FICO, a leading predictive analytics and decision management software company, today announced results for its fourth fiscal quarter ended September 30, 2023.
Fourth Quarter Fiscal 2023 GAAP Results
Net income for the quarter totaled $101.4 million, or $4.01 per share, versus $90.7 million, or $3.55 per share, in the prior year period.
Net cash provided by operating activities for the quarter was $164.0 million versus $144.8 million in the prior year period.
Fourth Quarter Fiscal 2023 Non-GAAP Results
Non-GAAP Net Income for the quarter was $126.7 million versus $112.5 million in the prior year period. Non-GAAP EPS for the quarter was $5.01 versus $4.40 in the prior year period. Free cash flow was $163.0 million for the current quarter versus $144.0 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.
Fintech Insights: Bridging the Labor Gap in Accounting using AI Technology
Fourth Quarter Fiscal 2023 GAAP Revenue
The company reported revenues of $389.7 million for the quarter as compared to $348.7 million reported in the prior year period.
“We had another great year, posting strong double-digit growth across all our metrics,” said Will Lansing, chief executive officer. “We are also pleased to provide our FY 2024 guidance, which includes double-digit percentage revenue and EPS growth, demonstrating the remarkable resilience of our business model even in an uncertain macro-economic environment.”
Revenues for the fourth quarter of fiscal 2023 for the company’s two operating segments were as follows:
- Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) solutions, were $195.6 million in the fourth quarter, compared to $174.1 million in the prior year period, an increase of 12%. B2B revenue increased 21%, driven largely by pricing increases which were partially offset by declines in origination volumes. B2C revenue decreased 6% from the prior year period due to lower volumes on myFICO.com business.
- Software revenues, which include the company’s analytics and digital decisioning technology, were $194.2 million in the fourth quarter, compared to $174.7 million in the prior year period, an increase of 11%, due to increased recurring revenue, partially offset by decreases in professional services. Software Annual Recurring Revenue was up 22% year-over-year, consisting of 53% platform ARR growth and 14% non-platform growth. Software Dollar-Based Net Retention Rate was 120% year-over-year, with platform software at 145% and non-platform software at 111%.
Outlook
The company is providing the following guidance for fiscal 2024:
|
|
Fiscal 2024 Guidance |
|
Revenues |
$1.675 billion |
|
GAAP Net Income |
$490 million |
|
GAAP EPS |
$19.45 |
|
Non-GAAP Net Income |
$566 million |
|
Non-GAAP EPS |
$22.45 |
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 2023 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 8, 2024.
Read More About Fintech Interview: Global Fintech Interview with Randall Tidwell, CFO at Serviceaide
[To share your insights with us, please write to pghosh@itechseries.com ]
