Manav Patnaik: Okay, fair enough. And then Will, just in terms of the lending commentary, I think we all have our views on mortgage, let’s put that aside for a second. But can you just walk us through what’s going on in auto and card with both those down 3% and 5%, just anything to call out there and what the outlook for ’24 is really for those two categories?
Will Lansing: You know, I don’t have a lot of additional to add there. It’s down a little bit and again, not a gigantic surprise to us. I think we’re very kind of comfortable with that. It’s within our kind of range of forecast, so we wouldn’t consider it a big surprise. And in terms of guessing about the future, honestly, Manav, your guess is as good as ours. As you know, we’re a trailing indicator.
Manav Patnaik: Yeah. Fair enough. Thank you.
Operator: And our next question is from the line of Kyle Peterson with Needham. Please go ahead.
Kyle Peterson: Great. Thanks guys. Good afternoon. I wanted to continue on the expenses and kind of what you guys saw this quarter. I guess in terms of mix of revenue, it looks like there’s a lower amount of professional services, which usually would think of as kind of a bit of a drag on expenses. So just want to see how we should think about the relationship between services revenue and some of these buckets versus the expense growth. Like, is there any lag or how should we think about some of the puts and takes there?
Steve Weber: Yeah, I mean, so the professional services piece is a little bit unique because most of the PS work is done by internal resources. So in some cases, if they’re not working on billable deals, they’re working on R&D. In some cases we’ve moved people into that function as well. So those costs don’t necessarily go away. The professional services piece for us really is most of its implementation work that we do on the software side. So we don’t really look at that necessarily as a profit center. But in terms of, as an indicator of potential expenses, I think the PS tend to run in that $20 million to $25 million range. It’s little bit lower this quarter, but it’s never going to be a lot higher because we’re kind of downplaying that aspect. We don’t have as many resources in PS as we’ve had in past years. So I don’t think you’re ever going to see that really tick up or really have much of a material impact on the overall margin of the business.
Kyle Peterson: And maybe just to follow up on the guidance methodology, particularly on the Scores side, things, looks like it sounds like your overall revenue top line is pretty much unchanged and the volume assumptions seem the same. So I guess could you just confirm on the pricing assumptions and kind of maybe what actions you guys have taken on that front and if everything that went into effect on the first of the year is in the guidance or if there’s still kind of a wait and see approach with volumes?
Steve Weber: Well, there’s still obviously a lot of volatility on the volume. So I think next quarter, yeah, all the pricing went into effect in first part of January. We’ll have a lot more color that we can provide next quarter because we’ll see the impacts of all that. We’ll be that much farther into the year and we’ll know a lot more about what volumes look like and frankly, we’ll know a lot more about what the rate environment looks like probably in three months. So we’ll be able to provide more color for the rest of the year at that point.
Kyle Peterson: Got it. That’s helpful. Thanks, guys.
Operator: And our next question is from the line of George Tong with Goldman Sachs. Please go ahead.
George Tong: Hi. Thanks. Good afternoon. You’ve announced removing tiered pricing increases for mortgage scores this year. Can you talk a little bit about your pricing strategy for autos and credit cards and how pricing trends in these categories will likely compare with last year?
Will Lansing: So we have adjusted prices. You identified, you highlighted probably the biggest change in pricing this year, which was collapsing the tiers and mortgage. And that was really in response to a lot of feedback from the industry about a level playing field and so we accommodated that. In terms of the others, as you know, we adjust prices in every segment, every year, and it’s relatively surgical. We go pocket by pocket and think through what we can do. Virtually all of our scores have some level of CPI inflation pricing adjustment, and then others get some additional beyond that where we consider it appropriate. I would say that we did not take very significant actions in auto and card, not worth calling out separately and beyond kind of cost of living adjustment this year.
George Tong: Got it. That’s helpful. And can you provide a little bit of detail around some of the real-time trends that you’re seeing with mortgage inquiries and some of the real time trends that you’re seeing with card volumes and auto volumes?
Will Lansing: With mortgage, I’d say the surprise is that we’re seeing a little bit of refi activity. It doesn’t take very much for people to come back in the market and try to refinance their mortgages. And so even a point of decline is enough to generate some volume that we didn’t really anticipate. Steve, maybe you want to comment on the other.
Steve Weber: Yeah, I mean, in terms of real-time, frankly, most of the reporting we get is in arrears to some degree. So the numbers you can get from industry analysts are going to be much more real-time than what we can provide. There’s a lot of industry data that’s provided on a weekly basis, that’s going to be much more real-time than what we’ll be able to give you.
George Tong: And any — what about some of the arrears numbers that you’re seeing with cards and autos?
Steve Weber: Well, I think, like card was running a lot hotter last year, right? I mean, coming out of — when the refi slowed down, there was a big pickup in card, and we’re still seeing that it kind of slowed down in about a year ago now. So it’s pretty steady. I think there’s been a lot of pullback on the subprime markets. But overall, it’s not all that materially different, the volumes are not. They’ll fluctuate a little bit depending on even what some of the bigger players might do in any one given quarter. But again, that’s probably not as across the board as mortgage, which is more driven by consumer demand, that’s tied to interest rates.
George Tong: Great. And commentary on autos?
Steve Weber: Autos, I mean, autos is relatively stable and has been through that. I mean, it’s a few percent here or there, but you don’t see a lot of volatility in the auto market, at least on the lending side.
George Tong: Got it. Very helpful. Thank you.
Operator: [Operator Instructions] And our next question is from the line of Seth Weber with Wells Fargo Securities. Please go ahead.
