10-Q/APeriod: Q3 FY2023

FAIR ISAAC CORP Quarterly Report (Amendment) for Q3 Ended Jun 30, 2023

Filed September 15, 2023For Securities:FICO

Summary

Fair Isaac Corporation's (FICO) 10-Q filing for the quarter ended September 15, 2023, primarily details executive trading plans under Rule 10b5-1. Two key executives, Eva Manolis (Board of Directors) and James Wehmann (EVP, Scores), have implemented pre-arranged plans for the sale of company stock, totaling up to 7,692 and 8,508 shares respectively. These plans are designed to comply with regulatory requirements and are set to conclude by May 2024, or upon the sale of all allocated shares. While this filing does not provide detailed financial performance metrics for the quarter, it highlights the company's adherence to transparent insider trading practices. Investors should note these planned stock sales by senior personnel, which, while executed under established plans, represent potential future selling pressure on the stock. The filing also references various incorporated exhibits related to the company's charter, by-laws, and executive compensation agreements.

Financial Highlights

50 data points
Beta

Revenue

$398.69M

82.0% Gross Margin

Net Income

$128.76M

32.3% Net Margin

EPS (Diluted)

$5.08

Total Assets

$1.58B

Cash & Equivalents

$163.02M

Free Cash Flow

$121.83M

Financial Statements
Beta
Revenue$398.69M
Cost of Revenue$71.85M
Gross Profit$326.84M
R&D Expenses$41.45M
SG&A Expenses$108.08M
Operating Expenses$221.66M
Operating Income$177.03M
Interest Expense$24.55M
Net Income$128.76M
EPS (Basic)$5.16
EPS (Diluted)$5.08
Shares Outstanding (Basic)24.96M
Shares Outstanding (Diluted)25.34M

Key Highlights

  • 1Two senior FICO executives, a Board member and an EVP, have established Rule 10b5-1 trading plans.
  • 2Eva Manolis plans to sell up to 7,692 shares of common stock.
  • 3James Wehmann plans to sell up to 8,508 shares of common stock.
  • 4These trading plans are designed to comply with Rule 10b5-1(c) of the Securities Exchange Act.
  • 5The plans have termination dates in May 2024 or upon the completion of the planned sales.
  • 6The filing reiterates the company's composite restated certificate of incorporation and by-laws.
  • 7Several exhibits detail executive compensation and award agreements under the 2021 Long-Term Incentive Plan.

Frequently Asked Questions

Rule 10b5-1 trading plans allow insiders (like executives and directors) to sell company stock at predetermined times or prices, providing an affirmative defense against accusations of insider trading. These plans help demonstrate that the stock sales were not based on material non-public information at the time of the sale.

Not necessarily. These sales are conducted under pre-arranged plans and are often part of personal financial planning for executives, such as diversifying their holdings or meeting financial obligations. While it means more shares may be available on the market, it does not inherently signal a negative view of the company's future prospects.

This particular filing (10-Q) primarily focuses on 'Other Information' and exhibits. For comprehensive financial performance details, investors should refer to the other sections of the 10-Q report, particularly 'Part I - Financial Statements' and 'Part I - Management's Discussion and Analysis of Financial Condition and Results of Operations', which are not fully detailed in the provided excerpt.

The exhibits reference various forms of executive compensation under the 2021 Long-Term Incentive Plan, including Market Share Unit Agreements, Non-Statutory Stock Option Agreements, Executive Restricted Stock Unit Award Agreements, and Performance Share Unit Agreements for executives at the Vice President level and above.