In This Article:
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Revenue: $499 million, up 15% year-over-year.
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GAAP Net Income: $163 million, up 25% year-over-year.
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GAAP Earnings Per Share: $6.59, up 28% year-over-year.
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Non-GAAP Net Income: $193 million, up 25% year-over-year.
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Non-GAAP Earnings Per Share: $7.81, up 27% year-over-year.
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Free Cash Flow: $65 million for the quarter; $677 million over the last four quarters, up 45% year-over-year.
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Scores Segment Revenue: $297 million, up 25% year-over-year.
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B2B Revenue Growth: Up 31%, driven by mortgage originations.
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B2C Revenue Growth: Up 6%, driven by indirect channel partners.
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Software Segment Revenue: $202 million, up 2% year-over-year.
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Operating Expenses: $253 million, down 3% from the prior quarter.
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Non-GAAP Operating Margin: 58%, up 450 basis points year-over-year.
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Accounts Receivable: Increased due to timing of large payments.
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Share Repurchases: 112,000 shares at an average price of $1,849 per share.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fair Isaac Corp (NYSE:FICO) reported a strong quarter with revenues of $499 million, up 15% from the previous year.
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GAAP net income increased by 25% to $163 million, and GAAP earnings per share rose by 28% to $6.59.
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The Scores segment saw a significant revenue increase of 25%, driven by a 31% rise in B2B revenues, particularly from mortgage originations.
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FICO continues to innovate with the introduction of the FICO Score 10 T and a Kenya-specific FICO score, enhancing financial inclusion.
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The company is expanding its partner channels, including a new partnership with Fujitsu to support digital transformation in Japanese financial institutions.
Negative Points
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The Software segment only saw a modest revenue increase of 2%, with professional services declining by 9%.
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There are macroeconomic uncertainties affecting customer conservatism, impacting growth in usage of certain services.
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Non-platform ARR declined by 3%, indicating challenges in maintaining growth in non-platform services.
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The company faces headwinds in CCS usage as some customers delay or downsize outreach programs due to macro volatility.
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Operating expenses are expected to rise in the second half of the year due to events like the FICO World Conference and other marketing activities.
Q & A Highlights
Q: Will, typically, this is your kind of beat and raise type quarter. Can you provide some perspective on how results came in versus your expectations? Are you holding the guidance due to potential uncertainty? A: Yes, we're in an environment with a bit more uncertainty than expected. We remain conservative, and there's ample time to raise guidance when we're more confident. We're comfortable with where we are. - William Lansing, CEO