“Yes. What we’ve got in the plan, like you’ve seen over the past couple of years, we’ve seen that term license continue to decline, right. It declined not only as a percentage of revenue, but also in actual dollars. And so we would expect that to continue again in 2025 where we’re going to see a further deterioration in dollars and obviously even a greater decline in percentage of revenue.”

In context

“lso mix in terms of the different types of revenue that we’re seeing and obviously whether that’s services or SaaS. So that’s definitely going to play a factor too in terms of – obviously the more SaaS, we’re creating a little bit more of a dynamic there just in terms of the rev rec. You’ve seen over the past year, our term license revenue declining. That gives us that upfront bump in the term revenue piece. So as that continues to shrink and become less a percentage of the total, then we create a little bit more gap between ARR and revenue in the short-term. And that’s partly what you’re seeing in addition to the FX in 2025. Nehal Chokshi: Okay. So you would expect the term license decline to accelerate here in calendar 2025 relative to the growth rate you saw in calendar 2024? Jim Caci: Yes. What we’ve got in the plan, like you’ve seen over the past couple of years, we’ve seen that term license continue to decline, right. It declined not only as a percentage of revenue, but also in actual dollars. And so we would expect that to continue again in 2025 where we’re going to see a further deterioration in dollars and obviously even a greater decline in percentage of revenue. So again, we would expect that for the full-year next year to continue that trend and obviously have an impact on the mix that we just talked about. Nehal Chokshi: Got it. Okay. That makes a lot of sense. And then following two years of about 700 basis points per year of EBIT margin expansion, you’re projecting a flattening here and non-GAAP EBIT margin. Is it basically a signal that, hey, it’s time to invest aggressively again? Jim Caci: So great question, Nehal, and I appreciate you bringing it up because I do think there’s a couple of points to make here. One, and maybe the first point really is our focus has been on profitable growth and I don’t want this to take away from our focus still is on profitable growth. So that’s first and foremost. Second, you’re right, we do see a healthy”