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 ...

Core Insights - Fair Isaac (FICO) reported revenue of $447.85 million for the quarter ended June 2024, reflecting a year-over-year increase of 12.3% [1] - Earnings per share (EPS) for the quarter was $6.25, up from $5.66 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $448.53 million, resulting in a revenue surprise of -0.15% [1] - The EPS fell short of the consensus estimate of $6.37, leading to an EPS surprise of -1.88% [1] Revenue Breakdown - On-premises and SaaS software revenue was $183.79 million, compared to the average estimate of $184.70 million, marking a year-over-year increase of 6.8% [3] - Scores revenue reached $241.45 million, exceeding the average estimate of $240.70 million, with a year-over-year growth of 19.7% [4] - Professional Services revenue was $22.61 million, slightly above the average estimate of $22.45 million, but showed a year-over-year decline of 9% [5] - Overall software revenue was reported at $206.40 million, compared to the estimated $207.15 million [6] Stock Performance - Fair Isaac's shares have returned +3.9% over the past month, contrasting with a -0.4% change in the Zacks S&P 500 composite [6] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [6]

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].

Company Performance - Fair Isaac Corporation (FICO) is expected to report strong fiscal third-quarter 2024 results, benefiting from growth in scores and software solutions, with scores revenues estimated at $241 million, reflecting a 19.3% year-over-year increase [3] - The consensus estimate for FICO's on-premises and SaaS software revenues is $185 million, indicating a 7.55% year-over-year increase [4] - FICO's software business is anticipated to benefit from its "land-and-expand" strategy, with positive trends in Annual Recurring Revenue (ARR) and Net Revenue Retention (NRR) [10] Earnings Estimates - The consensus mark for FICO's earnings is set at $6.37 per share, which has decreased by a penny over the past 30 days [2] - FICO has an Earnings ESP of -1.83% and a Zacks Rank of 4 (Sell), indicating a lower likelihood of an earnings beat [5][18] Market Trends - The Scores segment, particularly in mortgage originations, continues to show robust growth, driven by the adoption of FICO Score 10T for non-conforming mortgages [16] - The company is investing heavily in innovation, with advancements showcased at the recent FICO World event, including an open API framework and a FICO marketplace, expected to enhance customer satisfaction and usage [17] Other Companies - Apple (AAPL) is set to report its third-quarter fiscal 2024 results on August 1, with shares gaining 13.2% year to date and a revenue estimate of $448.53 million, suggesting a 12.5% increase from the previous year [7][8] - Shopify (SHOP) is scheduled to report its second-quarter 2024 results on August 7, with shares declining 23.1% year to date and an Earnings ESP of +7.78% [11][19] - Cognizant Technology Solutions (CTSH) has an Earnings ESP of +0.09% and is set to report second-quarter 2024 results on July 31 [12][21]

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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Fair Isaac (FICO) reported second-quarter fiscal 2024 earnings of $6.14 per share, beating the Zacks Consensus Estimate by 5.86% and rising 28.5% year over year.Revenues of $433.8 million increased 14.1% on a year-over-year basis and beat the consensus mark by 1.85%. Americas, EMEA and Asia Pacific contributed 85%, 9% and 6% to total revenues, respectively.Top-Line DetailsSoftware revenues, which include Fair Isaac’s analytics and digital decisioning technology, as well as associated professional services, ...

For the quarter ended March 2024, Fair Isaac (FICO) reported revenue of $433.81 million, up 14.1% over the same period last year. EPS came in at $6.14, compared to $4.78 in the year-ago quarter.The reported revenue represents a surprise of +1.85% over the Zacks Consensus Estimate of $425.94 million. With the consensus EPS estimate being $5.80, the EPS surprise was +5.86%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ex ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-11689 Fair Isaac Corporation (Exact name of registrant as specified in its charter) Delaware 94-1499887 (State or o ...