Fair Isaac Corp (FICO) 2023 Q2 法說會逐字稿

Greetings and welcome to the Fair Isaac Corporation Quarterly Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded, Thursday, April 27, 2023.

歡迎來到 Fair Isaac Corporation 季度收益電話會議。 （操作員說明）提醒一下，本次會議將於 2023 年 4 月 27 日星期四進行錄製。

I'd now like to turn the conference over to Steve Weber. Please go ahead.

我現在想將會議轉交給 Steve Weber。請繼續。

Good afternoon and thank you for joining FICO's second quarter earnings call. I'm Steve Weber, Interim CFO, and I'm joined today by our CEO, Will Lansing.

下午好，感謝您參加 FICO 第二季度財報電話會議。我是臨時首席財務官史蒂夫韋伯，今天我們的首席執行官威爾蘭辛也加入了我的行列。

Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison to the prior quarter in order to facilitate understanding of the run rate of our business.

今天，我們發布了一份新聞稿，描述了與上一年相比的財務結果。在這次電話會議上，管理層還將討論與上一季度相比的結果，以便於了解我們業務的運行率。

Certain statements made in this presentation may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many uncertainties that could cause actual results to differ materially. Information concerning those uncertainties is contained in the company's filings with the SEC, in particular, in the risk factors and forward-looking statements portions of such filings. Copies are available from the SEC on the FICO website or from our Investor Relations team.

根據 1995 年《私人證券訴訟改革法案》，本演示文稿中的某些陳述可能具有前瞻性。這些陳述涉及許多不確定因素，可能導致實際結果大相徑庭。有關這些不確定性的信息包含在公司向美國證券交易委員會提交的文件中，特別是在此類文件的風險因素和前瞻性陳述部分。副本可從 SEC 的 FICO 網站或我們的投資者關係團隊獲得。

This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and Regulation G schedule issued today for a reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measures. The earnings release and Regulation G schedule are available on the Investor Relations page of the company's website at fico.com or on the SEC's website at sec.gov.

此電話會議還將包括有關某些非 GAAP 財務措施的聲明。請參閱公司今天發布的收益發布和 G 條例附表，了解每項非 GAAP 財務指標與最具可比性的 GAAP 指標的對賬情況。收益發布和 G 條例時間表可在公司網站 fico.com 的投資者關係頁面或美國證券交易委員會網站 sec.gov 上查閱。

A replay of this webcast will be available through April 27, 2024.

此網絡廣播的重播將持續到 2024 年 4 月 27 日。

And now I'll turn the call over to Will Lansing.

現在我將把電話轉給威爾·蘭辛。

Thanks, Steve, and thank you, everyone, for joining us for our second quarter earnings call. On the Investor Relations section of our website, we posted some slides that offer financial highlights of our second quarter.

謝謝史蒂夫，也謝謝大家參加我們第二季度的財報電話會議。在我們網站的投資者關係部分，我們發布了一些幻燈片，提供了我們第二季度的財務亮點。

I am pleased to report that we continue to deliver strong results with record revenue and growth throughout our business. Today, I'll talk about this quarter's results and our expectations for the rest of the year.

我很高興地報告，我們繼續以創紀錄的收入和整個業務的增長取得強勁業績。今天，我將談談本季度的業績以及我們對今年剩餘時間的預期。

As you can see on Page 2 of the presentation, we reported revenues of $380 million, an increase of 6% over the same period last year. We delivered $102 million of GAAP net income and GAAP earnings of $4 per share. On a non-GAAP basis, net income was $121 million with earnings per share of $4.78.

正如您在演示文稿的第 2 頁所見，我們報告的收入為 3.8 億美元，比去年同期增長 6%。我們交付了 1.02 億美元的 GAAP 淨收入和每股 4 美元的 GAAP 收益。按非美國通用會計準則計算，淨收入為 1.21 億美元，每股收益為 4.78 美元。

On the Scores side of the business, we continue to perform well. Scores delivered a record quarter with $198 million of revenue, up 8% in the quarter versus the prior year, as you can see on Page 6.

在業務的分數方面，我們繼續表現良好。如第 6 頁所示，Scores 創造了創紀錄的季度收入 1.98 億美元，與去年同期相比增長 8%。

On the B2B side, revenues were up 16%, driven primarily by increased originations revenues. Mortgage originations revenues were up 90% versus last year. Auto originations revenues were up 13%. Credit card, personal loan and other originations revenues were up 12%. Our B2C revenues continue to face difficult comps, and while up slightly versus last quarter, were down 8% versus the same period last year.

在 B2B 方面，收入增長了 16%，這主要是受原始收入增加的推動。抵押貸款發放收入比去年增長了 90%。汽車原創收入增長了 13%。信用卡、個人貸款和其他發起收入增長了 12%。我們的 B2C 收入繼續面臨困難，雖然與上一季度相比略有上升，但與去年同期相比下降了 8%。

In our Software business, our FICO platform provides the power of analytics and AI to enable smarter business decisions at scale. We're focused on helping clients maximize the customer experience by predicting, analyzing and optimizing customer interactions in real time to make better customer decisions across the enterprise. These better decisions build trust and loyalty by delivering hyper-personalized experiences through holistic customer management. And the strong results we're delivering demonstrated the industry is hungry for these solutions.

在我們的軟件業務中，我們的 FICO 平台提供分析和人工智能的力量，以實現更明智的大規模業務決策。我們專注於通過實時預測、分析和優化客戶交互來幫助客戶最大化客戶體驗，從而在整個企業內做出更好的客戶決策。這些更好的決策通過整體客戶管理提供超個性化體驗，從而建立信任和忠誠度。我們提供的強勁結果表明，該行業渴望這些解決方案。

As you can see on Page 7, we delivered overall ARR growth of 17% and platform ARR growth of 60%. This represents our 14th straight quarter of platform ARR growth in excess of 40%.

正如您在第 7 頁所見，我們實現了 17% 的總體 ARR 增長和 60% 的平台 ARR 增長。這是我們連續第 14 個季度平台 ARR 增長超過 40%。

Again, our customers continue to increase volumes and find new use cases, as you can see from our net retention rates shown on Page 8. Overall, net retention rate was 114%. Legacy on platform NRR was 105% as volumes grew and many of our customers. Platform net retention rate was 146% due to expanded use cases driven by the success of our land and expand strategy. And we continue to see strong demand for our Software.

同樣，我們的客戶繼續增加數量並尋找新的用例，正如您從第 8 頁顯示的我們的淨保留率中看到的那樣。總體而言，淨保留率為 114%。隨著數量和我們的許多客戶的增長，平台 NRR 上的舊版為 105%。平台淨保留率為 146%，這是由於我們的土地和擴張戰略的成功推動了用例的擴大。我們繼續看到對我們軟件的強勁需求。

As you can see on Page 9, our ACV bookings were up 16% over the same period last year. We continue to see a strong pipeline of opportunities as we help our customers to look at strategic mission-critical decisioning as they pursue their digital transformation.

正如您在第 9 頁所見，我們的 ACV 預訂量比去年同期增長了 16%。我們繼續看到大量的機會，因為我們幫助客戶在追求數字化轉型時審視戰略任務關鍵型決策。

Finally, I'd like to talk a little bit about our FICO World customer event next month. FICO World attendees will be able to discover how to design, build and deliver a hyper-personalized customer experience across every touch point and within every interaction. Attendees will have access to schedule meetings with FICO's leading thought leaders and experts to discuss best practices and innovative solution designs to solve business challenges. General session presenters at FICO World include leading financial services providers from North America, Latin America, Europe and Asia Pacific. The conference will reveal new products, FICO Score alternative data innovations, software capabilities on the FICO platform, as well as the company's flagship solutions for AI-powered decisions. We will also announce a new partnership and other new FICO solutions. We'll talk more next quarter about the event and give more details about how leading financial services providers are using the FICO platform to design innovative solutions to solve business challenges.

最後，我想談談我們下個月的 FICO World 客戶活動。 FICO World 的與會者將能夠發現如何在每個接觸點和每次互動中設計、構建和交付超個性化的客戶體驗。與會者將有機會與 FICO 的領先思想領袖和專家安排會議，討論最佳實踐和創新解決方案設計，以解決業務挑戰。 FICO World 的一般會議主持人包括來自北美、拉丁美洲、歐洲和亞太地區的領先金融服務提供商。會議將展示新產品、FICO Score 替代數據創新、FICO 平台上的軟件功能，以及公司用於人工智能決策的旗艦解決方案。我們還將宣布新的合作夥伴關係和其他新的 FICO 解決方案。我們將在下個季度更多地討論該活動，並提供更多有關領先金融服務提供商如何使用 FICO 平台設計創新解決方案以解決業務挑戰的詳細信息。

I'll have some final comments, including a revision of our guidance in a few minutes. But first, let me turn the call over to Steve for further financial details.

我將在幾分鐘內發表一些最終評論，包括修訂我們的指南。但首先，讓我將電話轉給史蒂夫，了解更多財務細節。

Thank you. As Will said, we delivered another very good quarter in both our Scores and Software segments. Total revenue for the second quarter were around $380 million, an increase of 6% over the prior year or 7% when adjusted for divestitures. In our Scores segment, revenues were $198 million, up 8% from the same period last year. B2B Scores revenues were up 15% over the prior year driven by increased originations revenues. We drove revenue increases in mortgage, auto and credit card, personal loan and other originations.

謝謝。正如 Will 所說，我們在樂譜和軟件領域又交付了一個非常好的季度。第二季度的總收入約為 3.8 億美元，較上年同期增長 6%，經資產剝離調整後增長 7%。在我們的分數部分，收入為 1.98 億美元，比去年同期增長 8%。在發起收入增加的推動下，B2B 分數收入比上一年增長了 15%。我們推動了抵押貸款、汽車和信用卡、個人貸款和其他來源的收入增長。

This quarter, mortgage originations revenues were up 90% from the same quarter last year. Our originations revenues were up 13%. And credit card and personal loan and other originations revenues were up 12% over last year.

本季度，抵押貸款發放收入比去年同期增長了 90%。我們的原創收入增長了 13%。信用卡和個人貸款及其他發起收入比去年增長了 12%。

B2C Scores revenues were down 8% from the same period last year, as Will explained, due to difficult comps. As a reminder, that was an area that experienced outsized growth during the refinancing boom, peaked in our third quarter of fiscal '22, and was up about 1% this quarter versus the first quarter of fiscal '23.

正如 Will 解釋的那樣，由於比較困難，B2C 分數收入比去年同期下降了 8%。提醒一下，這是一個在再融資熱潮期間經歷了超額增長的領域，在我們 22 財年第三季度達到頂峰，本季度比 23 財年第一季度增長了約 1%。

Software segment revenues in the second quarter were $182 million, up 5% from the same period last year, where we had -- and as a reminder, last year, we had a significant upfront license revenue quarter. Software revenues recognized over time were $136 million or 74% of total Software revenues. License revenues recognized upfront or at a point in time were $19 million this quarter and represented 11% of Software revenues. Our professional services revenues were $27 million, representing 15% of total Software revenues.

第二季度軟件部門的收入為 1.82 億美元，比去年同期增長 5%——提醒一下，去年我們有一個重要的前期許可收入季度。隨著時間的推移確認的軟件收入為 1.36 億美元，佔軟件總收入的 74%。本季度預先或在某個時間點確認的許可收入為 1900 萬美元，佔軟件收入的 11%。我們的專業服務收入為 2700 萬美元，佔軟件總收入的 15%。

In the second quarter, 84% of total company revenues were derived from our Americas region. Our EMEA region generated 11%, and the remaining 5% were from Asia Pacific.

第二季度，公司總收入的 84% 來自美洲地區。我們的 EMEA 地區產生了 11%，其餘 5% 來自亞太地區。

Our Software ARR in the second fiscal quarter of 2023 was $613 million, a 17% increase over the prior year quarter. Our platform ARR was $152 million, up 60% from last year and represented 25% of our total second quarter ARR compared with 18% last year. Our nonplatform ARR also grew nicely and was $461 million in the first quarter, up 7%. As a reminder, all of our ARR numbers have been adjusted for divestitures.

我們在 2023 年第二財季的軟件 ARR 為 6.13 億美元，比去年同期增長 17%。我們的平台 ARR 為 1.52 億美元，比去年增長 60%，占我們第二季度 ARR 總額的 25%，而去年為 18%。我們的非平台 ARR 也增長良好，第一季度為 4.61 億美元，增長 7%。提醒一下，我們所有的 ARR 數字都已針對資產剝離進行了調整。

Our dollar-based net retention rate in the quarter was 114% overall versus 109% last year. Our platform customers continue to show very strong net expansion from follow-on sales of new use cases and from increased usage. The net retention rate for platform was 146% in the second quarter. Our nonplatform customers' software usage increased this quarter due to increased volumes and PPI increases. The nonplatform NRR was 105%.

本季度我們以美元為基礎的淨保留率為 114%，而去年為 109%。我們的平台客戶繼續表現出非常強勁的淨增長，來自新用例的後續銷售和使用量的增加。第二季度平台淨留存率為146%。由於數量增加和 PPI 增加，本季度我們非平台客戶的軟件使用量有所增加。非平台 NRR 為 105%。

We had another good quarter of Software sales with annual contract value bookings of $23.3 million versus $20.2 million in the prior year, an increase of 16%. As a reminder, ACV bookings include only the annual value of Software sales, excluding professional services.

我們的軟件銷售額又是一個不錯的季度，年度合同價值預訂量為 2330 萬美元，而去年同期為 2020 萬美元，增長了 16%。提醒一下，ACV 預訂僅包括軟件銷售的年價值，不包括專業服務。

Turning on to expenses for the quarter. Our total operating expenses were $221 million this quarter versus $205 million in the prior year and $205 million in Q1. Much of the increase was due to salary increases, which took effect in December, and (inaudible) increases. We also had approximately $10 million of nonrecurring expense from a number of small items that were incurred this quarter. We will have some onetime expense from our FICO World event in the third quarter, but we do expect a run rate in the back half of the year to increase slightly from the current levels.

轉向本季度的支出。本季度我們的總運營費用為 2.21 億美元，而去年同期為 2.05 億美元，第一季度為 2.05 億美元。大部分增長是由於 12 月生效的工資增長和（聽不清）增長。我們還有大約 1000 萬美元的非經常性費用來自本季度發生的一些小項目。我們將在第三季度的 FICO World 活動中產生一些一次性費用，但我們確實預計今年下半年的運行率會比目前的水平略有上升。

Our non-GAAP operating margin, as shown on our Reg G schedule, was 49% for the quarter, the same as our first quarter of FY '22. GAAP net income this quarter was $102 million, down 3% from the prior year quarter where, again, we had a large upfront license deal. GAAP EPS of $4 was up 1% from prior year. Our non-GAAP net income was $121 million for the quarter, down 2% versus the fourth quarter last year. And non-GAAP EPS was $4.78, up 2% from the prior year.

如我們的 Reg G 時間表所示，我們本季度的非 GAAP 營業利潤率為 49%，與 22 財年第一季度相同。本季度的 GAAP 淨收入為 1.02 億美元，比去年同期下降 3%，我們再次獲得了大量的前期許可交易。 4 美元的 GAAP 每股收益比上年增長 1%。我們本季度的非美國通用會計準則淨收入為 1.21 億美元，比去年第四季度下降 2%。非 GAAP 每股收益為 4.78 美元，比上年增長 2%。

The effective tax rate for the quarter was 26%. We expect our full year 2023 recurring tax rate to be approximately 25% to 26%. That's expected recurring tax rate before any excess tax benefit or other discrete items. The resulting net effective tax rate is estimated to be about 24% to 25%.

本季度的有效稅率為 26%。我們預計 2023 年全年的經常性稅率約為 25% 至 26%。這是在任何超額稅收優惠或其他離散項目之前的預期經常性稅率。由此產生的淨有效稅率估計約為 24% 至 25%。

Free cash flow for the quarter was $88 million. For the trailing 12 months, free cash flow was $439 million. At the end of the quarter, we had $167 million in cash and marketable investments.

本季度的自由現金流為 8800 萬美元。過去 12 個月，自由現金流為 4.39 億美元。截至本季度末，我們擁有 1.67 億美元的現金和有價投資。

Our total debt at quarter end was $1.92 billion with a weighted average interest rate of 5.1%. Currently, about 67% of our total debt is fixed rate. Our floating rate debt is prepayable at any time, giving us the flexibility to use free cash flow to reduce outstanding floating debt balances in future periods.

我們在季度末的總債務為 19.2 億美元，加權平均利率為 5.1%。目前，我們總債務中約有 67% 是固定利率的。我們的浮動利率債務可隨時提前償還，使我們能夠靈活地使用自由現金流來減少未來期間的未償浮動債務餘額。

Turning to return of capital. We bought back 170,000 shares in the second quarter at an average price of $684 per share. At the end of the quarter, we had $335 million remaining on the current Board authorization, and we continue to view share repurchases at an attractive use of cash.

轉向資本回報。我們在第二季度以每股 684 美元的平均價格回購了 170,000 股。到本季度末，我們在當前的董事會授權中剩餘 3.35 億美元，我們繼續認為以有吸引力的現金回購股票。

And with that, I'll turn it back to Will for his thoughts on the rest of fiscal '23 and our revised full year guidance.

有了這個，我會把它轉回給威爾，聽取他對 23 財年剩餘時間和我們修訂後的全年指導的看法。

Thank you, Steve. As I said in my opening remarks, we continue to deliver strong results, and I have confidence in our team as we move forward. Our Scores business continues to deliver strong growth even in a volatile macro environment. As I've said in the past, our diversification through different credit verticals means we're less dependent on specific types of lending, which is very important in a rising rate environment.

謝謝你，史蒂夫。正如我在開場白中所說，我們將繼續取得出色的成績，並且在我們前進的過程中我對我們的團隊充滿信心。即使在動蕩的宏觀環境中，我們的分數業務也繼續實現強勁增長。正如我過去所說，我們通過不同的信貸垂直領域實現多元化意味著我們減少了對特定類型貸款的依賴，這在利率上升的環境中非常重要。

On the Software side, we continue to prove that market demand for FICO platform is strong and growing. We're delivering valuable technology to customers looking to use the latest analytic and AI technology to optimize their consumer interactions and revolutionize their businesses through digital transformation and, importantly, to do it at scale and with low latency. As always, we're focused on execution and remain committed to delivering value to our shareholders and visibility into our progress.

在軟件方面，我們繼續證明市場對 FICO 平台的需求強勁且不斷增長。我們正在為希望使用最新的分析和 AI 技術來優化他們的消費者互動並通過數字化轉型徹底改變他們的業務的客戶提供有價值的技術，重要的是，以低延遲大規模地進行。一如既往，我們專注於執行，並繼續致力於為我們的股東創造價值並讓我們了解我們的進展。

Finally, today, we're raising our full year guidance as we enter the back half of our fiscal year. There's still a great deal of uncertainty in the markets we serve, but we have line of sight to much of our revenue and are confident that we can raise our guidance accordingly.

最後，今天，隨著我們進入本財年的後半部分，我們將提高我們的全年指導。我們所服務的市場仍然存在很大的不確定性，但我們對大部分收入都有預期，並且有信心我們可以相應地提高我們的指導。

We are raising our full year revenue guidance to $1.48 billion. We're also increasing our GAAP and non-GAAP net income guidance. GAAP net income is now expected to be $406 million. GAAP earnings per share is now expected to be $16.15. Non-GAAP net income is now expected to be $489 million. Non-GAAP EPS is $19.45.

我們將全年收入指引提高至 14.8 億美元。我們還增加了我們的 GAAP 和非 GAAP 淨收入指導。 GAAP 淨收入現在預計為 4.06 億美元。現在預計 GAAP 每股收益為 16.15 美元。非 GAAP 淨收入現在預計為 4.89 億美元。非 GAAP 每股收益為 19.45 美元。

And with that, let's turn the call back to Steve for Q&A.

有了這個，讓我們把電話轉回給史蒂夫進行問答。

Thanks, Will. This concludes our prepared remarks, and we're ready now to take any questions you may have. Operator, please open the line.

謝謝，威爾。我們準備好的發言到此結束，我們現在準備好回答您可能提出的任何問題。接線員，請打開線路。

(Operator Instructions) And your first question comes from the line of Faiza Alwy with Deutsche Bank.

（操作員說明）您的第一個問題來自 Faiza Alwy 與德意志銀行的聯繫。

Wanted to talk about the updated revenue guidance of $1.48 billion. Can you walk us through sort of what's changed? Are there areas of the business where you're feeling more positive about versus are there areas where you've maybe changed your view around things?

想談談 14.8 億美元的最新收入指引。你能告訴我們發生了什麼變化嗎？在哪些業務領域您感覺更積極，哪些領域您可能改變了對事物的看法？

Well, I think that it's not so much that things have changed, as with the benefit of half a year behind us, we have more confidence in what we expected. And so we're able -- as you know, we're typically conservative in our guidance. And so we're really just stating officially that we're comfortable with the direction that things are headed. There's not really any surprises there, and there's not any dramatic changes.

好吧，我認為事情並沒有發生太大變化，因為我們落後了半年，我們對我們的預期更有信心。所以我們能夠——如你所知，我們的指導通常是保守的。所以我們真的只是正式聲明我們對事情的發展方向感到滿意。那裡真的沒有任何驚喜，也沒有任何戲劇性的變化。

Okay. Understood. Maybe just to follow up on expenses. Steve, I know you mentioned something about $10 million of expenses that were more onetime in nature this quarter. Just walk us through sort of what your expectations are for the back half of the year again on expenses.

好的。明白了。也許只是為了跟進費用。史蒂夫，我知道你提到了本季度大約 1000 萬美元的支出，這些支出本質上是一次性的。讓我們再次了解您對下半年支出的期望。

Yes. So we had a number of things that -- a lot of that may take place throughout the year. A lot of it has kind of happened this quarter. We included a little bit more for incentives, which we typically probably don't do till the third quarter. So we did that now. We had the success of our sales events. We had a few other kind of true-up things that typically happen throughout the year, but we got more in this quarter.

是的。所以我們有很多事情 - 其中很多可能會在全年發生。本季度發生了很多事情。我們包括了更多的激勵措施，我們通常可能要到第三季度才會這樣做。所以我們現在就這樣做了。我們的銷售活動取得了成功。我們還有其他一些通常全年都會發生的調整，但本季度我們得到了更多。

So the rest of the year, I mean, we have FICO World coming in our third quarter. So there's an expense associated with that. But we expect that, if anything, the expenses in the back half of the year will probably be similar to our second quarter or potentially even drift down in the fourth quarter, because there aren't any onetime events there.

所以今年剩下的時間，我的意思是，我們將在第三季度推出 FICO World。因此，這會產生相關費用。但我們預計，如果有的話，今年下半年的支出可能會與我們的第二季度相似，甚至可能在第四季度下降，因為那裡沒有任何一次性事件。

A lot of that stems on the revenue we did, too. So it looks like there's a step function here, but it's not as much as it probably looks like on the surface because it's an aggregation of a lot of onetime things in 1 quarter.

其中很多也源於我們所做的收入。所以看起來這裡有一個階梯函數，但它並沒有表面上看起來那麼多，因為它是 1 個季度中很多一次性事情的聚合。

Your next question comes from the line of Manav Patnaik with Barclays.

你的下一個問題來自巴克萊銀行的 Manav Patnaik。

Will, just a broad macro comment, especially since you're raising your guidance. Just, a lot of your peers don't seem to be too worried about the incremental pressure from the bank failures and so forth, but I just wanted to see if you had any unique insight from what you're seeing and how you assess the risks there.

威爾，只是一個廣泛的宏觀評論，特別是因為你正在提高你的指導。只是，您的許多同行似乎並不太擔心銀行倒閉等帶來的增量壓力，但我只是想看看您是否對所看到的情況有任何獨特的見解以及您如何評估那裡有風險。

I wish that I had unique insight to share with you. As you know, our revenues tend to lag the bureaus. They tend to lag -- and so we're not a leading indicator. What we do see is sequentially from last quarter to this quarter, we've stabilized, and we seem to be moving upward a little bit. So that's a positive sign. But I wouldn't say that I have -- that we, FICO, have any kind of unique insight into the future. We certainly haven't felt any fallout right now. We're not sensing any fallout.

我希望我有獨特的見解與您分享。如您所知，我們的收入往往落後於各局。它們往往滯後——因此我們不是領先指標。我們確實看到的是從上一季度到本季度，我們已經穩定下來，而且似乎正在向上移動一點點。所以這是一個積極的跡象。但我不會說我有——我們 FICO 對未來有任何獨特的見解。我們現在當然沒有感受到任何影響。我們沒有感覺到任何後果。

Got it. Okay. That's helpful. And then just on the originations revenues, I think we all have a good sense from the bureaus on the mortgage volumes. But I was just hoping you could give us some color on what auto, card and personal loan did from a volume perspective this quarter?

知道了。好的。這很有幫助。然後就原始收入而言，我認為我們都從各局對抵押貸款量有了很好的了解。但我只是希望您能從本季度的數量角度為我們介紹一下汽車、信用卡和個人貸款的情況？

Yes. They were both up. Auto was up a little, not a lot, but it was up year-over-year, and card was also up. We don't give out all the details of it, but they were both up at least modestly.

是的。他們都起來了。汽車略有上漲，幅度不大，但同比上漲，信用卡也上漲。我們沒有透露它的所有細節，但它們至少都溫和上漲。

Your next question comes from the line of Kyle Peterson with Needham.

你的下一個問題來自 Kyle Peterson 與 Needham 的對話。

Just wanted to touch on the Software side of the business. The ARR, particularly on the platform side, looks really strong this quarter and in acceleration at least in terms of the year-on-year growth rate compared to last quarter. I just want to see if you guys could dive into what drove that acceleration, especially kind of in an environment where I think there's a lot of speculation, the bank IT budgets could tighten just given all the ongoing volatility in the market.

只想談談業務的軟件方面。 ARR，特別是在平台方面，本季度看起來非常強勁，並且至少在與上一季度相比的同比增長率方面加速。我只是想看看你們是否可以深入研究是什麼推動了這種加速，特別是在我認為有很多猜測的環境中，鑑於市場持續波動，銀行 IT 預算可能會收緊。

Yes. It's a good question, Kyle. And certainly, the backdrop for IT spending and software is a little softer, but not for us. So the good news is that our offerings, particularly our platform offering, but our software offerings are so critical and so much a part of kind of the strategic future for our big customers that they're not getting the same kind of cancellation and squeeze that some other software products are. In fact, we've seen our sales cycle shortening a little bit. We see continued expansion of existing sales of platform. And we're actually running into less competition out there than one might expect. Most of the competition comes from homegrown. There's not really competitors out there who have offerings that are on a par with ours.

是的。這是個好問題，凱爾。當然，IT 支出和軟件的背景要溫和一些，但對我們而言並非如此。因此，好消息是我們的產品，尤其是我們的平台產品，但我們的軟件產品非常重要，並且是我們大客戶戰略未來的一部分，以至於他們沒有得到同樣的取消和擠壓其他一些軟件產品。事實上，我們已經看到我們的銷售週期有所縮短。我們看到平台的現有銷售繼續擴大。實際上，我們遇到的競爭比人們預期的要少。大多數競爭來自本土。那裡並沒有真正的競爭對手提供與我們同等的產品。

Our platform offering is so much more powerful and fully featured and what the customer needs that it tends to be a less competitive kind of situation and much more of a strategic buy. And so that's really what we're seeing. And so no, we have not slowed down in spite of the software spending environment.

我們的平台產品功能強大得多，功能齊全，滿足客戶的需求，因此它往往是一種競爭性較低的情況，更像是一種戰略購買。這就是我們所看到的。所以不，儘管軟件支出環境如此，我們並沒有放慢腳步。

Got it. That's helpful. And then maybe just a follow-up on the software side of the business, particularly the talent side of things. I know historically, you guys have kind of been a bit supply constrained per se, kind of having a hard time selling seats in some key roles. Has that gotten any easier given some of the labor market changes, call it, in the last 6 to 8 months, particularly in white-collar tech per se? I just wanted to see if it's got a little easier and maybe a part of that contributing to higher expenses.

知道了。這很有幫助。然後可能只是業務軟件方面的跟進，尤其是人才方面。我知道，從歷史上看，你們本身有點供應受限，在某些關鍵角色中很難出售席位。考慮到過去 6 到 8 個月勞動力市場的一些變化，特別是白領技術本身，這是否變得更容易了？我只是想看看它是否變得更容易一些，也許是導致更高費用的一部分。

I'd say that we have never had any trouble attracting talent to FICO, not years ago, not last year, not this year, not even when times are tight -- when employment is very tight. Yes, there are some salary and cost pressure, and I'd say that was more a year ago than today, but we have had no issues whatsoever with attracting talent or retaining talent for that matter. I think that we offer our engineers and our people super challenging roles. They're working on industries mediating critical stuff, and they like it, and we've been able to attract great talent that way.

我想說的是，我們在吸引人才到 FICO 方面從來沒有遇到過任何問題，幾年前沒有，去年沒有，今年沒有，甚至在時間緊迫的時候——就業非常緊張的時候也沒有。是的，有一些工資和成本壓力，我會說一年前比今天多，但我們在吸引人才或留住人才方面沒有任何問題。我認為我們為我們的工程師和我們的員工提供了極具挑戰性的角色。他們致力於調解關鍵事物的行業，他們喜歡它，我們已經能夠通過這種方式吸引優秀人才。

With the exception of what Steve mentioned from a salary and stock comp expense standpoint, bonus standpoint, I wouldn't say that there's disproportionate pressure on compensation or anything like that.

除了史蒂夫從薪水和股票補償費用的角度、獎金的角度提到的內容之外，我不會說在薪酬或類似方面存在不成比例的壓力。

Your next question comes from the line of Surinder Thind with Jefferies.

您的下一個問題來自 Jefferies 的 Surinder Thind 系列。

I'd like to start with a question on the Scores B2C side of the business. It looked like revenues were sequentially flat quarter-over-quarter versus the declines that you've seen in the last couple of quarters. Any color there in terms of the dynamic? Does it look like things have stabilized at this point? And then maybe in terms of the new additions versus the number of people that are rolling off? Any color there?

我想先從分數 B2C 業務方面的問題開始。與你在過去幾個季度看到的下降相比，收入似乎環比持平。動態方面有什麼顏色嗎？看起來事情已經穩定在這一點上了嗎？然後也許就新增人數與正在減少的人數而言？那裡有顏色嗎？

I think things have stabilized. It feels like they've stabilized. For myFICO, we've had some success with the free program. And I think for our partners, volumes are stabilizing. So I think that's kind of the general picture there.

我認為情況已經穩定下來。感覺他們已經穩定了。對於 myFICO，我們在免費程序方面取得了一些成功。我認為對於我們的合作夥伴來說，銷量正在穩定。所以我認為這是那裡的一般情況。

Fair enough. And then in terms of just the dollar-based NRR, obviously, there was a material acceleration in the figure from 130% last quarter to 146% this quarter. That reverses the slowing trend that we had been seeing. Can you provide some additional color there? How much of that is sensitivity to FX? And then how much of that is just like the international business there?

很公平。然後就以美元為基礎的 NRR 而言，顯然，這個數字從上一季度的 130% 大幅上升到本季度的 146%。這扭轉了我們一直看到的放緩趨勢。你能在那裡提供一些額外的顏色嗎？其中有多少是對外彙的敏感度？那麼其中有多少就像那裡的國際業務一樣？

Yes. Very little of it is FX frankly. You've got to remember, this is a fairly small number of customers. So a customer coming out and really expanding their use case can have a pretty dramatic impact when they do that. So I mean you're going to have volatility in both that number and ARR number. But I mean we're seeing pretty much crossed forward with our customers. As they start to use it, they find additional use cases and they drive more volume. So we're really encouraged by that.

是的。坦率地說，其中很少有外匯。你必須記住，這只是一小部分客戶。因此，當客戶出來並真正擴展他們的用例時，他們會產生相當大的影響。所以我的意思是你會在這個數字和 ARR 數字上都有波動。但我的意思是，我們看到我們的客戶幾乎已經過去了。當他們開始使用它時，他們發現了更多的用例並且他們推動了更多的使用量。所以我們真的很受鼓舞。

And then one follow-on in terms of when I think about the new clients that you've been adding to the platform or the new use cases, that's consistently been growing at about a mid-teens pace. That was true last year. That was true this year. It was true through most of 2022. So it doesn't seem like there's really any impact from macro. You've kind of quantified it as there's maybe not a lot of sensitivity there given the importance of the platform. But can you discuss the conversations you're having with the new clients in terms of how you're quoting them? And what does that pipeline look like at this point? Like the conversions that you're seeing or that we're seeing now, is that conversations from last year -- when I say last year, meaning a year ago. Or how should we think about that in the current pipeline?

然後是當我想到你已經添加到平台或新用例的新客戶時的後續行動，它一直以大約十幾歲的速度增長。去年確實如此。今年確實如此。在 2022 年的大部分時間裡都是如此。因此，宏觀似乎並沒有真正產生任何影響。你已經對它進行了量化，因為考慮到平台的重要性，那裡可能沒有太多的敏感性。但是你能從你如何引用新客戶的角度來討論你與新客戶的對話嗎？在這一點上，這條管道是什麼樣子的？就像你看到的或我們現在看到的轉化一樣，是去年的對話——我說去年，意思是一年前。或者我們應該如何在當前管道中考慮這一點？

Well, for assurance, I would say the pipeline is as strong as it has ever been. So it's not like we're working off old pipeline from last year. I think that the future is every bit as bright as the present. So I'd lay that out there.

好吧，為了保證，我會說管道一如既往地強大。所以我們並不是在處理去年的舊管道。我認為未來和現在一樣光明。所以我會把它放在那裡。

The conversations are strategic. So we're operating at a higher level in our customers. We're talking to Chief Digital Officer, the Digital Transformation Officer, the C-suite, the CIO, the Chief Risk Officer. The conversation has been elevated, and that continues to be the case.

對話是戰略性的。因此，我們在客戶中處於更高水平。我們正在與首席數字官、數字轉型官、最高管理層、首席信息官、首席風險官交談。對話已經升級，並且情況仍然如此。

And I think that the couple of things that distinguish our sales approach here are, one, we have something nobody else has, which the industry very much wants. They want to be able to have this certain strategic view of the customer and optimize every interaction and leverage all the data that they know about every consumer to make the smartest kind of an interaction they possibly can. And that's an imperative for the industry. And certainly, the biggest and most forward-thinking banks and lenders are already well down this path, and they see that we have the right offering for that.

我認為我們的銷售方式與眾不同的兩點是，第一，我們擁有其他人沒有的東西，這是行業非常需要的。他們希望能夠對客戶有這種特定的戰略觀點，並優化每次互動，並利用他們了解的關於每個消費者的所有數據，盡可能地進行最明智的互動。這對行業來說是當務之急。當然，最大和最具前瞻性的銀行和貸方已經走上了這條道路，他們看到我們為此提供了合適的產品。

The other thing is the payback is very rapid. So unlike some of the software that we sold in the past where it'd be a long sales cycle and then it would be a long install and then the payback might take a couple, 3 years, and then it would get -- the license would be renewed for another 3 years and another 3 years. I would say that was kind of the typical software kind of approach 5 years ago.

另一件事是回報非常快。因此，與我們過去銷售的某些軟件不同，在這些軟件中，銷售週期很長，安裝時間也很長，然後可能需要幾年、3 年才能收回投資，然後它就會獲得 — 許可證再續3年再續3年。我想說那是 5 年前典型的軟件方法。

Today, the payback is extremely rapid. It can be within a year. It could be less than a year. And it's very easy to get started. You don't have to commit to a monster project to get started. You can start with one portfolio with 1 or 2 or 3 use cases, see how it goes and then expand from there. And as a result, it's very easy for our customers to give it a try. And when they do it, they try it, and they fall in love with it, and then they expand. And so I think between the very rapid ROI, the very strong references we get from our customers who talk to our would-be customers and the strategic nature, I think those are all the things that are powering us.

如今，回報非常迅速。可以在一年之內。可能不到一年。而且上手非常容易。您不必致力於一個龐大的項目即可開始。您可以從一個包含 1 個或 2 個或 3 個用例的投資組合開始，看看它的進展情況，然後從那裡擴展。因此，我們的客戶很容易嘗試一下。當他們這樣做時，他們會嘗試並愛上它，然後他們會擴展。因此，我認為在非常快速的投資回報率、我們從與我們的潛在客戶交談的客戶那裡獲得的非常強烈的參考以及戰略性質之間，我認為這些都是推動我們發展的因素。

Your next question comes from the line of George Tong with Goldman Sachs.

你的下一個問題來自 George Tong 與高盛的合作。

With fiscal 2Q now complete, you have visibility into the flow-through of your Scores special pricing increases. Can you discuss the traction of your special pricing increases? And how much of it is reflected in your updated guidance?

隨著第二財季的結束，您可以了解 Scores 特殊定價增長的流動情況。你能談談你的特殊價格上漲的牽引力嗎？其中有多少反映在您更新的指南中？

I mean if you're asking, is there any special pricing on top of the guidance that we've provided, if that's what you're asking, I would say yes, there is, but we don't quantify it. I mean we really -- there's enough uncertainty out there that we'll know what the special pricing is at the end of the year when the numbers are counted. So the short version is, there is some special pricing above the guidance that we've provided today, but I wouldn't want to quantify it today.

我的意思是，如果你問，在我們提供的指導之上是否有任何特殊定價，如果那是你要問的，我會說是的，有，但我們沒有量化它。我的意思是我們真的 - 那裡有足夠的不確定性，我們將在年底計算數字時知道特價是多少。所以簡短的版本是，在我們今天提供的指導之上有一些特殊定價，但我今天不想量化它。

Yes. And George, you'll follow the point if you realize we're conservative with the way we guide, and we don't want to quantify anything. So we obviously will update what we can. We'll provide more context when we can, but this is pretty much consistent with what we've done in the past years.

是的。喬治，如果你意識到我們的指導方式很保守，你就會明白這一點，我們不想量化任何東西。所以我們顯然會更新我們可以更新的內容。我們會盡可能提供更多背景信息，但這與我們過去幾年所做的非常一致。

And then aside from guidance, just in terms of what's the receptivity and what's the traction of your special pricing increases?

然後除了指導之外，就接受度和特殊定價增加的吸引力而言是什麼？

Well, they go through. We wind up publishing the new prices, and then they go through, and they flow through. And if we were to face attrition because of the pricing, I suppose we would start to learn about it now, but we certainly haven't seen anything like that.

好吧，他們通過了。我們最終發布了新價格，然後它們通過了，它們就流過了。如果我們因為定價而面臨人員流失，我想我們現在就會開始了解它，但我們肯定沒有看到過這樣的事情。

Perfect. Very helpful. And then secondly, you mentioned auto and card volumes are up modestly. Can you describe what you're seeing with origination volumes from a trend perspective? How are they trending? Are things getting better? Are they stable?

完美的。很有幫助。然後其次，你提到汽車和信用卡銷量適度上升。你能從趨勢的角度描述你看到的原始量嗎？他們的趨勢如何？情況好轉了嗎？他們穩定嗎？

Yes. I mean card origination is probably trending down. I mean, it was very hot at the end of last year -- calendar year. It's probably trending down a little bit. But auto has bounced around a lot. It's been pretty stable throughout the last couple of years. But I think pricing, you probably can get the data from industry sources than you're going to get from us. And again, (inaudible) in one.

是的。我的意思是信用卡發行量可能呈下降趨勢。我的意思是，去年年底 - 日曆年非常熱。它可能有一點點下降的趨勢。但是汽車已經反彈了很多。在過去的幾年裡，它一直非常穩定。但我認為定價，你可能可以從行業來源獲得數據，而不是從我們這裡獲得。再一次，（聽不清）合二為一。

Your next question comes from the line of Ashish Sabadra with RBC Capital Markets.

您的下一個問題來自 RBC Capital Markets 的 Ashish Sabadra。

Steve, maybe a quick clarification when you talked about the expense growth in the back half of the year. Is that increasing in the back half of the year? Is that excluding the $10 million onetime in the second quarter? Or doesn't include that?

史蒂夫，當你談到今年下半年的費用增長時，也許需要快速澄清一下。今年下半年會增加嗎？這不包括第二季度的 1000 萬美元嗎？還是不包括？

No. I mean, on a run rate basis, we'll probably be pretty flat to that $10 million or maybe that's probably the high end of where we'll be, again. But a lot of times how much revenue we get, we get a revenue that's above or beyond our guidance, there's some problem associated with that. But you can kind of back in your model, if you take our guidance and see what's the implied expenses is in the back half of the year. But personnel was up 6%. I think the personnel costs were not -- obviously, it's payroll increase and headcount expansion. So we had some true-ups of some incentives both in the U.S. and other parts of the world. So there's a little bit of -- and we have a number of different kind of onetime things that kind of gets that to $10 million number. So there's a lot of noise in the number. I don't want people to think that our expenses are ramping up that dramatically.

不，我的意思是，在運行率的基礎上，我們可能會持平於 1000 萬美元，或者這可能是我們將要達到的最高水平。但很多時候，我們獲得了多少收入，我們獲得的收入超過或超出了我們的指導，這會帶來一些問題。但是你可以回到你的模型中，如果你接受我們的指導，看看下半年的隱含費用是多少。但人員增加了 6%。我認為人員成本不是 - 顯然，這是工資增長和員工人數增加。因此，我們對美國和世界其他地區的一些激勵措施進行了調整。所以有一點——我們有很多不同類型的一次性東西，這些東西可以達到 1000 萬美元的數字。所以數字中有很多噪音。我不希望人們認為我們的開支正在急劇增加。

That's very helpful color. Maybe just a quick question on the FHFA press release that came out on March 23. It mentioned that it currently estimates the bi-merge credit implementation could occur by first quarter of 2024. I was just wondering if you had any thoughts on the implementation.

這是非常有用的顏色。也許只是關於 3 月 23 日發布的 FHFA 新聞稿的一個快速問題。它提到目前估計雙向合併信貸的實施可能會在 2024 年第一季度發生。我只是想知道您是否對實施有任何想法。

Your guess is as good as ours. It has always seemed like a somewhat aggressive timetable to us, but time will tell whether it happens at that time or later. And one could imagine that it could happen on the time frame that's been announced.

你的猜測和我們的一樣好。對我們來說，這似乎是一個有點激進的時間表，但時間會證明它是在那個時候發生還是在以後發生。人們可以想像，它可能會在已宣布的時間範圍內發生。

Your next question comes from the line of Jeff Meuler with Baird.

你的下一個問題來自 Jeff Meuler 與 Baird 的對話。

So Software looks great. Look forward to seeing you at FICO World, I guess, next month. I do have another question on the guidance methodology. I just want to make sure I'm understanding it correctly. I think you said, Will, that like you took a similar approach to prior years. There was another question, and it didn't sound like the environment is all that different than what you were expecting. But the magnitude of the increase this year was obviously quite a bit less, at least at the EPS line than some prior years, what you did during Q2. So I'm not understanding if like you're holding back more of the pricing benefit this year given uncertainty, or if there's offsets in volumes. You mentioned card getting worse or just anything like that? Or is this a pretty full view of the calendar '23 special pricing impact similar to what you've incorporated in prior years with a little bit of conservatism?

所以軟件看起來很棒。期待下個月在 FICO World 見到你。我對指導方法還有另一個問題。我只是想確保我理解正確。我想你說過，威爾，就像你對前幾年採取了類似的方法一樣。還有一個問題，聽起來環境和你想像的並沒有什麼不同。但今年的增長幅度顯然要小得多，至少在 EPS 線上與前幾年相比，你在第二季度所做的。所以我不明白你是否在今年因為不確定性而抑制了更多的定價優勢，或者是否存在銷量抵消。你提到卡變得更糟或類似的東西？或者這是對日曆 '23 特殊定價影響的全面了解，類似於您在前幾年加入的一些保守主義？

Yes, I think it's probably more conservatism than we've had in the past because of so much uncertainty, right? I mean, you go back a couple of years, really pull guidance completely. So I mean there was a lot of uncertainty there. We have a fair amount now as well, but we're obviously dealing in a pretty volatile environment where a lot of our peers are funding their guidance. So we're trying to be as prudent as possible.

是的，我認為這可能比我們過去更加保守，因為有太多的不確定性，對吧？我的意思是，你回到幾年前，真的完全拉動了指導。所以我的意思是那裡有很多不確定性。我們現在也有相當數量，但我們顯然在一個非常動蕩的環境中交易，我們的許多同行都在為他們的指導提供資金。所以我們正在努力盡可能謹慎。

Got it. And then just can you comment on free cash flow? I get that it could be lumpy quarter-to-quarter. I think we have had a couple quarters in a row now where it's a bit lower. So just what's going on there? Or any sense of like when you'd expect that to normalize?

知道了。然後你能評論一下自由現金流嗎？我知道它可能每個季度都不穩定。我認為我們現在已經連續幾個季度有所下降。那麼到底發生了什麼？或者當你希望它正常化時有什麼感覺？

I think it'll probably normalize in the back half of the year. I think what happens is you see it both in our accounts receivable. So I think as our Scores revenue jumped up, it hit the receivables, and that takes a while to flow through to cash. So a lot of that is fairly late in the quarter. So I think you'll probably see a lot more flow through next quarter. There's nothing changing in any of that. So I mean if you look at a larger period of time, you'll see the flow through.

我認為它可能會在今年下半年恢復正常。我想發生的事情是你在我們的應收賬款中看到它。因此，我認為隨著我們的 Scores 收入猛增，它影響了應收賬款，這需要一段時間才能轉為現金。所以很多都是在本季度的後期。所以我認為你可能會在下個季度看到更多的流量。這一切都沒有改變。所以我的意思是，如果你看一段較長的時間，你會看到流過。

And there are no further questions. I'll turn the call back to your presenters for closing remarks. Thank you.

沒有其他問題了。我會將電話轉回給您的主持人，請他們發表結束語。謝謝。

All right. Thank you all for joining today, and we look forward to speaking with you again soon. Thank you. This ends the call.

好的。感謝大家今天的加入，我們期待很快再次與您交談。謝謝。通話結束。

And that does conclude the conference call for today. We thank you very much for your participation. You may now disconnect your lines.

這確實結束了今天的電話會議。我們非常感謝您的參與。您現在可以斷開線路。