Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Clearwater Analytics Second Quarter 2023 Financial Results Conference Call. At this time, all participants are in a listen mode only. After the speakers' presentation, there will be a question-and-answer session. And now I would like to welcome Joon Park, Head of Investor Relations to begin the conference.

Thank you, and welcome everyone to Clearwater Analytics' second quarter 2023 financial results conference call. Joining me on the call today are Sandeep Sahai, Chief Executive Officer; and Jim Cox, Chief Financial Officer. After their remarks, we will open the call to a question-and-answer session. I would like to remind all participants that during this conference call any forward-looking statements are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Expressions of future goals intentions and expectations, including in relation to business outlook, future financial and product performance and similar items, including without limitation, expressions using the terminology may, will, can, expect and believe and expressions, which reflect something other than historical facts are intended to identify forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including those discussed in the Risk Factors section of our filings with the SEC. Actual results may differ materially from any forward-looking statements. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events that may arise after this conference call except as required by law. For more information, please refer to the cautionary statements included in our earnings press release. Lastly, all metrics discussed on this call are presented on a non-GAAP or adjusted basis and include the results of JUMP Technology since the acquisition on November 30, 2022, unless otherwise noted. A reconciliation to GAAP results can be found in the earnings press release that we have posted to our Investor Relations website. With that, I'll turn the call over to our Chief Executive Officer, Sandeep Sahai.

Thank you, Joon. And welcome to our Q2 earnings call. Allow me to start by saying that I'm incredibly proud of the entire Clearwater team for our outstanding execution in Q2. There are four key areas where we executed very well. One, we successfully brought both large and small clients live. And even more impressively, we saw best-ever customer satisfaction and NPS scores. Second, the sales team had a very good quarter, and they continue to win against competitors who largely offer legacy solutions. Third, we continue to see positive impact from the commercial model we rolled out last year. And fourth, we continue to innovate and deliver products that address our customers' pain points. Let's dive into each of these. First, let's start with operational excellence. We have been investing increasing maturity and scalability of our onboarding team, and Q2 was a testament to how far they have come. Aviva is fully live on our platform. As you know, Aviva is a leading U.K. provider of insurance, wealth and retirement products serving over 18 million customers. They have the global assets on our platform and we provide a daily comprehensive view of their portfolio consisting of more than £350 billion in AUM. Achieving this milestone is very significant, because we had to build unique functionality specific to Europe; including asset class coverage, coverage for local accounting standards and regulatory reporting for countries across Europe. With this accomplishment, we have proven to the market that we can handle the highest level of complexity in Europe, combined with the multi-country onboarding of FWD in Asia. Our platform is now used by large sophisticated customers across the world. Other major go-lives in Q2 included Amica Mutual Insurance, Greenwich Investment Management and Highmark Health to name just a few. In Q2, we saw…

Thanks, Sandeep, and thank you all for joining us. We're very proud of our Q2 2023 results. Let me start with the top line and the metrics that drive revenue. In Q2 2023, we delivered $89.9 million in revenue which translates to 22.4% year-over-year revenue growth driven by solid expansion at our existing clients and continued strong on-boarding activity by our operations team. Over the last few quarters, we've completed 83 onboarding programs. And in Q2 those onboarding program had an average duration of just over six months. With time to value like that, it's not surprising that so many prospects are choosing Clearwater. We reported annualized recurring revenue or ARR at the end of the second quarter of $349.5 million, an increase of 20.4% year-over-year. This is particularly satisfying, when we look back one year to Q2 2022 and recall the worry over asset price value and our announced transition from AUM pricing to the base plus model. I expect not many investors would have predicted back then that our durable, reliable 20-plus percent growth would remain intact one year into the future. Today, we remain even more optimistic about our future for one reason, our clients. Clients stay with us as evidenced by our return to 98% gross retention as of June 30, 2023. That's the 17 out of the last 18 quarters for which gross retention has been 98%. More importantly, clients grow with us, as evidenced by our net revenue retention rate of 109%, as of June 30, 2023. We are seeing success within our client base by doing more for our clients. And this in fact is the true NPS dividend. We aspire to expand NRR to 115% or beyond because we believe we can help our clients do more. We've completed the foundational elements…

Thank you, Jim. As I reflect on the second quarter, I'm incredibly proud of the exceptional team we have at Clearwater. We remain laser-focused on our mission to revolutionize the investment management industry. By every measure our growing portfolio of product offerings are undeniably best-in-class. I'm particularly excited about the potential for generative AI and its capabilities to ignite new opportunities that will disrupt and transform the fintech sector. Our team at Clearwater continues to innovate boldly consistently meeting our clients' ever-changing needs. At the end of the day, seeing our clients satisfied with our platform and growing their assets under management, matters the most to us. When they achieve their goals, we achieve ours. Thank you.

[Operator Instructions]. Our first question is from Peter Heckmann with D.A. Davidson. Your line is now open.

Hey good afternoon. Thanks for taking the question. Can you comment a little bit in terms of the onboarding you said 83% in the first half and you're speeding the go-lives? I guess is that -- how do you think about it in terms of average size of the clients? Are they getting larger staying about the same?

Thanks Pete. This is Jim. Can you hear me okay?

Yes.

Okay, great. I just wanted to make sure I was on mute, sorry about that. So, yes, so those are 83 programs. So, some of those could be onboarding of additional assets at some of our larger existing clients onboarding additional products and solutions as well as onboarding -- Sandeep spoke about Aviva, one of kind of top 20 insurance companies across the globe, right? So, there's a broad variety across those. I think what it comes down to -- it's less about the number although that's very impressive. It's more about shrinking the size and shrinking the period of time it takes for clients to get to value and that really comes down to a few elements. Number one, it's the network effect, right, as we're adding more clients in different geographies and building out that networking opportunity, you're seeing that. Number two, the onboarding team has done a really -- has put a lot of effort in over the last couple of years to really formalize and structure the collaborative onboarding process with our clients and holding mutual accountability between all of the participants in that process, the data providers, the custodian, the clients, that upstream and downstream streams as well as ourselves; principally and most importantly ourselves. And so this -- what we're seeing here, which we saw in the first quarter and continue to see in the second quarter, is really the amalgamation of all of those elements coming together. And I think we feel proud of the accomplishments of that team.

Pete, this is Sandeep. The only thing I would add is, just talking about things like six months to go live. I'm sure you've covered ERP systems in the past. You talk about years. You talk about several years for programs to go fully live. And the fact, that we talk about six months and how to improve it, we're just trying to provide a contrast to what the network effect allows us to do. So, I do think it's super impressive, just having been in the industry for that long.

Okay. That s helpful. And then just in terms of Morgan Money and their global trading platform you -- it sounds, as if you, have a strategic partnership in place, it's going to allow users to use Clearwater. But in terms of the contribution, I guess, how do you think about that ramping? And could you maybe size, a little bit about how big that client could be, if you're successful in cross-selling with existing JPMorgan customers.

Yes. So, one is that JPMorgan is already one of the largest clients we have. So that's point, one. The point two is, that it allows people use functionality on both platforms very easily. And that usually allows clients to bring on more and more AUM on our platform. So that's the play for us. The play is, the ability to trade on that platform and look at the data on our platform, if you can do that easily, it attracts more and more clients to our platform. Now we have done that with other partnerships, and we saw a sustained growth of AUM from those clients. And we also had new clients join our platform because of the ease with which they could go, between these two platforms. So, we think it's quite strategic. We think it continues to cement our relationship with JPMorgan, and continues to grow them in the years to come.

All right. Thank you. I’ll get back in the queue.

Our next question is from Rishi Jaluria with RBC. Your line is now open

Oh, wonderful. Hi, Sandeep. Hi, Jim. Thanks so much for taking my questions. Nice to see continued strength in the business. I wanted to start by going a little bit deeper into Clearwater GPT. No doubt the press release sounds I think pretty impressive. But can you talk a little bit about, some of the use cases that you anticipate seeing from Clearwater GPT? And maybe more importantly, how does that tie into your broader generative AI strategy? Because it feels like there's a really big opportunity for you to be a verticalizer, of some of these LOMs and really help customers and -- given the data and the relationships, you have in ways that they can't do themselves. So, I would love to drill a little bit into both of those and I've got a quick follow-up.

Yes. Thank you, Rishi. So look we believe Gen AI is transformative and disruptive. You can also understand that for our kind of business, we think it can have very significant and mostly positive impact on our business. We obviously, launched Clearwater GPT. And so let's just talk about some examples. And I think, you can basically put them into two different buckets. One is, which enhances revenue. So things, which can help grow our revenue. And the second one is, the ones which can improve efficiency of our operations. So let's talk about operations just, first. Obviously, efficiency is important because that drives gross margin. So whenever we have talked to yourselves, we have said look there's 75% and there's a path to 80%. And the question is, is there much more room there and we think ChatGPT allows us to think about meaningfully better operating results. Now what exactly are we talking about? As you know, we get many data feeds every morning, some 2,800 data feeds and they have to be reconciled, they have to be aggregated and normalized. Now could a significant portion be done using something like Gen AI, we think so. We think it will have a meaningful impact in what we have to do ourselves versus what the machine can do. So we think that can be majorly disruptive. The second one is, we spend a lot of our energy on client servicing and onboarding. And again, both those could change very meaningfully, if ChatGPT can be successfully deployed. So both those ideas, we have sort of teams of dedicated people, with dedicated leadership working on those and we expect to have some -- be able to report some progress in the coming months. The other side of it, obviously, is revenue-oriented. What…

Wonderful. Thanks Sandeep. That’s a very thorough answer and really helpful. Maybe just continuing on GenAI and thinking about other potential use cases. How do you think about the ability to use GenAI to make it easier for asset managers out there to migrate from their legacy solutions and on to Clearwater right because that's a long process? Obviously there's a lot of data complexity involved in that. But given what we've seen a lot of companies in this space using generative add to make migration from legacy to next-gen faster it feels like that's a big opportunity for you as well. So how are you thinking about that? Thanks.

Thank you, Rishi. But, yeah, absolutely. I do think it can completely change how we think about onboarding. And as you know onboarding is the hard part. And once you have done the transformation then of course Clearwater gives you the full functionality you could want and the agility and the analytics. And so we feel like GenAI could transform how we onboard it. To take an example let's say we move a client to onboard them from a competitive legacy platform, while we probably have done 30, 40 of those transformation onboarding exercises from that same legacy platform. You point GenAI to that and the next onboarding you're doing and it can do it meaningfully faster, right? Because it has learned from all those 30 onboarding exercises you've done. So we do think that's transformative. We do think it changes the risk profile of the onboarding exercise and really time to value meaningfully. So look we think it is actually perhaps the biggest use case when it comes to on the efficiency side of it, not on the revenue side but just on the efficiency side.

Wonderful. Thank you so much.

Thanks Rishi.

Our next question is from James Faucette with Morgan Stanley. Your line is now open.

Hi guys. It's Michael Infante on for James. Thanks for taking our question. I just wanted to circle back on NRR. Obviously, really impressive to see the sequential and year-over-year improvement there. I think migrating to this level we anticipated to take a little bit longer, so great to see that. Jim, is it possible to decompose that improvement between last year's pricing initiatives versus incremental attach of new products? And does the recent improvement accelerate your confidence in getting to that NRR level of 115 over time? Does that pull that forward?

Yeah. Thanks Michael. Thanks. So the revenue acceleration from 2019 to 2022 can almost be correlated to NRR moving from 106 to 109. And we do believe that is sustainable as we look into the near future. So you're right Michael why is it growing? It's been, obviously, a primary strategic initiative of the company over the last 12 months to really build in the commercial model, build in the base plus pricing, have the default price increases flowing through, adding these incremental modules of LPx, MLx, Prism. And that sophistication just continues. We were happy to see that the improvements in NRR were across all of the market verticals that we focus into and that improvement really comes into those existing customers and really see the 12 months of effort across all of those pieces bridging the gap from the 106 to the 109.

So, Michael I would just add that this is pretty deliberate. It's not something we say, hey let's do something we got something. No. We think that these four things you can run that Jim walked you through. And if you continue to improve in each of these you can, sort of, get better sequentially. And so do we think the 109 number is now a new normal for us? We think so. Does that improve the path to 115? Absolutely. Compared to when we had this first discussion Michael we were at 103, but better at 106 which we said was sustainable and we are up at 109 which we think is sustainable. And so we think it is -- it makes the 115 more in sight. It doesn't mean we're going to get the next quarter or in the next two quarters. But how we get there and the elements we're going to use to get there are defined now. We know. And it's just that in many of those you are still in the second or third innings of a game. And the multiproduct strategy for example we talk about LPx, we talk about MLx, we talk about Prism. Those are still second third innings and you just have to let it mature. And as they mature, it should continue to push that number up. So we feel really good about the path we're on here.

Thank you. Appreciate that. Maybe just pivoting to JUMP specifically, I saw the commentary in the release surrounding the pairing of JUMP in the front office with Clearwater in the back office. How powerful is that cross-sell motion? And is there a particular client type or client size that that pairing would be most applicable for?

Yeah. Thank you. Look at JUMP, we all get quite excited about just the partnership with them and Paris is just exceptional. So let's talk about specifics. One is JUMP's ability to compete in the French market against larger players much, much better. Clearly, clearly they're winning more deals in the French market because they are a part of this larger organization. Second, ability to sell front to back in North America for small asset managers and midsized asset managers. Absolutely. And this is something Michael it's clear what I would not have been able to do. But now we have the OMS and the PMS and the portfolio management system and the accounting and all of that so just end-to-end market which we could not compete in earlier works and therefore increases DAM very meaningfully. The third one which is the one you pointed to is perhaps the most exciting which is can I take the JUMP front-office modules and pair it with the Clearwater platform. Either for new prospects, which is the one we were talking about or to go back to all of our asset owner clients who already have the Clearwater platform and then provide the front office modules to them. So again, we've had success there. That's exciting. And finally, JUMP brings capabilities in a unit-linked fund out in Europe and we've been successful with that also all of this in the first half. So look we think it is really good progress. We again think unfortunately that they're still in -- it's in the early innings there's still the second third innings of what we could do with JUMP. Yes, I think it is.

Thank you both.

Thank you. Thanks, Michael.

Our next question is from Jackson Ader with MoffettNathanson. Your line is now open.

Great. Thanks for taking our questions. So the first one actually why don't we stick with the kind of the AI line of questioning. I think it's pretty clear that the architecture and infrastructure being cloud-based versus maybe some other competitors that are not lent itself already to the use of AI and machine learning within your own products that kind of created an advantage. But is there any reason why -- and Sandeep you said it yourself this generative AI is a different thing and it's kind of customer-facing. And is there any reason why you think that you might have a similar advantage over your competitors when it becomes more about customer facing and maybe layering a GPT on top of something that you already have?

Yeah. So Jackson, thank you for the question. Look I think it's super valid question, because it certainly opens up opportunities, frankly which I did not think was there about a year back. So look the core of all of these AI technologies is the quality of data you have and the accessibility to that data, right? If you don't have the data in one nice structured way, it makes it much harder, right? So should that meaningfully improve our ability to do a reconciliation, ability to do onboarding client services? Yes. I think those are obviously there. But what you're asking about is, can you think about new client facing applications. And I would just say that the answer is a very resounding yes because it is specific to our clients' data. So let me just try and define that a little bit more. Look if we generically talk about returns, that's interesting to a certain degree. But what we can do is we can talk about returns specific to a client's portfolio. So we can generate insights with specific reference to what our client's portfolio looks like and what they did yesterday and what they did last week and what they did last month. And based on that client's specific portfolio, we can come up with ideas and recommendations about what they should do and shouldn't do. Now this is a line of thinking we were – we did not have about a year back. But this does allow that. And that's why I think it is exciting on two different levels. And so I tried to distinguish between look revenue growing value adding to the front office is a different game versus efficiency oriented, which is a different game. I mean I'm not saying one is more exciting than the other. Both are very significant for us. And our commitment and dedicated leadership behind all four of these initiatives is already there.

Okay. By switching gears to maybe we're getting past the first kind of major waves of the base plus anniversaries here. And I'm just curious just general feedback like how are customers feeling about pricing increases maybe versus what they would have realized with AUM drift and then similarly, how you guys view just basically how this first year of renewals or anniversaries are going relative to last year?

So I think Jim can comment on the numbers here, but I should tell you it's a non-event now. Almost all our new contracts doesn't depend on what the size of the industry, they're on the new commercial model. There is – frankly I don't think I've heard resistance to that over the last 90, 120 days. I don't think I've heard of one. And so it's now just the way we do business. I haven't heard of push back from clients. I haven't heard back or heard anything to the contrary. I don't know Jim, would you add some to those.

Now I think remember Jack, when we went through this process right we wanted to simulate the experience that our clients were always getting right through this kind of normal growth, right? We weren't – we aren't – we were trying to make this a win-win. And so I think that that as we anniversary these and continue through this process this is – it's obviously, a much more automated process this year than it was when we were kind of going through that last year and kind of making this evolutionary change. But the – I think we – Sandeep always says to me "Jim why didn't you do this sooner you idiot."

No.

No. He doesn't say that. I'm just – I'm giving him a hug. I think what we've learned is it has worked the way we had hoped it would work. And I think the outcomes have been good.

Okay. All right. That’s great. Thank you.

Thank you, Jackson.

Our next question is from Dylan Becker with William Blair. Your line is now open.

Hey, gentlemen. Appreciate the questions, and I apologize for repeating anything jumped on late here. But I guess starting with Jim maybe or Sandeep, as well I guess, but nice net dollar retention number there cross-sell seems like JUMP's kind of starting to gain traction in a number of the – I guess how much of that too is a function of some of the recent kind of sales segmentation that shift to hunter farmers? And really some of that domain expertise that's prioritizing again kind of the particular customer needs in each of those particular industry verticals.

Look I would just say thanks for the question here about the impact of JUMP on our revenue is very muted right? Because you obviously go sell these deals they take a while to onboard and then they come out and they start to get ARR, right? So I think the results on the revenue beat is very muted. And would that improve over the next few quarters? Yes, absolutely. But I don't think you should look at the Q2 results and ascribe much of that to the cross-sell showing up in the revenue line or in the profitability line. I think all of the commentary about JUMP about the deals we have won but doesn't necessarily convert to revenue that quickly. Sorry Jim, go ahead you can add to it...

I think that we – so Sandeep has mentioned we're a bit in the early innings with respect to LPx Prism in these areas. And I think we're also in the early innings as we think about evolving the go-to-market engine that we have. I think we're – obviously these results reflect something we should continue to do. And so we will continue to lean in to being more thinking about these sales opportunities or sales channels discretely and further segmenting. The thing we've learned time and again, is as we focus and segment the results become better.

Got it. Okay. That’s super helpful. And then maybe to just quickly touching on kind of the competitive landscape. You did have a competitor internationally that was acquired. I wonder if you've seen any opportunity situations kind of arise off of that any displacement kind of commentary as you are kind of looking to kind of build out your own kind of global footprint here? Thanks.

Yes, these are tricky things to comment on. But I would just say that on the margin we feel the competitive environment has – in Europe has improved very meaningfully for us. And so I would just say that and that reflects a little bit in the pipeline build we have seen in H1. And so we are really happy with the transaction that was announced.

Fair enough. Okay. Thank you guys.

Yes. Overall, we continue to see -- we think, we have a really strong competitive position. And there's things that we have between the multi-tenancy, the single security master. That allows everyone to be the most up to date the network effect. No one else has that. And we think that leaning into those helps.

Thank you.

Our next question is from Gabriela Borges with Goldman Sachs. Your line is now open.

Hi. This is Kelly [ph] on for Gabriela. Congrats on the quarter and really strong numbers. First one from me, Sandeep, really enjoyed that Forbes article you wrote on Gen AI could the impact you're expecting to see in fintech. You talked a bit in that about the data accuracy issues with generative AI. I am just curious like what your team is doing to address those issues at Clearwater.

Yes. So thank you for the question about that. We obviously deal with investment accounting and we can't just e can't just be right, 95% of the time. We have to be right almost all the time. And as you know our Chief Client Officer, Subi Sethi, she has very large background in quality. And she approaches all of these things with trying to be right the first time. And so for a while though, I believe that the Gen AI applications we talk about will be with the human in the loop, right. So we don't expect quite yet to let Gen AI respond to customer clients or actually perform a transaction. But recall that when you think about what the individual does, they take a lot of time to research, something came up with alternatives and come up with then a potential solution and we expect Gen AI to just produce alternative one and alternative two. And at that time the human in the loop could go and pick alternative one and that helps train the model of course. So we think it is still human in the loop, because of the data accuracy concerns. I think there could come a time where for a certain class of problems and class of questions, you could have the model respond directly. But we do think right now in our thinking it isn't about a 100% improvement in efficiency. If we can get 70%, if we can hit 50% that would be great, right. And so we think more about that kind of approach rather than we're just going to eliminate all function -- all human interaction.

Yes. That makes sense. Thank you. And then second one for me is just how are bookings trended in the first half of the year just relative to 2022. You talked a lot about the visibility you've got in the business from bookings can you very forward-looking. It would be great any insights in the past six months? And then any differences you're seeing in North America versus international?

Sure. We don't see any change in the overall competitive environment. As I think Sandeep just mentioned on the margin, the competitive environment in Europe has improved. And so -- and I think that that helps. The pipeline has grown aggressively over the last six months. And we're really excited by the number of deals in the pipeline, especially those deals what we would call our additional product deals offering there. I think we're seeing dividends from announcing the Aviva go-live and we're seeing a benefit in Europe potentially there. And really in the first half when we look back on it I think, we feel the same way we've always thought it was nicely balanced between back the base the new logos. And last year we closed two mega insurers. This year I think we expect to do similar or even better in that environment. So I think we feel really good about our opportunities there.

Yes. And that ray it just reflects that obviously, there is -- our rays reflect the fact that we think we are in a good position. But I did want to just point out that our pipeline has surprised us. That's the growth of the pipeline. And I do think that people have a lot of work to do with legacy systems and that movement I'm hoping continues to accelerate towards companies, which can provide leading with technology and we think ours does.

Great. Thank you, and congrats again.

Thank you so much.

I think that's -- are there more questions?

Our next question is from Michael Turrin with Wells Fargo. Your line is now open.

Hey, it's David Unger filling in for Michael Turrin. Thanks for squeezing me in. Just one for me. Guys, I know the JUMP acquisition wasn't too long ago, but just curious your appetite to add additional products or go deeper in a particular geo, you've made some comments tonight on Europe. So, the appetite to do an acquisition that's perhaps harder to build organically. Thanks.

Yeah. Thank you for the question. Look, I think absolutely there's appetite to do more. And if I can quickly just tell you how we think about it. We think of JUMP as having provided a good proof point. There's lots of work to be left -- left to be done and there's a number of things we have to do but it does provide a really good proof point that there is a value to our Net Promoter Score. And it's quite simple. The value is that clients want to do more with you. So there is something we have to develop which will take too long, pivoting and doing an acquisition to bring that capability sounds like a good way to go. So I'll just make one more point here that, what has not changed. What has not changed is, we have a pretty high bar for doing an acquisition. It must expand -- help us expand geographically. It must help us expand functionality. And then what has changed? So after JUMP, what has changed is three things. One is, we have a much sharper focus on understanding the current customer pain points beyond investment accounting, but sort of adjacent to investment accounting. So that's one thing. Second thing is our ability to cross-sell, the products from a potential acquisition is a massive and clear imperative, because that also helps as you can imagine the NRR, right? And the third one is, we really feel we are ready to lead globally. And so acquisitions that can help us lead in a market by us being able to provide end-to-end functionality using a platform, I think are very interesting now would have been less interesting three years back, when we might have been somewhat more tentative about trying to lead an entire industry in a certain function. So yeah, those are the -- it's very similar to before, but it does reflect a little change in attitude about what we can do.

Always appreciate the detail, Sandeep. Thank you.

Thank you so much.

Our next question is from Brian Schwartz with Oppenheimer. Your line is now open.

Hi, Sandeep and Jim. Thank you for taking my question. Just one question here very high level. Sandeep, just how you're thinking about the macro environment heading in second half of the year? It looks like the business did well in Q1. It looks like the business did even better here Q2 you gave us same size since all the exciting initiatives and what's going on internally on sales efficiency in the pipeline. But how about just what you're seeing in terms of cycles, and just buying patterns from the end market. Has your view about the macro environment in the second half has that changed at all since last time we spoke three months ago? Thank you.

Thank you so much for that question. Look I think our thinking is that if you had talked to us in January or some time like that we were worried about the environment becoming worse. At this point, our sense is it's not going to become much worse. We also don't expect much improvement right now. So in our planning, we're assuming it just sort of status quo. There may be a little bit of movement up and down. But it is different from how we felt three months back when we felt -- we were reasonably worried about how the economy may play out. So we feel a lot more confident about that. It's also true that we have the new commercial model sort of helps us mitigate some of the risks. So that also increases the level of confidence we have in our planning. And so that's how we think. We just don't see much improvement. The only other point I would make is, that when you think about AUM, just across the board we feel like the markets have been quite stable. And so we feel -- look, at this point we feel pretty good about where the market is. But our forecast and our guidance and all that doesn't include any improvement in the economic conditions. We just don't see that yet.

Thank you all.

Thank you so much. Yeah. Thank you.

Our next question is from Yun Kim with Loop Capital. Your line is now open.

Hi. Great. Thank you. Congrats on another solid quarter. One question for me as well, can you just talk about how the mix of asset types is changing between, I guess fixed income, equities, alternative, investments? And how has that mix changed providing any pricing uplift? Thanks.

Yeah. So broadly, the mix is staying consistent. But like, let me give you one little nugget. We talked about MLx and how we're teasing on that. So that's kind of to help with mortgages. Just for context as we were sizing that opportunity and looking at the assets on the platform we have north of $500 billion in mortgage-related assets on our platform today. So, that's just kind of like one little sliver. As you see more and more of these types of alternative assets, mortgages, derivatives and those sorts of things and structured products broadly. We continue to see kind of that trend with fixed income and structured products to flow through. And that's why we're doing LPx and MLx and moving down that path to provide additional alternative asset coverage for clients beyond the investment accounting for those assets.

Yeah. And I would just try to say that, if you just look at the overall platform.

Thank you.

I think we're at time or a little over.

Are there any other questions please.

There are no more questions. So I'll pass the call back over to the management.

Okay good. So look, I just want to thank you all for your interest in our company and the continued interest frankly. And I also like to do a plug for our Investor Day, which is coming up on September 6th -- September 7th, pardon me, and I hope to see many of you there. Thank you again.

Good bye.

That concludes the conference call.