The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Brian Bedell - Deutsche Bank - Analyst
: Great. Thanks. Thanks. Good morning, and thanks for doing this. It's really helpful. Maybe just on that churn rate for AxiomSL, how
would you characterize that churn rate for the business currently and how it's been trending over time? And then maybe if I could
just ask a second part on the professional services fees component as well, how volatile do you expect that to be?
Question: Brian Bedell - Deutsche Bank - Analyst
: So on that 20% contribution from professional services, do you see that going down over time if you're building the book of
cloud-based software, or do you expect that to be more like a normalized rate?
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Question: Michael Cyprys - Morgan Stanley - Analyst
: Great. Thanks for taking the question, and thanks so much for the presentation and all the details today. Really helpful.
Just wanted to come back to page 6, where you mentioned the regtech revenue guide to trend towards the lower end of the
medium-term guide for 2024. I believe that's because of the negative growth that you called out on the professional services fees
on a year-on-year basis. But if you were to apply this accounting change to the historical period a year ago, in '23, understandably,
you did not own the business for most of '23, just curious how that growth rate would compare.
Question: Michael Cyprys - Morgan Stanley - Analyst
: Great. Thanks. And then just a follow-up question, just curious, what's the scope for implementing this change for the Calypso
business, either in the near term or even over the longer term? Just curious how you're thinking about that.
Question: Michael Cyprys - Morgan Stanley - Analyst
: Is there a day where that could evolve for Calypso's business? Is that something that you see in the range realm of possibilities of
the longer term or not really?
Question: Michael Cho - J.P. Morgan Securities LLC - Analyst
: Hi. Good morning. Thanks for taking the question. I just had a follow-up to one of the, I guess, the scenarios that you laid out, Sarah.
I mean, I guess just in general for the renewals, I think maybe in slide 9 in that scenario, you talked about how the revenue uplift can
happen and, you know, at the end of the contract if there's a renewal and some price increase. So I guess just in general with the
Axiom contracts, like, is there a typical annual inflator in terms of pricing when we think about kind of typical contracts for the Axiom
clients?
Question: Michael Cho - J.P. Morgan Securities LLC - Analyst
: Okay, great. Thank you. And then, just a quick one. I don't know if there's a way to frame this or categorize this, but when we think
you've talked about some seasonality, maybe it's like for a few seasonality with professional services with Axiom in the past. But in
general, when we think about renewals of these contracts going forward for Axiom. I mean, are there any kind of seasonality, kind
of considerations that we should just have in mind going forward in terms of quarterly seasonality for any of these contract renewals
as an aggregate for Axiom itself?
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