The company's revenue backlog increased by 8% to $2.03 billion, indicating strong future revenue potential from signed contracts. This suggests successful sales and marketing efforts.

Tyler Technologies completed acquisitions of Resource Exploration, ARInspect, and Computing System Innovations in 2023. These acquisitions are part of their strategy to expand product and service offerings.

The company is making significant investments in optimizing products for deployment in the public cloud and transitioning clients to Amazon Web Services (AWS) for cloud hosting. This indicates a strategic shift towards cloud-based solutions.

The company reported a decrease in voluntary workforce turnover to 8%, a return to pre-COVID levels, suggesting effective management of human capital and a stable work environment.

Tyler Technologies invested in talent development programs and AWS cloud certification training for employees. This demonstrates a commitment to employee skill enhancement and technological advancement.

The company implemented new accounting and financial management software effective July 1, 2023, to improve efficiency of financial and related business processes. This indicates a proactive approach to operational improvements.

The 10-K highlights that cybersecurity threats continue to evolve and pose a risk to the company and its clients. The company is continuously investing in security infrastructure, tooling, and related resources.

The company relies on third-party providers, including AWS, for hosting services and other technology-related services. Any disruption in these services could adversely affect the business.

A prolonged economic slowdown or recession could reduce demand for the company's software products and services. Governments may face financial pressures that could affect growth rate and profitability.

The 10-K filing acknowledges competition from local, regional, and national firms, including Oracle, Infor, and SAP. This emphasizes the need for continuous innovation and differentiation.

The company relies on contracts, copyrights, and trade secret laws to protect its proprietary rights. The inability to protect these rights could have a material adverse effect on the business.

The market for the company's products is characterized by technological change. The company's future success will depend on its ability to enhance existing products and develop and introduce new products.

The company's gross margin increased by 1.7%, indicating improved operational efficiency in managing costs relative to revenues.

General and administrative expenses increased by 15%, primarily attributed to increases in amortization of software development for internal use, travel-related expenses, and higher personnel costs. This suggests potential inefficiencies or increased investments in administrative functions.

Sales and marketing expense increased approximately 10%, due to higher bonus and commission expense relating to sales growth, trade show and user conference expenses, travel-related expenses, and share-based compensation expense.

Research and development expense increased 4% in 2023 compared to the prior period, mainly due to a number of new Tyler product development initiatives across our product suites, including increased investments in research and development at recently acquired businesses.

In 2023, amortization of software development costs increased $6.1 million or 94%, respectively, compared to the prior period and is attributable to new capitalized software development projects going into service in the past year.

The company is transitioning from proprietary data centers to the public cloud.

The company repaid $345 million of term debt, indicating a focus on deleveraging and strengthening its balance sheet.

The company did not repurchase any shares of its common stock, indicating a shift in capital allocation strategy compared to prior periods.

The company made payments for acquisitions of $62.8 million.

The company is focused on diversity and inclusion initiatives.

The local government software market continues to be active with sales activity indicators generally trending at or above pre-pandemic levels.

It is possible that our clients may elect to not renew maintenance contracts for our software, trying instead to maintain and operate the software themselves using their perpetual license rights (excluding software applications that we provide on a hosted or software as a service basis).