$FICO reported earnings yesterday and they had a clean beat and raise on both the top and bottom line. FICO has had a streak of impressive quarters and this one was no exception.
Despite the mortgage origination headwinds, FICO was able to grow its scores segment due to pricing power and growth in other segments.
The story around Fico being disrupted remains a fairy tale. They have not had a single defection and no threats of major customers leaving.
There has been no update regarding the FHFA ruling. Regardless, I don’t think a poor ruling will have a material impact on their moat.
Software growth remains very strong with revenues up 19% adjusting for divestitures. Platform revenue ARR growth (where they are transitioning too) was up 60% YoY and Platform DBNRR was 141%. As a standalone business, what would be their P/S multiple?
This impressive ARR growth does not include the big contract that they signed at the end of the quarter. This should bump their Platform ARR growth next quarter.
Fico continues their strategy of taking private, publicly. They bought back over 2% of
their float and authorized another buyback. They’re levering up, and continuously hammering their share count.
Overall, an extremely impressive quarter from
$FICO. Tomorrow, I will release my Earnings review on
$VLY.