What long-term trends can investors see in FICO's recent earnings?

**Fair Isaac Corporation (FICO) exhibits a mixed long-term trend in its earnings**, with positive revenue growth contrasting against slightly declining net income and profit margin. Here's a detailed analysis: 1. **Revenue Growth**: FICO's revenue has shown a positive trend, with a reported $447.8 million for the third quarter of 2024, marking a 12% increase from the same period in 2023. This indicates a strong market demand for FICO's software and digital decisioning technologies. |code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code| |---|---|---|---|---|---|---| |FICO|FICO.N|Fair Isaac|2020|23.051258562178592|2.36411E8|169| |FICO|FICO.N|Fair Isaac|2021|65.84845882805791|3.92084E8|169| |FICO|FICO.N|Fair Isaac|2022|-4.729343712061701|3.73541E8|169| |FICO|FICO.N|Fair Isaac|2023|14.947221322425117|4.29375E8|169| |FICO|FICO.N|Fair Isaac|2024|19.431965065502183|5.12811E8|169| |code|Ticker|Name|Date|Total Revenue (FY)|Total Revenue (FY) YoY|market_code| |---|---|---|---|---|---|---| |FICO|FICO.N|Fair Isaac|2020|1.294562E9|11.592187800355665|169| |FICO|FICO.N|Fair Isaac|2021|1.316536E9|1.6974080808798653|169| |FICO|FICO.N|Fair Isaac|2022|1.37727E9|4.613166673755978|169| |FICO|FICO.N|Fair Isaac|2023|1.513557E9|9.89544533751552|169| |FICO|FICO.N|Fair Isaac|2024|1.717526E9|13.47613601602054|169| 2. **Net Income and Profit Margin**: However, the net income for the quarter was $126.3 million, representing a 1.9% decrease from the previous year's third quarter. The profit margin also declined to 28%, down from 32% in the same quarter of 2023. This suggests that while revenue has increased, the company's ability to convert revenue into net income has been impacted by higher expenses. 3. **Earnings Per Share (EPS)**: The EPS for the quarter was $5.12, which is slightly below the $5.16 reported in the same quarter of the previous year. This further supports the notion that while revenue has grown, net income has not kept up at the same rate. 4. **Market Cap and Business Overview**: FICO's market cap stands at $38.5 billion, reflecting its strong position in the software and digital decisioning technologies sector. The company's focus on analytics and software solutions is likely to position it well for long-term growth, despite the recent fluctuations in earnings. In conclusion, FICO's recent earnings report highlights a company that is growing its revenue but facing challenges in maintaining net income and profit margin due to increased expenses. Investors should monitor the company's cost management strategies and the sustainability of its revenue growth to assess its long-term financial health and growth prospects.