Craig Huber: That’s perfect. Thank you.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Kelsey Zhu from Autonomous.
Kelsey Zhu: Thanks for taking my question. So on wealth, I think you previously talked about an acceleration of growth in FY ’24 and the general expectations of expanding share and expanding TAM. Obviously, we’ve seen a large win this quarter, but I was wondering if you can tell us a little bit more about the key drivers and strategy behind that acceleration of growth? You’ve also talked about expanding into workflows outside of the Advisory Dashboard. So I was wondering if you can give us an update on that as well. Thanks.
Helen Shan: Hi, Kelsey, it’s Helen. Thanks for your question. Let me try to get to it. So when we think about wealth, as we mentioned, we had a very good win this quarter that helps us a lot. And so when we think about what wealth clients are trying to do right now is that they are looking really to improve and modernize their platform. They started with a lot of the large wealth firms, as you know. And now we’re seeing that now with the midsized firms coming through. So that’s where we’re seeing more of that deal flow. Just as a reminder for the large clients that we have been able to win through competitive displacement that includes Merrill, Royal Bank of Canada, Raymond James and Bank of Montreal. And with this newest one, which actually for us is the one the longest or rather the highest total contract value, there was a displacement of a long-time incumbent.
And so we look forward to building that relationship with them for the long-term since our contract with them is actually longer than average over five years. And so as wealth clients, now the mid-tier client — wealth clients are now coming on board and wanting to modernize their platform because their clients are demanding more sophisticated digital technologies, and they don’t have the platform to be able to scale, and that’s where they’re turning to us. Total cost of ownership is really quite key. And so the discussions that we’re having include everything from — and this is back to your question, whether or not they want to get the data from APIs, for example, which does require more development costs. They need people to put that in versus, say, one of the products we’re seeing a lot of demand for us, which are widgets, which are easier to put in and therefore, quicker.
So those are some of the dynamics we’re seeing. That’s where we’re expanding beyond the wealth platform only and going into data and then also into the CRM side, which is allowing our wealth clients to focus on their top line and giving their advisers the tools to be able to drive top line growth.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Russell Quelch from Redburn Atlantic.
Russell Quelch: Hi, Thanks for having me on. So you had good user count growth and a slowdown in the client growth. And I think that’s because of those two large deals you called out. I’m interested in, is this a purposeful tilt in the sales strategy towards targeting larger enterprise deals? And therefore, should we expect ASP growth to be maybe more lumpy, more volatile on a quarterly basis going forward as a result of that approach? And I also wondered, can you be a bit more specific around what you’ve assumed to be the size of the impact from Credit Suisse in your ASP this year? And if that’s all going to come in the second quarter, please?
Phil Snow: Yes, I’m not sure we’ll be able to speak to the exact size of that. But yes, I think the opportunity for us to do much larger deals is increasing. And what is really encouraging, Russell, is across wealth, which we just saw a big win in, we had a very nice win on the institutional buy side this quarter in trading. And the revenue for that doesn’t really materialize until those trading systems get implemented. So that can take a while. We had a fantastic large win in Q4 on the managed services side for performance. And then in banking, we’ve had some significant wins where we’ve completely displaced a competitor because of deep sector. So I’m beginning to see in my conversations with the C-suite of our bigger clients a real appetite to engage more with FactSet.
So yes, I hope stuff is lumpy, particularly on the upside, right? And when you get those eight-figure contracts or those seven-figure contracts, it can sway things. I think one of the beauties about FactSet’s business model is our consistency though. And I think as markets return to more normalcy, we’ll still get a lot of single doubles and triples, which will, I think, continue to hopefully smooth things out. But yes, we’re always hunting for those big deals and the possibility of us getting those now is much larger just based on the product suite and our open strategy.
Operator: Thank you. [Operator Instructions] Our next question comes from the line of Jeffrey Silber from BMO Capital Markets.
Jeffrey Silber: Thanks so much. I wanted to go back to AI. You had mentioned that your focus is more on the client side, and I believe you launched FactSet Mercury. Can we add a little bit more color on that and maybe what your plans are going forward? Thanks.
Kristi Karnovsky: Sure. Hi, Jeffrey, this is Kristi. Yes, we’re very excited about FactSet Mercury. But maybe it will be helpful if I talk a little bit about the whole AI Blueprint and just highlight the areas in there where I think FactSet is really differentiated in our approach to responsibly leveraging AI to deliver value to our clients. So the first pillar of the blueprint is all about what we call mile-wide discoverability. And FactSet Mercury, which we talked about in the press release, it’s our conversational AI interface and it’s designed to unlock discoverability of all of the content and functionality that FactSet has to offer for our users. And it’s really going to become the mainstay of the FactSet user experience of the future, which is going to be a lot more personalized and insight driven.
