H. Lynn Moore
Chief Executive Officer, President and Director at Tyler Technologies
Thanks, Hala. Our first quarter results provided an exceptional start to the year, exceeding our expectations across key metrics, including revenues, earnings, operating margin and cash flow. Recurring revenues grew almost 9% and comprised 84% of our total revenues. SaaS revenues grew 22%, our 13th consecutive quarter of SaaS revenue growth of 20% or more, exceeding expectations of a 20% CAGR in SaaS revenues through 2025. In addition, transaction revenue surpassed our plan with higher volumes and positive pricing trends.
Our performance demonstrates the power of our business model against the backdrop of robust public sector demand, supported by generally healthy budgets. Our leading sales activity indicators remain elevated, and our pipeline reflects growing sales synergies as we execute our integrated go-to-market strategy. During our Investor Day last year, we announced our Tyler 2030 Vision, which aligns our strategic focus on four key growth drivers: leveraging our installed base, expanding into new markets, completing our cloud transition, and growing our payments business.
Leveraging our unmatched installed base has been a cornerstone of our growth strategy, and we're pleased with the outstanding execution by our sales organization, driving impactful cross-sell and upsell activity that further deepens existing client relationships and expands our market reach with new client engagements. Notable cross-sell and upsell wins during the quarter included a records management and ERP pro contract, including payments with Ada County, Idaho, leveraging our state enterprise relationship.
And on-premises contract, for our full enterprise Public Safety suite with the City of Columbus, Georgia, adding to its existing Tyler courts, corrections, ERP, tax and permitting solutions. An enterprise ERP win with the Texas Legislative Council facilitated by our existing Digital Solutions division relationship in Texas, which avoided an RFP process to secure a new enterprise ERP client in a nontraditional market.
A combined SaaS contract with the city of Juneau, Alaska, for enterprise assessment and tax and enterprise permitting and licensing solutions. By prioritizing the cloud as one of our key growth drivers, we are unlocking new levels of innovation and responsiveness in making the cloud accessible for our clients, while providing enhanced security.
Our new software SaaS mix continue to expand and comprised 93% of Q1 new software contract value. We're particularly encouraged to see a growing preference for cloud technology in the state and federal market with our application platform and an accelerated shift in Public Safety cloud demand with multiple client-driven SaaS selections. In fact, 75% of our first quarter enterprise Public Safety deals were SaaS. Because the pace of the shift to SaaS in these markets this year is faster than we previously anticipated, we have lowered our expectations for license revenues for the year. And across Tyler, the volume of flip signed in the first quarter was in line with our expectations, with a 21.5% increase in average ARR.
Key first quarter new SaaS deals and flips included multiyear SaaS arrangements with the Hawaii Department of Natural Resources and land between the Lakes National Recreation area that build on our momentum in the outdoor recreation space. Competitive SaaS wins for Public Safety included a full enterprise Public Safety suite contract with Palm Beach, Florida, which was focused on a cloud-only strategy. We also won a sole-source enterprise Public Safety contract with the city of Evanston, Illinois, which expands our growing footprint in the Chicagoland area. An enterprise appraisal in tax for Fulton County, Georgia, which includes Atlanta.
The contracts with ARR of more than $1 million was executed on accelerated timeline with a go-live completed within one month. Two Public Safety SaaS flips with Beringham, Alabama and Germantown, Tennessee, both of which were client-driven SaaS selections and accelerated go-lives. The Kansas judicial branch signed an enterprise justice appellate court SaaS flip as we continue to see a growing interest in moving to the cloud from our on-premises courts clients.
Another key driver of our long-term growth is our transactions and payments business. As I mentioned earlier, better-than-expected transaction volumes contributed to first quarter revenues that exceeded our expectations. In the first quarter, we signed 288 new payments deals across Tyler, representing approximately $9 million in projected ARR. In our state enterprise portal business, we signed a new three-year enterprise contract with the State of Mississippi, extending our existing 14-year relationship. Our enterprise agreement with the State of Idaho was also renewed for two years in a rebid through the NASPO Citizen Engagement agreement.
We're also very pleased to see early traction and growing demand for the solutions we added to our portfolio through our 2023 acquisitions of CSI, ARInspect and RexourceX, each of which brought us expanded AI capabilities. With CSI, we signed a contract with our existing course client in Dallas County, Texas, adding approximately $900,000 of ARR. We've seen demo activity double over pre-acquisition levels for our augmented field operation solution, formerly ARInspect, with first quarter wins that included the city of Newark manhole inspections and an expansion contract with the New Jersey Department of Environmental Protection. For our priority-based budgeting solution powered by RexourceX, we signed contracts with Collier County, Florida and Fort Worth, Texas that added almost $600,000 of ARR.
Now I'd like Brian to provide more detail on the results for the quarter and our updated annual guidance for 2024.