From Nasdaq: 2024-11-07 11:39:00

Fair Isaac Corporation (FICO) reported Q4 earnings of $6.54 per share, a 30.5% increase YoY but missed estimates by 0.91%. Revenues of $454 million grew 16.4% YoY but fell short of estimates by 0.21%. FICO raised its FY25 guidance, leading to a 79.6% YTD stock increase, outperforming the sector by 54.5%.

FICO’s software revenues increased 5.4% YoY to $204.6 million. Software ARR grew 8% YoY, with a 106% Dollar-Based Net Retention Rate in Q4. On-premises and SaaS Software revenues rose 7.5% YoY to $181.7 million, while professional services declined 9.1% YoY to $22.9 million. Scores revenues surged 27.4% YoY to $249.2 million.

In Q4, FICO saw strong customer adoption, particularly in mortgage origination with FICO Score 10 T. New partnerships with Tata Consulting Services and iSON Xperiences will help expand FICO’s platform business. Operating margin was 43.4%, up 90 bps YoY. Cash flow from operations was $226.4 million in Q4.

For FY25, FICO anticipates revenues of $1.98 billion and non-GAAP earnings of $28.58 per share. FICO currently has a Zacks Rank #2 (Buy). Other top-ranked stocks in the sector include Shopify (SHOP), BiliBili (BILI), and NVIDIA (NVDA). Shopify, BiliBili, and NVIDIA are set to report Q3 results in November.



Read more at Nasdaq: How Should Investors Approach Fair Isaac Shares Post Q4 Earnings?