Summary
Fair Isaac Corporation (FICO) reported strong financial performance for the quarter and nine months ended June 30, 2019. Total revenues increased by 23% year-over-year for the quarter and 15% for the nine-month period, reaching $314.2 million and $854.7 million, respectively. This growth was driven by a significant expansion in the Scores segment, which saw a 27% increase in quarterly revenue and a 24% increase in nine-month revenue, alongside continued growth in the Applications and Decision Management Software segments. Profitability also saw substantial improvements, with operating income surging by 92% for the quarter and 43% for the nine months, leading to a 116% and 47% increase in net income, respectively. The company's robust performance is underpinned by its successful Decision Management strategy, with a particular emphasis on cloud-based offerings and strong performance in its core credit scoring solutions. FICO also continues to demonstrate a commitment to enhancing shareholder value through its stock repurchase program, repurchasing $59.2 million worth of shares in the quarter and $178.9 million year-to-date. The company maintains a healthy liquidity position with $78.8 million in cash and cash equivalents and an available $400 million revolving line of credit, sufficient to cover upcoming debt obligations and operational needs.
Financial Highlights
50 data points| Revenue | $314.25M |
| Cost of Revenue | $87.22M |
| Gross Profit | $227.03M |
| R&D Expenses | $36.97M |
| SG&A Expenses | $102.91M |
| Operating Expenses | $228.54M |
| Operating Income | $85.71M |
| Interest Expense | $10.11M |
| Net Income | $64.15M |
| EPS (Basic) | $2.21 |
| EPS (Diluted) | $2.12 |
| Shares Outstanding (Basic) | 28.97M |
| Shares Outstanding (Diluted) | 30.29M |
Key Highlights
- 1Total revenues increased by 23% to $314.2 million for the quarter ended June 30, 2019, and by 15% to $854.7 million for the nine-month period, compared to the prior year.
- 2The Scores segment exhibited strong growth, with revenues up 27% quarter-over-quarter and 24% year-to-date, indicating sustained demand for credit scoring solutions.
- 3Operating income saw a significant surge, increasing by 92% to $85.7 million for the quarter and by 43% to $183.3 million for the nine-month period.
- 4Net income more than doubled, rising 116% to $64.2 million for the quarter and increasing 47% to $137.5 million for the nine-month period.
- 5The company returned approximately $59.2 million to shareholders through stock repurchases during the quarter, and $178.9 million year-to-date, underscoring a commitment to shareholder value.
- 6FICO maintained a strong liquidity position, with $78.8 million in cash and cash equivalents and $315.0 million drawn on its $400 million revolving credit facility as of June 30, 2019.