Seth Weber: Hey, guys. Good afternoon. I wanted to ask, just to go back to the comment about some deals getting pushed to the second quarter. Is there anything idiosyncratic that you’d call out there, or is there any focus on any certain product customer categories or regions or anything that you attribute that to? Or are you just seeing an elongation of the sales cycle? Because I think in prior quarters you guys had talked about a shortening of the sales cycle. So I’m just trying to understand if there’s any kind of bigger change that’s going on here?
Will Lansing: No, not really. I mean, the sales cycle is roughly where it’s been lately, which is shorter than where it was a year or two years ago. I would say just there’s nothing special there. It’s probably worth reiterating that FICO, unlike a lot of other software companies, doesn’t do a lot of wheeling and dealing at the end of the quarter to pull in business and it is cultural with us. Our salespeople and all of our employees really live, act, believe in our number one corporate value, which is act like an owner. Again, we are really, truly aligned with shareholders. We think about it as a family business, and that includes the salespeople at end of quarter. And that’s not to say that we don’t make a push at the end of the quarter to close business.
Obviously, we do like everyone, but what’s not on the table is a bunch of extra discounting and Hail Mary type stuff, just to pull something a week earlier. We just don’t care. And you’ll never find FICO making radical concessions at quarter end to prop up a quarterly number. It’s just not who we. It’s just worth keeping that in mind. So when we say deals move from quarter to quarter, it has more to do with the client and their budget timeline and their approval process than it has to do with anything else.
Steve Weber: Yeah, and I would just say practically, we had some deals that we didn’t sign that last week of December just because it was hard to get people, right? I mean, you run into this issue every December that you might have people that are on vacation or traveling. You just can’t get the ink on the paper. So some of these deals have actually closed in January. So, I don’t — again, from Will’s point, that’s a great point. We’re not scrambling, trying to do everything humanly possible to get the deal signed in the last week of December as opposed to the first week of January.
Seth Weber: Got it. Okay. That’s helpful. Thanks. And then can you — just expanding on that a little bit, can you just update us on any traction that you’re seeing? Whatever traction you’re seeing kind of outside the financial services area for the platform business and whether you’re seeing bigger uptake there from non-traditional customers?
Will Lansing: Yeah, I would say that our platform business is still very much focused on financial services. The business we do outside financial services today, we do closely align stuff like insurance, we do that. But insurance have really non-financial services verticals. I would say the lion’s share of that is in the optimization area, where we have the world’s leading optimization engine. And so it’s used by airlines and retailers and all kinds of sports scheduling, and all kinds of places that are not as typical when you think of FICO. That said, our strategy around non-financial services is very much to go there through partners. We have a really robust and growing and ever stronger indirect salesforce where our partners focus on both geography — in geographies where we’re not so present.
And on — partners in geographies where we’re not present, and then on verticals where we’re not as represented. And I think you’ll see as our strategy evolves, and you’ve heard us talk about building an open ecosystem with a decisioning platform available to any B2C company interested in using it, that’s happening this year. And we will have open APIs this year, we will have software development kits for ISVs and retailers and bars, and those who want to take our decisioning solutions to other verticals. So you’ll see that starting to happen this year. But that’s really our strategy is to do that through partners. There’s not much of that, that we do directly.
Seth Weber: Got it. Okay. Thank you, guys. I appreciate it.
Operator: And our next question comes from the line of Ashish Sabadra with RBC Capital Markets. Please go ahead.
Ashish Sabadra: Thanks for taking my question. Just a quick question on the mortgage volume. Did you provide what the mortgage volume growth was in the first quarter of ’24?
Steve Weber: We don’t pull out the different components in terms of the volumes, but I mean, you can get the volumes from other third party sources pretty easily.
Ashish Sabadra: That’s helpful. And then maybe on the headwinds from the LatAm license revenue. Can you just remind us how much was that revenue in the prior year, 1Q ’23? Or how should we think about the growth in the business excluding that one-time headwind? And then as we go through the rest of the year, just curious if there’s any other license renewal headwind to be cognizant of? Thanks.
Steve Weber: There’s potentially license. I mean, the renewals are hard to project, frankly, because we don’t know when they’re going to renew or sometimes they’ll renew early, sometimes they will renew later if they’ll take on additional pieces. So the renewal pieces is difficult. If you look at the next couple of quarters, we had some pretty big point in time revenue last year in Q2 and Q3. So we may not have that again this year. Sometimes we have renewals that end up moving to the platform and they end up becoming a ratable revenue. So they don’t have upfront license revenue. So we’re actively trying to move people, obviously to the platform, which we forego the upfront license revenue in favor of recurring revenue. So as those happen, you’re going to see changes there.
That’s typical to companies that are moving a ratable revenue, but it’s been less dramatic for us because we’ve done over time. But there’s always the potential that you’re going to see that and you’ll have to think about that as different quarters come up.
