Q1 2025 Fair Isaac Corp Earnings Call Transcript
Key Points
- Fair Isaac Corp (FICO) reported a strong quarter with revenues of $440 million, up 15% year-over-year.
- GAAP net income increased by 26% to $153 million, with GAAP earnings per share up 28% to $6.14.
- The company delivered free cash flow of $187 million in the first quarter, a 55% increase from the same quarter last year.
- FICO's Scores segment saw a 23% increase in revenues, driven by a 110% rise in mortgage origination revenues.
- The Software segment reported an 8% increase in revenue, with growth in SaaS Software and license revenue.
- The Software segment was negatively impacted by foreign exchange rates, affecting total ARR by 2% and platform ARR by 3%.
- Auto origination revenues only grew by 5%, while credit card, personal loan, and other originations revenues declined by 3%.
- The FHFA's delay in implementing new credit score requirements creates uncertainty in the timeline for FICO 10 T adoption.
- Platform ARR growth slowed to 20%, below the expected 30%, due to lower bookings in previous quarters.
- The effective tax rate for the quarter was negative 1.6%, influenced by $40 million in reduced tax expense from stock awards, which does not impact non-GAAP net income.
Good day and thank you for standing by. Welcome to the first-quarter 2025 FICO earnings conference call.
Please be advised that today's conference is being recorded.
I would now like to hand the conference over to our first speaker today, David Singleton. Please go ahead.
Good afternoon. Thank you for attending FICO's first-quarter earnings call.
I'm David Singleton, Vice President of Investor Relations. And I'm joined today by our CEO, Will Lansing, and our, CFO, Steve Weber.
Today, we issued a press release that describes financial results compared to the prior year. On this call, management will also discuss results in comparison with the prior quarter to facilitate an understanding of the run rate of the business.
Certain statements made in this presentation are forward-looking, under the Private Securities Litigation Reform Act of 1995. Those statements involve many risks and uncertainties that could cause actual results to differ
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