FICO(US:FICO)2024-07-31 20:16Financial 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].