First American Financial Corp (FAF) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Second Quarter 2023 First American Financial Corporation Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Craig Barberio, Vice President, Investor Relations. Please go ahead.

您好，歡迎參加 2023 年第二季度第一次美國金融公司收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係副總裁 Craig Barberio。請繼續。

Good morning, and welcome to First American's Earnings Conference Call for the second quarter of 2023. Joining us today on the call will be our Chief Executive Officer, Ken DeGiorgio, and Mark Seaton, Executive Vice President and Chief Financial Officer.

早上好，歡迎參加第一美國航空2023 年第二季度收益電話會議。今天加入我們電話會議的將有我們的首席執行官肯·德喬治(Ken DeGiorgio) 和執行副總裁兼首席財務官馬克·西頓(Mark Seaton)。

Some of the statements made today may contain forward-looking statements that do not relate strictly to historical or current fact. These forward-looking statements speak only as of the date they are made and the company does not undertake to update these forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

今天發表的一些聲明可能包含與歷史或當前事實並不嚴格相關的前瞻性聲明。這些前瞻性陳述僅反映截至其作出之日的情況，公司不承諾更新這些前瞻性陳述以反映前瞻性陳述作出之日後發生的情況或事件。

Risks and uncertainties exist that may cause results to differ materially from those set forth in these forward-looking statements. For more information on these risks and uncertainties, please refer to this morning's earnings release and the risk factors discussed in our Form 10-K and subsequent SEC filings.

存在風險和不確定性，可能導致結果與這些前瞻性陳述中提出的結果存在重大差異。有關這些風險和不確定性的更多信息，請參閱今天上午的收益報告以及我們的 10-K 表格和隨後向 SEC 提交的文件中討論的風險因素。

Our presentation today contains certain non-GAAP financial measures that we believe provide additional insight into the operational performance and performance of the company, operational efficiency, excuse me, and performance of the company relative to earlier periods and relative to the company's competitors.

我們今天的演示包含某些非公認會計準則財務指標，我們認為這些指標可以提供有關公司運營業績和業績、運營效率以及公司相對於早期和競爭對手的業績的更多見解。

For more details on these non-GAAP financial measures, including presentation with and reconciliation to the most directly comparable GAAP financials, please refer to this morning's earnings release which is available on our website at www.firstam.com.

有關這些非 GAAP 財務指標的更多詳細信息，包括與最直接可比的 GAAP 財務數據的列報和調節，請參閱今天上午的收益報告，該報告可在我們的網站 www.firstam.com 上獲取。

I would now like to turn the call over to Ken DeGiorgio.

我現在想把電話轉給 Ken DeGiorgio。

Thank you, Craig. We posted good results in the second quarter, given the continuing market headwinds, a seasonal uplift in our business, strong growth in net investment income and a continued focus on expense management enabled us to deliver a pretax title margin of 12.1% or 12.6% on an adjusted basis.

謝謝你，克雷格。鑑於持續的市場逆風、我們業務的季節性增長、淨投資收入的強勁增長以及對費用管理的持續關注，我們在第二季度取得了良好的業績，使我們能夠實現12.1% 或12.6% 的稅前所有權利潤率。調整後的基礎。

On a consolidated basis, we earned $1.33 per diluted share or $1.35 on an adjusted basis. Demand in our residential purchase business continues to be pressured by affordability issues due to high mortgage rates, along with low inventory that has kept home prices elevated. The purchase market, however, appears to have stabilized, albeit at trough levels.

在合併基礎上，我們稀釋後每股收益為 1.33 美元，調整後每股收益為 1.35 美元。由於高抵押貸款利率以及低庫存導致房價上漲，我們的住宅購買業務的需求繼續受到負擔能力問題的壓力。然而，購買市場似乎已經穩定，儘管處於低谷水平。

For the first 3 weeks of July, we are seeing the typical seasonal decline in purchase orders with open orders down 1% compared with June. Refinance open orders remained at trough levels in the second quarter, averaging 350 per day. As I indicated on last quarter's call, the current pool of mortgage loans outstanding would need to see rates drop well below 5% to incentivize a significant uplift in refinance activity, which is highly unlikely in the near future.

7 月的前 3 週，我們看到採購訂單出現了典型的季節性下降，未結訂單比 6 月下降了 1%。第二季度再融資未平倉訂單仍處於低谷水平，平均每天 350 筆。正如我在上個季度的電話會議上指出的那樣，當前未償還抵押貸款池的利率需要降至遠低於5%，才能刺激再融資活動大幅增加，而這在不久的將來是不太可能發生的。

The commercial market, which began to deteriorate in the back half of 2022, appears to have stabilized. While commercial revenue was down 39% year-over-year, it was up 20% on a sequential basis, in line with the typical seasonal trend.

2022 年下半年開始惡化的商業市場似乎已趨於穩定。雖然商業收入同比下降 39%，但環比增長 20%，符合典型的季節性趨勢。

Commercial open orders for the first 3 weeks of July were down 26%, consistent with what we experienced in the second quarter. There is still a high degree of uncertainty concerning the commercial market outlook. However, based on the feedback we are still getting from customers, we expect the transaction activity in the second half of the year will be better than the first, which is consistent with normal seasonal patterns.

7 月前 3 週的商業未結訂單下降了 26%，與第二季度的情況一致。商業市場前景仍存在高度不確定性。然而，根據我們仍在從客戶那裡得到的反饋，我們預計下半年的交易活動將好於上半年，這與正常的季節性模式一致。

While our key purchase commercial and refinance markets appear to have troughed, the timing of a recovery in these markets remains unclear. Despite these challenging conditions, our financial discipline and strong balance sheet allow us to continue to invest in strategic initiatives for the long-term benefit of the company as well as return capital to our shareholders.

雖然我們的主要採購商業和再融資市場似乎已經陷入低谷，但這些市場的複蘇時機仍不清楚。儘管面臨這些充滿挑戰的條件，我們的財務紀律和強大的資產負債表使我們能夠繼續投資於戰略舉措，以實現公司的長期利益，並向股東返還資本。

We continue to make progress at Endpoint, our digital title and settlement company. Our initiative to develop instant title decisioning for purchase transactions remains on track for deployment in 2 markets early next year. We've also made substantial progress at ServiceMac, our subservicing business, which delivered strong revenue growth and its first quarterly profit. And since the market began to deteriorate at the beginning of last year, we have returned $811 million to our shareholders through share repurchases and dividends.

我們的數字產權和結算公司 Endpoint 繼續取得進展。我們為購買交易開發即時產權決策的計劃仍有望在明年初在兩個市場進行部署。我們的服務業務 ServiceMac 也取得了實質性進展，實現了強勁的收入增長和第一個季度利潤。自去年初市場開始惡化以來，我們已通過股票回購和股息向股東返還了 8.11 億美元。

In closing, I am proud that First American has been selected as 1 of just 100 companies to fast companies Best Workplaces for Innovators for 2023. We are the only company in our industry to have ever received this recognition. This accomplishment is a testament to our ongoing commitment to innovation and is a tribute to our people, who in addition to delivering best-in-class customer service enable us to lead the digital transformation of our industry.

最後，我很自豪 First American 被選為 2023 年快速公司最佳創新者工作場所的 100 家公司之一。我們是行業中唯一一家獲得此認可的公司。這一成就證明了我們對創新的持續承諾，也是對我們員工的致敬，他們除了提供一流的客戶服務之外，還使我們能夠引領行業的數字化轉型。

Now I'd like to turn the call over to Mark for a more detailed discussion of our financial results.

現在我想將電話轉給馬克，以便更詳細地討論我們的財務業績。

Thank you, Ken. This quarter, we earned $1.33 per diluted share or $1.35 on an adjusted basis. Beginning this quarter, we are defining adjusted earnings for the first time to make our results more comparable to our peers. Our adjusted earnings exclude net investment gains and losses, as well as purchase related intangible amortization. These adjustments will also apply to pretax margin. A reconciliation can be found in our press release.

謝謝你，肯。本季度，我們稀釋後每股收益為 1.33 美元，調整後每股收益為 1.35 美元。從本季度開始，我們首次定義調整後收益，以使我們的業績與同行更具可比性。我們調整後的收益不包括淨投資收益和損失，以及與購買相關的無形攤銷。這些調整也將適用於稅前利潤。您可以在我們的新聞稿中找到和解。

Revenue in our Title segment was $1.5 billion, down 25% compared with the same quarter of 2022. Commercial revenue was $178 million, a 39% decline over last year. Our average revenue per order for commercial transactions declined 12% this quarter to $11,600 due to a combination of lower valuations as prices in the commercial market reset and fewer large transactions. Purchase revenue was down 29% during the quarter, driven by a 30% decrease in the number of orders closed, partially offset by a 1% increase in the average revenue per order.

我們的遊戲業務收入為 15 億美元，比 2022 年同季度下降 25%。商業收入為 1.78 億美元，比去年下降 39%。本季度，我們商業交易的每筆訂單平均收入下降了 12%，至 11,600 美元，原因是商業市場價格重置導致估值下降以及大額交易減少。本季度採購收入下降 29%，原因是已完成訂單數量減少 30%，但每筆訂單平均收入增長 1% 部分抵消了這一影響。

Refinance revenue declined 59% relative to last year due to the increase in mortgage rates. In the Agency business, revenue was $625 million, down 33% from last year. Given the reporting lag in agent revenues of approximately 1 quarter, these results reflect remittances related to Q1 economic activity. Our information and other revenues were $244 million, down 20% relative to last year. This decline was the result of lower transaction levels across several business units driven by the company's data and property information products and post close and document generation services.

由於抵押貸款利率上升，再融資收入較去年下降 59%。代理業務收入為 6.25 億美元，比去年下降 33%。鑑於代理收入的報告滯後約 1 個季度，這些結果反映了與第一季度經濟活動相關的匯款。我們的信息和其他收入為 2.44 億美元，比去年下降 20%。這一下降是由於公司的數據和財產信息產品以及交割後和文件生成服務驅動的多個業務部門的交易水平下降的結果。

Investment income within the Title Insurance and Services segment was $142 million, a 105% increase relative to the prior year. In the second quarter, we saw escrow balances increase due to normal seasonality of the business. We also continue to generate higher rates on our balances as the Federal Reserve has hiked 4x this year.

產權保險和服務部門的投資收入為 1.42 億美元，較上年增長 105%。在第二季度，由於業務的正常季節性，我們看到託管餘額增加。隨著美聯儲今年加息四倍，我們的餘額利率也將繼續提高。

We continue to manage expenses given the decline in transaction activity. Our success ratio was 50%, meaning that our personnel and other operating expenses declined $200 million, and our net operating revenue declined $399 million. The provision for policy losses and other claims was $40 million in the second quarter or 3.5% of title premiums and escrow fees, down from the 4.0% loss provision rate in the prior year. The 3.5% loss rate reflects an ultimate loss rate of 3.8% for the current year with a $3 million release for prior policy years.

鑑於交易活動下降，我們繼續管理費用。我們的成功率為 50%，這意味著我們的人員和其他運營費用減少了 2 億美元，淨運營收入減少了 3.99 億美元。第二季度保單損失和其他索賠準備金為 4000 萬美元，佔產權保費和託管費的 3.5%，低於上一年 4.0% 的損失準備金率。 3.5% 的損失率反映了當年 3.8% 的最終損失率，以及之前保單年度的 300 萬美元釋放。

As Ken highlighted, we continue to invest in businesses and innovation initiatives that we believe will positively contribute to our profitability in the long term, but at this point in their life cycle, adversely impact our financial results. We have discussed 3 initiatives: ServiceMac, Endpoint and instant decisioning for purchase transactions which together generated a pretax loss of $15 million this quarter, impacting our pretax title margin by 130 basis points, an improvement from the 150 basis point margin drag in Q1, primarily driven by profitability gains at ServiceMac, which generated a 10% pretax margin this quarter.

正如肯所強調的那樣，我們繼續投資於我們認為從長遠來看將為我們的盈利能力做出積極貢獻的業務和創新舉措，但在其生命週期的現階段，會對我們的財務業績產生不利影響。我們討論了3 項舉措：ServiceMac、Endpoint 和購買交易的即時決策，本季度這三項舉措合計產生了1500 萬美元的稅前損失，影響我們的稅前產權利潤率130 個基點，較第一季度150 個基點的利潤率拖累有所改善，主要是受到 ServiceMac 盈利能力增長的推動，該公司本季度稅前利潤率為 10%。

Pretax margin in the title segment was 12.1% or 12.6% on an adjusted basis. Total revenue in our home warranty business totaled $106 million, a 4% increase compared with last year. Pretax income in home warranty was $14 million, up 61% from the prior year. The loss ratio in home warranty was 49%, down from 52% in 2022, driven by a lower frequency of claims, partially offset by higher claim severity.

標題細分市場的稅前利潤率為 12.1%，調整後為 12.6%。我們的上門保修業務總收入為 1.06 億美元，比去年增長 4%。家庭保修稅前收入為 1,400 萬美元，比上年增長 61%。房屋保修損失率為 49%，低於 2022 年的 52%，原因是索賠頻率較低，但索賠嚴重程度較高部分抵消了這一損失。

The effective tax rate for the quarter was 23.4%, lower than our normalized rate of 24% due primarily to the mix of income between our insurance and noninsurance businesses since our insurance business generally pays state premium taxes in lieu of income taxes.

本季度的有效稅率為 23.4%，低於我們 24% 的標準化稅率，這主要是由於我們的保險和非保險業務的收入混合在一起，因為我們的保險業務通常繳納州保費稅而不是所得稅。

In the second quarter, we repurchased 273,000 shares for a total of $15 million at an average price of $56.04. Our debt-to-capital ratio as of June 30 was 29.2%. Excluding secured financings payable, our debt-to-capital ratio was 22.5%. In May, we entered into a new $900 million senior credit facility upsized from our prior $700 million facility. We currently have the entire amount available for liquidity.

第二季度，我們回購了 273,000 股股票，總金額為 1500 萬美元，平均價格為 56.04 美元。截至 6 月 30 日，我們的債務與資本比率為 29.2%。不包括應付擔保融資，我們的債務與資本比率為22.5%。 5 月，我們簽訂了一項新的 9 億美元高級信貸額度，較之前的 7 億美元額度有所擴大。目前我們擁有全部可用流動資金。

Now I would like to turn the call back over to the operator to take your questions.

現在我想將電話轉回給接線員回答您的問題。

(Operator Instructions) Our first question comes from Bose George with KBW.

（操作員說明）我們的第一個問題來自 KBW 的 Bose George。

First, I just wanted to ask about investment income. Can you give us an update on your expectations for investment income? And then can you remind me if there's something unusual in investment income in the second quarter?

首先我想問一下投資收益。您能給我們介紹一下您對投資收益的預期嗎？那麼您能否提醒我第二季度的投資收益是否有異常情況？

Bose, thanks for the question. There's nothing really unusual in the second quarter. We've given different assumptions in the past for investment income. But at this point of the year, we're halfway down through the year. We've got a lot more visibility in terms of where balances are. And so in the Title segment, we should be somewhere between $550 million, $560 million of investment income for the full year. We'll have an increase in Q3, and then we're expecting a little bit of a decrease in Q4 just because of some balances that will run off related to ServiceMac, but we're looking at somewhere between $550 million, $560 million right now, full year.

博斯，謝謝你的提問。第二季度並沒有什麼異常之處。我們過去對投資收益給出了不同的假設。但在今年的這個時候，我們已經過半了。我們對余額的位置有了更多的了解。因此，在產權領域，我們全年的投資收入應該在 5.5 億至 5.6 億美元之間。我們將在第三季度有所增長，然後我們預計第四季度會略有下降，因為一些與 ServiceMac 相關的餘額將會流失，但我們正在考慮 5.5 億美元到 5.6 億美元之間的收入，對吧現在，全年。

Okay. Great. that's helpful. And then actually, with the sale of Home Point to Cooper, when that servicing -- if that does move over to Cooper, how much escrow could that move -- could you lose as that happens? And is there any sort of negative operating leverage while you sort of refill that ServiceMac?

好的。偉大的。這很有幫助。實際上，隨著 Home Point 出售給 Cooper，當服務——如果確實轉移到 Cooper 時，會轉移多少託管——當這種情況發生時，你會損失嗎？當您重新填充 ServiceMac 時，是否會產生任何負面的運營槓桿？

Yes, thanks for the question. I mean we're anticipating that about 40% of the loans are going to offboard in September. And to get to the second part of your question on that, we're already making expense reductions associated with that. Now there's a healthy pipeline that we think will replace that. And -- but obviously, the time lines on those aren't quick, but there is a healthy pipeline.

是的，謝謝你的提問。我的意思是，我們預計大約 40% 的貸款將在 9 月份註銷。為了回答你問題的第二部分，我們已經在削減與此相關的費用。現在我們認為有一個健康的管道將取代它。而且 - 但顯然，這些的時間線並不快，但有一個健康的渠道。

The remaining 60% they could -- they'll probably be there through the end of the year and could extend into next year. It's not exactly clear when the remaining 60% are going to come off. But we're hopeful they will at least be into the next year.

剩下的 60% 可能會持續到今年年底，並可能延續到明年。目前還不清楚剩下的 60% 何時會消失。但我們希望他們至少能進入明年。

Okay. Great. And actually, can you remind me the interest income from the escrow at ServiceMac, does that come through corporate or is that in title?

好的。偉大的。實際上，您能否提醒我一下 ServiceMac 託管的利息收入，是通過公司還是在產權中？

It's in title. But most of it goes through our bank and our bank rolls up to our title segment. So it's in title .

這是標題裡的。但大部分都通過我們的銀行，我們的銀行匯總到我們的標題部分。所以它在標題中。

Okay. So your guidance the number you gave sort of incorporates all the changes at ServiceMac as well?

好的。那麼您給出的指導數字也包含了 ServiceMac 的所有變化？

It does, yet.

確實如此。

(Operator Instructions) Our next question comes from John Campbell with Stephens Inc.

（操作員說明）我們的下一個問題來自 Stephens Inc. 的 John Campbell。

Congrats on a great quarter, but I wanted to touch on the July order data again. I might have missed this, but I think you said that the first 3 weeks commercial orders down 26%. So a little bit better, obviously, than 2Q, but could you maybe rehash on purchase refi and other?

祝賀這個季度的出色表現，但我想再次談談 7 月份的訂單數據。我可能錯過了這一點，但我想你說過前 3 週商業訂單下降了 26%。顯然，比 2Q 好一點，但是您能否重述一下購買 refi 等問題？

So for the first 3 weeks, we're looking at purchase. We're looking down 14% versus prior year. refi. We're looking at about 340 orders a day. That's down 39% from last year.

因此，在前三週，我們正在考慮購買。我們預計比去年下降 14%。改裝。我們每天處理大約 340 個訂單。比去年下降了 39%。

Okay. Very helpful. Yes, go ahead, Ken.

好的。很有幫助。是的，繼續吧，肯。

No, that's it.

不，就是這樣。

Okay. And then on the Instant title decisioning for purchase, I feel like that's a side of the story that holds a lot of promise for you guys. I know it's very early stage. You guys are also tend to be very conservative in kind of how you roll that out.

好的。然後，關於即時標題購買決定，我覺得這是故事的一個方面，對你們來說有很大的希望。我知道現在還處於非常早期的階段。你們在如何推出這一點上也往往非常保守。

But maybe if you could give us some kind of early call-outs from early around the pilots. And then what you might need to see to be comfortable and start to move that into a national expansion efforts? And then also, what the initiative can do for your business over time? Is it more of a share gain kind of revenue driver? Or is it an efficiency gain and margin driver?

但也許你可以在飛行員早期向我們發出一些早期的呼叫。然後，您可能需要看到什麼才能感到舒適並開始將其納入全國擴張工作？此外，隨著時間的推移，該計劃可以為您的業務帶來什麼？它更像是一種份額增長的收入驅動因素嗎？或者它是效率提升和利潤驅動因素嗎？

Yes. I'll start on that, John. I mean, I think what we've seen from sort of our MVP effort that it is -- we're confident that it's ready for rollout. As I've mentioned in my earlier comments, in 2 counties at the beginning of next year. But you're right, it is going to take some time, but I would anticipate that we will have a national rollout probably within the next couple of years, and we'll continue to roll out markets as our development efforts progress.

是的。我就從這個開始吧，約翰。我的意思是，我認為我們從 MVP 努力中看到的是——我們有信心它已經準備好推出。正如我在之前的評論中提到的，明年年初將在 2 個縣進行。但你是對的，這需要一些時間，但我預計我們可能會在未來幾年內在全國范圍內推出，並且隨著我們的開發工作取得進展，我們將繼續推出市場。

And I think there's a couple of aspects of the products that will drive results for it. There will be efficiency gains. And again, the precise amount of that remains to be seen and we'll certainly see some efficiency gains in the business. But I think a big part of it is just the improvement in the customer experience, which we think ultimately will drive market share gains.

我認為產品的幾個方面將推動其結果。效率將會提高。再說一遍，確切的數量還有待觀察，我們肯定會看到業務效率有所提高。但我認為其中很大一部分只是客戶體驗的改善，我們認為這最終將推動市場份額的增長。

Customers want to know early if there are title issues that are going to need to be resolved, and we're going to be able to indicate to them initially even before an order is placed, whether or not there's going to be a title issue or whether or not we can issue a commitment.

客戶希望儘早知道是否存在需要解決的產權問題，我們甚至可以在下訂單之前就向他們表明是否存在產權問題或我們是否可以做出承諾。

(Operator Instructions) Next question comes from Soham Bhonsle with BTIG.

（操作員說明）下一個問題來自 BTIG 的 Soham Bhonsle。

Mark, maybe I want to just take a step back and think through title margin sensitivity here more long term. So obviously, you have the investments that should moderate from here, and that should help margins. But as we think about volumes sort of stabilizing and maybe even improving next year, how are you sort of thinking about the lift that you could see right, from that improvement?

馬克，也許我想退後一步，從更長遠的角度思考標題邊距敏感性。顯然，你的投資應該從現在開始適度，這應該有助於提高利潤率。但是，當我們考慮明年的銷量會趨於穩定，甚至可能有所改善時，您如何看待這種改善所帶來的提升？

Because clearly, you're able to write orders more efficiently today than in years past. And so that makes it sort of hard to look at the past as a precedent here. So if you could just offer any sort of framework on how you're thinking about margins as volumes sort of do end up sort of improving here?

因為很明顯，您今天能夠比過去更有效地編寫訂單。因此，這使得我們很難將過去視為這裡的先例。因此，如果您可以提供任何類型的框架來說明您如何考慮利潤率，因為銷量最終會有所改善？

Yes. Thanks for the question, Soham. Well, first of all, I'd say that for this year, -- last quarter, we talked about double-digit margins entitled this year, and we stand by that. I mean we feel good about hitting that in a pretty tough economic environment. There's no question about that. When we look at 2024, we expect margins to improve on '24.

是的。謝謝你的提問，索漢姆。好吧，首先，我要說的是，今年，上個季度，我們談到了今年的兩位數利潤率，我們堅持這一點。我的意思是，我們對在相當艱難的經濟環境下實現這一目標感到高興。毫無疑問。展望 2024 年，我們預計利潤率將比 2024 年有所改善。

Even if volumes are flat, even if volumes are flat because we've got a few tailwinds. You pointed out the strategic investments, they're going to be less of a drag next year. We also have efficiencies that we're bringing out of the business now that will help us next year. And then we'll also have -- depending on what the Fed does, at least some tailwind with investment income next year.

即使成交量持平，即使成交量持平，因為我們有一些順風車。您指出了戰略投資，明年它們的拖累將減少。我們現在還提高了業務效率，這將對我們明年有所幫助。然後，根據美聯儲的行動，我們還將在明年至少帶來一些投資收入的順風車。

And so even in a flat, let's call it, origination market, we think we can improve margins. The NDA has some pretty aggressive growth for mortgage originations. If that happens, we'll look really good. But even if we get half of that or 1/4 of that growth, we should be even better. So we feel like we'll definitely have margin expansion next year. And then the question is, well, it just depend on how good the market is.

因此，即使在平坦的（我們稱之為原始市場）中，我們也認為我們可以提高利潤率。 NDA 對抵押貸款的發放有相當積極的增長。如果發生這種情況，我們看起來會非常好。但即使我們獲得了一半或 1/4 的增長，我們也應該做得更好。所以我們覺得明年我們的利潤率肯定會擴大。然後問題是，這僅僅取決於市場有多好。

Got it. Okay. And then in the second half here, just on the success ratio, so obviously, the seasonality-wise, volume should subside here, but is there any reason outside that, that your success ratios cannot sort of stay flattish. Any other items that we should be thinking about in the back half here?

知道了。好的。然後在下半年，就成功率而言，很明顯，從季節性角度來看，交易量應該在這裡消退，但除此之外還有什麼原因，你的成功率不能保持平穩。我們在後半部分還應該考慮其他事項嗎？

No. I mean there's no extraordinary items to think about. For the first half of the year, we've been at 50%, again, in our title segment. And for the back half of the year, we think we'll be at around 50%. I mean it could be plus or minus a little bit, but 50% is what I would think for the second half and therefore, the full year as well.

不，我的意思是沒有什麼特別的事情需要考慮。今年上半年，我們的標題部分再次達到了 50%。今年下半年，我們認為這一比例將保持在 50% 左右。我的意思是，它可能會增加或減少一點，但 50% 是我對下半年乃至全年的預期。

Got it. And if I could just squeeze 1 in. Ken, I just wanted to touch on commercial here for a second. So it looks like, at least based on the ARPU, there was some mix shift a little bit to the higher -- the larger deals. As you look at your pipeline for the back half, I mean, what's sort of the mix looking like between small and large deals?

知道了。如果我能擠進去的話。肯，我只是想談談這裡的廣告。因此，至少從 ARPU 來看，似乎存在一些混合變化，向更高的方向——更大的交易。當您查看下半年的管道時，我的意思是，小型交易和大型交易之間的組合是什麼樣的？

Well, I think we're anticipating, particularly as you go into the fourth quarter, we're probably anticipating to have some more large deals.

嗯，我認為我們預計，特別是當你進入第四季度時，我們可能預計會有一些更大的交易。

But I think on the ARPO going down, I think it's less about mix and more about price discovery, which we take as a good sign. Obviously, we don't like a CR RPO go down, but we like to see that the price discovery is going on because there's going to -- that implies to us that once that's done, are completely done, there'll be a lot more transaction activity.

但我認為，對於 ARPO 的下降，我認為這與組合無關，更多與價格發現有關，我們認為這是一個好兆頭。顯然，我們不喜歡 CR RPO 下降，但我們希望看到價格發現正在進行，因為這對我們來說意味著，一旦完成，完全完成，將會有很多更多的交易活動。

Since there are no further questions, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

由於沒有其他問題，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。