The company reported revenues of $257.9 million for the second quarter (ended March 31st, 2018) as compared to $228.4 million reported in the prior year period.

“We delivered record revenues in our second quarter, and strong growth in net income and EPS,” said Will Lansing, chief executive officer. “We are pleased with our progress and are raising our full-year guidance.”

Revenues for the second 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 $146.7 million in the second quarter, up 9% from the prior year, primarily due to increased transactional volumes of Originations Solutions and Customer Communication Services.
  • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, as well as business-to-consumer (B2C) service, were $87.9 million in the second quarter, compared to $65.4 million in the prior year quarter, an increase of 34%. B2B revenue increased 47% and B2C revenue increased 13% from the prior year quarter.
  • Decision Management Software revenues, which include Blaze Advisor®, Xpress Optimization and related professional services, were $23.3 million in the second quarter compared to $28.6 million in the prior year quarter, a decrease of 19%, due primarily to decreased up-front license sales.

Net income for the quarter totaled $32.3 million, or $1.03 per share, versus $25.1 million, or $0.78 per share, reported in the prior year period.Net cash provided by operating activities for the quarter was $49.2 million versus $66.4 million in the prior year period.

Non-GAAP Net Income for the quarter was $48.1 million vs. $34.0 million in the prior year period. Non-GAAP EPS for the quarter was $1.54 vs. $1.05 in the prior year period. Free cash flow for the quarter was $42.2 millionvs. $60.5 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.

Outlook: The company is updating guidance for fiscal 2018:  Revenues $990 – $1.02 billion

Source:  FICO Earnings Report