Fair Isaac Reports 14% Revenue Growth and Strong Net Income Increase

2024-04-26

Fair Isaac Corporation, commonly known as FICO, conducted its second-quarter earnings conference call with key participants including Dave Singleton, Vice President of Investor Relations, Will Lansing, CEO, and Steve Weber, CFO. The focus of the meeting was to review the financial results, comparing them to the previous year and quarter to assess the company's performance. During the call, forward-looking statements were made in compliance with the Private Securities Litigation Reform Act of 1995, highlighting potential risks and uncertainties for investors to consider.

Investors seeking information regarding the risks and uncertainties associated with Fair Isaac's financial performance were directed to the company's filings with the SEC, particularly in the Risk Factors and Forward-Looking Statements section of such filings. Furthermore, investors were encouraged to access non-GAAP financial measures and reconciliations to GAAP measures on the company's Investor Relations page at fico.com or on the SEC's website at sec.gov.

One of the key financial highlights discussed during the second-quarter earnings call was the company's revenues reaching $434 million, marking a 14% increase from the previous year. Additionally, Fair Isaac reported a GAAP net income of $130 million, reflecting a 28% rise, and GAAP earnings per share of $5.16, a 29% increase compared to the prior year. Revenue growth in the B2B segment was notable at 28%, primarily attributed to mortgage originations, while the B2C segment experienced a 4% decline due to volume decreases in the myFICO.com business.

Fair Isaac also shared that total Annual Recurring Revenue (ARR) saw a 14% growth in the second quarter, with platform ARR increasing by 32% and non-platform ARR growing by 8%. The company's Net Revenue Retention (NRR) for the quarter stood strong at 112%.

Looking ahead, Fair Isaac projected a non-GAAP net income of $573 million and non-GAAP earnings per share of $22.80. The company reiterated its commitment to buybacks and emphasized its focus on managing expenses while investing in key areas such as research and development, ecosystem development, and expanding distribution channels to drive future growth. The conference call provided valuable insights into Fair Isaac's financial performance, strategic direction, and outlook for the future.