Fair Isaac's Earnings Twist: Surges in Revenue but Misses EPS Expectations - What's Next?
1min read Fair Isaac Corporation, a leader in predictive analytics and decision management technology, recently revealed its first-quarter fiscal year 2024 results. Despite missing earnings expectations by $0.25, the company achieved a robust $4.81 earnings per share, just below the anticipated $5.06. The quarter's revenue rose by 10.8% year-over-year, reaching $382.06 million, narrowly missing the forecasted $390.89 million.
The company's financial health witnessed notable growth, with total revenue climbing from $344.9 million the previous year to $382.1 million. Net income rose significantly to $121.1 million or $4.80 per share, a leap from $97.6 million or $3.84 per share in the prior year. Non-GAAP net income reached $121.2 million, yielding a Non-GAAP EPS of $4.81. Additionally, Fair Isaac saw an increase in its free cash flow to $120.8 million, up from $91.6 million in the previous year.
A key driver of this growth was a 14% increase in software revenue, fueled by recurring revenue expansion. Scores revenue also saw an 8% rise, with B2B revenue growing by 12%. Reaffirming their outlook for fiscal year 2024, Fair Isaac Corp predicts continued double-digit percentage growth in both revenue and EPS.
CEO Will Lansing expressed confidence in the company's performance and its positive trajectory for the rest of the fiscal year. The Software segment, in particular, showed an 18% year-over-year increase in Software Annual Recurring Revenue, along with a 114% Software Dollar-Based Net Retention Rate, underscoring strong customer retention and future revenue potential.
Fair Isaac Corp maintains a solid balance sheet with $160.4 million in cash and equivalents and long-term debt of $1.8 billion. Looking ahead, the company is well-positioned to sustain its growth and meet its fiscal 2024 goals. Revenue is projected to hit $1.675 billion, with GAAP net income expected at $490 million and GAAP EPS at $19.45. On a non-GAAP basis, net income is forecasted at $566 million, with non-GAAP EPS at $22.45.
This earnings report paints a picture of a company successfully navigating the complex landscape of predictive analytics, leveraging its strengths to drive revenue growth even amidst missed EPS expectations. With a strong foundation and a clear vision for the future, Fair Isaac Corp is on a promising path for the remainder of fiscal 2024.
