10-KPeriod: FY2022

FAIR ISAAC CORP Annual Report, Year Ended Sep 30, 2022

Filed November 9, 2022For Securities:FICO

Summary

Fair Isaac Corporation (FICO) reported solid performance for fiscal year 2022, demonstrating resilience in a dynamic economic environment. The company achieved total revenue of $1.4 billion, a 5% increase year-over-year, driven by an 8% rise in its Scores segment to $706.6 million and a 1% increase in its Software segment to $670.6 million. This growth was supported by consistent demand for FICO's core scoring solutions and a strategic focus on its FICO® Platform, which saw its Annual Recurring Revenue (ARR) grow to $114.2 million, representing 20% of the Software segment's ARR. Financially, FICO generated $509.5 million in cash flow from operations and returned significant value to shareholders through share repurchases totaling $1.1 billion. While net income saw a slight decrease due to prior-year divestiture gains, diluted EPS increased by 6%. The company maintains a strong market position, driven by its widely adopted FICO® Score and its expanding suite of software solutions aimed at improving business decisions across various industries, particularly financial services. The company's strategy continues to focus on platform development and cloud-based offerings, aiming to drive further growth and customer engagement.

Financial Highlights

52 data points
Beta

Revenue

$1.38B

78.1% Gross Margin

Net Income

$373.54M

27.1% Net Margin

EPS (Diluted)

$14.18

Total Assets

$1.44B

Cash & Equivalents

$133.20M

Free Cash Flow

$503.42M

Financial Statements
Beta
Revenue$1.38B
Cost of Revenue$302.17M
Gross Profit$1.08B
R&D Expenses$146.76M
SG&A Expenses$383.86M
Operating Expenses$834.86M
Operating Income$542.41M
Interest Expense$68.97M
Net Income$373.54M
EPS (Basic)$14.34
EPS (Diluted)$14.18
Shares Outstanding (Basic)26.04M
Shares Outstanding (Diluted)26.35M

Key Highlights

  • 1Total revenue reached $1.4 billion, a 5% increase from the prior year, despite a 3% negative impact from a prior year divestiture.
  • 2The Scores segment revenue grew by 8% to $706.6 million, driven by both B2B and B2C offerings.
  • 3Software segment revenue saw a modest 1% increase to $670.6 million, with Annual Recurring Revenue (ARR) reaching $569.3 million and representing 20% of total Software ARR for the FICO® Platform.
  • 4Operating income increased by 7% to $542.4 million.
  • 5Diluted Earnings Per Share (EPS) grew by 6% to $14.18.
  • 6Cash flow from operations was strong at $509.5 million.
  • 7The company repurchased $1.1 billion of its common stock during the fiscal year, demonstrating a commitment to returning capital to shareholders.

Frequently Asked Questions

Fair Isaac Corporation (FICO) is a leading applied analytics company that develops software and analytics solutions, most notably the FICO® Score, used for credit scoring and decision management. In fiscal year 2022, FICO reported a total revenue of $1.4 billion, marking a 5% increase compared to the previous year. This growth was primarily driven by its Scores segment, which experienced an 8% revenue increase, and a stable performance in its Software segment.

The FICO® Platform is a strategic initiative for the company, designed to modularize and support advanced analytics and decisioning use cases. The platform's Annual Recurring Revenue (ARR) grew to $114.2 million as of September 30, 2022, accounting for 20% of the total Software segment ARR. This growth signifies increasing customer adoption of FICO's integrated, cloud-based solutions and is a key driver for future revenue expansion.

In fiscal year 2022, FICO generated strong operating cash flow of $509.5 million. The company actively returned capital to shareholders by repurchasing approximately $1.1 billion of its common stock. This reflects a continued focus on enhancing shareholder value through both operational performance and capital allocation strategies.

FICO operates in two main segments: Scores and Software. The Scores segment, which includes B2B and B2C scoring solutions like the FICO® Score, generated $706.6 million in revenue, an 8% increase. The Software segment, offering analytic and decision management solutions, generated $670.6 million, a 1% increase. The Scores segment continues to be a significant contributor, benefiting from the enduring demand for credit risk assessment tools.