FICO (NYSE:FICO), a leading predictive analytics and decision management software company, has announced results for its second fiscal quarter ended March 31, 2021.

Second Quarter Fiscal 2021 GAAP Results

  • Net income for the quarter totaled $68.7 million, or $2.33 per share, versus $58.3 million, or $1.94 per share, in the prior year period.
  • Net cash provided by operating activities for the quarter was $153.5 million versus $61.5 million in the prior year period.

Second Quarter Fiscal 2021 Non-GAAP Results

Non-GAAP Net Income for the quarter was $90.2 million versus $64.3 million in the prior year period. Non-GAAP EPS for the quarter was $3.06 versus $2.14 in the prior year period. Free cash flow for the quarter was $152.3 million versus $54.8 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.

Second Quarter Fiscal 2021 GAAP Revenue

The company reported revenues of $331.4 million for the quarter as compared to $308.0 million reported in the prior year period.

“We had another great quarter, delivering strong revenues and record cash flows,” said Will Lansing, chief executive officer. “And we are achieving this as we reduce our reliance on up-front license revenue.”

Revenues for the second quarter of fiscal 2021 across each of the company’s three operating segments were as follows:

  • Applications revenues, which include the company’s decision management applications and associated professional services, were $129.5 million in the second quarter, compared to $140.3 million in the prior year period, a decrease of 8%, due primarily to decreased services and up-front license revenues.
  • Scores revenues, which include the company’s business-to-business (B2B) scoring solutions and associated professional services, and business-to-consumer (B2C) service, were $168.7 million in the second quarter, compared to $129.1 million in the prior year period, an increase of 31%. B2B revenue increased 25%, driven largely by unit price increases and higher origination volumes.  B2C revenue increased 47% from the prior year period due to higher volumes at myFICO.com, as well as through our partners.
  • Decision Management Software revenues, which include Blaze Advisor®, Xpress Optimization, Decision Management Platform and related professional services, were $33.2 million in the second quarter compared to $38.5 million in the prior year period, a decrease of 14%, due primarily to decreased up-front license and services revenues.

Company to Divest Debt Collection and Recovery Business

The company also announced the signing of a definitive agreement to sell its Debt Collection and Recovery products to Constellation’s Jonas Software operating group, a leading provider of enterprise management software solutions. Completion of the acquisition remains subject to mutually agreed closing conditions. FICO Debt Collection and Recovery products represent less than 10 percent of total company revenues. FICO expects the divestiture to have an immaterial impact on future operating profits. FICO intends to include the sale proceeds in a $200 million Accelerated Share Repurchase program following the close of the transaction.

Source:  FICO Earnings Release