10-QPeriod: Q2 FY2019

FAIR ISAAC CORP Quarterly Report for Q2 Ended Mar 31, 2019

Filed April 30, 2019For Securities:FICO

Summary

Fair Isaac Corporation (FICO) reported solid financial performance for the quarter ended March 31, 2019. Total revenues increased by 9% year-over-year to $278.2 million, driven by strong growth in the Scores segment, which saw a 20% revenue increase. The company's 'Decision Management' strategy continues to show promise, with revenues from Applications and Decision Management Software segments also seeing positive growth. Net income for the quarter rose by 7% to $33.4 million. The company's operating income also saw a healthy increase of 5% to $48.5 million. FICO continued to return value to shareholders through its stock repurchase program, repurchasing $37.0 million worth of shares during the quarter. The company's liquidity remains strong, supported by operating cash flows and an available revolving line of credit.

Financial Highlights

50 data points
Beta

Revenue

$278.23M

69.2% Gross Margin

Net Income

$33.38M

12.0% Net Margin

EPS (Diluted)

$1.10

Total Assets

$1.33B

Cash & Equivalents

$76.89M

Free Cash Flow

$43.62M

Financial Statements
Beta
Revenue$278.23M
Cost of Revenue$85.57M
Gross Profit$192.67M
R&D Expenses$37.68M
SG&A Expenses$104.93M
Operating Expenses$229.69M
Operating Income$48.55M
Interest Expense$10.01M
Net Income$33.38M
EPS (Basic)$1.15
EPS (Diluted)$1.10
Shares Outstanding (Basic)29.07M
Shares Outstanding (Diluted)30.26M

Key Highlights

  • 1Total revenues increased by 9% to $278.2 million for the quarter ended March 31, 2019, compared to the prior year period.
  • 2The Scores segment was a key growth driver, with revenues increasing by 20% to $104.4 million.
  • 3Net income grew by 7% to $33.4 million for the quarter.
  • 4Operating income increased by 5% to $48.5 million, demonstrating operational efficiency.
  • 5The company repurchased $37.0 million of common stock during the quarter, reflecting a commitment to shareholder returns.
  • 6The company ended the quarter with a strong cash position of $76.9 million and a $400 million revolving line of credit available.
  • 7FICO continues to invest in Research and Development, with R&D expenses increasing by 16% to $37.7 million, underscoring commitment to innovation.

Frequently Asked Questions

FICO reported a 9% increase in total revenues to $278.2 million for the quarter ended March 31, 2019, compared to $256.3 million in the same period last year. This growth was primarily driven by the Scores segment and positive contributions from the Applications and Decision Management Software segments.

The company demonstrated improved profitability, with net income increasing by 7% to $33.4 million for the quarter ended March 31, 2019. Operating income also saw a 5% increase, reaching $48.5 million.

FICO actively returned capital to shareholders through its stock repurchase program. During the quarter ended March 31, 2019, the company repurchased approximately $37.0 million worth of its common stock.

FICO maintained a healthy financial position with $76.9 million in cash and cash equivalents as of March 31, 2019. Additionally, the company has a $400 million revolving line of credit available, providing ample liquidity to support operations and strategic initiatives.