Margin Outlook
Q: Why is margin expansion less in FY'25 guidance?
A: While margin expansion remains a key focus, certain headwinds from FY'24 into FY'25, like the slowing back-fill of VEDIP departures and a one-time shift in merit increase timing, present grow-over challenges. However, we are confident the model continues to produce margin expansion at a nice clip, and we aim to deliver numbers we feel confident in.

Core Wins with Larger Customers
Q: What's driving the increase in core wins with larger institutions?
A: We had 15 new core wins over $1 billion in assets this year, a significant increase from the typical 4 to 6 range. This is due to our execution, technology innovation, and reputation as an industry leader, which have helped us engage larger customers and be successful in this space.

Payments Segment Growth
Q: What are the drivers for payments segment growth?
A: Payments grew 8.4% in Q4 and 6.7% for the full year. Growth isn't just from cards; our EPS and PayCenter businesses are doing well, with demand for fraud solutions aiding real-time payments adoption. We expect opportunities from bill management solutions and faster payment rails like FedNow, with ancillary solutions providing upside over the next couple of years.

Free Cash Flow Conversion
Q: Can you explain the free cash flow conversion outlook?
A: Adjusting for a $29 million tax overpayment and $60 million timing benefit from annual maintenance collections in FY'24, our free cash flow conversion was around 65%. This aligns with our expectation for FY'25, and we're confident in our guidance range.

Implementation Timelines
Q: Are larger core wins affecting implementation timelines?
A: No significant changes; implementations typically take 12 to 18 months. Recent core wins won't contribute revenue in FY'25, but we're not seeing any extensions beyond typical timelines, and we're increasing resources to expedite implementations where possible.

Cloud Migration Uplift
Q: What's the impact of moving clients to the cloud?
A: With 73% of clients now in the public cloud, we aim for around 93-95%. The revenue uplift is now about 1.75 times (down from 2 times) as we migrate larger clients. There's several years of runway left, and opportunities to move clients from private to public cloud will also arise.

Competitive Environment
Q: Any changes in pricing or competition recently?
A: No significant changes; competitors continue their usual tactics. Our success with 22 competitive core wins reflects our execution, service reputation, and consistency, and we don't see any major shifts in the marketplace.

M&A Outlook
Q: What's driving the slower pace of M&A?
A: Our approach hasn't changed, but we're now focused on public cloud-native targets that accelerate strategies in payments and SMBs. We have fewer gaps in our solutions, and we're also considering product rationalization for offerings that no longer make sense.

Return on Invested Capital
Q: Thoughts on the decline in ROIC?
A: Our ROIC is 20%, slightly down due to debt from the Payrailz acquisition. As we continue to pay down debt and potentially engage in repurchases or other activities, we expect ROIC to trend positively and upward.

Net Interest Income
Q: How is net interest income positive despite net debt?
A: We earn revenue from administering cash settlement balances, which has increased due to better yields from partners. While sensitive to interest rates, this income is sustainable, helping offset interest expenses despite our debt position.