Will Lansing: So I think that it’s fair to put some of the explanation on macro environment, because what we’re not seeing is losses to competition. What we are seeing is projects deferred or taking a little bit longer. And so I think it’s very fair to attribute some of that to the macro environment.
Surinder Thind: Got it. And then, I guess, turning to the non-platform piece. When you think about volumes versus pricing, I think you mentioned CPI, but just any other color that you can provide? Is this mostly growth within like Falcon or how does pricing work here? Is it just CPI is the right number and that’s how it should continue or how should we think about that?
Will Lansing: There — so as you know, the non-platform business is very mature and we’re deeply embedded and yet our customers prefer to — often prefer to renew and renew and renew. And so there’s a cycle of multiple renewals typically associated with our licensed software, with our — and with our legacy and non-platform software. You know, our philosophy is to not push the limits on pricing there. These are — the customers are the same customers who are buying platform from us and customers that we’ll have a relationship with for the next 20 or 30-years. And so it’s not about harvesting and gouging. We raise our prices to cover costs of adding features and functionality and cyber security and keeping the products current. But we’re not really pushing the limits of what could be done on price there and don’t really intend to.
Surinder Thind: Got it. Thank you. I’ll get back in the queue.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Kyle Peterson with Needham. Your line is now open.
Kyle Peterson: Great. Good afternoon, guys. Thanks for taking the questions. I wanted to start on capital return. Obviously, it looks like you guys bought back a little bit more this past quarter than the first quarter. How should we think about the pace of buybacks in the back half of the year? Obviously, you’ve seen a bit of a pullback in the shares, the market and such and then also just given some of your comments on potential for free cash flow to accelerate as the year progresses. Just want to get your opinion on how you guys are thinking about that over the next few quarters?
Will Lansing: We remain as committed to buy back as we have ever been, and it is our intent to continue to spend at least our free cash flow and often in excess of our free cash flow on buyback every year. And I don’t expect that would change. Our leverage has slipped a bit as our earnings have gone up. And I guess that’s a happy bonus of being more profitable. And in the fullness of time, you’ll see that reflected in increased buyback.
Kyle Peterson: Got it. That makes sense and that’s helpful. And just a follow-up, I guess in the professional services piece of the business, I guess that revenue is falling off a bit. I get that it’s lower margin, but just want to get your sense as to kind of is this, call it, $19 million to $22 million a quarter? Is that kind of a good range to use moving forward, given the mix of the business that you guys are selling? Or was there anything kind of onetime in this past quarter that dragged it down a bit below historical level?
Will Lansing: I think it’s a reasonable range to anticipate going forward. We love our professional services and yet we’re not a professional services company, first and foremost. We’re a software company. And so our goal with professional services is to provide enough PS to manage quality installs and keep our customers happy. We’re also delighted to have partners do the installation from us and we’re bringing up partners to do some of that work. I don’t imagine that our PS will shrink much more than it already has. As you know, it’s come down quite a bit. And we’re probably pretty close to where I think we’re at kind of a base level that it would be hard to imagine going below.
Kyle Peterson: Got it. That’s good color. Thanks, guys.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Ashish Sabadra with RBC. Your line is now open.
Ashish Sabadra: Thanks for taking my question. I just had a quick question on the expense trajectory. I was wondering if you — what should we expect there, both in terms of either sequential or year-on-year growth in expenses for the rest of the year? Thanks.
Steve Weber: Yes. So we had — as we said, we had FICO World this quarter. So there’s a — that’s a pretty significant expense for us. So you’ll see an increase in our Q3 spending by a little bit that’s associated with that. And then the fourth quarter would probably be relatively flat to that or maybe even down a little bit, but we don’t expect any significant uptick in expenses the rest of the year. Really, it’s basically due to FICO World being held this quarter.
Ashish Sabadra: That’s helpful color. And maybe just from a modeling perspective, the on-prem software, again, the de-emphasis there, that’s maybe one of the reasons why that piece of the software revenues has been muted. How should we think about that going forward? Any color?
Will Lansing: What? On-prem software?
Ashish Sabadra: Yes.
Will Lansing: So I mean, we’re focused on — we’re cloud-first, right? So we really are focused in the cloud. But if our customers want to run on-prem that we will sell it to them that way there. But I would expect that the on-prem piece is probably not going to grow a lot, but it’s probably not going to shrink a lot either because a lot of those are deeply embedded and it’s going to take years to move into the cloud.
