Software Pipeline and ARR Expectations
Q: Is the step-down in ARR seasonal or structural?
A: The step-down isn't due to seasonality but because some deals moved to the next quarter. The pipeline is the strongest and most mature it's ever been, and we feel really good about it. "

Margin Outlook and Incremental Revenue
Q: Will incremental revenue drop to the bottom line?
A: We're comfortable with margins, and expenses are in line with expectations. Incremental revenue should generally fall through to the bottom line, though we might reinvest some in development resources. "

Pricing Strategy for Mortgage, Auto, and Card
Q: Any changes in pricing for autos and credit cards?
A: We collapsed the tiers in mortgage pricing to create a level playing field based on industry feedback. In auto and card, we've made standard CPI inflation adjustments, with no significant actions beyond that. "

Scores Volume Expectations and Mortgage Rates Impact
Q: Any change in volume expectations for Scores in 2024?
A: We're comfortable with our guidance and see volumes roughly as expected. Rates have ticked up in mortgages recently, so we don't share the view that there's increased optimism. No change in our outlook. "

Expenses and Investments in R&D and Cybersecurity
Q: How should we think about expense trends in Software?
A: We're investing in R&D to add functionality and in cybersecurity. Expenses will trend up but not dramatically as we bring on more people; we have about 100 more people than a year ago. "

Auto and Card Volume Trends
Q: What's happening with auto and card volumes down 3% and 5%?
A: Volumes are down slightly but within our forecast range. It's not a surprise, and we're comfortable with it. We don't have additional insights, and future trends are uncertain. "

License Renewal Headwinds
Q: Any headwinds from Latin America license revenue?
A: License renewals are hard to project. Last year, we had significant point-in-time revenue from renewals, which might not recur this year. We're moving clients to the platform, favoring recurring revenue over upfront licenses. "

Sales Cycle and Deal Timing
Q: Why are some deals pushed to next quarter?
A: There's nothing unusual; sales cycles are shorter than a year ago. We don't rush deals with discounts at quarter-end. Deal timing often depends on clients' timelines. Some deals slipped due to year-end holidays but have closed in January. "

Traction Outside Financial Services
Q: Are you seeing uptake outside financial services for the platform?
A: Our platform remains focused on financial services, but in optimization, we're used by airlines, retailers, and others. Our strategy is to expand into nonfinancial sectors through partners. We'll have open APIs and SDKs this year to support this. "

Mortgage, Card, and Auto Volume Trends
Q: What are the trends in mortgage, card, and auto volumes?
A: In mortgages, we're seeing some unexpected refinance activity even with small rate declines. Card volumes are steady after running hotter last year, with some pullback in subprime markets. Auto lending is relatively stable with little volatility. "