Margin Outlook
Q: Why isn't margin expanding in fiscal '25 guidance?
A: Management emphasized that while margin expansion is important, they focus on delivering sustainable double-digit earnings growth while investing in long-term opportunities. They expect headwinds from lower float income due to anticipated rate cuts and impacts from distribution revenues. However, benefits from the recent restructuring and core margin expansion will help fund investments, keeping them on track for 8% to 12% sustainable earnings growth.

Bookings Trends
Q: What drove strong bookings in fiscal '24, and outlook ahead?
A: The company achieved $342 million in closed sales for fiscal '24, driven by tailored shareholder reports, digital solutions, and strong growth in capital markets and wealth management. Excluding tailored shareholder reports, sales were at record levels. Management expects these trends to continue, with sales guidance of $290 million to $330 million for fiscal '25, supported by a strong pipeline.

Impact of Market Volatility
Q: How does market volatility affect the business now compared to past?
A: Management highlighted the resiliency of their business model, noting that 94% of fee revenues are recurring and they have a $450 million backlog of contracted sales. Position growth has been resilient through various economic cycles, and the company is hedged on interest rates, with volatility benefiting trading. Fundamental components of their resilient model remain intact compared to past periods.

Wealth Business Growth
Q: Are you on track for $20-30M incremental wealth module sales?
A: The wealth business grew 7% over the past year, benefiting from onboarding UBS and partially offset by E-Trade. Sales were up 40% year-on-year, nearing the $20 million goal. The pipeline is 30% higher than 12 months ago, and upcoming opportunities like SIS in Canada are expected to add to long-term growth.

M&A Strategy
Q: Should we expect more tuck-in deals like AdvisorTarget and CompSci?
A: Management views these acquisitions as examples of their buy-versus-build philosophy to efficiently meet client needs. While primarily an organic growth company, M&A is an attractive way to address new client requirements. The mix of M&A will remain financially disciplined and strategic, with recent deals including both small tuck-ins and larger acquisitions like SIS.

Backlog Duration
Q: Is the $450M backlog duration different from the past?
A: The backlog, including both ICS and GTO businesses, remains consistent with prior years. The backlog as a share of recurring revenue is 11% this year, slightly higher than 10% last year, indicating it's incrementally better but not dramatically different.

Revenue Growth Outlook
Q: Does the 5-7% recurring revenue growth include SIS deal?
A: The 5% to 7% recurring revenue growth outlook for fiscal '25 includes a 0.2% contribution from the two smaller tuck-in acquisitions and nothing from the SIS deal.