Fair Isaac Corporation (NYSE:FICO) Q2 2024 Earnings Call Transcript

Will Lansing: Yes. So the — we’ve — the net retention rate on a non-platform is probably going to dip below 100% at some point. These are legacy products that at some point are going to shipped over to the platform. So that’s been running probably just slightly above 100% and it will probably be there for a while, but it could dip below 100% at some point. The net retention rate on the platform, it’s been very strong as long as we reported it. So it can vary, obviously quarter-to-quarter and there’s no real trend to it. You’ve seen it was — some quarters it’s been as low as in the hundred and teens and some quarters, it’s been as high as 140 plus. But we do see continually that all the customers on the platform almost without sale used more of the following year than they used the previous year. So there’s still a lot of room to expand on that. We think that’s going to last quite a while.

Simon Clinch: Okay, great. And just as a follow-up, then I mean, you’ve managed to grow this business pretty rapidly with minimal sort of expense growth recently. I’m just thinking — when we’re thinking over the next decade, what are the kind of key investment areas you’re looking at and how do we extrapolate that thinking about the durable expense growth in this business?

Will Lansing: The kind of a key expense, I would say growth, I would — growth is probably the wrong word. I think we’re happy with kind of the expense rates that we have and if anything, they’ll go down over time. But the places where we’re spending that money from an R&D standpoint are on the product, on the ecosystem and the marketplace and that side of the house. And then, I think — we also have to think a lot about broadening our distribution because as you know, we have very limited direct distribution, and we have a reasonably nascent indirect partner distribution channel. So there will be more investment on both direct and indirect sales in coming years.

Simon Clinch: That’s great. Thanks very much.

Operator: Thank you. And I’m showing no further questions at this time. I’ll now turn it back to Dave Singleton for closing.

Dave Singleton: Hey, thank you. Hey, thanks everyone for the great questions and we had another great quarter. That’s about all I need to say. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.