FICO(FICO) ZACKS·2025-02-05 17:51Core Insights - Fair Isaac Corporation (FICO) reported first-quarter fiscal 2025 earnings of 440 million, a 15.2% increase year-over-year, but fell short of the consensus mark by 3.25% [2] - FICO raised its fiscal 2025 guidance following strong first-quarter performance, with shares appreciating 43.7% over the past six months, outperforming the Zacks Computer & Technology sector's return of 23.6% [3] Revenue Breakdown - Software revenues, including analytics and digital decisioning technology, increased 8% year-over-year to 235.7 million [5] Segment Performance - B2B revenues surged 30% year-over-year, driven by higher unit prices and increased mortgage originations [6] - Mortgage originations revenues skyrocketed 110% year-over-year, accounting for 44% of B2B revenues and 34% of total scores revenues [6] - Professional services revenues decreased 14.1% year-over-year to 18.3 million [5] Operating Metrics - Research & development expenses as a percentage of revenues decreased by 90 basis points year-over-year to 10.3% [8] - Selling, general and administrative expenses increased by 180 basis points year-over-year to 29.1% [8] - Operating margin expanded by 120 basis points year-over-year to 40.8% [8] Financial Position - As of December 31, 2024, FICO had 184 million in cash and cash equivalents and total debt of 151 million in cash and 194 million in the first quarter, down from 187 million, compared to 1.98 billion and non-GAAP earnings projected at $28.58 per share [11]