The following is a summary of the Fair Isaac Corporation (FICO) Q3 2024 Earnings Call Transcript:
Financial Performance:
FICO reported Q3 revenues of $448 million, indicating a 12% year-over-year increase.
GAAP net income was $126 million, slightly down by 2%, and earnings per share decreased to $5.05.
Non-GAAP net income rose to $156 million, with earnings per share of $6.25, both reflecting increases of 9% and 10%, respectively.
The company achieved a record free cash flow of $206 million in the quarter.
Business Progress:
FICO has focused on broadening the adoption of FICO Score 10-T across non-GSE mortgages, and significant market segments have signed up.
Software segment revenue increased by 5% fueled mainly by growth in SaaS software, though offset by a decline in professional services.
Opportunities:
Given the strength in mortgage originations revenue, there is potential for further expansion in this area, supported by improvements in FICO Score 10-T adoption.
Risks:
Revenue from auto originations was down due to a shift in market share to peers pricing at lower rates.
More details: Fair Isaac IR
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