FICO Announces Earnings of $1.25 per Share for Fourth Quarter Fiscal 2017

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Investor & Financial Information

SAN JOSE, Calif. – November 1, 2017 - 

FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its fourth fiscal quarter ended September 30, 2017.

Fourth Quarter Fiscal 2017 GAAP Results
Net income for the quarter totaled $40.0 million, or $1.25 per share, versus $32.1 million, or $1.00 per share, reported in the prior year period. The current quarter earnings include a reduction to income tax expense of $1.2 million, or $0.04 per share, associated with the adoption of FASB Accounting Standards Update No. 2016-09 (“ASU 2016-09”).

Net cash provided by operating activities for the quarter was $54.2 million versus $32.5 million in the prior year period.

Fourth Quarter Fiscal 2017 Non-GAAP Results
Non-GAAP Net Income for the quarter was $52.7 million vs. $41.4 million in the prior year period. Non-GAAP EPS for the quarter was $1.65 vs. $1.28 in the prior year period. Free cash flow for the quarter was $49.2 million vs. $22.5 million in the prior year period. The Non-GAAP financial measures are described in the financial table captioned “Non-GAAP Results” and are reconciled to the corresponding GAAP results in the financial tables at the end of this release.

Fourth Quarter Fiscal 2017 GAAP Revenues
The company reported revenues of $253.2 million for the quarter as compared to $235.8 million reported in the prior year period. 

“We had an outstanding finish to our fiscal 2017,” said Will Lansing, chief executive officer. “We had record revenues, record bookings, and have strong momentum entering 2018.”

Revenues for the fourth quarter of fiscal 2017 across each of the company’s three operating segments were as follows:

  • Applications revenues, which include the company’s preconfigured decision management applications and associated professional services, were $150.3 million in the fourth quarter, up 1% from the prior year.
  • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and business-to-consumer (B2C) service, were $72.0 million in the fourth quarter, compared to $62.8 million in the prior year quarter, an increase of 15%. B2B revenue increased 13% and B2C revenue increased 17% from the prior year quarter.
  • Decision Management Software revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $30.9 million in the fourth quarter compared to $24.0 million in the prior year quarter, an increase of 29%, due primarily to increased license sales and services of Xpress Optimization.

Outlook 
The company is providing guidance for fiscal 2018 of approximately:

 

Fiscal 2018 without Excess Tax Benefit

Estimated Impact of Excess Tax Benefit *

Fiscal 2018 Guidance

Revenue

$990 million

 

$990 million

GAAP Net Income

$119 million

$20 million

$139 million

GAAP EPS

$3.71

$0.62

$4.33

Non GAAP Net Income

$171 million

 

$171 million

Non GAAP EPS

$5.32

 

$5.32

   *The impact of Excess Tax Benefit (ASU 2016-09) on fiscal 2017 results increased GAAP Net Income by $25 million and GAAP EPS by $0.77 per share.

The Non-GAAP financial measures are described in the financial table captioned “Reconciliation of Non-GAAP Guidance.”

Company to Host Conference Call
The company will host a webcast today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to report its fourth quarter fiscal 2017 results and provide various strategic and operational updates. The call can be accessed at FICO's Web site at www.FICO.com/investors. A replay of the webcast will be available through November 1, 2018.

The webcast will also be distributed through the Thomson StreetEvents Network to both institutional and individual investors. The webcast can be accessed via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com).

About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 165 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.

Learn more at http://www.fico.com

Join the conversation at https://twitter.com/fico & http://www.fico.com/en/blogs/

FICO is a registered trademark of Fair Isaac Corporation in the US and other countries.

Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in this news release that relate to FICO or its business are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the success of the Company’s Decision Management strategy and reengineering initiative, the maintenance of its existing relationships and ability to create new relationships with customers and key alliance partners, its ability to continue to develop new and enhanced products and services, its ability to recruit and retain key technical and managerial personnel, competition, regulatory changes applicable to the use of consumer credit and other data, the failure to protect such data, the failure to realize the anticipated benefits of any acquisitions, material adverse developments in global economic conditions or in the markets we serve, and other risks described from time to time in FICO’s SEC reports, including its Annual Report on Form 10-K for the year ended September 30, 2016 and Form 10-Q for the quarter ended June 30, 2017. If any of these risks or uncertainties materializes, FICO’s results could differ materially from its expectations. FICO disclaims any intent or obligation to update these forward-looking statements.

Q4'17 Earnings Release Financials

Media contacts

Americas

Greg Jawski

Europe, Middle East & Africa

Darcy Sullivan

dsullivan@fico.com
+44 (0) 209-940-8719

Asia Pacific

Saxon Shirley

saxonshirley@fico.com
+65 6422-7795

Latin America

Marisa Arribas

marisaarribas@fico.com
+1 786 482 7231

América Latina

Milla Delfino

milladelfino@fico.com
+55 11 97673-6583

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