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FICO Announces Earnings of $4.80 per Share for First Quarter Fiscal 2024

FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its first fiscal quarter ended December 31, 2023. First Quarter Fiscal 2024 GAAP ...

Business Wire

Revenue of $382 million vs. $345 million in prior year

BOZEMAN, Mont.: FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its first fiscal quarter ended December 31, 2023.

First Quarter Fiscal 2024 GAAP Results

Net income for the quarter totaled $121.1 million, or $4.80 per share, versus $97.6 million, or $3.84 per share, in the prior year period.

Net cash provided by operating activities for the quarter was $122.1 million versus $92.4 million in the prior year period.

First Quarter Fiscal 2024 Non-GAAP Results

Non-GAAP Net Income for the quarter was $121.2 million versus $108.5 million in the prior year period. Non-GAAP EPS for the quarter was $4.81 versus $4.26 in the prior year period. Free cash flow was $120.8 million for the current quarter versus $91.6 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.

First Quarter Fiscal 2024 GAAP Revenue

The company reported revenues of $382.1 million for the quarter as compared to $344.9 million reported in the prior year period.

“We had a good start to our fiscal year, with another quarter of strong growth,” said Will Lansing, chief executive officer. “We reiterate our fiscal year 2024 guidance, which includes double-digit percentage revenue and EPS growth.”

Revenues for the first quarter of fiscal 2024 for the company’s two operating segments were as follows:

  • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $192.1 million in the first quarter, compared to $178.0 million in the prior year period, an increase of 8%. B2B revenue increased 12%, primarily attributable to a higher unit price. B2C revenue decreased 3% from the prior year period due to lower volumes on myFICO.com business.
  • Software revenues, which include the company’s analytics and digital decisioning technology, were $190.0 million in the first quarter, compared to $166.9 million in the prior year period, an increase of 14%, due to increased recurring revenue, partially offset by decreases in professional services. Software Annual Recurring Revenue was up 18% year-over-year, consisting of 43% platform ARR growth and 11% non-platform growth. Software Dollar-Based Net Retention Rate was 114% in the first quarter, with platform software at 136% and non-platform software at 108%.

Outlook

The company is re-iterating its previously provided guidance for fiscal 2024:

 

Fiscal 2024 Guidance

Revenues

$ 1.675 billion

GAAP Net Income

$ 490 million

GAAP EPS

$ 19.45

Non-GAAP Net Income

$ 566 million

Non-GAAP EPS

$ 22.45

The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance.”

Company to Host Conference Call

The company will host a webcast on January 25, 2024 at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its first quarter fiscal 2024 results and provide various strategic and operational updates. The call can be accessed at FICO's web site at www.fico.com/investors. A replay of the webcast will be available at our Past Events page through January 25, 2025.

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 215 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail, and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.

Learn more at http://www.fico.com

Join the conversation at https://twitter.com/fico & http://www.fico.com/en/blogs/

For FICO news and media resources, visit www.fico.com/news.

FICO is a registered trademark of Fair Isaac Corporation in the US and other countries.

Statement Concerning Forward-Looking Information

Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company’s Software segment’s business strategy, the Company’s ability to continue to develop new and enhanced products and services, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, disruptions and uncertainties with respect to global economic conditions as well as in industries and markets of the Company and its customers, the Company’s ability to keep up with rapidly changing technologies, its ability to recruit and retain qualified personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions, or divestitures, and material adverse developments in global economic conditions or the occurrence of certain other world events such as geopolitical tensions, military conflicts, the level and volatility of interest rates, the level of inflation, the continuing effects of the COVID-19 pandemic, an actual recession or fears of a recession, trade policies and tariffs, and political and governmental instability. Additional information on these risks and uncertainties and other factors that could affect FICO's future results are described from time to time in FICO's SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2023 and its subsequent filings with the SEC. If any of these risks or uncertainties materializes, FICO's results could differ materially from its expectations. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. FICO disclaims any intent or obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise.

 
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
 
 
December 31, September 30,

 

2023

 

 

2023

 

ASSETS:
Current assets:
Cash and cash equivalents

$

160,421

 

$

136,778

 

Accounts receivable, net

 

367,478

 

 

387,947

 

Prepaid expenses and other current assets

 

37,364

 

 

31,723

 

Total current assets

 

565,263

 

 

556,448

 

 
Marketable securities and investments

 

38,213

 

 

34,237

 

Property and equipment, net

 

10,406

 

 

10,966

 

Operating lease right-of-use-assets

 

18,916

 

 

25,703

 

Goodwill and intangible assets, net

 

777,837

 

 

774,244

 

Other assets

 

182,883

 

 

173,683

 

$

1,593,518

 

$

1,575,281

 

 
LIABILITIES AND STOCKHOLDERS' DEFICIT:
Current liabilities:
Accounts payable and other accrued liabilities

$

65,071

 

$

78,487

 

Accrued compensation and employee benefits

 

68,216

 

 

102,471

 

Deferred revenue

 

146,822

 

 

136,730

 

Current maturities on debt

 

153,000

 

 

50,000

 

Total current liabilities

 

433,109

 

 

367,688

 

 
Long-term debt

 

1,808,655

 

 

1,811,658

 

Operating lease liabilities

 

11,899

 

 

23,903

 

Other liabilities

 

65,620

 

 

60,022

 

Total liabilities

 

2,319,283

 

 

2,263,271

 

 
Stockholders' deficit

 

(725,765

)

 

(687,990

)

$

1,593,518

 

$

1,575,281

 

 
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
 
 
Quarter Ended
December 31,

 

2023

 

 

2022

 

Revenues:
On-premises and SaaS software

$

168,668

 

$

144,560

 

Professional services

 

21,279

 

 

22,322

 

Scores

 

192,112

 

 

177,988

 

Total revenues

 

382,059

 

 

344,870

 

 
Operating expenses:
Cost of revenues

 

83,461

 

 

76,569

 

Research & development

 

42,635

 

 

36,633

 

Selling, general and administrative

 

104,329

 

 

92,995

 

Amortization of intangible assets

 

275

 

 

275

 

Gain on product line asset sale

 

-

 

 

(1,941

)

Total operating expenses

 

230,700

 

 

204,531

 

Operating income

 

151,359

 

 

140,339

 

Other expense, net

 

(20,769

)

 

(22,436

)

Income before income taxes

 

130,590

 

 

117,903

 

Provision for income taxes

 

9,525

 

 

20,260

 

Net income

$

121,065

 

$

97,643

 

 
 
 
Basic earnings per share:

$

4.89

 

$

3.90

 

Diluted earnings per share:

$

4.80

 

$

3.84

 

 
Shares used in computing earnings per share:
Basic

 

24,764

 

 

25,045

 

Diluted

 

25,219

 

 

25,443

 

 
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 
Quarter Ended
December 31,

 

2023

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