Summary
Fair Isaac Corporation (FICO) reported solid revenue growth in the fourth quarter of fiscal year 2021, driven primarily by a significant increase in its Scores segment. Total revenues rose by 3% year-over-year to $322.4 million, with the Scores segment revenue growing by an impressive 17% to $169.5 million. This growth was attributed to strong performance in both business-to-business and business-to-consumer score offerings. The Software segment, however, experienced a 9% decline in revenue to $152.9 million, largely due to a strategic shift away from lower-margin professional services and the divestiture of the C&R business. Despite the Software segment's revenue dip, the company demonstrated strong operational efficiency, with total operating expenses decreasing by 5% and operating income increasing by 22% to $115.6 million. The company maintained a healthy cash flow from operations, generating $124.9 million in the quarter, up significantly from $77.9 million in the prior year. However, cash and cash equivalents decreased to $162.2 million from $195.4 million sequentially, partly due to substantial share repurchases totaling $493.6 million during the quarter, reflecting a commitment to returning capital to shareholders. FICO also strengthened its balance sheet by issuing $550 million in senior notes, increasing its total debt to $1.65 billion. The company's outlook remains positive, with continued focus on its strategic investments and capital allocation priorities.
Financial Highlights
50 data points| Revenue | $322.36M |
| Cost of Revenue | $69.20M |
| Gross Profit | $253.16M |
| R&D Expenses | $38.98M |
| SG&A Expenses | $98.05M |
| Operating Expenses | $206.78M |
| Operating Income | $115.59M |
| Interest Expense | $12.20M |
| Net Income | $84.96M |
| EPS (Basic) | $3.13 |
| EPS (Diluted) | $3.09 |
| Shares Outstanding (Basic) | 27.17M |
| Shares Outstanding (Diluted) | 27.52M |
Key Highlights
- 1Total revenue increased 3% to $322.4 million, driven by a 17% surge in the Scores segment revenue to $169.5 million.
- 2Software segment revenue declined 9% to $152.9 million, influenced by a strategic shift towards software over services and a business divestiture.
- 3Operating income saw a substantial 22% increase, reaching $115.6 million, indicating improved operational efficiency.
- 4Cash flow from operations surged by 60% to $124.9 million, demonstrating strong cash generation capabilities.
- 5Significant share repurchases of $493.6 million were executed during the quarter, underscoring a commitment to shareholder returns.
- 6The company issued $550 million in new senior notes, increasing total debt to $1.65 billion.
- 7Dollar-Based Net Retention Rate (DBNRR) for the Software segment remained strong at 109%, highlighting customer loyalty and expansion.