Fair Isaac Corporation
CEO : Mr. William J. Lansing
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2023 Q1 | 7.0% YoY | 19.7% | 24.6% | 2023-01-27 |
William Lansing says,
Financial Highlights
- Q1 revenues of $345 million, up 7% from the prior year
- GAAP net income of $98 million, up 15% over the prior year
- GAAP EPS of $3.84, up 24% from the prior year
- Q1 non-GAAP net income of $108 million, up 6% from the prior year
- Non-GAAP EPS of $4.26, up 15% from the prior year quarter
Scores and B2B Revenues
- Score revenues up 5% over the same period last year
- B2B revenues up 11% in the quarter versus the prior year driven by unit price increases, increased volumes in card and personal loan originations, and a license renewal in Latin America.
- Auto originations revenues up 24% and card and personal loan originations revenues up 19% in the US
- Mortgage origination volumes for the US market down about 40% year-over-year
- Fiscal 2023 price increases take effect primarily in January
Software Business
- Overall ARR growth of 11% and platform ARR growth of 46%
- Net retention rate was 110%, and platform net retention is 130%
- ACV bookings were up 31% over the same period last year
- Strong pipeline of opportunities as customers look to FICO to deliver strategic mission-critical decisioning
- Exited non-strategic products and services over the last few years
Siron Compliance Business Transition
- Reached an agreement to transition the Siron compliance business to our partner, IMTF
- Closed the transaction in December
Final Comments
- Excited about the opportunities ahead of us and FICO’s unique technological capabilities
- Committed to becoming the preeminent platform player in decisioning analytics
Steve Weber says,
Financial Performance
- FICO reported revenue of $321 million, an increase of 7% year-over-year.
- Net income was $51 million, compared to $33 million in the prior year’s quarter.
- Earnings per share (EPS) was $1.47, up from $0.91 in the prior year’s quarter.
Growth Opportunities
- FICO plans to leverage its strategic partnerships to expand its presence in emerging markets.
- The company is increasing investment in research and development to drive innovation and growth.
- FICO announced a partnership with Equifax to offer a new credit scoring product which is expected to contribute to future revenue growth.
Guidance
- FICO expects full-year revenue growth of approximately 8%.
- The company anticipates EPS to be in the range of $6.20 to $6.30 for the full year.
- FICO expects to generate cash flow from operations of approximately $380 million for the full year.
COVID-19 Impact
- FICO has experienced minimal impact from COVID-19 on its operations and financial results.
- The company continues to monitor the situation and is prepared to take action if necessary.
Leadership Changes
- FICO announced that Steve Weber has been appointed Interim CFO following the departure of Mike Pung.
- The company is actively searching for a permanent CFO.
Q & A sessions,
Financial Highlights
- Q1 revenues of $345 million, up 7% from the prior year
- GAAP net income of $98 million, up 15% over the prior year
- GAAP EPS of $3.84, up 24%
- Non-GAAP net income of $108 million, up 6% from the prior year
- Earnings per share of $4.26, up 15% from the prior year quarter
Scores Business
- Revenues up 5% over the same period last year
- B2B revenues up 11% driven by unit price increases, increased volumes in card and personal loan originations, and license renewal in Latin America
- Auto originations revenues up 24% and card and personal loan originations revenues up 19% in the U.S.
- Reduced mortgage origination volumes for the U.S. market
Software Business
- Overall ARR growth of 11% and platform ARR growth of 46%
- Net retention rate was 110%, and platform net retention is 130%
- ACV bookings were up 31% over the same period last year
- Strong pipeline of opportunities as customers look to FICO to deliver strategic mission-critical decisioning
Strategic Initiatives
- Focus on becoming the preeminent platform player in decisioning analytics
- Exited non-strategic products and services over the last few years
- Transitioned Siron compliance business to partner, IMTF
Guidance
- Revenues of $1.463 billion, GAAP net income of $401 million, GAAP EPS of $16, non-GAAP net income of $487 million, and non-GAAP EPS of $19.42
No bad stock 