Key Takeaways Fair Isaac Corp. (FICO) stock fell Thursday after disclosures of insiders selling shares in the company. During the past week, two executives at the firm sold FICO shares worth a combined total of more than $8 million. Investors often consider sales by insiders as a sign of faltering optimism in a company's outlook. Shares of Fair Isaac Corp. (FICO), the financial analytics firm known for its credit scores, receded from an all-time high, tumbling 4.2% to log the weakest daily performance of an ...

Fair Isaac (FICO) reported third-quarter fiscal 2024 earnings of $6.25 per share, missing the Zacks Consensus Estimate by 1.88% but rising 10.4% year over year. Revenues of $448 million increased 12.3% on a year-over-year basis but lagged the consensus mark by 0.15%. Americas, EMEA and Asia Pacific contributed 85%, 10% and 5% to total revenues, respectively. Top-Line Details Software revenues, which include Fair Isaac's analytics and digital decisioning technology, as well as associated professional service ...

Fair Isaac Corporation (NYSE:FICO) Q3 2024 Earnings Conference Call July 31, 2024 5:00 PM ET Company Participants Dave Singleton - Vice President, Investor Relations Will Lansing - Chief Executive Officer Steve Weber - Chief Financial Officer Conference Call Participants Faiza Alwy - Deutsche Bank Surinder Thind - Jefferies Scott Wurtzel - Wolfe Research Kyle Peterson - Needham George Tong - Goldman Sachs Ashish Sabadra - RBC Simon Clinch - Redburn Atlantic Jeff Meuler - Baird Manav Patnaik - Barclays Opera ...

For the quarter ended June 2024, Fair Isaac (FICO) reported revenue of $447.85 million, up 12.3% over the same period last year. EPS came in at $6.25, compared to $5.66 in the year-ago quarter. The reported revenue represents a surprise of -0.15% over the Zacks Consensus Estimate of $448.53 million. With the consensus EPS estimate being $6.37, the EPS surprise was -1.88%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine th ...

Financial Performance - FICO reported third quarter fiscal 2024 revenue of $448 million, a 12.2% increase from $399 million in the prior year[1] - Net income for the quarter was $126.3 million, or $5.05 per share, compared to $128.8 million, or $5.08 per share, in the prior year[2] - Non-GAAP net income for the quarter was $156.4 million, with a non-GAAP EPS of $6.25, up from $143.4 million and $5.66 respectively in the prior year[3] - Scores revenues increased by 20% to $241.4 million, while software revenues grew by 5% to $206.4 million, driven by a 10% increase in Software Annual Recurring Revenue[4] - Net income for the nine months ended June 30, 2024, increased to $377,120 thousand, up from $327,951 thousand for the same period in 2023, representing a growth of approximately 15.0%[11] - Non-GAAP net income for the quarter ended June 30, 2024, was $156,391 thousand, compared to $143,396 thousand for the same quarter in 2023, indicating a year-over-year increase of approximately 9.3%[12] - GAAP diluted earnings per share for the quarter ended June 30, 2024, was $5.05, slightly down from $5.08 for the same quarter in 2023[12] Cash Flow and Investments - Free cash flow for the quarter was $205.7 million, significantly higher than $121.8 million in the prior year[3] - Net cash provided by operating activities for the nine months ended June 30, 2024, was $406,486 thousand, compared to $304,866 thousand for the same period in 2023, reflecting a significant increase of about 33.3%[11] - Free cash flow for the nine months ended June 30, 2024, was $388,058 thousand, compared to $301,697 thousand for the same period in 2023, marking an increase of about 28.6%[12] - The company reported a net cash used in investing activities of $20,434 thousand for the nine months ended June 30, 2024, compared to $12,974 thousand for the same period in 2023[11] - Proceeds from the revolving line of credit and term loans for the nine months ended June 30, 2024, amounted to $795,000 thousand, significantly higher than $339,000 thousand for the same period in 2023[11] Guidance and Projections - The company raised its full year guidance for fiscal 2024, projecting revenues of $1.700 billion and GAAP net income of $500 million[5] - The updated fiscal 2024 guidance for GAAP net income is projected at $500 million, up from the previous guidance of $495 million[14] - The updated fiscal 2024 guidance for non-GAAP diluted earnings per share is projected at $23.16, an increase from the previous guidance of $22.80[14] Balance Sheet - Total assets increased to $1.708 billion from $1.575 billion year-over-year[9] - Long-term debt rose to $2.105 billion from $1.812 billion in the previous year[9] - Stockholders' deficit increased to $(829.3) million from $(688.0) million year-over-year[9] Compensation and Retention - The Software Dollar-Based Net Retention Rate was 108% as of June 30, 2024, with platform software at 124%[4] - Share-based compensation expense for the nine months ended June 30, 2024, was $109,457 thousand, compared to $89,750 thousand for the same period in 2023, reflecting an increase of approximately 22.0%[12]

Financial Performance - Total revenues for the quarter ended June 30, 2024, were $447.8 million, a 12% increase from the same quarter in 2023[69]. - Revenues for the Scores segment were $241.5 million during the quarter ended June 30, 2024, a 20% increase from the same quarter in 2023[69]. - Annual Recurring Revenue for the Software segment as of June 30, 2024, was $709.6 million, a 10% increase from June 30, 2023[69]. - Operating income for the quarter ended June 30, 2024, was $190.3 million, a 7% increase from the same quarter in 2023[69]. - Net income for the quarter ended June 30, 2024, was $126.3 million, a 2% decrease from the same quarter in 2023[69]. - Diluted EPS for the quarter ended June 30, 2024, was $5.05, a 1% decrease from the same quarter in 2023[69]. - For the nine months ended June 30, 2024, total revenues reached $1.26 billion, a 12% increase from $1.12 billion in the same period of 2023[83]. - Net income for the nine months ended June 30, 2024, was $377.1 million, a 15% increase from $328.0 million in the same period of 2023[86]. Cash Flow and Debt - Cash flows from operating activities for the nine months ended June 30, 2024, were $406.5 million, compared to $304.9 million for the same period in 2023[69]. - Total debt balance as of June 30, 2024, was $2.1 billion, an increase from $1.9 billion as of September 30, 2023[69]. - Net cash used in financing activities increased to $365.0 million for the nine months ended June 30, 2024, up from $271.2 million in the prior year, primarily due to increased stock repurchases[117]. - The company has a total credit capacity of $1.35 billion, including a $600 million unsecured revolving line of credit and a $450 million unsecured term loan[122]. - As of June 30, 2024, the company had $118.0 million in borrowings under the revolving line of credit at a weighted-average interest rate of 6.688%[123]. Segment Performance - The Scores segment revenues for the quarter ended June 30, 2024, were $241.5 million, a 20% increase from $201.8 million in the same quarter of 2023[81]. - The Software segment revenues for the quarter ended June 30, 2024, were $206.4 million, reflecting a 5% increase from $196.9 million in the same quarter of 2023[81]. - The platform segment's ARR grew from $113.1 million to $164.1 million, reflecting a year-over-year increase of 45.2%[76]. - The non-platform segment's ARR increased from $437.0 million to $496.2 million, showing a year-over-year growth of 13.5%[76]. - Scores segment operating income increased by $36.0 million, driven by a $39.7 million increase in segment revenue, resulting in an operating income margin of 88%[106]. - Software segment operating income decreased by $5.3 million due to a $14.8 million increase in operating expenses, with an operating income margin dropping to 34% from 38%[107]. Expenses and Operating Metrics - Total operating expenses for Q2 2024 increased to $257.6 million, a 16% rise from $221.7 million in Q2 2023[85]. - Research and development expenses for Q2 2024 were $44.2 million, representing 10% of revenues, down from 11% in Q2 2023[90]. - Selling, general and administrative expenses for Q2 2024 totaled $124.9 million, accounting for 28% of revenues, up from 27% in Q2 2023[93]. - Interest expense for Q2 2024 was $26.9 million, an increase of 9% from $24.5 million in Q2 2023[85]. - The effective income tax rate for Q2 2024 was 24.5%, compared to 18.4% in Q2 2023[102]. Stock and Shareholder Returns - Total share repurchases during the quarter ended June 30, 2024, were $255.5 million, compared to $98.6 million during the same quarter in 2023[69]. - The company approved a new stock repurchase program in July 2024, authorizing repurchases up to $1.0 billion[120]. Future Outlook - The company anticipates continued growth in both platform and non-platform segments, with a focus on expanding SaaS offerings and enhancing customer retention strategies[78].

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases: A strong product portfolio and an expanding partner base are expected to have driven top-line growth in the tobe-reported quarter. The consensus mark for earnings is pegged at $6.37 per share, down by a penny over the past 30 days. FICO's fiscal third-quarter performance is expected to have benefited from strong growth in its scores and software solu ...

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. Revenues are expected to be $448.53 million, up 12.5% from the year-ago quarter. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. The Zacks Earnings ES ...

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