FICO (NYSE:FICO), a leading predictive analytics and decision management software company, has announced results for its third fiscal quarter ended June 30, 2022.
Third Quarter Fiscal 2022 GAAP Results
Net income for the quarter totaled $93.5 million, or $3.61 per share, versus $151.2 million, or $5.18 per share, in the prior year period. The prior year’s results included a pre-tax gain of $92.8 million on the sale of the Debt Collections and Recovery product line, or $2.52 per share after tax.
Net cash provided by operating activities for the quarter was $117.1 million versus $100.6 million in the prior year period.
Third Quarter Fiscal 2022 Non-GAAP Results
Non-GAAP Net Income for the quarter was $115.7 million, or $4.47 per share, versus $98.8 million, or $3.38 per share, in the prior year period. Free cash flow was $115.2 million for the quarter versus $99.0 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.
Third Quarter Fiscal 2022 GAAP Revenue
The company reported revenues of $349.0 million for the quarter as compared to $338.2 million reported in the prior year period.
“We delivered excellent results again this quarter, demonstrating the resilience of our business,” said Will Lansing, chief executive officer. “We remain well positioned for continued growth as we finish our fiscal year.”
Revenues for the third quarter of fiscal 2022 across 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) scoring solutions, were $179.4 million in the third quarter, compared to $172.2 million in the prior year period, an increase of 4%. B2B revenue increased 3%, driven largely by unit price increases and increases in unsecured credit Originations volumes, partially offset by decreases in Mortgage Origination volumes. B2C revenue increased 7% from the prior year period primarily due to growth in our partner channel
- Software revenues, which include the company’s analytics and digital decisioning technology, as well as associated professional services, were $169.6 million in the third quarter, compared to $166.0 million in the prior year period, an increase of 2%, primarily attributable to an increase in our platform software revenue, partially offset by the sale of the Debt Collections and Recovery product line in June 2021, and reduced Professional Services revenue
- Year-over-year, Software Annual Recurring Revenue (ARR) was up 9%, consisting of 60% platform ARR growth and 1% non-platform ARR growth. Software Dollar-Based Net Retention Rate was 108% in the third quarter, with platform solutions at 135% and non-platform solutions at 101%
The company is reiterating its previously provided guidance for fiscal 2022:
Source: FICO Earnings Release