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Fair Isaac Corporation
CEO : Mr. William J. Lansing

Quarterly earnings growth(YoY,%)

Period	Revenue	Operating Income	EPS	Release Date
2023 Q3	14.2% YoY	25.9%	41.4%	2023-08-02

William Lansing says,

Financial Highlights

• Record revenues of $399 million, a 14% increase over the same period last year
• GAAP net income of $129 million, growing 38% over the previous year
• GAAP earnings per share of $5.08, a 41% increase over the prior year
• Non-GAAP net income of $143 million, with earnings per share of $5.66, representing year-over-year growth of 24% and 27% respectively

Scores Revenue

• Record scores revenue of $202 million, up 13% in the quarter compared to the previous year
• B2B revenues up 24%, driven by increased originations revenues
• Mortgage originations revenues up 135% compared to last year
• Auto origination revenues up 5%
• Credit card, personal loan, and other origination revenues up 2%
• B2C revenues flat with last quarter and down 11% compared to the same period last year

FICO Platform

• Overall ARR growth of 20% and platform ARR growth of 53%
• 15th straight quarter of platform ARR growth over 40%
• Strong net retention rates with overall NRR at 117%
• Legacy off-platform NRR at 109% with increased volumes
• Platform NRR at 142% due to expanded use cases from the land-and-expand strategy

Software Business

• Double-digit growth with ACV bookings up 13% over the same period last year
• Strong demand for FICO Platform with a strong pipeline of opportunities

Partnership with Chelsea Football Club

• Working together to empower students, adults, and communities across the U.S. with financial literacy tools and knowledge
• Hosting fundamental workshops in partnership with the U.S. Soccer Foundation to empower the younger generation with essential credit knowledge
• Hosting Score a Better Future Credit Education events to provide local residents with knowledge and tools to gain better insight into their financial health

Steven Weber says,

Financial Results

• The company will discuss its financial results for the third quarter compared to the prior year and the prior quarter.
• Management aims to provide a clearer understanding of the run rate of the business.

Forward-Looking Statements

• Management acknowledges that certain statements made during the call may be characterized as forward-looking under the Private Securities Litigation Reform Act of 1995.
• These statements involve uncertainties that could cause actual results to differ materially.
• Information regarding these uncertainties can be found in the company’s SEC filings, specifically in the Risk Factors and Forward-Looking Statements sections.
• Copies of these filings can be obtained from the SEC, the FICO website, or the Investor Relations team.

Non-GAAP Financial Measures

• The call will include discussions about certain non-GAAP financial measures.
• Listeners are advised to refer to the company’s earnings release and Regulation G schedule for a reconciliation of these non-GAAP measures to the most comparable GAAP measure.
• The earnings release and Regulation G schedule can be accessed on the Investor Relations page of the FICO website or the SEC’s website.

Webcast Replay

• A replay of the webcast will be available through August 2, 2024.
• Interested individuals can access the replay on the Investor Relations page of the FICO website.

Q & A sessions,

Record Revenue and Profitability

• In Q3 2023, FICO reported record revenues of $399 million, marking a 14% increase from the same period last year.
• GAAP net income was $129 million, with GAAP earnings per share of $5.08, growing 38% and 41% respectively over the prior year.
• Non-GAAP net income was $143 million, with earnings per share of $5.66, representing a year-over-year growth of 24% and 27%.

Scores Revenue and B2B Revenues Growth

• Scores revenue was a record $202 million, up 13% in Q3 2023 compared to the same period last year.
• B2B revenues increased by 24%, primarily driven by increased originations revenues.
• Mortgage originations revenues saw a significant increase of 135% compared to last year, while auto origination revenues increased by 5%.
• Credit card, personal loan, and other origination revenues were up by 2%.

Growth of FICO Platform

• FICO Platform, which provides analytics and AI for smarter business decisions, achieved overall ARR growth of 20% in Q3 2023.
• Platform ARR growth was 53%, marking the 15th consecutive quarter of platform ARR growth exceeding 40%.
• Net retention rates (NRR) increased to 117% overall, with platform NRR at 142% due to expanded use cases driven by the success of the land-and-expand strategy.

Strong Demand and ACV Bookings Growth

• FICO experienced a quarter of double-digit growth, with ACV bookings up 13% compared to the same period last year.
• The company continues to see a strong pipeline of opportunities and strong demand for FICO Platform.

Shorter Sales Pipeline and Customer Engagement

• The sales pipeline has been getting shorter, decreasing from over 400 days to below that threshold, indicating positive trends.
• FICO World, an important event for the company, provides an opportunity for customers to connect with each other, share experiences, and provide real-world feedback on the implementation and benefits of FICO software.