Thank you. Good afternoon, and thank you for attending FICO's first quarter earnings call. I'm Dave Singleton, Vice President of Investor Relations, and I'm joined today by our CEO, Will Lansing; and our CFO, Steve Weber. Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison with the prior quarter to facilitate an understanding of the run rate of the business. Certain statements made in this presentation are forward-looking under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties is contained in the company's filings with the SEC, particularly in the risk factors and forward-looking statements portion of such filings. Copies are available from the SEC, from the FICO website or from our Investor Relations team. This call will also include statements regarding certain non-GAAP financial measures. Please refer to the company's earnings release and Reg G schedule issued today for a reconciliation of each of these non-GAAP financial measures to the most appropriate comparable GAAP measure. The earnings release and Regulation G schedule are available on the investor relations page of the company’s website at fico.com or on the SECs website at sec.gov. A replay of this webcast will be available through February 4, 2026. I will now turn the call over to our CEO, Will Lansing.

Thanks Dave and thank you everyone for joining us for our first quarter earnings call. In the Investor Relations section of our website, we've posted some financial highlight slides that we will be referring to during this earnings announcement. We had another strong quarter and are reiterating our fiscal 2025 guidance. As shown on page 2 of the first quarter financial highlights, we reported quarter one revenues of $440 million, up 15% over last year. We reported $153 million in GAAP net income in the quarter up 26% and GAAP earnings of $6.14 per share, up 28% from the prior year. We reported $144 million in non-GAAP net income in the quarter, up 19% and non-GAAP earnings of $5.79 per share, up 20% from the prior year. As shown on Page 10, we delivered free cash flow of $187 million in our first quarter and $673 million over the last four quarters, an increase of 36% over the prior period. We continue to return capital to our shareholders through buybacks. We repurchased 79,000 shares in quarter one and an additional 47,000 shares in January. In our Scores segment on page six of the presentation, our first quarter revenues were $236 million, up 23% versus the prior year. On the B2B side, quarter one revenues were up 30% versus the prior year, primarily driven by mortgage originations revenues from both pricing and volume increases. On the B2C side, quarter one revenues were up 3% versus the prior year, primarily driven by revenue from indirect channel partners. First quarter mortgage originations revenues were up 110% versus the prior year. Mortgage origination revenue accounted for 44% of B2B revenue and 34% of total scores revenue. Auto origination revenues were up 5% while credit card, personal loan and other originations revenues were down 3% versus the prior year. This week we issued a press release on the study we conducted with our partner, Affirm. That study concluded that the inclusion of Buy Now Pay later loan data can drive a FICO score increase for some consumers while improving model risk performance for lenders when applying FICO's innovative treatment to that data. The study also helped inform responsible furnishing of Buy Now Pay later loans to the credit bureaus. We're currently working with stakeholders to identify the best way to introduce our proprietary treatment of this data to the credit scoring marketplace. We'll be sharing more details soon. We continue to drive strong adoption of FICO Score 10 T for non-GSE mortgages. This quarter, loans utilizing FICO Score 10 T began trading on MCT Marketplace, the largest mortgage asset exchange for the U.S. secondary market. In addition, Cardinal Financial formed and traded the first government-issued mortgage-backed security featuring loans powered by FICO Score 10 T. I'm proud of these strong achievements and look forward to continued progress in the quarters ahead. We now have clients with over $261 billion in annualized mortgage originations and approximately $1.43 trillion in eligible mortgage portfolio servicing that have signed up for FICO Score 10 T, with some firms already adopting FICO 10 T to make credit decisions for securitization and for delivery to investors. FICO 10 T for conforming mortgages sold to the GSEs will be rolled out based on the timeline of the FHFA's implementation of enterprise credit score requirements. In January, the FHFA announced it no longer has a specific timeline for the implementation. In our software segment we delivered $204 million in quarter one revenue, up 8% from last year. Revenue increase was driven mainly by growth in SaaS software and license revenue, partially offset by the foreign exchange rate impact. We continue to drive growth in ARR and NRR through our Land and Expand strategy with expand driven by increased customer usage. As shown on page 7, the total ARR was up 6% with platform ARR growing 20% and non-platform ARR of 1%. Total NRR for the quarter shown on page 8 was 105% with platform NRR at 112% and non-platform at 100%. Foreign exchange had a negative impact of 2% on total ARR and 3% on platform ARR. ACV bookings for the quarter were $21.2 million compared to $18.3 million in the prior year. We continue to drive our software business forward. Our investments are helping progress development of new FICO platform capabilities, partner channel adoption, FICO marketplace realization and building scalability to improve our cost structure. We continue to be recognized for our innovation. This quarter, FICO was awarded Best Anti-Fraud Solution at the Credit and Collections Technology Awards. The award was given to the FICO Customer Communication Service Scam Signal Solution which uniquely uses telephony signals to detect potential scams. Our innovative work using blockchain technology for responsible AI model governance yielded the Tech of the Future Blockchain and Tokenization Award at the Banking Tech Awards and won a Software Category Transformative Product Award at the Big Innovation Awards. Our software business will be on display this year at FICO World Event which will take place in Hollywood, Florida in May. At this four-day event, we'll bring together industry professionals from around the world to connect, share best practices and learn how FICO enables organizations to power customer connections at scale. We'll highlight successful clients and demonstrate the power of the FICO platform, enabling companies to operationalize analytics, become more composable and make better decisions at scale. I'll now pass it over to Steve to provide further financial details.

Thanks Will, and good afternoon everyone. As Will mentioned, we had another good quarter with total revenue of $440 million, an increase of 15% over the prior year. Scores segment revenues for the quarter were $236 million, up 23% from the prior year. B2B revenues were up 30% driven primarily by mortgage originations revenues, as Will said, from both pricing and volume increases. Our B2C revenues were up 3% versus the prior year due to increased revenue from our indirect channel partners. Software segment revenues for the quarter were $204 million, up 8% from the prior year, hindered by foreign exchange rate impact. On-premises and SaaS software revenue grew 10% year-over-year while professional services declined 14%. This quarter, 87% of total company revenues were derived from our Americas region which is a combination of our North America and Latin America regions. Our EMEA region generated 8% of revenues and the Asia Pacific region delivered 5%. Our total software ARR was $729 million, a 6% increase over the prior year. Platform ARR was $228 million representing 31% of our total Q1 25 ARR and was up 28% and up from 28% of total Q1 24 ARR. Platform ARR grew 20% versus the prior year while non-platform grew 1% to $501 million this quarter. As a reminder, foreign exchange had a negative impact of 2% on total ARR and 3% on platform ARR. We continue to focus on FICO platform growth while retaining our non-platform customers. Over time we do expect migration of those non-platform customers to platform products. Our platform land and expand strategy continues to be successful. Our dollar-based net retention rate in the quarter was 105%. Platform NRR was 112% while our non-platform NRR was 100%. Platform NRR was driven by a combination of new use cases and increased usage of existing use cases. Our software ACV bookings for the quarter were $21.2 million compared to $18.3 million in the prior year. Turning now to expenses for the quarter as shown on Page 5 of the financial highlight presentation, total operating expenses were $260 million this quarter versus $257 million in the prior quarter, an increase of 1.5%. We anticipate our expenses increasing modestly throughout the year, which will again include costs for FICO World in our third quarter. Our non-GAAP operating margin as shown in our Reg. G schedule was 50% for the quarter compared with 48% in the same quarter last year. We delivered non-GAAP margin expansion of 209 basis points year-over-year. GAAP net income this quarter was $153 million, or 26% from the prior year. Our non-GAAP net income was $144 million for the quarter, up 19% from the prior year's quarter. GAAP earnings per share this quarter were $6.14, up 28% from the prior year and our non-GAAP earnings per share were $5.79, up 20% from the prior year. The effective tax rate for the quarter was negative 1.6%. The operating tax rate was 24.3%. The effective tax rate for the quarter includes $40 million of reduced tax expense from excess tax benefits recognized upon the settlement or exercise of employee stock awards. As a reminder, excess tax benefit does not impact our non-GAAP net income. For the full year we expect our net effective tax rate will be around 22% and our recurring tax rate will be around 26%. Free cash flow for the quarter was $187 million, a 55% increase from the same quarter last year. Free cash flow was $673 million over the last four quarters, which was an increase of 36% over the prior period. At the end of the quarter we had $230 million in cash and marketable investments. Our total debt at quarter end was $2.42 billion with a weighted average interest rate of 5%. Currently, 53% of our total debt is fixed rate. Our floating rate debt is prepayable at any time, giving us the flexibility to use free cash flow to reduce outstanding floating rate debt balances in future periods. Turning to return of capital, we bought back 79,000 shares in the first quarter at an average price of $2,015 per share. We purchased an additional 47,000 shares in January at an average price of $1,905 per share and we do continue to view share repurchases as an attractive use of cash. With that, I'll turn it back to Will for his closing comments.

Thanks Steve. The macroeconomic environment remains fluid, but our strategy and execution remain consistent. We're well positioned for this fiscal year and remain confident in the guidance we provided last quarter. Our software and scores businesses continue to be best-in-class. Our software customers are delighted by our ability to help them optimize interactions with their end customers through data-driven composable solutions that are executed in real time. Fiscal 25 marks the second year of the FICO Educational Analytics Challenge Program which was created to encourage students in data science, engineering, and technology. To date, we've partnered with seven colleges and universities. This year, students in this program are getting hands-on experience learning to develop analytics AI models to detect fraud. In our Scores business we expanded our Global Financial Inclusion Initiative through our Lenders Leading Inclusion Program. FICO provides cutting-edge alternative data scores and financial inclusion strategies to lenders so they can responsibly expand access to credit for underserved communities. On the innovation side, we're in talks with resellers and close to launching our FICO Score Mortgage Simulator which enables mortgage professionals to run credit event scenarios by applying simulated changes in an applicant's credit report data to simulate potential changes to the applicant's FICO score. With that, I'll turn the call back to Dave and we'll open up the Q&A.

Thanks, Will. This concludes our prepared remarks. We are now ready to take questions. Operator, please open the line.

Thank you. Our first question comes from Manav Patnaik from Barclays. Your line is open.

Thank you. Will, I just had a big picture question and you talked about the FHFA pushing out the directors on bi-merge and the scoring. They've got a new director in there. There's talk of the GSE privatizing. Just how do you look at these changes? Do you think GSE privatization has any impact on the status of the FICO score? Any kind of broad color around that would be helpful.

Sure. Well, so the decision by the FHFA to push out to an indeterminate date, the implementation of bi-merge and a two score system is not really surprising. I think everyone in the industry believes that the industry is not ready to make this move. And so there's really not a lot of surprise there. With respect to the GSEs, I think it's important to recognize that before the GSEs ever entered conservatorship, they had selected the FICO score and were using the FICO score in evaluating the paper that they then securitized and passed to investors. And so, obviously, that's continued through the present time. In a world which who knows whether the GSEs will come out of conservatorship or not, but in a world in which potentially they would, we don't really see a lot of change. I mean, if you go back to the fundamentals, the FICO score is really the best way for investors to understand the risk in the paper that they're buying. And we don't see that changing, whether the government is more or less involved with the GSEs. And I guess I would further point out that in every other market, where the government is not involved, we have a very strong market share because of the efficacy of the score. So a long way of saying there is not a lot of change.

Okay. Fair enough. And then, Will, if I can just ask you on the software business. I think you were expecting ARR to be in the 30%, and now we're talking 20%. Was there something in the quarter timing-wise, bookings or can you just talk about if 20% now is the new growth rate we should be thinking about?

Yes, I'm glad you mentioned that. I wouldn't place too much significance on any specific quarter. This quarter, we experienced some impact from foreign exchange. However, the main factor is that it reflects previous bookings, and we had a few quarters with weaker bookings. Our outlook for the long-term growth trajectory of the platform business remains unchanged, which is around 30%. Therefore, I wouldn't overanalyze this quarter's results.

Yes. And Manav, we actually do expect ARR to accelerate in the back half even in the coming quarters. So we knew this was going to be a lighter quarter because, again, like Will said, the weaker bookings we had the first couple of quarters last year, and then we got hit by the foreign exchange, particularly in Brazil, that had a pretty significant impact this quarter.

Okay, thanks a lot guys.

One moment for our next question. Our next question will come from the line of Jason Haas from Wells Fargo. Your line is open.

Hey good afternoon and thanks for taking my questions. I'm curious if you could talk about how fiscal 1Q came in versus your expectations? And the genesis of the question is, I'm curious, I know you're holding the guidance, but I'm curious if there's any less conservative now than it was prior to the results of this quarter coming in?

Well, I would say that we're not really surprised. As you know, we provide conservative guidance, and I think that our internal view on interest rates was more conservative than the general market view, and we built our guidance around that. So for us, no change to our guidance, and really no surprise in terms of what we're seeing right now.

Yes. I would just like to add that this aligns closely with our plan. The Scores business has a lot of seasonality, so comparing year-over-year from the fourth quarter to our first quarter makes sense. Looking ahead to Q3 and Q4, it's difficult to predict what the current rate environment will bring, but we didn't anticipate changes happening this quickly. Overall, this outcome was in line with our expectations.

Got it. That's helpful. I know we're still in the early part of the calendar year, but I was curious if you could share any insights on the new pricing for mortgage scores and auto scores.

Well, I mean it is very early, but we have socialized the pricing for 2025 and everything’s gone just as expected and no real issues.

We don't see really any elasticity...

Helpful, yes. Thank you.

One moment for our next question. Our next question will come from the line of Faiza Alwy from Deutsche Bank. Your line is open.

Yes, hi thank you. I wanted to follow up on the software question and just your confidence in accelerating platform ARR back to 30%, can you give us a bit more color on what's driving that confidence? Do you expect sort of increased usage? Is there a new business that you're expecting? And just a bit more color on where you're getting more traction.

Yes. And so your question suggests the answer. The usage, we obviously don't control. That part of the equation moves around and it kind of depends on what the customers do. And so this particular quarter, we had lower usage. In terms of predictability, and do we have confidence in the rate accelerating back into the 30% range, we do have that confidence. And that's because of a direct flow-through from bookings. So we know what the bookings look like that will be driving ARR growth in the future. And so we have a high level of confidence.

Yes, there is a timing aspect between when something is booked and when it goes live. We can track when things will go live and at what point they will contribute to ARR. Over the last few quarters, we have experienced strong bookings and have a solid understanding of when these will go live and when the ARR will begin. As mentioned, understanding usage is more challenging, but we have a clear idea of when the deals we've signed will go live and the type of ARR they will generate.

Understood. And then just as a follow-up on the Scores business. I think you mentioned higher volume in mortgage. I'm curious if you can give us a bit more color on what you're expecting in terms of volume across the verticals for this year? Sort of what's embedded in the guide, just given the fact that we have seen sort of rates go back up between November.

I could ask you the same question about the future. We all have our crystal balls. We really don’t know what direction interest rates will go or when they'll come down. We also don’t know when the volumes will increase as a result of rates coming down. Our guidance was based on the expectation that rates wouldn’t decrease much in 2025, and so far, things are aligning with our expectations. If rates do come down in the latter half of the year, it would be a significant advantage for us. If they don’t, we are ready for that, and our guidance takes that into account.

Understood. Thank you.

Thank you. One moment for our next question. Our next question will come from the line of Surinder Thind from Jefferies. Your line is open.

Thank you. Following up on the platform ARR question, it looks like it was mostly related to just a slowdown in the NRR at particular clients. So is the messaging here it was predominantly just usage and that things just kind of slowed down? Or how should we think about that? Like what percentage of revenue is characterized...

A lot of it is usage. So I mean you're absolutely right. A lot of it's usage. But some of it is lower bookings that are now flowing through.

Yes. The net revenue retention is related to usage. We did not experience churn or customer departures. However, for certain products, customer usage can fluctuate significantly from quarter to quarter. In some instances, customers may have reduced their usage towards the end of the calendar year to cut costs, which is a common occurrence. This seasonality affects different aspects of their usage. That was the main factor behind it. We anticipate that usage will return to normal levels, and we also expect newly sold business to start contributing.

Got it. So it seems that if usage returns to normal, there will be a sort of double bounce back effect, right? Because you'll get working...

Exactly. Exactly. Yes.

And then fair enough. And then in terms of just the FICO 10 T and the non-GSE usage adoption. Can you talk a little bit more about that? And then maybe contrast that with the kind of the delay at the FHFA in terms of the timeline being suspended for implementation. Does a bifurcation in the market between classic FICO and 10 T have any implications that we should be aware of from securitization or other considerations here as we think about this longer term? Because obviously, it sounds like on one path, there's a certain number of entities that are going down the top of 10 T, but then with conforming, we may not be going down that path.

That's an interesting question. We need to recognize that the FICO Classic score, which has been utilized in the mortgage market for 25 years, is a highly effective predictive score. It functions very well and has historically offered investors a clear understanding of what they are purchasing and the associated risks. FICO 10 T is an improvement—some believe it's significantly better, while others think it's only slightly enhanced. Regardless, it has enough advantages to attract customers who prefer it. However, I don't believe the insights provided by 10 T are drastically different from those of the classic FICO score. Therefore, I don't foresee any major concerns from investors regarding which score is being used for securitizing those portfolios. I anticipate that both scores will be utilized without significant issues.

Okay, thank you. That’s helpful.

One moment for our next question. Our next question will come from the line of Owen Lau from Oppenheimer. Your line is open.

Thank you for taking my question. So go back to the ACV bookings, it was strong in the first quarter. Could you please talk about the pipeline and outlook of bookings over the next quarter or so? Do you expect this to also accelerate to also drive high ARR going forward?

Yes. I mean, honestly, we have a strong pipeline. But again, we will have volatility in that bookings number. Some quarters will be really good, some quarters won't be as good because we don't have thousands of bookings. We have a fairly small number, and some of them are pretty large, and they can move from quarter to quarter. So there's still a lot of interest in these products. We still have a strong pipeline, but it's hard to put hard numbers out there about what we expect in the next couple of quarters. We think we'll have a good year for bookings. But every year, every quarter, there's some volatility in that. But again, we put up two quarters that we're really happy with, the last two quarters, and that's going to have an impact as we move through the year in terms of ARR.

Got it. And then on the expense side, could you please add more color on that? I think you mentioned expense will go up from here. And in the third quarter, there will be FICO World. Any more color you can add in terms of how much increase from the first quarter runway from here? Thanks.

Yes. It's not all that significant. And if you put together a model with the guidance we gave you there's no change to that. But there are some things that are nonrecurring. The FICO World adds probably $5 million, $6 million in our third quarter that we won't see yet in our second quarter. So there are things like that to come along from time to time. But we won't have any material step function type expense increases throughout the year.

Thanks a lot.

One moment for our next question. Our next question will come from the line of Kyle Peterson from Needham. Your line is open.

Thank you for taking the questions. I wanted to begin with capital allocation. It appears that you increased the buyback in January when the stock began to decline. Should we expect you to maintain this approach if the stock remains below its highs despite your performance?

Yes, we believe FICO stock presents a strong value at the current levels of $1,800 to $2,100, similar to our perspective last quarter. Over time, we aim to consistently participate in the market through regular purchases that utilize our cash flow and keep our leverage at a manageable level. However, when the stock price falls, we sometimes increase our buying activity, and we have significant authorization available to allow for that if we decide to increase our purchases. In summary, we have confidence in the stock's value as it stands, and we are open to acquiring more.

Okay. That's really helpful. And maybe just a follow-up on the guide. I think kind of looking at from when you guys last reported to now, I guess, obviously, you guys are reiterating the guide. It does look like the mortgage environment seems a little worse, I guess. Could you walk us through, did you guys just have maybe a more conservative assumption than the market had in November when you guys guided? Or are there any other offsets or moving pieces we should be mindful of that helped offset incremental mortgage softness.

I think it's really a combination of two things. One is I think we did have a more conservative view, a less optimistic view of the future of rates several months ago when we put together the guidance than the market. Certainly, at the time we put our guidance out there, people anticipated a lot more rate cuts in 2025 than we're likely to get. So that is part of it. On top of that, you have a management team that always wants to hit its numbers. And so we're conservative. We'll do our best estimate, and then we'll haircut it to make sure we come in. And so it's both listings. We had a more conservative view and then we add the conservatism on top of that.

And Kyle, I think this is pretty consistent. We did the same last year. If you look back, we guided numbers, and people expected multiple rate cuts in 2024 that didn't happen. So we planned for a situation where we wouldn't rely on something that hasn't occurred yet. We did the same thing here. Frankly, our first quarter mortgage probably performed better than what we had in our guidance because we were very conservative. By planning this way and guiding accordingly, it gives us a little bit of upside even when circumstances are not as positive as people might expect.

Okay, that’s helpful color. Thank you.

Thank you. One moment for our next question. Our next question will come from the line of George Tong from Goldman Sachs. Your line is open.

Hi, thanks. Good afternoon. With your card and personal loan revenues, they were down 3% year-over-year in the quarter. Can you talk about some of the trends that drove this decline?

Yes. I mean it's kind of what you see in the industry, right? There's kind of a little bit of a pullback in consumer lending. We also have the underneath our numbers, you might see some mix shifts. So some of the users that are paying a little higher unit cost might be harder hit than some of the bigger operators that are paying a lower unit cost. But yes, 3% is kind of in line with what you're seeing in the industry. I think that typically is a lighter quarter anyway. And I think there's been a conservativeness among the banks in terms of lending. We've seen that in multiple verticals.

Got it. That's helpful color. And then going back to the software business, you mentioned seeing lower platform usage in the quarter. Can you talk more about some of the key catalysts that can drive higher usage levels?

It varies from customer to customer. In certain situations this quarter, we noticed less usage on the platform, which could be attributed to several factors. For some customers, they might reduce usage during the holidays if they feel there isn't much receptiveness to those messages, or they could be cutting back to save some money. It really depends on the customer. Generally, though, there is some seasonality in that business.

And George, keep in mind that the CCS product serves both a collection use case and a fraud use case. As the year progresses, different customers will engage with these features differently; some will focus on collections, others on fraud, and some may not use either. These factors all influence how usage may increase.

Got it. Helpful. Thank you.

One moment for our next question. Our next question will come from the line of Jeff Meuler from Robert W. Baird. Your line is open.

Yes, thank you. Good afternoon. Can you just help us kind of understand the typical timeline for mapping ACV bookings into ARR? I get it that there's this usage component. But like are the Q1, Q2 of 2024 ACV bookings kind of flowing into ARR now? Or just like what's the typical timing?

Yes, it varies, but generally, it takes at least 6 months and likely closer to 9 to 12 months for implementation and full operation. The lighter bookings we experienced early last year mean that there will be fewer new offerings available right now, which is tied to last year's bookings. However, the bookings we've made in the past couple of quarters are promising for increased ARR growth in the latter half of this year, keeping in mind the 6 to 9 month lag between the two.

Got it. You mentioned that the ARR FX headwind was three points to platform. Was that a year-over-year or sequential figure? I know you've been asked this in many different ways, but could you clarify how much of the platform revenue is driven by usage? What has the sequential trend been for ARR in relation to the platform? The change has been quite significant.

Yes. Well, that's on a constant currency basis. So if we had not had changes to the FX, we would have had an extra 3% of ARR this quarter versus last year.

Okay, thank you.

One moment for our next question. Our next question will come from the line of Ashish Sabadra from RBC. Your line is open.

Thank you for taking my question. I had two clarifying questions. First one on the B2B. When we look at the mortgage, auto and card origination revenue, those improved year-on-year compared to fourth quarter, but the overall B2B revenue moderated. So I was just wondering if you can comment on what caused that softness? Is it prescreening or some other revenue stream there within B2B scores?

Are you referring to the third quarter or the period from the fourth quarter to the first quarter, as we are looking at it sequentially?

Yes or if you look at the year-on-year growth. Yes, sorry.

I'm not sure what you mean, could you please repeat the question? I'm not clear on what the year-on-year comparison was, but everything is up.

Yes. When I examine mortgage originations, there was an improvement from 95% growth to 110%. Auto and card also showed improvement. However, B2B revenue growth was strong year-on-year but decreased from 38% in the fourth quarter to 30% in the first quarter.

I'm not certain about the specific numbers you're referring to. There is a substantial part of the business that doesn't come from originations. Those segments do not expand nearly as quickly as some of the origination segments. Overall, B2B grew 30% year-over-year. While many areas experienced rapid growth, segments like the prescreen business, account management, and certain international aspects did not grow as quickly. These segments can vary, particularly if we have a one-time licensing event with a foreign client, which could lead to a slight increase in growth for that quarter. However, we did not have anything like that for this quarter.

Okay. That's helpful. Yes, just from a modeling perspective, we were trying to better understand if there are any other puts and takes to be cognizant of as we look for the rest of the year?

No, there are often occasional one-time license deals that can contribute a few million dollars and potentially boost growth by a couple of percent. However, it's difficult to predict when these deals will occur. Therefore, the most reliable metrics to focus on are likely around originations, as they have a more significant impact.

That's very helpful color. And maybe just a quick one on B2C. It's good to see that inflection in growth there. I was wondering if you could talk about some of the trends that you're seeing on myFICO and how should we think about the growth going forward? Thanks.

Yes, we experienced significant growth during the refinancing boom, but faced tough comparisons afterward. Now that we've passed those challenges, we believe there's substantial potential for growth. We've been investing in our B2C segment and implementing new marketing initiatives. Although it will take time to see the results, we are optimistic about our myFICO business and expect to witness continued growth throughout this year.

That’s very helpful color. Thanks.

One moment for our next question. Our next question will come from the line of Alexander Hess from JPMorgan. Your line is open.

Hi, everyone. This is Alex from JPMorgan. Your guidance suggests about 15% year-on-year revenue growth, which aligns with where you ended in the first quarter. It appears stable from that perspective, and you mentioned that it's conservative, but you also expressed confidence in the guidance. Thinking beyond mortgage pricing, are there any new revenue streams you would highlight? I realize this is another question about the guidance, but everyone is trying to understand the source of this confidence.

Yes, I believe that aside from pricing, there are many factors to consider. Even when looking at some of our volume expectations, we faced some tough quarters last year in terms of volumes that should fare significantly better this time. We anticipate a return to more typical levels. Therefore, there are numerous areas where we feel confident that we will have no issues meeting our guidance for the remainder of the year.

Got it. Understood. And then just on the FX side, could you dimension what the impact was to revenue specifically on the software and consolidated side?

Yes. It was all on the software side essentially. And it was in a few particular currencies, but I think it was around $4 million.

I'll look for it.

Understood. Thank you all.

One moment for our next question. Our next question will come from the line of Simon Clinch from Redburn Atlantic. Your line is open.

Hi everyone. Thanks for the opportunity to ask my question. I wanted to revisit the topic of the GSEs. There has been some conversation about the possibility of the GSEs potentially going private and beginning to implement cash flow modeling internally alongside their credit scoring capabilities. I would like to know how that process would work, and whether FICO would still play a role in that situation, if it were to occur.

I don't know how that would work. It's hard for me to imagine these entities going away from the FICO Score. I mean I think we have a mortgage system in the United States, which is the MV of the world. And the risks are well understood by the investors. The securitization market works a dream. And so it's just very hard for me to imagine them moving away from the FICO Score, which is so effective for supporting the analytics in that market.

And frankly, they wouldn't be mutually exclusive, right? They would be complementary.

Yes. And it has been the case. It's always been the place that Fannie and Freddie have their own models. It's not just a score, right.

Understood. Okay. That's useful. And just a quick follow-up question, just on the mortgage market. I mean, could you give us an indication of the magnitude of volume growth that you did see in the quarter?

No. We don't detail out all that. But you can look at reporting that comes from mortgage bankers and other groups to kind of see what those numbers look like.

One moment for our next question. Our next question will come from the line of Scott Wurtzel from Wolfe Research. Your line is open.

Hey good afternoon guys. Thank you for taking my questions. I just wanted to go back to the software business. I mean it sounds like you're pretty positive on the forward pipeline. But we if you can kind of dimensionalize sort of how the broader demand environment looks, now that we've kind of turned the calendar to 2025 budgets are reset and just kind of characterize maybe the demand environment and how budgets are looking relative to last year? Thanks.

We don't see a tremendous amount of change in appetite for our products from a demand side. I think that we're years ago, our point solution applications were under more budget pressure and were the kinds of things that sometimes got deferred. I think that the strategic nature of the platform kind of transcends that. And so not that we're not affected by the fiscal environment of our customers. But it is a high-level decision. It is strategic for our customers. And so we have not experienced a lot of slowdown there.

Got it. That's helpful. And then just a quick clarification. Just on the Scores margins, we saw kind of a step down there quarter-over-quarter year-over-year with a notable uptick year-over-year in expenses. Just wondering if you can kind of give a little bit of context around that. Was there anything to do with mix? Anything around that would be helpful.

No. There's a bit more spending on the B2C side. The B2C side has a different cost structure, and we're investing there and undertaking some marketing initiatives.

Thank you. One moment for our next question. Our next question will come from the line of Matthew O'Neill from FT Partners. Your line is open.

Hi, good afternoon. Thanks so much for taking my question. A lot of good questions asked and answered, particularly around the guide and outlook for the remainder of the year. So I think maybe we could spend a moment or two digging in further on the press release out today on the study done with Affirm and maybe give us a little bit more of a view on the longer-term integration of Buy Now Pay Later into the FICO modeling and how that may sort of develop and so forth. Thank you.

Buy now, pay later is increasing in popularity. The credit bureaus have varied approaches to how they manage it. Understanding consumer repayment behavior with buy now, pay later is definitely valuable. We are collaborating with Affirm to combine their data with ours to enhance predictive capabilities by integrating buy now, pay later information with other aspects of credit files in the FICO score. We are excited about this future direction. Incorporating alternative data that hasn't typically been included in credit files will lead to better decision-making. This presents a significant opportunity for our customers, though we are still in the early stages. The maturity of data handling across the bureaus is still developing, and we are focused on improving that process.

Got it. Thank you so much. And I guess as a quick follow-up, have any other players in the space volunteered for the invitation in the press release?

We've been working with Affirm for quite a while.

Got it. Thanks again.

Thank you. I'm not showing any further questions in the queue. I'd like to turn the call over to David for closing remarks.

Yes. Thank you, Victor. I'll just comment on Alex asked a question about FX impact on revenues. So the number was $3 million for total revenue. It's about 1% of total revenue or about 1.5% of software revenue. But overall, thanks, everyone, for attending the earnings call today. Please stay tuned to fico.com and LinkedIn to keep up to date on the latest news as we kick into our FICO World event. Thank you very much.

Goodbye.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.