Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries FICO Announces Earnings of $3.61 per Share for Third Quarter Fiscal 2022 By: FICO via Business Wire August 03, 2022 at 16:15 PM EDT Revenue of $349 million vs. $338 million in prior year FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its third fiscal quarter ended June 30, 2022. Third Quarter Fiscal 2022 GAAP Results Net income for the quarter totaled $93.5 million, or $3.61 per share, versus $151.2 million, or $5.18 per share, in the prior year period. The prior year results included a pre-tax gain of $92.8 million on the sale of the Debt Collections and Recovery product line, or $2.52 per share after tax. Net cash provided by operating activities for the quarter was $117.1 million versus $100.6 million in the prior year period. Third Quarter Fiscal 2022 Non-GAAP Results Non-GAAP Net Income for the quarter was $115.7 million, or $4.47 per share, versus $98.8 million, or $3.38 per share, in the prior year period. Free cash flow was $115.2 million for the quarter versus $99.0 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. Third Quarter Fiscal 2022 GAAP Revenue The company reported revenues of $349.0 million for the quarter as compared to $338.2 million reported in the prior year period. “We delivered excellent results again this quarter, demonstrating the resilience of our business,” said Will Lansing, chief executive officer. “We remain well positioned for continued growth as we finish our fiscal year.” Revenues for the third quarter of fiscal 2022 across 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) scoring solutions, were $179.4 million in the third quarter, compared to $172.2 million in the prior year period, an increase of 4%. B2B revenue increased 3%, driven largely by unit price increases and increases in unsecured credit Originations volumes, partially offset by decreases in Mortgage Origination volumes. B2C revenue increased 7% from the prior year period primarily due to growth in our partner channel. Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $169.6 million in the third quarter, compared to $166.0 million in the prior year period, an increase of 2%, primarily attributable to an increase in our platform software revenue, partially offset by the sale of the Debt Collections and Recovery product line in June 2021, and reduced Professional Services revenue. Year-over-year, Software Annual Recurring Revenue (ARR) was up 9%, consisting of 60% platform ARR growth and 1% non-platform ARR growth. Software Dollar-Based Net Retention Rate was 108% in the third quarter, with platform solutions at 135% and non-platform solutions at 101%. Outlook The company is reiterating its previously provided guidance for fiscal 2022: Fiscal 2022 Guidance Revenues $1.355 billion GAAP Net Income $350 million GAAP EPS $13.11 Non GAAP Net Income $429 million Non GAAP EPS $16.08 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 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its third quarter fiscal 2022 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 August 3, 2023. 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 165 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, 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 helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time. Learn more at http://www.fico.com Join the conversation at https://twitter.com/fico & http://www.fico.com/en/blogs/ 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 impact of COVID-19 on macroeconomic conditions and FICO’s business, operations and personnel, the success of the Company’s business strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, the effects of, and any changes in, laws and regulations applicable to the Company's business or its customers, the failure to protect data privacy and security, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments in global economic conditions or in the markets we serve. 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, 2021 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) June 30, September 30, 2022 2021 ASSETS: Current assets: Cash and cash equivalents $ 155,062 $ 195,354 Accounts receivable, net 286,341 312,107 Prepaid expenses and other current assets 31,854 43,513 Total current assets 473,257 550,974 Marketable securities and investments 26,560 33,196 Property and equipment, net 20,449 27,913 Operating lease right-of-use-assets 39,711 47,275 Goodwill and intangible assets, net 775,132 792,284 Other assets 121,727 116,134 $ 1,456,836 $ 1,567,776 LIABILITIES AND STOCKHOLDERS' DEFICIT: Current liabilities: Accounts payable and other accrued liabilities $ 75,175 $ 100,284 Accrued compensation and employee benefits 80,194 103,506 Deferred revenue 98,486 105,417 Current maturities on debt 130,000 250,000 Total current liabilities 383,855 559,207 Long-term debt 1,826,671 1,009,018 Operating lease liabilities 42,970 53,670 Other liabilities 50,812 56,823 Total liabilities 2,304,308 1,678,718 Stockholders' deficit (847,472 ) (110,942 ) $ 1,456,836 $ 1,567,776 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Quarter Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Revenues: On-premises and SaaS software $ 142,537 $ 130,230 $ 417,963 $ 382,236 Professional services 27,074 35,752 77,975 114,151 Scores 179,355 172,202 532,584 485,572 Total revenues 348,966 338,184 1,028,522 981,959 Operating expenses: Cost of revenues 78,691 82,240 219,688 260,101 Research & development 35,880 45,826 111,247 130,089 Selling, general and administrative 93,248 107,729 287,710 298,912 Amortization of intangible assets 532 810 1,619 2,692 Gains on product line asset sales and business divestiture - (92,805 ) - (100,139 ) Total operating expenses 208,351 143,800 620,264 591,655 Operating income 140,615 194,384 408,258 390,304 Other expense, net (19,721 ) (6,492 ) (50,059 ) (22,628 ) Income before income taxes 120,894 187,892 358,199 367,676 Provision for income taxes 27,394 36,694 75,357 61,312 Net income $ 93,500 $ 151,198 $ 282,842 $ 306,364 Basic earnings per share: $ 3.65 $ 5.27 $ 10.75 $ 10.58 Diluted earnings per share: $ 3.61 $ 5.18 $ 10.63 $ 10.38 Shares used in computing earnings per share: Basic 25,634 28,687 26,319 28,967 Diluted 25,867 29,195 26,608 29,505 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended June 30, 2022 2021 Cash flows from operating activities: Net income $ 282,842 $ 306,364 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 15,819 20,066 Share-based compensation 86,363 84,099 Changes in operating assets and liabilities (43,489 ) 24,728 Gains on product line asset sales and business divestiture - (100,139 ) Other, net 23,089 (3,056 ) Net cash provided by operating activities 364,624 332,062 Cash flows from investing activities: Purchases of property and equipment (5,232 ) (5,792 ) Net activity from marketable securities (1,447 ) (2,827 ) Proceeds from product line asset sales and business divestiture 2,257 146,428 Other, net - (210 ) Net cash provided by (used in) investing activities (4,422 ) 137,599 Cash flows from financing activities: Proceeds from revolving line of credit and term loan 1,010,000 429,000 Payments on revolving line of credit and term loan (855,500 ) (208,000 ) Proceeds from issuance of senior notes 550,000 - Proceeds from issuance of treasury stock under employee stock plans 11,117 14,580 Taxes paid related to net share settlement of equity awards (49,027 ) (88,770 ) Repurchases of common stock (1,048,027 ) (541,205 ) Other, net (8,819 ) (177 ) Net cash used in financing activities (390,256 ) (394,572 ) Effect of exchange rate changes on cash (10,238 ) 5,129 Increase (decrease) in cash and cash equivalents (40,292 ) 80,218 Cash and cash equivalents, beginning of period 195,354 157,394 Cash and cash equivalents, end of period $ 155,062 $ 237,612 FAIR ISAAC CORPORATION NON-GAAP RESULTS (In thousands, except per share data) (Unaudited) Quarter Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 GAAP net income $ 93,500 $ 151,198 $ 282,842 $ 306,364 Amortization of intangible assets 532 810 1,619 2,692 Gains on product line asset sales and business divestiture - (92,805 ) - (100,139 ) Stock-based compensation expense 28,549 30,761 86,363 84,099 Income tax adjustments (6,842 ) 11,391 (21,012 ) (366 ) Excess tax benefit (78 ) (2,561 ) (8,530 ) (22,073 ) Non-GAAP net income $ 115,661 $ 98,794 $ 341,282 $ 270,577 GAAP diluted earnings per share $ 3.61 $ 5.18 $ 10.63 $ 10.38 Amortization of intangible assets 0.02 0.03 0.06 0.09 Gains on product line asset sales and business divestiture - (3.18 ) - (3.39 ) Stock-based compensation expense 1.10 1.05 3.25 2.85 Income tax adjustments (0.26 ) 0.39 (0.79 ) (0.01 ) Excess tax benefit (0.00 ) (0.09 ) (0.32 ) (0.75 ) Non-GAAP diluted earnings per share $ 4.47 $ 3.38 $ 12.83 $ 9.17 Free cash flow Net cash provided by operating activities $ 117,140 $ 100,592 $ 364,625 $ 332,062 Capital expenditures (1,939 ) (1,572 ) (5,232 ) (5,792 ) Free cash flow $ 115,201 $ 99,020 $ 359,393 $ 326,270 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures and dividends paid. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. FAIR ISAAC CORPORATION RECONCILIATION OF NON-GAAP GUIDANCE (In millions, except per share data) (Unaudited) Fiscal 2022 Guidance GAAP net income $ 350 Amortization of intangible assets 2 Stock-based compensation expense 115 Income tax adjustments (30 ) Excess tax benefit (8 ) Non-GAAP net income $ 429 GAAP diluted earnings per share $ 13.11 Amortization of intangible assets 0.08 Stock-based compensation expense 4.31 Income tax adjustments (1.12 ) Excess tax benefit (0.29 ) Non-GAAP diluted earnings per share $ 16.08 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures and dividends paid. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005656/en/Contacts Investors/Analysts: Steve Weber (800) 213-5542 investor@fico.com Media: Katie O’Connell (510) 621-9832 press@fico.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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FICO Announces Earnings of $3.61 per Share for Third Quarter Fiscal 2022 By: FICO via Business Wire August 03, 2022 at 16:15 PM EDT Revenue of $349 million vs. $338 million in prior year FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its third fiscal quarter ended June 30, 2022. Third Quarter Fiscal 2022 GAAP Results Net income for the quarter totaled $93.5 million, or $3.61 per share, versus $151.2 million, or $5.18 per share, in the prior year period. The prior year results included a pre-tax gain of $92.8 million on the sale of the Debt Collections and Recovery product line, or $2.52 per share after tax. Net cash provided by operating activities for the quarter was $117.1 million versus $100.6 million in the prior year period. Third Quarter Fiscal 2022 Non-GAAP Results Non-GAAP Net Income for the quarter was $115.7 million, or $4.47 per share, versus $98.8 million, or $3.38 per share, in the prior year period. Free cash flow was $115.2 million for the quarter versus $99.0 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. Third Quarter Fiscal 2022 GAAP Revenue The company reported revenues of $349.0 million for the quarter as compared to $338.2 million reported in the prior year period. “We delivered excellent results again this quarter, demonstrating the resilience of our business,” said Will Lansing, chief executive officer. “We remain well positioned for continued growth as we finish our fiscal year.” Revenues for the third quarter of fiscal 2022 across 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) scoring solutions, were $179.4 million in the third quarter, compared to $172.2 million in the prior year period, an increase of 4%. B2B revenue increased 3%, driven largely by unit price increases and increases in unsecured credit Originations volumes, partially offset by decreases in Mortgage Origination volumes. B2C revenue increased 7% from the prior year period primarily due to growth in our partner channel. Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $169.6 million in the third quarter, compared to $166.0 million in the prior year period, an increase of 2%, primarily attributable to an increase in our platform software revenue, partially offset by the sale of the Debt Collections and Recovery product line in June 2021, and reduced Professional Services revenue. Year-over-year, Software Annual Recurring Revenue (ARR) was up 9%, consisting of 60% platform ARR growth and 1% non-platform ARR growth. Software Dollar-Based Net Retention Rate was 108% in the third quarter, with platform solutions at 135% and non-platform solutions at 101%. Outlook The company is reiterating its previously provided guidance for fiscal 2022: Fiscal 2022 Guidance Revenues $1.355 billion GAAP Net Income $350 million GAAP EPS $13.11 Non GAAP Net Income $429 million Non GAAP EPS $16.08 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 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its third quarter fiscal 2022 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 August 3, 2023. 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 165 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, 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 helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time. Learn more at http://www.fico.com Join the conversation at https://twitter.com/fico & http://www.fico.com/en/blogs/ 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 impact of COVID-19 on macroeconomic conditions and FICO’s business, operations and personnel, the success of the Company’s business strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, the effects of, and any changes in, laws and regulations applicable to the Company's business or its customers, the failure to protect data privacy and security, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments in global economic conditions or in the markets we serve. 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, 2021 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) June 30, September 30, 2022 2021 ASSETS: Current assets: Cash and cash equivalents $ 155,062 $ 195,354 Accounts receivable, net 286,341 312,107 Prepaid expenses and other current assets 31,854 43,513 Total current assets 473,257 550,974 Marketable securities and investments 26,560 33,196 Property and equipment, net 20,449 27,913 Operating lease right-of-use-assets 39,711 47,275 Goodwill and intangible assets, net 775,132 792,284 Other assets 121,727 116,134 $ 1,456,836 $ 1,567,776 LIABILITIES AND STOCKHOLDERS' DEFICIT: Current liabilities: Accounts payable and other accrued liabilities $ 75,175 $ 100,284 Accrued compensation and employee benefits 80,194 103,506 Deferred revenue 98,486 105,417 Current maturities on debt 130,000 250,000 Total current liabilities 383,855 559,207 Long-term debt 1,826,671 1,009,018 Operating lease liabilities 42,970 53,670 Other liabilities 50,812 56,823 Total liabilities 2,304,308 1,678,718 Stockholders' deficit (847,472 ) (110,942 ) $ 1,456,836 $ 1,567,776 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Quarter Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Revenues: On-premises and SaaS software $ 142,537 $ 130,230 $ 417,963 $ 382,236 Professional services 27,074 35,752 77,975 114,151 Scores 179,355 172,202 532,584 485,572 Total revenues 348,966 338,184 1,028,522 981,959 Operating expenses: Cost of revenues 78,691 82,240 219,688 260,101 Research & development 35,880 45,826 111,247 130,089 Selling, general and administrative 93,248 107,729 287,710 298,912 Amortization of intangible assets 532 810 1,619 2,692 Gains on product line asset sales and business divestiture - (92,805 ) - (100,139 ) Total operating expenses 208,351 143,800 620,264 591,655 Operating income 140,615 194,384 408,258 390,304 Other expense, net (19,721 ) (6,492 ) (50,059 ) (22,628 ) Income before income taxes 120,894 187,892 358,199 367,676 Provision for income taxes 27,394 36,694 75,357 61,312 Net income $ 93,500 $ 151,198 $ 282,842 $ 306,364 Basic earnings per share: $ 3.65 $ 5.27 $ 10.75 $ 10.58 Diluted earnings per share: $ 3.61 $ 5.18 $ 10.63 $ 10.38 Shares used in computing earnings per share: Basic 25,634 28,687 26,319 28,967 Diluted 25,867 29,195 26,608 29,505 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended June 30, 2022 2021 Cash flows from operating activities: Net income $ 282,842 $ 306,364 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 15,819 20,066 Share-based compensation 86,363 84,099 Changes in operating assets and liabilities (43,489 ) 24,728 Gains on product line asset sales and business divestiture - (100,139 ) Other, net 23,089 (3,056 ) Net cash provided by operating activities 364,624 332,062 Cash flows from investing activities: Purchases of property and equipment (5,232 ) (5,792 ) Net activity from marketable securities (1,447 ) (2,827 ) Proceeds from product line asset sales and business divestiture 2,257 146,428 Other, net - (210 ) Net cash provided by (used in) investing activities (4,422 ) 137,599 Cash flows from financing activities: Proceeds from revolving line of credit and term loan 1,010,000 429,000 Payments on revolving line of credit and term loan (855,500 ) (208,000 ) Proceeds from issuance of senior notes 550,000 - Proceeds from issuance of treasury stock under employee stock plans 11,117 14,580 Taxes paid related to net share settlement of equity awards (49,027 ) (88,770 ) Repurchases of common stock (1,048,027 ) (541,205 ) Other, net (8,819 ) (177 ) Net cash used in financing activities (390,256 ) (394,572 ) Effect of exchange rate changes on cash (10,238 ) 5,129 Increase (decrease) in cash and cash equivalents (40,292 ) 80,218 Cash and cash equivalents, beginning of period 195,354 157,394 Cash and cash equivalents, end of period $ 155,062 $ 237,612 FAIR ISAAC CORPORATION NON-GAAP RESULTS (In thousands, except per share data) (Unaudited) Quarter Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 GAAP net income $ 93,500 $ 151,198 $ 282,842 $ 306,364 Amortization of intangible assets 532 810 1,619 2,692 Gains on product line asset sales and business divestiture - (92,805 ) - (100,139 ) Stock-based compensation expense 28,549 30,761 86,363 84,099 Income tax adjustments (6,842 ) 11,391 (21,012 ) (366 ) Excess tax benefit (78 ) (2,561 ) (8,530 ) (22,073 ) Non-GAAP net income $ 115,661 $ 98,794 $ 341,282 $ 270,577 GAAP diluted earnings per share $ 3.61 $ 5.18 $ 10.63 $ 10.38 Amortization of intangible assets 0.02 0.03 0.06 0.09 Gains on product line asset sales and business divestiture - (3.18 ) - (3.39 ) Stock-based compensation expense 1.10 1.05 3.25 2.85 Income tax adjustments (0.26 ) 0.39 (0.79 ) (0.01 ) Excess tax benefit (0.00 ) (0.09 ) (0.32 ) (0.75 ) Non-GAAP diluted earnings per share $ 4.47 $ 3.38 $ 12.83 $ 9.17 Free cash flow Net cash provided by operating activities $ 117,140 $ 100,592 $ 364,625 $ 332,062 Capital expenditures (1,939 ) (1,572 ) (5,232 ) (5,792 ) Free cash flow $ 115,201 $ 99,020 $ 359,393 $ 326,270 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures and dividends paid. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. FAIR ISAAC CORPORATION RECONCILIATION OF NON-GAAP GUIDANCE (In millions, except per share data) (Unaudited) Fiscal 2022 Guidance GAAP net income $ 350 Amortization of intangible assets 2 Stock-based compensation expense 115 Income tax adjustments (30 ) Excess tax benefit (8 ) Non-GAAP net income $ 429 GAAP diluted earnings per share $ 13.11 Amortization of intangible assets 0.08 Stock-based compensation expense 4.31 Income tax adjustments (1.12 ) Excess tax benefit (0.29 ) Non-GAAP diluted earnings per share $ 16.08 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures and dividends paid. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005656/en/Contacts Investors/Analysts: Steve Weber (800) 213-5542 investor@fico.com Media: Katie O’Connell (510) 621-9832 press@fico.com
FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its third fiscal quarter ended June 30, 2022. Third Quarter Fiscal 2022 GAAP Results Net income for the quarter totaled $93.5 million, or $3.61 per share, versus $151.2 million, or $5.18 per share, in the prior year period. The prior year results included a pre-tax gain of $92.8 million on the sale of the Debt Collections and Recovery product line, or $2.52 per share after tax. Net cash provided by operating activities for the quarter was $117.1 million versus $100.6 million in the prior year period. Third Quarter Fiscal 2022 Non-GAAP Results Non-GAAP Net Income for the quarter was $115.7 million, or $4.47 per share, versus $98.8 million, or $3.38 per share, in the prior year period. Free cash flow was $115.2 million for the quarter versus $99.0 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. Third Quarter Fiscal 2022 GAAP Revenue The company reported revenues of $349.0 million for the quarter as compared to $338.2 million reported in the prior year period. “We delivered excellent results again this quarter, demonstrating the resilience of our business,” said Will Lansing, chief executive officer. “We remain well positioned for continued growth as we finish our fiscal year.” Revenues for the third quarter of fiscal 2022 across 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) scoring solutions, were $179.4 million in the third quarter, compared to $172.2 million in the prior year period, an increase of 4%. B2B revenue increased 3%, driven largely by unit price increases and increases in unsecured credit Originations volumes, partially offset by decreases in Mortgage Origination volumes. B2C revenue increased 7% from the prior year period primarily due to growth in our partner channel. Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $169.6 million in the third quarter, compared to $166.0 million in the prior year period, an increase of 2%, primarily attributable to an increase in our platform software revenue, partially offset by the sale of the Debt Collections and Recovery product line in June 2021, and reduced Professional Services revenue. Year-over-year, Software Annual Recurring Revenue (ARR) was up 9%, consisting of 60% platform ARR growth and 1% non-platform ARR growth. Software Dollar-Based Net Retention Rate was 108% in the third quarter, with platform solutions at 135% and non-platform solutions at 101%. Outlook The company is reiterating its previously provided guidance for fiscal 2022: Fiscal 2022 Guidance Revenues $1.355 billion GAAP Net Income $350 million GAAP EPS $13.11 Non GAAP Net Income $429 million Non GAAP EPS $16.08 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 today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its third quarter fiscal 2022 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 August 3, 2023. 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 165 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, 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 helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time. Learn more at http://www.fico.com Join the conversation at https://twitter.com/fico & http://www.fico.com/en/blogs/ 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 impact of COVID-19 on macroeconomic conditions and FICO’s business, operations and personnel, the success of the Company’s business strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, the effects of, and any changes in, laws and regulations applicable to the Company's business or its customers, the failure to protect data privacy and security, the failure to realize the anticipated benefits of any acquisitions or divestitures, and material adverse developments in global economic conditions or in the markets we serve. 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, 2021 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) June 30, September 30, 2022 2021 ASSETS: Current assets: Cash and cash equivalents $ 155,062 $ 195,354 Accounts receivable, net 286,341 312,107 Prepaid expenses and other current assets 31,854 43,513 Total current assets 473,257 550,974 Marketable securities and investments 26,560 33,196 Property and equipment, net 20,449 27,913 Operating lease right-of-use-assets 39,711 47,275 Goodwill and intangible assets, net 775,132 792,284 Other assets 121,727 116,134 $ 1,456,836 $ 1,567,776 LIABILITIES AND STOCKHOLDERS' DEFICIT: Current liabilities: Accounts payable and other accrued liabilities $ 75,175 $ 100,284 Accrued compensation and employee benefits 80,194 103,506 Deferred revenue 98,486 105,417 Current maturities on debt 130,000 250,000 Total current liabilities 383,855 559,207 Long-term debt 1,826,671 1,009,018 Operating lease liabilities 42,970 53,670 Other liabilities 50,812 56,823 Total liabilities 2,304,308 1,678,718 Stockholders' deficit (847,472 ) (110,942 ) $ 1,456,836 $ 1,567,776 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Quarter Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 Revenues: On-premises and SaaS software $ 142,537 $ 130,230 $ 417,963 $ 382,236 Professional services 27,074 35,752 77,975 114,151 Scores 179,355 172,202 532,584 485,572 Total revenues 348,966 338,184 1,028,522 981,959 Operating expenses: Cost of revenues 78,691 82,240 219,688 260,101 Research & development 35,880 45,826 111,247 130,089 Selling, general and administrative 93,248 107,729 287,710 298,912 Amortization of intangible assets 532 810 1,619 2,692 Gains on product line asset sales and business divestiture - (92,805 ) - (100,139 ) Total operating expenses 208,351 143,800 620,264 591,655 Operating income 140,615 194,384 408,258 390,304 Other expense, net (19,721 ) (6,492 ) (50,059 ) (22,628 ) Income before income taxes 120,894 187,892 358,199 367,676 Provision for income taxes 27,394 36,694 75,357 61,312 Net income $ 93,500 $ 151,198 $ 282,842 $ 306,364 Basic earnings per share: $ 3.65 $ 5.27 $ 10.75 $ 10.58 Diluted earnings per share: $ 3.61 $ 5.18 $ 10.63 $ 10.38 Shares used in computing earnings per share: Basic 25,634 28,687 26,319 28,967 Diluted 25,867 29,195 26,608 29,505 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Nine Months Ended June 30, 2022 2021 Cash flows from operating activities: Net income $ 282,842 $ 306,364 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 15,819 20,066 Share-based compensation 86,363 84,099 Changes in operating assets and liabilities (43,489 ) 24,728 Gains on product line asset sales and business divestiture - (100,139 ) Other, net 23,089 (3,056 ) Net cash provided by operating activities 364,624 332,062 Cash flows from investing activities: Purchases of property and equipment (5,232 ) (5,792 ) Net activity from marketable securities (1,447 ) (2,827 ) Proceeds from product line asset sales and business divestiture 2,257 146,428 Other, net - (210 ) Net cash provided by (used in) investing activities (4,422 ) 137,599 Cash flows from financing activities: Proceeds from revolving line of credit and term loan 1,010,000 429,000 Payments on revolving line of credit and term loan (855,500 ) (208,000 ) Proceeds from issuance of senior notes 550,000 - Proceeds from issuance of treasury stock under employee stock plans 11,117 14,580 Taxes paid related to net share settlement of equity awards (49,027 ) (88,770 ) Repurchases of common stock (1,048,027 ) (541,205 ) Other, net (8,819 ) (177 ) Net cash used in financing activities (390,256 ) (394,572 ) Effect of exchange rate changes on cash (10,238 ) 5,129 Increase (decrease) in cash and cash equivalents (40,292 ) 80,218 Cash and cash equivalents, beginning of period 195,354 157,394 Cash and cash equivalents, end of period $ 155,062 $ 237,612 FAIR ISAAC CORPORATION NON-GAAP RESULTS (In thousands, except per share data) (Unaudited) Quarter Ended Nine Months Ended June 30, June 30, 2022 2021 2022 2021 GAAP net income $ 93,500 $ 151,198 $ 282,842 $ 306,364 Amortization of intangible assets 532 810 1,619 2,692 Gains on product line asset sales and business divestiture - (92,805 ) - (100,139 ) Stock-based compensation expense 28,549 30,761 86,363 84,099 Income tax adjustments (6,842 ) 11,391 (21,012 ) (366 ) Excess tax benefit (78 ) (2,561 ) (8,530 ) (22,073 ) Non-GAAP net income $ 115,661 $ 98,794 $ 341,282 $ 270,577 GAAP diluted earnings per share $ 3.61 $ 5.18 $ 10.63 $ 10.38 Amortization of intangible assets 0.02 0.03 0.06 0.09 Gains on product line asset sales and business divestiture - (3.18 ) - (3.39 ) Stock-based compensation expense 1.10 1.05 3.25 2.85 Income tax adjustments (0.26 ) 0.39 (0.79 ) (0.01 ) Excess tax benefit (0.00 ) (0.09 ) (0.32 ) (0.75 ) Non-GAAP diluted earnings per share $ 4.47 $ 3.38 $ 12.83 $ 9.17 Free cash flow Net cash provided by operating activities $ 117,140 $ 100,592 $ 364,625 $ 332,062 Capital expenditures (1,939 ) (1,572 ) (5,232 ) (5,792 ) Free cash flow $ 115,201 $ 99,020 $ 359,393 $ 326,270 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures and dividends paid. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. FAIR ISAAC CORPORATION RECONCILIATION OF NON-GAAP GUIDANCE (In millions, except per share data) (Unaudited) Fiscal 2022 Guidance GAAP net income $ 350 Amortization of intangible assets 2 Stock-based compensation expense 115 Income tax adjustments (30 ) Excess tax benefit (8 ) Non-GAAP net income $ 429 GAAP diluted earnings per share $ 13.11 Amortization of intangible assets 0.08 Stock-based compensation expense 4.31 Income tax adjustments (1.12 ) Excess tax benefit (0.29 ) Non-GAAP diluted earnings per share $ 16.08 Note: The numbers may not sum to total due to rounding. About Non-GAAP Financial Measures To supplement the consolidated GAAP financial statements, the company uses the following non-GAAP financial measures: non-GAAP net income, non-GAAP EPS, and free cash flow. Non-GAAP net income and non-GAAP EPS exclude the impact of amortization expense, share-based compensation expense, restructuring and acquisition-related, excess tax benefit, and adjustment to tax valuation allowance items. Free cash flow excludes capital expenditures and dividends paid. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain items that may not be indicative of recurring business results including significant non-cash expenses. We believe management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors because they allow for greater transparency with respect to key measures used by management in its financial and operating decision-making. View source version on businesswire.com: https://www.businesswire.com/news/home/20220803005656/en/
Investors/Analysts: Steve Weber (800) 213-5542 investor@fico.com Media: Katie O’Connell (510) 621-9832 press@fico.com