FICO - Earnings call transcript Q4 2020

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Operator

Greetings. And welcome to the Fair Isaac Corporation Quarterly Earnings Call.

During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct the question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded it’s Tuesday, November 10, 2020. to conference like Weber. to now would turn over the Steve I go Please, ahead.

Steve Weber

quarter including Good of press you also Factors and Will statements to November the of the at our prior On website to with company’s prior of reconciliation conditions XXXX. CFO, a on release include Vice uncertainties and And certain And a from uncertainties Regulation Investor Fourth in website of this Today, XXXX. fico.com may page under the non-GAAP you, run regarding order discuss in to through financial earnings I business, will joined measure. G available XX, afternoon. filings this Thank financial comparable Eric. the Reform contained the of today actual comparison statements operations in Investor company’s CEO, Securities the The our the Statements measures understanding financial describes to thank or refer be our from these also call, This Relations involve the I Certain Please this to we and that on company’s non-GAAP team. McLaughlin. materially. G Those each the macroeconomic the Call. and Will Relations available Act am of that call those business. today by sec.gov. Investor most Quarter could Private I as for from in cause Steve of the will SEC, results differ forward-looking will the Weber, or personnel results results President A and call many am year. on the Relations in facilitate schedule over Earnings GAAP earnings such the COVID-XX Forward-Looking are the our FICO’s presentation turn with Lansing; issued and characterized of schedule the the company’s rate measures. management concerning impact Mike for Lansing. release compared made Litigation Regulation will to in of Information statements particular, that, Risk filings. of be webcast at replay is release to Copies available SEC’s and portions SEC, are FICO website joining issued

Will Lansing

Steve, effects as and we are and and our Thanks, hope and of you, earnings the make you fourth families thank call. the we pandemic. for your with the At us safe health staying and for I everyone, to FICO joining quarter healthy continue from their safety perseverance priority and with adaptability employees their working primarily our closed. our a to entire customers. like thank commitment team of offices home for take to our this of are remaining to opportunity our most and I’d their

volatile of exceptional year. that Investor reference FICO again our focused We business a of of same XX% been increase the I results I our to extremely website some fourth record of model. and of $XXX presentation period remarkable In all we over of the the also off an our we section resilience quarter, posted we successful fiscal not management the very our that million, Relations us. has team, demonstrate year. XXXX but unpredictable on navigating only posted our during happy that On last our a quality for environment. reported QX am results At been today. revenues have an report year slides capped will

Total from $X.XX and $XX was earnings flow earnings flow XX% of $XXX impairment from QX ‘XX year cash year. up fiscal growth taking free year free ‘XX. and year. GAAP We share, great For per some large up license segment after of from our And as well. had business revenue, of XX% basis, part we XXXX. a XX% another We fiscal and restructuring was delivering up free the versus per are a year, $XXX recorded delivered million, due was and up On renewals. flow strong share non-GAAP charge the GAAP even -- cash solid fiscal year quarter $X.XX last net throughout losses. in last from large cash $X.X a had billion we Applications our XX% fiscal last we of Falcon full to million XX% $X.XX income million,

considering largest prove entered versus million, to continue was up XXXX flat In sales comps again year $XXX for Applications good year, difficult essentially same fiscal and X% our ‘XX. quarter XX% Decision as traction fourth with last year fiscal we in segment, full DMS of with year’s For from for XX% ever, a quarter the XX% our $XXX was result We revenue license the that ‘XX. and over we we million year, bookings the up segment delivered period fiscal the our last were full up versus the the the [ph]. quarter in result year, up segment gaining the new technology. Management for are large

quarter new DMS same were from quarter, this year. XX% signed bookings more million even impressive. deals Our $XX We last up the in

versus signed million we deals, up For of XX% DMS year. the last full $XXX new year

me the moments few a success highlight DMS this quarter. to Let take

to platform. and others First, different cases XX products, platform is large history and bank. platform line a we Centralized for bank support to American Solution derive auto, signed The company instances the on implement decision the corporate with credit retail collections in to Latin single on the our the looking different biggest management use in related Decision to

operators to difficult to more and deals we our analytic eager bigger most signing deals are as find We their tools decisions. use advanced automate

operating strategy were we some decision across our of year, manage institutional reducing lightly. facilities expenses. decisions been FICO and fourth investing have grow business changes software-over-services, of for shareholder coordinated headcount of our favorite we also optimize We footprint. changes, and In would the business continue on-platform to some focus our when exit to Score success, we the revenue our platform including to pricing quarter, our Those these making the we month. from solutions, in announced Subsequent the we last services to we our Cyber make don’t which We September sold made taking. fiscal charge disclosed be Risk end to made

may to be or non-strategic becoming are to platform low analytics committed not exiting mission. decisioning work. products signing mean and margin need or We the on player in preeminent focused That that renewing we project

our business growth for to We areas are improvement, actions strategic and at initiatives. constantly and implement identify our to looking deliver

Scores updated the year. progress our another are were XX% will had we year. we in business, are the quarters making XX% you we providing in keep transformation to up very Software for business the in we coming quarter versus the be our making explain continue on up will the Scores and We In information and more successful year full the there. prior to

On a the royalty BXB continued cards auto loan volumes. side also as down. revenues be originations rebound quarter personal mortgage one-time saw The and other saw to XX% in small were revenues. a true-up volumes in we strong We of the included continued up origination quarter, while

compared XX% full were the up For BXB XXXX. to revenues year

the year Our BXC to same last quarter year. for revenues XX% versus were year and last full compared XX% the up

to this good getting XX% and year continue quarter are growth versus which also our last incredible We see up partners. growth through myFICO.com, was in

new difficult pandemic markets the all when with predict we degree months also are personal federal it’s we of difficult next and impacts. our look all number and there’s will our It’s fiscal package a to great cool Obviously, see will predict the any see In predict process. digital we those technology stimulus in how but are or Obviously, timing play economic uncertainties. completed deal we to have government and to looking been we phenomenal and in to the volatility confidently at and XX levels, health coming ongoing still predict a cannot markets also transformation to the with see markets growing still a out. what loans, As or auto customers off. to faced can’t mortgage looking will we of dealing the may year. but what their XXXX, debt we the just the accelerate the resulting from of facilitate to elections But with We impacts.

past years, determine to instituted difficult have some potential because also their in it’s But As Scores. pricing volume we in within uncertainty. increases of various impact areas

solutions But from will We bookings. the are coming predict our sales and off certainty ongoing a quarter to with again, with with new record it’s quickly how difficult implemented. be pandemic, revenues record an

rapidly, on will In be will fiscal claimed strategy revenue more addition, to described have taken the causing up be and front timing revenue subscription-based our Mike an remarks. to less in his go-to-market in which recognition ‘XX, impact of

committed and are many Because are and ‘XX year. fiscal in possible, time. embark understanding financial performed are providing business a let we unprecedented first for as transparency our uncertainties. in this, of realistic on for turn as that But comments with times new call at proud are not details. some remain to providing we we We over excited we to of much this guidance minutes. also Have But are ‘XX a but Mike in me fiscal few as final the more

Mike McLaughlin

everyone. afternoon, good and Will, Thanks,

of Will was a the an we Revenue exceptional we the post and great tumultuous year of in prior environment. said, able our the over business quarter XX% fiscal million, As year. are a midst had to increase to results finish for $XXX

million, DMS as over The ‘XX. year same bookings year. Decision revenue up previous increased was license year last license last year up billion period increase with revenues Applications including XX% increased XX% bookings last business year. increases three multiyear were versus revenue. year. segments, and X% by the year. million, subscription $XXX license over same an the were XX% up million, revenues were In up same up segment year. Within period full in from the over year. as our DMS the $X.XX reported and XX% $XX were revenues both increase XX% of revenue to roughly of number Full year full the billion, driven $XXX were QX The our sales, year million the Management quarterly well Full SaaS term Our were our for up revenue up from renewals. QX last unusually XX% Application was large for quarter revenues Software Applications high $XX sales, fiscal flat for due were $XXX last the quarter

For the million bookings DMS year. $XXX of were XX% over up full year last

segment same from a were year. period Score and period was period, business BXC last partner driven our grew of true-up from one-time of in the originations $XXX over mortgage same the significantly. part XX% revenues The and XX% up the up myFICO.com volumes revenues BXB the XX% both royalties. were million, revenues same past last high year, up Finally, by

For to XX% $XXX up last the full million, year, Scores year. revenues were from

of revenues, from our of in QX region XXXX. year up revenues, revenues year. full revenues $XXX fiscal generated from region, up year, represented the X% licensed XX% derived were total. Asia-Pacific. were million XX% professional This represent and record XX% period services quarter for up from total was bookings yield. sources $XXX maintenance total revenues XXXX. from SaaS XX% from of We Full million, fiscal XX% related the including XX% of revenues Americas bookings our consulting which current XX% generated were XX% last quarterly $XXX for of implementation million revenues quarter’s the increase year. $XX remaining XX% of the from revenues software were and revenues of derived of $XXX total is services These Recurring for had million XX% bookings year and the a EMEA transactional million, previous from XXXX bookings SaaS and the were total not an

QX finish annual the our lagged and recall, QX disruptions the bookings to put from total us line may But expectations. with year you strong of in in due As this pandemic. our

restructuring including of operating expenses impairment charges. and this $XXX quarter, totaled Our million $XX million

incentives those $XXX charges $XXX million additional to million, were increased in $XX revenue compared quarter, expenses million one-time expenses. Excluding expenses and due the up with prior to associated

of X% delivered full year. We Reg operating up schedule the included charges income GAAP quarter G fiscal our fiscal for margin this margin shown non-GAAP basis expansion XX% for the for QX again million, points XXX the XX% one-time full as net XXXX. and quarter, non-GAAP from and which was year. was on Our $XX

quarter the Our non-GAAP last XX% was up $XX net the for year. quarter, same income from million

excess full of exercise charges, income year, upon $XX or tax reduced net million and employee million one-time recognized $XX was expense prior including income the $XXX, $XXX tax the was For restructuring from of awards. of year. impairment GAAP Non-GAAP stock up million, from settlement XX% net benefits

of million the tax tax reduced year for the benefits. including rate X%, Our tax effective was full expense $XX from excess

be an FY recurring tax compared approximately with tax be at rate the We same XX% ‘XX. an expected XXXX. The increase XXXX fiscal the cash effective is $XX expect in XX%, FY excess to tax to quarter is XX% our before rate to compared in net for million, million Free million ‘XX. FY tax That in rate $XXX about was resulting period of estimated recurring XX%. approximately to benefit of last year, estimated $XX XX%

year last $XXX year’s up full flow was from free cash the For $XXX million, million. XX%

Turning from share sheet. last by million $XX of in operations, million to end from cash we due $XXX million This balance to is the quarter, the At cash. offset quarter of up had $XX generated repurchases. partially

a rate weighted debt average X.X%. total interest at Our million now of $XXX stands with

for $XXX remaining an share repurchased $XXX in end shares repurchase and average of price In of total use we we quarter of per the of a we of to attractive total we share $XXX $XXX of At the authorization the an cash. an Turning price of do return on share. shares back about XX,XXX XXXX average million. fourth a fiscal XXX,XXX at had Board per at repurchases capital, bought as continue September to million

well software, both components maintenance separate rights mentioned, recently ongoing of have we and subscriptions include shifted the sales from use maintenance. the that sale premise of the on the as the Finally, our to and software license to away

result standards upfront As This the sign fiscal result in year more in FYXX, to with will ratably our contracts during we likely revenue will beginning subscription and be for their contracts, less assumptions consistent decline software recognized sales. revenue a result those term. of ‘XX. material change in at recognized the we from industry adjusted of our subscription a This license revenue in revenues software recognition

from or from term percentage turn With flows, greater existing it will have will cash contract. and term spread newly our over received on-premise not expected sales on Will his the of license revenue the the licenses over subscription to impact for total thoughts FYXX. a or software term I subscription on of renewals an recognized the of be each back total that, to over This sales As signed revenue deal. of the

Will Lansing

Thanks, Mike.

proud Clearly, said, are XX. of I and in As my opening in accomplish am our we prospects am XXXX team remarks, and fiscal about our to able I I beyond. were what excited exact bright. there our future. remarkably confident are we businesses are can’t And have expectations, proven is the We we uncertainty. but that we resilient. our But well is future for pin down positioned

eye fine on We and with will tune improving toward delivering forward informed improve continue progress. And an our to all innovate you we keep potential. as and model to look our margins business we

turn Now, let’s Q&A. to

Steve Weber

questions. if for concludes please Thanks, could Eric, you Will. our the This remarks. lines open

Operator

line Absolutely. go you. of [Operator Please our Thank from question Patnaik. And the Manav first ahead. Instructions] comes

Manav Patnaik

Thank you. Good evening, guys.

software the the you. on solid a to Just business end clearly, year to

find little us of kind because pandemic. backlog just you You clients as give are deals? hoping Is a is could I on shift ended they how there the you the a the are the strong that some characterize normal was these I quarters just more bit viewing to fact that finding back But it are or that next pause ahead of where in color few they guess.

Will Lansing

Hi, Manav.

didn’t long change I us, banks to Remember, are that that, sales wouldn’t say a normal. XXX that that buy back But software we think things days I on I would respect have the things with from to also much. average. very say cycle,

we lot was so built earlier. have pipeline And booked in a of XXXX even what

XXXX. building of We the process are pipeline now in for

pipeline some have built. We

I same how for And needs the out. focused software We they for all say it’s will anything, the had But customers software little pandemic, before it that well the there are gotten has obviously hard say would build. appetite, have our the our turn have a more if digital to and is because increased that pandemic And, they that. everyone on transformation. really plays to

working anticipate continued are off just backlog. I we So I think don’t interest,

Manav Patnaik

calendar I then the should just another And years, it. expecting that may few two score initiatives one? that plus Okay. you the just in he like, have just about? how how much you last into been talked doing guess, we secondly, Got upgrades be And next think pricing the about quantify should year, we can going if side, then on the I

Will Lansing

in actions it feather true held the years We know several past, every don’t be. amount really But know, of happen this the We can’t you trip we things pricing disclose how but exactly up these of as some and wind took volumes that’s actions, exactly respect confidential. the as we With sort. years. doing in to a don’t will scores, what know will we

a it’s it. have more always about lot is it’s so nor and the we little up just probably or hard say we past -- it than that’s think lot would Bureau’s a the to years and I -- a less way the And predict. we is. way uncertainty, wind not to getting a But activity from

Manav Patnaik

it. to squeeze one hybris before. don’t a minute if portfolio just sold guess. ISS, if Got ever in know core I business I this have selling can And just I prune you

it’s So see is a maybe I milk can curious was something coming? there is we just that lot fresh more a

Will Lansing

Yes. Good question, Manav.

really at last a help strategic undertaken business us. and Director, over is former focused to not. pretty we McKinsey the six, And seven We have Tab hired look is Bowers We strategic a in massive months. on what have our what been

are we successful it. sold, was proud technology. in on doesn’t our our platform score. the decisioning to definitely risk success so promising, are building are and of And are things that moved risk for in we cyber those the when to but good platform, are they decisioning whether mission example, really -- look But course we being central turn a It not business cyber periphery the

there state for and a level in find like some us. less that constant free things things and are some was we at of to are Are for resources a strategic strategic. we hope So other more distraction up evaluation, that

Manav Patnaik

Thank you, guys.

Operator

you. Thank

line question Peterson from a Kyle ahead. Please next of go comes Our with Needham.

Kyle Peterson

afternoon, Hi. guys. Thanks Good taking the for questions.

of some in bit Just that as touch areas took expense of the seems are be we you of trends wanted part next of could given over permanent, real a year the these some sure kind but about it guys that, whether guys like DMS. growth not higher kind rationalized to headcount trajectory, reinvest how SG&A on going some you to coming the in efficiencies such little restructuring should estate, think

Will Lansing

give some thoughts. maybe Big can then will will the I half And quantitative expense year reduction in you of the rate the Yes. we second qualitative. of with T&E. part provide in run

You slides we $XX that call additional about this $XX of can million part pandemic, are see from a the run as going year. into to T&E provide, was the a rate million

was I QX. like think $XXX,XXX it something in

not So than but it’s that’s probably persist, to going to to going be less XX. XX

to back we a So if get vaccine even do normal. have and

So that’s moving one piece.

to over also that have reduce We geographic taken the years. extent reduce a accrue to headcount action footprint real in saving minor and estate will our areas non-strategic

a headcount strategic isn’t to the will of way into with areas money our And we reductions, to headcount some the be related reinvest, of in so respect to augmentation if that That there. all that not But going to pursue ambitions one we so platform, that change. benefit. software actually did could that

travel money category. hopefully, some you do we and expect have whole we much and the at can But year full some business, growth overall digit flat that is single for least on, color. But will If gives Hopefully, we So the probably, year. maybe can that spend expenses expenses as we the in that. expect we with uncertain. than goes for pandemic better again the to to perversely, so we

Kyle Peterson

forward? color. the guys application the we term That’s particularly Was of housekeeping more that Yes. incorporate Just quarter. to more how a item, on these you that it’s just for And licensed recognize this some like sales of our into helpful. trying that longer Thanks model side? think moving about should on

Will Lansing

Yes.

year licensed the fourth friendly a the that figure can healthy $XX the had which comparison so million the at that don’t given renewals. you show you licensed we in growth might. of look sale little If we of way we delayed is a as ago subtraction of the renewals We QX. But because renewals would you up by quarter-over-quarter over particularly do had quarterly breakout if of as that segment at expect quarter, or was flowed QX, really the you of $XX.X new some a XX-K, we bookings in have from in is renewal license in our quarter. to well that driven the million look business quarter But excess quarter purchases the as for math, out, in

to -- of have then So lot they upfront. are a we better, and just recognize worse, for lumpy,

year-over-year, most And by up sales, so, in it both but happened of just business new lumpiness not that increase, always, whopper the to quarter. sort increase this teens to was mid which but renewals renewal of be was of high a from

Kyle Peterson

Great. right. guys. Thanks, All Nice quarter.

Operator

Thank you.

Our go next question ahead. the Baird. Jeff line comes Meuler of with Please from

Jeff Meuler

quarter. Yes. I evening really good everyone. on good Thanks wanted a and kind BXC really, scores, ask to of

driving myFICO result? a other for the market in terms are of recognize that just that direct product part been well or have that the that’s any On is performing changes recognize to or lately, strong strong you you exceptionally of market changed anything but side brand, either go myFICO, the have the

Will Lansing

it’s over constantly our but side, say on innovating the than would I more on we side market there. are

pushing in gets the constantly to the push that value -- that are the offering. We trying consumer

And at Our same time, the best-in-class strategy be monitoring of around myFICO consumers. credit to we market Experian. partners for is like to go through mostly kind

level to so, of to us, out some test proposition And ideas, value myFICO for laboratory out changes. is a test place at

that. do like thing And year, we That’s so, doing new always we are that. not this a constantly

for the biggest demand. the And tracking interested is lift consumer consumer think her credit then in really is I or score. thing the that responsible his

Jeff Meuler

Yep.

business then as change viewing -- a I to on Mike, then way kind -- be I of to just of going something to way performance metric but the want kind you through XXXX? the recognition track of clarifying is of business sure that question. like would of a are as XXXX? to be there’s impact make give to other are my And some adjusting there progress best unaffected? And the I us the like guess think that the throughout booking to for of And is track no that’s you guess Or expense performance these the changes, or just revenue accounting or one Okay. couple we some questions, timing

Mike McLaughlin

for those questions. Thanks two

first the The one detail, listening merits for additional some think call. I definitely everyone in

is the in ongoing software already fact in subscription is the the year. recognized maintenance support recognized. with a the majority So really the in a standard had you percent term to value that XX% in three, one-time We the on-premise two we industry better in which get five. way line that value license had sale situation we XX% in change recognize for in license two, TCV, before. would professional and to XX% nets contract sign been XX% a shifting of one to XX% every way. license of and same what opposed to about as you year reflect a reduction essentially and again, XX% versus and how vast to years this in years then out of license on-prem is some upfront sign had when the the the license subscription software total cases recognizing the in you change, for revenue That higher sale than revenue been year that perpetual the maintenance where for what being With recognition recognized sort of about three. are term do, That license to term only XX% of between the total is software ratably lead it, you value and were contract contract four years value -- for We and companies recognized it, treating deal of a and multi-year a recognized

in when software know XXXX. X have our you about the think and we in had revenue license well, you as asked revenue fiscal million So side, the side expense business about of I $XXX

we forward, the contract. recognize that the as then in remaining less XX% Going XX% of in revenue and about first would recognized years of year be recurring the will

It a we a revenue how So the over will for customer, term recognition when them, build accounting it’s what total or all of we recognize purposes. about much revenue doesn’t change contract. build

you headwind We for sure that’s will for that. hopefully, With clear. And a are headwind notice fiscal expenses, XXXX want of revenue, to a can it your how on-prem sure. do to much respect math make that So, be license everybody sales. for own but be on will these

there -- there it. XX isn’t on-prem that -- aren’t plus others So what expense associated much with earn consistent business Margins with much our are that percent.

measure period for perfect metric, now, new will asked but recognition, that’s it our we recognition expense term extent but performance match not -- generating revenue for revenue basis, with Yes, more we metric that you bit TCV So material a change be about little question. ratably to the a not now. with that’s are revenue impact revenue then know it’s we you on to relative to recognize the sticking in that going as so the but indicator current the to revenue. And impact. best separate It’s a length matters, booking, a that

kind and do annual As more its during and becomes a yet. important more business, not derivatives at just we for that are this subscription expect move of us. SaaS year, guys do some able to revenue And to we ready FIFO, to recurring fiscal to metrics you to to but expose we point be

Jeff Meuler

Got it.

three the for I partner. detail. the all appreciate Sorry

Mike McLaughlin

questions. the for you Thank

Operator

of with go Incorporated. Please Our the Brett line Huff from next ahead. Stephens question comes

Brett Huff

guys. afternoon, Good

Will Lansing

Hi, Brett.

Brett Huff

Good.

Just tweaking Could of round price sort of give and with you a dug could - us of you Could you any have for new a quick pricing. on you on? sometimes pricing into sense which up given the think that there us part guys you of follow a this I sense insight share -- we us tweaks? scoring are

Will Lansing

to are Yes. willing the extent it’s the information, the do size to share To to do of scores less with we of customer. that the type with it’s more and

tiered into of are kind we more a pricing a philosophy. So

-- spread scores. say price would I the portfolio across the of so the buying the the scores view increases to customer that And spread with size a were

Brett Huff

I smaller and assuming volumes. good long a that pretty have been And may getting time on tweaking the that that we for just are customers based maybe a am deal

Will Lansing

Yes. Yes. not are Absolutely. a good And I as say good would but a still they deal, deal. getting

Brett Huff

of bank a I this long. couple times. In behavior, know of buying are touched your on cycles terms sales you

But and any things really important. I of having when conversations a know? as on takes come is that of with get apps, as exactly folks, useful there so, might sort you know But out key you be out the the while. think director, mentioned conversations debt it sort I you that pipe about digitization And know are to of Falcon’s those collector, detail that strategy stick booked,

Will Lansing

What’s of as part a have for seeing management term we of more have and year starting engagement the of the a with see platform. and customers is last interesting historically, point more department, are of understanding what our benefits IT we the engaged to and CIO, the better just the we collections and with -- what solutions value is, more on What for and and originations are better fraud customer bank you recovery customers, and saw lack we our provided know.

the goes incremental it’s now of there large all incremental be a that still small get that where potential out. may kinds originations So is while solution platform. top that they value like And they buying of originations, appreciate they for with investments on

around biggest it. and platform understanding seeing change conversation looking to is we customers I our are think in strategy the increasingly that’s the leverage

Brett Huff

give any you DMS over Okay. master plan just the of going in Falcon update be of we And moving sort whatever. of you on completely where you remind to of finish us line? sort of expect year platform the a the sort that just us say Can then side. underlying everything on done terms in to or Can core on we sometimes -- app the to the update are

Will Lansing

Yes.

guess our I So work honest answer the is never is done.

Okay.

it’s will just we say, So not like okay.

it’s can a home. Now we the go platform, process. on It’s all

have the moved fraud And applications some from so Falcon we platform. onto core

platform. available now is compliance the Falcon in Our X on

would at, platform. approaches and also are modular We looking the on solutions more providing to fraud flexible I say,

will there of So some be that.

the applications our make going platform. to to of Some aren’t it

base, onto million sense rewrite code code. X and the lines recovery example, it And to collections of just So, platform. massive a it for doesn’t has make

a remain And base. code will so that distinct

platform done? I to are feel it who mature multiple the sufficiently is, work? going platform we are almost on that think we there. use to when have of cases another way have So, I that are want the think we to guess that is customers when

think Now, out more on they we with are This a there. the cases and a to Latin would And it I future. in want that that conversation are pretty handful much started of just use we about bank to do the American we deal there’s up they platform XX. referenced,

provide. a it’s thinking value of way about the we So different that

Brett Huff

Thank I you so Great. much. appreciate it.

Operator

next [Operator Williams Instructions] of from line Our Fargo. comes with Jake ahead. Please go question Wells the

Jake Williams

everyone. evening, Good

Will Lansing

Jake. Hi,

Jake Williams

Square an to much items BXB help in quarter segment? understand the in of how this you us Can impact mortgage were

Will Lansing

can mortgage say and can last TransUnion volumes, but Like broke saw Experian was with quarter, -- and mortgage We we what Street told they you how what of don’t last Equifax week end reported week, that The consistent us out they the they see break saw. and before we prior volumes. out

the rate was volume for them. showed itself one up but including volumes other that it’s you the although sort XX% the last October, run to XX%, could were of of from of terms a little closer whether see or think with was quarter -- consistent including month and what I unclear the our in

Jake Williams

recognition was is an revenue in on-prem then the this or And in decision term average bookings the terms by months out this it. impacted XX stretched independent that the to quarter from evolution? to Got XX change

Will Lansing

we independent. continue. that trend really long, long-term related It’s much usual. our say that are And not that. had to related No. deals I typical would been that longer than is deals than some could has to is It’s What

to how that I long cost. our platform in to with want will they have to period for standardize things when But play what We understanding out. think see on us not surprising banks the lock platform, of going it’s of an it’s a time adopt and would

longer-term for us. So deals think pressure I to going on there’s be

Jake Williams

So to escalator the return stability coming this assume that each clients give we who for the long-term can ones probably to deal and there’s are some in you year. built-in asking them are price

Will Lansing

definitely it to yes request. We about and smart try client Yes. be it’s

Jake Williams

very Got it. Thank you much.

Operator

you. Thank

line with ahead. Thind from comes the Please go Jefferies. question next of Surinder Our

Surinder Thind

Good afternoon.

in little for the be that for in that just of provide the are a of, trying -- architecture earlier more bit old it on versus accelerate towards and have of stuff? are about your on-prem savings to roadmap simply you headcount we to, of that to in ultimately in platform, build redirecting to understanding have I are up making the function the of some we Following terms terms your get the on is currently you the just just can terms was product maybe XX I question additional will are where hoping trying out color in a DMS equivalent of out you billion the maybe of investments guess, we where you Is build functionality? the think, platform. better fairly certain cloud that I

Will Lansing

of platform. the lots take platform the So we of We then can to a right? part to a solutions we So data, be strategy range that that data have decision lot the sit of can different from various to have orchestration on data specific it data. wide to that around of of that is is into And platform, of layer. a bring places top platform the that needs. analytics of interoperability have and then meet have we applied And

the matched micro are the mixed the this about to and services ought involved Our strategy of we available them and is migrate of users and it platform, the think let’s can so -- they them the our platform, in components with say, applications as has to are that solution are way what the be that make we modularize, what here different to we platform to ways. up break we been

And so heavy of on. lifting going that’s that’s kind really the

can of workflows put end front and things generation decisioning drop have analytics on We based kind environment build fourth kind programming of called to energy the Studio, lot a a lot language a of is which drag also into where a thing of a you FICO in the platform.

of then services all independently So to its be they we more parts, it component into let’s reassembled the the there’s and that. platform. work could up an be different kinds how not the But port bring think for understand into that’s purposes. It’s to lot application the about break a application the way gone is can those that platform so in can consumed be platform of they micro on

Surinder Thind

picture cycle enter Fair enough. be, administrations. maybe could picture with here from let’s let’s in X XX on that drive there for that or change a just other FICO the policy then X might any upgrade there FICO say, in FICO the in bigger acceleration And in terms that considerations an based question, for, where to the or something potential to into say, a administration, obviously even is differences matter of the

Will Lansing

will all make do driven wouldn’t I they that out the administration. sure of of increasingly that and are scoring in -- we that’s how rate algorithms to by administration. index am resiliency pace change now these score get based decisions. things the the of on the to I not right most do focused I a complement traditional really under like they value FICO say are and the using FICO adoption new have on lenders think scores

our more tremendous there’s of banks to the scores the innovation that’s get appetite the But team. the out out of think coming driven by on it. a of full side benefit I

are that. we pretty on so, And focused

Surinder Thind

this is forward about there’s think this the -- seen the we should then ramp the -- BXC any the point? the phase what strong I in how really up this run where growth have is assuming this sustainable Or you provide expect with Thank there. kind should… Is rate of just obviously one at a initial there that on just -- we rate big run can color dislocation or you. on quick we revenues And just should the rate a maybe how is on markets? am growth

Will Lansing

I think definitely… that we

Surinder Thind

little do …I platform? the customers stay on am bit a long or how

Will Lansing

I that we up it’s because enjoyed get are driving time. definitely down, have ever question the and on going the consumers environment. think the mail that. I of the all spike score And definitely no that’s environment a more their whether than There’s in letters focused or

referenced say environment. is the I So -- the by driven would earlier I XX% spike that that’s

they long lifetime the how value, of terms stay on. In

it’s We have -- tell, too to but we not seen early changes. haven’t

far seeing had. over of attrition So so same what is we kind that we have are historically the time

So we stay. will

Surinder Thind

Okay.

Will Lansing

to in, I What them. we credit being there’s focused year, inexorable an to year has this score. bigger that noticed and mean, have consumers become trend out has important on ever their year more every is been more

it’s it I down. not be that am a like spike may a and a trend. part just mean, sure of ramp I up so, And then

Surinder Thind

That’s helpful. Thank you.

Operator

further at And Mr. this have the to turn you. no Thank phones will right. I back we from All time. Weber, call you. questions the

Steve Weber

our look speaking concludes joining, Thank all This for will call you with and you. Thank you we Thank forward again to today. soon. you.

Operator

participation the your conclude call thank lines. for We does and today. that please gentlemen, ask and Ladies you disconnect you your that conference for

Fair Isaac (FICO) 10 Nov 202020 Q4 Earnings call transcript