FICO(US:FICO)2021-11-09 16:00Financial Performance - Total GAAP revenue for fiscal year 2021 was $1.32 billion, a 2% increase from fiscal year 2020[226] - Total revenues for the company in fiscal 2021 were $1,316.5 million, a 2% increase from $1,294.6 million in fiscal 2020[249] - Operating income for fiscal year 2021 was $505.5 million, a 71% increase from fiscal year 2020[234] - Net income for fiscal year 2021 was $392.1 million, a 66% increase from fiscal year 2020[234] - Cash flow from operations was $423.8 million during fiscal year 2021, compared to $364.9 million in the prior year[234] - Basic earnings per share increased to $13.65 in 2021 from $8.13 in 2020, representing a growth of approximately 68.5%[372] - The company reported a comprehensive income of $399,225 thousand for the year, compared to $243,501 thousand in 2020, reflecting an increase of about 63.9%[372] Segment Performance - Total revenue for the Scores segment was $654.1 million during fiscal year 2021, a 24% increase from fiscal year 2020[226] - Annual Recurring Revenue (ARR) for the Software segment as of September 30, 2021, was $524.0 million, a 6% increase from September 30, 2020[226] - The percentage of revenues from the Scores segment increased to 50% in 2021, up from 41% in 2020 and 36% in 2019[244] - Scores segment revenues rose by $125.6 million in fiscal 2021 compared to 2020, driven by a $64.6 million increase in business-to-business scores revenue and a $61.0 million increase in business-to-consumer revenue[250] - The Software segment operating income decreased by $24.9 million to $105.1 million, with segment revenue declining by $103.6 million[292] Cash Management and Investments - The company had $195.4 million in cash and cash equivalents as of September 30, 2021, including $158.8 million held by foreign subsidiaries[298] - The company plans to evaluate potential acquisitions or strategic relationships using available cash and cash equivalents[299] - The company reported a net cash increase of $37,960 thousand for the year, up from $50,968 thousand in the previous year[1] - The company incurred a finance lease obligation of $1,387 thousand in 2020, reflecting ongoing investment in operational capabilities[1] Stock Repurchase and Dividends - The company repurchased 1.9 million shares at a total repurchase price of $882.2 million during fiscal year 2021[224] - A total of $882.2 million was expended on stock repurchase programs during fiscal years 2021, 2020, and 2019[306] - The company approved a stock repurchase program with an aggregate cost of $500 million in August 2021, following a previous program of $250 million[306] - The company reported a gain of $100.1 million from product line asset sales and business divestiture in fiscal 2021[278] Operating Expenses - Total operating expenses decreased to $811,047 thousand in fiscal 2021, down 9% from $998,593 thousand in fiscal 2020[260] - Research and development expenses were $171,231 thousand in fiscal 2021, a 3% increase from $166,499 thousand in fiscal 2020, maintaining 13% of revenues[267] - Selling, general and administrative expenses decreased to $396,281 thousand in fiscal 2021, down 6% from $420,930 thousand in fiscal 2020, representing 30% of revenues[271] Tax and Compliance - The effective tax rate for fiscal 2021 was 17.1%, an increase from 8.0% in fiscal 2020, due to higher pretax book income[283] - The company has been audited by Deloitte & Touche LLP since 2004, ensuring compliance with PCAOB standards[365] - The company maintained effective internal control over financial reporting as of September 30, 2021, according to the independent auditor's opinion[357] Debt and Obligations - Long-term debt rose to $1,009,018 thousand in 2021, up from $739,435 thousand in 2020, indicating an increase of approximately 36.5%[370] - The company has contractual obligations totaling $1.563 billion as of September 30, 2021, including senior notes and revolving line of credit[311] - The company is obligated to repay a new unsecured term loan of $300 million in quarterly installments starting March 31, 2022[308] Foreign Currency and Risk Management - The company utilizes foreign currency forward contracts to manage foreign exchange rate risks, primarily for the British pound, Euro, and Singapore dollar[350] - As of September 30, 2021, the company had foreign currency forward contracts totaling €17,100, £11,467, and S$6,650, with fair values of $19,829, $15,400, and $4,900 respectively[352] Revenue Recognition - The company recognizes revenue primarily from software licensing, SaaS subscription services, and professional services, with complex contracts often involving multiple performance obligations[362] - Revenue is recognized when control of goods or services is transferred to customers, reflecting expected consideration[404] - The company’s revenue recognition process includes estimating variable consideration and determining standalone selling prices based on historical data and market factors[362]