10-KPeriod: FY2024

FAIR ISAAC CORP Annual Report, Year Ended Sep 30, 2024

Filed November 6, 2024For Securities:FICO

Summary

Fair Isaac Corporation (FICO) reported strong financial performance for the fiscal year ended September 30, 2024, with total revenues increasing by 13% to $1.7 billion. Both the Scores and Software segments demonstrated robust growth, with Scores revenue up 19% and Software segment revenue up 8%. This growth was driven by increased adoption of advanced scoring models like FICO® Score 10 and 10 T, and continued expansion of FICO® Platform in the cloud. The company also highlighted a significant increase in cash flow from operations, reaching $633 million, and a substantial stock repurchase program of $833.3 million, underscoring a commitment to returning value to shareholders. FICO continues to focus on innovation, particularly in expanding financial inclusion through alternative data scores and enhancing its platform capabilities. The company's strong customer retention, evidenced by a Dollar-Based Net Retention Rate of 106% for its Software segment, along with its dominant position in credit scoring, positions it well for continued growth. However, investors should remain aware of the competitive landscape and the ongoing regulatory scrutiny in the financial services industry, as detailed in the risk factors section.

Financial Highlights

53 data points
Beta

Revenue

$1.72B

79.7% Gross Margin

Net Income

$512.81M

29.9% Net Margin

EPS (Diluted)

$20.45

Total Assets

$1.72B

Cash & Equivalents

$150.67M

Free Cash Flow

$624.08M

Financial Statements
Beta
Revenue$1.72B
Cost of Revenue$348.21M
Gross Profit$1.37B
R&D Expenses$171.94M
SG&A Expenses$462.83M
Operating Expenses$983.90M
Operating Income$733.63M
Interest Expense$105.64M
Net Income$512.81M
EPS (Basic)$20.78
EPS (Diluted)$20.45
Shares Outstanding (Basic)24.68M
Shares Outstanding (Diluted)25.08M

Key Highlights

  • 1Total revenues increased 13% year-over-year to $1.7 billion.
  • 2Scores segment revenue grew 19% year-over-year to $919.7 million.
  • 3Software segment revenue increased 8% year-over-year, with Annual Recurring Revenue (ARR) reaching $721.2 million.
  • 4Dollar-Based Net Retention Rate (DBNRR) for the Software segment was 106% as of September 30, 2024.
  • 5Operating income increased 14% year-over-year to $733.6 million.
  • 6Net income rose 19% year-over-year to $512.8 million, with Diluted EPS of $20.45.
  • 7Cash flow from operating activities significantly increased to $633.0 million.
  • 8The company repurchased $833.3 million of its common stock during fiscal year 2024.

Frequently Asked Questions

FICO is a leading applied analytics company that provides software and widely used FICO® Scores to thousands of businesses globally. Its core business is divided into two segments: Scores, which includes B2B and B2C scoring solutions (like the FICO® Score), and Software, which offers analytic and decision management solutions for various business needs, including customer engagement and fraud detection.

FICO reported strong financial results, with total revenues up 13% to $1.7 billion. Both the Scores and Software segments saw revenue growth, and profitability metrics like operating income and net income also increased by 14% and 19% respectively. The company also generated robust cash flow from operations.

Key growth drivers include the continued adoption of its advanced scoring models, such as FICO® Score 10 and 10 T, the expansion of its FICO® Platform delivered via SaaS, and its focus on financial inclusion initiatives. Strong customer retention, as indicated by the Dollar-Based Net Retention Rate, also contributes to recurring revenue growth.

FICO actively returns value to shareholders through its stock repurchase program. In fiscal year 2024, the company repurchased $833.3 million of its common stock, demonstrating a commitment to enhancing shareholder value.