Fair Isaac Corp (FICO) 2024 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fair Isaac second quarter earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Fair Isaac 第二季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Dave Singleton. Please go ahead.

我現在想把會議交給今天的發言人戴夫辛格頓。請繼續。

Good afternoon, and thank you for attending FICO's second quarter earnings call. I'm Dave Singleton, Vice President of Investor Relations, and I'm joined today by our CEO, Will Lansing; and our CFO, Steve Weber.

下午好，感謝您參加 FICO 第二季財報電話會議。我是投資者關係副總裁戴夫辛格頓 (Dave Singleton)，今天我們的執行長威爾蘭辛 (Will Lansing) 也加入了我的行列。和我們的財務長史蒂夫·韋伯。

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 with the prior quarter to facilitate an understanding of the run rate of the business.

今天，我們發布了一份新聞稿，描述了與前一年相比的財務表現。在這次電話會議上，管理層還將討論與上一季相比的結果，以幫助了解業務的運作率。

Certain statements made in this presentation are forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties is contained in the company's filings with the SEC, particularly in the Risk Factors and Forward-Looking Statements portion of such filings. Copies are available from the SEC, from the FICO website or from our Investor Relations team.

根據《1995 年私人證券訴訟改革法案》，本簡報中的某些陳述具有前瞻性。有關這些風險和不確定性的資訊包含在該公司向 SEC 提交的文件中，特別是此類文件的風險因素和前瞻性陳述部分。副本可從 SEC、FICO 網站或我們的投資者關係團隊取得。

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 measure. 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. And a replay of this webcast will be available through April 25, 2025.

此次電話會議還將包括有關某些非公認會計準則財務指標的聲明。請參閱今天發布的公司收益報告和 G 條例時間表，以了解每項非 GAAP 財務指標與最具可比性 GAAP 指標的調整表。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 SEC 網站 sec.gov 上取得。該網路廣播的重播將持續至 2025 年 4 月 25 日。

I will now turn the call over to our CEO, Will Lansing.

我現在將把電話轉給我們的執行長威爾·蘭辛 (Will Lansing)。

Thanks, Dave, and thanks, everyone, for joining us for our second quarter earnings call. In the Investor Relations section of our website, we posted some financial highlights slides that we'll be referencing during our presentation today.

謝謝戴夫，也謝謝大家參加我們第二季的財報電話會議。在我們網站的投資者關係部分，我們發布了一些財務亮點幻燈片，我們將在今天的演示中引用這些幻燈片。

Today, I'll talk about this quarter's results and our increased guidance for the full fiscal year. We again delivered strong results, demonstrating the resiliency of our business with solid growth both in Scores and in Software.

今天，我將討論本季的業績以及我們對整個財年增加的指導。我們再次取得了強勁的業績，透過分數和軟體的穩健成長證明了我們業務的彈性。

As shown on Page 2 of the second quarter financial highlights, we reported Q2 revenues of $434 million, up 14% over the last year. We delivered $130 million of GAAP net income in the quarter, up 28%. We delivered GAAP earnings of $5.16 per share, up 29% from the prior year. On a non-GAAP basis, Q2 net income was $154 million with earnings of $6.14 per share, up 27% and 29%, respectively. We delivered free cash flow of $62 million in our second quarter and $182 million in the first half of fiscal '24.

如第二季財務摘要第 2 頁所示，我們報告第二季營收為 4.34 億美元，比去年成長 14%。本季我們實現 GAAP 淨利 1.3 億美元，成長 28%。我們的 GAAP 收益為每股 5.16 美元，比上年增長 29%。以非公認會計原則計算，第二季淨利為 1.54 億美元，每股收益為 6.14 美元，分別成長 27% 和 29%。我們第二季的自由現金流為 6,200 萬美元，24 財年上半年的自由現金流為 1.82 億美元。

We continue to return capital to our shareholders through buybacks. In Q2, we repurchased 144,000 shares at an average price of $1,246 per share. We have $367 million remaining on our Board repurchase authorization.

我們繼續透過回購向股東返還資本。第二季度，我們以每股 1,246 美元的平均價格回購了 144,000 股股票。我們的董事會回購授權還剩 3.67 億美元。

Now in our Scores segment, on Page 6 of the presentation, our second quarter revenues were $237 million, up 19% versus the prior year. In B2B, the current quarter revenues were up 28% versus the prior year. On the B2C side, the current quarter revenues were down 4% versus the prior year.

現在，在簡報第 6 頁的分數部分，我們第二季的營收為 2.37 億美元，比上年成長 19%。在 B2B 領域，本季營收比上年成長 28%。 B2C 方面，本季營收較前一年下降 4%。

Second quarter mortgage originations revenues were up 85% versus the prior year. Mortgage origination revenue accounted for 46% of B2B revenue and 36% of total Scores revenue. Auto originations revenues were down 1%, while credit card, personal loan and other originations revenues were down 9% versus the prior year.

第二季抵押貸款發放收入比去年同期成長 85%。抵押貸款發放收入佔 B2B 收入的 46%，佔總收入的 36%。汽車起源收入下降 1%，而信用卡、個人貸款和其他起源收入比上年下降 9%。

We continue to drive strong adoption for FICO Score 10 T for nonconforming mortgages. Since 2023, clients with over $100 billion in annualized mortgage originations and about $300 billion in eligible mortgage portfolio servicing have signed up for the FICO Score 10 T. FICO 10 T for conforming mortgages will be rolled out based on the time line of the FHFA.

我們繼續推動不合格抵押貸款採用 FICO Score 10 T。自2023 年以來，年化抵押貸款發放超過1000 億美元、合格抵押貸款組合服務約3000 億美元的客戶已簽署FICO Score 10 T。 。

In our Software business, we delivered $197 million in Q2 revenue, up 8% from last year, driven by growth in on-premises and SaaS software, partially offset by a decline in professional services. We continue to drive strong growth in ARR and NRR through our land-and-expand strategy, with expand driven by increased customer usage.

在我們的軟體業務中，我們第二季的營收為 1.97 億美元，比去年成長 8%，這得益於本地和 SaaS 軟體的成長，但部分被專業服務的下降所抵消。我們透過土地擴張策略持續推動 ARR 和 NRR 的強勁成長，並透過客戶使用量的增加推動擴張。

As shown on Page 7, total ARR was up 14%, with platform ARR growing 32% and nonplatform ARR growing 8%.

如第 7 頁所示，總 ARR 成長了 14%，其中平台 ARR 成長了 32%，非平台 ARR 成長了 8%。

Total NRR for the quarter, shown on Page 8, was 112%. Platform NRR was 126%, and nonplatform NRR was 106%.

第 8 頁顯示的本季總 NRR 為 112%。平台 NRR 為 126%，非平台 NRR 為 106%。

Our total ACV bookings for the quarter were $17 million. Our pipeline remains strong, especially with platform offerings.

本季我們的 ACV 預訂總額為 1700 萬美元。我們的通路仍然強勁，特別是在平台產品方面。

Before I turn it over to Steve to talk about financial detail, I'd like to take a few moments to talk about the FICO World event we hosted last year -- last week. The 4-day event included 1,200 attendees, representing more than 400 companies from 60 countries. FICO World brought together customers and prospective customers from around the globe to discuss the benefits of making real-time decisions at scale through the power of the FICO platform.

在我交給 Steve 討論財務細節之前，我想花一些時間談談我們去年（上週）舉辦的 FICO World 活動。為期 4 天的活動吸引了 1,200 名與會者，代表來自 60 個國家的 400 多家公司。 FICO World 匯聚了來自世界各地的客戶和潛在客戶，討論透過 FICO 平台的力量大規模做出即時決策的好處。

Current customers explained the benefits of improved profits, increased customer acquisition and retention, reduced costs, growth in new product offerings and improved employee efficiency. Through FICO platform demonstrations in our innovation center, customers experienced real examples of the variety of use cases that can be deployed using the FICO platform.

目前的客戶解釋了提高利潤、增加客戶獲取和保留、降低成本、增加新產品供應以及提高員工效率的好處。透過我們創新中心的 FICO 平台演示，客戶體驗了可使用 FICO 平台部署的各種用例的真實範例。

At FICO World, we announced several innovations. We responded to market demand with an open API framework, a FICO marketplace open ecosystem and business composability. Together, these innovations foster a more collaborative environment by reducing silos and creating transparency into future outcomes.

在 FICO World 上，我們宣布了多項創新。我們透過開放的 API 框架、FICO 市場開放生態系統和業務可組合性來回應市場需求。這些創新共同減少了孤島並為未來的結果創造了透明度，從而創造了一個更具協作性的環境。

Some of the content from FICO World will be available in the coming weeks on our YouTube channel. I'd encourage all of you to view the demonstrations and presentations to better understand our customers' excitement around this innovative technology.

FICO World 的部分內容將在未來幾週內在我們的 YouTube 頻道上提供。我鼓勵大家觀看演示和演示，以便更好地了解我們的客戶對這項創新技術的興奮。

I'll talk about our outlook for the balance of the year, including our increased guidance, but first, let me turn it to Steve for further details.

我將談論我們對今年剩餘時間的展望，包括我們增加的指導，但首先，讓我向史蒂夫詢問更多細節。

Thanks, Will, and good afternoon, everyone. As Will mentioned, we had another very good quarter with total revenue of $434 million, an increase of 14% over the prior year. Scores segment revenues for the quarter were $237 million, up 19% from Q2 of 2023. B2B revenues were up 28% driven primarily by mortgage originations revenues. Our B2C revenues were down 4% versus the prior year due to volume declines in our myFICO.com business.

謝謝威爾，大家下午好。正如威爾所提到的，我們又度過了一個非常好的季度，總收入達到 4.34 億美元，比上年增長 14%。 Scores 部門本季營收為 2.37 億美元，較 2023 年第二季成長 19%。由於 myFICO.com 業務量下降，我們的 B2C 營收比前一年下降了 4%。

Software revenues in the second quarter were $197 million, up 8% versus Q2 2023. On-premises and SaaS software revenue grew year-over-year, while professional services revenues declined.

第二季軟體營收為 1.97 億美元，比 2023 年第二季成長 8%。

This quarter, 84% of total company revenues were derived from our Americas region, which is a combination of our North America and Latin America regions. Our EMEA region generated 10% of revenues, and the Asia Pacific region delivered 6%.

本季度，該公司總收入的 84% 來自美洲地區，該地區是北美和拉丁美洲地區的組合。我們的 EMEA 地區貢獻了 10% 的收入，亞太地區貢獻了 6%。

Our total software ARR was $697 million, a 14% increase over the prior year. Platform ARR topped $200 million this year for the first time at $201 million and represented 29% of our total Q2 ARR, up from 25% of the total in Q2 of 2023. Platform ARR grew 32% versus the prior year, while nonplatform ARR grew 8% to $496 million this quarter.

我們的軟體 ARR 總額為 6.97 億美元，比上一年增長 14%。平台 ARR 今年首次突破 2 億美元，達到 2.01 億美元，佔第二季總 ARR 的 29%，高於 2023 年第二季的 25%。季度成長8%，達到4.96 億美元。

Our platform land-and-expand strategy continues to be very successful. Our dollar-based net retention rate in the quarter was 112%. Platform NRR was 126%, while our nonplatform NRR was 106%. Platform NRR was driven by a combination of new use cases and increased usage. Nonplatform was driven by customers' increased usage and by CPI price increases.

我們的平台落地和擴張策略仍然非常成功。本季以美元計算的淨保留率為 112%。平台 NRR 為 126%，而非平台 NRR 為 106%。平台 NRR 是由新用例和使用量增加共同推動的。非平台是由客戶使用量增加和 CPI 價格上漲所推動的。

Our software ACV bookings for the quarter were $16.8 million. As a reminder, ACV bookings include only the annual value of Software sales and exclude professional services.

本季我們的軟體 ACV 預訂金額為 1,680 萬美元。請注意，ACV 預訂僅包括軟體銷售的年度價值，不包括專業服務。

Turning to expenses. Our total operating expenses were $239 million this quarter versus $221 million in the prior year. Our current expenses are a 4% increase over the prior quarter. As we indicated last quarter, we maintained focus on investments to accelerate development of the FICO platform, and that incremental investment is relatively modest and built into our guidance.

轉向開支。本季我們的總營運支出為 2.39 億美元，上一年為 2.21 億美元。我們目前的支出比上一季增加了 4%。正如我們上季度所表示的那樣，我們仍然專注於加速 FICO 平台開發的投資，增量投資相對溫和，並已納入我們的指導中。

Our non-GAAP operating margin, as shown in our Reg G schedule, was 53% for the quarter, and that represents a 400 basis point increase from the same quarter last year.

正如我們的 Reg G 時間表所示，本季我們的非 GAAP 營業利潤率為 53%，比去年同期成長了 400 個基點。

GAAP net income this quarter was $130 million, up 28% from the prior year's quarter. Our non-GAAP net income was $154 million for the quarter, up 27% in the prior year's quarter.

本季 GAAP 淨利為 1.3 億美元，較上年同期成長 28%。我們本季的非 GAAP 淨利潤為 1.54 億美元，比去年同期成長 27%。

The effective tax rate for the quarter was 25%. We believe that our fiscal year 2024 net effective tax rate is expected to be around 22%, while our recurring tax rate is expected to be around 26%. And as a reminder, the recurring tax rate is before any excess tax benefit and other discrete items that were recognized.

本季的有效稅率為 25%。我們認為，2024 財年的淨有效稅率預計為 22% 左右，經常性稅率預計為 26% 左右。提醒一下，經常性稅率是在任何超額稅收優惠和其他已確認的離散項目之前的。

Free cash flow for the quarter was $61.6 million, a 30% decrease from the prior year. The trailing 12-month free cash flow was 457% -- $457 million compared to $494 million in the prior quarter. We do expect free cash flow to accelerate from the Q2 level in the next 2 quarters.

該季度自由現金流為 6,160 萬美元，比上年減少 30%。過去 12 個月的自由現金流為 457%，即 4.57 億美元，而上一季為 4.94 億美元。我們確實預計未來兩季自由現金流將較第二季水準加速。

At the end of the quarter, we had $177 million in cash and marketable investments.

截至本季末，我們擁有 1.77 億美元的現金和適銷投資。

Our total debt at quarter end was $2.04 billion with a weighted average interest rate of 5.2%. Currently, [63%] 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 rate debt balances in future periods.

截至季末，我們的總負債為 20.4 億美元，加權平均利率為 5.2%。目前，我們總債務的[63%]是固定利率。我們的浮動利率債務可隨時提前償還，使我們能夠靈活地利用自由現金流來減少未來期間未償還的浮動利率債務餘額。

In terms of return of capital, we did buy back 144,000 shares in the second quarter at an average price of $1,246 per share. And at the end of the quarter, we still had $367 million remaining on the Board authorization.

在資本回報方面，我們第二季確實回購了144,000股股票，平均價格為每股1,246美元。截至本季末，董事會授權仍有 3.67 億美元剩餘。

And with that, I'll turn it back to Will for his thoughts on the rest of the year and to give the information on our increase in the full year guidance.

接下來，我將把它轉回威爾，詢問他對今年剩餘時間的想法，並提供有關我們增加全年指導的資訊。

Thank you, Steve. Our strategy remains consistent despite an uncertain macroeconomic environment. We're experiencing strong growth in our Scores business, even as the current rate environment has driven volumes lower.

謝謝你，史蒂夫。儘管宏觀經濟環境不確定，但我們的策略仍然保持一致。儘管當前的費率環境導致銷售下降，但我們的分數業務正在強勁成長。

Throughout our business, we continue to invest in innovation. This is particularly evident as we see growing customer adoption and expanded use cases of FICO platform. Our customers are delighted to be able to optimize interactions with their end customers through data-driven, composable solutions that are executed in real time.

在我們的整個業務中，我們不斷投資於創新。當我們看到 FICO 平台的客戶採用率不斷提高以及用例不斷擴大時，這一點尤其明顯。我們的客戶很高興能夠透過即時執行的數據驅動、可組合的解決方案來優化與最終客戶的互動。

I'm pleased to report that today, we're raising our full year guidance as we enter the second half of our fiscal year. We're raising our full year revenue guidance to $1.69 billion. GAAP net income is now expected to be $495 million, with GAAP earnings per share of $19.70. Non-GAAP net income is now expected to be $573 million, with non-GAAP earnings per share of $22.80.

我今天很高興地向大家報告，隨著進入財年下半年，我們將上調全年指引。我們將全年營收指引上調至 16.9 億美元。目前 GAAP 淨利潤預計為 4.95 億美元，GAAP 每股收益為 19.70 美元。目前，非 GAAP 淨利潤預計為 5.73 億美元，非 GAAP 每股收益為 22.80 美元。

With that, I'll turn the call back to Dave to open the Q&A session.

之後，我會將電話轉回戴夫以開始問答環節。

Thanks, Will. This concludes our prepared remarks, and we're now ready to take questions. Operator, please open the lines.

謝謝，威爾。我們準備好的發言到此結束，現在我們準備好回答問題。接線員，請開通線路。

(Operator Instructions) Our first question comes from Manav Patnaik with Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的 Manav Patnaik。

Maybe I'll just start with the Software segment first, Will. Clearly, we were at FICO World and your comments -- both are pretty bullish. But can you just help us appreciate or understand the second quarter in a row of deceleration on the platform side? I think last quarter, you said there were some movement in the bookings or timing, et cetera. So just help us if there's something more of that going on? Is 30% the new level now? Just any help there would be appreciated.

也許我會先從軟體部分開始，威爾。顯然，我們在 FICO World 上看到了您的評論——兩者都非常樂觀。但您能幫我們欣賞或理解平台端第二季的連續減速嗎？我想上個季度，您說過預訂或時間安排等方面有一些變化。如果還有其他事情發生，請幫助我們？現在30%是新水準嗎？只要有任何幫助，我們將不勝感激。

Yes, absolutely. So as you know, we had many, many quarters of over 50% growth in the platform, and then we had slowed to the 40s, and now we're in the 30s. And I think that's a reasonable and sustainable level for the foreseeable future. I think we had always anticipated some level of slowing just because as that number gets bigger, that was inevitable. And I think that's really all it is.

是的，一點沒錯。如您所知，我們的平台在許多季度都實現了 50% 以上的成長，然後我們已經放緩到 40 多歲，現在我們已經到了 30 多歲。我認為在可預見的未來，這是一個合理且可持續的水平。我認為我們一直預計會出現一定程度的放緩，因為隨著這個數字變得更大，這是不可避免的。我認為這就是全部了。

We're not seeing anything that's caused for any kind of concern or alarm. Our customers are buying the platform. They're expanding the use cases once they've got the platform in. There's a little bit of timing issues around various deals but I don't think anything really significant. I guess it's probably worth pointing out that the second half of the year is always bigger than the first half. And so there's more to come this year.

我們沒有看到任何引起任何擔憂或恐慌的事情。我們的客戶正在購買這個平台。一旦他們獲得了平台，他們就會擴展用例。我想可能值得指出的是，下半年總是比上半年更大。今年還會有更多的事情發生。

And Manav, I would just say we had a really difficult comp this quarter, too. Second quarter last year, the platform grew 60%. So we're growing more than 30% off of a pretty big number. It was a big step up last year in the second quarter.

馬納夫，我只想說我們這個季度的比賽也非常困難。去年第二季度，該平台成長了60%。因此，我們的成長幅度超過了 30%，這是一個相當大的數字。去年第二季這是一個很大的進步。

Okay. Got it. That's helpful. And then maybe just one on the Scores, on the mortgage origination side or the moving pieces there, Steve. Maybe just how did volumes come in this quarter versus your expectations? And then when you think about the guidance raise, like what were the moving pieces there as well, please?

好的。知道了。這很有幫助。然後也許只是關於分數、抵押貸款發放方面或那裡的移動部分的一個，史蒂夫。也許本季的銷售量與您的預期相比如何？然後，當您考慮指導加薪時，還有哪些可移動的部分？

Yes. I mean you know how we guide. We're pretty conservative. We don't -- we're not banking on things getting better anytime soon. I mean I think even when we gave guidance last year, people at that point we're talking about 6 rate cuts in the year, and we weren't anticipating that.

是的。我的意思是你知道我們如何指導。我們相當保守。我們不——我們不指望事情很快就會好起來。我的意思是，我認為即使我們去年給出了指引，人們當時也在談論今年的 6 次降息，而我們並沒有預料到這一點。

So the way we look at the guidance, and mortgage, obviously, being such a big piece of that, is that we don't expect things to get better in our fiscal year. And if they do, great, but it's hard for us to depend on that because obviously, the rates are going to be higher longer than anybody thought. So that's kind of how we look at that. So when they do come down, we'll enjoy that benefit, but we don't try to put a time line on that.

因此，我們看待指導的方式以及抵押貸款顯然是其中的重要組成部分，我們預計本財年的情況不會好轉。如果他們這樣做了，那就太好了，但我們很難依賴這一點，因為顯然，利率將比任何人想像的要高。這就是我們的看法。因此，當它們確實下降時，我們將享受到這一好處，但我們不會嘗試為此設定時間表。

Our next question comes from Faiza Alwy with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Faiza Alwy。

So I wanted to follow up on mortgage. You've taken obviously a lot of pricing successfully the last couple of years. And I know you have a long-term strategic plan of value creation here. And there's been some noise from regulators, other bodies. I'm curious how you think about that. And what are some of the factors that you're considering as you think about your long-term strategic plan on pricing?

所以我想跟進抵押貸款。顯然，過去幾年你已經成功地進行了許多定價。我知道你們在這裡有一個創造價值的長期策略計畫。監管機構和其他機構也發出了一些聲音。我很好奇你對此有何看法。在考慮長期定價策略計畫時，您會考慮哪些因素？

Well, as we've discussed in the past, we're catching up from 30 years of frozen pricing. And so our putting through price increases in this space is really a matter of trying to close the gap on the value that we provide relative to what we charge.

嗯，正如我們過去討論過的，我們正在擺脫 30 年的凍結定價。因此，我們在這個領域進行漲價實際上是為了縮小我們提供的價值與我們收取的費用之間的差距。

The way we think about criticism, because you're right, every once in a while, there is noise about price increases. The way we think about it is transparency is our friend. And so we have increasingly been willing and interested to share exactly what our pricing is because it's such a small part of the overall bundle.

我們看待批評的方式，因為你是對的，每隔一段時間，就會有關於價格上漲的噪音。我們認為透明度是我們的朋友。因此，我們越來越願意並且有興趣準確地分享我們的定價，因為它只佔整個捆綁包的一小部分。

So if the concern, whether it's from Congress or regulators or third-party groups, is about the level of expense associated with the FICO mortgage score, it's important for everyone to understand that we're talking about single-digit dollars in a bundle that cost a consumer about $6,000. So we point out the gigantic gap between what we charge and the bundle in which we reside. And we think that, that's the way to do it. We think transparency is our friend.

因此，如果人們擔心的是與 FICO 抵押貸款評分相關的費用水平，無論是來自國會、監管機構還是第三方團體，那麼每個人都必須明白，我們正在談論的是個位數的美元捆綁，消費者花費約6,000 美元。因此，我們指出我們的收費與我們所居住的捆綁包之間存在巨大差距。我們認為，這就是做到這一點的方法。我們認為透明度是我們的朋友。

Great. And then just to follow up on other originations. Maybe you can talk about what you're seeing on the card and auto side in terms of volumes versus pricing. Sort of what's the overall environment like? And maybe if you've adjusted your expectations for volumes just given the macro environment here?

偉大的。然後只是跟進其他起源。也許您可以談談您在卡片和汽車方面看到的銷售與定價方面的情況。整體環境怎麼樣？也許您根據這裡的宏觀環境調整了對銷售的預期？

I don't know that we've really adjusted our expectations. I think that what we're seeing is kind of in line with what we did expect, and it is a function of the macro environment. As we pointed out, we're down a little bit in auto and a little bit more in credit card and other. But I don't think it's any kind of surprise given the macro environment.

我不知道我們是否真的調整了我們的期望。我認為我們所看到的情況與我們的預期是一致的，這是宏觀環境的函數。正如我們所指出的，我們在汽車方面略有下降，在信用卡和其他方面則有所下降。但考慮到宏觀環境，我認為這並不令人意外。

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

我們的下一個問題來自 Surinder Thind 和 Jefferies 的對話。

I'd like to revisit the Software business and more specifically, just kind of the bookings. When you think about the client conversations that you've been having, obviously, quite positive, but how much should we attribute to macro because there has been an overall slowdown? So is the earlier commentary that you -- the slowdown is not macro related to any extent?

我想重新審視一下軟體業務，更具體地說，就是預訂業務。當您考慮與客戶的對話時，您顯然非常積極，但由於整體經濟放緩，我們應該在多大程度上歸因於宏觀經濟？那麼，您先前的評論是否認為經濟放緩與宏觀經濟沒有任何關係？

So I think that it's fair to put some of the explanation on macro environment because what we're not seeing is losses to competition. What we are seeing is projects deferred or taking a little bit longer. And so I think it's very fair to attribute some of that to the macro environment.

因此，我認為對宏觀環境進行一些解釋是公平的，因為我們沒有看到競爭造成的損失。我們看到的是專案被推遲或需要更長的時間。因此，我認為將其中一些歸因於宏觀環境是非常公平的。

Got it. And then I guess, turning to the nonplatform piece. When you think about volumes versus pricing, I think you mentioned CPI, but just any other color that you can provide? Is this mostly growth within like Falcon? Or how does pricing work here? Is it just CPI is the right number, and that's how it should continue? Or how should we think about that?

知道了。然後我想，轉向非平台部分。當您考慮銷售與定價時，我認為您提到了 CPI，但是您可以提供任何其他顏色嗎？這主要是像獵鷹一樣的成長嗎？還是這裡的定價是如何運作的？難道只是 CPI 是正確的數字，並且應該繼續這樣下去嗎？或者說我們該如何思考這個問題？

So as you know, the nonplatform business is very mature and we're deeply embedded, and yet our customers often prefer to renew and renew and renew. And so there's a cycle of multiple renewals typically associated with our licensed software and with our legacy and nonplatform software.

如您所知，非平台業務非常成熟，我們已深深嵌入其中，但我們的客戶往往更喜歡續訂、續訂、再續訂。因此，通常會出現與我們的授權軟體以及我們的舊版和非平台軟體相關的多次續約週期。

Our philosophy is to not push the limits on pricing there. The customers are the same customers who are buying platform from us and customers that we'll have a relationship with for the next 20 or 30 years. And so it's not about harvesting and gouging. We raise our prices to cover costs of adding features and functionality and cybersecurity and keeping the product current. But we're not really pushing the limits of what could be done on price there and don't really intend to.

我們的理念是不突破定價限制。這些客戶是向我們購買平台的客戶，也是我們將在未來 20 或 30 年與之維持關係的客戶。所以這與收穫和鑿鑿無關。我們提高價格以彌補增加特性和功能以及網路安全以及保持產品最新的成本。但我們並沒有真正突破價格的極限，也無意這麼做。

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

我們的下一個問題來自凱爾·彼得森和李約瑟的對話。

I wanted to start on capital return. Obviously, it looks like you guys bought back a little bit more past quarter than the first quarter. How should we think about the pace of buybacks in the back half of the year? Obviously, you've seen a bit of a pullback in the shares, obviously, with market and such. And then also just given some of your comments on potential for free cash flow to accelerate as the year progresses. I just want to get your opinion on how you guys are thinking about that over the next few quarters.

我想從資本回報開始。顯然，看起來你們上個季度的回購量比第一季多了一些。我們該如何看待下半年的回購節奏？顯然，你已經看到股票出現了一些回調，顯然是由於市場等原因。然後也剛剛給出了您對隨著時間的推移自由現金流加速的潛力的一些評論。我只是想聽聽你們對接下來幾季如何看待這個問題的看法。

We remain as committed to buyback as we have ever been. And it is our intent to continue to spend at least our free cash flow and often in excess of our free cash flow on buyback every year. And I don't expect that would change. Our leverage has slipped a bit as our earnings have gone up. And I guess that's a happy bonus of being more profitable. And in the fullness of time, you'll see that reflected in increased buyback.

我們仍然一如既往地致力於回購。我們打算繼續每年至少花費我們的自由現金流，並且經常超過我們的自由現金流進行回購。我預計這種情況不會改變。隨著我們的獲利增加，我們的槓桿率有所下降。我想這就是獲得更多利潤所帶來的快樂。隨著時間的推移，你會看到這反映在回購的增加上。

Got it. That makes sense, and that's helpful. And just a follow-up, I guess, on the professional services piece of the business, I guess that revenue is falling off a bit. I guess that it's lower margin. But I just want to get your sense as to kind of is this, call it, $19 million to $22 million a quarter, is that kind of a good range to use moving forward given the mix of the business that you guys are selling? Or was there anything kind of onetime in this past quarter that dragged it down a bit below kind of historical levels?

知道了。這是有道理的，而且很有幫助。我想，在專業服務業務方面，我想收入會略有下降。我猜它的利潤率較低。但我只是想了解一下你們的感覺，即每季 1900 萬美元到 2200 萬美元，考慮到你們正在銷售的業務組合，這個範圍是一個很好的未來使用範圍嗎？或者在過去的季度中是否有什麼一次性事件將其拖至歷史水平以下？

I think it's a reasonable range to anticipate going forward. We love our professional services, and yet we're not a professional services company, first and foremost, we're a software company. And so our goal with professional services is to provide enough PS to manage quality installs and keep our customers happy.

我認為這是一個合理的預期範圍。我們熱愛我們的專業服務，但我們不是一家專業服務公司，首先，我們是一家軟體公司。因此，我們專業服務的目標是提供足夠的 PS 來管理高品質安裝並讓我們的客戶滿意。

We're also delighted to have partners do the installation from us, and we're bringing out partners to do some of that work. I don't imagine that our PS will shrink much more than it already has. As you know, it's come down quite a bit. And we're probably pretty close to -- I think we're at kind of a base level that it would be hard to imagine going below.

我們也很高興有合作夥伴來幫我們安裝，並且我們正在邀請合作夥伴來完成其中的一些工作。我不認為我們的 PS 會比現在收縮得更多。如您所知，它已經下降了很多。我們可能非常接近——我認為我們正處於一個基本水平，很難想像低於這個水平。

Our next question comes from the line of Ashish Sabadra with RBC.

我們的下一個問題來自 Ashish Sabadra 與 RBC 的對話。

I just had a quick question on the expense trajectory. I was wondering if you -- what should we expect there, both in terms of either sequential or year-on-year growth in expenses for the rest of the year?

我只是想問一個關於費用軌跡的快速問題。我想知道您是否——我們應該對今年剩餘時間的支出連續增長或同比增長有何預期？

Yes. So we had -- we said we had FICO World this quarter. So there's -- that's a pretty significant expense for us. So you'll see an increase in our Q3 spending by a little bit that's associated with that. And then the fourth quarter would probably be relatively flat to that or maybe even down a little bit. But we don't expect any significant uptick in expenses for the rest of the year. Really, it's basically due to the FICO World being held this quarter.

是的。所以我們——我們說我們這個季度有 FICO World。所以這對我們來說是一筆相當大的開銷。因此，您會看到與此相關的第三季支出略有增加。然後第四季可能會相對持平，甚至可能略有下降。但我們預計今年剩餘時間的支出不會大幅增加。實際上，這主要是由於本季舉辦的 FICO World。

That's helpful color. And maybe just from a modeling perspective, the on-prem software, again, the de-emphasis there, that's maybe one of the reasons why that piece of the Software revenue has been muted. How should we think about that going forward? Any color?

這是有用的顏色。也許只是從建模的角度來看，本地軟體，再次強調那裡，這可能是這部分軟體收入被削弱的原因之一。未來我們該如何思考這個問題？任何顏色？

About the on-prem software?

關於本地軟體？

Yes.

是的。

So I mean we're focused -- we're cloud-first, right? So we really are focused in the cloud. But if our customers want to run it on-prem, we'll sell it to them that way there. But I would expect that the on-prem piece is probably not going to grow a lot, but it's probably not going to shrink a lot either because a lot of those are deeply embedded, and it's going to take years to move it to the cloud.

所以我的意思是我們很專注——我們是雲端優先，對吧？所以我們確實專注於雲端。但如果我們的客戶想在本地運行它，我們就會在那裡將其出售給他們。但我預計本地部分可能不會成長很多，但也可能不會縮小很多，因為其中許多都是深深嵌入的，並且需要數年時間才能將其遷移到雲端。

Our next question comes from Jeff Meuler with Baird.

我們的下一個問題來自 Jeff Meuler 和 Baird。

So I want to go back to the card, p loan and other origination revenue down 9%. I think the majority of that is cards. So is pricing a positive contributor to that line? And if so, just based upon the bureaus that have reported thus far, it doesn't seem like card volumes are down that much, but I'd love [to get your thoughts on]...

所以我想回到卡片、p 貸款和其他起源收入下降 9% 的情況。我認為其中大部分是卡片。那麼定價對這條線有正面的貢獻嗎？如果是這樣，僅根據迄今為止報告的局，信用卡數量似乎並沒有下降那麼多，但我很想[了解您的想法]...

It's a little apples and oranges. So this is just the originations piece. I mean our card in total is not down that much because we have a lot of the [prescreen and] account management. So the scores are not down that -- this is just the origination subset of that. There's very low pricing in it. So it's probably when you take all that into consideration, I think it's hard to compare our numbers actually across the board of what the bureau has put out.

這是一些小蘋果和橘子。所以這只是起源部分。我的意思是我們的卡片總數並沒有下降那麼多，因為我們有很多[預先篩選和]帳戶管理。所以分數並沒有下降——這只是其中的起源子集。裡面的定價非常低。因此，當你考慮到所有這些因素時，我認為很難將我們的數字與該局公佈的數字進行全面比較。

But things like card, every bureau has a different subset of banks -- subset of what we have. So there could be a lot of different things happening at different banks. So this is just on the originations piece.

但是像卡這樣的東西，每個局都有不同的銀行子集——我們擁有的子集。因此，不同的銀行可能會發生很多不同的事情。所以這只是起源部分。

Okay. And then at FICO World, you talked a bit about -- I forget the exact word, I think it's enterprise platform clients. But maybe talk through like how many of your platform clients have a single use case. And then of those, how many of them just signed on within the last year and kind of like what the typical path forward is for them broadening out their use case expansion and how long it typically takes?

好的。然後在 FICO World，你談到了一些東西——我忘記了確切的詞，我認為是企業平台客戶。但也許可以談談您的平台用戶端有多少有一個用例。然後，其中有多少人在去年剛剛簽約，以及他們擴大用例擴展的典型前進道路是什麼以及通常需要多長時間？

So depending on how you count it, we're in about 130 of the top 300 financial institutions globally. And of that, I'd say, 40% or so are on their first use case, maybe a little bit more than that.

因此，根據您的統計方式，全球 300 大金融機構中約有 130 家屬於我們。我想說，其中 40% 左右是他們的第一個用例，也許比這個多一點。

And how many of those like just landed with you in the last year? And if you can just kind of like talk about the expansion path.

去年有多少這樣的人剛剛和你在一起？如果您可以談談擴張路徑。

I would say most of them have landed in the last year. I mean there's -- the very typical path for the single use case is to eventually move to multiple use cases. And so the ones that are still on one are typically the most recent.

我想說他們中的大多數是在去年登陸的。我的意思是——單一用例的典型路徑是最終轉移到多個用例。因此，仍在其中的通常是最新的。

(Operator Instructions) Our next question comes from George Tong with Goldman Sachs.

（操作員說明）我們的下一個問題來自高盛的 George Tong。

In Scores, you're catching up from 30 years of frozen pricing to close the gap with what you charge. You're closing the gap more quickly with mortgage than with cards and autos currently. To what extent can pricing in autos and cards close the gap at the same pace as the mortgages over time? What are some of the considerations?

在 Scores 中，您將擺脫 30 年的凍結定價，縮小與您的收費之間的差距。目前，透過抵押貸款比透過銀行卡和汽車可以更快地縮小差距。隨著時間的推移，汽車和信用卡的定價能在多大程度上以與抵押貸款相同的速度縮小差距？有哪些考慮因素？

Well, as we've talked about in the past, we take the entire portfolio of Scores every year, and we evaluate it from top to bottom, thinking through what is the elasticity of demand for that particular kind of a score and where should the Scores prices move by CPI and not more than that and where should they move more than that. And so you're going to see variation in the portfolio always. I would never expect for us to raise prices the same amount across all scores. So yes, you could continue to expect them to be different.

嗯，正如我們過去談到的，我們每年都會獲取整個分數組合，並從上到下對其進行評估，思考該特定分數的需求彈性是多少，以及應該在哪裡進行評估根據消費者物價指數(CPI ) 對價格變動進行評分，但不得超過此值，以及價格變動應在何處超過此值。所以你總是會看到投資組合的變化。我絕不會期望我們在所有分數上都提高相同的價格。所以是的，你可以繼續期待它們會有所不同。

Okay. Got it. That's helpful. And then with respect to the Software business, you saw 32% platform ARR growth in the quarter from both land and expand. Can you break that down? How much of that growth is coming from new business wins versus wallet penetration from existing customers?

好的。知道了。這很有幫助。然後就軟體業務而言，本季平台 ARR 成長了 32%，無論是落地還是擴張。能分解一下嗎？這種成長有多少來自於新業務的贏得與現有客戶的錢包滲透率？

Yes, it's hard to do that, George. I mean you can kind of back into it a little bit by looking at the ARR versus the NRR, but we don't have the detail to talk about use cases versus usage.

是的，喬治，這很難做到。我的意思是，您可以透過查看 ARR 與 NRR 來稍微回顧一下，但我們沒有詳細討論用例與使用情況。

I guess maybe then qualitatively, would you say you're more in land mode or expand mode?

我想也許從定性上來說，你會說你更多的是陸地模式還是擴展模式？

Well, I mean, it's -- I mean we're trying to get as much business as we can land in. But a lot of -- it's a lot easier to expand. Once it's in, they find their own use cases a lot of times. So a lot of our growth is coming from expansion because a lot of the initial use cases are really small. They're coming in at a very small amount, and they're expanding off of that.

嗯，我的意思是，我們正在努力獲得盡可能多的業務。一旦進入，他們就會多次找到自己的用例。因此，我們的大部分成長來自擴展，因為許多初始用例非常小。他們的進來量很小，但他們正在以此為基礎進行擴張。

And you're on the right question. I think whether it's today or next quarter or the quarter after that, expand will exceed land sooner or later. That's inevitable, that's anticipated, that's coming. I don't think we're quite at the tipping point yet. I think land probably still exceeds expand, but I'm not sure.

你問的是正確的問題。我認為無論是今天還是下個季度或之後的季度，擴張遲早會超過土地。這是不可避免的，這是預料之中的，這是即將到來的。我認為我們還沒有達到轉折點。我認為土地可能仍然超過擴張，但我不確定。

Thank you. I'm showing no further questions at this time. I would now like to turn it back to Dave Singleton for closing remarks.

謝謝。我目前沒有提出任何進一步的問題。現在我想請戴夫辛格頓（Dave Singleton）發表結束語。

Did you want to check just one more time? Simon might be in the queue for a question, and he just popped in, in the last 5 seconds.

您想再檢查一次嗎？ Simon 可能正在排隊提問，但他在最後 5 秒突然插了進來。

We do have a question from Simon Clinch with Redburn Atlantic.

我們確實收到了 Redburn Atlantic 的西蒙·克林奇 (Simon Clinch) 提出的問題。

I wanted to ask a couple of questions. So first of all, on the Software side, how should I think about the longer-term sustainable retention rates for both platform and nonplatform?

我想問幾個問題。首先，在軟體方面，我應該如何考慮平台和非平台的長期可持續保留率？

Yes. So the net retention rate on the nonplatform is probably going to dip below 100% at some point. These are legacy products that at some point are going to shift over to the platform. So that's been running probably just slightly above 100% and will probably be there for a while, but it could dip below 100% at some point.

是的。因此，非平台的淨留存率可能會在某個時候降至 100% 以下。這些是遺留產品，在某個時候將轉移到該平台。因此，該比率可能僅略高於 100%，並且可能會持續一段時間，但在某個時候可能會降至 100% 以下。

The net retention rate on the platform, it's been very strong as long as we've been reporting it. So it can vary, obviously, quarter-to-quarter, and there's no real trend to it. You've seen some quarters, it's been as low as in the hundred and teens and some quarters, it's been as high as 140-plus. But we do see continually that all the customers on the platform, almost without fail, use more the following year than they used the previous year. So there's still a lot of room to expand on that, and we think that's going to last for quite a while.

自我們報告以來，該平台的淨留存率就一直非常強勁。因此，顯然，每個季度的情況都會有所不同，而且沒有真正的趨勢。你見過一些季度，它低至 110 多，有些季度，它高達 140 多。但我們確實不斷地看到，該平台上的所有客戶幾乎毫無例外地在下一年的使用量超過了前一年的使用量。因此，這方面仍有很大的擴展空間，我們認為這種情況將持續相當長的一段時間。

Okay. Great. And just as a follow-up then. I mean you've managed to grow this business pretty rapidly with minimal sort of expense growth recently. I'm just thinking, when we're thinking out over the next decade, what are the kind of key investment areas you're looking at? And how do we extrapolate that to thinking about the durable expense growth in this business?

好的。偉大的。然後就作為後續行動。我的意思是，您最近成功地以最小的費用增長快速地發展了這項業務。我只是在想，當我們考慮未來十年時，您正在關注哪些關鍵投資領域？我們如何推斷該業務的持久費用成長？

The kind of the key expense, I would say growth. I would -- growth is probably the wrong word. I think we're happy with kind of the expense rates that we have. And if anything, they'll go down over time. But the places where we're spending that money from an R&D standpoint are on the product, on the ecosystem and the marketplace and that side of the house.

我想說的是關鍵支出的成長。我想——「增長」這個詞可能是錯的。我認為我們對我們的費用率感到滿意。如果有的話，它們會隨著時間的推移而下降。但從研發的角度來看，我們把錢花在產品、生態系統、市場和房子的那一邊。

And then I think we also have to think a lot about broadening our distribution because as you know, we have very limited direct distribution, and we have a reasonably nascent indirect partner distribution channel. So there will be more investment on both direct and indirect sales in coming years.

然後我認為我們還必須認真考慮擴大我們的分銷管道，因為如您所知，我們的直接分銷管道非常有限，而且我們有一個相當新興的間接合作夥伴分銷管道。因此，未來幾年將會對直接和間接銷售進行更多投資。

Thank you. And I'm showing no further questions at this time. I'll now turn it back to Dave Singleton for closing.

謝謝。目前我不會再提出任何問題。現在我將把它轉回戴夫辛格爾頓以結束。

Thank you. Thanks, everyone, for the great questions, and we had another great quarter. That's about all I need to say. Thank you.

謝謝。謝謝大家提出的好問題，我們又度過了一個美好的季度。我要說的就是這些。謝謝。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。