FICO Q1 2023 Revenue Up 7%

Revenue of $345 million vs. $322 million in prior year

FICO (NYSE:FICO), a leading predictive analytics and decision management software company, has announced results for its first fiscal quarter ended December 31, 2022.

First Quarter Fiscal 2023 GAAP Results

Net income for the quarter totaled $97.6 million, or $3.84 per share, versus $85.0 million, or $3.09 per share, in the prior year period.

Net cash provided by operating activities for the quarter was $92.4 million versus $124.9 million in the prior year period.

First Quarter Fiscal 2023 Non-GAAP Results

Non-GAAP Net Income for the quarter was $108.5 million versus $101.9 million in the prior year period. Non-GAAP EPS for the quarter was $4.26 versus $3.70 in the prior year period. Free cash flow was $91.6 million for the current quarter versus $124.0 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.

First Quarter Fiscal 2023 GAAP Revenue

The company reported revenues of $344.9 million for the quarter as compared to $322.4 million reported in the prior year period.

“We had a strong start to our Fiscal 2023,” said Will Lansing, chief executive officer. “We continue to deliver earnings growth, and are pleased with the progress we are making on our strategic initiatives.”

Revenues for the first quarter of fiscal 2023 for the company’s two operating segments were as follows:

Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $166.9 million in the first quarter, compared to $152.9 million in the prior year period, an increase of 9%, due to increased recurring revenue, partially offset by a decrease in professional services. Software Annual Recurring Revenue was up 11% year-over-year, consisting of 46% platform ARR growth and 4% non-platform growth. Software Dollar-Based Net Retention Rate was 110% in the first quarter, with platform software at 130% and non-platform software at 103%.
Scores revenues, which include the company’s business-to-business (B2B) scoring solutions, and business-to-consumer (B2C) scoring solutions, were $178.0 million in the first quarter, compared to $169.5 million in the prior year period, an increase of 5%. B2B revenue increased 11%, driven largely by a multi-year license renewal as well as increases in unit prices and in card and personal loan originations volumes, partially offset by declines in mortgage originations volumes. B2C revenue decreased 6% from the prior year period due to lower volumes at myFICO.com.