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FICO Announces Earnings of $2.12 per Share for Third Quarter Fiscal 2019

July 31, 2019

FICO Announces Earnings of $2.12 per Share for Third Quarter Fiscal 2019

Revenue of $314 million vs. $255 million in prior year

Corporate News July 31, 2019

SAN JOSE, Calif. – July 31, 2019 -

FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its third fiscal quarter ended June 30, 2019.

Third Quarter Fiscal 2019 GAAP Results

Net income for the quarter totaled $64.2 million, or $2.12 per share, versus $29.7 million, or $0.95 per share, in the prior year period.

Net cash provided by operating activities for the quarter was $68.3 million versus $85.1 million in the prior year period.

Third Quarter Fiscal 2019 Non-GAAP Results

Non-GAAP Net Income for the quarter was $75.6 million versus $44.5 million in the prior year period. Non-GAAP EPS for the quarter was $2.50 versus $1.43 in the prior year period. Free cash flow for the quarter was $60.8 million versus $72.0 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.

Third Quarter Fiscal 2019 GAAP Revenue

The company reported revenues of $314.2 million for the quarter as compared to $255.0 million reported in the prior year period. 

“I’m pleased to announce another record quarter,” said Will Lansing, chief executive officer. “We delivered strong top- and bottom-line growth, and have strong momentum heading into our fourth quarter.”

Revenues for the third quarter of fiscal 2019 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 $165.6 million in the third quarter, compared to $138.7 million in the prior year quarter, an increase of 19%, due primarily to increased license sales and transactional volumes.

Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and business-to-consumer (B2C) service, were $115.1 million in the second quarter, compared to $90.8 million in the prior year quarter, an increase of 27%. B2B revenue increased 36% and B2C revenue increased 8% from the prior year quarter.

Decision Management Software revenues, which include Blaze Advisor®, Xpress Optimization, Decision Management Platform and related professional services, were $33.5 million in the third quarter compared to $25.5 million in the prior year quarter, an increase of 31%, due primarily to increased license sales and SaaS subscription revenue.

Outlook 

The company is reiterating its previously provided guidance for fiscal 2019:

  Fiscal 2019 Guidance
Revenues $1.14 billion
GAAP Net Income $173  million
GAAP EPS $5.75
Non GAAP Net Income $214 million
Non GAAP EPS $7.12

 

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 third quarter fiscal 2019 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 at our Event Calendar under Past Events through July 31, 2020.

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, 2018 and subsequent quarterly reports on Form 10-Q. 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.

Q319 Earnings Release Financials

Newsroom Contacts

Greg Jawski
Americas

greg.jawski@porternovelli.com
+1 212-601-8248

Darcy Sullivan
Europe, Middle East & Africa

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

Saxon Shirley
Asia Pacific

saxonshirley@fico.com
+65 6422-7795

Marisa Arribas
Latin America

marisaarribas@fico.com
+1 786 482 7231

Camila Placa
Brasil

camilaplaca@fico.com
+55 11 5189-8258