Fair Isaac Corp (FICO) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by.

女士們先生們，美好的一天，謝謝你們的支持。

Welcome to the third quarter 2024 FICO earnings conference call.

歡迎參加 2024 年第三季 FICO 收益電話會議。

(Operator Instructions) We advise that today's conference is being recorded.

（操作員指示）我們建議今天的會議正在錄製。

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

我現在想把會議交給今天的發言人戴夫辛格頓。

Good afternoon and thank you for attending FICO's third quarter earnings call.

下午好，感謝您參加 FICO 第三季財報電話會議。

I'm Dave Singleton, Vice President of Investor Relations and I'm joined today by our CEO, Will Lansing; and our CFO, Steve Weber.

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.

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。

And on this call.

在這次通話中。

Management will also discuss results in comparison with the prior quarter to facilitate an understanding of the run rate of the business.

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.

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。

Those statements involve many risks and uncertainties that could cause actual results to differ materially.

這些陳述涉及許多風險和不確定性，可能導致實際結果出現重大差異。

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 portions of such filings.

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。

Copies are available from the SEC from the FICO website or from our Investor Relations team.

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.

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。

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.

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。

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 July 31, 2025.

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 7 月 31 日。

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

現在，我將把電話轉給我們的執行長威爾·蘭辛 (Will Lansing)。

Thanks, Dave, and thank you, everyone, for joining us for our third quarter earnings call.

謝謝戴夫，也謝謝大家參加我們第三季的財報電話會議。

In the Investor Relations section of our website, we've posted some financial highlights slides that we'll be referencing during our presentation today.

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。

I'll talk about this quarter's results and our increased guidance for the full fiscal year.

我將討論本季的業績以及我們對整個財年增加的指導。

We continue to deliver strong quarterly results, including impressive growth in our ACV bookings and free cash flow.

我們繼續交付強勁的季度業績，包括 ACV 預訂量和自由現金流的令人印象深刻的成長。

As shown on page 2 of the third quarter financial highlights, we reported Q3 revenues of $448 million, up 12% over the last year.

如第三季財務摘要第 2 頁所示，我們報告第三季營收為 4.48 億美元，比去年成長 12%。

We delivered $126 million of GAAP net income in the quarter, down 2% and GAAP earnings of $5.5 per share, down 1% from the prior year.

本季我們實現 GAAP 淨利 1.26 億美元，年減 2%，GAAP 每股收益 5.5 美元，年減 1%。

On a non-GAAP basis, Q3 net income was $156 million, with earnings of $6.25 per share, up 9% and 10%, respectively.

以非公認會計準則計算，第三季淨利為 1.56 億美元，每股收益為 6.25 美元，分別成長 9% 和 10%。

We had a difficult comp in year-over-year net income as Q3 of 2023 included an $8.5 million one-time reimbursement of third party data implementation costs as well as a $9.5 million reduction to income tax expense associated with the valuation of R&D credits.

我們的年比淨利潤比較困難，因為 2023 年第三季包括一次性償還第三方資料實施成本的 850 萬美元，以及與研發積分估值相關的所得稅費用減少 950 萬美元。

We delivered record free cash flow of $206 million in our third quarter and $551 million over the last four quarters.

我們第三季的自由現金流達到創紀錄的 2.06 億美元，過去四個季度的自由現金流為 5.51 億美元。

We continue to return capital to our shareholders through buybacks.

我們繼續透過回購向股東返還資本。

In Q3, we repurchased 196,000 shares at an average price of $1,293 per share.

第三季度，我們以每股 1,293 美元的平均價格回購了 196,000 股股票。

And we announced a new Board authorization for $1 billion of share repurchase.

我們還宣布了一項新的董事會授權，用於回購 10 億美元的股票。

In our scores segment, on page 6 of the presentation, our third quarter revenues were $241 million, up 20% versus the prior year.

在簡報第 6 頁的樂譜部分，我們第三季的營收為 2.41 億美元，比上年成長 20%。

Breaking that down in B2B, current quarter revenues were up 27% versus the prior year in B2C the current quarter revenues were down 2% versus the prior year.

在 B2B 領域，本季營收比上年成長 27%；在 B2C 領域，本季營收比上年下降 2%。

Third quarter mortgage originations revenues were up 80% versus the prior year.

第三季抵押貸款發放收入比去年同期成長 80%。

Mortgage origination revenue accounted for 49% of B2B revenue and 39% of total scores revenue.

抵押貸款發放收入佔 B2B 收入的 49%，佔總收入的 39%。

Auto originations revenues were down 3%, while credit card personal loan and other originations revenues were down 7% versus the prior year.

汽車發起收入年減 3%，信用卡個人貸款和其他發起收入較去年同期下降 7%。

We continued to drive strong adoption for FICO score 10T for non-GSE mortgages.

我們繼續推動非 GSE 抵押貸款大力採用 FICO 評分 10T。

Based on 2023 firm reported data clients with over $126 billion in annualized mortgage loan originations and about $380 billion in eligible Mortgage Portfolio Servicing have signed up for the FICO score 10T.

根據 2023 年公司報告的數據，年化抵押貸款發放量超過 1,260 億美元、合格抵押貸款投資組合服務約 3,800 億美元的客戶已簽署 FICO 評分 10T。

Firms are using FICO score 10T to make credit decisions, deliver to investors, and for securitization.

公司正在使用 FICO 評分 10T 來製定信貸決策、交付給投資者以及進行證券化。

FICO score 10T for conforming mortgages will be rolled out based on the time line of the FHFA's implementation of enterprise credit score requirements.

符合抵押貸款的 FICO 評分 10T 將根據 FHFA 實施企業信用評分要求的時間軸推出。

In our software segment, we delivered $206 million in Q2 revenue, up 5% from last year, driven mainly by growth in SaaS software, partially offset by decline in professional services.

在我們的軟體部門，我們第二季度的收入為 2.06 億美元，比去年增長 5%，這主要是由 SaaS 軟體的成長推動的，但部分被專業服務的下降所抵消。

We continue to drive strong growth in ARR and NRR for our land and expand strategy with expand, driven by increased customer usage, as shown on page 7, total ARR was up 10% with platform ARR growing 31% and non-platform ARR growing 3%.

在客戶使用量增加的推動下，我們繼續推動我們土地的ARR 和NRR 強勁成長，並透過擴張策略進行擴張，如第7 頁所示，總ARR 成長了10%，其中平台ARR 成長了31%，非平台ARR 成長了 3 %。

Total NRR for the quarter shown on page 8 was 108% with platform NRR at 124% and non-platform NRR at 101%.

第 8 頁顯示的季度總 NRR 為 108%，其中平台 NRR 為 124%，非平台 NRR 為 101%。

Our total ACV bookings for the quarter were an impressive $27.5 million.

本季我們的 ACV 預訂總額高達 2,750 萬美元，令人印象深刻。

We continue to drive more FICO platform SaaS bookings, which aligns with our strategy.

我們將繼續推動更多 FICO 平台 SaaS 預訂，這符合我們的策略。

We expect this trend to continue as our recent FICO World event has been a catalyst for driving pipeline growth, especially for the FICO platform.

我們預計這一趨勢將持續下去，因為我們最近的 FICO World 活動已成為推動管道成長的催化劑，特別是對於 FICO 平台而言。

And very proud of the strength of our software business, both the industry-leading technology as well as our remarkable team.

我們對我們軟體業務的實力感到非常自豪，包括業界領先的技術以及我們卓越的團隊。

This quarter, we secured another award for our FICO platform, the business intelligence platform in the year from data breakthrough.

本季度，我們的FICO平台又獲得了年度商業智慧平台數據突破獎。

In July, Nikhil Behl was promoted to EVP for software leading all technology and go-to-market functions.

7 月，Nikhil Behl 晉升為軟體執行副總裁，負責領導所有技術和上市功能。

Nikhil has been instrumental in strengthening our brand value reputation with customers and regulators, strategic competitive positioning for FICO scores and FICO platform and market-leading business growth.

Nikhil 在加強我們在客戶和監管機構中的品牌價值聲譽、FICO 評分和 FICO 平台的策略競爭定位以及市場領先的業務成長方面發揮了重要作用。

We continue to excel in our scores business as well.

我們在樂譜業務上也繼續表現出色。

Our team is focused on innovation to provide new ways to add value for our customers.

我們的團隊專注於創新，為客戶提供增加價值的新方法。

FICO scores a tool that market participants rely on to make many crucial decisions, including pre-call, underwriting, pricing, ensuring, securitizing, rating selling, assessing capital requirements, assessing prepayment risk, and determining collection strategies.

FICO評分是市場參與者做出許多關鍵決策所依賴的工具，包括預贖回、承銷、定價、擔保、證券化、評級銷售、評估資本要求、評估提前還款風險和確定收款策略。

The FICO score has long been freely chosen because it's trusted as the most predictive and reliable independent credit score, enabling lenders to fairly expand credit access to more consumers.

FICO評分長期以來一直被自由選擇，因為它被認為是最具預測性和最可靠的獨立信用評分，使貸方能夠公平地向更多消費者提供信貸。

The FICO score was widely adopted because it democratized and expanded access to credit while simultaneously underpinning the safety and soundness of the market.

FICO 評分之所以被廣泛採用，是因為它民主化並擴大了信貸獲取管道，同時支撐了市場的安全性和穩健性。

It's worth pointing out that over half of mortgage market not -- is non-conforming and also overwhelmingly uses FICO scores.

值得指出的是，超過一半的抵押貸款市場不符合標準，並且絕大多數使用 FICO 分數。

And FICO scores provided will continue to provide tremendous value to the credit ecosystem.

所提供的FICO分數將繼續為信用生態系統提供巨大的價值。

As part of our ongoing commitment to industry-leading credit decision, we've made significant commitments to financial knowledge and financial inclusion.

作為我們對行業領先信貸決策的持續承諾的一部分，我們對金融知識和金融普惠做出了重大承諾。

We've once again partnered with Chelsea football club, both men's and women's teams and US soccer foundation for the fields of financial empowerment summer tour.

我們再次與切爾西足球俱樂部、男女球隊以及美國足球基金會合作，開展金融賦權夏季巡迴賽。

The goal is to build excitement for an access to financial education and resources to help more people, including the next generation of fans make more informed credit decisions.

目標是激發人們獲得金融教育和資源的興趣，以幫助更多人（包括下一代粉絲）做出更明智的信貸決策。

As part of the campaign, FICO host free score a better future fundamentals, financial education workshops for students from traditionally underserved communities.

作為活動的一部分，FICO 為來自傳統服務水平低下社區的學生舉辦免費評分「更好的未來基礎知識」金融教育研討會。

Students improve financial literacy and have the opportunity to attend to Chelsea football game.

學生提高金融知識，並有機會觀看切爾西足球比賽。

I'll talk about our outlook for the balance of the year, including our increased guidance after Steve provides further financial details.

我將討論我們對今年剩餘時間的展望，包括在史蒂夫提供進一步的財務細節後我們增加的指導。

Thanks, Will and good afternoon, everyone.

謝謝威爾，大家下午好。

As Will mentioned, we had another good quarter with total revenues of $448 million, an increase of 12% over the prior year.

正如威爾所提到的，我們又度過了一個不錯的季度，總收入達到 4.48 億美元，比上年增長 12%。

Scores segment revenues for the quarter were $241 million, up 20% from Q3 of 2023.

Scores 部門本季營收為 2.41 億美元，較 2023 年第三季成長 20%。

B2B revenues were up 27%, driven primarily by mortgage origination revenues.

B2B 收入成長了 27%，這主要是由抵押貸款發放收入推動的。

Our B2C revenues were down 2% versus the prior year due to volume declines in our myfico.com business.

由於 myfico.com 業務量下降，我們的 B2C 收入比上年下降了 2%。

Software segment revenues in the third quarter were $206 million, up 5% versus Q3 2023.

第三季軟體部門營收為 2.06 億美元，較 2023 年第三季成長 5%。

On-prem and SaaS software revenue grew 7% year over year, while professional services declined 9%.

本地和 SaaS 軟體收入較去年同期成長 7%，而專業服務則下降 9%。

This quarter, 85% of total Company revenues were derived from our Americas region, which is a combination of North America and Latin American regions.

本季度，該公司總收入的 85% 來自美洲地區，該地區是北美和拉丁美洲地區的組合。

Our EMEA region generated 10% of revenues and the Asia Pacific region generated 5%.

我們的 EMEA 地區佔收入的 10%，亞太地區佔 5%。

Our total software ARR was $710 million, a 10% increase over the prior year.

我們的軟體 ARR 總額為 7.1 億美元，比上年增長 10%。

Platform ARR was $215 million, representing 30% of our total Q3 '24 ARR, up from 25% of total in Q3 of 2023.

平台 ARR 為 2.15 億美元，佔 24 年第三季 ARR 總額的 30%，高於 2023 年第三季的 25%。

Platform ARR grew 31% versus the prior year, while non-platform ARR grew 3% to $495 million this quarter.

本季平台 ARR 較上年成長 31%，而非平台 ARR 成長 3%，達到 4.95 億美元。

Our platform land and expand strategy continues to be successful.

我們的平台落地和擴張策略持續取得成功。

Our dollar-based net retention rate in the quarter was 108%.

本季以美元計算的淨保留率為 108%。

Platform NRR was 124%, while our non-platform NRR was 101%.

平台 NRR 為 124%，而非平台 NRR 為 101%。

Platform NRR was driven by a combination of new use cases and increase usage.

平台 NRR 是由新用例和使用量增加共同推動的。

Our software ACV bookings for the quarter were $27.5 million.

本季我們的軟體 ACV 預訂金額為 2,750 萬美元。

As a reminder, ACV bookings include only the annual value of software sales and exclude professional service.

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。

Our expenses for the quarter -- total operating expenses were $258 million this quarter versus $222 million in the prior year, an increase of 16% year over year and 8% versus the prior quarter.

我們本季的支出－本季總營運支出為 2.58 億美元，而上年同期為 2.22 億美元，年增 16%，比上一季成長 8%。

Our third quarter included our FICO World event and a true up for our annual incentive rewards, and we expect Q4 expenses to be down modestly from our Q3 run rate.

我們的第三季包括 FICO World 活動和年度激勵獎勵的真正提升，我們預計第四季的支出將比第三季的運行率小幅下降。

As Will noted, the prior year includes an $8.5 million, one-time reimbursement of third-party data implementation costs and a reduction to income tax expense of $9.5 million associated with the valuation of our R&D tax credits.

正如 Will 指出的，上一年包括一次性償還第三方數據實施成本的 850 萬美元，以及與研發稅收抵免估值相關的所得稅費用減少 950 萬美元。

Our non-GAAP operating margin, as shown in our Reg G schedule, was 52% for the quarter compared with 51% in 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 52%，而去年同期為 51%。

GAAP net income this quarter was $126 million, down 2% from the prior year's quarter.

本季 GAAP 淨利為 1.26 億美元，較上年同期下降 2%。

Our non-GAAP net income was $156 million for the quarter, up 9% from the prior year's quarter.

我們本季的非 GAAP 淨利潤為 1.56 億美元，比去年同期成長 9%。

The effective tax rate for the quarter was 24.5%.

該季度的有效稅率為24.5%。

We believe that our fiscal year 2024 net effective tax rate is expected to be around 22%, well our recurring tax rate is expected to be around 26%.

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。

Recurring tax rate is before any excess tax benefit and other discrete items.

經常性稅率是在任何超額稅收優惠和其他離散項目之前的稅率。

Free cash flow for the quarter was $206 million, a 69% increase from the previous year.

該季度自由現金流為 2.06 億美元，較上年增長 69%。

The trailing 12 month, free cash flow was $551 million compared to $467 million in the prior quarter.

過去 12 個月的自由現金流為 5.51 億美元，上一季為 4.67 億美元。

At the end of the quarter, we had $199 million in cash and marketable investments.

截至本季末，我們擁有 1.99 億美元的現金和適銷投資。

Our total debt at quarter end was $2.13 billion with a weighted average interest rate of 5.3%.

截至季末，我們的總負債為 21.3 億美元，加權平均利率為 5.3%。

Currently, 61% of our total debt is fixed rate.

目前，我們總債務的 61% 是固定利率。

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.

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。

During the quarter, we secured a $450 million term loan and used those proceeds to reduce our revolving line of credit and to provide additional debt capacity.

本季度，我們獲得了 4.5 億美元的定期貸款，並使用這些收益來減少我們的循環信貸額度並提供額外的債務能力。

Turning to return of capital, we bought back 196,000 shares in the third quarter at an average price of $1,293 per share.

談到資本回報，我們在第三季以每股 1,293 美元的平均價格回購了 196,000 股。

That exhausted the existing Board authorization, which was approved in January.

這用盡了董事會在一月批准的現有授權。

And we have just announced a new Board authorization for $1 billion.

我們剛剛宣布了 10 億美元的新董事會授權。

We continue to view share repurchases as an attractive use of cash.

我們仍然認為股票回購是一種有吸引力的現金用途。

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

說到這裡，我將把它轉回威爾，詢問他對今年剩餘時間以及我們全年指導成長的想法。

Thanks, Steve.

謝謝，史蒂夫。

We are executing on our strategy.

我們正在執行我們的戰略。

Our customers are delighted with our innovative products.

我們的客戶對我們的創新產品感到滿意。

Our execution is generating strong financial results, including impressive ACV bookings, record free cash flow, and an increase in FICO platform and FICO 10T adoption.

我們的執行正在產生強勁的財務業績，包括令人印象深刻的 ACV 預訂、創紀錄的自由現金流以及 FICO 平台和 FICO 10T 採用率的增加。

The business is strong.

生意很強勁。

I'm pleased to report that today we're again raising our full-year guidance as we enter the fourth quarter of our fiscal year.

我很高興地向大家報告，今天，隨著我們進入財年第四季度，我們再次提高了全年指引。

We're raising our full year revenue guidance to $1.70 billion. GAAP

我們將全年收入指引上調至 17 億美元。公認會計原則

net income is now expected to be $500 million with GAAP earnings per share of $19.90. Non-GAAP net income is now expected to be $582 million with non-GAAP earnings per share of $23.16.

目前預計淨利潤為 5 億美元，GAAP 每股收益為 19.90 美元。目前預計非 GAAP 淨利潤為 5.82 億美元，非 GAAP 每股收益為 23.16 美元。

With that, I'll turn it back to Dave and we'll open up the Q&A session.

這樣，我會將其轉回給戴夫，我們將開始問答環節。

Thanks, Will.

謝謝，威爾。

This concludes our prepared remarks, and we're now ready to take questions.

我們準備好的發言到此結束，現在我們準備好回答問題。

Operator, please open the lines.

接線員，請開通線路。

(Operator Instructions) Faiza Alwy, Deutsche Bank.

（操作員指示）Faiza Alwy，德意志銀行。

So I wanted to start with the software business and just ask you if you could comment on the selling environment or if there's any change from a macro perspective, anything new or different you're hearing from your customers?

所以我想從軟體業務開始，問您是否可以對銷售環境發表評論，或者從宏觀角度來看是否有任何變化，您從客戶那裡聽到了什麼新的或不同的消息？

And then I know at FICO World, we had talked about improvement of the platform and talking about decomposition of the platform.

然後我知道在FICO World，我們討論了平台的改進和平台的分解。

So just give us a sense of if there's any update there and any additional color?

那麼請讓我們了解一下是否有任何更新以及任何其他顏色？

FICO World is always and was this year, the biggest pipeline generating event that we have.

FICO World 一直以來都是我們最大的管道生成活動，今年也是如此。

And so we came FICO World with a very healthy pipeline.

因此，我們帶著非常健康的管道來到了 FICO World。

.

。

I would say that the selling environment has not changed that much over the last year or so.

我想說，在過去一年左右的時間裡，銷售環境沒有太大變化。

And I would also emphasize that increasingly, customers are buying FICO software as a strategic move.

我還要強調的是，越來越多的客戶將購買 FICO 軟體作為一項策略性舉措。

And so it's a very considered purchase.

所以這是一次經過深思熟慮的購買。

And it's -- not just like going out and finding a point solution to a small problem, to a specific problem.

這不僅僅是出去尋找一個小問題、一個具體問題的點解決方案。

It's a bigger thing than that.

這是比那更重要的事。

And that hasn't changed.

這一點沒有改變。

That's kind of the new way of operating.

這是一種新的營運方式。

And then just a quick question on mortgage revenues, you obviously had very strong growth in the quarter.

然後是關於抵押貸款收入的一個簡單問題，顯然本季成長非常強勁。

I'm curious how volume trended in the quarter.

我很好奇本季的交易量趨勢如何。

I know you don't give a breakdown, but was it in line with your expectations?

我知道你沒有給出詳細信息，但這符合你的預期嗎？

Are there any dynamics you're seeing around soft fold where I believe lenders have the option to go to one or two bureaus like that?

您是否在軟折疊方面看到了任何動態，我認為貸方可以選擇去一兩個這樣的機構？

Are you seeing an impact on volumes from that and just the general environment

您是否看到了這對交易量以及整體環境的影響

--

--

Our mortgage volumes are a lagging indicator relative to other mortgage data that you have.

相對於您擁有的其他抵押貸款數據，我們的抵押貸款數量是一個滯後指標。

Our mortgage volumes are down versus a year ago, they're pretty much flat versus a quarter -- last quarter.

我們的抵押貸款數量與一年前相比有所下降，與上個季度的四分之一相比幾乎持平。

And then none of that is particularly surprising.

所有這些都不足為奇。

(Operator Instructions) Surinder Thind, Jefferies.

（操作員說明）Surinder Thind，Jefferies。

First question on just the guidance raise, it implies revenues are going to be down roughly $10 million quarter over quarter.

第一個問題是關於指導性上調，這意味著收入將環比下降約 1000 萬美元。

Just any color there?

那裡有什麼顏色嗎？

I know you normally are conservative in the guide, but just can you do the walk for us from 3Q to fiscal

我知道您通常在指南中持保守態度，但您能否為我們介紹從第三季度到財政年度的情況

--

--

Yeah.

是的。

So we are pretty conservative with the way we guide.

所以我們的指導方式相當保守。

So we want to make sure that a lot of the -- on the scores, we don't have much control over, right?

所以我們想確保很多——在分數上，我們沒有太多的控制權，對吧？

So we don't really know what's going to happen there.

所以我們真的不知道那裡會發生什麼事。

I would say that generally, the fourth quarter is a little lighter seasonally for mortgage.

我想說的是，總的來說，第四季抵押貸款的季節性稍微清淡一些。

Mortgage volumes aren't as high, typically then as they are in the spring.

抵押貸款數量通常不像春季那麼高。

So there might be some -- a little bit of volume decline there, but a lot of it just spends in the environment, which we don't have a lot of visibility to.

因此，可能會有一些——數量略有下降，但其中許多只是花費在我們沒有太多可見性的環境中。

And then in terms of just when I think about the non-platform business here.

然後，當我想到這裡的非平台業務時。

The NRR was 101%.

NRR 為 101%。

That's the slowest pace of growth in about two years.

這是大約兩年來最慢的成長速度。

So any color there that you can help with there.

所以任何你可以幫忙的顏色。

Is there some movement of revenues from non-platform to platform at this point?

目前是否有一些收入從非平台轉移到平台？

How should we think about that?

我們該如何思考這個問題？

I wouldn't say that it's cannibalization if that's what your question is getting at.

如果這就是你的問題要解決的問題，我不會說這是同類相食。

We're pretty pleased with our classic offerings with a 101% NRR.

我們對我們的經典產品非常滿意，NRR 為 101%。

We've been trying to manage that business in this relatively flat way, and we're pleased that it's turning out that way.

我們一直在嘗試以這種相對扁平的方式管理該業務，我們很高興結果是如此。

But as you can see, the growth is on the expand side on the platform.

但正如您所看到的，成長是在平台的擴展方面。

If we don't -- we let the market tell us what it wants, but we're not displeased with the way it's shaking out.

如果我們不這樣做，我們就讓市場告訴我們它想要什麼，但我們不會對它的變化方式感到不滿。

Yeah.

是的。

I would say I mean, we had higher numbers last year.

我想說的是，去年我們的數字更高。

And at the time we said there were some things driving that.

當時我們說有一些因素推動了這一點。

Some of it was -- some of the CPI increase that we had.

其中一些是－我們的消費者物價指數(CPI)上漲。

And we had some advantages last year from some FX as well.

去年我們也從一些外匯中獲得了一些優勢。

And we knew that we're not going to maintain this year.

我們知道今年我們不會維持。

So it's kind of what we thought was going to happen, it would settle more to around 100%.

所以這就是我們認為會發生的事情，它會穩定在 100% 左右。

(Operator Instructions) Scott Wurtzel, Wolfe Research.

（操作員說明）Scott Wurtzel，Wolfe Research。

I wanted to start on the auto origination side.

我想從自動發起方面開始。

Revenues down 3% versus modestly up last quarter.

與上季小幅成長相比，營收下降了 3%。

Just wondering similar to how you did a mortgage, maybe comment on the volumes there and how they trended versus last quarter?

只是想知道類似於您如何辦理抵押貸款，也許評論一下那裡的數量以及與上季度相比的趨勢如何？

Yeah, volumes were relatively flat, but the really is a mix shift.

是的，銷量相對平穩，但實際上是一個混合轉變。

So we had more of a mix shift to -- more market share in the tiers that are a little bit less price for us.

因此，我們進行了更多的混合轉型——在價格稍低的層面上獲得更多市場份額。

Unit cost is a little bit lower.

單位成本稍微低一些。

So that's really the difference between the volume and the revenue.

這確實是銷量和收入之間的區別。

So the price per score went down slightly because of a mix shift.

因此，由於混合轉變，每分的價格略有下降。

Got it.

知道了。

That's helpful.

這很有幫助。

And then on the software side, on the platform ARR, I mean, I think it's pretty good to see the sort of rate of deceleration moderate from 2Q to 3Q at sort of this low-30s level.

然後在軟體方面，在 ARR 平台上，我認為看到從第二季到第三季的減速率在 30 左右的水平上是相當不錯的。

I mean, do you kind of see this as a sort of sustainable growth rate for platform ARR over the near to medium term here?

我的意思是，您是否認為這是平台 ARR 在中短期內的一種可持續成長率？

Probably, yeah.

可能是的。

I mean, we don't.

我的意思是，我們不這樣做。

We think we're pretty confident in that right around that rate.

我們認為我們對此速度非常有信心。

It can change as we go out further, but we think that's a sustainable rate.

隨著我們進一步發展，它可能會發生變化，但我們認為這是一個可持續的速度。

And we've got -- it helps when you have a good quarter like this in terms of signing new deals, too, because that will help boost the ARR in the future.

我們已經得到了——當你在簽署新協議方面有一個像這樣的好季度時，它也會有所幫助，因為這將有助於提高未來的 ARR。

So we don't have really good visibility to because a lot of it depends on how quickly our customers can get online and how much usage they have, but there's a lot of growth there.

因此，我們沒有很好的可見性，因為這在很大程度上取決於我們的客戶上網的速度以及他們的使用量，但那裡有很大的成長。

So we're pretty confident that we can maintain these levels.

因此，我們非常有信心能夠維持這些水準。

(Operator Instructions) Kyle Peterson, Needham.

（操作員說明）Kyle Peterson，Needham。

Just wanted to start out on software, the bookings looked pretty nice on ACV basis, I could a lot of the prior quarters.

只是想從軟體開始，在 ACV 的基礎上，預訂看起來相當不錯，我可以在前幾個季度進行大量預訂。

So how should we think about some of the implementation cycles and kind of when some of those bookings will start to translate to revenue here?

那麼，我們應該如何考慮一些實施週期以及其中一些預訂何時開始轉化為收入？

Well, it's -- as you know, it's a long sales cycle as long as 400 days, and it takes not that long to get live once it's all said and done.

嗯，正如你所知，這是一個長達 400 天的漫長銷售週期，而且一旦全部說完並完成後，不需要那麼長的時間就可以上線。

But I think that the flow-through is the subsequent year.

但我認為流通是在隨後的一年。

I mean that's the easiest way to think about it.

我的意思是說這是最簡單的思考方式。

Yeah.

是的。

And it does depend on the customer, how sophisticated they are, how ready they are.

這確實取決於客戶、他們的成熟程度以及他們的準備程度。

But yeah, I mean, if you sign deals now in the next six to nine months, you should start seeing a flow-through on that.

但是，是的，我的意思是，如果你現在在接下來的六到九個月內簽署交易，你應該開始看到這一點的進展。

And then just a follow up on -- particularly on if we do get rate cuts, whether it's later this year or next year.

然後是後續行動——特別是我們是否確實降息，無論是在今年晚些時候還是明年。

Maybe if you could walk us through some of the different sensitivities?

也許您可以引導我們了解一些不同的敏感度？

I know your business now looks quite a bit different maybe compared to past cycles.

我知道您的業務現在看起來與過去的週期相比可能有很大不同。

So especially in those first one to two rate cuts, what are some of the impacts that we should be mindful of if those do come to fruition?

因此，特別是在最初的一到兩次降息中，如果這些降息確實實現，我們應該注意哪些影響？

We're already seeing a little bit of an uptick in refi and it's not exactly a gigantic leap of faith that as rates come down, we'll see volumes go up, we fully anticipate that.

我們已經看到再融資有所上升，這並不是一個巨大的信念飛躍，隨著利率下降，我們會看到交易量上升，我們完全預料到了這一點。

Your guess is as good as ours as to the timing of the rate cuts.

對於降息時機，您的猜測與我們的猜測一樣準確。

We would hope to see some rate cuts towards the end of this year and next year and volumes go up with that.

我們希望在今年年底和明年看到一些降息，並且交易量隨之增加。

(Operator Instructions) George Tong, Goldman Sachs.

（操作員指令）George Tong，高盛。

Within the Scores business, card, and personal loan revenue fell 7% in the quarter, which is a little bit better than the 9% decline in the prior quarter.

在分數業務中，卡片和個人貸款收入本季下降了 7%，略好於上一季 9% 的降幅。

Can you talk about some of the trends you're seeing among subprime or lower to consumers that may be impacting card and personal loan performance and also talk about overall bank lending conditions?

您能否談談您在次級或更低級別的消費者中看到的可能影響銀行卡和個人貸款績效的一些趨勢，並談談整體銀行貸款狀況？

Yeah.

是的。

I mean, the subprime markets always pull obviously seen the biggest pullback, which is not surprising, right?

我的意思是，次貸市場總是出現明顯的最大回調，這並不奇怪，對吧？

You're late in the credit cycle, you have a lot more uncertainty, and that's kind of where you see that happened first.

你處於信貸週期的後期，你有更多的不確定性，這就是你首先看到這種情況發生的地方。

Bank by bank, it kind of varies depending on what they're looking at and what kind of campaigns they might may or may not be running, but we see banks being relatively conservative with new originations.

每家銀行的情況都會有所不同，這取決於他們所關注的內容以及他們可能會或可能不會進行的活動類型，但我們看到銀行對新的發起相對保守。

And I think we're kind of waiting to see what happens and see what the economic environment looks like.

我認為我們正在等待，看看會發生什麼，看看經濟環境會是什麼樣子。

So it's really not surprising.

所以這真的不足為奇。

We saw probably a little over a year ago, strong growth there when mortgage started to the slowdown and then rates start to go up.

大約一年多前，我們看到了那裡的強勁增長，當時抵押貸款開始放緩，然後利率開始上升。

We saw strong growth there.

我們在那裡看到了強勁的成長。

But now I think there's just more uncertainty in the market and they're just kind of being more cautious in their originations.

但現在我認為市場存在著更多的不確定性，他們只是對自己的起源更加謹慎。

And then switching to the software side, software operating margins contracted about 430 bps year over year in the quarter.

然後轉向軟體方面，本季軟體營運利潤率年減約 430 個基點。

Can you talk about some of the reasons behind

您能談談背後的一些原因嗎

--

--

It's almost completely -- around that reimbursement we had last year.

這幾乎完全是我們去年的報銷金額。

So that was a big number we had, and that was all on the software side.

所以這是我們擁有的一個很大的數字，而這一切都在軟體方面。

So that's the driver of that.

這就是其驅動因素。

And so as that lapse, when would you expect to flip to margin expansion in the software business?

那麼，隨著這種情況的發生，您預計什麼時候會轉向軟體業務的利潤擴張？

So we'll get some margin expansion next quarter because, I mean, again, we had some costs at FICO World this quarter was not going to repeat next quarter.

因此，我們下個季度的利潤率將有所擴大，因為我的意思是，我們本季在 FICO World 的一些成本不會在下個季度重複。

So we'll have some -- our costs will decline next quarter, and that will end up with some margin expansion.

因此，我們的成本將在下個季度下降，最終導致利潤率擴大。

We -- these costs are big enough where any one given quarter, something like FICO is going to have an impact on that quarter's margin.

我們——這些成本足夠大，任何一個季度，像 FICO 這樣的事情都會對該季度的利潤產生影響。

Ashish Sabadra, RBC.

阿什什·薩巴德拉，加拿大皇家銀行。

Just on the software revenue growth, particularly the on-prem and SaaS.

就軟體收入成長而言，尤其是本地部署和 SaaS。

And within that, when I look at software recognized over the contract term, the growth there moderated?

其中，當我查看合約期間內認可的軟體時，那裡的成長放緩了嗎？

How should we think about the growth profile there?

我們該如何看待那裡的成長狀況？

Ashish, we can't hear you.

阿希什，我們聽不到你的聲音。

So I wanted to focus on the on-prem and SaaS software revenue growth.

因此，我想專注於本地和 SaaS 軟體收入的成長。

And within that, even the software recognized over contract term that moderated a bit, still pretty strong at 80%, but did moderate from mid-teens.

其中，即使軟體在合約期限內認可了一點，仍然相當強勁，達到 80%，但從十幾歲左右開始有所放緩。

How should we think about those puts and takes on the revenue growth going forward?

我們該如何看待這些賣權和承兌選擇權對未來營收成長的影響？

Yeah.

是的。

I mean a lot of that is the fact that we had the Omega growth the non-platform growth to what we saw last year.

我的意思是，很大程度上是因為我們去年看到了歐米茄成長和非平台成長。

So that right there drives most of the -- and obviously, the platform side is growing 50% either.

因此，這推動了大部分——顯然，平台方面也成長了 50%。

But so we think these kind of growth rates going forward, as I said earlier, that's probably more likely, but we're going to see it continue.

但我們認為，正如我之前所說，這種成長率的可能性更大，但我們將看到這種情況繼續下去。

And as the numbers get bigger, it's harder to drive 50% growth, 3% to 4% growth.

隨著數字越來越大，推動 50%、3% 到 4% 的成長變得更加困難。

So we're pretty happy with the 30% growth on the platform side and on the non-platform we think we can get better than 100%.

因此，我們對平台方面 30% 的成長感到非常滿意，而在非平台方面，我們認為我們可以取得超過 100% 的成長。

We're happy with that as well.

我們對此也很滿意。

(Operator Instructions) Simon Clinch, Redburn Atlantic.

（操作員說明）Simon Clinch，Redburn Atlantic。

I wanted to cycle back to the 30%-plus growth in the platform software ARR.

我想回到平台軟體 ARR 30% 以上的成長。

And just I was wondering if you could just get a little bit more detail as to why you think that that is a sustainable level of growth and just perhaps flesh that out a little bit more for us, please?

我只是想知道您是否可以更詳細地說明為什麼您認為這是可持續的增長水平，並為我們提供更多的信息，好嗎？

Well, I mean, we've got -- I mean, again, we had a really good quarter with new bookings, and we've got a lot of installed base that's rapidly expanding.

嗯，我的意思是，我們有 - 我的意思是，我們在新預訂方面度過了一個非常好的季度，並且我們有很多正在迅速擴大的安裝基礎。

I mean when we install most of our customers look for new ways to use it, and we see that in the net retention rate.

我的意思是，當我們安裝時，大多數客戶都會尋找新的使用方式，我們在淨保留率中看到了這一點。

And that's -- that number continues to be do well, and we continue to add more business to it.

那就是——這個數字繼續表現良好，我們繼續增加更多的業務。

So we can't guarantee it, but we've got a lot of reasons, both data-driven and anecdotally to think that we're going to continue to see that kind of growth.

所以我們不能保證這一點，但我們有很多理由，包括數據驅動的和傳聞中的，認為我們將繼續看到這種增長。

And just a follow-up on that.

這只是後續行動。

Could you -- I mean, just frame the approach to pricing within the software business.

我的意思是，您能否在軟體業務中製定定價方法。

You mentioned last year in the, I think it was the non-platform side, you had higher inflationary pricing.

你去年提到，我認為這是非平台方面，你的通膨定價更高。

But just wondering if you could talk a bit about the strategy around the pricing, pricing value, and how to think about that going forward?

但只是想知道您是否可以談談有關定價、定價價值的策略，以及如何思考未來的發展？

Our strategy around software pricing is great.

我們圍繞軟體定價的策略非常棒。

We're very focused right now on making our software accessible and encouraging adoption.

我們現在非常專注於讓我們的軟體易於使用並鼓勵採用。

And so while there's probably room for value pricing in our software business.

因此，儘管我們的軟體業務可能還有價值定價的空間。

That's not where our direction is.

那不是我們的方向。

Our direction is to put the software in the hands of our customers and then watch revenue grow as their usage increases.

我們的方向是將軟體交到客戶手中，然後隨著他們的使用量增加而看到收入成長。

And their usage increases within the initial applications that they put the platform to use for.

在他們使用該平台的初始應用程式中，它們的使用量有所增加。

And then also as they discover new uses, the expand part of our land-and-expand strategy is very much wrapped around the customer, taking control of what they can do with the platform and coming up with new use cases.

然後，當他們發現新用途時，我們的土地和擴張策略的擴張部分很大程度上圍繞著客戶，控制他們可以使用平台做什麼並提出新的用例。

And we tend to design in a way that we don't have to renegotiate contracts and go back and do a lot of contractual work for them to do more revenue with us.

我們傾向於以這樣的方式進行設計，即我們不必重新談判合同，也不必回去做大量合約工作，以便他們與我們一起獲得更多收入。

We tend to design it in a way that they can select how much usage they want.

我們傾向於以一種讓他們可以選擇他們想要的使用量的方式來設計它。

And our revenue goes up automatically as their usage goes up.

隨著使用量的增加，我們的收入也會自動增加。

And thanks so much.

非常感謝。

Appreciate it.

欣賞它。

Jeff Meuler, Baird.

傑夫·穆勒，貝爾德。

Instead of me, getting to ask a question about cash flow this quarter.

代替我，問有關本季現金流的問題。

I just get to say congrats on the nice cash flow.

我只想說恭喜你有不錯的現金流。

Can you give us some perspective on the geographic kind of trends within software.

您能否給我們一些關於軟體中地理趨勢的看法？

I guess I'm just -- it looks like Americas revenue was down a little year over year, so any particular callouts.

我想我只是 - 看起來美國的收入同比略有下降，所以任何特定的標註。

And then EMEA was up a lot.

然後歐洲、中東和非洲地區的漲幅也很大。

So just any mega wins and a EMEA or any reason to think that you're at an inflection point there and it's really taking off?

那麼，是否有任何重大勝利和歐洲、中東和非洲地區，或者有任何理由認為您正處於轉折點並且正在真正起飛？

Jeff, I don't think that we have tremendous changes regionally.

傑夫，我不認為我們的地區發生了巨大的變化。

I wouldn't try to read too much into the data on a quarterly basis.

我不會嘗試對季度數據進行過多解讀。

We have strength of platform across all the regions.

我們在所有地區都擁有強大的平台實力。

I think Asia Pacific was a little behind the other regions in terms of platform adoption, and there were some structural reasons for that.

我認為亞太地區在平台採用方面稍微落後於其他地區，這有一些結構性原因。

For example, AWS was not available in [India] before and now it is.

例如，AWS 以前在[印度]不可用，但現在可以了。

But we're seeing adoption across all the regions.

但我們看到所有地區都採用了該技術。

Yeah, I would think some of what you see might see with the volatility is when we have that point-in-time license revenue, and that could skew things in one given quarter.

是的，我認為您可能會看到的一些波動是當我們擁有該時間點許可證收入時，這可能會扭曲某個特定季度的情況。

But we've had a lot of adoption in the last year in North America, and we're starting to see a lot more interest to in EMEA as well.

但去年我們在北美獲得了許多採用，我們開始看到歐洲、中東和非洲地區也有更多的興趣。

And then when you're calling out the FICO 10T adoption and then the non-performing mortgage market, is that almost exclusively about upgrades from prior versions of the FICO score given how high your penetration is?

然後，當您提到 FICO 10T 的採用以及不良抵押貸款市場時，考慮到您的滲透率有多高，這幾乎完全是對先前版本的 FICO 評分的升級嗎？

Or are you finding, I guess, like incremental volume as part of that adoption?

或者我猜您是否發現增量數量是採用的一部分？

It's a bit of both, but probably more of the upgrade.

兩者兼而有之，但可能更多的是升級。

Yes.

是的。

I mean for the most part, everybody was using the traditional FICO scores and now they're just moving to the 10T ahead of the adoption by the FHFA.

我的意思是，在大多數情況下，每個人都在使用傳統的 FICO 分數，現在他們只是在 FHFA 採用之前轉向 10T。

(Operator Instructions) Manav Patnaik with Barclays.

（操作員指示）Manav Patnaik 與巴克萊銀行。

I just wanted to ask, Will, I think you tried to reference some of these in your prepared remarks, but in the face of some public criticism around the price of your scores, how is your approach of high process around the value of your score?

我只是想問，威爾，我想你試圖在準備好的發言中引用其中的一些內容，但是面對一些圍繞你的分數價格的公開批評，你對分數價值的高流程方法是如何的？ ？

Maybe the timing around which you get to that value, has that changed at all?

也許你達到這個數值的時間有什麼變化嗎？

Well, you've heard us say in the past, and I certainly continue believe that what in charge to the FICO score is so much less than the value that we provide.

好吧，您過去曾聽我們說過，而且我當然仍然相信 FICO 分數的影響遠小於我們提供的價值。

That I would say there's not a lot of change in our thought process.

我想說的是，我們的思考過程沒有太大變化。

Our thought process is that over time, we're going to close some of that gap.

我們的想法是，隨著時間的推移，我們將縮小一些差距。

And I think anyone who actually studies the numbers and gets into the details of it sees the FICO scores are tiny piece of the overall process, whether you're talking mortgage or any other kind of credit evaluation process.

我認為任何真正研究這些數字並深入了解其細節的人都會發現，無論您談論的是抵押貸款還是任何其他類型的信用評估流程，FICO 分數只是整個流程的一小部分。

And so, I would say no real change anticipated.

因此，我想說預計不會發生真正的變化。

Okay.

好的。

And then and then somewhat similarly, on the software side.

然後在軟體方面也有些類似。

I think you talked about the value proposition being unique and niche et cetera.

我認為您談到了獨特且利基的價值主張等等。

But we've heard obviously a lot of other software companies during earnings season talked about the weak environment and the slow down.

但我們顯然聽到許多其他軟體公司在財報季節談論疲軟的環境和放緩。

It doesn't sound like you're seeing any of that.

聽起來你並沒有看到這些。

But anything you'd like to call out was there may be some -- could it be a lag when you see some of these headwinds or perhaps you're not seeing that at all?

但你想指出的是，可能存在一些——當你看到其中一些逆風時，這可能是一個滯後，或者也許你根本沒有看到這些？

We're really not seeing that.

我們真的沒有看到這一點。

That's not -- that's I mean we've certainly heard that and I guess the industry is experiencing that, but we haven't felt that.

這不是——我的意思是我們當然聽說過這一點，而且我猜這個行業正在經歷這一點，但我們還沒有感覺到。

Thank you.

謝謝。

This will conclude today's question and answer session.

今天的問答環節到此結束。

Ladies and gentlemen, this will also conclude today's conference call.

女士們、先生們，今天的電話會議也將結束。

Thank you for participating, and you may now disconnect.

感謝您的參與，您現在可以斷開連接。

Everyone have a great day.

每個人都度過了美好的一天。