Q3 2020 Fair Isaac Corp Earnings Call
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Greetings and welcome to the FICO quarterly earnings call. During presentation, all participants will be nay listen only mode. Afterwards, we will conduct a question and answer session. If you have a question. Please press the one follow but the foreign your telephone at anytime during the presentation at that time your line will be access from the conference to obtain information.
If at any time turn conference and in return operator, Please press Star Zero as a reminder, this conference is being recorded Wednesday July 29, 2020, and now I'd like to turn the conference over to Steve Weber. Please go ahead.
Thank you good afternoon. Thank you for joining spike it was third quarter earnings call.
I am Steve Weber, Vice President of Investor Relations and I'm joined today by our CEO will Lansing and our CFO Mike Mclaughlin.
Today, we issued a press release that describes financial results compared to the prior year on this call management will also discuss results in comparison to the prior quarter in order to facilitate understanding of the run rate of our business.
Certain statements made in this presentation may be characterized as forward looking under the private Securities Litigation Reform Act of 1995.
These statements involve many uncertainties, including the impact of code 19 on macroeconomic conditions and the company's business operations at personnel that could cause actual results to differ materially.
Information concerning these uncertainties is contained in the company's filings with the FCC in particular and the risk factors and forward looking statements portions of such filings.
Copies are available on the FCC from the effect of web site or from our Investor Relations.
This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and regulation G. schedule is you today for a reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measure.
The earnings release, and the regulation she's schedule are available on the Investor Relations page of the company's website at FICO dotcom wanting the Fccs website at FCC Dot Gov.
A replay of this webcast will be available through July 29, 2021, and now I'll turn the call over to will Lansing.
Thanks, Steve and thank you everyone for joining us for our third quarter earnings call.
I Hope you and your families are healthy and staying safe as we go through this pandemic.
We continue to work primarily from home most of our offices. Our remaining closed I'm pleased to say this model has worked very well for us our productivity metrics remained very strong.
We're able to innovate meet development deadlines serve our customers and implement our solutions.
We posted some slides with our results on the Investor Relations section of our website I'll be referencing some of those slides during our presentation today.
I'll go over the results of our third fiscal quarter and discuss what we're seeing in the markets that we serve.
I am pleased to report that we had another very strong quarter, which demonstrates the remarkable resiliency of our business as shown on slide two we reported revenues of 314 million flat with the same period last year, which was our highest revenue quarter ever we delivered 64 million of GAAP net income and GAAP earnings of $2.15 per share.
We delivered 77 million of non-GAAP net income and non-GAAP bps at $2.58.
We also delivered 99 million of free cash flow in the quarter at the highest single quarter in company history.
As you can see on slide three we continue to have ample liquidity.
We actually reduced our total debt by about 20 million from the end of our second quarter.
We generated 106 million and new bookings and have a very strong pipeline of deals this week.
Moving to the fourth quarter.
Our software revenue was down 8% this quarter due to the difficult comparison to last year. When we had large application renewal revenue.
This quarter. The application segment was down 15%, primarily due to lower upfront license revenues decision management software was up 22% primarily due to increases in recurring transactional revenues.
In the scores business, we had another record quarter. Despite the volatility in the credit markets total revenues were up 14% versus the prior year and totaled 132 million.
B to C revenues were up 21% this quarter with strong growth in both my FICO and indirect partner channels.
On the B to B side revenues were up 12% over the same period as last year. This is especially encouraging as this is an area that can be highly volatile and uncertain economic times, we saw strength in the mortgage markets throughout the quarter with volumes up due to low interest rates.
And auto volumes are down significantly at the start of the quarter and improved over the balance of the quarter.
For cards, and other <unk> unsecured lending marketing and origination volumes were down throughout the quarter, that's financial institution slowed new card acquisition efforts.
Obviously, there's still a great deal volatility in these markets with record unemployment at furloughs.
We also continue to innovate and scores last month, we introduced the FICO resilience index and analytic tool that complements the FICO score and helps lenders borrowers and investors to identify the financial resiliency of consumers across FICO score bands to make more informed and precise decisions and assessing risk during rapidly changing X.
I don't think cycles.
In general in a down economy access to credit goes down as lenders try to mitigate the credit risk.
FICO resilience index can be helpful in navigating through changing economic cycles, the desired outcome as a system that is even more precise and assessing and pricing risk and less prone to broad credit restrictions and risk pricing, which can tighten the flow of credit during an economic downturn.
As we navigate through the current economic climate I'm extremely pleased with the performance of our business last quarter. We were attracted our full year guidance due to widespread economic uncertainty. We now have additional data points, but markets have yet to stabilize so why we won't give formal guidance. We are offering additional visibility into how various metrics are trending as we finish our fiscal year.
If you look at slide for an updated version of what we showed last quarter, you'll see how we performed in Q3, and where we stand year to date versus our original guidance.
We're trending well in scores with both B to B and B to C ahead of our original guidance.
On the software side, we're slightly behind in transactional and maintenance volumes as reduced economic activity has slowed volumes. We also have risk and license sales and services revenue our fourth quarter tends to be the highest sales quarter for us and we have a strong pipeline of deals we see clients accelerating their digital transformation plans, where we play a central role.
But again with the uncertain economic environment, it's difficult to commit to specific revenue numbers.
On the expense side, we're spending well below what was embedded in our guidance as a result, we will likely have some savings versus what we expected at the beginning of the year.
While they're still many moving pieces, we now believe it's likely that we'll be able to hit our previously guided pretax income and net income numbers.
In many ways is the most difficult health and economic environment, we've ever faced.
At the same time, we have very resilient business model and we're actively managing the business to work through the near term difficulties with an eye toward our long term strategy.
I'll share some summary thoughts later, but now I'd like to turn call over to Mike for further financial details.
Thanks, well and good afternoon, everyone revenue for the quarter was 314 million flat with prior year and up 2% from the prior quarter year to date revenue was 920 million up 8% from the prior year.
Our application segment revenues were 141 million down 15% versus the same period last year.
This decrease in revenue was driven primarily by lower license revenue as you may recall, we had a very large license component in Q3 last year due to renewals, which under assay six so six accounting standards require upfront revenue recognition, even though we billed to customers and annual subscription.
Software applications billings for the corner were 61 million flat versus last year and up 27% for our second corner, where we had significant coded related disruptions in sales efforts at the end of March.
And our decision management software segment Q3 revenues were 41 million up 22% over the same period last year.
The increase was primarily due to SaaS subscription revenues in our decision management platform.
CMS bookings were 29 million into Q3 down 22% from the previous year bought up 25% from last quarter.
Finally, our score segment revenues were 132 million up 14% from the same period last year need to be was up 12% over the same period and B to C revenues were up 21% from Q3 2018.
In our third fiscal quarter, 79% of total revenues were derived from our Americas region, or EMEA region generate 14% and the remaining 7% less from Asia Pacific.
Recurring revenues derived from transactional and maintenance sources represented 79% of total revenues in the quarter consulting and implementation revenue were 14% of total revenues and license revenues were 7%.
Revenues derived from our cloud delivered software as a service or Psas were 77 million for the quarter, an increase of 11% over the prior year that included 61 million of transactional software revenue and 16 million in professional services.
Bookings for the quarter <unk> totaled 106 million down 3% from last year, but up 26% from last quarter. These bookings generated 16 million of current period revenues of 50% yield.
Last bookings were 40 million for the quarter down 12% from the previous year, but up 31% from last quarter.
Our operating expenses totaled 231 million this quarter down 1 million from the prior quarter. This is due primarily to decreases in travel marketing and other discretionary expenses, we expect Q4 expenses to be moderately higher.
Our non-GAAP operating margin as shown in our Reg G schedule was 44% for the corner.
GAAP net income this quarter was 64 million flat with prior year. Our non-GAAP net income was 77 million for the quarter, which was up 1% from the same quarter last year.
Our effective tax rate this quarter was about 16%, which included 5 million of excess tax benefits, resulting from stock based compensation activities. We expect our effective tax rate to be around 9% to 11% for the fiscal year.
As a reminder, our recurring tax rate before these excess tax benefit is approximately 25% to 26% globally.
Free cash flow for the quarter was $99 million compared to 61 million in the same period last year, an increase of 63%.
Free cash flow this quarter benefited from a large reduction in working capital year over year, primarily related to unusually high accounts receivable at the end of Q3 20 Nike.
Free cash flow from the trailing four quarters was 297 million.
Turning to the balance sheet at the end of the quarter, We had 126 million cash, which is up 19 million from last quarter due to cash generated from ops, partially offset by share repurchases.
Our total debt face value is 938 million weighted average interest rate of 4.38% at the end of the quarter. We had drawn 103 million on our 400 million dollar revolving line of credit. We further drew on that facility to pay for the 85 million maturity of senior notes in July.
Our leverage ratio as calculated for evolving line of credit was 2.16 and our covenant as you may recall is 3.25 on the revolver.
We bought back 157000 shares in the third quarter for $54 million and an average price of $343 per share and today, we announced the new board authorization for 250 million share repurchase.
Finally, as will said because of the current uncertain economic environment, we're not providing formal financial guidance for the remainder in fiscal playing with that I'll turn it back over to will for some final comments.
As we work to finish our fiscal year and build plants for fiscal 21, I'm confident the FICO is well positioned for the future were built to withstand economic downturns and are taking steps to manage through current uncertainties without sacrificing our commitment to our strategic initiatives as I've said before we are stewards of remarkable assets.
We have a great team dedicated to helping our customer solve their most difficult problems and the value of the analytic solutions. We provide both in software and its course is more important now than ever.
During the call back over to Steve to manage the acuity.
Thanks, well.
We will now take your questions operator, please open the line.
Thank you for like to register for questions. Please first one follow with a four and your telephone we do have a question from mine of Panic with Barclays. Please go ahead.
Thank you. Good evening guys. My first question is just on that you'd be a squeeze business I think you know the 10% going south and little bit like to US I was just hoping you can walk us through what that mix between price and volume was there a you know maybe less than last quarter. You then Oh I see like you.
Then missing the pricing element old the makes us feel different lending categories than that.
Yeah, I Manav I don't know the we've ever broken out the the mix between the volume and the price there the volume was a little bit lighter as you'd expect over quarter like this one so some of that was price.
[noise] and monitoring I'm going to maybe give you a little more directional view on that like <unk>.
We you happened to report earnings after Equifax and Transunion also after visa and you can see some of the trends that would underlie our results in the b to B scores business, particularly in the origination side from went there what they're showing obviously mortgage loans were very very strong.
Auto volumes seem to be picking up but for the corner were down and a personal on credit card side of things you know we're seeing the same thing is that a the bureaus or saw a in the period now.
That your data also seems to suggest that the trend is is improving.
But.
Certainly no assurance that that that's going to maintain itself and of course, when you look at the pricing across the three segments I think you understand well done.
Strategic pricing actions, we took in Andy what is our other category credit cards personal loans and now it's so important than you know that.
Category suffered the worst in terms of volumes, but the pricing actions helped mitigate that.
Okay got it that's helpful. And then just in the DTC side I mean, that's a pretty impressive number is there any one time deal activity in the end like you signed some new clients are sort of <unk>.
No. That's that's a pretty clean number we are genuinely seeing.
Consumer interest in their credit score and how they can track at an improvement in this environment and it's showing both directly and my thinking about content in our our partner you see sales.
Got it and then maybe just one last question well given any conversations with clients you know on the software and even underscores side are you starting he here any kind of you know a major budget issues, where maybe you could see more delays on the soft goods side and maybe more pressure on the pricing.
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No. We really haven't had that I think things are moving a little bit more slowly than they have historically I think there's you know we were there is this kind of.
The additional care being taken with everything when our customers do that said they are post full steam ahead on you know on digital transformation on upgrading their solutions and we're front and center. There. So we really haven't experience slowness there.
Alright, Thanks, a lot.
We have a question from Bill Warmington with Wells Fargo. Please go ahead.
Good evening everyone.
Hi, Bill so [laughter], so equifax they guy.
Xifaxan Transunion both indicated improvement.
July and I know you guys are typically lagging those results by maybe 45 days and so I wanted to see whether those improvements that their describing our showing up.
And your results do you see did you see him. The June results are you seeing on man.
Lie.
So you're you're absolutely right that our stuff flags lags them by roughly six weeks, we get some early indication and on the basis of that I'm pretty comfortable saying that our stuff will track, there's but its you know again, it's it's not final these numbers our final.
Got it.
Also on the on the B to C to follow up on the knobs comments.
Look I got very strong quarter.
Transunion noted, though since there are a big supplier in the indirect space that they were a little concerned about the second half the year [noise].
Just because they were concerned that the AG that the aggregate as we're not seeing a lot of demand from the banks, meaning the banks are not very aggressive. These days had I'm trying to add new accounts and so I just wanted to touch base on whether you tell comfortable with those volumes, we know what that level the growth continuing because you can see.
The inside much by the weekend so.
Well look we're pleased with the growth that we had and it's always hard to forecast. If you turn environment like this that the one thing that's clear though is consumers are more focused more interested in what's going on with their credit score than they've ever been before and we're seeing it at my FICO, we're seeing in our partner consumer stuff.
And so I'm sorry, you know I would I would hope is that trend would continue but again, we you know we don't know.
Yeah, Hi, how is going to the Oh has been the demand for all to fight go and experian boost how's that been.
So I experienced boost is doing very well and a and as you know that's I mean, its boosting the FICO score and so it you know there's a benefit to FICO every time a boost happens.
Ultra FICO is lagging now and largely because of the success that we're having with boost.
Uh huh.
Got it.
And I want that's kind of software side.
You guys have it making them.
You know outsized investment in software now for for some time and I wanted to check and see whether you.
You felt like.
The time was approaching way and a rate of investment in software was going to start to slow.
You know I can't make that promise bill what I would tell you that we're seeing what we're seeing is tremendous appetite for our new solutions reported new decision management platform and deal size is getting bigger and we now have banks that are adopting our our solution our decision management platform solution.
And then building all kinds of use cases on top of it. So we feel like we're we're being vindicated in the strategic direction at the same time you know we it does require investment we continue to poor investment then.
You know when one margins improve there'll be some margin improvement overtime as we scale up our SaaS business and have more multi tenant and returns to scale. So there'll be some benefits there.
And it you know when I think I think.
Professional services as you know as our products become simpler to install a little bit easier. The proportion of professional services will go down which will also be a margin improvement.
So I you know, there's other factors, but I can't give you a timeline.
I would I would tell you that we will continue to invest at this rate as long as it feels like.
Like those are smart decisions like those are intelligent decisions given the appetite to the market for our stuff.
You mentioned the banks adopting.
Some of the Dms solutions, and then building their own solutions on top of that I know from time to time, you've talked about how you develop your own some of the new generations of your products Oh actually being built on the Dms platform and use a lot of tools internally to do that you know this entire.
Walkabout sometime over the maybe the next 18 to 24 months, taking those tools and turning them outward, meaning that you had this whole echo system, a similar to salesforce dot com or workday, and I'm, having having developers being able to develop a customized tools on that platform does.
Does that is that timeline still is yeah. That's though we are we're very focused on that and this year 2021. This coming year will be the year. When are you guys are available on an outward basis, and vars and resellers and others will be able to build solutions on top of our platform. So that's very much hardware stride.
The G. It's it's the way that we intend to reach other verticals Besides financial services.
It's its away for us to go down market.
And and basically solve the problem that we've always had which is very limited distribution for extraordinary IP.
Yeah, excellent well I'll yield before thank you very much it seems like thanks Bill.
Well the question from just Mueller with Baird. Please go ahead.
Yes, thanks, sorry systems introductory, but I I wasn't aware of kind of build line of questioning about 45 day leg. So I just want to make sure I'm understanding it correctly. So are you, saying that you have not yet and paid for the credit polls at the bureaus in June.
'cause it's not only then it's reported to you like in arrears at the end of the month, but you're actually paid kind of on delayed spaces and you recognize revenue on the lights basis.
[noise], Mike and I said I think that yeah now, we we don't recognize revenue on a lag basis.
We don't get the final report for June Intel.
Some periods you know days not weeks after the end with the corner, but we take an accrual basis for an estimated revenue that that's in continuing conversations with those customers we.
Determined is appropriate for for the quarter and historically you know, it's it's it's a very close and core revenue recognition purposes. It.
Means that we're able to match revenue in the quarter with revenue recognized in cash flow wise and billing wise, we have no. We're not going to go into more payment terms with individual customers on a call like this but our payment terms with the bureaus or you know normal course and speed for a relationship like we have with them.
But we do get those reports so we in arrears as mentioned before.
So we don't know we genuinely don't know what is happening in July interfere partners a little now you know in a couple of weeks.
Got helped that's helpful. Thank you, yes it does.
And then just the expenses in the school this business, what's driving that and I guess, you know was curious if you're leaning in more on the marketing spend for my FICO or if there's a mix shift going on where you have some some more expenses to the bureaus for like try merge premium my site.
Oh products or something.
[noise]. So you know much of it is that we're investing in the FICO resilience index.
As well mentioned briefly in his remarks, and maybe you want to talk more about that.
We haven't you know dramatically increased marketing for the other parts of our business, but the development work the outreach work in the and the.
Implementation work around the resilient index as well as other innovation.
Steps, we're taking in the scores businesses, primarily what's driving the increase you see there and then one small factor is that with my FICO as the volumes go up our expense goes up because we have oh, we have a cost of goods goals and in my right right right got it.
So I know that net revenue retention is in a common metric that you give but just curious if you can help us understand their size up the land and expand on the Dms platform solution like are there enough historical examples are time series, where you can help us kind of understand.
And.
How big does the customer tend to come on as a new engagement for Dms platform and then I don't know two or three years down the road just how much more additional product or revenue generating off about so what we're I mean I would say it's early days and so it's we don't have a lot of data points around which to build a.
You know a conclusion.
That said.
Got it you know it it looks really good so what you have the situation where the very biggest banks, our biggest customers <unk> absolute top tier banks, they have super complicated system and they still buy at some point solutions and we have not yet had they are you know.
A top 10 bank they do I see out we're adopting the FICO decision management platform for all of our consumer facing decision that hasn't happened yet however, it is happening with a tear down.
And so you know I would say two years ago, we had some small banks that we're doing it and said yeah, we're going to standardize and the FICO Decisioning platform and then we're going to build all kinds of.
Different credit decisions around that.
And now we're moving up market and and so we have some pretty good sized banks that have made the decision to adopted and sometimes it's.
You know those let's start with a point solution. They were in the market for and recognize the expansion opportunity and sometimes they do it very deliberately with a view to putting a whole lot of different use cases on top of the platform. Once it's been adopted so equate the dog is eating the food, we're pretty happy about the way it's gone.
Alright, Thank you very much.
Our next question is from coil Peterson with Needham. Please go ahead.
Hey, good evening guys. Thanks for taking the question I'm sure that start on the decision management piece of the business. It was like you've had some nice growth there for several of the last or the last few quarters on.
Is the SAS momentum kind of rolling a strong enough, where we can expect <unk>. This growth to be able to continue or were there any like barge chunky deals in there that we need to be mindful of so make sure. We're thinking about that piece of the business I you know I think that it's fair to think that the growth will continue I mean this is it's.
Obviously, the the numbers a little bit Basel, because it's a smaller part of our business still and so you know percentage basis that it could move quickly because where we're dealing with smaller numbers that said that there's we have ever more solutions on top of the platform. It's very much our future. It's the way our salespeople are selling it as the way the banks are buying it.
And it's just a very different world than what three or four years ago. So while we still have we still have sales of legacy product and our legacy solutions will be around for a long time to come because they their best in class at what they do.
The decision management platform is really picking up steam.
[noise] and grant.
Technical little technical nuance that it's a good question because under the assay six cents ex accounting rules.
It can create some distortions in revenue when you sell an on prem subscription product for three five years.
You know that on Prem portion in most cases needs to be recognize all at once upon despite the fact that it's a subscription but if it's a SaaS sale. It is recognized ratably as weak as we build and deliberate.
So it can be lumpy for that reason alone the and not reflecting the underlying health.
Hello Health business, you know look as if there are big whoppers like that that we've had to pull forward or any particular quarter, we'll do about to called those out in this quarter. It was a normal backs between the types of revenue recognition and sort of the growth is pretty normal.
Great. That's really good color and then just a follow up on the margin and it's nice to see the upside there.
This quarter and I mean can appreciate the color you guys provided in the slide deck on it and get some of the travel entertainment and those types of expenses, which are obviously that lower right now I'm just trying to see if have you guys waning as we've gone through this kind of co bid process.
Have you guys found any other expenses that you might be able be able to rationalize that might we do some longer term cost savings for whenever the world getting more attention I didn't mean, we wrestle with it ourselves <unk> I am.
We'll have a view that some of these savings are here to stay we don't imagine that we will ever go back to the level of travel we had before I think that all of us not just like all but our customers and our car everyone involved is now way more adept at using zoom and doing more video and what we're finding.
As we can have comparable if not more contact with our customers with less travel and so and it you know, it's obviously more efficient and.
Much lower cost so so I would imagine some of its going to survive you know in a post cobot world.
That said you know it it is unnaturally low right now so you can expect it to go up from the love what that now you can expect it to be lower than it was a year ago.
On an ongoing basis.
Great. That's its very helpful. Thanks for taking the questions and nice quarter guys.
[noise], where the question from Brett Huff with Stephens, Inc. Please go ahead.
Good afternoon, guys. Thanks for taking my question had a quick question on the helpful Chart, you guys, but I think it's like three or four where you had some red boxes in GRI boxes, just want to make sure.
Oh I understand the red boxes in that there's some risk to those numbers.
But it seems that the scores boxing other scores numbers 63 in 18, no seems like Hittable target and wondering <unk> or <unk> or those not green box, because they're a little harder to predict or kind of what should we imply given that seems those might might fall in the green box category.
I'd I'd say, a little hard to predict it's a call you know call us call. It conservatism on our part it's a little harder to predict.
Okay. That's helpful. And then a quick update on the the the progress that you guys are making which I know it varies a little bit by product on the sat suffocation of the products I know you've got some already specified originations manager and et cetera, I know there, but the Falcon and the update to try it is coming out the indoor near lives.
Can you just remind us of where we are in each of those products kind of coming out with the with the full g. a SaaS product, where you know we're we're more than halfway through the process. If you. If you look at our you know the art our top franchises.
So as you mentioned originations managers now on on the platform.
The new version of Triad, which we call strategy director is now on the platform.
Blaze our rules engine. This is now on the platform called this is modeler, we wait till we you know, we're making progress there.
There's I'd say, the two biggest ones that aren't there yet our falcon and get manager.
And those those will mute those will take longer I mean falcon.
Falcon you know we're working on it we have another release coming very soon.
But its you know it to that's a massive undertaking.
And then last question for me is to the license revenue from Falcon was down quite a bit I know some of that was from it was down 66% I think some of that was from a the difficult comp is there any color you can give us that might be help us kind of see the coded impact rather than the tough comp impact.
Correct.
I'm not sure if you told us kind of what the numbers were on a year over year baby.
Outside of volume part of it but the volumes are down somewhat of a bit but.
But that.
Part of it.
Yeah, and the vast majority of it was the <unk> what is the renewal comp. We just out of we just had a couple of shoppers in the third quarter last year that all had to be recognized upfront and you know those only happened once in awhile and certainly not this quarter.
Okay, great that's where needed thank you.
<unk>.
[noise], if you'd like to register for questioning because first of one follow but a four on your telephone.
A question from surrender absent from Jefferies. Please go ahead.
<unk>.
Thank you.
Actually no question about the scores business and just claims following up on the earlier question about the volumes.
Generally I mean industry volumes that are kind of widely reported weather mortgage auto credit. They generally have been fairly good predictors of the scores revenues, but.
Based on kind of what we call incredible results that you guys you're really good results that you guys posted this quarter.
From my perspective, it seems to be able to connect and some of the segments. So when I looked at like them mortgage volumes for industry that was fairly consistent with what the bureaus reported but then they reported auto in credit data that was much stronger than what the industry data would suggest and.
Do you have any color in terms of other types of activity that could have made up for that delta or.
Any color there might be helpful. I mean, a is it as an example, so I was to look at some of the bank data.
Their marketing activities, there credicard originations I would say that that was anymore in general I don't really have an answer for you.
A narrow thing would be the fact that we do less lead Gen. You know them than some of the bureaus. So you know you'll see less there.
Okay. Thank you and then.
Another follow up question in terms of just the the buying centers Unity task force put up some recommendations a couple of weeks ago related to credit scoring.
In one of the recommendations was that the credit scores the more inclusive of using alternative data which would suggest.
Support for your newer scores so cycle nine cycle.
And is there any potential revenue benefits from you guys, but you guys would experience it's quite short to upgrade to let's say the the newest version to the scores or are you somebody agnostic as long as the clients continue to cycle scores I I'd say, it's more of the latter where agnostic. We I mean, we encourage people to up you know.
Up to the latest and greatest scores now because we charge more for him, but because we think they'll get better results.
And and so no I wouldn't say that there's don't expect a revenue uptick as they as they migrate to newer scores now.
That's helpful and then one other question themselves or.
Are you able to provide any color in terms of.
The percentage ores.
Revenues that maybe that's a scores it's maybe less volume driven that might be more relationship driven such as like monitoring type of revenues or any any color around ballpark figure that you might be able to provide.
I'm not sure if all the question I mean, all all of our scores revenue is driven at some level by volume and a little bit by price.
I guess, what I was trying to get out was if we were to use just credit cards as an example.
Obviously, there's originations volumes or is the marketing volume, but then there is the monitoring piece and so are you assuming modest we would be.
More based on like the head counts at a certain banquet house in so that would.
The less subject to.
Most of the cobot environment in a sense, what they would want to continue to monitor all of this their accounts <unk>. We see continued interest from our bank customers and monitoring closely I mean, there if anything there more vigilant and more focused than ever.
[noise], but maybe.
To hit your more rapidly those talent management volumes, which is where we are also.
Based on the number scores cold.
So there's no real difference in the volume driver there for account management versus origination.
Okay. Thank you.
And there are no further questions at this time.
Thank you this campaign this.
Today's call. Thank you all for joining and we look forward to speaking with you again soon.
Okay.
Thanks critical for Dave. Thank you for your participation I can you. Please disconnect your lines.
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