James Kehoe: Yeah. But we did say, Darrin, in the prepared comments that we — this is a return to consistent margin expansion over time. So, you can imply that some of the businesses will deliver, which together with Future Forward will give consistent improvement. And obviously, we’ll spend a fair amount of time at Investor Day, bringing you through the growth algorithm, top-line growth and margin expansion. You have seen as well the Banking is really executing strongly against Future Forward and the margins are very, very strong, and as Stephanie said, probably Capital Markets, but I want to emphasize, both businesses — if you read through the comments, both businesses are growing margins in 2024.
Darrin Peller: This is just a bit of a — that’s helpful guys. This is just a bit of a follow-up to Tien-Tsin’s question. But maybe if you could provide any more KPIs really that’s providing further strength, what’s supporting the strength of Capital Markets? And then, even Banking, what can give us more confidence that this recurring revenue growth rate now is going to be sustainable? What are the driving forces? A little more detail would be great. And I’ll turn it back to the queue.
James Kehoe: It’s actually coming from the total addressable market and I think this is probably the number one topic for Investor Day which is, we will present the breakup — break the makeup of each of the businesses and what’s the relative growth in the TAM. And Capital Markets, for example is — right now, the TAM is in or about the ex-acquisition number at about 5%. So it’s got — you’ve got a favorable tailwind coming from, you’re in very, very attractive verticals in the market and they are actually at the same time expanding into new verticals. So, we’ll bring you on the journey on Capital Markets because we know people have a bunch of questions on it, but it’s supported by TAM and — total addressable market, and expansion into new TAM. And we have very, very good line-of-sight to support the guidance number we’ve provided for ’24.
Operator: Thank you. One moment for our next question. And that will come from the line of Jason Kupferberg with Bank of America. Your line is open.
Jason Kupferberg: Thanks, guys. I wanted to ask about free cash flow conversion and CapEx assumptions for 2024, and then, if you can just make broader comments around the 2024 guidance. Obviously, after the outperformance in ’23, are there any elements of conservatism in that overall ’24 outlook, either from a top- or bottom-line standpoint?
James Kehoe: I’ll cover the free cash flow conversion. We had a tremendous year this year. But sometimes you are a victim of your own success. We drove massive benefits from Future Forward. And mostly with — when you capture benefits on free cash flow, they’re one-time in nature. So, the question is what can we achieve in Future Forward next year. We would probably say that if you take out all the noise, the continuing ops cash flow was in the high-80%s to low-90%s in 2023. And we would forecast somewhere in the region of 85% to 90% free cash flow conversion. So, we’re taking it up compared to the in-going position in 2023 of 80%. Now, we’re looking at 85% to 90%. And depending on how we can manage our net working capital going forward, the long-term outlook could even be a little bit better than that.
So, we’re just — bear in mind, we’ve just spun off part of the company. We’re working through how much cash do we need in the business. We’re working through working capital programs. So, 85% and 90% for 2024, and it’s probably closer to the 90%, if you look into ’25 and ’26. And the second part of your question was…
Stephanie Ferris: CapEx and guidance. Yeah, I think on the CapEx side…
Jason Kupferberg: Any elements of conservatism — yeah. Thanks.
Stephanie Ferris: Yeah. On the CapEx side, I think we feel really good. We brought it down as you know from a high at one point of 10% last year. I think we brought it down to 9%. We’re expecting it to come down 1 point, probably sits in the 7% to 8% range as we think about continuing to invest in the business. With respect to guidance, I think what we would say, Jason, is we’re thrilled with our ability to hit and become just much more consistent in terms of what we guide and meeting expectations. We thought it was really important and we’re thrilled to be able to talk about an acceleration of revenue from 2023 to 2024, and we’re guiding consistently with how we have historically and continue to be transparent and credible.
Operator: Thank you. One moment for our next question. And that will come from the line of Dan Dolev with Mizuho. Your line is open.
Dan Dolev: Hey, guys. Great to see the guiding for acceleration in ’24, nice job. A quick question — like a question on backlog, like it was negative, flat, positive, negative, how do we connect it with the organic growth guide? Is there like a good sort of mapping that we can do to make sense out of it? Thank you.
Stephanie Ferris: Yeah, great question. So, look, I think in terms of backlog, it came in about $23 billion in fourth quarter, accelerating out of September, the third quarter, of $22.2 billion, so felt really good about that. Flat with December of 2022, so $23 billion to $23 billion. I think as we come into Investor Day, we’re going to look to give you better KPIs than this backlog number. As you know, it’s a fairly complicated accounting number. I think what we would say is, it’s consistent, it’s large and it’s durable and supportive of the adjusted growth rate revenues we’ve been giving you. But we would look to give you something a little bit more aligned and helping you understand how it compares specifically to the guide.
