FICO(FICO) - 2024 Q3 - Quarterly Results

Financial Performance - FICO reported third quarter fiscal 2024 revenue of $448 million, a 12.2$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$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]