“As we indicated previously, non-GAAP operating expense growth is expected to moderate through the year. Our expectations remain unchanged. Q3 non-GAAP operating expense growth is expected to be 2 points to 3 points lower than the second quarter inclusive of an exchange rate impact, which may add half a point to growth.”

In context

“sinesses remains a critical priority. Client incentive growth is expected to be higher in the second half than it was in the first. This was driven by some delays in renewals that were expected in the first half, as well as some significant renewals that were anticipated in fiscal year '24 but are now happening in the second half of fiscal year '23. In the first half, client incentives as a percent of gross revenue was below our outlook range of 26.5% to 27.5%. In the second half, this percentage is likely to run above the high-end of the range. We expect to finish the year in the upper half of the 26.5% to 27.5% range. When you put all this together, third quarter net revenue growth is expected to be in the low-double-digits, inclusive of an approximately 1 point drag from exchange rate. As we indicated previously, non-GAAP operating expense growth is expected to moderate through the year. Our expectations remain unchanged. Q3 non-GAAP operating expense growth is expected to be 2 points to 3 points lower than the second quarter inclusive of an exchange rate impact, which may add half a point to growth. And Q4 non-GAAP operating expense growth will likely be another 2 points, 3 points lower than Q3. Non-GAAP results exclude certain acquisition-related items and the litigation provision from the third quarter last year. Non-operating income will continue to benefit from the attractive rates we're earning on our cash balances. As you know, short-term rates have been high lately, which is very helpful given that we always have very low duration on our cash balances. Interest income from cash will likely offset interest expense from debt by $5 million to $10 million in the third quarter. Our tax rate is expected to remain in the 19% to 19.5% range in the third quarter. As we've said previously, should there be a recession on a geopolitical shock that impacts our business, slowing revenue gro”