i3 Verticals (IIIV) 47th Annual Raymond James Institutional Investor Conference summary

Business overview and verticals

• Focuses on public sector software across five niches: JusticeTech, utilities, public administration, transportation, and education.

• JusticeTech is the largest and fastest-growing vertical, with strong cross-sell and system-of-record positioning.

• Education and utilities provide stable, recurring revenue, while transportation and public administration offer growth through professional services and product leadership.

• Payments are deeply integrated, representing about 25% of revenue, with a focus on transactional and SaaS streams.

• Market is highly fragmented, with Tyler Technologies as the closest public comp, but most competition is from niche, geographically focused providers.

AI strategy and market impact

• No significant AI-native competitors or customer hesitation observed yet; company is proactively driving AI conversations with clients.

• AI seen as an opportunity to expand value proposition and deepen customer lock-in, especially through transactional revenue and bundled services.

• Focus on leveraging domain expertise, learned interfaces, and bundling to maintain competitive moats.

• Public sector expected to adopt AI slower than other markets, but company aims to lead adoption and capitalize on new tools.

Pricing, contracts, and revenue model

• Avoids seat-based pricing to encourage deep organizational penetration and user expansion.

• Pricing aligns with value add and customer scale, with significant revenue from constituent-based transaction fees.

• Recurring revenue is above 80%, with non-recurring revenue mainly from professional services and software license sales.

• Professional services revenue is lumpy, especially in utilities, impacting short-term growth but not long-term expectations.