees. For SaaS arrangements, we evaluate whether the client has the contractual right to take possession of our software at any time during the hosting period without significant penalty and whether the client can feasibly maintain the software on the client’s hardware or enter into another arrangement with a third party to host the software. We recognize SaaS services ratably over the term of the arrangement, which range from one to 10 years, but are typically for periods of generally one to three years. For professional services associated with certain SaaS arrangements, we have concluded that the services are not distinct, and we recognize the revenue ratably over the remaining contractual period once we have provided the client access to the software.
Transaction-based fees primarily relate to digital government services and online payment services, which are sometimes offered with the assistance of third-party vendors. When we are the principal in a transaction, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the client) and record the net amount as revenue.
For transaction-based revenues from digital government services and online payments, we have the right to charge the client an amount that directly corresponds with the value to the client of our performance to date. Therefore, we recognize revenues for these services over time based on the amount billable to the client. In some cases, we are paid on a fixed fee basis and recognize the revenue ratably over the contractual period. Typically, the structure of our arrangements does not give rise to variable consideration. However, in those instances whereby variable consideration exists, we include in our estimates, additional revenues for variable consideration when we believe we have an enforceable right, the amount can be estimated reliably and its realization is probable.
Costs of performing services under subscription-based arrangements are expensed as incurred, except for certain direct and incremental contract origination associated with SaaS arrangements. Such direct and incremental costs are capitalized and amortized ratably over the period of benefit.
Post-Contract Client Support (Maintenance)
Our clients generally enter into PCS agreements when they purchase our software licenses. PCS includes telephone support, bug fixes, and rights to upgrades on a when-and-if available basis. PCS is considered distinct when purchased with our software licenses. Our PCS agreements are typically renewable annually. PCS is recognized over time on a straight-line basis over the period the PCS is provided. All significant costs and expenses associated with PCS are expensed as incurred.
Professional Services
When professional services are distinct, the fee allocable to the service element is recognized over the time we perform the services and is billed on a time and material or milestone basis. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met.
Software Licenses and Royalties
Many of our software arrangements involve “off-the-shelf” software. We recognize the revenue allocable to “off-the-shelf” software licenses and specified upgrades at a point in time when control of the software license transfers to the client, unless the software is not considered distinct. We consider “off-the-shelf” software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the client for the client’s purpose upon installation, and remaining services such as training are not considered highly interdependent or interrelated to the product's functionality. For arrangements that involve significant production, modification or customization of the software, or where professional services are otherwise not considered distinct, we recognize revenue over time by measuring progress-to-completion.
Software license fees are billed in accordance with the contract terms. Typically, a majority of the fee is due when access to the software license is made available to the client and the remainder of the fee is due over a passage of time stipulated by the contract.
We recognize royalty revenue when the sale occurs under the terms of our third-party royalty arrangements. Currently, our third-party royalties are recognized on an estimated basis and adjusted if needed, when we receive notice of amounts we are entitled to receive. We typically receive notice of royalty revenue we are entitled to and amounts are billed on a quarterly basis in the quarter immediately following the royalty reporting period, and adjustments have not been significant.
Computer Hardware Equipment
Revenue allocable to computer hardware equipment is recognized at a point in time when control of the equipment is transferred to the client.
Refer to Note 3 - “Disaggregation of Revenue” for further information, including the economic factors that affect the nature, amount, and uncertainty of revenues and cash flows of our various revenue categories.
Contract Balances 
Accounts receivable and allowance for losses and sales adjustments
Timing of revenue recognition may differ from the timing of invoicing to clients. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when invoicing occurs prior to revenue recognition. For multi-year agreements, we generally invoice clients annually at the beginning of each annual coverage period.
In connection with certain professional services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) professional services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (2) software revenue for which we have recognized revenue at the point in time when the software is made available to the client but the billing has not yet been submitted to the client; (3) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5% and 15% retention) until final and satisfactory project completion is achieved; and (4) in a limited number of cases, extended payment terms, which may be granted to clients with whom we generally have a long-term relationship and favorable collection history.
Accounts receivable is as follows:
 Years ended December 31,
 20242023
Accounts receivable - current
$587,634 $619,704 
Accounts receivable - long term
7,153 8,988 
Total accounts receivable
$594,787 $628,692 
Total accounts receivable, including total current and long-term accounts receivable, net of allowance for losses and sales adjustments, was $594.8 million and $628.7 million, at December 31, 2024, and December 31, 2023, respectively. We have recorded unbilled receivables of $115.6 million and $119.2 million at December 31, 2024, and December 31, 2023, respectively. Unbilled receivables expected to be collected within one year have been included with the current portion of accounts receivable in the accompanying consolidated balance sheets. Unbilled receivables and retention receivables expected to be collected past one year have been included with long-term portion of accounts receivable in the accompanying consolidated balance sheets. Included in unbilled receivables are retention receivables of $11.4 million and $9.8 million at December 31, 2024, and December 31, 2023, respectively, which become payable upon the completion of the contract or completion of our fieldwork and formal hearings.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide clients with simplified and predictable ways of purchasing our products and services, not to receive financing from our clients or to provide clients with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises term licenses that are invoiced annually with revenue recognized upfront.
We maintain allowances for losses and sales adjustments, which losses are recorded against revenue at the time the loss is incurred. Because most of our clients are domestic governmental entities, we rarely incur a credit loss resulting from the inability of a client to make required payments. Consequently, we have not recorded a reserve for credit losses. Events or changes in circumstances that indicate the carrying amount for the allowances for losses and sales adjustments may require revision, include, but are not limited to, managing our client’s expectations regarding the scope of the services to be delivered and defects or errors in new versions or enhancements of our software products. Our allowances for losses and sales adjustments are $17.3 million and $22.8 million at December 31, 2024, and December 31, 2023, respectively.
The following table summarizes the changes in the allowance for losses and sales adjustments:
 Years ended December 31,
 20242023
Balance at beginning of year$22,829 $14,761 
Provisions (reductions in reserve) for losses and sales adjustments - accounts receivable
(5,504)8,233 
Collections of accounts previously written off— (165)
Balance at end of year$17,325 $22,829 
Deferred Revenue
The majority of deferred revenue consists of deferred subscription-based services revenue that has been billed based on contractual terms in the underlying arrangement, with the remaining balance consisting of payments received in advance of revenue being earned under maintenance, software licensing, professional services, and hardware installation. Refer to Note 4 - “Deferred Revenue and Performance Obligations” for further information, including deferred revenue by segment and changes in deferred revenue during the period.
Deferred Commissions
Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a client. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be generally three to seven years. We utilize the “portfolio approach” practical expedient, which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would not differ materially from applying the guidance to individual contracts. Using the “portfolio approach”, we determine the period of benefit by taking into consideration our client contracts, our technology life-cycle and other factors. Sales commissions for renewal contracts are generally not paid in connection with the renewal of a contract. In the small number of instances where a commission is paid on a renewal, it is not commensurate with the commission paid on the initial sale and is recognized over the term of renewal, which is generally one year.
Deferred commissions have been included with prepaid expenses for the current portion and non-current other assets for the long-term portion in the accompanying consolidated balance sheets. Amortization expense related to deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of income. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Refer to Note 5 - “Deferred Commissions” for further information.
INCOME TAXES
Income taxes are accounted for under the asset and liability method. Deferred taxes arise because of different treatment between financial statement accounting and tax accounting, known as “temporary differences”. We record the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in the future periods) and “deferred tax liabilities” (generally items that we received a tax deduction for, which have not yet been recorded in the income statement). The deferred tax assets and liabilities are measured using enacted tax rules and laws that are expected to be in effect when the temporary differences are expected to be recovered or settled. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be “realized”.
We do not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable based on its technical merits. If the recognition threshold is met, we recognize a tax benefit based upon the largest amount of the tax benefit that is more likely than not probable, determined by cumulative probability of being realized upon settlement with the taxing authority. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income.
SHARE-BASED COMPENSATION
We have a share-based award plan that provides for the grant of stock options, restricted stock units, and performance share units to key employees, directors and non-employee consultants. Stock options generally vest after three to five years of continuous service from the date of grant and have a contractual term of 10 years. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicable performance periods, which generally cliff vest in one or three years. We account for share-based compensation utilizing the fair value recognition pursuant to ASC 718, Stock Compensation. See Note 14, “Share-Based Compensation,” for further information.
BUSINESS COMBINATIONS
Accounting for the acquisition of a business requires the allocation of the purchase price to the various assets acquired and liabilities assumed at their respective fair values. The determination of fair value requires the use of significant estimates and assumptions, and in making these determinations, management uses all available information.
For tangible and identifiable intangible assets acquired in a business combination, management estimates the fair value of assets acquired and liabilities assumed based on quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. The assumptions made in performing these valuations include, but are not limited to, discount rates, future revenues and operating costs, projections of capital costs, and other assumptions believed to be consistent with those used by principal market participants.
Due to the specialized nature of these calculations, we engage third-party specialists to assist management in evaluating our assumptions as well as appropriately measuring the fair value of assets acquired and liabilities assumed. We adjust the preliminary purchase price allocation, as necessary, up to one year after the acquisition closing date as we obtain new information about facts and circumstances that existed as of the closing date. If actual results are materially different than the assumptions we used to determine fair value of the assets acquired and liabilities assumed as well as the estimated useful lives of the intangible assets acquired through a business combination, it is possible that adjustments to the carrying values of such assets and liabilities will have a material impact on our financial position and results of operations. See Note 6 , “Acquisitions,” for further information.
Contingent future cash payments related to acquisitions are recognized at fair value as of the acquisition date and included in the determination of the acquisition date purchase price. Subsequent changes in the fair value of the contingent future cash payments are recognized in earnings in the period that the change occurs. We have no contingent consideration outstanding as of December 31, 2024.
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
We perform an impairment assessment annually on October 1, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of each reporting unit’s goodwill. If the conclusion of an impairment assessment is that it is more likely than not that the fair value of the reporting unit is more than its carrying value, goodwill is not considered impaired, and we are not required to perform the quantitative goodwill impairment test. If the conclusion of an impairment assessment is that it is more likely than not that the fair value is less than its carrying value, we perform the quantitative goodwill impairment test, which compares the fair value of the reporting unit to its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value.
There have been no impairments to goodwill in any of the periods presented. See Note 8, “Goodwill and Other Intangible Assets,” for additional information.
Other Intangible Assets
We make judgments about the recoverability of purchased intangible assets other than goodwill whenever events or changes in circumstances indicate that an impairment may exist. Client base and acquired software each comprise approximately half of our purchased intangible assets other than goodwill. We review our client turnover each year for indications of impairment. Our client turnover has historically been very low. If indications of impairment are determined to exist, we measure the recoverability of assets by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. There have been no impairments of intangible assets in any of the periods presented.
PROPERTY AND EQUIPMENT, NET
Property, equipment and purchased software are recorded at original cost and increased by the cost of any significant improvements after purchase. We expense maintenance and repairs when incurred. Depreciation and amortization is calculated using the straight-line method over the shorter of the asset’s estimated useful life or the term of the lease in the case of leasehold improvements.
To assess potential impairment, we periodically evaluate whether current facts or circumstances indicate that the carrying value of our property and equipment or other long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset or appropriate grouping of assets and the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. There was no impairment of long-lived assets in any of the periods presented.
SOFTWARE DEVELOPMENT COSTS
Software development costs primarily consist of personnel costs. We capitalize software development costs upon the establishment of technological feasibility and prior to the availability of the product for general release to clients for software sold to third parties and capitalize application development stage costs of software developed for internal use. During the twelve months period ended December 31, 2024, 2023, and 2022, respectively, we capitalized approximately $29.4 million, $32.5 million, and $27.6 million of software development costs. We begin to amortize capitalized costs when a product is available for general release to clients or when internal use software is ready for its intended use. Amortization expense is determined on a product-by-product basis at a rate not less than straight-line basis over the software’s remaining estimated economic life of, generally, three to seven years.
RESEARCH AND DEVELOPMENT COSTS
Research and development costs are expensed as incurred and include compensation costs for engineering and product management personnel, third-party contractor expenses, software development tools and other expenses related to researching and developing new solutions or upgrading and enhancing existing solutions that do not qualify for capitalization, and allocated depreciation, facilities and IT support costs. We expensed research and development costs of $117.9 million in 2024, $109.6 million in 2023, and $105.2 million in 2022.
CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade clients, and investments in marketable securities. Our cash and cash equivalents primarily consist of operating account balances and money market funds, which are maintained at several major domestic financial institutions and the balances often exceed insured amounts. As of December 31, 2024, we had cash and cash equivalents of $744.7 million. We perform periodic evaluations of the credit standing of these financial institutions.
Concentrations of credit risk with respect to receivables are limited due to the size and geographical diversity of our client base. As a result, we do not believe we have any significant concentrations of credit risk as of December 31, 2024.
LEASES
We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities, current and long-term, on our consolidated balance sheets. We currently do not have any finance lease arrangements.
Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and initial direct costs incurred less lease incentives received. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component.
INDEMNIFICATION
Most of our software license agreements indemnify our clients in the event that the software sold infringes upon the intellectual property rights of a third party. These agreements typically provide that in such event we will either modify or replace the software so that it becomes non-infringing or procure for the client the right to use the software. We have not recorded a liability associated with these indemnifications, as we are not aware of any pending or threatened infringement actions that are possible losses. We believe the estimated fair value of these intellectual property indemnification clauses is minimal.
We have also agreed to indemnify certain officers and our Board members if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ liability insurance coverage to protect against any such losses. We have not recorded a liability associated with these indemnifications. Because of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal.
RECENT ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07 - Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances the disclosures required for reportable segments in annual and interim consolidated financial statements. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption is permitted. As of December 31, 2024, we adopted the new standard which has been applied retrospectively by the Company. This change did not have a significant impact on the Company’s financial statements and disclosures. See Note 2, “Segment and Related Information,” for further discussion.
NEW ACCOUNTING PRONOUNCEMENTS
In January 2025, the FASB issued ASU 2025-01 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarifies that all public business entities must adopt the guidance in ASU 2024-03 for annual reporting periods beginning after December 15, 2026, and for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
In November 2024, the FASB issued ASU 2024-04 - Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This guidance clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. It is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
In November 2024, the FASB issued ASU 2024-03 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. It is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
In December 2023, the FASB issued ASU 2023-09 - Income Taxes (Topic ASC 740) Income Taxes. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
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SEGMENT AND RELATED INFORMATION
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT AND RELATED INFORMATION SEGMENT AND RELATED INFORMATION
Reportable operating segments are determined based on the Company’s management approach. The management approach, as defined by FASB ASC 280 “Segment Reporting” is based on the way that the Chief Operating Decision Maker (“CODM”) organizes the segments within an enterprise for making decisions about resources to be allocated and assessing their performance. Our CODM, for purposes of FASB ASC 280, is our Chief Executive Officer.
We report our results in two reportable segments. Our reportable segments are organized on the basis of a combination of the products and services they deliver to clients and the function the public sector client performs. Business units that have met the aggregation criteria have been combined into our two reportable segments. The Enterprise Software (“ES”) reportable segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as: public administration solutions, courts and public safety solutions, education solutions, and property and recording solutions. The Platform Technologies (“PT”) reportable segment provides public sector entities with platform and transformative solutions including digital solutions, payment processing, streamlined data processing, and improved operations and workflows.
The primary financial measures used by the CODM for assessing performance and allocating resources are segment income or loss from operations. The CODM uses segment income or loss from operations before income taxes, not including gains and losses on investments, to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. Segment gross profit for our operating segments units is defined as gross profit before non-cash amortization of acquired software associated with acquisitions. Segment operating income for our reportable segments is defined as income before non-cash amortization of intangible assets associated with their acquisitions, interest expense, and income taxes. During the fiscal periods presented, we had no significant transaction between reportable segments. Corporate segment operating loss primarily consists of compensation costs for the executive management team, certain shared services staff, and share-based compensation expense for the entire company. Corporate segment operating loss also includes revenues and expenses related to a company-wide user conference. The accounting policies of the reportable segments are the same as those described in Note 1, “Summary of Significant Accounting Policies”.
Segment assets primarily consist of net accounts receivable, prepaid expenses and other current assets, and net property and equipment and software development costs. Corporate assets primarily consist of cash and investments, prepaid insurance, intangibles associated with acquisitions, deferred income taxes, and net property and equipment mainly related to unallocated information and technology assets. Certain presentation items from previous years have been adjusted to conform with current year presentation.
For the year ended December 31, 2024
Enterprise Software
Platform TechnologiesCorporateTotals
Revenues   
Subscriptions:
SaaS$559,842 $84,937 $— $644,779 
Transaction-based fees234,633 463,519 — 698,152 
Maintenance438,455 24,677 — 463,132 
Professional services
219,933 44,058 — 263,991 
Software licenses and royalties25,292 1,065 — 26,357 
Hardware and other33,447 992 6,953 41,392 
Total revenues1,511,602 619,248 6,953 2,137,803 
Cost of revenues excluding amortization of acquired software
706,952 411,351 46,775 1,165,078 
Segment gross profit804,650 207,897 (39,822)972,725 
Sales and marketing expense109,981 21,618 26,132 157,731 
General and administrative expense48,072 57,627 195,239 300,938 
Research and development expense100,182 12,126 5,631 117,939 
Segment operating income546,415 116,526 (266,824)396,117 
Depreciation and amortization expense37,179 89,372 16,886 143,437 
Software development expenditures7,612 15,558 6,231 29,401 
Capital expenditures15,283 4,168 1,084 20,535 
Segment assets$572,224 $416,635 $4,191,156 $5,180,015 
For the year ended December 31, 2023
Enterprise Software
Platform TechnologiesCorporateTotals
Revenues   
Subscriptions:
SaaS$459,544 $68,433 $— $527,977 
Transaction-based fees174,718 456,817 — 631,535 
Maintenance442,781 23,880 — 466,661 
Professional services
209,727 40,249 — 249,976 
Software licenses and royalties32,709 5,387 — 38,096 
Hardware and other30,176 — 7,330 37,506 
Total revenues1,349,655 594,766 7,330 1,951,751 
Cost of revenues excluding amortization of acquired software653,407 368,017 33,166 1,054,590 
Segment gross profit696,248 226,749 (25,836)897,161 
Sales and marketing expense102,325 25,196 22,249 149,770 
General and administrative expense57,481 64,406 186,688 308,575 
Research and development expense92,686 12,701 4,198 109,585 
Segment operating income443,756 124,446 (238,971)329,231 
Depreciation and amortization expense25,445 110,354 18,280 154,079 
Software development expenditures6,619 15,840 10,031 32,490 
Capital expenditures16,788 2,380 1,351 20,519 
Segment assets$631,117 $426,064 $3,619,482 $4,676,663 
For the year ended December 31, 2022
Enterprise Software
Platform TechnologiesCorporateTotals
Revenues    
Subscriptions:
SaaS$378,953 $49,573 $— $428,526 
Transaction-based fees147,370 436,408 583,778 
Maintenance444,143 24,312 — 468,455 
Professional services204,970 72,655 — 277,625 
Software licenses and royalties55,158 4,248 — 59,406 
Hardware and other26,592 — 5,822 32,414 
Total revenues1,257,186 587,196 5,822 1,850,204 
Cost of revenues excluding amortization of acquired software606,379 370,571 37,199 1,014,149 
Segment gross profit650,807 216,625 (31,377)836,055 
Sales and marketing expense100,786 23,224 11,733 135,743 
General and administrative expense39,083 61,191 167,050 267,324 
Research and development expense92,162 8,919 4,103 105,184 
Segment operating income418,776 123,291 (214,263)327,804 
Depreciation and amortization expense55,389 84,609 19,074 159,072 
Software development expenditures3,790 14,581 9,251 27,622 
Capital expenditures8,972 6,845 6,712 22,529 
Segment assets$636,377 $362,610 $3,688,430 $4,687,417 
Reconciliation of reportable segment gross profit to the Company's consolidated totals:Years Ended December 31,
202420232022
Segment gross profit$972,725 $897,161 $836,055 
Amortization of acquired software(36,964)(36,062)(52,192)
Gross profit$935,761 $861,099 $783,863 
Reconciliation of reportable segment operating income to the Company's consolidated totals:Years Ended December 31,
202420232022
Total segment operating income$396,117 $329,231 $327,804 
Amortization of acquired software(36,964)(36,062)(52,192)
Amortization of other intangibles(59,627)(74,632)(61,363)
Interest expense(5,931)(23,629)(28,379)
Other income, net14,572 3,328 1,723 
Income before income taxes$308,167 $198,236 $187,593 
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DISAGGREGATION OF REVENUE
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
DISAGGREGATION OF REVENUE DISAGGREGATION OF REVENUE
The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows.
Recurring Revenues
The majority of our revenues are comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscriptions revenues primarily consist of revenues derived from our SaaS arrangements and transaction-based fees. These revenues are considered recurring because revenues from these sources are expected to re-occur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of one to three years. Nearly all of our on-premises software clients contract with us for maintenance and support. Maintenance and support are generally provided under auto-renewing annual contracts or multi-year contracts. We consider all other revenue categories to be non-recurring revenues.
Recurring revenues and non-recurring revenues recognized during the period are as follows:
For the year ended December 31, 2024
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$559,842 $84,937 $— $644,779 
Transaction-based fees234,633 463,519 — 698,152 
Maintenance438,455 24,677 — 463,132 
Total recurring revenues1,232,930 573,133 — 1,806,063 
Professional services
219,933 44,058 — 263,991 
Software licenses and royalties25,292 1,065 — 26,357 
Hardware and other33,447 992 6,953 41,392 
Total non-recurring revenues278,672 46,115 6,953 331,740 
Total revenues$1,511,602 $619,248 $6,953 $2,137,803 
For the year ended December 31, 2023
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$459,544 $68,433 $— $527,977 
Transaction-based fees174,718 456,817 — 631,535 
Maintenance442,781 23,880 — 466,661 
Total recurring revenues1,077,043 549,130 — 1,626,173 
Professional services
209,727 40,249 — 249,976 
Software licenses and royalties32,709 5,387 — 38,096 
Hardware and other30,176 — 7,330 37,506 
Total non-recurring revenues272,612 45,636 7,330 325,578 
Total revenues$1,349,655 $594,766 $7,330 $1,951,751 
For the year ended December 31, 2022
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$378,953 $49,573 $— $428,526 
Transaction-based fees147,370 436,408 — 583,778 
Maintenance444,143 24,312 — 468,455 
Total recurring revenues970,466 510,293 — 1,480,759 
Professional services
204,970 72,655 — 277,625 
Software licenses and royalties55,158 4,248 — 59,406 
Hardware and other26,592 — 5,822 32,414 
Total non-recurring revenues286,720 76,903 5,822 369,445 
Total revenues$1,257,186 $587,196 $5,822 $1,850,204 
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS
Total deferred revenue, including long-term, by segment is as follows:
December 31, 2024December 31, 2023
Enterprise Software$683,909 $589,295 
Platform Technologies36,117 39,597 
Corporate3,788 4,313 
Totals$723,814 $633,205 
Changes in total deferred revenue, including long-term, were as follows:
2024
Balance at beginning of year$633,205 
Deferral of revenue1,514,168 
Recognition of deferred revenue(1,423,559)
Balance at end of year$723,814 
Remaining Performance Obligations
We expect to recognize as revenue approximately 97% of our deferred revenue balance as of December 31, 2024, in the next 12 months, and the remainder thereafter. We believe the portion of transaction price allocated to the remaining performance obligations which is not included in our deferred revenue balance is not a meaningful indicator of future revenue due to contracts with transaction-based fees that vary with transaction activity, the variability in subscription term lengths, and termination provisions included in some contracts that limit inclusion and cause variability from period to period.
DEFERRED COMMISSIONS
Deferred commissions are as follows:
 December 31, 2024December 31, 2023
Prepaid commissions
$18,037 $18,262 
Long-term deferred commissions
38,762 30,924 
Total deferred commissions
$56,799 $49,186 
Amortization expense related to deferred commissions is as follows:
Years Ended December 31,
202420232022
Amortization expense
$19,916 $18,589 $15,448 
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DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS DISAGGREGATION OF REVENUE
The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows.
Recurring Revenues
The majority of our revenues are comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscriptions revenues primarily consist of revenues derived from our SaaS arrangements and transaction-based fees. These revenues are considered recurring because revenues from these sources are expected to re-occur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of one to three years. Nearly all of our on-premises software clients contract with us for maintenance and support. Maintenance and support are generally provided under auto-renewing annual contracts or multi-year contracts. We consider all other revenue categories to be non-recurring revenues.
Recurring revenues and non-recurring revenues recognized during the period are as follows:
For the year ended December 31, 2024
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$559,842 $84,937 $— $644,779 
Transaction-based fees234,633 463,519 — 698,152 
Maintenance438,455 24,677 — 463,132 
Total recurring revenues1,232,930 573,133 — 1,806,063 
Professional services
219,933 44,058 — 263,991 
Software licenses and royalties25,292 1,065 — 26,357 
Hardware and other33,447 992 6,953 41,392 
Total non-recurring revenues278,672 46,115 6,953 331,740 
Total revenues$1,511,602 $619,248 $6,953 $2,137,803 
For the year ended December 31, 2023
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$459,544 $68,433 $— $527,977 
Transaction-based fees174,718 456,817 — 631,535 
Maintenance442,781 23,880 — 466,661 
Total recurring revenues1,077,043 549,130 — 1,626,173 
Professional services
209,727 40,249 — 249,976 
Software licenses and royalties32,709 5,387 — 38,096 
Hardware and other30,176 — 7,330 37,506 
Total non-recurring revenues272,612 45,636 7,330 325,578 
Total revenues$1,349,655 $594,766 $7,330 $1,951,751 
For the year ended December 31, 2022
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$378,953 $49,573 $— $428,526 
Transaction-based fees147,370 436,408 — 583,778 
Maintenance444,143 24,312 — 468,455 
Total recurring revenues970,466 510,293 — 1,480,759 
Professional services
204,970 72,655 — 277,625 
Software licenses and royalties55,158 4,248 — 59,406 
Hardware and other26,592 — 5,822 32,414 
Total non-recurring revenues286,720 76,903 5,822 369,445 
Total revenues$1,257,186 $587,196 $5,822 $1,850,204 
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS
Total deferred revenue, including long-term, by segment is as follows:
December 31, 2024December 31, 2023
Enterprise Software$683,909 $589,295 
Platform Technologies36,117 39,597 
Corporate3,788 4,313 
Totals$723,814 $633,205 
Changes in total deferred revenue, including long-term, were as follows:
2024
Balance at beginning of year$633,205 
Deferral of revenue1,514,168 
Recognition of deferred revenue(1,423,559)
Balance at end of year$723,814 
Remaining Performance Obligations
We expect to recognize as revenue approximately 97% of our deferred revenue balance as of December 31, 2024, in the next 12 months, and the remainder thereafter. We believe the portion of transaction price allocated to the remaining performance obligations which is not included in our deferred revenue balance is not a meaningful indicator of future revenue due to contracts with transaction-based fees that vary with transaction activity, the variability in subscription term lengths, and termination provisions included in some contracts that limit inclusion and cause variability from period to period.
DEFERRED COMMISSIONS
Deferred commissions are as follows:
 December 31, 2024December 31, 2023
Prepaid commissions
$18,037 $18,262 
Long-term deferred commissions
38,762 30,924 
Total deferred commissions
$56,799 $49,186 
Amortization expense related to deferred commissions is as follows:
Years Ended December 31,
202420232022
Amortization expense
$19,916 $18,589 $15,448 
v3.25.0.1
DEFERRED COMMISSIONS
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
DEFERRED COMMISSIONS DISAGGREGATION OF REVENUE
The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenues and cash flows.
Recurring Revenues
The majority of our revenues are comprised of revenues from subscriptions and maintenance, which we consider to be recurring revenues. Subscriptions revenues primarily consist of revenues derived from our SaaS arrangements and transaction-based fees. These revenues are considered recurring because revenues from these sources are expected to re-occur in similar annual amounts for the term of our relationship with the client. Transaction-based fees are generally the result of multi-year contracts with our clients that result in fees generated by payment transactions and digital government services and are collected on a recurring basis during the contract term. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of one to three years. Nearly all of our on-premises software clients contract with us for maintenance and support. Maintenance and support are generally provided under auto-renewing annual contracts or multi-year contracts. We consider all other revenue categories to be non-recurring revenues.
Recurring revenues and non-recurring revenues recognized during the period are as follows:
For the year ended December 31, 2024
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$559,842 $84,937 $— $644,779 
Transaction-based fees234,633 463,519 — 698,152 
Maintenance438,455 24,677 — 463,132 
Total recurring revenues1,232,930 573,133 — 1,806,063 
Professional services
219,933 44,058 — 263,991 
Software licenses and royalties25,292 1,065 — 26,357 
Hardware and other33,447 992 6,953 41,392 
Total non-recurring revenues278,672 46,115 6,953 331,740 
Total revenues$1,511,602 $619,248 $6,953 $2,137,803 
For the year ended December 31, 2023
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$459,544 $68,433 $— $527,977 
Transaction-based fees174,718 456,817 — 631,535 
Maintenance442,781 23,880 — 466,661 
Total recurring revenues1,077,043 549,130 — 1,626,173 
Professional services
209,727 40,249 — 249,976 
Software licenses and royalties32,709 5,387 — 38,096 
Hardware and other30,176 — 7,330 37,506 
Total non-recurring revenues272,612 45,636 7,330 325,578 
Total revenues$1,349,655 $594,766 $7,330 $1,951,751 
For the year ended December 31, 2022
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$378,953 $49,573 $— $428,526 
Transaction-based fees147,370 436,408 — 583,778 
Maintenance444,143 24,312 — 468,455 
Total recurring revenues970,466 510,293 — 1,480,759 
Professional services
204,970 72,655 — 277,625 
Software licenses and royalties55,158 4,248 — 59,406 
Hardware and other26,592 — 5,822 32,414 
Total non-recurring revenues286,720 76,903 5,822 369,445 
Total revenues$1,257,186 $587,196 $5,822 $1,850,204 
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS
Total deferred revenue, including long-term, by segment is as follows:
December 31, 2024December 31, 2023
Enterprise Software$683,909 $589,295 
Platform Technologies36,117 39,597 
Corporate3,788 4,313 
Totals$723,814 $633,205 
Changes in total deferred revenue, including long-term, were as follows:
2024
Balance at beginning of year$633,205 
Deferral of revenue1,514,168 
Recognition of deferred revenue(1,423,559)
Balance at end of year$723,814 
Remaining Performance Obligations
We expect to recognize as revenue approximately 97% of our deferred revenue balance as of December 31, 2024, in the next 12 months, and the remainder thereafter. We believe the portion of transaction price allocated to the remaining performance obligations which is not included in our deferred revenue balance is not a meaningful indicator of future revenue due to contracts with transaction-based fees that vary with transaction activity, the variability in subscription term lengths, and termination provisions included in some contracts that limit inclusion and cause variability from period to period.
DEFERRED COMMISSIONS
Deferred commissions are as follows:
 December 31, 2024December 31, 2023
Prepaid commissions
$18,037 $18,262 
Long-term deferred commissions
38,762 30,924 
Total deferred commissions
$56,799 $49,186 
Amortization expense related to deferred commissions is as follows:
Years Ended December 31,
202420232022
Amortization expense
$19,916 $18,589 $15,448 
v3.25.0.1
ACQUISITIONS
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
ACQUISITIONS ACQUISITIONS
2024
We did not complete any new acquisitions during twelve months ended December 31, 2024.
In 2024, the Company settled certain fully indemnified matters related to two acquisitions completed in prior years resulting in the reimbursement of shares of our common stock from escrow for $10.4 million.
In 2024, we also paid $1.4 million in cash for holdbacks related to other acquisitions completed in 2023.
2023
On October 31, 2023, we acquired Resource Exploration, Inc. (“ResourceX”), a leading provider of budgeting software to the public sector. The total purchase price, net of cash acquired of $48,000, was approximately $16.3 million, consisting of $9.1 million paid in cash, $5.7 million of common stock and $1.5 million related to working capital and indemnity holdbacks, subject to certain post-closing adjustments.
We performed a valuation analysis of the fair market value of ResourceX’s assets and liabilities. In connection with this transaction, we acquired total tangible assets of $388,000 and assumed liabilities of approximately $901,000. We recorded goodwill of approximately $10.0 million, none of which is expected to be deductible for tax purposes, and other identifiable intangible assets of approximately $7.6 million. The goodwill arising from this acquisition is primarily attributed to our ability to generate increased revenues, earnings and cash flow by expanding our addressable market and client base. The intangible assets of $7.6 million are primarily attributable to client relationships and acquired software and will be amortized over a weighted average period of approximately nine years. We recorded net deferred tax liabilities of $748,000 related to the tax effect of our estimated fair value allocations.
On October 31, 2023, we acquired ARInspect, Inc. (“ARInspect”), a leading provider of AI powered machine learning solutions for public sector field operations. The total purchase price, net of cash acquired of $1.0 million, was approximately $20.5 million, consisting of $19.1 million paid in cash and $2.4 million related to working capital and indemnity holdbacks, subject to certain post-closing adjustments.
We performed a valuation analysis of the fair market value of ARInspect’s assets and liabilities. In connection with this transaction, we acquired total tangible assets of $1.8 million and assumed liabilities of approximately $1.5 million. We recorded goodwill of approximately $13.6 million, none of which is expected to be deductible for tax purposes, and other identifiable intangible assets of approximately $10.0 million. The goodwill arising from this acquisition is primarily attributed to our ability to generate increased revenues, earnings and cash flow by expanding our addressable market and client base. The intangible assets of $10.0 million are primarily attributable to client relationships and acquired software and will be amortized over a weighted average period of approximately 12 years. We recorded net deferred tax liabilities of $2.5 million related to the tax effect of our estimated fair value allocations.
On August 8, 2023, we acquired Computing System Innovations, LLC (“CSI”), a leading provider of artificial intelligence automation, redaction, and indexing solution for courts, recorders, attorneys, and others. The total purchase price, net of cash acquired of $415,000, was approximately $36.2 million, consisting of $33.4 million paid in cash and $3.3 million related to working capital and indemnity holdbacks, subject to certain post-closing adjustments.
We performed a valuation analysis of the fair market value of CSI’s assets and liabilities. In connection with this transaction, we acquired total tangible assets of $1.2 million and assumed liabilities of approximately $2.4 million. We recorded goodwill of approximately $19.4 million, all of which is expected to be deductible for tax purposes, and other identifiable intangible assets of approximately $18.5 million. The goodwill arising from this acquisition is primarily attributed to our ability to generate increased revenues, earnings and cash flow by expanding our addressable market and client base. The intangible assets of $18.5 million are primarily attributable to client relationships and acquired software and will be amortized over a weighted average period of approximately 13 years.
The actual operating results of CSI and ResourceX, from their respective dates of acquisition, are included with the operating results of the ES segment. The operating results of ARInspect are included in the operating results of the PT segment since the date of acquisition. Also, the impact of these acquisitions on our operating results, assets, and liabilities is not material, individually or in the aggregate. As of December 31, 2024, the purchase price allocations for CSI, ARInspect, and ResourceX are final.
In the twelve months ended December 31, 2024, we incurred fees of approximately $29,000 for financial advisory, legal, accounting, due diligence, valuation, and other various services necessary to complete acquisitions. These costs were expensed in 2024 and are included in general and administrative expense in the accompanying consolidated statements of income.
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET 
Property and equipment, net consists of the following at December 31:
 Useful
Lives
(years)		20242023
Land— $23,163 $22,908 
Building and leasehold improvements
5-39
181,066 172,094 
Computer equipment and purchased software
3-5
99,156 118,178 
Furniture and fixtures534,495 34,881 
Transportation equipment5222 222 
  338,102 348,283 
Accumulated depreciation and amortization (174,327)(178,563)
Property and equipment, net $163,775 $169,720 
Depreciation expense was $23.3 million in 2024, $25.0 million in 2023, and $29.5 million in 2022.
We paid $7.5 million and $16.0 million for real estate and the expansion of existing facilities in 2024 and 2023, respectively.
Software development costs, net consists of the following at December 31:
 Useful
Lives
(years)		20242023
Software development costs
3-7
$118,698 $92,395 
Accumulated amortization (42,581)(25,271)
Software development costs, net $76,117 $67,124 
Amortization expense for software development costs is recorded to cost of revenues and general and administrative expense:
 202420232022
Amortization expense for software development costs recorded to cost of revenues
$18,806 $12,625 $6,507 
Amortization expense for software development costs recorded to general and administrative expense
1,601 930 1,424 
Total
$20,407 $13,555 $7,931 
Estimated annual amortization expense related to software development costs:
2025$23,050 
202620,082 
202715,162 
202811,168 
20295,348 
Thereafter1,307 
$76,117 
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the two years ended December 31, 2024 are as follows:
 Enterprise SoftwarePlatform TechnologiesTotal
Balance as of 12/31/2022$834,693 $1,654,615 $2,489,308 
Goodwill acquired related to the purchase of CSI
19,421 — 19,421 
Goodwill acquired related to the purchase of ARInspect
— 13,627 13,627 
Goodwill acquired related to the purchase of ResourceX9,978 — 9,978 
Goodwill acquired related to the purchase of other acquisitions— (225)(225)
Transfer from ES to PT(27,090)27,090 — 
Balance as of 12/31/2023837,002 1,695,107 2,532,109 
Purchase price adjustments related to the purchase of prior year acquisitions
(235)(221)(456)
Balance as of 12/31/2024$836,767 $1,694,886 $2,531,653 
Other intangible assets and related accumulated amortization consists of the following at December 31:
 20242023
Gross carrying amount of other intangibles:  
Client related intangibles
$958,924 $1,015,919 
Acquired software284,900 466,253 
Trade names5,320 45,002 
Leases acquired4,585 5,037 
 1,253,729 1,532,211 
Accumulated amortization(421,763)(603,341)
Total other intangibles, net$831,966 $928,870 
Amortization expense for acquired software is recorded to cost of revenues. Amortization expense for client related intangibles, trade names and leases acquired is recorded to amortization of other intangibles. Total amortization expense for other intangible assets was $96.9 million in 2024, $111.0 million in 2023, and $113.9 million in 2022. 
The amortization periods of other intangible assets is summarized in the following table:
 December 31, 2024December 31, 2023
 Gross
Carrying
Amount		Weighted
Average
Amortization
Period		Accumulated AmortizationGross
Carrying
Amount		Weighted
Average
Amortization
Period		Accumulated Amortization
Non-amortizable intangibles:      
Goodwill$2,531,653 — $— $2,532,109 — $— 
Amortizable intangibles:      
Client related intangibles
$958,924 18 years$261,407 $1,015,919 18 years$263,672 
Acquired software284,900 8 years152,317 466,253 7 years296,704 
Trade names5,320 12 years3,902 45,002 7 years38,838 
Leases acquired4,585 7 years4,137 5,037 9 years4,127 
Estimated annual amortization expense related to other intangible assets:
2025$92,208 
202684,871 
202782,777 
202879,983 
202962,143 
Thereafter429,984 
$831,966 
v3.25.0.1
ACCRUED LIABILITIES
 12 Months Ended
Dec. 31, 2024
Accrued Liabilities, Current [Abstract]  
ACCRUED LIABILITIES ACCRUED LIABILITIES
Accrued liabilities consist of the following at December 31:
 20242023
Accrued wages, bonuses and commissions$109,207 $81,679 
Other accrued liabilities88,502 76,879 
 $197,709 $158,558 
v3.25.0.1
DEBT
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
The following table summarizes our total outstanding borrowings:
RateMaturity DateDecember 31, 2024December 31, 2023
2024 Credit Agreement
Revolving credit facility
S + 1.125%
September 2029$— $— 
2021 Credit Agreement
Revolving credit facility
S + 1.125%
April 2026— — 
Term Loan A-1
S + 1.125%
April 2026— 50,000 
Convertible Senior Notes due 20260.25%March 2026600,000 600,000 
Total borrowings600,000 650,000 
Less: unamortized debt discount and debt issuance costs(2,066)(3,993)
Total borrowings, net597,934 646,007 
Less: current portion of debt— (49,801)
Carrying value$597,934 $596,206 
2024 Credit Agreement
On September 25, 2024, the Company entered into a $700.0 million credit agreement with the various lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender, and Issuing Lender (the “2024 Credit Agreement”). The 2024 Credit Agreement provides for an unsecured revolving credit facility in an aggregate principal amount of up to $700.0 million, including subfacilities for standby letters of credit and swingline loans. The 2024 Credit Agreement matures on September 25, 2029, and loans may be prepaid at any time, without premium or penalty, subject to certain minimum amounts and payment of any SOFR breakage costs. The Company incurred issuance fees of $2.6 million in connection with the 2024 Credit Agreement. The 2024 Credit Agreement replaced Tyler’s previous $500.0 million unsecured credit facility under the credit agreement dated April 21, 2021, among the Company and various lenders party thereto (the “2021 Credit Agreement”), which was scheduled to mature in April 2026.
The 2024 Credit Agreement contains certain customary representations and warranties, affirmative and negative covenants, and events of defaults. The 2024 Credit Agreement requires us to maintain certain financial ratios and other financial conditions and limits us from making certain investments, advances, cash dividends or loans, and limits incurrence of additional indebtedness and liens.
Loans under the revolving credit facility will bear interest, at the Company’s option, at a per annum rate of either (1) the Administrative Agent’s prime commercial lending rate (subject to certain higher rate determinations) plus a margin of 0.125% to 0.75% or (2) the one-, three-, or six-month SOFR rate plus a margin of 1.125% to 1.75%. The margin in each case is based upon Tyler’s total net leverage ratio, as determined pursuant to the 2024 Credit Agreement. In addition to paying interest on the outstanding principal of loans under the revolving credit facility, the Company is required to pay a commitment fee initially in the amount of 0.125% per annum, which will subsequently range from 0.125% to 0.25% based upon the Company’s total net leverage ratio. Borrowings under the 2024 Credit Agreement may be used for general corporate purposes, including working capital requirements, acquisitions and capital expenditures.
2021 Credit Agreement
In connection with the completion of a prior acquisition the Company entered into a $1.4 billion Credit Agreement (the “2021 Credit Agreement”) with the various lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent, Swingline Lender, and Issuing Lender. The 2021 Credit agreement included a senior unsecured revolving credit facility (which has been replaced by the 2024 credit agreement discussed above) and an amortizing five-year term loan in the aggregate amount of $600 million (the “Term Loan A-1”).
The Term Loan A-1 bore interest, at the Company’s option, at a per annum rate of either (1) the Administrative Agent’s prime commercial lending rate (subject to certain higher rate determinations) (the “Base Rate”) plus a margin of 0.125% to 0.75% or (2) the one-, three-, six-, or, subject to approval by all lenders, twelve-month SOFR rate plus a margin of 1.125% to 1.75%.
During the twelve months ended December 31, 2024, we repaid $50.0 million of the Term Loans and had no borrowings outstanding under the 2021 Credit Agreement prior to its termination on September 25, 2024.
As of December 31, 2024, we had no borrowings outstanding and were in compliance with our covenants under the 2024 Credit Agreement.
Convertible Senior Notes due 2026
On March 9, 2021, we issued 0.25% Convertible Senior Notes due in 2026 in the aggregate principal amount of $600.0 million (“the Convertible Senior Notes” or “the Notes”). The Convertible Senior Notes were issued pursuant to, and are governed by, an indenture (the “Indenture”), dated as of March 9, 2021, with U.S. Bank National Association as trustee. The net proceeds from the issuance of the Convertible Senior Notes were $591.4 million, net of initial purchasers’ discounts of $6.0 million and debt issuance costs of $2.6 million.
The Convertible Senior Notes are senior, unsecured obligations and are (i) equal in right of payment to our future senior, unsecured indebtedness; (ii) senior in right of payment to our future indebtedness that is expressly subordinated to the Notes; (iii) effectively subordinated to our future secured indebtedness, to the extent of the value of the collateral securing that indebtedness; and (iv) structurally subordinated to all future indebtedness and other liabilities, including trade payables, and (to the extent we are not a holder thereof) preferred equity, if any, of our subsidiaries.
The Convertible Senior Notes accrue interest at a rate of 0.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year. The Convertible Senior Notes mature on March 15, 2026, unless earlier repurchased, redeemed, or converted.
Before September 15, 2025, holders of the Convertible Senior Notes have the right to convert their Convertible Senior Notes only upon the occurrence of certain events. Under the terms of the Indenture, the Convertible Senior Notes are convertible into common stock of Tyler Technologies, Inc. (referred to as “our common stock” herein) at the following times or circumstances:
•during any calendar quarter commencing after the calendar quarter ended June 30, 2021, if the last reported sale price per share of our common stock exceeds 130% of the conversion price for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter;
•during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “Measurement Period”) if the trading price per $1,000 principal amount of Convertible Senior Notes, as determined following a request by their holder in accordance with the procedures in the Indenture, for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day;
•upon the occurrence of certain corporate events or distributions on our common stock, including but not limited to a “Fundamental Change” (as defined in the Indenture);
•upon the occurrence of specified corporate events; or
•on or after September 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date, March 15, 2026.
With certain exceptions, upon a change of control or other fundamental change (both as defined in the Indenture governing the Convertible Senior Notes), the holders of the Convertible Senior Notes may require us to repurchase all or part of the principal amount of the Convertible Senior Notes at a repurchase price equal to 100% of the principal amount of the Convertible Senior Notes, plus any accrued and unpaid interest up to, but excluding, the redemption date.
As of December 31, 2024, none of the conditions allowing holders of the Convertible Senior Notes to convert have been met.
From and including September 15, 2025, holders of the Convertible Senior Notes may convert their Convertible Senior Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. We will settle any conversions of the Convertible Senior Notes either entirely in cash or in a combination of cash and shares of our common stock, at our election. However, upon conversion of any Convertible Senior Notes, the conversion value, which will be determined over an “Observation Period” (as defined in the Indenture) consisting of 30 trading days, will be paid in cash up to at least the principal amount of the Notes being converted.
The initial conversion rate is 2.0266 shares of common stock per $1,000 principal amount of Convertible Senior Notes, which represents an initial conversion price of approximately $493.44 per share of common stock. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. In addition, if certain corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time.
The Convertible Senior Notes are redeemable, in whole or in part, at our option at any time, and from time to time, on or after March 15, 2024, and on or before the 30th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, up to, but excluding, the redemption date, but only if the last reported sale price per share of our common stock exceeds 130% of the conversion price of the Notes on (i) each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the trading day immediately before the date we send the related redemption notice; and (ii) the trading day immediately before the date we send such notice. In addition, calling any Note for redemption constitutes a Make-Whole Fundamental Change with respect to that Note, in which case the conversion rate applicable to the conversion of that Note will be increased in certain circumstances if it is converted after it is called for redemption.
Effective Interest Rate
The weighted average interest rate for the borrowings under the Convertible Senior Notes was 0.25% as of December 31, 2024. For the twelve months ended December 31, 2024, the effective interest rate was 8.66% for the Term Loans under the 2021 Credit Agreement and 0.54% for the Convertible Senior Notes. The following sets forth the interest expense recognized related to the borrowings and commitment fees for unused portions under the 2024 Credit Agreement, the 2021 Credit Agreement and Convertible Senior Notes and is included in interest expense in the accompanying consolidated statements of income:
Years Ended December 31,
202420232022
Contractual interest expense - 2024 Revolving Credit Facility$(253)$— $— 
Contractual interest expense - 2021 Revolving Credit Facility(671)(1,539)(1,267)
Contractual interest expense - Term Loans(761)(16,016)(18,583)
Contractual interest expense - Convertible Senior Notes(1,500)(1,500)(1,500)
Amortization of debt discount and debt issuance costs (2,746)(4,574)(7,029)
Total $(5,931)$(23,629)$(28,379)
As of December 31, 2024, we had one outstanding standalone letter of credit totaling $500,000. The letter of credit, which guarantees our performance under a client contract, automatically renews annually unless canceled in writing, and expires in the third quarter of 2025.
v3.25.0.1
FINANCIAL INSTRUMENTS
 12 Months Ended
Dec. 31, 2024
Investments, All Other Investments [Abstract]  
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS
The following table presents our financial instruments:
December 31, 2024December 31, 2023
Cash and cash equivalents$744,721 $165,493 
Available-for-sale investments34,015 17,431 
Equity investments10,000 10,000 
Total$788,736 $192,924 
Cash and cash equivalents consist primarily of money market funds with original maturity dates of three months or less, for which we determine fair value through quoted market prices.
Our investment portfolio is classified as available-for-sale in order to have the flexibility to buy and sell investments and maximize cash liquidity. Our available-for-sale investments primarily consist of investment grade corporate bonds, U.S. Treasuries, and asset-backed securities with maturity dates through 2027. These investments are presented at fair value and are included in short-term investments and non-current investments in the accompanying consolidated balance sheets. Unrealized gains or losses associated with the investments are included in accumulated other comprehensive income (loss), net of tax in the accompanying consolidated balance sheets and other comprehensive income (loss), net of tax in the statements of comprehensive income. For our available-for-sale investments, we do not have the intent to sell, nor is it more likely than not that we would be required to sell before recovery of their cost basis.
As of December 31, 2024 and 2023, we have an accrued interest receivable balance of approximately $227,000 and $65,000, respectively, which is included in accounts receivable, net. We do not measure an allowance for credit losses for accrued interest receivables. We record any losses within the maturity period or at the time of sale of the investment and any write-offs to accrued interest receivables are recorded as reductions to interest income in the period of the loss. During the twelve months ended December 31, 2024, we have recorded no losses for accrued interest receivables. Interest income and amortization of discounts and premiums are included in other income, net in the accompanying consolidated statements of income.
The following table presents the components of our available-for-sale investments:
December 31, 2024December 31, 2023
Amortized cost$34,225 $17,866 
Unrealized gains3 — 
Unrealized losses(213)(435)
Estimated fair value$34,015 $17,431 
As of December 31, 2024, we have $23.3 million of available-for-sale debt securities with contractual maturities of one year or less and $10.8 million with contractual maturities greater than one year. As of December 31, 2024, 22 available-for-sale securities with a fair value of $13.5 million have been in a loss position for one year or less and seven securities with a fair value of $7.7 million have been in a loss position for greater than one year.
The following table presents the activity on our available-for-sale or held-to-maturity investments:
Years Ended December 31,
202420232022
Proceeds from sales and maturities$15,994 $49,412 $71,034 
Realized losses on sales, net of tax(18)— (79)
Our equity investments consist of an 18% interest in BFTR, LLC, a wholly owned subsidiary of Bison Capital Partners V L.P. BFTR, LLC is a privately held Australian company specializing in digitizing the spoken word in court and legal proceedings. The investment in common stock is carried at cost less any impairment write-downs because we do not have the ability to exercise significant influence over the investee and the securities do not have readily determinable fair values.
v3.25.0.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market for that asset or liability. Guidance on fair value measurements and disclosures establishes a valuation hierarchy for disclosure of inputs used in measuring fair value defined as follows:
•Level 1—Inputs are unadjusted quoted prices that are available in active markets for identical assets or liabilities.
•Level 2—Inputs include quoted prices for similar assets and liabilities in active markets and quoted prices in non-active markets, inputs other than quoted prices that are observable, and inputs that are not directly observable, but are corroborated by observable market data.
•Level 3—Inputs that are unobservable and are supported by little or no market activity and reflect the use of significant management judgment.
The classification of a financial asset or liability within the hierarchy is determined based on the least reliable level of input that is significant to the fair value measurement. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. We also consider the counterparty and our own non-performance risk in our assessment of fair value.
The following table presents fair values of our financial and debt instruments categorized by their fair value hierarchy as of December 31, 2024:
Level 1Level 2Level 3Total
Cash and cash equivalents
$744,721 $— $— $744,721 
Available-for-sale investments
— 34,015 — 34,015 
Equity investments— — 10,000 10,000 
Convertible Senior Notes due 2026— 731,310 — 731,310 
The following table presents fair values of our financial and debt instruments categorized by their fair value hierarchy as of December 31, 2023:
Level 1Level 2Level 3Total
Cash and cash equivalents
$165,493 $— $— $165,493 
Available-for-sale investments
— 17,431 — 17,431 
Equity investments— — 10,000 10,000 
2021 Credit Agreement
Term Loan A-1— 49,801 — 49,801 
Convertible Senior Notes due 2026— 609,168 — 609,168 
Assets that are measured at fair value on a recurring basis
Accounts receivables, accounts payables, short-term obligations and certain other assets carrying value approximate fair value because of the short maturity of these instruments.
As of December 31, 2024, we have $34.0 million in investment grade corporate bonds, U.S. Treasuries and asset-backed securities with maturity dates through 2027. The fair values of these securities are considered Level 2 as they are based on inputs from quoted prices in markets that are not active or other observable market data.
Assets that are measured at fair value on a nonrecurring basis
As of December 31, 2024, we have an 18% interest in BFTR, LLC. As we do not have the ability to exercise significant influence over the investee and the securities do not have readily determinable fair values, our investment is carried at cost less any impairment write-downs. Periodically, our investment is assessed for impairment. We do not reassess the fair value of the investments if there are no identified events or changes in circumstances that indicate fair value of the investment or indicate impairment. No events or changes in circumstances have occurred during the period that require reassessment. There has been no impairment of this investment for the periods presented. This investment is included in other non-current assets in the accompanying consolidated balance sheets.
As described in Note 1, “Summary of Significant Accounting Policies”, we assess goodwill for impairment annually on October 1. In addition, we review goodwill, property and equipment, and other intangibles for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. During the fourth quarter of 2024, we completed our annual assessment of goodwill which did not result in an impairment charge. Further, we identified no indicators of impairment to goodwill, property and equipment, and other intangibles. Therefore, no impairment was recorded as of or for the year ended December 31, 2024.
Financial instruments measured at fair value only for disclosure purposes
For the twelve months ended December 31, 2024, we repaid the remainder of the Term Loans and had no borrowings outstanding under the 2021 Credit Agreement prior to its termination on September 25, 2024. The carrying amount of the Term Loan under the 2021 Credit Agreement was the par value less the debt discount and debt issuance costs that are amortized to interest expense using the effective interest method over the term of the Term Loan. Interest expense is included in the accompanying consolidated statements of income.
The fair value of our Convertible Senior Notes is determined based on quoted market prices for a similar liability when traded as an asset in an active market, a Level 2 input. See Note 10, “Debt,” for further discussion.
The carrying amount of the Convertible Senior Notes is the par value less the debt discount and debt issuance costs that are amortized to interest expense using the effective interest method over the term of the Convertible Senior Notes. Interest expense is included in the accompanying consolidated statements of income.
The following table presents the fair value and carrying value, net, of the Term Loan under the 2021 Credit Agreement and our Convertible Senior Notes:
 Fair Value at December 31,Carrying Value at December 31,
2024202320242023
2021 Credit Agreement
Term Loan A-1$— $49,801 $— $49,801 
Convertible Notes due 2026731,310 609,168 597,934 596,206 
 $731,310 $658,969 $597,934 $646,007 
v3.25.0.1
INCOME TAX
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAX INCOME TAX
Income tax provision on income from operations consists of the following:
 Years Ended December 31,
 202420232022
Current:   
Federal$60,997 $86,218 $84,570 
State14,807 19,803 25,975 
 75,804 106,021 110,545 
Deferred(30,663)(73,704)(87,192)
 $45,141 $32,317 $23,353 
Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows:
 Years Ended December 31,
 202420232022
Federal income tax expense at statutory rate$64,715 $41,630 $39,395 
State income tax, net of federal income tax benefit8,917 6,881 9,197 
Net operating loss carryback— — (261)
Excess tax benefits of share-based compensation(21,143)(9,325)(7,752)
Tax credits(22,095)(20,494)(31,334)
Non-deductible business expenses4,786 5,191 5,425 
Uncertain tax positions10,109 7,647 8,338 
Other, net(148)787 345 
 $45,141 $32,317 $23,353 
The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are:
 20242023
Deferred income tax assets:  
Capitalized research and experimental expenditures$157,812 $130,972 
Operating expenses not currently deductible8,593 22,180 
Stock option and other employee benefit plans22,095 21,864 
Loss and credit carryforwards5,836 7,430 
Deferred revenue1,670 1,923 
Other55 111 
Total deferred income tax assets196,061 184,480 
Valuation allowance(794)— 
Total deferred income tax assets, net of valuation allowance195,267 184,480 
Deferred income tax liabilities:  
Intangible assets(223,459)(242,522)
Property and equipment(5,624)(8,659)
Prepaid expenses(13,687)(11,889)
Total deferred income tax liabilities(242,770)(263,070)
Net deferred income tax liabilities$(47,503)$(78,590)
As of December 31, 2024, the capitalization and amortization requirements of research and experimental expenditures pursuant to the Tax Cuts and Jobs Act of 2017 (“TCJA”) changes to Internal Revenue Code Section 174 resulted in a deferred tax asset of $157.8 million.
As of December 31, 2024, we had after-tax federal and state net operating loss and net tax credit carryforwards of $5.8 million, that will begin expiring in 2033, if not utilized. The acquired carryforwards are subject to an annual limitation but are expected to be realized. A valuation allowance was recorded against a state research and development credit carryforward in 2024 for $0.8 million due to state taxable income limitations on credit utilization. We believe it is more likely than not that all other deferred tax assets will be realized. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of taxable income or reversing taxable temporary differences are revised.
The following table provides a reconciliation of the gross unrecognized tax benefits from uncertain tax positions for the years ended December 31:
20242023
Balance at beginning of period$20,869 $14,044 
Additions for tax positions of prior period4,970 3,087 
Reductions for tax positions of prior period— (338)
Additions for tax positions of current period4,346 4,838 
Expiration of statutes of limitations(430)(762)
Balance at end of period$29,755 $20,869 
As of December 31, 2024 and December 31, 2023, we had uncertain tax positions of $32.2 million and $22.1 million, including interest and penalties, respectively, recorded within deferred tax liabilities, other long-term assets, and other long-term liabilities in our consolidated balance sheets. The total amount of unrecognized tax benefits, net of the federal income tax benefit of state taxes, if recognized, that would affect the effective tax rate is $28.6 million, $20.1 million and $13.3 million as of December 31, 2024, 2023, and 2022, respectively. It is reasonably possible that events will occur during the next 12 months that would cause the total amount of unrecognized tax benefits to increase or decrease. However, we do not expect such increases or decreases to be material to the Company’s financial condition or results of operations.
We are subject to U.S. federal income tax, as well as income tax of multiple state, local and foreign jurisdictions. We are routinely subject to income tax examinations by these taxing jurisdictions, but we do not have a history of, nor do we expect any material adjustments as a result of these examinations. With few exceptions, major U.S. federal, state, local and foreign jurisdictions are no longer subject to examination for years before 2020. As of February 19, 2025, no significant adjustments have been proposed by any taxing jurisdiction.
v3.25.0.1
SHARE-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
SHARE-BASED COMPENSATION SHARE-BASED COMPENSATION
Share-Based Compensation Plan
In May 2024, stockholders approved the Tyler Technologies, Inc. amended and restated 2018 Stock Incentive Plan (“the Amended and Restated 2018 Plan”) which amended and restated the existing Tyler Technologies, Inc. 2018 Stock Option Plan (“the 2018 Plan”). Upon stockholder approval of the Amended and Restated 2018 Stock Incentive Plan, the remaining shares available for grant under the 2018 Plan were added to the shares authorized for grant under the Amended and Restated 2018 Stock Incentive Plan. Additionally, any awards previously granted under the 2018 Plan that expire unexercised or are forfeited are added to the shares authorized for grant under the Amended and Restated 2018 Stock Incentive Plan.
We grant stock awards under the Amended and Restated 2018 Stock Incentive Plan in the form of stock options, restricted stock units and performance share units. Stock options generally vest after three to five years of continuous service from the date of grant and have a contractual term of 10 years. Once options become exercisable, the employee can purchase shares of our common stock at the market price on the date we granted the option. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicable performance periods. We account for share-based compensation utilizing the fair value recognition pursuant to ASC 718, Stock Compensation.
As of December 31, 2024, there were 4.4 million shares available for future grants under the Amended and Restated 2018 Stock Incentive Plan from the 27.5 million shares previously approved by the shareholders.
Determining Fair Value of Stock Compensation
Valuation and Amortization Method. We estimate the fair value of stock option awards granted using the Black-Scholes option valuation model. For restricted stock unit and performance stock unit awards, we estimate fair value as market value on the date of grant. We amortize the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods.
Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The expected life represents the weighted-average period the stock options are expected to be outstanding based primarily on the options’ vesting terms, remaining contractual life and the employees’ expected exercise based on historical patterns.
Expected Volatility. Using the Black-Scholes option valuation model, we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock.
Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award.
Expected Dividend Yield. We have not paid any cash dividends on our common stock in more than ten years and we do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model.
Forfeitures. We recognize the effect of awards for which the requisite service period is not rendered when the award is forfeited (that is, we recognize the effect of forfeitures in compensation cost when they occur). Previously recognized compensation cost for an award is reversed in the period that the award is forfeited.
During fiscal years 2024 and 2023, no stock option awards were issued; therefore no Black-Scholes model assumptions are reportable. The following weighted average assumptions were used for options granted in 2022:
 Years Ended December 31,
 202420232022
Expected life (in years)— — 5.0
Expected volatility— — 28.3 %
Risk-free interest rate— — 3.3 %
Share-Based Award Activity
Stock Options
Options granted, exercised, forfeited and expired are summarized as follows:
 Number of
Shares		Weighted
Average Exercise
Price		Weighted
Average
Remaining
Contractual Life
(Years)		Aggregate
Intrinsic Value
Outstanding at December 31, 20231,225 $229.63   
Granted— —   
Exercised(486)200.84   
Forfeited— —   
Outstanding at December 31, 2024739 $248.53 4$242,627 
Exercisable at December 31, 2024699 $241.48 4$234,381 
We had unvested options to purchase approximately 40,000 shares with a weighted average grant date exercise price of $371.20 as of December 31, 2024, and unvested options to purchase approximately 98,000 shares with a weighted average grant date exercise price of $380.83 as of December 31, 2023.
Other information pertaining to option activity was as follows during the twelve months ended December 31:
 202420232022
Weighted average grant-date fair value of stock options granted$— $— $108.99 
Total intrinsic value of stock options exercised$159,022 $58,261 $43,160 
Restricted Stock Units and Performance Stock Units
The following table summarizes restricted stock unit and performance stock unit activity during the periods presented (shares in thousands):
 Number of SharesWeighted Average Grant Date Fair Value per Share
Unvested at December 31, 2023
646 $384.43 
Granted290 512.31 
Vested(254)395.87 
Forfeited(21)408.12 
Unvested at December 31, 2024
661 $435.18 
Share-Based Compensation Expense
The following table summarizes share-based compensation expense related to share-based awards which is recorded in the consolidated statements of income:
 Years Ended December 31,
 202420232022
Subscriptions, maintenance and professional services$31,322 $26,607 $27,486 
Sales and marketing expense12,840 10,118 8,800 
General and administrative expense78,651 71,613 66,699 
Total share-based compensation expense122,813 108,338 102,985 
Total tax benefit(62,593)(32,997)(27,599)
Net decrease in net income$60,220 $75,341 $75,386 
As of December 31, 2024, we had $208.7 million of total unrecognized compensation cost related to unvested options and restricted stock units which is expected to be amortized over a weighted average amortization period of 2.2 years.
Employee Stock Purchase Plan
Under our Employee Stock Purchase Plan (“ESPP”) participants may contribute up to 15% of their annual compensation to purchase common shares of Tyler. The purchase price of the shares is equal to 85% of the closing price of Tyler shares on the last day of each quarterly offering period. As of December 31, 2024, there were 484,000 shares available for future issuances under the ESPP from the 2.0 million shares previously approved by the stockholders.
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EARNINGS PER SHARE
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
EARNINGS PER SHARE EARNINGS PER SHARE
The following table details the reconciliation of basic earnings per share to diluted earnings per share:
 Years Ended December 31,
 202420232022
Numerator for basic and diluted earnings per share:   
Net income$263,026 $165,919 $164,240 
Denominator:   
Weighted-average basic common shares outstanding42,611 42,024 41,544 
Assumed conversion of dilutive securities:   
Stock awards793 745 855 
Convertible Senior Notes93 — — 
Denominator for diluted earnings per share - Adjusted weighted-average shares43,497 42,769 42,399 
Earnings per common share:   
Basic$6.17 $3.95 $3.95 
Diluted$6.05 $3.88 $3.87 
Stock awards representing the right to purchase common stock of approximately 67,000 shares in 2024, 343,000 shares in 2023, and 372,000 shares in 2022, were not included in the computation of diluted earnings per share because their inclusion would have had an antidilutive effect.
We have used the if-converted method for calculating any potential dilutive effect of the Convertible Senior Notes on our diluted net income per share if our average stock price for the period exceeded the conversion price of $493.44 per share of common stock. Under the if-converted method, the Notes are assumed to be converted at the beginning of the period and the resulting common shares, if dilutive, are included in the denominator of the diluted earnings per share calculation for the entire period being presented. For the twelve months ended December 31, 2024, our average stock price for the period exceeded the conversion price resulting in a dilutive impact of the if-converted method as reflected in the table above. For the twelve months ended December 31, 2023 and 2022, our average stock price for the period did not exceed the conversion price, therefore there was no dilutive impact as reflected in the table above.
v3.25.0.1
LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
We lease office facilities, transportation and other equipment for use in our operations. Most of our leases are non-cancelable operating lease agreements with remaining terms of one to 10 years. Some of these leases include options to extend for up to six years. We have no finance leases as of December 31, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. We incurred no lease restructuring costs during 2024, $6.4 million in 2023 and $1.7 million in 2022, respectively.
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202420232022
Operating lease cost$9,166 $19,468 $14,743 
Short-term lease cost2,124 2,121 2,166 
Variable lease cost768 1,009 1,047 
Net lease cost$12,058 $22,598 $17,956 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
202420232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$12,578 $12,555 $13,562 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$4,404 $3,383 $25,171 
Lease term and discount rate:
Weighted average remaining lease term (years)677
Weighted average discount rate3.22 %1.59 %1.57 %
As of December 31, 2024, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2025$10,675 
20268,387 
20277,458 
20284,624 
20293,698 
Thereafter10,742 
Total lease payments45,584 
Less: Interest(5,150)
Present value of operating lease liabilities$40,434 
Rental income from third parties
We own office buildings in Bangor, Falmouth, Yarmouth and Orono, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; Moraine, Ohio; and Kingston Springs, Tennessee. We lease space in some of these buildings to third-party tenants, one of which was formerly a related party (see Note 18, “Related Party Transactions”). The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2025 and 2028, and some have options to extend the lease for up to 10 years. We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset.
Rental income from third-party tenants was $3.2 million in 2024, $2.1 million in 2023, and $1.7 million in 2022. Rental income is included in hardware and other revenue on the consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2025$2,270 
20261,274 
2027982 
2028704 
2029— 
Total $5,230 
As of December 31, 2024, we had no additional significant operating or finance leases that had not yet commenced.
LEASES LEASES
We lease office facilities, transportation and other equipment for use in our operations. Most of our leases are non-cancelable operating lease agreements with remaining terms of one to 10 years. Some of these leases include options to extend for up to six years. We have no finance leases as of December 31, 2024. Right-of-use lease assets and lease liabilities for our operating leases are recorded in the consolidated balance sheets. We incurred no lease restructuring costs during 2024, $6.4 million in 2023 and $1.7 million in 2022, respectively.
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202420232022
Operating lease cost$9,166 $19,468 $14,743 
Short-term lease cost2,124 2,121 2,166 
Variable lease cost768 1,009 1,047 
Net lease cost$12,058 $22,598 $17,956 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
202420232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$12,578 $12,555 $13,562 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$4,404 $3,383 $25,171 
Lease term and discount rate:
Weighted average remaining lease term (years)677
Weighted average discount rate3.22 %1.59 %1.57 %
As of December 31, 2024, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2025$10,675 
20268,387 
20277,458 
20284,624 
20293,698 
Thereafter10,742 
Total lease payments45,584 
Less: Interest(5,150)
Present value of operating lease liabilities$40,434 
Rental income from third parties
We own office buildings in Bangor, Falmouth, Yarmouth and Orono, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; Moraine, Ohio; and Kingston Springs, Tennessee. We lease space in some of these buildings to third-party tenants, one of which was formerly a related party (see Note 18, “Related Party Transactions”). The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2025 and 2028, and some have options to extend the lease for up to 10 years. We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset.
Rental income from third-party tenants was $3.2 million in 2024, $2.1 million in 2023, and $1.7 million in 2022. Rental income is included in hardware and other revenue on the consolidated statements of income. Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2025$2,270 
20261,274 
2027982 
2028704 
2029— 
Total $5,230 
As of December 31, 2024, we had no additional significant operating or finance leases that had not yet commenced.
v3.25.0.1
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
We provide a defined contribution plan for the majority of our employees meeting minimum service requirements. Eligible employees can contribute up to 30% of their current compensation to the plan subject to certain statutory limitations. We contribute up to a maximum of 3% of an employee’s compensation to the plan. We made contributions to the plan and charged operating results $19.1 million in 2024, $18.6 million in 2023, and $17.5 million in 2022.
v3.25.0.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
In April 2023, we entered into an arm’s length lease agreement under which we lease 25,000 square feet of office space in our Lubbock, Texas, office facility to a company co-owned by a former member of our Board of Directors. The lease agreement, which commenced on April 1, 2023, and was amended on April 8, 2024, has an initial term of five years with a pro-rata base rent of $25,000 per month until December 1, 2023, followed by a base rent of $58,000 for the next year and a 2.5% annual increase thereafter. We recognized rental income of $697,000 and $150,000 under this lease for the years ended December 31, 2024 and 2023, respectively.
v3.25.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Litigation
During the first quarter of 2022, we received a notice of termination for convenience under a contractual arrangement with a state government client. Upon receipt of the termination notice, we ceased performing services under the contractual arrangement and sought payment of contractually owed fees of approximately $15 million in connection with the termination for convenience.
The client was unresponsive to our outreach for several months, and on August 23, 2022, we filed a lawsuit to enforce our rights and remedies under the applicable contractual arrangement. The client subsequently asked us to negotiate directly with the client to attempt to resolve the dispute. The negotiations were not successful, and on March 20, 2024, we reinitiated our lawsuit. Although we believe our products and services were delivered in accordance with the terms of our contract and that we are entitled to payment in connection with the termination for convenience, at this time the matter remains unresolved. We can provide no assurances that we will not incur additional costs as we pursue our rights and remedies under the contract.
Purchase Commitments
We have contractual obligations for third-party technology used in our solutions and for other services that we purchase as part of our normal operations. In certain cases, these arrangements require a minimum annual purchase commitment by us. As of December 31, 2024, the remaining aggregate minimum purchase commitment under these arrangements was approximately $646 million through 2031. Future minimum payments related to purchase commitments based on contractual agreements are as follows:
Year ending December 31,Amount
2025$79,154 
202686,202 
202782,282 
202890,213 
202993,436 
Thereafter214,373 
Total$645,660 
v3.25.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
On January 31, 2025, we completed an acquisition for the total consideration of approximately $18.5 million, paid in all cash, subject to certain post-closing adjustments including working capital holdbacks.
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Pay vs Performance Disclosure      
Net income $ 263,026 $ 165,919 $ 164,240
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
The Board of Directors is responsible for overseeing Tyler’s senior management in the execution of its risk-management responsibilities and for assessing Tyler’s overall approach to risk management. The Board exercises these responsibilities periodically as part of its meetings and through its committees, each of which examines various components of enterprise risk. The Audit Committee oversees management of financial risks, as well as Tyler’s policies with respect to risk assessment and risk management, including but not limited to information security risk.
Tyler’s Chief Information Security Office (“CISO”) leads the information security responsibility at Tyler. He has spent his career in information security, joining Tyler in 2018 and previously working in the payments and semiconductor manufacturing industries. He is a Certified Information Systems Security Professional (“CISSP”) and a Certified Data Privacy Solutions Engineer (“CDPSE”).
The CISO reports directly to Tyler’s Chief Operations Officer (“COO”), who in turn reports to the President & Chief Executive Officer. Tyler believes this organizational structure provides a holistic and collaborative approach to cybersecurity risk management, as the COO also oversees Tyler’s information technology, technology, and cloud operations teams, with whom the CISO works regularly and closely. The CISO also has a dotted line to the Chair of the Audit Committee.
The CISO leads a full-time Security Risk & Compliance team that assesses, identifies and manages material risks from cybersecurity threats and oversees our Information Security Risk Management Program. These efforts include the identification, assessment, and treatment of potential harms to Tyler’s technology, data, and intellectual property. The team continually monitors the potential for harm to help manage the level of risk.
To help protect client information and Tyler data, Tyler leverages both internal and external resources, including third-party assessments and threat intelligence services, to work to identify and respond to information security risks. For example:
Internal Resources: Our full-time information security team focuses on managing incoming security risks and developing preventative responses to potential future risks, using tools targeted at people, processes, and technology. These efforts include security training for all employees at hire and on an annual basis thereafter, unannounced security testing (particularly on topics such as phishing), and periodic security alert messages for education or urgent security communications.
We repeatedly test our software during the development cycle, including internal assessments of our flagship solutions. We work closely with Tyler’s Data Privacy Officer and her team to educate Tyler team members on complementary privacy-by-design principles. We continuously iterate on access management policies for both technological and physical resources.
Tyler staffs an internal incident response team designed to launch when a potential or suspected security incident is reported to or identified by Tyler. That team is composed of a multi-disciplinary group of Tyler team members, including representatives from the security, privacy, communications, and relevant business unit teams, as well as outside threat intelligence, forensic and legal advisors that are called on as needed. The incident response team’s goal is to confirm, contain, mitigate, and remediate the incident, as applicable, and to conduct a “lessons learned” process when the incident response is completed.
To help ensure disaster recovery and business continuity, Tyler maintains a business continuity plan with comprehensive procedures designed to recover Tyler and client assets quickly and effectively following a service disruption. Tyler’s policies and procedures with respect to disaster recovery, as well as its process to help recover critical technology platforms, data center infrastructure, and operations, are updated regularly, tested annually, and reviewed by third-party auditors. We also partner with our Internal Audit team to regularly assess and respond to evolving risk management findings.
External resources: Tyler leverages third-party assessments, intelligence services, audits, and reporting obligations to provide additional layers of accountability, monitoring and testing. This includes a bug reporting program that we publish that invites any third party to report a security vulnerability they have identified. We also use a Qualified Security Assessor to perform an annual Payment Card Industry Data Security Standards assessment that tests our credit card data controls, and we undergo an annual System & Organizational Control audit to generate a report of our key compliance controls and objectives, among other things. Given our technology in the courts and public safety markets, we also manage compliance with Criminal Justice Information Systems security standards that are established by the Federal Bureau of Investigation (“FBI”), and we partner with our clients and third-party Criminal Justice Information Services (“CJIS”) compliance consultants to ensure that we adhere to the requirements applicable to us.
Technology: Tyler also utilizes technology to help harden our environment from internal and external threats. We leverage a third-party endpoint detection management solution and threat intelligence software, as well as web-filtering tools, a multi-factor authentication tool, and related tools that support our “defense-in-depth” strategy. These tools are operated by subject-matter experts that report to the CISO, and Tyler employees are educated on the tooling to the extent applicable.
Third Parties: Our management of third-party security risks is an area of heightened focus for us. Over the past several years, we have worked to formalize our security due diligence process for each acquisition target, such that security is a formally embedded component of our due diligence and typically involves our independent testing of the target technology prior to closing the acquisition. Where a vulnerability or risk is identified, we generally require remediation by the target or attempt to ensure a remediation path post-closing, with contractual protections and liability parameters set forth in the purchase agreement.
We strive to enhance our vendor risk analysis, with a goal of universalizing the use of form cybersecurity questionnaires and/or security addenda where applicable. We consider the results of a security and privacy review of material vendor contracts, as well as our material contracts with business partners. Our goal is to proactively identify and manage potential security risks and vulnerabilities, and to clearly articulate the responsibility – whether shared, divided, flow-down, or otherwise – of Tyler, our acquisition targets, our vendors, and/or our business partners. We expect third parties – including our clients – to report cybersecurity incidents to us so that we can assess the impact of the incident on us.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] The Board of Directors is responsible for overseeing Tyler’s senior management in the execution of its risk-management responsibilities and for assessing Tyler’s overall approach to risk management. The Board exercises these responsibilities periodically as part of its meetings and through its committees, each of which examines various components of enterprise risk. The Audit Committee oversees management of financial risks, as well as Tyler’s policies with respect to risk assessment and risk management, including but not limited to information security risk.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block]
In 2022, we formalized a multi-layered security governance structure, with the goal of ensuring that responsibilities are clear, information is effectively communicated, priorities are coordinated, and proper oversight is provided. Each “layer” of the governance structure has unique meeting, reporting, and action cadences to help ensure consistent communication between our security working groups, our leadership team, and our Board of Directors.
On at least a quarterly basis, Tyler’s CISO provides a formal report to the Audit Committee and to the Board of Directors. Our Audit Committee Chair and CISO also communicate on an as-needed basis between those quarterly reports. In 2022, Tyler’s Lead Independent Director completed the requirements to receive the CERT Certificate in Cybersecurity Oversight from the Software Engineering Institute at Carnegie Mellon University. Another Tyler director possesses more than 38 years of Department of Defense experience in cyberspace operations and major computer network architectures.
Tyler’s governance practices are supported by several segments of Tyler’s senior leadership, management, and teams. This includes security working groups and a security governance committee. The security governance committee, which meets on a quarterly basis to review the threat landscape and security initiatives at Tyler, is led by the CISO and includes senior leadership from Tyler’s legal and operational teams, as well as the president of each of Tyler’s three operating groups and Tyler’s President & CEO.
Operationalizing Cybersecurity Risk Management
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block]
The Board of Directors is responsible for overseeing Tyler’s senior management in the execution of its risk-management responsibilities and for assessing Tyler’s overall approach to risk management. The Board exercises these responsibilities periodically as part of its meetings and through its committees, each of which examines various components of enterprise risk. The Audit Committee oversees management of financial risks, as well as Tyler’s policies with respect to risk assessment and risk management, including but not limited to information security risk.
Tyler’s Chief Information Security Office (“CISO”) leads the information security responsibility at Tyler. He has spent his career in information security, joining Tyler in 2018 and previously working in the payments and semiconductor manufacturing industries. He is a Certified Information Systems Security Professional (“CISSP”) and a Certified Data Privacy Solutions Engineer (“CDPSE”).
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] The CISO reports directly to Tyler’s Chief Operations Officer (“COO”), who in turn reports to the President & Chief Executive Officer. Tyler believes this organizational structure provides a holistic and collaborative approach to cybersecurity risk management, as the COO also oversees Tyler’s information technology, technology, and cloud operations teams, with whom the CISO works regularly and closely. The CISO also has a dotted line to the Chair of the Audit Committee.
Cybersecurity Risk Role of Management [Text Block]
In 2022, we formalized a multi-layered security governance structure, with the goal of ensuring that responsibilities are clear, information is effectively communicated, priorities are coordinated, and proper oversight is provided. Each “layer” of the governance structure has unique meeting, reporting, and action cadences to help ensure consistent communication between our security working groups, our leadership team, and our Board of Directors.
On at least a quarterly basis, Tyler’s CISO provides a formal report to the Audit Committee and to the Board of Directors. Our Audit Committee Chair and CISO also communicate on an as-needed basis between those quarterly reports. In 2022, Tyler’s Lead Independent Director completed the requirements to receive the CERT Certificate in Cybersecurity Oversight from the Software Engineering Institute at Carnegie Mellon University. Another Tyler director possesses more than 38 years of Department of Defense experience in cyberspace operations and major computer network architectures.
Tyler’s governance practices are supported by several segments of Tyler’s senior leadership, management, and teams. This includes security working groups and a security governance committee. The security governance committee, which meets on a quarterly basis to review the threat landscape and security initiatives at Tyler, is led by the CISO and includes senior leadership from Tyler’s legal and operational teams, as well as the president of each of Tyler’s three operating groups and Tyler’s President & CEO.
Operationalizing Cybersecurity Risk Management
We firmly believe – and communicate regularly – that all Tyler team members have a vital role to play in cybersecurity risk management. We identify their responsibilities as falling into three key areas:
•Participating in training to identify and promptly report risks;
•Staying informed by reading all pertinent information and security communications; and
•Actively engaging in ongoing training initiatives.
We observe Cybersecurity Awareness month with interactive weekly training, workshops, and additional resources on strong cybersecurity practices. In addition to Cybersecurity Awareness month, additional cybersecurity training and awareness initiatives occur throughout the calendar year, including annual security compliance training; a monthly Cybersecurity Awareness Series composed of articles and training highlighting current cybersecurity concerns; company-wide communication as necessary to alert team members of potential threats; and weekly security-related videos with opportunities to win prizes through participation. We track participation in training events and boast high participation rates, with continuous reflection on strategies for driving participation yet higher.
In 2022, we expanded our Security Champions Program to identify a resource on our various application teams who proactively operationalizes security best practices on their team. This program helps to ensure that security measures are built into our programs from development to deployment. We have over 100 security champions who can collaboratively advocate security tools throughout the lifecycle of our applications.
Measuring Cybersecurity Risks
In order to evaluate whether a cybersecurity risk is material to Tyler, we take a multi-disciplinary approach to assessing qualitative and quantitative factors. The cross-functional team includes senior leadership from Tyler’s information security, legal, finance, and accounting teams, as well as senior leadership from the impacted business unit(s).
When an incident is reported, Tyler assembles its incident response team and initiates its incident response process as soon as possible. Working with the incident response team, the CISO aims to take an initial measurement of qualitative and quantitative metrics, typically within 24 hours of the incident report, to help determine whether Tyler’s Chief Financial Officer (“CFO”) and Chief Accounting Officer (“CAO”) should be engaged to do a deeper analysis of quantitative factors. The CFO and CAO are expected to engage with the Company’s Chief Legal Officer (“CLO”), Chief Administrative Officer (“CAdO”), and Audit Committee Chair to evaluate, holistically, not just the quantitative factors but the qualitative factors as well. If that team determines that the incident may represent a risk of national security, the CLO may contact the US attorney general for a disclosure delay of up to 30 days, or if applicable the team may coordinate to prepare and publish a Form 8-K, if management believes the materiality threshold has been reached. Whether or not the incident is deemed material, the incident response team will monitor the incident on an ongoing basis to attempt to ensure containment, mitigation, and remediation, as well as to monitor for evolving factors that subsequently push the incident to a materiality threshold that requires disclosure and reporting.
Quantitative metrics for evaluating a security incident include the potential or actual financial loss, the costs of impacted data records, remediation costs, and/or third-party expenses. Qualitative factors include potential or actual impacts to Tyler’s reputation and/or competitiveness, disruptions to Tyler’s business, and/or risk of litigation or regulatory action. In evaluating an incident, Tyler also works to assess whether the incident is related to another recent incident and whether the incident may represent a threat to national security. Tyler does not expect an incident to rise to that level unless Tyler infrastructure is deemed “critical infrastructure” by the Cybersecurity and Infrastructure Security Agency (“CISA”).
Notwithstanding these ongoing efforts and our multi-layered approach to cybersecurity, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us. While Tyler maintains cybersecurity insurance, the costs related to cybersecurity threats or disruptions may not be fully insured.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block]
The Board of Directors is responsible for overseeing Tyler’s senior management in the execution of its risk-management responsibilities and for assessing Tyler’s overall approach to risk management. The Board exercises these responsibilities periodically as part of its meetings and through its committees, each of which examines various components of enterprise risk. The Audit Committee oversees management of financial risks, as well as Tyler’s policies with respect to risk assessment and risk management, including but not limited to information security risk.
Tyler’s Chief Information Security Office (“CISO”) leads the information security responsibility at Tyler. He has spent his career in information security, joining Tyler in 2018 and previously working in the payments and semiconductor manufacturing industries. He is a Certified Information Systems Security Professional (“CISSP”) and a Certified Data Privacy Solutions Engineer (“CDPSE”).
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] He has spent his career in information security, joining Tyler in 2018 and previously working in the payments and semiconductor manufacturing industries. He is a Certified Information Systems Security Professional (“CISSP”) and a Certified Data Privacy Solutions Engineer (“CDPSE”).
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block]
In 2022, we formalized a multi-layered security governance structure, with the goal of ensuring that responsibilities are clear, information is effectively communicated, priorities are coordinated, and proper oversight is provided. Each “layer” of the governance structure has unique meeting, reporting, and action cadences to help ensure consistent communication between our security working groups, our leadership team, and our Board of Directors.
On at least a quarterly basis, Tyler’s CISO provides a formal report to the Audit Committee and to the Board of Directors. Our Audit Committee Chair and CISO also communicate on an as-needed basis between those quarterly reports. In 2022, Tyler’s Lead Independent Director completed the requirements to receive the CERT Certificate in Cybersecurity Oversight from the Software Engineering Institute at Carnegie Mellon University. Another Tyler director possesses more than 38 years of Department of Defense experience in cyberspace operations and major computer network architectures.
Tyler’s governance practices are supported by several segments of Tyler’s senior leadership, management, and teams. This includes security working groups and a security governance committee. The security governance committee, which meets on a quarterly basis to review the threat landscape and security initiatives at Tyler, is led by the CISO and includes senior leadership from Tyler’s legal and operational teams, as well as the president of each of Tyler’s three operating groups and Tyler’s President & CEO.
Operationalizing Cybersecurity Risk Management
We firmly believe – and communicate regularly – that all Tyler team members have a vital role to play in cybersecurity risk management. We identify their responsibilities as falling into three key areas:
•Participating in training to identify and promptly report risks;
•Staying informed by reading all pertinent information and security communications; and
•Actively engaging in ongoing training initiatives.
We observe Cybersecurity Awareness month with interactive weekly training, workshops, and additional resources on strong cybersecurity practices. In addition to Cybersecurity Awareness month, additional cybersecurity training and awareness initiatives occur throughout the calendar year, including annual security compliance training; a monthly Cybersecurity Awareness Series composed of articles and training highlighting current cybersecurity concerns; company-wide communication as necessary to alert team members of potential threats; and weekly security-related videos with opportunities to win prizes through participation. We track participation in training events and boast high participation rates, with continuous reflection on strategies for driving participation yet higher.
In 2022, we expanded our Security Champions Program to identify a resource on our various application teams who proactively operationalizes security best practices on their team. This program helps to ensure that security measures are built into our programs from development to deployment. We have over 100 security champions who can collaboratively advocate security tools throughout the lifecycle of our applications.
Measuring Cybersecurity Risks
In order to evaluate whether a cybersecurity risk is material to Tyler, we take a multi-disciplinary approach to assessing qualitative and quantitative factors. The cross-functional team includes senior leadership from Tyler’s information security, legal, finance, and accounting teams, as well as senior leadership from the impacted business unit(s).
When an incident is reported, Tyler assembles its incident response team and initiates its incident response process as soon as possible. Working with the incident response team, the CISO aims to take an initial measurement of qualitative and quantitative metrics, typically within 24 hours of the incident report, to help determine whether Tyler’s Chief Financial Officer (“CFO”) and Chief Accounting Officer (“CAO”) should be engaged to do a deeper analysis of quantitative factors. The CFO and CAO are expected to engage with the Company’s Chief Legal Officer (“CLO”), Chief Administrative Officer (“CAdO”), and Audit Committee Chair to evaluate, holistically, not just the quantitative factors but the qualitative factors as well. If that team determines that the incident may represent a risk of national security, the CLO may contact the US attorney general for a disclosure delay of up to 30 days, or if applicable the team may coordinate to prepare and publish a Form 8-K, if management believes the materiality threshold has been reached. Whether or not the incident is deemed material, the incident response team will monitor the incident on an ongoing basis to attempt to ensure containment, mitigation, and remediation, as well as to monitor for evolving factors that subsequently push the incident to a materiality threshold that requires disclosure and reporting.
Quantitative metrics for evaluating a security incident include the potential or actual financial loss, the costs of impacted data records, remediation costs, and/or third-party expenses. Qualitative factors include potential or actual impacts to Tyler’s reputation and/or competitiveness, disruptions to Tyler’s business, and/or risk of litigation or regulatory action. In evaluating an incident, Tyler also works to assess whether the incident is related to another recent incident and whether the incident may represent a threat to national security. Tyler does not expect an incident to rise to that level unless Tyler infrastructure is deemed “critical infrastructure” by the Cybersecurity and Infrastructure Security Agency (“CISA”).
Notwithstanding these ongoing efforts and our multi-layered approach to cybersecurity, we may not be successful in preventing or mitigating a cybersecurity incident that could have a material adverse effect on us. While Tyler maintains cybersecurity insurance, the costs related to cybersecurity threats or disruptions may not be fully insured.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
PRINCIPLES OF CONSOLIDATION
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include our parent company and 62 subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). During the twelve months ended December 31, 2024, 2023 and 2022, we had approximately $169,000 and $518,000 other comprehensive income, net of taxes, and $798,000 of other comprehensive loss, net of tax, from our available-for-sale investment holdings, respectively.
USE OF ESTIMATES
USE OF ESTIMATES
The preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations and loss contingencies; the recoverability of goodwill and other intangible assets and estimated useful lives of intangible assets; and determining the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from estimates.
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS
Cash in excess of that necessary for operating requirements is invested in short-term, highly liquid, income-producing investments. Investments with original maturities of three months or less are classified as cash and cash equivalents, which primarily consist of cash on deposit with several banks and money market funds. Cash and cash equivalents are stated at cost, which approximates market value.
REVENUE RECOGNITION
REVENUE RECOGNITION
Nature of Products and Service
We account for revenue in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. We earn the majority of our revenues from subscription-based services and post-contract client support (“PCS” or “maintenance”). Other sources of revenue are professional services, software licenses and royalties, and hardware and other. Revenue is recognized upon transfer of control of promised products or services to clients in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps:
•Identification of the contract, or contracts, with a client
•Identification of the performance obligations in the contract
•Determination of the transaction price
•Allocation of the transaction price to the performance obligations in the contract
•Recognition of revenue when, or as, we satisfy a performance obligation
Our software arrangements with clients contain multiple performance obligations that range from software licenses, installation, training, consulting, software modification and customization to meet specific client needs; hosting; and PCS. For these contracts, we account for individual performance obligations separately when they are distinct. We evaluate whether separate performance obligations can be distinct or should be accounted for as one performance obligation. Arrangements that include professional services, such as training or installation, are evaluated to determine whether those services are highly interdependent or interrelated to the product’s functionality. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, client demographics, and the number and types of users within our contracts.
For arrangements that involve significant production, modification, or customization of the software, or where professional services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the client over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent.
Revenue is recognized net of allowances for losses and sales adjustments and any taxes collected from clients, which are subsequently remitted to governmental authorities.
Subscription-Based Services
Subscription-based services consist primarily of revenues derived from SaaS arrangements and transaction-based fees. For SaaS arrangements, we evaluate whether the client has the contractual right to take possession of our software at any time during the hosting period without significant penalty and whether the client can feasibly maintain the software on the client’s hardware or enter into another arrangement with a third party to host the software. We recognize SaaS services ratably over the term of the arrangement, which range from one to 10 years, but are typically for periods of generally one to three years. For professional services associated with certain SaaS arrangements, we have concluded that the services are not distinct, and we recognize the revenue ratably over the remaining contractual period once we have provided the client access to the software.
Transaction-based fees primarily relate to digital government services and online payment services, which are sometimes offered with the assistance of third-party vendors. When we are the principal in a transaction, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the client) and record the net amount as revenue.
For transaction-based revenues from digital government services and online payments, we have the right to charge the client an amount that directly corresponds with the value to the client of our performance to date. Therefore, we recognize revenues for these services over time based on the amount billable to the client. In some cases, we are paid on a fixed fee basis and recognize the revenue ratably over the contractual period. Typically, the structure of our arrangements does not give rise to variable consideration. However, in those instances whereby variable consideration exists, we include in our estimates, additional revenues for variable consideration when we believe we have an enforceable right, the amount can be estimated reliably and its realization is probable.
Costs of performing services under subscription-based arrangements are expensed as incurred, except for certain direct and incremental contract origination associated with SaaS arrangements. Such direct and incremental costs are capitalized and amortized ratably over the period of benefit.
Post-Contract Client Support (Maintenance)
Our clients generally enter into PCS agreements when they purchase our software licenses. PCS includes telephone support, bug fixes, and rights to upgrades on a when-and-if available basis. PCS is considered distinct when purchased with our software licenses. Our PCS agreements are typically renewable annually. PCS is recognized over time on a straight-line basis over the period the PCS is provided. All significant costs and expenses associated with PCS are expensed as incurred.
Professional Services
When professional services are distinct, the fee allocable to the service element is recognized over the time we perform the services and is billed on a time and material or milestone basis. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met.
Software Licenses and Royalties
Many of our software arrangements involve “off-the-shelf” software. We recognize the revenue allocable to “off-the-shelf” software licenses and specified upgrades at a point in time when control of the software license transfers to the client, unless the software is not considered distinct. We consider “off-the-shelf” software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the client for the client’s purpose upon installation, and remaining services such as training are not considered highly interdependent or interrelated to the product's functionality. For arrangements that involve significant production, modification or customization of the software, or where professional services are otherwise not considered distinct, we recognize revenue over time by measuring progress-to-completion.
Software license fees are billed in accordance with the contract terms. Typically, a majority of the fee is due when access to the software license is made available to the client and the remainder of the fee is due over a passage of time stipulated by the contract.
We recognize royalty revenue when the sale occurs under the terms of our third-party royalty arrangements. Currently, our third-party royalties are recognized on an estimated basis and adjusted if needed, when we receive notice of amounts we are entitled to receive. We typically receive notice of royalty revenue we are entitled to and amounts are billed on a quarterly basis in the quarter immediately following the royalty reporting period, and adjustments have not been significant.
Computer Hardware Equipment
Revenue allocable to computer hardware equipment is recognized at a point in time when control of the equipment is transferred to the client.
Refer to Note 3 - “Disaggregation of Revenue” for further information, including the economic factors that affect the nature, amount, and uncertainty of revenues and cash flows of our various revenue categories.
Contract Balances 
Accounts receivable and allowance for losses and sales adjustments
Timing of revenue recognition may differ from the timing of invoicing to clients. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when invoicing occurs prior to revenue recognition. For multi-year agreements, we generally invoice clients annually at the beginning of each annual coverage period.
In connection with certain professional services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) professional services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (2) software revenue for which we have recognized revenue at the point in time when the software is made available to the client but the billing has not yet been submitted to the client; (3) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5% and 15% retention) until final and satisfactory project completion is achieved; and (4) in a limited number of cases, extended payment terms, which may be granted to clients with whom we generally have a long-term relationship and favorable collection history.
Accounts receivable is as follows:
 Years ended December 31,
 20242023
Accounts receivable - current
$587,634 $619,704 
Accounts receivable - long term
7,153 8,988 
Total accounts receivable
$594,787 $628,692 
Total accounts receivable, including total current and long-term accounts receivable, net of allowance for losses and sales adjustments, was $594.8 million and $628.7 million, at December 31, 2024, and December 31, 2023, respectively. We have recorded unbilled receivables of $115.6 million and $119.2 million at December 31, 2024, and December 31, 2023, respectively. Unbilled receivables expected to be collected within one year have been included with the current portion of accounts receivable in the accompanying consolidated balance sheets. Unbilled receivables and retention receivables expected to be collected past one year have been included with long-term portion of accounts receivable in the accompanying consolidated balance sheets. Included in unbilled receivables are retention receivables of $11.4 million and $9.8 million at December 31, 2024, and December 31, 2023, respectively, which become payable upon the completion of the contract or completion of our fieldwork and formal hearings.
Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide clients with simplified and predictable ways of purchasing our products and services, not to receive financing from our clients or to provide clients with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises term licenses that are invoiced annually with revenue recognized upfront.
We maintain allowances for losses and sales adjustments, which losses are recorded against revenue at the time the loss is incurred. Because most of our clients are domestic governmental entities, we rarely incur a credit loss resulting from the inability of a client to make required payments. Consequently, we have not recorded a reserve for credit losses. Events or changes in circumstances that indicate the carrying amount for the allowances for losses and sales adjustments may require revision, include, but are not limited to, managing our client’s expectations regarding the scope of the services to be delivered and defects or errors in new versions or enhancements of our software products. Our allowances for losses and sales adjustments are $17.3 million and $22.8 million at December 31, 2024, and December 31, 2023, respectively.
The following table summarizes the changes in the allowance for losses and sales adjustments:
 Years ended December 31,
 20242023
Balance at beginning of year$22,829 $14,761 
Provisions (reductions in reserve) for losses and sales adjustments - accounts receivable
(5,504)8,233 
Collections of accounts previously written off— (165)
Balance at end of year$17,325 $22,829 
Deferred Revenue
The majority of deferred revenue consists of deferred subscription-based services revenue that has been billed based on contractual terms in the underlying arrangement, with the remaining balance consisting of payments received in advance of revenue being earned under maintenance, software licensing, professional services, and hardware installation. Refer to Note 4 - “Deferred Revenue and Performance Obligations” for further information, including deferred revenue by segment and changes in deferred revenue during the period.
Deferred Commissions
Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a client. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be generally three to seven years. We utilize the “portfolio approach” practical expedient, which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would not differ materially from applying the guidance to individual contracts. Using the “portfolio approach”, we determine the period of benefit by taking into consideration our client contracts, our technology life-cycle and other factors. Sales commissions for renewal contracts are generally not paid in connection with the renewal of a contract. In the small number of instances where a commission is paid on a renewal, it is not commensurate with the commission paid on the initial sale and is recognized over the term of renewal, which is generally one year.
Deferred commissions have been included with prepaid expenses for the current portion and non-current other assets for the long-term portion in the accompanying consolidated balance sheets. Amortization expense related to deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of income. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Refer to Note 5 - “Deferred Commissions” for further information.
INCOME TAXES
INCOME TAXES
Income taxes are accounted for under the asset and liability method. Deferred taxes arise because of different treatment between financial statement accounting and tax accounting, known as “temporary differences”. We record the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in the future periods) and “deferred tax liabilities” (generally items that we received a tax deduction for, which have not yet been recorded in the income statement). The deferred tax assets and liabilities are measured using enacted tax rules and laws that are expected to be in effect when the temporary differences are expected to be recovered or settled. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be “realized”.
We do not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable based on its technical merits. If the recognition threshold is met, we recognize a tax benefit based upon the largest amount of the tax benefit that is more likely than not probable, determined by cumulative probability of being realized upon settlement with the taxing authority. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income.
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION
We have a share-based award plan that provides for the grant of stock options, restricted stock units, and performance share units to key employees, directors and non-employee consultants. Stock options generally vest after three to five years of continuous service from the date of grant and have a contractual term of 10 years. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicable performance periods, which generally cliff vest in one or three years. We account for share-based compensation utilizing the fair value recognition pursuant to ASC 718, Stock Compensation. See Note 14, “Share-Based Compensation,” for further information.
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS
Accounting for the acquisition of a business requires the allocation of the purchase price to the various assets acquired and liabilities assumed at their respective fair values. The determination of fair value requires the use of significant estimates and assumptions, and in making these determinations, management uses all available information.
For tangible and identifiable intangible assets acquired in a business combination, management estimates the fair value of assets acquired and liabilities assumed based on quoted market prices, the carrying value of the acquired assets and widely accepted valuation techniques, including discounted cash flows and market multiple analyses. The assumptions made in performing these valuations include, but are not limited to, discount rates, future revenues and operating costs, projections of capital costs, and other assumptions believed to be consistent with those used by principal market participants.
Due to the specialized nature of these calculations, we engage third-party specialists to assist management in evaluating our assumptions as well as appropriately measuring the fair value of assets acquired and liabilities assumed. We adjust the preliminary purchase price allocation, as necessary, up to one year after the acquisition closing date as we obtain new information about facts and circumstances that existed as of the closing date. If actual results are materially different than the assumptions we used to determine fair value of the assets acquired and liabilities assumed as well as the estimated useful lives of the intangible assets acquired through a business combination, it is possible that adjustments to the carrying values of such assets and liabilities will have a material impact on our financial position and results of operations. See Note 6 , “Acquisitions,” for further information.
Contingent future cash payments related to acquisitions are recognized at fair value as of the acquisition date and included in the determination of the acquisition date purchase price. Subsequent changes in the fair value of the contingent future cash payments are recognized in earnings in the period that the change occurs. We have no contingent consideration outstanding as of December 31, 2024.
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill
We perform an impairment assessment annually on October 1, or more frequently if indicators of potential impairment exist, which includes evaluating qualitative and quantitative factors to assess the likelihood of an impairment of each reporting unit’s goodwill. If the conclusion of an impairment assessment is that it is more likely than not that the fair value of the reporting unit is more than its carrying value, goodwill is not considered impaired, and we are not required to perform the quantitative goodwill impairment test. If the conclusion of an impairment assessment is that it is more likely than not that the fair value is less than its carrying value, we perform the quantitative goodwill impairment test, which compares the fair value of the reporting unit to its carrying value. Impairments, if any, are based on the excess of the carrying amount over the fair value.
There have been no impairments to goodwill in any of the periods presented. See Note 8, “Goodwill and Other Intangible Assets,” for additional information.
Other Intangible Assets
We make judgments about the recoverability of purchased intangible assets other than goodwill whenever events or changes in circumstances indicate that an impairment may exist. Client base and acquired software each comprise approximately half of our purchased intangible assets other than goodwill. We review our client turnover each year for indications of impairment. Our client turnover has historically been very low. If indications of impairment are determined to exist, we measure the recoverability of assets by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. There have been no impairments of intangible assets in any of the periods presented.
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET
Property, equipment and purchased software are recorded at original cost and increased by the cost of any significant improvements after purchase. We expense maintenance and repairs when incurred. Depreciation and amortization is calculated using the straight-line method over the shorter of the asset’s estimated useful life or the term of the lease in the case of leasehold improvements.
To assess potential impairment, we periodically evaluate whether current facts or circumstances indicate that the carrying value of our property and equipment or other long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset or appropriate grouping of assets and the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. There was no impairment of long-lived assets in any of the periods presented.
SOFTWARE DEVELOPMENT COSTS
SOFTWARE DEVELOPMENT COSTS
Software development costs primarily consist of personnel costs. We capitalize software development costs upon the establishment of technological feasibility and prior to the availability of the product for general release to clients for software sold to third parties and capitalize application development stage costs of software developed for internal use. During the twelve months period ended December 31, 2024, 2023, and 2022, respectively, we capitalized approximately $29.4 million, $32.5 million, and $27.6 million of software development costs. We begin to amortize capitalized costs when a product is available for general release to clients or when internal use software is ready for its intended use. Amortization expense is determined on a product-by-product basis at a rate not less than straight-line basis over the software’s remaining estimated economic life of, generally, three to seven years.
RESEARCH AND DEVELOPMENT COSTS
RESEARCH AND DEVELOPMENT COSTS
Research and development costs are expensed as incurred and include compensation costs for engineering and product management personnel, third-party contractor expenses, software development tools and other expenses related to researching and developing new solutions or upgrading and enhancing existing solutions that do not qualify for capitalization, and allocated depreciation, facilities and IT support costs.
CONCENTRATIONS OF CREDIT RISK
CONCENTRATIONS OF CREDIT RISK
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade clients, and investments in marketable securities. Our cash and cash equivalents primarily consist of operating account balances and money market funds, which are maintained at several major domestic financial institutions and the balances often exceed insured amounts. As of December 31, 2024, we had cash and cash equivalents of $744.7 million. We perform periodic evaluations of the credit standing of these financial institutions.
Concentrations of credit risk with respect to receivables are limited due to the size and geographical diversity of our client base. As a result, we do not believe we have any significant concentrations of credit risk as of December 31, 2024.
LEASES
LEASES
We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities, current and long-term, on our consolidated balance sheets. We currently do not have any finance lease arrangements.
Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and initial direct costs incurred less lease incentives received. Our lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component.
INDEMNIFICATION
INDEMNIFICATION
Most of our software license agreements indemnify our clients in the event that the software sold infringes upon the intellectual property rights of a third party. These agreements typically provide that in such event we will either modify or replace the software so that it becomes non-infringing or procure for the client the right to use the software. We have not recorded a liability associated with these indemnifications, as we are not aware of any pending or threatened infringement actions that are possible losses. We believe the estimated fair value of these intellectual property indemnification clauses is minimal.
We have also agreed to indemnify certain officers and our Board members if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ liability insurance coverage to protect against any such losses. We have not recorded a liability associated with these indemnifications. Because of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal.
RECENT ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS AND NEW ACCOUNTING PRONOUNCEMENTS
RECENT ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07 - Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures. ASU 2023-07 enhances the disclosures required for reportable segments in annual and interim consolidated financial statements. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption is permitted. As of December 31, 2024, we adopted the new standard which has been applied retrospectively by the Company. This change did not have a significant impact on the Company’s financial statements and disclosures. See Note 2, “Segment and Related Information,” for further discussion.
NEW ACCOUNTING PRONOUNCEMENTS
In January 2025, the FASB issued ASU 2025-01 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarifies that all public business entities must adopt the guidance in ASU 2024-03 for annual reporting periods beginning after December 15, 2026, and for interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
In November 2024, the FASB issued ASU 2024-04 - Debt - Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. This guidance clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. It is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
In November 2024, the FASB issued ASU 2024-03 - Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. It is effective for annual reporting periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
In December 2023, the FASB issued ASU 2023-09 - Income Taxes (Topic ASC 740) Income Taxes. The ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024 with early adoption permitted. This guidance is not expected to have a material impact on the Company’s financial statements.
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Schedule of Allowance for Credit Loss Rollforward
Accounts receivable is as follows:
 Years ended December 31,
 20242023
Accounts receivable - current
$587,634 $619,704 
Accounts receivable - long term
7,153 8,988 
Total accounts receivable
$594,787 $628,692 
The following table summarizes the changes in the allowance for losses and sales adjustments:
 Years ended December 31,
 20242023
Balance at beginning of year$22,829 $14,761 
Provisions (reductions in reserve) for losses and sales adjustments - accounts receivable
(5,504)8,233 
Collections of accounts previously written off— (165)
Balance at end of year$17,325 $22,829 
v3.25.0.1
SEGMENT AND RELATED INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Segment Revenues and Operations
For the year ended December 31, 2024
Enterprise Software
Platform TechnologiesCorporateTotals
Revenues   
Subscriptions:
SaaS$559,842 $84,937 $— $644,779 
Transaction-based fees234,633 463,519 — 698,152 
Maintenance438,455 24,677 — 463,132 
Professional services
219,933 44,058 — 263,991 
Software licenses and royalties25,292 1,065 — 26,357 
Hardware and other33,447 992 6,953 41,392 
Total revenues1,511,602 619,248 6,953 2,137,803 
Cost of revenues excluding amortization of acquired software
706,952 411,351 46,775 1,165,078 
Segment gross profit804,650 207,897 (39,822)972,725 
Sales and marketing expense109,981 21,618 26,132 157,731 
General and administrative expense48,072 57,627 195,239 300,938 
Research and development expense100,182 12,126 5,631 117,939 
Segment operating income546,415 116,526 (266,824)396,117 
Depreciation and amortization expense37,179 89,372 16,886 143,437 
Software development expenditures7,612 15,558 6,231 29,401 
Capital expenditures15,283 4,168 1,084 20,535 
Segment assets$572,224 $416,635 $4,191,156 $5,180,015 
For the year ended December 31, 2023
Enterprise Software
Platform TechnologiesCorporateTotals
Revenues   
Subscriptions:
SaaS$459,544 $68,433 $— $527,977 
Transaction-based fees174,718 456,817 — 631,535 
Maintenance442,781 23,880 — 466,661 
Professional services
209,727 40,249 — 249,976 
Software licenses and royalties32,709 5,387 — 38,096 
Hardware and other30,176 — 7,330 37,506 
Total revenues1,349,655 594,766 7,330 1,951,751 
Cost of revenues excluding amortization of acquired software653,407 368,017 33,166 1,054,590 
Segment gross profit696,248 226,749 (25,836)897,161 
Sales and marketing expense102,325 25,196 22,249 149,770 
General and administrative expense57,481 64,406 186,688 308,575 
Research and development expense92,686 12,701 4,198 109,585 
Segment operating income443,756 124,446 (238,971)329,231 
Depreciation and amortization expense25,445 110,354 18,280 154,079 
Software development expenditures6,619 15,840 10,031 32,490 
Capital expenditures16,788 2,380 1,351 20,519 
Segment assets$631,117 $426,064 $3,619,482 $4,676,663 
For the year ended December 31, 2022
Enterprise Software
Platform TechnologiesCorporateTotals
Revenues    
Subscriptions:
SaaS$378,953 $49,573 $— $428,526 
Transaction-based fees147,370 436,408 583,778 
Maintenance444,143 24,312 — 468,455 
Professional services204,970 72,655 — 277,625 
Software licenses and royalties55,158 4,248 — 59,406 
Hardware and other26,592 — 5,822 32,414 
Total revenues1,257,186 587,196 5,822 1,850,204 
Cost of revenues excluding amortization of acquired software606,379 370,571 37,199 1,014,149 
Segment gross profit650,807 216,625 (31,377)836,055 
Sales and marketing expense100,786 23,224 11,733 135,743 
General and administrative expense39,083 61,191 167,050 267,324 
Research and development expense92,162 8,919 4,103 105,184 
Segment operating income418,776 123,291 (214,263)327,804 
Depreciation and amortization expense55,389 84,609 19,074 159,072 
Software development expenditures3,790 14,581 9,251 27,622 
Capital expenditures8,972 6,845 6,712 22,529 
Segment assets$636,377 $362,610 $3,688,430 $4,687,417 
Schedule of Reconciliation of Operating Income From Segments to Consolidated
Reconciliation of reportable segment gross profit to the Company's consolidated totals:Years Ended December 31,
202420232022
Segment gross profit$972,725 $897,161 $836,055 
Amortization of acquired software(36,964)(36,062)(52,192)
Gross profit$935,761 $861,099 $783,863 
Reconciliation of reportable segment operating income to the Company's consolidated totals:Years Ended December 31,
202420232022
Total segment operating income$396,117 $329,231 $327,804 
Amortization of acquired software(36,964)(36,062)(52,192)
Amortization of other intangibles(59,627)(74,632)(61,363)
Interest expense(5,931)(23,629)(28,379)
Other income, net14,572 3,328 1,723 
Income before income taxes$308,167 $198,236 $187,593 
v3.25.0.1
DISAGGREGATION OF REVENUE (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
Recurring revenues and non-recurring revenues recognized during the period are as follows:
For the year ended December 31, 2024
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$559,842 $84,937 $— $644,779 
Transaction-based fees234,633 463,519 — 698,152 
Maintenance438,455 24,677 — 463,132 
Total recurring revenues1,232,930 573,133 — 1,806,063 
Professional services
219,933 44,058 — 263,991 
Software licenses and royalties25,292 1,065 — 26,357 
Hardware and other33,447 992 6,953 41,392 
Total non-recurring revenues278,672 46,115 6,953 331,740 
Total revenues$1,511,602 $619,248 $6,953 $2,137,803 
For the year ended December 31, 2023
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$459,544 $68,433 $— $527,977 
Transaction-based fees174,718 456,817 — 631,535 
Maintenance442,781 23,880 — 466,661 
Total recurring revenues1,077,043 549,130 — 1,626,173 
Professional services
209,727 40,249 — 249,976 
Software licenses and royalties32,709 5,387 — 38,096 
Hardware and other30,176 — 7,330 37,506 
Total non-recurring revenues272,612 45,636 7,330 325,578 
Total revenues$1,349,655 $594,766 $7,330 $1,951,751 
For the year ended December 31, 2022
Enterprise Software
Platform TechnologiesCorporateTotals
Revenue:
Subscriptions:
SaaS$378,953 $49,573 $— $428,526 
Transaction-based fees147,370 436,408 — 583,778 
Maintenance444,143 24,312 — 468,455 
Total recurring revenues970,466 510,293 — 1,480,759 
Professional services
204,970 72,655 — 277,625 
Software licenses and royalties55,158 4,248 — 59,406 
Hardware and other26,592 — 5,822 32,414 
Total non-recurring revenues286,720 76,903 5,822 369,445 
Total revenues$1,257,186 $587,196 $5,822 $1,850,204 
v3.25.0.1
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Changes in Deferred Revenue
Total deferred revenue, including long-term, by segment is as follows:
December 31, 2024December 31, 2023
Enterprise Software$683,909 $589,295 
Platform Technologies36,117 39,597 
Corporate3,788 4,313 
Totals$723,814 $633,205 
Changes in total deferred revenue, including long-term, were as follows:
2024
Balance at beginning of year$633,205 
Deferral of revenue1,514,168 
Recognition of deferred revenue(1,423,559)
Balance at end of year$723,814 
v3.25.0.1
DEFERRED COMMISSIONS (Tables)
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Deferred Commissions
Deferred commissions are as follows:
 December 31, 2024December 31, 2023
Prepaid commissions
$18,037 $18,262 
Long-term deferred commissions
38,762 30,924 
Total deferred commissions
$56,799 $49,186 
Schedule of Deferred Commission and Amortization
Amortization expense related to deferred commissions is as follows:
Years Ended December 31,
202420232022
Amortization expense
$19,916 $18,589 $15,448 
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
Property and equipment, net consists of the following at December 31:
 Useful
Lives
(years)		20242023
Land— $23,163 $22,908 
Building and leasehold improvements
5-39
181,066 172,094 
Computer equipment and purchased software
3-5
99,156 118,178 
Furniture and fixtures534,495 34,881 
Transportation equipment5222 222 
  338,102 348,283 
Accumulated depreciation and amortization (174,327)(178,563)
Property and equipment, net $163,775 $169,720 
Schedule of Software Development Costs, Net
Software development costs, net consists of the following at December 31:
 Useful
Lives
(years)		20242023
Software development costs
3-7
$118,698 $92,395 
Accumulated amortization (42,581)(25,271)
Software development costs, net $76,117 $67,124 
Schedule of Amortization Expense for Software Development Costs
Amortization expense for software development costs is recorded to cost of revenues and general and administrative expense:
 202420232022
Amortization expense for software development costs recorded to cost of revenues
$18,806 $12,625 $6,507 
Amortization expense for software development costs recorded to general and administrative expense
1,601 930 1,424 
Total
$20,407 $13,555 $7,931 
Schedule of Estimated Annual Amortization Expense
Estimated annual amortization expense related to software development costs:
2025$23,050 
202620,082 
202715,162 
202811,168 
20295,348 
Thereafter1,307 
$76,117 
Estimated annual amortization expense related to other intangible assets:
2025$92,208 
202684,871 
202782,777 
202879,983 
202962,143 
Thereafter429,984 
$831,966 
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Changes in Carrying Amount of Goodwill
The changes in the carrying amount of goodwill for the two years ended December 31, 2024 are as follows:
 Enterprise SoftwarePlatform TechnologiesTotal
Balance as of 12/31/2022$834,693 $1,654,615 $2,489,308 
Goodwill acquired related to the purchase of CSI
19,421 — 19,421 
Goodwill acquired related to the purchase of ARInspect
— 13,627 13,627 
Goodwill acquired related to the purchase of ResourceX9,978 — 9,978 
Goodwill acquired related to the purchase of other acquisitions— (225)(225)
Transfer from ES to PT(27,090)27,090 — 
Balance as of 12/31/2023837,002 1,695,107 2,532,109 
Purchase price adjustments related to the purchase of prior year acquisitions
(235)(221)(456)
Balance as of 12/31/2024$836,767 $1,694,886 $2,531,653 
Schedule of Other Intangible Assets and Related Accumulated Amortization
Other intangible assets and related accumulated amortization consists of the following at December 31:
 20242023
Gross carrying amount of other intangibles:  
Client related intangibles
$958,924 $1,015,919 
Acquired software284,900 466,253 
Trade names5,320 45,002 
Leases acquired4,585 5,037 
 1,253,729 1,532,211 
Accumulated amortization(421,763)(603,341)
Total other intangibles, net$831,966 $928,870 
Schedule of Allocation of Acquisition Intangible Assets
The amortization periods of other intangible assets is summarized in the following table:
 December 31, 2024December 31, 2023
 Gross
Carrying
Amount		Weighted
Average
Amortization
Period		Accumulated AmortizationGross
Carrying
Amount		Weighted
Average
Amortization
Period		Accumulated Amortization
Non-amortizable intangibles:      
Goodwill$2,531,653 — $— $2,532,109 — $— 
Amortizable intangibles:      
Client related intangibles
$958,924 18 years$261,407 $1,015,919 18 years$263,672 
Acquired software284,900 8 years152,317 466,253 7 years296,704 
Trade names5,320 12 years3,902 45,002 7 years38,838 
Leases acquired4,585 7 years4,137 5,037 9 years4,127 
Schedule of Estimated Annual Amortization Expense
Estimated annual amortization expense related to software development costs:
2025$23,050 
202620,082 
202715,162 
202811,168 
20295,348 
Thereafter1,307 
$76,117 
Estimated annual amortization expense related to other intangible assets:
2025$92,208 
202684,871 
202782,777 
202879,983 
202962,143 
Thereafter429,984 
$831,966 
v3.25.0.1
ACCRUED LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2024
Accrued Liabilities, Current [Abstract]  
Schedule of Accrued Liabilities
Accrued liabilities consist of the following at December 31:
 20242023
Accrued wages, bonuses and commissions$109,207 $81,679 
Other accrued liabilities88,502 76,879 
 $197,709 $158,558 
v3.25.0.1
DEBT (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Debt and Interest Expense Recognized
The following table summarizes our total outstanding borrowings:
RateMaturity DateDecember 31, 2024December 31, 2023
2024 Credit Agreement
Revolving credit facility
S + 1.125%
September 2029$— $— 
2021 Credit Agreement
Revolving credit facility
S + 1.125%
April 2026— — 
Term Loan A-1
S + 1.125%
April 2026— 50,000 
Convertible Senior Notes due 20260.25%March 2026600,000 600,000 
Total borrowings600,000 650,000 
Less: unamortized debt discount and debt issuance costs(2,066)(3,993)
Total borrowings, net597,934 646,007 
Less: current portion of debt— (49,801)
Carrying value$597,934 $596,206 
The following sets forth the interest expense recognized related to the borrowings and commitment fees for unused portions under the 2024 Credit Agreement, the 2021 Credit Agreement and Convertible Senior Notes and is included in interest expense in the accompanying consolidated statements of income:
Years Ended December 31,
202420232022
Contractual interest expense - 2024 Revolving Credit Facility$(253)$— $— 
Contractual interest expense - 2021 Revolving Credit Facility(671)(1,539)(1,267)
Contractual interest expense - Term Loans(761)(16,016)(18,583)
Contractual interest expense - Convertible Senior Notes(1,500)(1,500)(1,500)
Amortization of debt discount and debt issuance costs (2,746)(4,574)(7,029)
Total $(5,931)$(23,629)$(28,379)
v3.25.0.1
FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
Investments, All Other Investments [Abstract]  
Schedule of Investments
The following table presents our financial instruments:
December 31, 2024December 31, 2023
Cash and cash equivalents$744,721 $165,493 
Available-for-sale investments34,015 17,431 
Equity investments10,000 10,000 
Total$788,736 $192,924 
Schedule of Available-for-Sale Activity or Held-to-maturity
The following table presents the components of our available-for-sale investments:
December 31, 2024December 31, 2023
Amortized cost$34,225 $17,866 
Unrealized gains3 — 
Unrealized losses(213)(435)
Estimated fair value$34,015 $17,431 
The following table presents the activity on our available-for-sale or held-to-maturity investments:
Years Ended December 31,
202420232022
Proceeds from sales and maturities$15,994 $49,412 $71,034 
Realized losses on sales, net of tax(18)— (79)
v3.25.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents fair values of our financial and debt instruments categorized by their fair value hierarchy as of December 31, 2024:
Level 1Level 2Level 3Total
Cash and cash equivalents
$744,721 $— $— $744,721 
Available-for-sale investments
— 34,015 — 34,015 
Equity investments— — 10,000 10,000 
Convertible Senior Notes due 2026— 731,310 — 731,310 
The following table presents fair values of our financial and debt instruments categorized by their fair value hierarchy as of December 31, 2023:
Level 1Level 2Level 3Total
Cash and cash equivalents
$165,493 $— $— $165,493 
Available-for-sale investments
— 17,431 — 17,431 
Equity investments— — 10,000 10,000 
2021 Credit Agreement
Term Loan A-1— 49,801 — 49,801 
Convertible Senior Notes due 2026— 609,168 — 609,168 
Schedule of Fair Value, by Balance Sheet Grouping
 Fair Value at December 31,Carrying Value at December 31,
2024202320242023
2021 Credit Agreement
Term Loan A-1$— $49,801 $— $49,801 
Convertible Notes due 2026731,310 609,168 597,934 596,206 
 $731,310 $658,969 $597,934 $646,007 
v3.25.0.1
INCOME TAX (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision on Income From Operations Income tax provision on income from operations consists of the following:
 Years Ended December 31,
 202420232022
Current:   
Federal$60,997 $86,218 $84,570 
State14,807 19,803 25,975 
 75,804 106,021 110,545 
Deferred(30,663)(73,704)(87,192)
 $45,141 $32,317 $23,353 
Schedule of Reconciliation of U.s. Statutory Income Tax Rate to Effective Income Tax Expense Rate
Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows:
 Years Ended December 31,
 202420232022
Federal income tax expense at statutory rate$64,715 $41,630 $39,395 
State income tax, net of federal income tax benefit8,917 6,881 9,197 
Net operating loss carryback— — (261)
Excess tax benefits of share-based compensation(21,143)(9,325)(7,752)
Tax credits(22,095)(20,494)(31,334)
Non-deductible business expenses4,786 5,191 5,425 
Uncertain tax positions10,109 7,647 8,338 
Other, net(148)787 345 
 $45,141 $32,317 $23,353 
Schedule of Deferred Tax Assets and Liabilities
The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are:
 20242023
Deferred income tax assets:  
Capitalized research and experimental expenditures$157,812 $130,972 
Operating expenses not currently deductible8,593 22,180 
Stock option and other employee benefit plans22,095 21,864 
Loss and credit carryforwards5,836 7,430 
Deferred revenue1,670 1,923 
Other55 111 
Total deferred income tax assets196,061 184,480 
Valuation allowance(794)— 
Total deferred income tax assets, net of valuation allowance195,267 184,480 
Deferred income tax liabilities:  
Intangible assets(223,459)(242,522)
Property and equipment(5,624)(8,659)
Prepaid expenses(13,687)(11,889)
Total deferred income tax liabilities(242,770)(263,070)
Net deferred income tax liabilities$(47,503)$(78,590)
Schedule of Unrecognized Tax Benefits
The following table provides a reconciliation of the gross unrecognized tax benefits from uncertain tax positions for the years ended December 31:
20242023
Balance at beginning of period$20,869 $14,044 
Additions for tax positions of prior period4,970 3,087 
Reductions for tax positions of prior period— (338)
Additions for tax positions of current period4,346 4,838 
Expiration of statutes of limitations(430)(762)
Balance at end of period$29,755 $20,869 
v3.25.0.1
SHARE-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Weighted Average Assumptions Used for Options Granted The following weighted average assumptions were used for options granted in 2022:
 Years Ended December 31,
 202420232022
Expected life (in years)— — 5.0
Expected volatility— — 28.3 %
Risk-free interest rate— — 3.3 %
Schedule of Stock Option Activity
Options granted, exercised, forfeited and expired are summarized as follows:
 Number of
Shares		Weighted
Average Exercise
Price		Weighted
Average
Remaining
Contractual Life
(Years)		Aggregate
Intrinsic Value
Outstanding at December 31, 20231,225 $229.63   
Granted— —   
Exercised(486)200.84   
Forfeited— —   
Outstanding at December 31, 2024739 $248.53 4$242,627 
Exercisable at December 31, 2024699 $241.48 4$234,381 
Other information pertaining to option activity was as follows during the twelve months ended December 31:
 202420232022
Weighted average grant-date fair value of stock options granted$— $— $108.99 
Total intrinsic value of stock options exercised$159,022 $58,261 $43,160 
Schedule of RSU and PSU Activity
The following table summarizes restricted stock unit and performance stock unit activity during the periods presented (shares in thousands):
 Number of SharesWeighted Average Grant Date Fair Value per Share
Unvested at December 31, 2023
646 $384.43 
Granted290 512.31 
Vested(254)395.87 
Forfeited(21)408.12 
Unvested at December 31, 2024
661 $435.18 
Schedule of Share-Based Compensation Expense Related to Share-Based Awards
The following table summarizes share-based compensation expense related to share-based awards which is recorded in the consolidated statements of income:
 Years Ended December 31,
 202420232022
Subscriptions, maintenance and professional services$31,322 $26,607 $27,486 
Sales and marketing expense12,840 10,118 8,800 
General and administrative expense78,651 71,613 66,699 
Total share-based compensation expense122,813 108,338 102,985 
Total tax benefit(62,593)(32,997)(27,599)
Net decrease in net income$60,220 $75,341 $75,386 
v3.25.0.1
EARNINGS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Computation of Basic Earnings and Diluted Earnings Per Share Data
The following table details the reconciliation of basic earnings per share to diluted earnings per share:
 Years Ended December 31,
 202420232022
Numerator for basic and diluted earnings per share:   
Net income$263,026 $165,919 $164,240 
Denominator:   
Weighted-average basic common shares outstanding42,611 42,024 41,544 
Assumed conversion of dilutive securities:   
Stock awards793 745 855 
Convertible Senior Notes93 — — 
Denominator for diluted earnings per share - Adjusted weighted-average shares43,497 42,769 42,399 
Earnings per common share:   
Basic$6.17 $3.95 $3.95 
Diluted$6.05 $3.88 $3.87 
v3.25.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Schedule of Lease Cost
The components of operating lease expense were as follows:
Lease CostsYears ended December 31,
202420232022
Operating lease cost$9,166 $19,468 $14,743 
Short-term lease cost2,124 2,121 2,166 
Variable lease cost768 1,009 1,047 
Net lease cost$12,058 $22,598 $17,956 
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
202420232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$12,578 $12,555 $13,562 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$4,404 $3,383 $25,171 
Lease term and discount rate:
Weighted average remaining lease term (years)677
Weighted average discount rate3.22 %1.59 %1.57 %
Schedule of Supplemental Information Related to Leases
Supplemental information related to leases is as follows:
Other InformationYears ended December 31,
202420232022
Cash flows:
Cash paid amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$12,578 $12,555 $13,562 
Right-of-use assets obtained in exchange for lease obligations (non-cash):
Operating leases$4,404 $3,383 $25,171 
Lease term and discount rate:
Weighted average remaining lease term (years)677
Weighted average discount rate3.22 %1.59 %1.57 %
Schedule of Maturity of Lease Liabilities
As of December 31, 2024, maturities of lease liabilities were as follows:
Year ending December 31,Amount
2025$10,675 
20268,387 
20277,458 
20284,624 
20293,698 
Thereafter10,742 
Total lease payments45,584 
Less: Interest(5,150)
Present value of operating lease liabilities$40,434 
Schedule of Future Minimum Operating Rental Income Future minimum operating rental income based on contractual agreements is as follows:
Year ending December 31,Amount
2025$2,270 
20261,274 
2027982 
2028704 
2029— 
Total $5,230 
v3.25.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
 12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Future Minimum Payments Related to Purchase Commitments Future minimum payments related to purchase commitments based on contractual agreements are as follows:
Year ending December 31,Amount
2025$79,154 
202686,202 
202782,282 
202890,213 
202993,436 
Thereafter214,373 
Total$645,660 
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
subsidiary
shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Accounting Policies        
Number of wholly-owned subsidiaries | subsidiary 62      
Other comprehensive (loss) income, net of tax $ 169,000 $ 518,000 $ (798,000)  
Total accounts receivable 594,787,000 628,692,000    
Accounts receivable, allowance for losses $ 17,325,000 22,829,000 14,761,000  
Sales commission, renewal period (in years) 1 year      
Deferred commissions impairment $ 0 0    
Impairments of intangible assets 0 0 0  
Impairments of long-lived assets 0 0 0  
Capitalized post acquisition software development costs 29,400,000 32,500,000 27,600,000  
Research and development expense 117,939,000 109,585,000 105,184,000  
Cash and cash equivalents $ 744,721,000 165,493,000 $ 173,857,000 $ 309,171,000
Stock Option Plan        
Accounting Policies        
Share based compensation contractual term (in years) 10 years      
Stock Option Plan | 2018 Plan        
Accounting Policies        
Share based compensation contractual term (in years) 10 years      
Performance Shares | 2018 Plan        
Accounting Policies        
Share conversion rate (in shares) | shares 1      
Unbilled Revenues        
Accounting Policies        
Total accounts receivable $ 115,600,000 119,200,000    
Unbilled Revenues | Retention Receivable        
Accounting Policies        
Total accounts receivable $ 11,400,000 $ 9,800,000    
Minimum        
Accounting Policies        
Revenue recognition period (in years) 1 year      
Progress billing retention percentage 5.00%      
Payment term 30 days      
Sales commissions amortization period (in years) 3 years      
Minimum | Tyipical        
Accounting Policies        
Revenue recognition period (in years) 1 year      
Minimum | Software and Software Development Costs        
Accounting Policies        
Remaining estimated economic life (in years) 3 years      
Minimum | 2018 Plan        
Accounting Policies        
Share based compensation vesting period (in years) 3 years      
Minimum | Stock Option Plan        
Accounting Policies        
Share based compensation vesting period (in years) 3 years      
Minimum | Restricted Stock Units (RSUs) | 2018 Plan        
Accounting Policies        
Share based compensation vesting period (in years) 3 years      
Minimum | Performance Shares | 2018 Plan        
Accounting Policies        
Share based compensation vesting period (in years) 1 year      
Maximum        
Accounting Policies        
Revenue recognition period (in years) 10 years      
Progress billing retention percentage 15.00%      
Payment term 90 days      
Sales commissions amortization period (in years) 7 years      
Maximum | Tyipical        
Accounting Policies        
Revenue recognition period (in years) 3 years      
Maximum | Software and Software Development Costs        
Accounting Policies        
Remaining estimated economic life (in years) 7 years      
Maximum | 2018 Plan        
Accounting Policies        
Share based compensation vesting period (in years) 5 years      
Maximum | Stock Option Plan        
Accounting Policies        
Share based compensation vesting period (in years) 5 years      
Maximum | Restricted Stock Units (RSUs) | 2018 Plan        
Accounting Policies        
Share based compensation vesting period (in years) 5 years      
Maximum | Performance Shares | 2018 Plan        
Accounting Policies        
Share based compensation vesting period (in years) 3 years      
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Accounts receivable - current $ 587,634 $ 619,704
Accounts receivable - long term 7,153 8,988
Total accounts receivable $ 594,787 $ 628,692
v3.25.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Allowance for Credit Loss Rollforward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss      
Balance at beginning of year $ 22,829 $ 14,761  
Provisions (reductions in reserve) for losses and sales adjustments - accounts receivable (5,504) 8,233 $ 2,781
Collections of accounts previously written off 0 (165)  
Balance at end of year $ 17,325 $ 22,829 $ 14,761
v3.25.0.1
SEGMENT AND RELATED INFORMATION - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.25.0.1
SEGMENT AND RELATED INFORMATION - Schedule of Segment Revenues and Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information      
Total revenues $ 2,137,803 $ 1,951,751 $ 1,850,204
Cost of revenues excluding amortization of acquired software 1,165,078 1,054,590 1,014,149
Segment gross profit 972,725 897,161 836,055
Sales and marketing expense 157,731 149,770 135,743
General and administrative expense 300,938 308,575 267,324
Research and development expense 117,939 109,585 105,184
Depreciation and amortization expense 143,437 154,079 159,072
Software development expenditures 29,401 32,490 27,622
Capital expenditures 20,535 20,519 22,529
Segment assets 5,180,015 4,676,663 4,687,417
Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 1,511,602 1,349,655 1,257,186
Cost of revenues excluding amortization of acquired software 706,952 653,407 606,379
Segment gross profit 804,650 696,248 650,807
Sales and marketing expense 109,981 102,325 100,786
General and administrative expense 48,072 57,481 39,083
Research and development expense 100,182 92,686 92,162
Segment operating income 546,415 443,756 418,776
Depreciation and amortization expense 37,179 25,445 55,389
Software development expenditures 7,612 6,619 3,790
Capital expenditures 15,283 16,788 8,972
Segment assets 572,224 631,117 636,377
Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 619,248 594,766 587,196
Cost of revenues excluding amortization of acquired software 411,351 368,017 370,571
Segment gross profit 207,897 226,749 216,625
Sales and marketing expense 21,618 25,196 23,224
General and administrative expense 57,627 64,406 61,191
Research and development expense 12,126 12,701 8,919
Segment operating income 116,526 124,446 123,291
Depreciation and amortization expense 89,372 110,354 84,609
Software development expenditures 15,558 15,840 14,581
Capital expenditures 4,168 2,380 6,845
Segment assets 416,635 426,064 362,610
Corporate      
Segment Reporting Information      
Total revenues 6,953 7,330 5,822
Cost of revenues excluding amortization of acquired software 46,775 33,166 37,199
Segment gross profit (39,822) (25,836) (31,377)
Sales and marketing expense 26,132 22,249 11,733
General and administrative expense 195,239 186,688 167,050
Research and development expense 5,631 4,198 4,103
Segment operating income (266,824) (238,971) (214,263)
Depreciation and amortization expense 16,886 18,280 19,074
Software development expenditures 6,231 10,031 9,251
Capital expenditures 1,084 1,351 6,712
Segment assets 4,191,156 3,619,482 3,688,430
Operating segment and corporate non-segment      
Segment Reporting Information      
Segment operating income 396,117 329,231 327,804
SaaS      
Segment Reporting Information      
Total revenues 644,779 527,977 428,526
SaaS | Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 559,842 459,544 378,953
SaaS | Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 84,937 68,433 49,573
SaaS | Corporate      
Segment Reporting Information      
Total revenues 0 0 0
Transaction-based fees      
Segment Reporting Information      
Total revenues 698,152 631,535 583,778
Transaction-based fees | Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 234,633 174,718 147,370
Transaction-based fees | Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 463,519 456,817 436,408
Transaction-based fees | Corporate      
Segment Reporting Information      
Total revenues 0 0
Maintenance      
Segment Reporting Information      
Total revenues 463,132 466,661 468,455
Maintenance | Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 438,455 442,781 444,143
Maintenance | Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 24,677 23,880 24,312
Maintenance | Corporate      
Segment Reporting Information      
Total revenues 0 0 0
Professional services      
Segment Reporting Information      
Total revenues 263,991 249,976 277,625
Professional services | Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 219,933 209,727 204,970
Professional services | Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 44,058 40,249 72,655
Professional services | Corporate      
Segment Reporting Information      
Total revenues 0 0 0
Software licenses and royalties      
Segment Reporting Information      
Total revenues 26,357 38,096 59,406
Software licenses and royalties | Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 25,292 32,709 55,158
Software licenses and royalties | Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 1,065 5,387 4,248
Software licenses and royalties | Corporate      
Segment Reporting Information      
Total revenues 0 0 0
Hardware and other      
Segment Reporting Information      
Total revenues 41,392 37,506 32,414
Hardware and other | Operating segments | Enterprise Software      
Segment Reporting Information      
Total revenues 33,447 30,176 26,592
Hardware and other | Operating segments | Platform Technologies      
Segment Reporting Information      
Total revenues 992 0 0
Hardware and other | Corporate      
Segment Reporting Information      
Total revenues $ 6,953 $ 7,330 $ 5,822
v3.25.0.1
SEGMENT AND RELATED INFORMATION - Schedule of Reconciliation of Reportable Segment Gross Profit to Consolidated (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting [Abstract]      
Segment gross profit $ 972,725 $ 897,161 $ 836,055
Amortization of acquired software (36,964) (36,062) (52,192)
Gross profit $ 935,761 $ 861,099 $ 783,863
v3.25.0.1
SEGMENT AND RELATED INFORMATION - Schedule of Reconciliation of Operating Income From Segments to Consolidated (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated      
Total segment operating income $ 299,526 $ 218,537 $ 214,249
Amortization of acquired software (36,964) (36,062) (52,192)
Amortization of other intangibles (59,627) (74,632) (61,363)
Interest expense (5,931) (23,629) (28,379)
Other income, net 14,572 3,328 1,723
Income before income taxes 308,167 198,236 187,593
Operating segments      
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated      
Total segment operating income $ 396,117 $ 329,231 $ 327,804
v3.25.0.1
DISAGGREGATION OF REVENUE - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
Minimum  
Disaggregation of Revenue  
Contract term (in years) 1 year
Typical contract term (in years) 1 year
Maximum  
Disaggregation of Revenue  
Contract term (in years) 10 years
Typical contract term (in years) 3 years
v3.25.0.1
DISAGGREGATION OF REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Disaggregation of Revenue      
Total revenues $ 2,137,803 $ 1,951,751 $ 1,850,204
Corporate      
Disaggregation of Revenue      
Total revenues 6,953 7,330 5,822
Corporate and Elimination      
Disaggregation of Revenue      
Total revenues 6,953 7,330 5,822
Enterprise Software | Operating segments      
Disaggregation of Revenue      
Total revenues 1,511,602 1,349,655 1,257,186
Platform Technologies | Operating segments      
Disaggregation of Revenue      
Total revenues 619,248 594,766 587,196
Recurring revenues      
Disaggregation of Revenue      
Total revenues 1,806,063 1,626,173 1,480,759
Recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 1,232,930 1,077,043 970,466
Recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 573,133 549,130 510,293
Non-recurring revenues      
Disaggregation of Revenue      
Total revenues 331,740 325,578 369,445
Non-recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 6,953 7,330 5,822
Non-recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 278,672 272,612 286,720
Non-recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 46,115 45,636 76,903
SaaS      
Disaggregation of Revenue      
Total revenues 644,779 527,977 428,526
SaaS | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
SaaS | Enterprise Software | Operating segments      
Disaggregation of Revenue      
Total revenues 559,842 459,544 378,953
SaaS | Platform Technologies | Operating segments      
Disaggregation of Revenue      
Total revenues 84,937 68,433 49,573
SaaS | Recurring revenues      
Disaggregation of Revenue      
Total revenues 644,779 527,977 428,526
SaaS | Recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
SaaS | Recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 559,842 459,544 378,953
SaaS | Recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 84,937 68,433 49,573
Transaction-based fees      
Disaggregation of Revenue      
Total revenues 698,152 631,535 583,778
Transaction-based fees | Corporate      
Disaggregation of Revenue      
Total revenues 0 0
Transaction-based fees | Enterprise Software | Operating segments      
Disaggregation of Revenue      
Total revenues 234,633 174,718 147,370
Transaction-based fees | Platform Technologies | Operating segments      
Disaggregation of Revenue      
Total revenues 463,519 456,817 436,408
Transaction-based fees | Recurring revenues      
Disaggregation of Revenue      
Total revenues 698,152 631,535 583,778
Transaction-based fees | Recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Transaction-based fees | Recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 234,633 174,718 147,370
Transaction-based fees | Recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 463,519 456,817 436,408
Maintenance      
Disaggregation of Revenue      
Total revenues 463,132 466,661 468,455
Maintenance | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Maintenance | Enterprise Software | Operating segments      
Disaggregation of Revenue      
Total revenues 438,455 442,781 444,143
Maintenance | Platform Technologies | Operating segments      
Disaggregation of Revenue      
Total revenues 24,677 23,880 24,312
Maintenance | Recurring revenues      
Disaggregation of Revenue      
Total revenues 463,132 466,661 468,455
Maintenance | Recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Maintenance | Recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 438,455 442,781 444,143
Maintenance | Recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 24,677 23,880 24,312
Professional services      
Disaggregation of Revenue      
Total revenues 263,991 249,976 277,625
Professional services | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Professional services | Enterprise Software | Operating segments      
Disaggregation of Revenue      
Total revenues 219,933 209,727 204,970
Professional services | Platform Technologies | Operating segments      
Disaggregation of Revenue      
Total revenues 44,058 40,249 72,655
Professional services | Non-recurring revenues      
Disaggregation of Revenue      
Total revenues 263,991 249,976 277,625
Professional services | Non-recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Professional services | Non-recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 219,933 209,727 204,970
Professional services | Non-recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 44,058 40,249 72,655
Software licenses and royalties      
Disaggregation of Revenue      
Total revenues 26,357 38,096 59,406
Software licenses and royalties | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Software licenses and royalties | Enterprise Software | Operating segments      
Disaggregation of Revenue      
Total revenues 25,292 32,709 55,158
Software licenses and royalties | Platform Technologies | Operating segments      
Disaggregation of Revenue      
Total revenues 1,065 5,387 4,248
Software licenses and royalties | Non-recurring revenues      
Disaggregation of Revenue      
Total revenues 26,357 38,096 59,406
Software licenses and royalties | Non-recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 0 0 0
Software licenses and royalties | Non-recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 25,292 32,709 55,158
Software licenses and royalties | Non-recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues 1,065 5,387 4,248
Hardware and other | Non-recurring revenues      
Disaggregation of Revenue      
Total revenues 41,392 37,506 32,414
Hardware and other | Non-recurring revenues | Corporate      
Disaggregation of Revenue      
Total revenues 6,953 7,330 5,822
Hardware and other | Non-recurring revenues | Enterprise Software      
Disaggregation of Revenue      
Total revenues 33,447 30,176 26,592
Hardware and other | Non-recurring revenues | Platform Technologies      
Disaggregation of Revenue      
Total revenues $ 992 $ 0 $ 0
v3.25.0.1
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS - Schedule of Changes in Deferred Revenue (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
Disaggregation of Revenue  
Deferred revenue $ 723,814
Contract With Customer Liability  
Balance at beginning of year 633,205
Deferral of revenue 1,514,168
Recognition of deferred revenue (1,423,559)
Balance at end of year 723,814
Operating segments | Enterprise Software  
Disaggregation of Revenue  
Deferred revenue 683,909
Contract With Customer Liability  
Balance at beginning of year 589,295
Balance at end of year 683,909
Operating segments | Platform Technologies  
Disaggregation of Revenue  
Deferred revenue 36,117
Contract With Customer Liability  
Balance at beginning of year 39,597
Balance at end of year 36,117
Corporate  
Disaggregation of Revenue  
Deferred revenue 3,788
Contract With Customer Liability  
Balance at beginning of year 4,313
Balance at end of year $ 3,788
v3.25.0.1
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS - Additional Information (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Dec. 31, 2024
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction  
Revenue, remaining performance obligation (as a percent) 97.00%
Expected timing of satisfaction period (in years) 12 months
v3.25.0.1
DEFERRED COMMISSIONS - Schedule of Deferred Commissions (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]    
Prepaid commissions $ 18,037 $ 18,262
Long-term deferred commissions 38,762 30,924
Total deferred commissions $ 56,799 $ 49,186
v3.25.0.1
DEFERRED COMMISSIONS - Schedule of Amortization Expense Related to Deferred Commissions (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]      
Amortization expense $ 19,916 $ 18,589 $ 15,448
v3.25.0.1
ACQUISITIONS - Additional Information (Details)
$ in Thousands
 12 Months Ended
Oct. 31, 2023
USD ($)
Aug. 08, 2023
USD ($)
Dec. 31, 2024
USD ($)
acquistion
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Business Acquisition          
Number of acquisitions | acquistion     2    
Issuance of shares for acquisitions     $ 10,425    
Payments to acquire businesses, net of cash     1,395 $ 62,759 $ 163,921
Goodwill     2,531,653 $ 2,532,109 $ 2,489,308
Financial advisory and legal fees     29    
Other Businesses Acquired          
Business Acquisition          
Payments to acquire businesses, gross     $ 1,400    
ResourceX          
Business Acquisition          
Business acquisition consideration $ 16,300        
Cash acquired from acquisition 48        
Payments to acquire businesses, net of cash 9,100        
Payment to acquire business, common stock 5,700        
Contingent consideration 1,500        
Total tangible assets 388        
Liabilities assumed 901        
Goodwill 10,000        
Identifiable intangible assets acquired $ 7,600        
Finite-lived intangible asset, useful life (in years) 9 years        
Deferred tax liabilities $ 748        
AR Inspect          
Business Acquisition          
Business acquisition consideration 20,500        
Cash acquired from acquisition 1,000        
Payments to acquire businesses, net of cash 19,100        
Contingent consideration 2,400        
Total tangible assets 1,800        
Liabilities assumed 1,500        
Goodwill 13,600        
Identifiable intangible assets acquired $ 10,000        
Finite-lived intangible asset, useful life (in years) 12 years        
Deferred tax liabilities $ 2,500        
Computing System Innovations, LLC          
Business Acquisition          
Business acquisition consideration   $ 36,200      
Cash acquired from acquisition   415      
Payments to acquire businesses, net of cash   33,400      
Contingent consideration   3,300      
Total tangible assets   1,200      
Liabilities assumed   2,400      
Goodwill   19,400      
Identifiable intangible assets acquired   $ 18,500      
Finite-lived intangible asset, useful life (in years)   13 years      
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment    
Property and equipment, gross $ 338,102 $ 348,283
Accumulated depreciation and amortization (174,327) (178,563)
Property and equipment, net 163,775 169,720
Land    
Property, Plant and Equipment    
Property and equipment, gross 23,163 22,908
Building and leasehold improvements    
Property, Plant and Equipment    
Property and equipment, gross $ 181,066 172,094
Building and leasehold improvements | Minimum    
Property, Plant and Equipment    
Useful Lives (years) 5 years  
Building and leasehold improvements | Maximum    
Property, Plant and Equipment    
Useful Lives (years) 39 years  
Computer equipment and purchased software    
Property, Plant and Equipment    
Property and equipment, gross $ 99,156 118,178
Computer equipment and purchased software | Minimum    
Property, Plant and Equipment    
Useful Lives (years) 3 years  
Computer equipment and purchased software | Maximum    
Property, Plant and Equipment    
Useful Lives (years) 5 years  
Furniture and fixtures    
Property, Plant and Equipment    
Property and equipment, gross $ 34,495 34,881
Useful Lives (years) 5 years  
Transportation equipment    
Property, Plant and Equipment    
Property and equipment, gross $ 222 $ 222
Useful Lives (years) 5 years  
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 23.3 $ 25.0 $ 29.5
Payment for construction to expand building $ 7.5 $ 16.0  
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET - Schedule of Software Development Costs, Net (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment    
Software development costs $ 118,698 $ 92,395
Accumulated amortization (42,581) (25,271)
Software development costs, net $ 76,117 $ 67,124
Software Development | Minimum    
Property, Plant and Equipment    
Useful Lives (years) 3 years  
Software Development | Maximum    
Property, Plant and Equipment    
Useful Lives (years) 7 years  
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET - Schedule of Amortization Expense for Software Development Costs (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment      
Amortization expense for software development costs $ 20,407 $ 13,555 $ 7,931
Cost of Revenue      
Property, Plant and Equipment      
Amortization expense for software development costs 18,806 12,625 6,507
General and administrative expense      
Property, Plant and Equipment      
Amortization expense for software development costs $ 1,601 $ 930 $ 1,424
v3.25.0.1
PROPERTY AND EQUIPMENT, NET AND SOFTWARE DEVELOPMENT COSTS, NET - Schedule of Estimated Annual Amortization Expense (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Finite-Lived Intangible Assets  
2025 $ 92,208
2026 84,871
2027 82,777
2028 79,983
2029 62,143
Thereafter 429,984
Finite-lived intangible assets, net 831,966
Software Development  
Finite-Lived Intangible Assets  
2025 23,050
2026 20,082
2027 15,162
2028 11,168
2029 5,348
Thereafter 1,307
Finite-lived intangible assets, net $ 76,117
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill    
Goodwill beginning balance $ 2,532,109 $ 2,489,308
Transfer from ES to PT   0
Goodwill ending balance 2,531,653 2,532,109
CSI    
Goodwill    
Goodwill acquired   19,421
AR Inspect    
Goodwill    
Goodwill acquired   13,627
ResourceX    
Goodwill    
Goodwill acquired   9,978
Other acquisitions    
Goodwill    
Goodwill acquired related to the purchase of other acquisitions   (225)
Purchase price adjustments related to the purchase of prior year acquisitions (456)  
Enterprise Software    
Goodwill    
Goodwill beginning balance 837,002 834,693
Transfer from ES to PT   (27,090)
Goodwill ending balance 836,767 837,002
Enterprise Software | CSI    
Goodwill    
Goodwill acquired   19,421
Enterprise Software | AR Inspect    
Goodwill    
Goodwill acquired   0
Enterprise Software | ResourceX    
Goodwill    
Goodwill acquired   9,978
Enterprise Software | Other acquisitions    
Goodwill    
Goodwill acquired related to the purchase of other acquisitions   0
Purchase price adjustments related to the purchase of prior year acquisitions (235)  
Platform Technologies    
Goodwill    
Goodwill beginning balance 1,695,107 1,654,615
Transfer from ES to PT   27,090
Goodwill ending balance 1,694,886 1,695,107
Platform Technologies | CSI    
Goodwill    
Goodwill acquired   0
Platform Technologies | AR Inspect    
Goodwill    
Goodwill acquired   13,627
Platform Technologies | ResourceX    
Goodwill    
Goodwill acquired   0
Platform Technologies | Other acquisitions    
Goodwill    
Goodwill acquired related to the purchase of other acquisitions   $ (225)
Purchase price adjustments related to the purchase of prior year acquisitions $ (221)  
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Other Intangible Assets and Related Accumulated Amortization (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Gross carrying amount of other intangibles:    
Acquisition intangibles, gross $ 1,253,729 $ 1,532,211
Accumulated amortization (421,763) (603,341)
Total other intangibles, net 831,966 928,870
Client related intangibles    
Gross carrying amount of other intangibles:    
Acquisition intangibles, gross 958,924 1,015,919
Accumulated amortization (261,407) (263,672)
Acquired software    
Gross carrying amount of other intangibles:    
Acquisition intangibles, gross 284,900 466,253
Accumulated amortization (152,317) (296,704)
Trade names    
Gross carrying amount of other intangibles:    
Acquisition intangibles, gross 5,320 45,002
Accumulated amortization (3,902) (38,838)
Leases acquired    
Gross carrying amount of other intangibles:    
Acquisition intangibles, gross 4,585 5,037
Accumulated amortization $ (4,137) $ (4,127)
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Total amortization expense $ 96.9 $ 111.0 $ 113.9
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Allocation of Acquisition Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Acquired Finite Lived Intangible Assets      
Goodwill $ 2,531,653 $ 2,532,109 $ 2,489,308
Amortizable intangibles, Gross Carrying Amount 1,253,729 1,532,211  
Amortizable intangibles, Accumulated Amortization 421,763 603,341  
Client related intangibles      
Acquired Finite Lived Intangible Assets      
Amortizable intangibles, Gross Carrying Amount $ 958,924 $ 1,015,919  
Amortizable intangibles, Weighted Average Amortization Period 18 years 18 years  
Amortizable intangibles, Accumulated Amortization $ 261,407 $ 263,672  
Acquired software      
Acquired Finite Lived Intangible Assets      
Amortizable intangibles, Gross Carrying Amount $ 284,900 $ 466,253  
Amortizable intangibles, Weighted Average Amortization Period 8 years 7 years  
Amortizable intangibles, Accumulated Amortization $ 152,317 $ 296,704  
Trade names      
Acquired Finite Lived Intangible Assets      
Amortizable intangibles, Gross Carrying Amount $ 5,320 $ 45,002  
Amortizable intangibles, Weighted Average Amortization Period 12 years 7 years  
Amortizable intangibles, Accumulated Amortization $ 3,902 $ 38,838  
Leases acquired      
Acquired Finite Lived Intangible Assets      
Amortizable intangibles, Gross Carrying Amount $ 4,585 $ 5,037  
Amortizable intangibles, Weighted Average Amortization Period 7 years 9 years  
Amortizable intangibles, Accumulated Amortization $ 4,137 $ 4,127  
v3.25.0.1
GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Estimated Annual Amortization Expense (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity  
2025 $ 92,208
2026 84,871
2027 82,777
2028 79,983
2029 62,143
Thereafter 429,984
Finite-lived intangible assets, net $ 831,966
v3.25.0.1
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accrued Liabilities, Current [Abstract]    
Accrued wages, bonuses and commissions $ 109,207 $ 81,679
Other accrued liabilities 88,502 76,879
Accrued liabilities $ 197,709 $ 158,558
v3.25.0.1
DEBT - Schedule of Debt (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Mar. 09, 2021
Line Of Credit Facility      
Long term debt, gross $ 600,000 $ 650,000  
Less: unamortized debt discount and debt issuance costs (2,066) (3,993)  
Total borrowings, net 597,934 646,007  
Less: current portion of debt 0 (49,801)  
Carrying value $ 597,934 596,206  
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration] SOFR Rate    
2024 Credit Agreement | Revolving Credit Facility      
Line Of Credit Facility      
Long term debt, gross $ 0 0  
Line of credit facility interest rate (as a percent) 1.125%    
2021 Credit Agreement | Revolving Credit Facility      
Line Of Credit Facility      
Long term debt, gross $ 0 0  
Line of credit facility interest rate (as a percent) 1.125%    
2021 Credit Agreement | Term Loan A-1      
Line Of Credit Facility      
Long term debt, gross $ 0 50,000  
Line of credit facility interest rate (as a percent) 1.125%    
Convertible Senior Notes due 2026 | Senior Notes      
Line Of Credit Facility      
Long term debt, gross $ 600,000 $ 600,000  
Debt instrument, interest rate, stated percentage (as a percent) 0.25%   0.25%
v3.25.0.1
DEBT - Additional Information (Details)
 12 Months Ended
Sep. 25, 2024
USD ($)
Apr. 21, 2021
USD ($)
Mar. 09, 2021
USD ($)
trading_day
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Line Of Credit Facility            
Payment on term loans       $ 50,000,000 $ 345,000,000 $ 360,000,000
Letter of credit outstanding       $ 500,000    
Convertible Senior Notes due 2026 | Senior Notes            
Line Of Credit Facility            
Initial conversion rate (in shares)     0.20266%      
Senior Notes | 2021 Credit Agreement            
Line Of Credit Facility            
Effective interest rate (as a percent)       8.66%    
Senior Notes | Convertible Senior Notes due 2026            
Line Of Credit Facility            
Debt issuance costs     $ 2,600,000      
Debt instrument, interest rate, stated percentage (as a percent)     0.25% 0.25%    
Convertible senior notes     $ 600,000,000.0      
Net proceeds from issuance     591,400,000      
Initial purchasers discount     $ 6,000,000      
Common stock exceeds conversion price (as a percent)     130.00%      
Debt instrument, convertible, threshold trading days | trading_day     20      
Observation period (days) | trading_day     30      
Measurement period (days) | trading_day     5      
Debt instrument convertible (as a percent)     98.00%      
Redemption percentage (as a percent)     100.00%      
Initial conversion price (in dollars per share) | $ / shares     $ 493.44 $ 493.44    
Scheduled trading days prior to maturity (days)     30 days      
Consecutive period (days) | trading_day     30      
Effective interest rate (as a percent)       0.54%    
Revolving Credit Facility | 2024 Credit Agreement            
Line Of Credit Facility            
Revolving credit facility, maximum borrowing capacity $ 700,000,000.0          
Debt issuance costs $ 2,600,000          
Line of credit facility interest rate (as a percent)       1.125%    
Commitment fee (as a percent) 0.125%          
Revolving Credit Facility | 2024 Credit Agreement | Minimum            
Line Of Credit Facility            
Commitment fee (as a percent) 0.125%          
Revolving Credit Facility | 2024 Credit Agreement | Minimum | Prime Rate | Option One            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   0.125%        
Revolving Credit Facility | 2024 Credit Agreement | Minimum | SOFR Rate | Option Two            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   1.125%        
Revolving Credit Facility | 2024 Credit Agreement | Maximum            
Line Of Credit Facility            
Commitment fee (as a percent) 0.25%          
Revolving Credit Facility | 2024 Credit Agreement | Maximum | Prime Rate | Option One            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   0.75%        
Revolving Credit Facility | 2024 Credit Agreement | Maximum | SOFR Rate | Option Two            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   1.75%        
Revolving Credit Facility | 2021 Credit Agreement            
Line Of Credit Facility            
Revolving credit facility, maximum borrowing capacity   $ 1,400,000,000   $ 500,000,000.0    
Line of credit facility interest rate (as a percent)       1.125%    
Payment on term loans       $ 50,000,000.0    
Revolving Credit Facility | Term Loan A-1            
Line Of Credit Facility            
Revolving credit facility, maximum borrowing capacity   $ 600,000,000        
Debt instrument, term   5 years        
Revolving Credit Facility | Term Loan A-1 | Minimum | SOFR Rate            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   1.125%        
Revolving Credit Facility | Term Loan A-1 | Minimum | Base Rate            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   0.125%        
Revolving Credit Facility | Term Loan A-1 | Maximum | SOFR Rate            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   1.75%        
Revolving Credit Facility | Term Loan A-1 | Maximum | Base Rate            
Line Of Credit Facility            
Line of credit facility interest rate (as a percent)   0.75%        
Revolving Credit Facility | Convertible Senior Notes due 2026            
Line Of Credit Facility            
Weighted average interest rate (as a percent)       0.25%    
v3.25.0.1
DEBT - Schedule of Interest Expense Recognized (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument      
Amortization of debt discount and debt issuance costs $ (2,746) $ (4,574) $ (7,029)
Total (5,931) (23,629) (28,379)
Contractual interest expense - Term Loans      
Debt Instrument      
Contractual interest expense (761) (16,016) (18,583)
Contractual interest expense - Convertible Senior Notes | Senior Notes      
Debt Instrument      
Contractual interest expense (1,500) (1,500) (1,500)
Revolving Credit Facility | 2024 Credit Agreement      
Debt Instrument      
Contractual interest expense (253) 0 0
Revolving Credit Facility | 2021 Credit Agreement      
Debt Instrument      
Contractual interest expense $ (671) $ (1,539) $ (1,267)
v3.25.0.1
FINANCIAL INSTRUMENTS - Schedule of Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Investments, All Other Investments [Abstract]    
Cash and cash equivalents $ 744,721 $ 165,493
Available-for-sale investments 34,015 17,431
Equity investments 10,000 10,000
Total $ 788,736 $ 192,924
v3.25.0.1
FINANCIAL INSTRUMENTS - Additional Information (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
security
Dec. 31, 2023
USD ($)
Derivative Instruments and Hedging Activities Disclosures    
Interest receivable $ 227,000 $ 65,000
Allowance for credit loss 0  
Available for sales debt securities, current 23,300,000  
Available for sales debt securities, non-current $ 10,800,000  
Available-for-sale debt securities, loss position, current, number of positions | security 22  
Available-for-sale debt securities, loss position, non-current $ 13,500,000  
BFTR, LLC    
Derivative Instruments and Hedging Activities Disclosures    
Investment percentage (as a percent) 18.00%  
Seven Debt Securities Available For Sale    
Derivative Instruments and Hedging Activities Disclosures    
Available-for-sale debt securities, loss position, non-current, number of positions | security 7  
Available-for-sale debt securities, loss position, non-current $ 7,700,000  
v3.25.0.1
FINANCIAL INSTRUMENTS - Available-for-Sale Investments (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Investments, All Other Investments [Abstract]    
Amortized cost $ 34,225 $ 17,866
Unrealized gains 3 0
Unrealized losses (213) (435)
Estimated fair value $ 34,015 $ 17,431
v3.25.0.1
FINANCIAL INSTRUMENTS - Net Realized Gains (Losses) on Sales of Our Financial Instruments (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Investments, All Other Investments [Abstract]      
Proceeds from sales and maturities $ 15,994 $ 49,412 $ 71,034
Realized losses on sales, net of tax $ (18) $ 0 $ (79)
v3.25.0.1
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques    
Cash and cash equivalents $ 744,721 $ 165,493
Available-for-sale investments 34,015 17,431
Equity investments 10,000 10,000
Term Loan A-1    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments   49,801
Convertible Notes due 2026    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments 731,310 609,168
Level 1    
Fair Value Measurement Inputs and Valuation Techniques    
Cash and cash equivalents 744,721 165,493
Available-for-sale investments 0 0
Equity investments 0 0
Level 1 | Term Loan A-1    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments   0
Level 1 | Convertible Notes due 2026    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments 0 0
Level 2    
Fair Value Measurement Inputs and Valuation Techniques    
Cash and cash equivalents 0 0
Available-for-sale investments 34,015 17,431
Equity investments 0 0
Level 2 | Term Loan A-1    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments   49,801
Level 2 | Convertible Notes due 2026    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments 731,310 609,168
Level 3    
Fair Value Measurement Inputs and Valuation Techniques    
Cash and cash equivalents 0 0
Available-for-sale investments 0 0
Equity investments 10,000 10,000
Level 3 | Term Loan A-1    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments   0
Level 3 | Convertible Notes due 2026    
Fair Value Measurement Inputs and Valuation Techniques    
Debt Instruments $ 0 $ 0
v3.25.0.1
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions      
Available-for-sale investments $ 34,015,000 $ 17,431,000  
Cost-method investment impairment $ 0 $ 0 $ 0
BFTR, LLC      
Fair Value, Balance Sheet Grouping, Financial Statement Captions      
Investment percentage (as a percent) 18.00%    
v3.25.0.1
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments $ 731,310 $ 658,969
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments 597,934 646,007
Convertible Notes due 2026    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments 731,310 609,168
Convertible Notes due 2026 | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments 731,310 609,168
Convertible Notes due 2026 | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments 597,934 596,206
Term Loan A-1 | 2021 Credit Agreement | Fair Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments 0 49,801
Term Loan A-1 | 2021 Credit Agreement | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis    
Debt Instruments $ 0 $ 49,801
v3.25.0.1
INCOME TAX - Schedule of Income Tax Provision on Income From Operations (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current:      
Federal $ 60,997 $ 86,218 $ 84,570
State 14,807 19,803 25,975
Current income tax expense benefit 75,804 106,021 110,545
Deferred (30,663) (73,704) (87,192)
Income tax expense benefit $ 45,141 $ 32,317 $ 23,353
v3.25.0.1
INCOME TAX - Schedule of Reconciliation of U.S. Statutory Income Tax Rate to Effective Income Tax Expense Rate (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal income tax expense at statutory rate $ 64,715 $ 41,630 $ 39,395
State income tax, net of federal income tax benefit 8,917 6,881 9,197
Net operating loss carryback 0 0 (261)
Excess tax benefits of share-based compensation (21,143) (9,325) (7,752)
Tax credits (22,095) (20,494) (31,334)
Non-deductible business expenses 4,786 5,191 5,425
Uncertain tax positions 10,109 7,647 8,338
Other, net (148) 787 345
Income tax expense benefit $ 45,141 $ 32,317 $ 23,353
v3.25.0.1
INCOME TAX - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Deferred income tax assets:    
Capitalized research and experimental expenditures $ 157,812 $ 130,972
Operating expenses not currently deductible 8,593 22,180
Stock option and other employee benefit plans 22,095 21,864
Loss and credit carryforwards 5,836 7,430
Deferred revenue 1,670 1,923
Other 55 111
Total deferred income tax assets 196,061 184,480
Valuation allowance (794) 0
Total deferred income tax assets, net of valuation allowance 195,267 184,480
Deferred income tax liabilities:    
Intangible assets (223,459) (242,522)
Property and equipment (5,624) (8,659)
Prepaid expenses (13,687) (11,889)
Total deferred income tax liabilities (242,770) (263,070)
Net deferred income tax liabilities $ (47,503) $ (78,590)
v3.25.0.1
INCOME TAX - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Line Items]      
Capitalized research and experimental expenditures in deferred tax assets $ 157,812 $ 130,972  
Loss and credit carryforwards 5,836 7,430  
Valuation allowance 794 0  
Uncertain tax liability 32,200 22,100  
Unrecognized tax benefit that would impact tax rate if recognized 28,600 $ 20,100 $ 13,300
State Research and Development Credit Carryforward      
Income Tax Disclosure [Line Items]      
Valuation allowance $ 800    
v3.25.0.1
INCOME TAX - Schedule of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Reconciliation of Unrecognized Tax Benefits    
Balance at beginning of period $ 20,869 $ 14,044
Additions for tax positions of prior period 4,970 3,087
Reductions for tax positions of prior period 0 (338)
Additions for tax positions of current period 4,346 4,838
Expiration of statutes of limitations (430) (762)
Balance at end of period $ 29,755 $ 20,869
v3.25.0.1
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Apr. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award      
Dividend yield (in percentage) 0.00%    
Weighted average grant date value (in dollars per share) $ 371.20 $ 380.83  
Employee Stock Purchase Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Number of shares available for grant (in shares) 484,000    
Shares reserved for future issuance (in shares) 2,000,000.0    
Percentage of annual compensation participants may contribute 15.00%    
Purchase price as a percentage of closing price on the last day of the quarter for ESPP transactions 85.00%    
Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation contractual term (in years) 10 years    
Unvested options to purchase (in shares) 40,000 98,000  
Total unrecognized compensation cost $ 208.7    
Weighted average amortization period 2 years 2 months 12 days    
Minimum | Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 3 years    
Maximum | Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 5 years    
2018 Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Number of shares available for grant (in shares) 4,400,000    
Shares reserved for future issuance (in shares)     27,500,000
2018 Plan | Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation contractual term (in years) 10 years    
2018 Plan | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award      
Share conversion rate (in shares) 1    
2018 Plan | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 3 years    
2018 Plan | Minimum | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 3 years    
2018 Plan | Minimum | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 1 year    
2018 Plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 5 years    
2018 Plan | Maximum | Restricted Stock Units (RSUs)      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 5 years    
2018 Plan | Maximum | Performance Shares      
Share-based Compensation Arrangement by Share-based Payment Award      
Share based compensation vesting period (in years) 3 years    
v3.25.0.1
SHARE-BASED COMPENSATION - Schedule of Weighted Average Assumptions Used for Options Granted (Details) - Stock Option Plan
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award      
Expected life (in years)     5 years
Expected volatility (in percentage) 0.00% 0.00% 28.30%
Risk-free interest rate (in percentage) 0.00% 0.00% 3.30%
v3.25.0.1
SHARE-BASED COMPENSATION - Schedule of Stock Option Activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
USD ($)
$ / shares
shares
Number of Shares  
Outstanding Beginning Balance (in shares) | shares 1,225
Granted (in shares) | shares 0
Exercised (in shares) | shares (486)
Forfeited (in shares) | shares 0
Outstanding Ending Balance (in shares) | shares 739
Exercisable (in shares) | shares 699
Weighted Average Exercise Price  
Outstanding Beginning Balance (in dollar per share) | $ / shares $ 229.63
Granted (in dollars per share) | $ / shares 0
Exercised (in dollars per share) | $ / shares 200.84
Forfeited (in dollars per share) | $ / shares 0
Outstanding Ending Balance (in dollars per share) | $ / shares 248.53
Exercisable (in dollars per share) | $ / shares $ 241.48
Weighted Average Remaining Contractual Life (Years), Outstanding 4 years
Weighted Average Remaining Contractual Life (Years), Exercisable 4 years
Aggregate Intrinsic Value, Outstanding | $ $ 242,627
Aggregate Intrinsic Value, Exercisable | $ $ 234,381
v3.25.0.1
SHARE-BASED COMPENSATION - Other Information Pertaining to Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]      
Weighted average grant-date fair value of stock options granted (in dollars per share) $ 0 $ 0 $ 108.99
Total intrinsic value of stock options exercised $ 159,022 $ 58,261 $ 43,160
v3.25.0.1
SHARE-BASED COMPENSATION - Schedule of RSU and PSU Activity (Details) - Restricted stock unit and performance stock unit
shares in Thousands
 12 Months Ended
Dec. 31, 2024
$ / shares
shares
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]  
Beginning balance (in shares) | shares 646
Granted (in shares) | shares 290
Vested (in shares) | shares (254)
Forfeited (in shares) | shares (21)
Ending balance (in shares) | shares 661
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share [Abstract]  
Beginning balance (in dollars per share) | $ / shares $ 384.43
Granted (in dollars per share) | $ / shares 512.31
Vested (in dollars per share) | $ / shares 395.87
Forfeited (in dollars per share) | $ / shares 408.12
Ending balance (in dollars per share) | $ / shares $ 435.18
v3.25.0.1
SHARE-BASED COMPENSATION - Schedule of Share-Based Compensation Expense Related to Share-Based Awards (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-Based Payment Arrangement, Expensed And Capitalized, Amount      
Total share-based compensation expense $ 122,813 $ 108,338 $ 102,985
Total tax benefit (62,593) (32,997) (27,599)
Net decrease in net income 60,220 75,341 75,386
Subscriptions, maintenance and professional services      
Share-Based Payment Arrangement, Expensed And Capitalized, Amount      
Total share-based compensation expense 31,322 26,607 27,486
Sales and marketing expense      
Share-Based Payment Arrangement, Expensed And Capitalized, Amount      
Total share-based compensation expense 12,840 10,118 8,800
General and administrative expense      
Share-Based Payment Arrangement, Expensed And Capitalized, Amount      
Total share-based compensation expense $ 78,651 $ 71,613 $ 66,699
v3.25.0.1
EARNINGS PER SHARE - Schedule of Computation of Basic Earnings and Diluted Earnings Per Share Data (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Numerator for basic and diluted earnings per share:      
Net income, basic $ 263,026 $ 165,919 $ 164,240
Net income, diluted $ 263,026 $ 165,919 $ 164,240
Denominator:      
Weighted-average basic common shares outstanding 42,611 42,024 41,544
Assumed conversion of dilutive securities:      
Stock awards (in shares) 793 745 855
Convertible Senior Notes (in shares) 93 0 0
Denominator for diluted earnings per share - Adjusted weighted-average shares 43,497 42,769 42,399
Earnings per common share:      
Basic (in dollars per share) $ 6.17 $ 3.95 $ 3.95
Diluted (in dollars per share) $ 6.05 $ 3.88 $ 3.87
v3.25.0.1
EARNINGS PER SHARE - Additional Information (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Mar. 09, 2021
Convertible Senior Notes due 2026 | Senior Notes        
Antidilutive Securities Excluded From Computation Of Earnings Per Share        
Debt instrument, conversion price (in usd per share) $ 493.44     $ 493.44
Stock Awards        
Antidilutive Securities Excluded From Computation Of Earnings Per Share        
Antidilutive securities excluded from computation of earnings per share, amount 67 343 372  
v3.25.0.1
LEASES - Additional Information (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2024
USD ($)
lease
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Lessee, Lease      
Operating lease restructuring costs $ 0.0 $ 6.4 $ 1.7
Lessor, operating lease renewal term (in years) 10 years    
Rental income $ 3.2 $ 2.1 $ 1.7
Related Party      
Lessee, Lease      
Operating lease term | lease 1    
Minimum      
Lessee, Lease      
Operating lease term (in years) 1 year    
Maximum      
Lessee, Lease      
Operating lease term (in years) 10 years    
Operating lease renewal term (up to) 6 years    
v3.25.0.1
LEASES - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease cost $ 9,166 $ 19,468 $ 14,743
Short-term lease cost 2,124 2,121 2,166
Variable lease cost 768 1,009 1,047
Net lease cost $ 12,058 $ 22,598 $ 17,956
v3.25.0.1
LEASES - Schedule of Supplemental Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash paid amounts included in the measurement of lease liabilities:      
Operating cash outflows from operating leases $ 12,578 $ 12,555 $ 13,562
Right-of-use assets obtained in exchange for lease obligations (non-cash):      
Operating leases $ 4,404 $ 3,383 $ 25,171
Lease term and discount rate:      
Weighted average remaining lease term (in years) 6 years 7 years 7 years
Weighted average discount rate (percent) 3.22% 1.59% 1.57%
v3.25.0.1
LEASES - Schedule of Maturity of Lease Liabilities (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Year ending December 31,  
2025 $ 10,675
2026 8,387
2027 7,458
2028 4,624
2029 3,698
Thereafter 10,742
Total lease payments 45,584
Less: Interest (5,150)
Present value of operating lease liabilities $ 40,434
v3.25.0.1
LEASES - Schedule of Future Minimum Operating Rental Income (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Year ending December 31,  
2025 $ 2,270
2026 1,274
2027 982
2028 704
2029 0
Total $ 5,230
v3.25.0.1
EMPLOYEE BENEFIT PLANS (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Benefit Plan Disclosure      
Percentage of employee contribution 30.00%    
Defined contribution plan, cost recognized $ 19.1 $ 18.6 $ 17.5
Maximum      
Defined Benefit Plan Disclosure      
Percentage of employer contribution 3.00%    
v3.25.0.1
RELATED PARTY TRANSACTIONS (Details)
ft² in Thousands
 9 Months Ended 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Apr. 30, 2023
ft²
Related Party Transaction        
Lessor, operating lease renewal term (in years)   10 years    
Operating Lease Income Comprehensive Income Extensible List Not Disclosed Flag   rental income rental income  
Board Member | Office Facility Lubbock Texas | Management        
Related Party Transaction        
Area of real estate property | ft²       25
Lessor, operating lease renewal term (in years)       5 years
Pro-rated monthly rent $ 25,000      
Monthly base rent   $ 58,000    
Annual base rent   2.50%    
Operating lease, lease income   $ 697,000 $ 150,000  
v3.25.0.1
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2022
Dec. 31, 2024
Loss Contingencies    
Remaining aggregate minimum purchase commitment   $ 645,660
Contract Termination Case    
Loss Contingencies    
Damages sought $ 15,000  
v3.25.0.1
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Payments Related to Purchase Commitments (Details)
$ in Thousands
Dec. 31, 2024
USD ($)
Year ending December 31,  
2025 $ 79,154
2026 86,202
2027 82,282
2028 90,213
2029 93,436
Thereafter 214,373
Total $ 645,660
v3.25.0.1
SUBSEQUENT EVENTS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Jan. 31, 2025
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Subsequent Event        
Payments to acquire businesses, net of cash   $ 1,395 $ 62,759 $ 163,921
Subsequent Event        
Subsequent Event        
Payments to acquire businesses, net of cash $ 18,500