FICO - Earnings call transcript Q1 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

During the presentation, all participants will be in a listen-only mode and afterwards we will conduct a question-and-answer session. [Operator Instructions] The conference is being recorded Thursday, January 28, 2021. And now, I’d like to turn the conference over to Steve Weber. ahead. go Please

Steve Weber

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

Will Lansing

joining Thanks, Steve, everyone, and quarter call. thank you, first for earnings our

the As effects health we to of focused pandemic, with remain we deal on safety the continue of our and the employees.

commitment working customers. offices every primarily still are from who I of to closed. am day We show most to remain their grateful employees and and FICO to our our dedicated our home

On I offer the strategic as we Investor pleased Relations initiatives. section some our that posted continue of progress have am first of highlights on quarter. started we XXXX our say, website make to we our well, to financial slides

the million, $XXX period revenues of last of X% We have over year. reported same increase an

reductions the per up XX% up $X.XX we year. share, delivered XX%, and pleased of first is subscription software would toward the headwinds and net non-GAAP last million year, are place typically revenues earnings business income software because reap earnings was share our up that GAAP in our of license side $X.XX and transition We software basis benefits of $XX from the net of on We with and put have new $XX On of we ratable recognition was income million, respectively. we fiscal as result we more slowest last knew quarter. our quarter per a as XX% we GAAP XX% cost

areas. some quarter, savings last will key discussed identify we as be we additional of individuals in those reinvested opportunities hire As and strategic

market making across was continues up the encouraged to flow year. we well. free and The progress I cash cash free by XX% from deliver QX am are decisioning well-positioned to continue it. to as serve We grow are growth last $XX million, the we flow business.

in a FICO to In FICO to issued December, report Digital recognized manage which and leader stand a digital as in named highest tools all decisions, will Forrester regulatory and Decision Platform The deploy the for standard Management up necessary providing space. of Decisioning the fact, Platform was rigor.

been institutions have businesses customers’ to decades. lending the make decisions that bring future We for needs helping quickly same demands. to broader their automated analyst market to anticipate We level of and financial help now decisioning respond

SaaS term migrate subscriptions we business subscription license on-prem toward software more As including and for a software. based of our model subscriptions

We renewal despite Decision licenses a into the negatively same trajectory we the segment, I we spread services of our industry million over of XX% from upfront will provide about decline to will lesser up down $XXX will have business. described smooth issues affected revenue upfront was that the change pushed lumpiness revenue Last standards more X%, change many past revenue, the in the in in by This revenues we the revenue to total license recognize about last a extent we due upfront we This revenue line less The believe of revenue, seen. year. view we professional our of delivered $X representative through than of segment, recognition million less and how smaller affect was for million this see revenue or we upfront quarter revenues. doesn’t talked license license deal. growth does future Management as $XX with changes and term quarter on-premise the quarter transparent of historically time of cash a segment. This would in delivered revenue In out a the Application but quarters. it term of would Application timing the delay recognized In it revenues in and and earlier. flows revenues the our have over mentioned amount we licenses our

we stream will previous revenue revenue license XX%, the steady in year, to transactional were that Our believe grow. up versus declined predictable revenues the providing continue recurring DMS

we of deals large number of platform best lot in our a a few sold had the have We interest quarters. and decisioning in

We revenues. recurring impacts hard those begin customers live, are you to seeing can and from working those install get so the

committed us. the partner And China need in often to have because FICO will product in joint into like Score incredibly business, that non-strategic and becoming maximize This solutions a low all focus I focused off our fall, is believe strategy services, opportunity a services exiting of last Last and are joint Enterprise analytics. the the said, preeminent renewing value led signing platform may I December, strategic And mean business. decisioning said we or products distributes As software we the margin longstanding software the project player to although quarter Scores. of entered the of China work. we market. sold we that or our front distribute with is the that’s In not Security venture we in venture remain to effectiveness for now are

to will this that less forward, infrastructure and margins. us allow better Moving serve with a therefore market

So this and negative on and revenues, the a ESS again overall strategy. on will our overarching near-term have allow our deal help margins small impact but us will topline to focus

we more our adjustments software decisions business as initiatives. to make strategic expect necessary of the made our pursue to We be

XX% business in On were very to Scores continues the side, reform the up year. the the prior Scores quarter versus well.

were as side was the XX%. quarter. BXB although strong Auto strength volumes, our flat originations were mortgage previous fourth relatively revenues in wasn’t There as continued year. normal originations up versus On quite the seasonality

see are other both cards picked We beginning prescreen in and to starting bounce and to activities signs that back, loans of space. unsecured origination as up

about start increases increases various feather to of March we discussed our some volunteers. impacts those during release Those institute our price and talk price we As more last the across quarter. did second when quarter quarter can we in results we

side, drive to continue On the consumer we growth.

our myFICO.com The even this last more The versus quarter savvy impressive that consumers want up our same experience, lenders partner’s that the myFICO Score, demonstrate last recent BXC business, at results Our up is the use. were growth revenues versus well FICO XX% as Scores of year. quarter year. XX% as

the Finally, you year. we fiscal haven’t guidance last of as our since middle know, provided

with operating still uncertainty the in a and in are great deal We marketplace volatility. of economy a

over resilient year, still our volumes. past the trends our difficult it’s impact While to been will what quantify has business macro remarkably

So depending economy. of there’s wide year, and of while of rollout up vaccine our confident a we still we outcomes back timing range this global the the in prospects opening are possible on the believe that

As I will year, prudent. it through we turn final give the the Mike than we move will is few in we believe provide minutes, call to details. a for more let comments color me further financial over first but

Mike McLaughlin

the X% for quarter will and you was are assumptions good walk Today, first briefly of our and the million, in prior the year. increase about through quarter. impact charges last Thanks, we the the we recognition we discuss Will, took more talked impairment $XXX results restructuring in and the seeing detail an I Revenue from afternoon, fall revenue and over everyone. quarter

year. revenues applications down last were million, Our period $XXX versus same XX% the

decrease driven subscription by This primarily in year. partially quarterly the QX revenue The increase Management revenue $XX license X% term our million, period due revenue were revenues. was In increased by up same revenues lower Software last Decision segment, was over to SaaS decreased license offset revenues.

more recognizing less quarter license of ratably revenues As the revenue to deal. term would and model. transition we upfront ratable revenue revenue be Will down software license subscription more as of recognizing on-premise our how mentioned, Last a we explained are we deals over our the

the reduces are revenues. we also addition upfront selling more In SaaS change which further to deals this

Finally, recurring This of professional also near-term a on strategic professional software. by deemphasizing services likely high which goal impact revenue engagement, bookings are have and we services is value driven non-strategic of a margin core our low more negative selling will revenues.

X% volumes Both our XX% period last from categories. BXC million, revenue same $XXX reporting Turning Score’s grew BXB in that high partner BXC up last segment, the myFICO.com onetime significantly. period price increases our by increased across up same true-up the revenues from over but to driven XX% revenues as year. quarter reminder, material as mortgage unit Score year, was down we revenue. some royalty a Score and last the were QX, sequentially period year. originations, a from last revenues revenues had were XX% same well up as were

down X% of from revenues XX% represented total This XX% implementation revenues. region from license was then quarter were services total revenues software sources revenue. $XX and including million derived of for bookings XX% Professional maintenance deal. X% a X% derived revenues XX% SaaS revenues revenues and $XX for Americas quarter, EMEA up XX% generated current region, the were down bookings million, Those the Consulting were the XX% $X revenues bookings for Asia-Pacific. of year. professional services last previous of previous XX% services related from were and of the bookings SaaS $XX million transactional total million were the revenues, from XX% generated year. not year. million QX our the period were previous down revenues and quarter year. total of the from quarter, $XX Recurring from totaled our remaining from

bookings year, for the quite light of Our delivered fiscal bookings and We we each bookings about strong fiscal quarter bookings can despite a QX. quarter-to-quarter. from like are outlook after particularly quarter our lower the first relatively the good be last year feel quarterly generally quarter rest the in volatile

overall However, we note of that bookings important do and on contracts. result as a deemphasize is SaaS of our to it typical shorter term lower services sales the somewhat lack expect to professional trend

the software both the separate maintenance. maintenance that discussed to we the shifted software we and and of As away sales from subscriptions the quarter, use license on-premise include rights our to have ongoing components of sale last

adjusted this contract subscription contract recognized sales. we that industry we recognition during signed a revenue revenue This less and more quarter subscription. for the software recognized ratably standards subscription the with quarter, upfront results be from revenue and the in This of change our in term to change consistent

in-quarter under revenue quarter the claimed and are quarter, contract. This been sales be the was $X an this impact million. revenues reduction the of that model change old term of approximately will would now of have Those the of over recognized this

from the flows the As sales each a revenue this subscription of software recognized over reminder, or will quarterly cash our impact total not term license on an have contract.

million million quarter $X gain million and quarter, $XXX included of compared line totaled charges. and restructuring current expenses The operating quarter prior a in to the assets the impairment Our sale of prior $XXX $XX quarter. this included product on million

do operating commission resulting $XX strategic the revenue, incentive savings and Excluding and in redeploy down to resulting with the expenses from those restructuring. coming development to we headcount, the associated one-time and one-time primarily last customer events and event million, XXXX, resulting related savings expect decreased somewhat savings expenses QX held expenses million we travel restructuring in down Decision We took September. XXXX, charges, actions large due to XXXX cost expenses restructuring Software. due to lower $XX Management to a our decreased reduced before QX cost Compared QX expenses marketing to add were from the expenses from entertainment gradually up as quarters lower of Platform our expense step were

agreement shown with XX% up the the year. for our operating included on year about from G technology quarter last basis XXX from expansion GAAP $XX from of and was million Reg margin prior China. and gain the EFS income in and this margin quarter as non-GAAP sale Our million of our quarter period $X XX% our same net JV schedule the of points a types

million rate $XX for quarter, of the up tax net quarter XX% quarter benefits. Our expense year. from X%, excess tax The from reduced was last non-GAAP income for including effective the tax $XX same million was the

FY XX% and XX%. an year XX% to the last be expect flow of net increase Free expect in to for $XX recurrent million, year, cash tax rate We tax the was million rate to the our $XX XX%. approximately period compared be same for we effective XXXX to the about quarter

flow For million. free was quarters four the trailing cash $XXX

cash, the sheet, to in $XXX had of from down at we quarter quarter. balance end the Turning $XX last the million million

authorization of the $XXX interest of share. remaining price Our capital, the finally to X.X%. and I shares end that, his thoughts. over of average total it of do to with back $XXX will weighted on repurchase Board about return With had back rate we at $XXX repurchases million, for attractive average million at stands quarter of use an XXX,XXX continue share fourth debt now December, At a per in bought the an as cash. we turn closing Will And

Will Lansing

Thanks, Mike.

in our taking remarks, said platform remain I expanding we and marketplace. on opening building to focused an ever As my it out

continue make the levels call Q&A. make think at of and we are our We of most asset. the will invest am appropriate to continue and turning most course, I we our will to to opportunity, of to now the for over incredible Scores Steve incredible innovate

Steve Weber

Thanks, are our the please your Operator, we prepared lines. concludes now to Will. and take open questions. This ready remarks

Operator

go question is from [Operator Please Thind first Thank you. Our Instructions] Surinder from ahead. Jefferies.

Your line open. is

Surinder Thind

Good if were that few color you provide they revenues of look gentlemen. question BXC quarters quarter-over-quarter. afternoon, been my math first based if subscription we on is correct, look actually the each over Scores bit roughly business. we business. the were back significant My little a revenues, because there to a is acceleration the Can in a flat past there, If at quarter was of the and I thought a bit

signings slowdown me you is there a appears individuals certain can in if So new -- canceling help understand be if subscriptions? where what or to sudden offset new by an just there’s offset signings

Will Lansing

am I I not follow question. sure the

Surinder Thind

at were -- color, this we unchanged previous look that the they revenues, bit basis BXB acceleration appear if to correct, your it you little there they was a sequential a significant provide each is and of on for my So, doesn’t quarter-over-quarter. didn’t quarter occur quarter? -- because if math Can quarters,

Will Lansing

didn’t That’s It ahead. Mike, this right. appear quarter. go

Mike McLaughlin

jump can I some with in specific. Yeah.

were revenues not up BXC million. quarter-over-quarter, it, lot, So call but $X a

If you the factor. to a QX ago, kind look to year it back QX, of was same

quarter over to some in you So were But two QX quarters and there are right, not as be the the they were seasonality additions to year-over-year continues as compare very last particularly. quarter large strong. is QX the just

Will Lansing

was adding prior it’s a quarter. And settlement in worth that the there

Surinder Thind

Understood.

Score the Understood. the BXB on On part. --

it change to plan as strategy -- -- the there’s like in of more or the a in business, of -- a margins same I that way from thought businesses previous on guys unless side and be the SaaS relatively that, was versus maybe follow-up thought perspective, of products discussions you it I sales a Is software were in the amount the seemed occurred accelerate… a my in of the that. on time the there’s business on-premise. the to is that looking focus the seems to your bit a Are it change our before and significant maybe terms question, In because going the a like transition of little was two then that from

Will Lansing

say, business to the standpoint, a we what’s way would appropriate for don’t the really other. I from strategy do emphasize -- one the We customer. try over the

And we one favor other. so, don’t while where deals favor don’t the SaaS love -- will the we over characteristics absolutely appropriate, do on-prem business, we of the and we really license

Surinder Thind

Okay. Thank you.

Operator

question with a Manav have We from Barclays. ahead. go Patnaik Please

Your line is open.

Manav Patnaik

Yeah. evening, guess. Good afternoon. Good I

firstly are fraud sounds that margin sticking what on example the that probably of is the It I you to and is piece, hoping imagine like the So of renewing services. there. enforced just most anything I decline get I licenses lower just would guess was so worth software valuable is, not because an because with.

can works. you maybe just So that decision help us how

Will Lansing

have you view do Mike, that? a on

Mike McLaughlin

Sure. Yeah.

So…

Manav Patnaik

Mike. Hi,

Mike McLaughlin

license yeah. look …if you license look you at Manav, at the itself. the if --

probably I are address As is from down we year-over-year sales. the bigger and license we million -- am not just fraud $XX it’s question because that said, about

said we was purely less quarter renewals available that where renew. million the $X also to license a to about It revenue related recognition we As was of sale. had

It long enough had we If last of very another In you and low renew then QX down. that We followed which be lumpy. available. only quarter know that just but year, QX can goes can was you high. is up that us

a have some The wouldn’t on renewal. rest we volatility se be service. we the We was fraud per renewals is would are or of the that highest particularly is hit didn’t So good example quarter. didn’t it’s are line. we volatile, normal services so run deviation. Not renewal customers, engagement up not hit it them a just deemphasize our came can total and that. license missed smallest emphasizing But because just a would that wouldn’t they typically we managed some services we of well. do An application And QX it the fraud strategic helping ongoing quarter. perform for for basis. It services it’s an of business. and not it people low renew, the that It that standard our then where It’s

intensive engineering are be professional We they also to installed. products services are less our when

dollars product. can the that to install need to total reduce they our So spend customers the

of examples are downward two So be those over professional to services and why we trending are how expect time. --

Manav Patnaik

signs your was to card, up. could prospecting, that the marketing, you picking Will, to areas comments early little et curious probably reopening, just ties how just around a it. which of and there there? cetera, elaborate I particular Got perhaps you guess, we should, I hoping what on bit think

Will Lansing

I think, year Well, mean, earlier the we we is just what as seeing from is decline are not is as I it it a great that. was. --

to go we a while so, the recover former in to long And direction. right the clearly of volumes, kind have trend way is

-- So it’s are early life. seeing we signs of

Manav Patnaik

it. you one just why out quarter grow of that’s or… myFICO.com, well guys there. think, doing one over that I to in Got business mean, are push least for macro to understand market them I doing But this XX% And last really I the so because at differently me, anything

Will Lansing

I think I…

Manav Patnaik

down up set … somewhere the for basically fall road. will a big

Mike McLaughlin

their experimenting say run are And a crack to and a said, the trying that combination Hard have things the is business. innovating that But team I to we do we to say. the business always better. improve we benefiting doing there us constantly of things we partners that obvious got and from differently, promote consumers an they obviously, increasingly that because it’s are scores. would so myFICO as like don’t as someone to some who many we marketing credit where We Scores find to that come. fact and place FICO And are But us -- their do come it experience. ourselves. have nearly much on focused consumers to

focused so ever benefiting in say consumers we know we don’t than lasts. it’s And I’d are how I are are It’s environment and both things. where the that long more -- from

long the but could an excellent time, then I execution And think also from team. from a last are don’t we benefiting we it know.

Manav Patnaik

All you. right. Thank

Operator

Please go ahead, have from Kyle is line question We from your a Peterson open. Needham.

Kyle Peterson

guys. for afternoon, the Thanks taking Good Hey. question.

mean, you mentioned a just savings should maybe we of and the touch are think savings I this some margin will that and kind color of level on wanted go of the as and permanent the bit So or to be of redeployed reinvesting of the here. about quarter you kind the little facilities guys to Appreciate expense is labor of it how on costs had this and I some the trajectory. guys that more of fair think some some cadence reinvestment? eventually of we

Will Lansing

your will give take Mike, and Maybe just a quick at I view. can stab that, you

more will of absolutely into that Some strategic. are labor savings be areas those redeployed

So so our have of in some we healthy savings redeployed there. will are -- and those management very be we investment decision platform

that’s on are the and persist. expenses the think related, that some of to reduction COVID travel I that going of facilities some

we some have think but travel I And how we Obviously of business is less I think travel, some amount that I am do our than becomes I resume, will before. travel to all mean, unique. experience not sure of with had permanent. learned

I but a have it’s way We Zoom of COVID business. a had now outbreak, Video mean doing it before we become company,

our kind of we would expense everything same back, And at travel even that so the when level. I won’t think comes see

Mike McLaughlin

that when be add also, expense real our we back footprint comes that, the restructuring same to estate are model. Those we Kyle, permanent. everything -- I facilities go reductions actions won’t them and to back, to see consider

redeploying to how products some talent talked we are guiding the are have full from to we that’s at savings flat to expect year, bit, to On and particularly we directionally. as engineering particularly operating we going exactly the move. we side, quarter the with back labor you with, last yes, did fiscal platform still I low be single-digit are and a of comfortable But up say into our comfortable if about not it percentages, little that continue expenses feel we look call our

Kyle Peterson

time? the in like a up strategically margin a businesses maybe on Got gross of little some guys seems side. And bias that equal then just any It deemphasizing I are it. especially on over impact you to to I that the be want margin helpful. driven bit between margins. mix services on could lower the to these and a other mean But Scores some gross provide that I exiting that margins some upward software. guess you of all should kind and gross services I kind is follow realize color get lead will just That’s businesses? of of slight guys

Mike McLaughlin

equal… All else

Will Lansing

of don’t think -- a we I have color lot go ahead, Mike.

Mike McLaughlin

gross Yeah. I deliver was gross just going for at directionally mix it’s would All else our we line typical to say positive professional you The margins impact lower services, in companies is less lot But to are are your question. services right. professional well-run a margin, a enterprise those and that with math what margins going have matters, in-house software what than services software have other margins equal, professional sure. on are. if margins, see no

Kyle Peterson

Good guys. Thanks helpful. That’s Okay. quarter.

Operator

Deutsche is next Please with Ashish from Sabadra question go Our Bank. ahead.

Your line open. is

Ashish Sabadra

open that ask wanted in wondering broader the how’s Last how just Thanks think API update question about coming some traction FICO strategy? talked any I other the quarter about could for I was taking customer on should conversations my on provide question. good along strategy. to you platform just if we you Thanks. and front. any about that a the Studio,

Will Lansing

just Studio FICO is strategy fine. coming The along

track. We are on

strategy very in is API We a much improvements. quarter quarterly make place. The have and release cycle every we

focused very that. on are We

are can APIs. outward of today We them. so I and and those the are use APIs turning around that for the documenting partner we can ecosystem that process using bigger us in think actually that will the those hurdle leverage also others be internally building a them

that the about. out getting something there not So the -- worry is APIs we

ecosystem building bit a think takes the work. more I

Ashish Sabadra

very traction the fraud That’s -- definitely on the a piece. digital work-from-home, identity follow-up there’s fraud question With solutions. and And for this helpful maybe just increased solution color. fraud piece

in you talk marketplace. environment in wondering as seeing the just the there environment also the financial any about TransUnion obviously was you the the and Equifax Thanks. but announced demand side, are just seeing also talk you the Kount competitive marketplace, about for is can Equifax and competitive if in but are Falcon You well. announced increased Falcon, demand market products that certain the change on I acquisition there?

Will Lansing

still We mean are forms. very all seeing changes. Falcon Falcon selling not in I much market still the and are is tremendous we leader its

that are them. there. not for for are leveraging a it doing is less is looking fraud is would the way we Falcon. I opportunities really it wouldn’t demand So, in at management for fraud seeing decision platform down What us up and call say nor difference some, I we the traditional spaces also

as solutions be of the some of kinds some So the Falcon of as -- duty not lower platform. other but the coming cost the heavy Falcon, of other fraud some clients on of will

Ashish Sabadra

very That’s Thanks. helpful.

Operator

next Our is from Baird. with question Jeff Meuler ahead. Please go

line Your is open.

Jeff Meuler

is on special special is give hoping just But execution the are planned? BXB you Yeah. detail feathering as Thank the that going in. you. you ‘XX calendar pricing in going scores confirm Hello, said us of quarter the everyone. more Will, weeks how four and I you next implementation smoothly know that can to and pricing

Will Lansing

It Everything as Everything as will we later going happens it smoothly really about planned. so talk -- and is later. expected. is it going as

Jeff Meuler

Fair I enough. on And modest in I not And and and provide was, against by from DMS, applications down growth standards usually And what but maintenance? too a was a then of license mathematically and you understand area it -- going transaction what’s or looks year-over-year more can but guess, like a it am transaction comp. growth DMS on know that’s perspective, down. maintenance, and huge of not tough for software, perspective what’s license I sorry, And for on any I going from understand I maintenance. on

Mike McLaughlin

not… is There Yeah.

Will Lansing

do Mike, take you want to that?

Mike McLaughlin

of would macro, swing or of is I this story of card in fluctuations the of that less then saw some by quickly. Yeah. a And QX paying usage-driven things is is It’s -- solutions license normal the some in our not the rec think, A just big being bigger number change was spots was to not credit There to Again, to origination like, and less couple the related seem described the there’s Again -- be the by our lower which usage in related macro we of see that as of more did well. combined the just there. be than some just like any and be -- renewal entirely variability rev products, fixed quarter processed a impacted, big usage lot transactions overall, so we usage may minimum-driven. of means. normal a which some fraud. and with category usage, as is that

Jeff Meuler

ask Got Will, just that the smaller mix prepared was percentage to the sorry your comment it a seasonally in to it. this remarks, mortgage is quarter? you yourself. of But And then, mortgage repeat

Will Lansing

The mortgage…

Mike McLaughlin

I Will. ahead, think. Go Yeah.

Will Lansing

Well, it’s I for -- so up actually it right. fine and mortgage just now holding it’s looks -- am going

Jeff Meuler

Right. what like Equifax mix had you if mortgage little seasonal related just benefit a guess that was actually bit and you? should you that reported I know was I a I it inquiry or thought were comment just misheard something to almost accelerate quarter mortgage. lesser saying didn’t I just a this It maybe and than a

Will Lansing

notes. to No. consult I go don’t -- maybe my I need

future the think don’t opine mortgage. on that I we really

see to bureaus better their we strong on lagging are are off least we of that. and than seeing indicator we kind is are You to at mortgage. right what a looking forecasts But now us, the because and what

Jeff Meuler

Got you. Thank Yeah. you.

Operator

ahead. Brett Please Inc. a have from Stephens, with Huff [Operator Instructions] question We go

open. line Your is

Brett Huff

Steve. Two taking two big ones. Thanks hope and -- you I for afternoon, Will, all are question. bigger picture the Mike, Good safe.

commitment that have last still give DMS And think us a conversation to a bank is been a think have Brazilian -- the enterprise win had we your can or is talked I bit? watching think, big signs that of wave any that. I that. on for really starting time in little it’s strategic important of that We long-term pipeline and Will, to kind And Anything an a product. quarter you you similar that anecdotally, long build sort this to this about

Will Lansing

Yeah.

large have to from about pipeline early too institutions. in talk a DMS lot it’s think I interests opportunities various and the but of financial we specifics,

our is activity. sales that say, into a And so right able without of consuming being get I now, specifics lot would it

Brett Huff

to infrastructure platform our how think question kind business this I and about that lot some the are benefits expanding change other you we little margin a have benefit money through give of see maybe spending and us sort of That’s but in of been talked working the the rapidly? rec I helpful. that. running exiting tech some then bit margins, about we things know next And sort businesses. the the start kind Can more to the some Okay. solution. we headwinds year sense should maybe we you SaaS enhancing rev of a and of then as year, is little on I second on from margins not know if and will, know and we that Thanks. But have a look potential application numbers just DMS of margin a

Will Lansing

changing -- -- with margins The directions. two pushing margins and better W because expenses. less are our is it The improving are we mix -- in are on PS. we getting have pulling

ESS with the and going it. can the shortchange are what talked are that work Decision we identifying and We And year-by-year not in But not opportunity our products to strategic about opportunity China that incredible on example. contributing see set and aren’t through but enough Platform. Management investing so for ones we really we against afford are not is that the it’s trivial. And it, the this or and reviewing market spend to DMP we given we

investment. the So will improvement incremental some be think that I of margin by consumed

that know looking miss that because about way to operating those standpoint are this stock But constant it getting while to a could it. think Are a kinds within on not they for the put good we better Are just going for move. probably which with margins Flat are us It time, reduction you the wouldn’t opportunity worse? are prepared lot getting We getting really cost is better? in way not I internally I Are pods with from direction. a an of improve that say margins platform. of yet. going to it same sideways? Now, recognizing at things, they is goes? a all to press

Brett Huff

That’s really guys. Thank helpful. you,

Operator

go have up with question Surinder from Thind Jefferies. we ahead. follow And a Please

Your is line open.

Surinder Thind

fine some you M&A a tuning businesses an are that within A more question might of can follow-up for of talked the for kind earlier the of question. kind quick about in bit has on you little Thank the front, needs think opportunity M&A you we or or bit Is there that potentially little there any focused. that a anything that being changed and about you have?

Will Lansing

lot think a changed. has don’t I

and we for rarely platform business, strategy. -- And that anything other and little is be the to complicated have a You bit stance find bases we with issue makes businesses the put our always M&A It into is we on code sense and introducing path especially just significant issue a our strategy, -- are know potentially to be us. a is our it’s platform. given brought on our that that, looking that open just other

more invest we for build organically while continue this to So us time makes looking, and are organically. sense to at always it

small talent we wouldn’t acquisitions I that always imminent. of technology acquisition, large said, not acquisitions, hold But my are small in little it Now never happen, say gaps. it’s typically doing sometimes fill never could acquisitions, breath, terms but but that

Surinder Thind

the you weakest. three the was That’s I quick record the when and seasonality some very There provided years. of color in one the plus past on is of quarter on else, lot I there fiscal in guys helpful. how then kind you other number questions the anything generally that guys lowest component numbers mean, And the were back question. that I and first have for look bookings a Is actually

are a just waiting is to a are there and if that of maybe the those talk uncertainty? are DMS roadmap sense the hesitating clients dialogues And the can there the the lumpiness for so DMS for or than year? bit, little more clients you client read about platform anything maybe of is it other just next little maybe is platform there the over What into in bit

Will Lansing

and Mike I can will in. chime stab take a

think are on. other the -- changes there I going is that there bookings,

will a because That’s by out, renewal line. opportunities has there way term do bit. sooner better because design. It’s we example, length for shrunk have So think we to a down it would be pushed the than have rather

full compensation. a now compensated on as fact people has So -- recurring natural bookings the It’s sales of are opposed internally. to reflected our sales kind that that, in value on meaning revenue impact and the in reflected the the and that’s that annual

have say I I not So and it. right. ourselves one the that’s over for to not do really stop annual do I of we that? we sure as metric I been to a focus you would Mike, factor. add sharing are that to on have on time going it’s we obviously to basis. mean time it want think business start would kind promoting also say, for long But a this our I am recurring anything to

Mike McLaughlin

look, Yeah. it that systemic or a like part does, is I’d COIVD feel of customers. there say doesn’t the otherwise hesitancy it on

tell You still good. for But can the never is feels sure. pipeline

As the we quarter. feel full off seasonally the business we came you on into basis the quarter year said, booking still QX slowest a know and as good new highest in we is about of what ever

to case, what good again time you -- the that are the for is we that So pipeline we look year. indicators will think continues is about it’s don’t see But thinking the tell. the

Surinder Thind

just the then one That’s the question very next year? for And final over of the platform roadmap kind DMS helpful. here,

Will Lansing

am I the roadmap. Yeah. what not to prepared about disclose are sure we

Studio APIs big I those and We would the say, outward, to and continue progress make to points. continue work hard we turned on against the getting are

Surinder Thind

guys. lot. Thanks Okay. Thank you a so much,

Operator

no this And there at questions time. further are

Will Lansing

and Thank you. joining soon. to have you you look Thank you and call. forward Thank day. today’s speaking This a all with for again good we includes

Operator

please participation disconnect That concludes line. call. for your Participant your today’s please thank and -- you

Fair Isaac (FICO) 29 Jan 212021 Q1 Earnings call transcript