NIC had a very successful year in 2012, with record revenues and earnings. The company continued its strategy of innovation, focusing on mobile technologies and expanding its portfolio of government services. It also grew its business through new partnerships, contract renewals, and sole-source agreements. A key study found that NIC's self-funded eGovernment model has helped states avoid millions in costs.

1. we build on INNOVATION
INNOVATION
2 012 an n ua l r e p o r t

2. we build on INNOVATION

3. LETTER
TO
STOCKHOLDERS

4. 1
Dear Fellow
And then there’s NIC. In 1992 when we As we rang in the new year of 2012, behind us, in
2011, was one of our most successful years ever –
ran just one application using dial-up
record revenues, a record-breaking four new state
Stockholders service that could only relay data
modem-to-modem, did we imagine
partnerships, and national recognition placing us
among the best of the best companies in America.
Yet we knew there was no time to rest, hit a plateau,
Do you think in 1914 when Henry Ford
mobile devices that would make our or continue as is. So, we did what we do best: evolve.
installed moving assembly belts in his
future library of 7,500 eGovernment In 2012, NIC generated total revenues of $211.1
manufacturing plants that he envisioned million, up 17 percent over 2011; total operating
services accessible anytime, anywhere? income increased 12 percent from the prior year
the C-MAX hybrid car that can take you
to $43.2 million; and earnings per share reached
from Detroit to New York City on one tank But, that’s what great companies do. We begin $0.40, up from $0.35 in 2011. In 2012, we utilized
with a revolutionary product or service, and push our free cash flow to grow stockholder value, returning
of gas? Or what about Nike co-founder Bill more than $32.5 million in the form of two special
the envelope of invention for decades to come.
Bowerman in 1971? When he was inventing Innovation never stops. Great companies build a cash dividends totaling $0.50 per share. And all
legacy of reinventing what they do best to make of this happened during an investment year in
lightweight athletic shoe soles using his it even better. We are always looking ahead with which our portal teams worked hard to ramp up
a belief that the best is yet to come. That is our the four new portals secured in 2011 and launch
wife’s waffle iron, do you think he thought
story. It is what we celebrated as part of our 20th the first phase of a very large project in Texas,
of today’s shoe that weighs less than five anniversary in 2012. “We Build On.” We build on DPS Direct. We were successful in managing those
innovation. We build on our success. We build on investments while keeping our focus on growth.
ounces and is virtually seamless? Or take
our partnerships, efficiencies, corporate citizenship, By the second quarter of 2012, each of the four
Steve Jobs. Back in 1976 when he and and more. Our passion hasn’t wavered. We new state portals secured in 2011 was generating
continue what we began in 1992 – to revolutionize revenues. During that same time, our New Jersey
Steve Wozniak were working on the Apple the paper-intensive, waiting-in-line means of portal became profitable solely through non-DMV
I, did they know that one day the iPhone conducting business with government into a services. Just one quarter later, our Oregon portal
secure, click-of-a-button, swipe-of-a-screen had completed its start-up phase as we finished
5’s retina display would be so clear that interaction. We dominate this industry and are still migrating hundreds of services and websites
radically changing the way people do business from legacy platforms. And, there was momentum
the human eye would not be able to detect
with all levels of government today. In some ways, at the federal level too, as the Pre-Employment
individual pixels? I believe we’re just getting started. Screening Program (PSP) was introduced to a
2

5. 3
| continued |
new audience of users with the debut of PSP 2.0 and tablet users.” Even now, the Pew Research I replied, “We want to change the world by
during the fourth quarter of 2012. Center states that for many young adults, those improving government.” It’s as simple as that.
with no college experience, and lower income We created this industry and we will continue to
As we grew the core business, we were also
households, a smartphone is the primary means of make it more efficient to interact with all levels
working on our future. In the second quarter of
accessing the Internet. Today, NIC has launched
2012, three new requests for proposal were issued of government. I sincerely appreciate the hard
more government mobile applications than any
for enterprise-wide eGovernment services. Six work and dedication of the more than 725 NIC
other company. In 2012, we launched 40 new
months later, we secured another first in the history employees who made eGovernment flourish in
native mobile applications, as we continue to
of our Company – a sole-source agreement for 2012, and who continue to invent more creative
expand the reach of our eGovernment services.
self-funded, eGovernment services with the We also “mobile enabled” many of our existing services today. I also want to thank our Board of
Commonwealth of Pennsylvania. It was definitely a online services. In Rhode Island, 90 percent of Directors. Their diverse areas of expertise and
year in which we continued to build on our success. the online services that we have developed over strategic oversight contribute to keeping NIC at
NIC’s Executive Leadership Team from left:
the years were retrofitted to a “responsive design” STEPHEN M. KOVZAN, Chief Financial Officer ; the forefront of eGovernment innovation. And
We also built on our innovation. I remember when
template in 2012. This means the online service is ROBERT W. KNAPP, Chief Operating Officer ;
our Company made the shift from dial-up, per-minute finally, I’d like to thank you – our stockholders. Your
HARRY H. HERINGTON, Chief Executive Officer
coded in such a way that it automatically detects support helps millions of Americans file, apply, and
revenue generation to its current transaction- and Chairman of the Board ; and WILLIAM F.
the screen size of the device being used, whether BRADLEY, JR., Executive Vice President, Chief register countless interactions with government
based Internet format. What once seemed so
it is a desktop computer, laptop, smartphone, Administrative Officer, General Counsel, and Secretary.
revolutionary is now part of everyday business. securely and efficiently wherever technology takes
or tablet, and scales the design and adjusts
That’s also how we now view the evolution of them. I am proud to have served as Chief Executive
content accordingly. designed “.gov” websites, they are not eGovernment.
mobile. We are a company with a mobile-first Officer and Chairman of the Board during our 20th
Just as your front door is an entry point to your
strategy in how we approach eGovernment. There What is important to our Company as we look to anniversary year, and I look forward to leading this
home, a “.gov” home page is an access point to
was a day when every transaction took place at a the future is that however technology evolves, it is Company as we “build on” our success in the future.
our eGovernment services. True eGovernment is the
desktop computer or an over-the-counter credit our job to use it to make conducting business with
service – renewing a professional license, applying Thank you,
card device. But that’s all changing. The Pew government secure and efficient. That essence of
for a handicap parking permit, filing taxes,
Research Center, a nonprofit, nonpartisan group eGovernment is as solid today as it was 20 years
checking in harvested wild game, searching for
that provides information on the issues shaping ago. In 2012, it fueled our organic growth, with
a property lien, looking up a district court record,
America, said in an April 13, 2012 study, “Digital same-state portal revenues increasing a steady
pulling a truck driver’s inspection history report,
Differences,” that “within the next decade, 10 percent over 2011, and continued the momentous
and much, much more. Harry Herington
smart-device swiping will have gained mainstream interest in our business model. While we are proud
acceptance as a method of payment and could to have won nine out of the top 10 awards in the As I was interviewed this past spring for the Ernst Chief Executive Officer and
largely replace cash and credit cards for most Center for Digital Government’s 2012 “Best of the & Young Entrepreneur of the Year® Award, I was Chairman of the Board
online and in-store purchases by smartphone Web” competition for user-friendly and well- asked what our goals are. Without hesitation, NIC Inc.
4

6. 5
3
G
rowing stronger
year over year. $ 211.1
As shown on the charts below, NIC had a year of strong growth. This growth
caught the attention of Standard Poor’s, which added NIC to the SP SmallCap
600 Index in 2012.
million
total revenues
WE
EARNINGS per share $ 0.40
Up 17% over 2011
BUILD
0.40
0.35
$0.40 earnings per share $ 43.2 ON
million
FINANCIAL
EGOV’s stock price increased
$0.35
nearly 23 percent in 2012; noted
0.30 by The Kansas City Star as
$0.28
one of the strongest performing operating income
0.25 stocks among publicly traded
STRENGTH
Kansas City companies. An increase of 12%
0.20
$0.19 $0.22 over the prior year
$0.17
$0.19
$
32.5
0.15 $0.12
199.4
$0.11 $0.10
0.10
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$
million million
in special cash dividends
PORTAL REVENUES in millions total portal
was paid to stockholders in 2012,
totaling $0.50 per share. revenues
200 $199.4
Up 17% over 2011
$170.3
150
150
$
$155.2
26 %
$128.6
100
million
$96.8
$82.5
50 $57.9
$70.0
non-DMV portal
revenue GROWTH
$48.5
$40.2 or $2.35 per share has been paid
to stockholders in special cash
0 dividends since 2007. Over 2011
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
6
4

7. 7
3
$
61 MILLION
M
aking government
more accessible
WE works for everyone.
BUILD
This year two studies revealed that self-funded eGovernment works. One showed
it is preferred by citizens, while another noted it has helped the state of Utah avoid
$61 million cost millions of dollars in costs.
avoidance by the
ON
state of Utah
over five years
by placing nine high-
volume services online
our 67%
and utilizing NIC’s self-
funded model, according
to a study by the
University of Utah. Since
$
1999, more than 1,000
of Americans would
model
online services have
been developed for the
state by NIC’s subsidiary,
pay an efficiency fee
to conduct business with government online
Utah Interactive, LLC. versus in line at a government agency office.*
*2012 Wakefield Research
67%
nationwide survey of 1,000
nationally representative
American adults ages 18
and older.
$10
the amount
nearly one-third
of Americans
are willing to
pay as an online
$
13 the cost per transaction saved by providing a government service online
versus offline (waiting in line at a government agency office), according to a
study by the University of Utah.
efficiency fee
per transaction
in order to avoid
Download the Layar app to your smartphone. standing in line
Open the app, hover your phone over this page and at a government
press “Scan.” Look for the “Tap to view” button to
discover additional online content, such as the entire
agency office.*
University of Utah executive summary.
8

8. 9
T
he NIC family pennsylvania
continues to grow.
NIC continues to grow in two significant ways: 1) Adding new partners, and
new
contract
2) Growing the business we do with current partners who continue to place their
WE
confidence in us through contract rebids and renewals. More than half the states in
the U.S. now partner with NIC for their eGovernment needs.
Contract Renewals
Fourteen partners exercised contract
new Contract
The Commonwealth
of pennsylvania
BUILD
ON
extensions in 2012. In 2012, NIC secured a new
partnership through its first
The state of arizona signed a one-year
sole-source agreement.
contract extension with NICUSA, Arizona Division.
Pennsylvania became the 29th
partnerships
The Federal Election Commission state to partner with NIC to
signed a contract extension with NIC Technologies contract provide eGovernment services.
through April 2013. renewals The contract term is for five
The Federal Motor Carrier Safety years with renewal options
Administration signed a one-year contract through December 2022.
arizona
extension with NIC Technologies.
hawaii
The state of Hawaii signed a three-year contract
extension with Hawaii Information Consortium. iowa
The state of Iowa signed a contract extension the federal
with Iowa Interactive through March 2013. kansas
motor carrier
safety
The state of Kansas signed a one-year contract administration alabama
kentucky
extension with Kansas Information Consortium.
The commonwealth of Kentucky signed maine
a one‑year contract extension with Kentucky Interactive.
contract
The state of Maine signed a two-year contract rebid
extension with Maine Information Network, which
includes options for the state to extend the contract for
two additional two-year renewal terms. new jersey
The state of New Jersey signed a one-year oklahoma
contract extension with New Jersey Interactive.
rhode island
The state of Oklahoma signed a one-year
contract extension with Oklahoma Interactive. the federal
election
Contract Rebid
utah
The state of Rhode Island signed a commission One partner signed a
contract extension with Rhode Island Interactive vermont
through March 2013.
new contract with NIC
west in 2012 as part of the
The state of UTAH signed a three-year contract virginia mandatory rebid process.
extension with Utah Interactive.
The state of Vermont signed a contract The state of Alabama
extension with Vermont Information Consortium signed a new contract with Download the Layar app to your smartphone. Open the
through April 2013. Alabama Interactive to manage app, hover your phone over this page and press “Scan.”
The state of West Virginia signed a one-year its eGovernment services for Look for the “Tap to view” button to read about NIC’s 20th
contract extension with West Virginia Interactive. up to five years. anniversary year and what partners have to say about the
eGovernment efficiencies NIC has delivered during the
past two decades.
10
4

9. 11
New revenue streams
flow in 2012.
WE Generating new and more profitable revenue streams on an annual basis is the
lifeblood of every successful company. By mid-2012, each of the four portals secured
in 2011 was generating revenue.
BUILD
ON
Mississippi
Mississippi ranked among the top 5 Web portals in the country after partnering with
NEW
NIC for just 12 months. The site also won six additional awards in 2012, and two
awards for the mobile version of MS.gov.
BEGINNINGS Delaware
Delaware launched several new online services, including the Public Integrity
Reporting System, which features registration, employer authorization, and financial
reporting for lobbyists, financial disclosure for public officers, and an administrative
back-end system for the Public Integrity Commission. It also helps meet Governor
Markell’s goal of providing greater transparency and accessible data to the public.
Oregon
Oregon partnered with the Secretary of State’s office to launch the new portal’s first
service, Business Xpress, the collaboration of nine state agencies bringing together
varying state online services, forms, and information into a single online location.
Maryland
Maryland developed several new services during its first year, including the Central
Business Licensing and Registration system, the Maryland Waste Kitchen Grease
Registry, the Insurance Contact Registry Search, and the Maryland Practice Driving
Test mobile application for Apple and Android platforms, as well as a suite of driver
and vehicle search and monitoring services for the Maryland Motor Vehicle Administration.
12

10. 13
O
ur services get 200
better every year.
Each year we develop new services so more people can conduct business securely
million
transactions
WE
and efficiently across all screens – Web, mobile, kiosks, and more.
were completed using online
services developed by NIC.
$
22.5 BUILD
Billion ON
EFFICIENCIES
was securely
processed
“We’re confident now that
In New Jersey, when a police officer or a by NIC on behalf
545,022
tolling authority needs to rely of its government partners.
on that temporary tag, it is
500
clearly legible ... even before
they get out of their cruiser.
Temporary vehicle tags were processed That is light years ahead of
through the New Jersey Temporary Vehicle Tag online where we were before,”
service, which became mandatory on July 1, 2012. said Ray Martinez, Chief new revenue-
July 1 2 012
Administrator of the New Jersey
Motor Vehicle Commission. generating
Government Technology, online
Nov. 27, 2012
applications
were developed by NIC
portals in 2012.
7,500
“Secretary of State Charles Maine launched a
Summers describes the customized version of
addition of service at AAA the Driver’s License/ID
offices as a ‘force multiplier’ Renewal Replacement
of its ability to effectively online service for AAA,
serve its customers.” allowing for driver’s total unique
licenses to be renewed or
Government Technology,
replaced at AAA offices.
online services
Aug. 10, 2012 Download the Layar app to your smartphone. Open the
have been developed by NIC app, hover your phone over this page, and press “Scan.”
since 1992. Look for the play button and tap for more examples of
great eGovernment solutions featured in the video,
“eGovernment Delivers.”
14

11. 15
WE BUILD ON EFFICIENCIES
6,500 Texas state inspection
stations deployed
30,000+
marriages take place in Hawaii annually. A new
online service developed by NIC’s Hawaii team
allows couples to apply online for a civil union or
the new Vehicle Inspection Connection system in September
marriage license in Hawaii, making the process nearly
2012 as part of the DPS Direct suite of services.
1
paperless except for the marriage certificate itself.
In the first three months of operation:
• .4 million vehicle inspections were completed.
2
$
• 50,000 certificates were ordered.
• 22,000 end user accounts were activated.
billion 48,109
“The campground reservation
solution was able to process 68
reservations in a one-minute time
period. This resulted in less frustration
campsite nights were reserved
for campers and reduced stress on
in 2012 by 17,373 campers through
our limited call center resources.”
the Maine online campground
reservation tool, contributing Tom Morrison, Director of Operations
nearly $1 million to the Maine and Maintenance, Maine Department of
was processed through Vermont’s
Agriculture, Conservation and Forestry
business tax application, State General Fund.
VTBizFile, since the service
originally launched.
$ 250,000
state of Arkansas estimates it will save
is the amount the 728,524
commercial truck driver records were pulled in 2012
using the Pre-Employment Screening Program that
NIC developed and manages on behalf of the U.S.
annually from two enhancements made to the Arkansas State Jobs website that Department of Transportation Federal Motor Carrier Safety Administration.
resulted in an entirely paperless hiring process.
16

12. 17
106
M
obile is on the rise.
As the use of tablets and smartphones continues to expand, so does NIC’s
development of mobile-friendly sites and services, helping to make eGovernment
accessible anytime, anywhere.
106 native mobile
WE
applications
have been developed by
NIC, and they have been
downloaded more than
BUILD
1.5 million times.
ON 40
26,000 2,000
mobility
26,000 New Jersey 2,000 downloads of
charities can be Arkansas’S “ReadyAR”
“investigated before natural disaster
40 new native you donate” using preparedness
mobile applications the Charity Lookup mobile application
were launched by NIC mobile application took place during National
in 2012, resulting in available for the iPhone, Preparedness Month.
328,365 downloads. iPad, and iPod touch. The mobile app includes
The mobile application was information on weather
featured in a June 12, 2012 conditions, road closures,
article in USA Today. and emergency preparedness.
72 50,000 7
72 iPad kiosks 50,000 harvested
are available deer in Indiana were 7 industry
for on-site reported using associations,
customer use the CheckIN game including the Republican
at 26 Tennessee driver reporting system Governors Association, the
service facilities, using a in 2012. American Association of
custom application developed The application takes a Motor Vehicle Administrators,
by NIC’s Tennessee team “mobile-first” approach using and the Montana Office
that allows citizens to renew responsive design to format of Technology, have used a
or replace their driver’s correctly on a computer, mobile agenda application
license, submit their payment, smartphone, or tablet. developed by NIC’s West
and receive their license Game can be checked in Virginia team.
within minutes. real-time from the field.
18

13. 19
3
G
iving back is
good business.
NIC employees pride themselves on giving their time and talents to worthy causes.
WE
Each year the team and individual who go above and beyond giving back to their
community receive NIC’s Team of the Year and Citizen of the Year awards.
BUILD
New revenue ON
streams flow community
135 units
of blood
NIC’s Oklahoma portal received were donated
2 awards of
in 2012.
the Team of the Year award for by NIC employees as part of
donating more than the Company’s 20th anniversary
292 hours of celebration. The American Red national
community service
Cross estimates the donated blood
will save nearly 400 lives.
recognition
4 to NIC’s newest portals: Mississippi, Delaware, Oregon,
– 20 charitable events in were received by
and Maryland all generated revenues by the second quar-
the Oklahoma City area. NIC’s CEO Harry
ter of 2012. Herington on the
same day – June 5,
Mississippi ranked among the top 10 Web portals in the 2012. Herington was
country after partnering with NIC for just 12 months. awarded the Ernst
Young Entrepreneur
Delaware launched several new online services, including of the Year® Award
the Public Integrity Reporting System, allowing lobbyists for technology in
and public officials to disclose expenses, as well as gifts the Central Midwest
related to the lobbying activity of each piece of legislation. Region, as well as
The service also allows the public to search all lobbying the first-ever Charles
activity in the state. Shinholser Award for
Oregon partnered with the Secretary of State’s office to Volunteerism from
launch the new portal’s first service, Business Xpress, the Concerns of Police
collaboration of nine state agencies bringing together vary- Survivors (C.O.P.S.).
ing state online services, forms, and information in a single The Shinholser Award
website. is C.O.P.S.’s highest
Jill Willhoite, director of marketing for NIC’s volunteer honor
Maryland developed several new services during portal, received the Company’s 2012
Oklahoma
its first and was awarded
year, including the Maryland Waste Kitchen Grease Reg- award for going above and
Citizen of the Year to Herington for his
istry, the Insurance Contact Registry Search, and giving back to her community.
beyond in the outstanding support NIC’s CEO gives back to the community in a big way.
Maryland Practice Driving Test mobile application for the of the families of Download the Layar app to your smartphone. Open the
Android platform. fallen officers. app, hover your phone over this page, and press “Scan.”
Look for the play button and tap to watch a video showing
how his initiative, Ride4Cops, is changing lives.
20
4

14. 21
Top 1%
Recognition
NIC’s position
follows success.
The success we had in 2012 did not go unnoticed. We continue to be recognized for
among all
our innovative eGovernment solutions and the Company’s financial strength.
publicly traded
WE small companies
by ranking 31st on Forbes’
list of the “100 Best Small
BUILD
Companies in America.”
This was the Company’s NIC’s ranking by
fourth consecutive year to Forbes on its list
make the list, and NIC was of the “25 Fastest- #1 – ranking of
ON
the only company from the Growing Technology Alabama.gov
state of Kansas. as the best
Companies in America.”
More than 5,000 publicly traded state website in
technology companies were the country
recognition
evaluated based on market as part of the Center for
capitalization and a minimum of 10 percent Digital Government’s
revenue growth over the past three years, among “Best of the Web”
other factors. NIC was the only Midwestern competition. This is the
company to make the list. first time in state history
that Alabama has received
this first-place honor.
9 out of the Top 10
best state websites in
the country, as ranked
by the Center for Digital
1 NIC employee, Dan Chapman, was selected
Government, are NIC
as one of 18 individuals from across the United States
partner states.
to serve on the Presidential Innovation Fellows program
in Washington, D.C. More than 700 individuals applied
to be a part of the program.
8 CEOs were
interviewed
for the Forbes Insights
75%
of the eGovernment services
1st ever
IDEAS Award
research piece: “Inspired recognized in the business-
for Growth: Lessons from to-government category by the National Association of
Middle Market Companies,” of the Center for Digital Government’s “2012 Secretaries of State (NASS)
including NIC’s. He was Digital Government Achievement Awards” went to Nebraska for its online
also quoted in an April 20, were developed by NIC portals. application that tracks proposed
2012 Forbes article about state rules and regulations.
the research.
22

15. 23
WE BUILD ON recognition
AAMVA PACE Award Texas – Driver License Texas – Website/Dynamic Interactive Media Awards NASPO 2012 George Cronin Alabama – Award of Excellence –
Best Use of Social Media Eligibility and Reinstatement Media: Public Sector – Outstanding Achievement Award Awards for Procurement Web Applications/Services
Colorado, Guy Department of Public Safety – Texas – Government Excellence Category for Alabama.gov
Utah – Warrant Checks Driver License Renewal Arkansas – Arkansas Business
Vroom Campaign
Delaware – Public Emergency Listing System Indiana – Silver Award, Interactive
Idaho – On-The-Go (OTG)
aWWWards Davey Award Meeting Calendar (ABEL), Honorable Mention Distinction – Courts.IN.gov
Mobile Payments Alabama – Alabama.gov,
Utah.gov, Honorable Mention Best in Class
Hawaii – Mobile Application Silver Award Government National Association of Indiana – Silver Award,
Best of State Award Website Design MS.gov Secretaries of State (NASS)
for Annual License Renewal, Interactive Distinction –
Utah.gov, Winner RI.gov IDEA Award
Honorable Mention Colorado – Online Driver’s Indiana Transparency Portal
Utah.gov Nebraska – Rules and
Bright Idea Award, Ash License Renewal Service –
Texas – Driver License Regulations Tracking System Rhode Island – Silver Award, RI.gov
Center for Democratic Guy Vroom Campaign, Silver International Association of
Renewal and Change of Award Integrated Marketing
Governance and Innovation at Commercial Administrators PTI Web 2.0 State and Local Top US Government Websites
Address, Honorable Mention
Harvard Kennedy School Mississippi – MS.gov, (IACA) Merit Award Government Award Maine – Design Shack
Rhode Island Quick Start Government-to-Business Category Silver Award Government awaii – Mobile Applications
H Delaware – Public Meeting
Maine – Regulatory Licensing Website Design for Annual Business Filings Calendar VEMA (Visual Excellence in the
Bronze Quill Award and Permitting Rhode Island – RI.gov, Utah – Mark Index Connect Multimedia Arts)
Marketing and Communications MarCom Award
2011 Texas.gov New Jersey – Temp Tag Service Silver Award Government Utah – Winner – Utah.gov
Mississippi – Gold, Website SC Government Management
Marketing Campaign Website Design
New Jersey – Uniform Design – Mobile MS.gov Information Systems W3 Awards
nteractive Media Design
I Commercial Code Service Excellence.gov Award Association Indiana – Gold Award,
Oklahoma – Gold, Website
Texas.gov Online
2011 Utah – Finalist, Social Media, Elite Achiever Award Government Website
South Carolina – Secretary Design – OK.gov Home Page
Advertising Campaign Connect.Utah.gov South Carolina – UCC Online Category – IN.gov
of State Uniform Commercial Oklahoma – Gold, Website
West Virginia – Finalist, Application with the SC
Center for Digital Government Code Online Design – Gov. Fallin Website Indiana – Silver Award, Web
WV DMV Vehicle Secretary of State
Best Fit Integrator Award Application/Services Category –
Texas – Nurse Licensing Registration System TechPoint Mira Awards
My Maine Connection Silver Communicator Award IDOI Rate Watch Application
Renewal Nominee
Rhode Island Quick Start Government Computer News olorado – Guy Vroom
C
Utah – One-Stop Business Award for IT Achievement Indiana – Innovation of the Year Campaign (for the promotion Rhode Island – Silver Award,
Best of the Web Registration v. 4 Arkansas – of Colorado’s Online Driver’s Rhode Island Government Online
1st Place: Alabama Arkansas YOUniversal Mobile Web Award License Renewal Service)
Driving State Digital ndiana – Best Travel
I Web Marketing Association’s
3rd Place: Utah Financial Aid System,
Government Category Honorable Mention Application – Summit International Awards WebAward
4th Place: Rhode Island Indiana – Mobile Bus DNR iPhone Application Indiana – Silver Award
Hawaii – Best Mobile Government
5th Place: Mississippi Inspection Application Government Customer
Service Support Indiana – Best of Show Mobile Sunshine Review – Website – Mobile Applications for
Finalists: Maine, Nebraska, West Virginia – Homeland Excellence Awards Application – Sunny Award Annual Business Filings
Texas, and Virginia Security Emergency Utah – Finalist, DNR iPhone Application Indiana –
Top Transparency Website Indiana – Outstanding
Digital Education Management Suspicious Activity Technical Excellence Rhode Island – Best Government Website – IN.gov
Achievement Award Utah – Master Index Utah – Finalist, Customer Government Mobile Application, The Communicator Awards
Virginia, Master the Math Focus Excellence RI Government Online Mississippi – Award of Mississippi – Outstanding
mobile application Government Internal Category Distinction – MS.gov Structure Government Website – MS.gov
Utah – GovPay GovMark Award NASCIO Recognition Awards
Digital Government Utah – Media Campaign Mississippi – Award of Texas – Government Standard of
Hawaii – Finalist, Digital Distinction – MS.gov
Achievement Award Center for Plain Language Excellence – Texas.gov
Texas – Best Digital Program – Government to Business Navigation
Government-to-Citizen Category ClearMark Award
Texas.gov 2011 Marketing Mississippi – Mobile MS.gov Utah – Finalist – Utah.gov
Colorado – Gambling Intercept Texas – Website/Dynamic Mississippi – Award of
Campaign, Honorable Mention
Payment System Media: Public Sector – Tennessee – Finalist, Distinction – MS.gov Alabama – Best of Industry –
Tennessee – Driver Service City of Houston – Horizon Interactive Award Tennessee’s Driver Service Home Page Best Government Website –
Center, Self-Service iPad Kiosks Traffic Ticket Payment Utah Center iPad Kiosk Utah – Winner – Utah.gov Alabama.gov
24

16. 25
W
e think NIC is the best in the
business because our leaders
are the best in the business.
CORPORATE
BOARD OF DIRECTORS Ross C. Hartley
Mr. Hartley, 65, is a co-founder of NIC and former
President of The Hartley Insurance Group. He
is also a Director of the Empire District Electric
Company. He became a Director of the original
COMMITTEE
MEMBERSHIPS INFORMATION
companies beginning in 1991, and later an NIC AUDIT COMMITTEE
Director upon the Company’s formation in 1998. Art N. Burtscher – Chair
Harry H. Herington C. Brad Henry Daniel J. Evans
Chairman of the Board and Chief Executive Officer Governor Henry, 49, is of counsel to the law firm of Karen S. Evans
Mr. Herington, 53, is the Chief Executive Officer Lester, Loving Davies in Edmond, Okla., and is Ross C. Hartley
of NIC and previously served as the Company’s a founding member of Henry-Adams Companies, C. Brad Henry
President, Chief Operating Officer, and Executive LLC. He was appointed by President Obama to the Alexander C. Kemper
Vice President of Portal Operations. He became federal Council of Governors. He previously served William M. Lyons
an NIC Director in 2006. as the Governor of Oklahoma, and was only the Pete Wilson
third governor in the state to serve two consecutive
Art N. Burtscher COMPENSATION
terms. He became an NIC Director in 2011.
Lead Independent Director COMMITTEE
Mr. Burtscher, 62, is President, Westwood Trust Alexander C. Kemper
Western Region. He is also a Director of Novation, Mr. Kemper, 47, is Chairman of The Collectors Alexander C. Kemper – Chair
American National Bank, and several privately held Fund, a private equity fund, and Chairman and Chief Art N. Burtscher
companies. He became an NIC Director in 2004 Executive Officer of Pollenware, a trade settlement Daniel J. Evans
and was named Lead Director in 2008. company. He is a Director of UMB Financial Corp., Karen S. Evans
AXA, ArtUSA, and several privately held companies. C. Brad Henry
Daniel J. Evans
He became an NIC Director in 2007. William M. Lyons
Governor Evans, 87, is Chairman of Daniel J. Evans
Associates Consulting, a public policy consulting William M. Lyons Pete Wilson
firm, and previously served as Governor and U.S. Mr. Lyons, 57, is the former President and CEO
CORPORATE
Senator for the state of Washington. He is also a of American Century Companies, Inc., a Kansas
Director of Costco Wholesale Corporation and City-based investment manager. Mr. Lyons is also a GOVERNANCE
Archimedes Technology Group. He became an Director of Morningstar, Inc. and the NASDAQ Stock NOMINATING
NIC Director in 1998. Exchange. He became an NIC Director in 2009. COMMITTEE
Karen S. Evans Pete Wilson William M. Lyons – Chair
Ms. Evans, 53, is an independent consultant and Governor Wilson, 79, is a Principal at Bingham Art N. Burtscher
the National Director of U.S. Cyber Challenge, a Consulting Group, a business consulting firm. He Daniel J. Evans
nationwide talent search and skills development previously served as Governor and U.S. Senator Karen S. Evans
program focused on the cyber workforce. She for the state of California and Mayor of San Diego. Ross C. Hartley
previously served as the de facto federal Chief He is also a Director of The Irvine Corporation, U.S. C. Brad Henry
Information Officer under President George W. TelePacific Corporation, and U.S. HealthWorks. Alexander C. Kemper
Bush. She became an NIC Director in 2011. He became an NIC Director in 1999. Pete Wilson
26
4

17. 27
corporate information
contacting the BOARD OF DIRECTORS STOCKHOLDER INFORMATION
Communications to NIC’s Board of Directors should be sent via email to board@egov.com or in writing to:
ANNUAL MEETING Important information is included in the most recent
Form 10-K, which is attached to this annual report.
Board of Directors The Annual Meeting of NIC Inc. stockholders will be
These documents can also be viewed online at
NIC Inc. held May 7, 2013 at The Oread, 1200 Oread Avenue,
www.egov.com/Investors.
25501 West Valley Parkway Lawrence, KS 66044.
Suite 300
A formal notice, together with the proxy statement and
Olathe, KS 66061
proxy form (along with this annual report), will be CREDITS
The Board’s committee charters, the Company’s Code of Business Conduct and Ethics, and Corporate mailed in advance of the meeting to all stockholders of DESIGN
Governance Principles and Best Practices may be found on the Company’s website at www.egov.com/ record entitled to vote. Stockholders are encouraged
Trozzolo Communications Group
Investors/CorporateGov and may be obtained in print by contacting the Investor Relations Department at to attend the meeting, but those unable to do so are Kansas City, MO
invest@egov.com or (913) 498-EGOV. asked to vote in advance of the meeting by telephone, www.trozzolo.com
on the Internet, or by mail as described in the proxy form.
PRINTING
STOCK LISTING
Alpine Litho-Graphics
NIC Inc.’s common stock is traded on the NASDAQ Kansas City, MO
EXECUTIVE LEADERSHIP SENIOR MANAGEMENT INDEPENDENT REGISTERED Global Select market under the symbol “EGOV.” www.alpinelitho.com
TEAM* STEERING COMMITTEE PUBLIC ACCOUNTANTS
REGISTER AND TRANSFER AGENT
Harry H. Herington *Members of the Executive PricewaterhouseCoopers LLP
Chairman of the Board and Leadership Team are also 1100 Walnut Street Computershare TRADEMARKS REGISTERED
Chief Executive Officer members of the Senior Suite 1300 250 Royall Street SERVICE MARKS
Management Steering Canton, MA 02021 NIC Inc. is a registered service mark of NIC Inc.
Age 53 Kansas City, MO 64106
Committee. Additional (781) 575-2000 The NIC logo and “The People Behind
William F. Bradley, Jr. (816) 472-7921
members are: www.computershare.com eGovernment” are registered trademarks of
Executive Vice President, Chief www.PwC.com
Aimi M. Daughtery INVESTOR RELATIONS NIC Inc. Certain other names and logos
Administrative Officer, General protected by trademark appear in this report.
Chief Accounting Officer Copies of NIC’s Annual Report on Form 10-K,
Counsel, and Secretary OUTSIDE COUNSEL Rather than list the names and entities that
Age 42 Quarterly Reports on Form 10-Q, and other
Age 58 own these trademarks or insert a trademark
Ron E. Thornburgh Stinson Morrison Hecker LLP publications are available free of charge upon symbol with each mention of the trademark, NIC
Stephen M. Kovzan 1201 Walnut Street
Senior Vice President, request. Inquiries should be directed to: Inc. states that it is using the names only for
Chief Financial Officer Suite 2900
Business Development Angela Skinner informational purposes and to the benefit of the
Age 44 Kansas City, MO 64106 trademark owner with no intention of infringing
Age 50 Director of Corporate Communications
Robert W. Knapp (816) 842-8600 upon that trademark.
Investor Relations
Chief Operating Officer www.stinson.com 25501 West Valley Parkway ©2013 NIC Inc. NIC is an equal opportunity employer.
Age 44 Suite 300
Olathe, KS 66061
(913) 754-7054
(877) 234-EGOV
askinner@egov.com
28

18. 29
Expanding to serve
more partners in
more places.
NIC is proud to partner with 3,500 federal, state, and local government agencies.
alabama indiana montana south carolina
Alabama.gov IN.gov MT.gov SC.gov
arizona indianapolis nebraska tennessee
AZ.gov Marion County, IN Nebraska.gov TN.gov
IndyGov.biz
arkansas new jersey texas
Arkansas.gov iowa NJ.gov Texas.gov
Iowa.gov
colorado us department of
new mexico mvd
Colorado.gov kansas transportation
Mvd.newmexico.gov
Kansas.gov Psp.fmcsa.dot.gov
Delaware
oklahoma
Delaware.gov kentucky utah
OK.gov
Kentucky.gov Utah.gov
federal election
commission maine oregon vermont
FEC.gov Maine.gov Oregon.gov Vermont.gov
hawaii maryland pennsylvania virginia
Hawaii.gov Maryland.gov PA.gov Virginia.gov
idaho mississippi rhode island west virginia
Idaho.gov MS.gov RI.gov WV.gov

19. UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2012
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transaction period from to
Commission file number 000-26621
NIC INC. (Exact name of registrant as specified in its charter)
Delaware 52-2077581
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
25501 West Valley Parkway, Suite 300, Olathe, Kansas 66061
(Address of principal executive offices, including Zip Code)
Registrant’s telephone number, including area code: (877) 234-3468
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per share The NASDAQ Stock Market, LLC
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act. Yes o No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the
Act. Yes o No x
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web
site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and
post such files). Yes x No o
i

20. Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form
10-K. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and
“smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer x Accelerated filer o
Non-accelerated filer o Smaller reporting company o
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes o No x
The aggregate market value of voting stock held by non-affiliates of the registrant, as of June 30, 2012, was
approximately $753,110,699 (based on the closing price for shares of the registrant’s common stock as reported by
the NASDAQ Global Select Market on that date). Shares of common stock held by each executive officer, director
and holder of 10% or more of the outstanding common stock have been excluded in that such persons may be
deemed to be affiliates. This determination of affiliate status for purposes of this calculation is not intended as a
conclusive determination of affiliate status for other purposes.
On February 13, 2013, 64,725,996 shares of the registrant’s common stock, $0.0001 par value per share, were
outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive Proxy Statement to be issued in connection with its Annual Meeting of
Stockholders to be held in 2013 are incorporated by reference into Part III of this Form 10-K.
ii