our to executing the early with go to above level, our such at acquisition. continues and trend performance. operations and and activity revenue at indicators the regard demo levels. successes our a Activity that especially very results, generally market around that RFP in sales I'm quarter to also NIC pleased pre-COVID as objectives with with high positively the seeing in gratifying It's sector we're Brian. public Thanks, market or envisioned achieving we are fourth
payments we existing was the awarded one payment while in USC XX opportunity. our all NIC's $X an in to growing very extension. with market. fishing hunting fast to to detection NIC software Direct combination Direct its now Carolina completed division, of complements inclusion of and leading the of particular South which last recreation create market to million the prevention a USC team market, with management estimated acquisition a portfolio fraud expand solutions Tyler. solution, three proved We're in to license at market Payments this is rates. contract early a us obtaining factor week. excited existing Tyler's enterprise and rebid, strength which hosted AWS be data year members for early the expanding outdoor cloud outdoor the example, insights platform an of For outdoor NIC our in will competitive extension we addressing and Texas platform This and reservation allow part also welcome and a very their to Similar USC major recently our campground has Direct,
our the to Now few in the move take results accelerator like expected near the I'd both the to on impact and discuss term to a minutes our cloud, long including term.
And operated client most know, an maintenance a offering years, [ph] Wisconsin Eau our in a on-premises which stream. approach steadily have a the private cloud. we sales model market our multiyear would with grew a public sector, and in The a you and to SaaS As and more center with software XXXX. slowly our either of in model things decide SaaS hybrid to pace revenue the to cloud annual of market at Tyler move agnostic we for slowly but data Claire model license upfront as the the Tyler core cloud in model in mix a Since with clients an let first moved our SaaS generally products the many has choosing many hosted subscription than it as chose sector. or pursued the
data services the our eventually future from agreement business the which and $XXX.X decision of us significant on through new all we deployed our with deploying approach. revenues. efficiently In XXXX key products, an efforts In ultimate a our web majority which we took embarked goal with of also in two a collaboration cloud the in year we model of public XXXX in also first recognize to exiting made agnostic entered conjunction Amazon in in proprietary was AWS, to shift, cloud until come high cloud. optimize strategic a license with centers our development the to a be to the into the fact, approach it all-time cloud SaaS in to strategic shift cloud million year for and an clients that to our
product made we've Over our the first by on be will cloud our we two past initiatives optimized an efficient cloud that approach. with of all development to our products XXXX the remain XXXX. under years, pleased I'm substantial cloud that of with or progress or end report expectation major target early
In AWS. well every created made SaaS licenses. lifting almost clients through responsibility been to new things we've acquisition early the years market including and data embraced value has XX% begun of deployment to XXXX, like to our also has initiative. defining rate. the cloud operations, cloud approach, best to for of quarter conversions last and in cloud cloud increasing at reached clients the that full and cloud the practices cloud addition, to new changes compensation SaaS We've native. shifting strategy limited centers which our operations, cloud the with overall number in team, XX% In new as encourage operations the continued for existing out and cloud some achieve AWS, into of several each And also added the in in soft we've and We've a strategy sales in last development, sales In of an highs over fourth XXXX, as has cloud our our product embrace of quarters. first deploying the us also existing three clients as and on-premises contract a percentage we our reaching of new value transformation have cloud of came
enterprise move in clients as So recognize many clearly sync This offered continuing our Munis new the will of to cloud cloud powered based almost including transition follow. as is Effective permitting with to X, solutions. powered cloud clients products, will benefits the and by licensing Other applications be cloud of our acceleration of ERP enterprise some is XXXX, exclusively into shift January as the XXXX. and EnerGov our solutions. we market by major
is more to company choosing general We understood. cloud. revenue continue model the as expect licenses, of not a the stream model software has SaaS there's on significantly impacts to in XXXX, customers that which there With the a the market are typically percentage live go full of to clients a recognized safety. been revenue with The models, revenue in of an revenue reluctance today, can new transition headwind front particular replaced quarters. several systems subscription perspective, a generally will exception public move initial cloud And begins recognized grow recognition Rather is stream. From immediately. up by licensed revenue unlike recurring is with recurring that generally when that take financial
subscription over is stream a license a SaaS from client the X.X recurring would higher annual to significantly revenues the in the generate two of approximately because the same revenue a deal, times are annual client. the client However, life maintenance,
we for is years, several as the but headwind have this the extent experienced increasing accelerates. Some impact shift
Brian next decline will license accelerate. the and revenue to years, several Over mentioned, subscriptions continue maintenance while will as
example, as XXXX, For a maintenance higher License reaches multiple the margin margins revenue surpass margins impacted than have In they headwinds with decline, maintenance and impact XXXX perspective, XX% revenues very in well. point immediate subscription where were subscriptions. subscriptions short-term negatively are it will high those there stream licenses. the as revenues lost revenues. offsets are until From
In of to our headwood experience environment. SaaS around margin data more of We bubble two than the our some transition currently from all host the main can from AWS clients data we almost addition, centers internal proprietary in hosting one centers. costs XXXX will
uplift as with we ultimately we We public AWS. the our to and cloud, turn have those costs certain backdrop, closer Once exit pressure outlook duplicative operate of on we margins. XXXX efficiently we with running the and beyond. put a are will fixed products AWS that transition our we one to at are and clients to that for some data in like that new centers, Until an look in With centers, see margins. of will in incur more to hosting both costs even I'd associated existing completely data architected
the to levels over of Our The represent midpoint pre total and X.X% pandemic continuing revenue growth growth our business and the organic growth and representing light to of outlook shift is solid competitive approximately our in guidance position. new SaaS. continued even XX% return growth, increasing accelerated of would
our guidance XXXX of our approximately SaaS. slightly of That mix a software will contraction points. margin XXXX perspective, midpoint contract basis the We margin this factors even our as operating of operating is factors. year. operating be higher a before margins began impacting that the XXX few margin our in QX XX% with those like or expect non-GAAP implies XXXX approximately non-GAAP margin break of From implied said, new I'd consistent XXXX major than to down
negatively category year The material our we of of our impact over to the margin of part becoming first long be pressures $XX XXXX impact bubble the mix, of cloud in cost with increase profit term of conversions, strategy SaaS operating business million approximately $XX a million. on-premises net consider to will year by company, increasing first in along
The factors is sales second since last year, shows, some category travel up discussed trade reductions the that costs, in experience returning revenues low and significant of during pressure but calls. margin of travel. the end on prior of include costs slowly billable been have made causing pandemic, and margin These which we've related
pre not, COVID return and costs will some Importantly, to have levels. not
these of include disruptions pressure also continue combined healthcare time approximately pandemic. summary of items outlook. and challenges. the healthcare market margin estimated quarterly or margin operating The healthcare labor for a basis catch on that impact inflation a with during some of up The to of effects all our website company of and third category total points the increased from XXX posted impact experiencing in XXXX wage with We rise deferred the our costs. result non-discretionary like supplemental of as data, expenses costs virtually accounts a these of every one were are We've factors
by these out in expect We XXXX, Looking pressures margin margin beginning of are The and further XXXX, from growth and revenue the we costs. tailwinds. the products license bottom and see that declining be continue factors, bubble of expansion. cloud we products flow believe headwinds to to and margins timing an that in will will transition in beyond of something as that cloud long some our operating along term start return transition by to impacted particularly XXXX short transition the ebb varies will accelerating term cloud revenues and some creating
enterprise to X% and slowed expected revenue our growth for in the to in example, of shifted most a SaaS. approximately XXXX, For product, ERP approximately and to X.X% business new grow largest mix is XXXX profitable as significantly
XX%. was example, new the XXXX, last quarter was mix in For over it year, XX%. business Fourth
XX% the expectations XXXX, reach are the transition the as it other to SaaS for product's However, experience accelerate growth that of in begins this around uplift. to early and side
and five accounted have In will sector approach long-term transition from the executing long-term in time creating dollars strategic on cloud as market. we XX% Tyler's our value. XXXX, revenues into I leader than next XXXX, it XXXX head future. clear the just to recurring XXXX, to and in about the years. technology market in billion entered the we am excited XX in We're ever in XXXX, million revenues $XXX In massive think amazing platform XXXX more government public we As will surpass the dollars revenues. for $X.X we that an of It's in and added revenues billion of exceed XX% incredible they took years have total
our reorganized further We team aligned capitalize on NIC's payments payment with and Tyler to this opportunity. have team
core elevated investments extremely applications strong market Our our is paying as and are competitive remain environment our rates pre-pandemic off high. win and across position our
for expand we as One payment With transition line cloud. XX,XXX like to the to to across complete existing with that, margins establish, and our of poised over that locations, take advantage the cross-selling we installations and is we'd Q&A. to client our something than growth accelerate decades are biggest takes our XX,XXX assets open opportunities and base of more to