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 $3.84 per Share for First Quarter Fiscal 2023 By: FICO via Business Wire January 26, 2023 at 16:15 PM EST Revenue of $345 million vs. $322 million in prior year FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its first fiscal quarter ended December 31, 2022. First Quarter Fiscal 2023 GAAP Results Net income for the quarter totaled $97.6 million, or $3.84 per share, versus $85.0 million, or $3.09 per share, in the prior year period. Net cash provided by operating activities for the quarter was $92.4 million versus $124.9 million in the prior year period. First Quarter Fiscal 2023 Non-GAAP Results Non-GAAP Net Income for the quarter was $108.5 million versus $101.9 million in the prior year period. Non-GAAP EPS for the quarter was $4.26 versus $3.70 in the prior year period. Free cash flow was $91.6 million for the current quarter versus $124.0 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. First Quarter Fiscal 2023 GAAP Revenue The company reported revenues of $344.9 million for the quarter as compared to $322.4 million reported in the prior year period. “We had a strong start to our Fiscal 2023,” said Will Lansing, chief executive officer. “We continue to deliver earnings growth, and are pleased with the progress we are making on our strategic initiatives.” Revenues for the first quarter of fiscal 2023 for the company’s two operating segments were as follows: Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $166.9 million in the first quarter, compared to $152.9 million in the prior year period, an increase of 9%, due to increased recurring revenue, partially offset by a decrease in professional services. Software Annual Recurring Revenue was up 11% year-over-year, consisting of 46% platform ARR growth and 4% non-platform growth. Software Dollar-Based Net Retention Rate was 110% in the first quarter, with platform software at 130% and non-platform software at 103%. Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) scoring solutions, were $178.0 million in the first quarter, compared to $169.5 million in the prior year period, an increase of 5%. B2B revenue increased 11%, driven largely by a multi-year license renewal as well as increases in unit prices and in card and personal loan originations volumes, partially offset by declines in mortgage originations volumes. B2C revenue decreased 6% from the prior year period due to lower volumes at myFICO.com. Outlook The company is reiterating the following guidance for fiscal 2023: Fiscal 2023 Guidance Revenues $1.463 billion GAAP Net Income $401 million GAAP EPS $16.00 Non-GAAP Net Income $487 million Non-GAAP EPS $19.42 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 first quarter fiscal 2023 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 January 26, 2024. 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 200 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 120 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/ For FICO news and media resources, visit www.fico.com/news. 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, 2022 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) December 31, September 30, 2022 2022 ASSETS: Current assets: Cash and cash equivalents $ 139,856 $ 133,202 Accounts receivable, net 308,234 322,410 Prepaid expenses and other current assets 35,732 29,103 Total current assets 483,822 484,715 Marketable securities and investments 27,538 25,650 Property and equipment, net 14,976 17,580 Operating lease right-of-use-assets 32,366 36,688 Goodwill and intangible assets, net 773,197 763,084 Other assets 126,794 114,317 $ 1,458,693 $ 1,442,034 LIABILITIES AND STOCKHOLDERS' DEFICIT: Current liabilities: Accounts payable and other accrued liabilities $ 68,216 $ 83,521 Accrued compensation and employee benefits 59,876 97,893 Deferred revenue 126,896 120,045 Current maturities on debt 100,000 30,000 Total current liabilities 354,988 331,459 Long-term debt 1,820,666 1,823,669 Operating lease liabilities 32,400 39,192 Other liabilities 52,734 49,661 Total liabilities 2,260,788 2,243,981 Stockholders' deficit (802,095 ) (801,947 ) $ 1,458,693 $ 1,442,034 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2022 2021 Revenues: On-premises and SaaS software $ 144,560 $ 126,338 Professional services 22,322 26,536 Scores 177,988 169,487 Total revenues 344,870 322,361 Operating expenses: Cost of revenues 76,569 69,203 Research & development 36,633 38,980 Selling, general and administrative 92,995 98,048 Amortization of intangible assets 275 544 Gain on product line asset sale (1,941 ) - Total operating expenses 204,531 206,775 Operating income 140,339 115,586 Other expense, net (22,436 ) (10,766 ) Income before income taxes 117,903 104,820 Provision for income taxes 20,260 19,861 Net income $ 97,643 $ 84,959 Basic earnings per share: $ 3.90 $ 3.13 Diluted earnings per share: $ 3.84 $ 3.09 Shares used in computing earnings per share: Basic 25,045 27,167 Diluted 25,443 27,524 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Quarter Ended December 31, 2022 2021 Cash flows from operating activities: Net income $ 97,643 $ 84,959 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,280 5,227 Share-based compensation 29,702 29,878 Changes in operating assets and liabilities (33,250 ) (4,171 ) Gain on product line asset sale (1,941 ) - Other, net (3,994 ) 8,988 Net cash provided by operating activities 92,440 124,881 Cash flows from investing activities: Purchases of property and equipment (850 ) (895 ) Net activity from marketable securities (2,165 ) (2,634 ) Proceeds from product line asset sales, net of cash transferred (7,575 ) 2,257 Net cash used in investing activities (10,590 ) (1,272 ) Cash flows from financing activities: Proceeds from revolving line of credit and term loan 169,000 620,000 Payments on revolving line of credit and term loan (102,750 ) (788,000 ) Proceeds from issuance of senior notes - 550,000 Proceeds from issuance of treasury stock under employee stock plans 1,995 550 Taxes paid related to net share settlement of equity awards (72,865 ) (47,024 ) Repurchases of common stock (75,004 ) (482,755 ) Other, net - (8,200 ) Net cash used in financing activities (79,624 ) (155,429 ) Effect of exchange rate changes on cash 4,428 (1,377 ) Increase (decrease) in cash and cash equivalents 6,654 (33,197 ) Cash and cash equivalents, beginning of period 133,202 195,354 Cash and cash equivalents, end of period $ 139,856 $ 162,157 FAIR ISAAC CORPORATION NON-GAAP RESULTS (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2022 2021 GAAP net income $ 97,643 $ 84,959 Amortization of intangible assets 275 544 Gain on product line asset sale (1,941 ) - Share-based compensation expense 29,702 29,878 Income tax adjustments (6,914 ) (7,493 ) Excess tax benefit (10,304 ) (5,957 ) Non-GAAP net income $ 108,461 $ 101,931 GAAP diluted earnings per share $ 3.84 $ 3.09 Amortization of intangible assets 0.01 0.02 Gain on product line asset sale (0.08 ) - Share-based compensation expense 1.17 1.09 Income tax adjustments (0.27 ) (0.27 ) Excess tax benefit (0.40 ) (0.22 ) Non-GAAP diluted earnings per share $ 4.26 $ 3.70 Free cash flow Net cash provided by operating activities $ 92,440 $ 124,881 Capital expenditures (850 ) (895 ) Free cash flow $ 91,590 $ 123,986 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, to the extent applicable, such items as 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. 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 2023 Guidance GAAP net income $ 401 Amortization of intangible assets 1 Share-based compensation expense 120 Income tax adjustments (30 ) Excess tax benefit (5 ) Non-GAAP net income $ 487 GAAP diluted earnings per share $ 16.00 Amortization of intangible assets 0.04 Share-based compensation expense 4.78 Income tax adjustments (1.21 ) Excess tax benefit (0.20 ) Non-GAAP diluted earnings per share $ 19.42 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, to the extent applicable, such items as 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. 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/20230126005680/en/Contacts Investors/Analysts: Steve Weber Fair Isaac Corporation (800) 459-7125 investor@fico.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
FICO Announces Earnings of $3.84 per Share for First Quarter Fiscal 2023 By: FICO via Business Wire January 26, 2023 at 16:15 PM EST Revenue of $345 million vs. $322 million in prior year FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its first fiscal quarter ended December 31, 2022. First Quarter Fiscal 2023 GAAP Results Net income for the quarter totaled $97.6 million, or $3.84 per share, versus $85.0 million, or $3.09 per share, in the prior year period. Net cash provided by operating activities for the quarter was $92.4 million versus $124.9 million in the prior year period. First Quarter Fiscal 2023 Non-GAAP Results Non-GAAP Net Income for the quarter was $108.5 million versus $101.9 million in the prior year period. Non-GAAP EPS for the quarter was $4.26 versus $3.70 in the prior year period. Free cash flow was $91.6 million for the current quarter versus $124.0 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. First Quarter Fiscal 2023 GAAP Revenue The company reported revenues of $344.9 million for the quarter as compared to $322.4 million reported in the prior year period. “We had a strong start to our Fiscal 2023,” said Will Lansing, chief executive officer. “We continue to deliver earnings growth, and are pleased with the progress we are making on our strategic initiatives.” Revenues for the first quarter of fiscal 2023 for the company’s two operating segments were as follows: Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $166.9 million in the first quarter, compared to $152.9 million in the prior year period, an increase of 9%, due to increased recurring revenue, partially offset by a decrease in professional services. Software Annual Recurring Revenue was up 11% year-over-year, consisting of 46% platform ARR growth and 4% non-platform growth. Software Dollar-Based Net Retention Rate was 110% in the first quarter, with platform software at 130% and non-platform software at 103%. Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) scoring solutions, were $178.0 million in the first quarter, compared to $169.5 million in the prior year period, an increase of 5%. B2B revenue increased 11%, driven largely by a multi-year license renewal as well as increases in unit prices and in card and personal loan originations volumes, partially offset by declines in mortgage originations volumes. B2C revenue decreased 6% from the prior year period due to lower volumes at myFICO.com. Outlook The company is reiterating the following guidance for fiscal 2023: Fiscal 2023 Guidance Revenues $1.463 billion GAAP Net Income $401 million GAAP EPS $16.00 Non-GAAP Net Income $487 million Non-GAAP EPS $19.42 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 first quarter fiscal 2023 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 January 26, 2024. 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 200 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 120 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/ For FICO news and media resources, visit www.fico.com/news. 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, 2022 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) December 31, September 30, 2022 2022 ASSETS: Current assets: Cash and cash equivalents $ 139,856 $ 133,202 Accounts receivable, net 308,234 322,410 Prepaid expenses and other current assets 35,732 29,103 Total current assets 483,822 484,715 Marketable securities and investments 27,538 25,650 Property and equipment, net 14,976 17,580 Operating lease right-of-use-assets 32,366 36,688 Goodwill and intangible assets, net 773,197 763,084 Other assets 126,794 114,317 $ 1,458,693 $ 1,442,034 LIABILITIES AND STOCKHOLDERS' DEFICIT: Current liabilities: Accounts payable and other accrued liabilities $ 68,216 $ 83,521 Accrued compensation and employee benefits 59,876 97,893 Deferred revenue 126,896 120,045 Current maturities on debt 100,000 30,000 Total current liabilities 354,988 331,459 Long-term debt 1,820,666 1,823,669 Operating lease liabilities 32,400 39,192 Other liabilities 52,734 49,661 Total liabilities 2,260,788 2,243,981 Stockholders' deficit (802,095 ) (801,947 ) $ 1,458,693 $ 1,442,034 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2022 2021 Revenues: On-premises and SaaS software $ 144,560 $ 126,338 Professional services 22,322 26,536 Scores 177,988 169,487 Total revenues 344,870 322,361 Operating expenses: Cost of revenues 76,569 69,203 Research & development 36,633 38,980 Selling, general and administrative 92,995 98,048 Amortization of intangible assets 275 544 Gain on product line asset sale (1,941 ) - Total operating expenses 204,531 206,775 Operating income 140,339 115,586 Other expense, net (22,436 ) (10,766 ) Income before income taxes 117,903 104,820 Provision for income taxes 20,260 19,861 Net income $ 97,643 $ 84,959 Basic earnings per share: $ 3.90 $ 3.13 Diluted earnings per share: $ 3.84 $ 3.09 Shares used in computing earnings per share: Basic 25,045 27,167 Diluted 25,443 27,524 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Quarter Ended December 31, 2022 2021 Cash flows from operating activities: Net income $ 97,643 $ 84,959 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,280 5,227 Share-based compensation 29,702 29,878 Changes in operating assets and liabilities (33,250 ) (4,171 ) Gain on product line asset sale (1,941 ) - Other, net (3,994 ) 8,988 Net cash provided by operating activities 92,440 124,881 Cash flows from investing activities: Purchases of property and equipment (850 ) (895 ) Net activity from marketable securities (2,165 ) (2,634 ) Proceeds from product line asset sales, net of cash transferred (7,575 ) 2,257 Net cash used in investing activities (10,590 ) (1,272 ) Cash flows from financing activities: Proceeds from revolving line of credit and term loan 169,000 620,000 Payments on revolving line of credit and term loan (102,750 ) (788,000 ) Proceeds from issuance of senior notes - 550,000 Proceeds from issuance of treasury stock under employee stock plans 1,995 550 Taxes paid related to net share settlement of equity awards (72,865 ) (47,024 ) Repurchases of common stock (75,004 ) (482,755 ) Other, net - (8,200 ) Net cash used in financing activities (79,624 ) (155,429 ) Effect of exchange rate changes on cash 4,428 (1,377 ) Increase (decrease) in cash and cash equivalents 6,654 (33,197 ) Cash and cash equivalents, beginning of period 133,202 195,354 Cash and cash equivalents, end of period $ 139,856 $ 162,157 FAIR ISAAC CORPORATION NON-GAAP RESULTS (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2022 2021 GAAP net income $ 97,643 $ 84,959 Amortization of intangible assets 275 544 Gain on product line asset sale (1,941 ) - Share-based compensation expense 29,702 29,878 Income tax adjustments (6,914 ) (7,493 ) Excess tax benefit (10,304 ) (5,957 ) Non-GAAP net income $ 108,461 $ 101,931 GAAP diluted earnings per share $ 3.84 $ 3.09 Amortization of intangible assets 0.01 0.02 Gain on product line asset sale (0.08 ) - Share-based compensation expense 1.17 1.09 Income tax adjustments (0.27 ) (0.27 ) Excess tax benefit (0.40 ) (0.22 ) Non-GAAP diluted earnings per share $ 4.26 $ 3.70 Free cash flow Net cash provided by operating activities $ 92,440 $ 124,881 Capital expenditures (850 ) (895 ) Free cash flow $ 91,590 $ 123,986 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, to the extent applicable, such items as 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. 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 2023 Guidance GAAP net income $ 401 Amortization of intangible assets 1 Share-based compensation expense 120 Income tax adjustments (30 ) Excess tax benefit (5 ) Non-GAAP net income $ 487 GAAP diluted earnings per share $ 16.00 Amortization of intangible assets 0.04 Share-based compensation expense 4.78 Income tax adjustments (1.21 ) Excess tax benefit (0.20 ) Non-GAAP diluted earnings per share $ 19.42 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, to the extent applicable, such items as 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. 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/20230126005680/en/Contacts Investors/Analysts: Steve Weber Fair Isaac Corporation (800) 459-7125 investor@fico.com
FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its first fiscal quarter ended December 31, 2022. First Quarter Fiscal 2023 GAAP Results Net income for the quarter totaled $97.6 million, or $3.84 per share, versus $85.0 million, or $3.09 per share, in the prior year period. Net cash provided by operating activities for the quarter was $92.4 million versus $124.9 million in the prior year period. First Quarter Fiscal 2023 Non-GAAP Results Non-GAAP Net Income for the quarter was $108.5 million versus $101.9 million in the prior year period. Non-GAAP EPS for the quarter was $4.26 versus $3.70 in the prior year period. Free cash flow was $91.6 million for the current quarter versus $124.0 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. First Quarter Fiscal 2023 GAAP Revenue The company reported revenues of $344.9 million for the quarter as compared to $322.4 million reported in the prior year period. “We had a strong start to our Fiscal 2023,” said Will Lansing, chief executive officer. “We continue to deliver earnings growth, and are pleased with the progress we are making on our strategic initiatives.” Revenues for the first quarter of fiscal 2023 for the company’s two operating segments were as follows: Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $166.9 million in the first quarter, compared to $152.9 million in the prior year period, an increase of 9%, due to increased recurring revenue, partially offset by a decrease in professional services. Software Annual Recurring Revenue was up 11% year-over-year, consisting of 46% platform ARR growth and 4% non-platform growth. Software Dollar-Based Net Retention Rate was 110% in the first quarter, with platform software at 130% and non-platform software at 103%. Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) scoring solutions, were $178.0 million in the first quarter, compared to $169.5 million in the prior year period, an increase of 5%. B2B revenue increased 11%, driven largely by a multi-year license renewal as well as increases in unit prices and in card and personal loan originations volumes, partially offset by declines in mortgage originations volumes. B2C revenue decreased 6% from the prior year period due to lower volumes at myFICO.com. Outlook The company is reiterating the following guidance for fiscal 2023: Fiscal 2023 Guidance Revenues $1.463 billion GAAP Net Income $401 million GAAP EPS $16.00 Non-GAAP Net Income $487 million Non-GAAP EPS $19.42 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 first quarter fiscal 2023 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 January 26, 2024. 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 200 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 120 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/ For FICO news and media resources, visit www.fico.com/news. 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, 2022 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) December 31, September 30, 2022 2022 ASSETS: Current assets: Cash and cash equivalents $ 139,856 $ 133,202 Accounts receivable, net 308,234 322,410 Prepaid expenses and other current assets 35,732 29,103 Total current assets 483,822 484,715 Marketable securities and investments 27,538 25,650 Property and equipment, net 14,976 17,580 Operating lease right-of-use-assets 32,366 36,688 Goodwill and intangible assets, net 773,197 763,084 Other assets 126,794 114,317 $ 1,458,693 $ 1,442,034 LIABILITIES AND STOCKHOLDERS' DEFICIT: Current liabilities: Accounts payable and other accrued liabilities $ 68,216 $ 83,521 Accrued compensation and employee benefits 59,876 97,893 Deferred revenue 126,896 120,045 Current maturities on debt 100,000 30,000 Total current liabilities 354,988 331,459 Long-term debt 1,820,666 1,823,669 Operating lease liabilities 32,400 39,192 Other liabilities 52,734 49,661 Total liabilities 2,260,788 2,243,981 Stockholders' deficit (802,095 ) (801,947 ) $ 1,458,693 $ 1,442,034 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2022 2021 Revenues: On-premises and SaaS software $ 144,560 $ 126,338 Professional services 22,322 26,536 Scores 177,988 169,487 Total revenues 344,870 322,361 Operating expenses: Cost of revenues 76,569 69,203 Research & development 36,633 38,980 Selling, general and administrative 92,995 98,048 Amortization of intangible assets 275 544 Gain on product line asset sale (1,941 ) - Total operating expenses 204,531 206,775 Operating income 140,339 115,586 Other expense, net (22,436 ) (10,766 ) Income before income taxes 117,903 104,820 Provision for income taxes 20,260 19,861 Net income $ 97,643 $ 84,959 Basic earnings per share: $ 3.90 $ 3.13 Diluted earnings per share: $ 3.84 $ 3.09 Shares used in computing earnings per share: Basic 25,045 27,167 Diluted 25,443 27,524 FAIR ISAAC CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Quarter Ended December 31, 2022 2021 Cash flows from operating activities: Net income $ 97,643 $ 84,959 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 4,280 5,227 Share-based compensation 29,702 29,878 Changes in operating assets and liabilities (33,250 ) (4,171 ) Gain on product line asset sale (1,941 ) - Other, net (3,994 ) 8,988 Net cash provided by operating activities 92,440 124,881 Cash flows from investing activities: Purchases of property and equipment (850 ) (895 ) Net activity from marketable securities (2,165 ) (2,634 ) Proceeds from product line asset sales, net of cash transferred (7,575 ) 2,257 Net cash used in investing activities (10,590 ) (1,272 ) Cash flows from financing activities: Proceeds from revolving line of credit and term loan 169,000 620,000 Payments on revolving line of credit and term loan (102,750 ) (788,000 ) Proceeds from issuance of senior notes - 550,000 Proceeds from issuance of treasury stock under employee stock plans 1,995 550 Taxes paid related to net share settlement of equity awards (72,865 ) (47,024 ) Repurchases of common stock (75,004 ) (482,755 ) Other, net - (8,200 ) Net cash used in financing activities (79,624 ) (155,429 ) Effect of exchange rate changes on cash 4,428 (1,377 ) Increase (decrease) in cash and cash equivalents 6,654 (33,197 ) Cash and cash equivalents, beginning of period 133,202 195,354 Cash and cash equivalents, end of period $ 139,856 $ 162,157 FAIR ISAAC CORPORATION NON-GAAP RESULTS (In thousands, except per share data) (Unaudited) Quarter Ended December 31, 2022 2021 GAAP net income $ 97,643 $ 84,959 Amortization of intangible assets 275 544 Gain on product line asset sale (1,941 ) - Share-based compensation expense 29,702 29,878 Income tax adjustments (6,914 ) (7,493 ) Excess tax benefit (10,304 ) (5,957 ) Non-GAAP net income $ 108,461 $ 101,931 GAAP diluted earnings per share $ 3.84 $ 3.09 Amortization of intangible assets 0.01 0.02 Gain on product line asset sale (0.08 ) - Share-based compensation expense 1.17 1.09 Income tax adjustments (0.27 ) (0.27 ) Excess tax benefit (0.40 ) (0.22 ) Non-GAAP diluted earnings per share $ 4.26 $ 3.70 Free cash flow Net cash provided by operating activities $ 92,440 $ 124,881 Capital expenditures (850 ) (895 ) Free cash flow $ 91,590 $ 123,986 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, to the extent applicable, such items as 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. 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 2023 Guidance GAAP net income $ 401 Amortization of intangible assets 1 Share-based compensation expense 120 Income tax adjustments (30 ) Excess tax benefit (5 ) Non-GAAP net income $ 487 GAAP diluted earnings per share $ 16.00 Amortization of intangible assets 0.04 Share-based compensation expense 4.78 Income tax adjustments (1.21 ) Excess tax benefit (0.20 ) Non-GAAP diluted earnings per share $ 19.42 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, to the extent applicable, such items as 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. 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/20230126005680/en/
