Fair Isaac Q3 revenue rises but slightly misses estimates, leaving investors unimpressed
FICO•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Slight Miss* | $674.19 mln | $678.87 mln (18 Analysts) |
| Q3 Adjusted EPS | Beat | $12.18 | $11.74 (18 Analysts) |
| Q3 Net Income | $237.17 mln | ||
| Q3 Operating income | $362.63 mln | ||
| Q3 Pretax Profit | $314.66 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Result drivers
- B2B SCORES GROWTH - Revenue from business-to-business scoring solutions rose 49%, mainly due to higher mortgage origination scores unit prices
- B2C SCORES ROYALTIES - Business-to-consumer scores revenue increased 5%, mainly from higher royalties on scores sold indirectly to consumers
- PLATFORM SOFTWARE ARR - Platform software annual recurring revenue rose 62%, offsetting a 17% decline in non-platform ARR
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the software peer group is "buy"
