Margin Outlook Q: What's changed in your margin guidance?
A: Our 2024 adjusted EBITDA margin guidance is 54% to 55% " , a slight tightening from the Investor Day range of 54% to 56%. " The difference is due to three incremental investments since then: in our sales force, international expansion through M&A, and investments in generative AI. " Despite these, we're still delivering 100 basis points of margin expansion " , and compounded with prior expansions, we're ahead of our previous targets. "

Revenue Growth Drivers Q: How do you view transaction growth and its drivers?
A: In 2023, our strength came from the hard insurance market, transactional rebound, and elevated weather activity. " For 2024, we expect the hard market to persist, but transactional activity and weather to normalize. " On the marketing side, carriers are starting to return to profitability, and we assume marketing spend will normalize in the second half of the year. "

Pricing Opportunities Q: Can you elaborate on pricing opportunities impacting growth?
A: We've realized stronger pricing momentum than anticipated, particularly with our Core Lines Reimagine project. " These pricing improvements are factored into our 2024 guidance. " They support our longer-term 6% to 8% growth target " and occur across our business as we deliver value-driven pricing to our clients. "

Generative AI Initiatives Q: What benefits do you expect from generative AI this year?
A: We're excited about new products leveraging generative AI. " In our claims business, we've deployed AI in data extraction and medical file summarization, enhancing automation and client value. " We're also exploring applying low and no-code technology from our life insurance business to P&C. " These investments are part of our growth strategy and factor into our capital allocation. "

Transaction Revenue Outlook Q: How will transaction revenue trend in 2024?
A: After strong double-digit transactional growth in 2023 " , we're lapping elevated periods. Key drivers like auto shopping activity and weather trends are expected to normalize. " We're not assuming elevated weather activity, and auto shopping trends will begin to return to historical levels. "

Free Cash Flow Growth Q: How should we expect free cash flow to grow?
A: Our Insurance business generates strong free cash flow. " We expect it to grow roughly in line with our bottom line. " While we don't give specific guidance, our confidence is demonstrated by our commitment to increasing the dividend. "

Capital Allocation Priorities Q: How should we view capital allocation moving forward?
A: Our capital management focuses on returns on invested capital. " We'll invest organically and pursue M&A opportunities generating returns above our cost of capital. " If we don't find such opportunities, we'll return capital to shareholders. " Our incremental returns on invested capital this year were approximately 19%. "

Sales Force Investments Q: Can you provide more color on sales force investments?
A: We've aligned compensation structures with market levels to improve retention and focus on value-generating opportunities. " We're also structuring pricing to align with clients' perception of value. " This investment contributes to our margin outlook while supporting growth. "