The following is a summary of the Fair Isaac Corporation (FICO) Q4 2024 Earnings Call Transcript:
Financial Performance:
FICO reported Q4 revenue of $454 million, up 16% year-over-year, and full-year revenue of $1.718 billion, up 13%. Non-GAAP net income for the quarter rose 29% to $163 million.
GAAP net income for the fourth quarter rose 34% to $136 million, with EPS up 36% year-over-year to $5.44.
Full-year non-GAAP net income was $595 million, approximately 19% higher than last year, with EPS also increasing to $23.74.Record free cash flow was achieved at $219 million for the quarter and $607 million for the year, marking a significant 31% increase.
Business Progress:
FICO Scores segment revenues were $249 million for the quarter, up 27% due to a 38% increase in B2B revenues driven by mortgage originations.
Auto originations revenue decreased by 2%, and credit card, personal loan, and other originations were down by 5%.
The Software segment saw $205 million in revenue for the quarter, an increase of 5%, and full-year revenue of $798 million, up 8%.
FICO announced new partnerships with Tata Consulting Services and iSON Xperiences to leverage the FICO platform for industry-specific solutions.
Opportunities:
FICO's pricing for mortgage originations for 2025 has been set at $4.95 per score, expected to collect a small average percentage of about 15% of the Tri-Merge bundle cost.
The new product, FICO Score mortgage simulator, aims to provide more loan options and favorable rates, influencing potential growth and enhanced platform utilization.
Risks:
No explicit risks detected.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
