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FICO Announces Earnings of $1.64 per Share for Fourth Quarter Fiscal 2018

November 1, 2018

FICO Announces Earnings of $1.64 per Share for Fourth Quarter Fiscal 2018

Revenues of $280 million vs. $253 million in prior year

Investor / Financial Information November 1, 2018

SAN JOSE, Calif. – November 1, 2018 -

FICO (NYSE:FICO), a leading predictive analytics and decision management software company, today announced results for its fourth fiscal quarter ended September 30, 2018.

Fourth Quarter Fiscal 2018 GAAP Results
Net income for the quarter totaled $50.5 million, or $1.64 per share, versus $40.0 million, or $1.25 per share, reported in the prior year period.

The current quarter net income includes a pretax non-operating gain of $10.0 million, or $0.23 per share after tax, related to the divestiture of a minority interest investment. In addition, the company recorded an additional charge of $6.8 million, or $0.22 per share, related to the Tax Cuts and Jobs Act. The charge encompasses the impact of recently issued tax reform guidance.

Net cash provided by operating activities for the quarter was $60.0 million versus $54.2 million in the prior year period.

Fourth Quarter Fiscal 2018 Non-GAAP Results
Non-GAAP Net Income for the quarter was $57.9 million versus $52.7 million in the prior year period. Non-GAAP EPS for the quarter was $1.89 versus $1.65 in the prior year period. Free cash flow for the quarter was $52.9 million versus $49.2 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 2018 GAAP Revenues
The company reported revenues of $279.8 million for the quarter as compared to $253.2 million reported in the prior year period.

“We had a strong finish to our best year ever,” said Will Lansing, chief executive officer. “We delivered double-digit revenue and earnings growth, and are expanding our recurring cloud revenue.”

Revenues for the fourth quarter of fiscal 2018 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 $155.9 million in the fourth quarter, compared to $150.3 million in the prior year quarter, up 4% from the prior year, primarily due to increased transactional revenue in Customer Communication Services and Customer Management Solutions; as well as increased license sales in Banking Fraud Solutions.
  • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, as well as its business-to-consumer (B2C) service, were $92.7 million in the fourth quarter, compared to $72.0 million in the prior year quarter, an increase of 29%. B2B revenue increased 38% and B2C revenue increased 12% from the prior year quarter.
  • Decision Management Software revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $31.2 million in the fourth quarter, flat with the prior year quarter.

Outlook
The company is providing guidance for fiscal 2019 of approximately:

  Fiscal 2019 Guidance*
Revenues $1.125 billion
GAAP Net Income $168 million
GAAP EPS $5.53
Non GAAP Net Income $209 million
Non GAAP EPS $6.88

* Fiscal 2019 Guidance includes excess tax benefits associated with stock compensation of $25.0 million, or $0.82 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 2018 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 Past Events page through November 1, 2019.

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 https://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, 2017 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.

Q4'18 Earnings Release Financials

Media Contact:
Greg Jawski
Porter Novelli for FICO
+1 212-601-8248
greg.jawski@porternovelli.com
Investors/Analysts:
Steven Weber
FICO
+1 800-213-5542
investor@fico.com

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