FICO - Earnings call transcript Q4 2024

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Operator

Thank you for standing by, and welcome to FICO's Fourth Quarter 2024 Earnings Conference Call.

[Operator Instructions]

I would now like to hand the call over to Dave Singleton. Please go ahead.

Dave Singleton

Good afternoon, and thank you for attending FICO's Fourth Quarter Earnings Call. President CEO, Relations, CFO, Will Vice today I'm Steve Singleton, our by Lansing; Dave of and Investor joined Weber. I'm and our

forward-looking risks website the results Those forward statements these Copies filings. facilitate uncertainties year. business. in involve issued Securities or team. to contained with risk Act in will of Private comparison FICO we a the actual cause from statements results prior release available uncertainties Certain looking are Relations and particularly of results and describes Today, this of quarter differ many in the SEC, the to rate from press also concerning discuss portion made the and understanding Reform Information presentation of SEC, this from On that company's financial prior Investor the filings under the the with could call, such an are materially. management statements the our Litigation the is that to XXXX. in compared risks factors run

regarding non-GAAP will the appropriate G non-GAAP for include comparable reconciliation today measure. schedule statements of and to certain earnings to call This refer issued financial measures. Regulation each of a financial the company's measures also these Please release GAAP most

November Relations fico.com on of XXXX. at earnings and are under reconciliation to the G with earnings the The This company's and of the filed SEC's excess compensation stock-based through GAAP Item our release will website available X, replay includes at This are and to Regulation or titled is X.XX X-K, FY items 'XX part Operations the such as of an adjusted Results we a webcast tax an included on available Investor guidance non-GAAP the for of SEC of be Exhibit which schedule website earnings, which this reconciliation sec.gov, page release Financials. benefit. and XX.X

Lansing. call CEO, the over to turn Will our now will I

William Lansing

thank earnings website, and referencing results everyone, fiscal and Investor for fourth Today, us for highlights quarter of Dave, our during We exceeded posted those Thanks, cash on talk slides. be we've our our financial and the In section you, all call. 'XX some joining our We for had Relations this presentation. strong 'XX. guidance fantastic flow. another about growth in year. metrics I'll fiscal delivered free quarter's We'll guidance

over Page of highlights, X As we of fourth revenues on financial quarter shown XX% reported quarter last the $XXX million, fourth year. up

net reported fiscal year. delivered up prior in in million the GAAP earnings year, the XX% up quarter, of versus up and XX% $XXX we billion $X.XXX income revenue, year. prior the XX% per For from in We full the share, $X.XX GAAP

reported equating For the share, $XXX full of in million net We $XX.XX fiscal of up income net and per $XXX GAAP XX%, to XX% respectively. $X.XX delivered million XX% non-GAAP per in the in year. quarter, prior the year, earnings up we non-GAAP income, XX% from up earnings and share,

which of fiscal full to share, up and XX%, earnings net million the XX% per $XXX equates income, non-GAAP year, For delivered $XX.XX respectively. in we

and we XX% XX, over fourth of year-over-year. increase quarters, flow free delivered Page on million record our of in $XXX an shown As quarter cash last X $XXX the million

XXX,XXX to we return an the quarter, our share. $X,XXX through shares buybacks. of fourth shareholders per capital price to continue In repurchased average We at

per $X,XXX shares XXX,XXX repurchased we've year, fiscal at share. average the an For price of

presentation, prior million, $XXX revenues X the fourth our In versus up were segment, quarter on of our XX% the Scores year. Page

year. year, revenues $XXX XX% For were last up the versus full our million,

up the quarter revenues fourth primarily by side, up driven prior year year, were BXB the XX% for the On originations. XX% and versus full mortgage

and XX% mortgage versus down versus decreased the driven were X% the quarter sales website. revenues year prior for full prior total quarter were be loan Mortgage we've revenues fourth the and while card, revenue. X%, down announced by FICO's myfico.com down the royalty other side, calendar personal of of origination per were on year. the credit XXXX, wholesale year. fiscal Fourth BXC that mortgage BXB originations XX% the X% for origination for $X.XX revenue score X% revenues XX% up will Auto Today, accounted versus for and Scores On down prior revenue revenues were year, originations originations.

collected to $XXX. the of new $X,XXX, royalty, total per this remain FICO's Tri-Merge average With XX% typically average, closing about of is bundle X.X% score a $XX ]. small will cost, At amount [ about well the over by on percentage, which costs share only FICO runs

the central role be lenders, mortgage continue closing important borrowers, $X Score a to facilitating trillion about mortgage costs. individual As as originations The insurers, it year FICO such, for every other in stakeholders. and lowest of investors critical all a will tool plays in

can risk residential collected as new incredible value evaluate found by most on www.fico.com/blogs, pricing and and to royalty and fair you entirely score is deliver on would detail more our at the be mortgage The the on website the information and blog. More and FICO royalty credit some continues FICO reasonable, I cost-effective all tool to finance. encourage our to get used consumer trusted

to continue from non-GSE FICO Score the adoption drive XX for mortgages. strong We T

the sold credit securitization for T using already investors. of to to XX on credit will for mortgage based mortgage and lender. signed T. FICO requirements. and signed lenders, XX mortgages implementation servicing up are be have annualized in conforming rolled in timeline with about for billion delivery now Mortgages, originations $X.XX over Firms mortgage out we the eligible quarter, score T have trillion GSEs that for largest FICO including enterprise This portfolio decisions, We in United make new Score $XXX the of Wholesale clients XX FAA's the global

potentially favorable providing applicant's FICO more by more rates. credit consumers simulate score. loan potential week, which run changes This applying continue the we our options announced lenders scenarios in data Score to changes credit business. mortgage the innovate to mortgage and Last Scores in both by launch to to and simulated an benefits FICO we event enables of upcoming professionals report applicant interest Now mortgage simulator,

In software, a SaaS up services. our X% partially by last quarter million driven revenue, in $XXX delivered by professional million year. $XXX year, from in fiscal last from revenue, Software growth We in up year offset segment, in we fourth mainly delivered X% decline

We our strategy NRR land ARR and continued and by to growth expand through customer expand drive driven with in increased usage.

XXX% total shown XX%. As non-platform quarter, up X%, Total shown X, $XX quarter NRR Page XX% on NRR with flat were Page for X, with ARR million. platform and XXX% non-platform the year-over-year. ARR for ACV at and was platform the bookings the growing at on was ARR

year-over-year. were the Our for total down bookings ACV year XX% $XX million,

in first consistent the of second the excited of the half I about am business. While future half were year, software bookings we headwinds our face some year-over-year. macroeconomic the

platform decision-making Decision worldwide our This quarter, FICO as IDC testament to leader and scale. in decisions market. steps real-time in We a in the is the for FICO our to capabilities customers' needs This help at by a recognized orchestrate of meeting and recognized engineer the automating decision-making innovation future. its customers design, that commitment strategy organizations the process. and Intelligence today's transparent was enables needs both

We this quarter. announced FICO partnerships X platform

Tata strong leverage to will growth to solutions solutions These partnerships as business. Experience is platform process services generally help us Consulting our Ison and FICO partnered company largest with outsourcing known create will global have real-time partnerships the for drive industry-specific for business a with continue TCS, Africa. decision platform We Services, in integrator Both making.

guidance, fiscal address other I'll I some to it to financial Before pass provide over 'XX details. Steve

Steven Weber

and everyone. Will, good Thanks, afternoon,

As very over of increase Will the mentioned, another $XXX year. XX% revenue had we of prior with total quarter good million, an

up mortgage up XX% was billion $X.XXX year. up of by driven the revenue from XX%, that XX% for space revenues. BXB revenues segment over in $XXX year million, full were revenues primarily Our score year. prior Scores originations the last were quarter

the were our myFICO.com volume down versus X% business. year prior due to declines revenues BXC Our in

Scores $XXX full XX% BXC X%. $XXX despite year, revenues million, the down BXB originations XX% up For million, were headwinds market. revenues in were mortgage $XXX were and million, revenues the Total up

for segment while prior Software were services On-premises revenues million, software up revenue and year. SaaS $XXX X% quarter X%. grew from X% declined year-over-year, professional the the

prior up previous software year. from revenues Full million, were year $XXX the X%

total of region, is Latin were quarter, and This our revenues from combination a derived North XX% America America company of our which Americas regions.

X%. Asia delivered revenues generated the Our region and EMEA XX% region of Pacific

million, representing -- Our Platform from our X% total of total XX% ARR $XXX QX of million, million ARR, software prior increase XX% year. was the ARR. $XXX 'XX an over $XXX ARR total up was QX 'XX

continuing ARR of these prior to to to this customers. Platform our while the million our retain year, FICO expect platform we at customers XX% grew versus while products. was do $XXX non-platform with time, non-platform migration Over quarter. growth focus platform on aligns flat strategy This

successful. continues Our and be platform expand strategy land to

a by our increased existing while Our retention combination NRR was cases rate XX%. use Platform the Platform new cases. XXX%, net was XXX%. usage quarter NRR driven dollar-based was non-platform NRR of of use and in was

software $XX million. ACV bookings were were $XX bookings the the year for ACV Our quarter million. full for

the now on Turning for highlights to as presentation. Page X of expenses the quarter, shown financial

operating total expenses million and XX% versus flat the versus an this prior the in quarter. $XXX quarter prior year-over-year were Our $XXX million increase of year,

For versus were in the full year, $XXX increase prior an year, million million of expenses our $XXX the XX%.

prior resources to on guidance maintain than to in our efficiencies lower year. prioritizing Our FY initiatives. growth We our strategic assumes are year-over-year focus the expense and 'XX committed most

FICO development also We while continue marketing. investing and to accelerate in to focus and platform, of resources distribution investment Scores

the XX% quarter as last quarter G compared margin, year. for same was XX% operating non-GAAP Our Reg shown with in our in schedule, the

We the up points quarter. delivered net XX% non-GAAP was margin this XX $XXX basis GAAP income quarter for the prior year's million, year. fiscal of expansion full from

quarter, million up quarter. non-GAAP income prior Our from the net $XXX the for year's was XX%

$XXX XX% GAAP this $X.XX, year. per was prior was earnings year, year. net versus million, non-GAAP XX% GAAP ] last $XXX full last the For net up million, up versus were and quarter income up income share XX% the [ from year,

earnings year. non-GAAP from per were the share XX% prior up $X.XX, Our

rate $XX tax the that XX% XX.X%, employee rate For from the share per were tax and to tax non-GAAP rate our expected our XX%. year. The tax fiscal XX.X%. benefits year, year, is exercise the is year rate million full $XX.XX, be was We recurring around was excess recognized be expected of or of effective awards. XX% tax quarter from reduced tax believe year up stock earnings per included XXXX upon which expense earnings share around from The XX%, net settlement while $XX.XX, last to up for full last the for effective effective were our GAAP

The had quarter, recurring quarter for $XXX free benefit and XX% flow is million At marketable from increase was a and tax was versus cash Free tax The year. million, was previous investments. cash and end XX% before million of the the the $XXX up excess we items. other year year. rate discrete full last $XXX flow in the any cash

at rate debt of billion, total end $X.XX quarter Our interest was average weighted X.X%. a with

XX% debt our rate. Currently, of total fixed is

the us debt cash gives to and time any outstanding reduce use to at prepayable floating free future flexibility balances rate is periods. debt rate in floating Our flow

Turning the of to return average of capital. in $X,XXX We share. fourth quarter bought per price shares XXX,XXX an back at

of We In And million. review share with average view I'll an repurchases cash. our price XXXX, as we guidance. Will for to of an a continue share shares attractive back total at to repurchased it XXXX $XXX use $X,XXX per to that, turn XXX,XXX of fiscal fiscal

William Lansing

Steve. Thanks,

execute as the We continue from adoption our we customer and globe. We and had the around customers strategy, a together great Scores our customers and prospective on results of is proof Fiscal successful most software World financial our to FICO 'XX both was products. brought in year. our

achieve to of win how XXX as We trust goals. our over their with continue customers helps stage the speaking customers our software to on

continue an community leader We Gartner IDC, evidenced as Chartus. Forrester, to and including analyst reports, by be industry

Marketplace. innovate. upcoming At of to APIs previewed introduced drive launch of adoption channel We to the we continue our FICO FICO Platform. FICO new World, We partner

capabilities, Score delivered the new responsible Platform year, new of created mortgage IP AI simulator. and launch we In FICO methods FICO announced using upcoming

field We students of for with completed and financial summer Club tour commitment We U.S. field continued the to empowerment of financial the literacy Chelsea Football our adults. both dreams, and

workshops millions hosted U.S., 'XX. credit. Soccer better of future people programs just help is to the gain for well Foundation. access FICO's fiscal positioned which We that Score across strong We're of one

to that we an in impact everyone timing expect remind estimate XXXX And we prior magnitude of the some with our of volumes, in have announce As because uncertainty impact. initiatives I'll and our guidance the of pricing years, difficult consistent guidance, it's that numbers. beyond additional

and product our us for XXXX. and that portfolio With While macro as revenues diversified shown revenue guiding of predict, presentation. earnings to give XX Page we difficult are double-digit mind, into the in visibility are trends fiscal metrics considerable both growth recurring on

the of GAAP We are EPS an about of $XX.XX, turn income session. non-GAAP XX% of guiding XX%. XX%, XX%, With and $X.XX net I'll net of of a increase revenues GAAP year-over-year increase an to open about the increase an approximately about to non-GAAP approximately $XXX of income billion, $XXX Dave of increase. call that, increase back an million, of million, XX% of EPS $XX.XX, Q&A

Dave Singleton

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

Operator

[Operator Instructions]

comes first Our from Barclays. question line the of Manav Patnaik of

Manav Patnaik

disclosure the for blog as well. you thank pointing and to Well, us the

I pretty close? room that just X.X% think see about, still I ] for the that I mean, whole you thinking talked gap ahead, been it's the X% you've more [ guess I to consistent. that's guess mark? do

William Lansing

we Well, to that charge. tremendous we value what believe delivers continue score relative our to

And there is still that yes, I would so say opportunity.

Manav Patnaik

with, if about key initiatives maybe software of side, investing in have for of is us to obviously could And Okay. more where whether be on on well, don't anything there it, -- spending Good on software how Or year you're I just what want level what then, the And planned the would is wondering think a just and there's helpful. lot to the I I platform? set side. you just enough. the end your know whether inning keep guess, you you this work focus some and was that it's in

William Lansing

I that in still much very early we're would say innings.

of with our institutions You see where we've under penetrated that little call can platform the enterprise EPCs, globally. we half of penetration a financial XX top what customers,

to go platform So And verticals. major we for before landing before a with there's lot major down opportunity institutions. expand market, of through still players other course, of is that's the we that, lending with

say very, that one. very so early products minimum I'd innings. said, That viable we're not far we're in So it's inning beyond

-- platform it far have who We and are the in we is recognized by along enough it. that decisioning along preeminent players world the increasingly need for

for So that continues something really to be us. strong

we a for. And in terms certainly the features will and as to margins of we've invest functionality in clamoring discussed sales customers lot investment do in past, expand, more distribution. that think our and platform. and in we investing are I continue the when There's are indirect

open all advantage We are we decisioning APIs should our IP. kinds investing do in an with to with ordinarily business don't take that of ecosystem that of our players enable

and level of which opportunity ahead us, continue improving margins So pretty of no does investment. of more we've that ought margins. for which R&D that in likely our this our for there designed over there's with scalability high improve doubt some we said, through spend, big All and maintain it just for is still And to even time, view we are the do some process we're time to and we reengineering today demand more platforms scale. will because margins because getting scale a if and

more days, get hope that's I but going Early profitable investments, helpful. anyway. to continued So we're

Operator

of Our line comes Thind Jefferries. next question the of from Surinder

Surinder Thind

this can how expectations non-pump you Well, platform the software and piece, just what on maybe your component the guidance, point? versus think software at disaggregate maybe about for we just overall the should are

Steven Weber

guide level. at guide don't We Sure. We question, level. corporate that at the the level. just segment got for total thanks the Yes, We don't

as expect we don't we specific and side, a on even we software non-platform. about talk split versus out Scores we're in So don't that little it's platform not Frankly, versus software the below difficult -- what platform legacy well. even know deals between the that the with and [indiscernible] could to the on platform up up product early sometimes end end in some could these of or non-platform, difference stage

don't that really we split out. So

Surinder Thind

when solutions. there I what to the place, out about you're does at, of Understood. think you them And process work point? the in that might And I might build into such terms relationship they would be can the then of looking in Any just that putting partnerships color call a in have? industry of may that provide at IP what the, sharing looking how at on they solutions be then terms industries this or what specific trying

William Lansing

Sure. is where for best the sides as economics mean, partnerships and It's in work you relationship that good a are competing there's all the thing. know, I both partners question. when and same not of for it complementary enough

And TCS, with partnership. for a which so is strong in partnership example, our very

number on a going of have here. things We

decisioning IP. tremendous We have

and and tremendous does distribution They of professional participate verticals and FICO in reach in. whole a have not that services participation lot

things they're developing that favor they our doing and professional it So of do of because we're expertise with implementation level way not. our help solutions so confidence kinds X implementing One with a is for a direct them. services in can we that customers

customers, leveraging so and And there. IP. But vertical benefit very there's by a solutions to in their providing also vertical they're interested

recognize they decisioning IP is pretty that special. And I think our

And so some verticals and have presence around they they're building for our particular expertise. a solutions where IP

based building other for do on and the IP. our is is a replicate intent solution But area, well. that to So verticals TCS in proprietary in example, logistics that decisioning our as

Operator

of comes of question next line Sachs. the George Our from Tong Goldman

Keen Fai Tong

Can in planning for prices discuss XXXX. in thinking prices raise XXXX? about how you're XX% approximately by You're mortgage to scores you non-mortgage

William Lansing

Yes.

So by out first you in appropriate non-mortgage. think ], apply the than we XX% entire as a of every every XX% that's X point we we increases some fair by varies. other raise increase. the But would less and in know, not I terms did scores year, a about the of do all, I increase. year And [ that XX review It's guess varies pocket scores and at same it's it portfolio to we It segment. to prices, thing it demand. where of varies don't and prices,

business by course, isn't means. entire Of mortgage any the

Keen Fai Tong

And the Trump broadly, you you to it. can talk operations? expect Got FICO's then presidency Okay. about impact how

William Lansing

had that such we've in And a kind that about administrations, We it. with the administration, and an I unlikely is in say work Republican market things which both think that in said, the both markets we That as U.S. to Democratic success do so of Republican we core Trump really with obvious lending continue lot is that question. the push the and in that we're position cornerstone the good would or of have we'll will of we're Democratic a system it's out operate, system. the component that and its reason just we That's integral of the we a imagine, Yes. you administrations credit can anticipate to the as operate FICO

look we to forward that. so And

Operator

comes of of Faiza line Alwy question Bank. next Our from Deutsche the

Faiza Alwy

Yes.

in uncertainty? on XXXX. mortgage So will macro could I'm some expecting to recover volumes alluded you elaborate curious are if to you that? Like And you

higher. of you little We are application have declining seeing there that that like rates comment pools bit those number some were been per you seeing because on a can if I'm And curious more are recently. indications

William Lansing

to Well, so to us own I nobody come so knows and you mortgage you not volumes we will year. will macroeconomic respect uncertainty, the little that the think is on up and your that estimates you with hard holds, volumes over future future. do for increase to coming a where anticipate -- the leave it what the mortgage say. in think not with schedule to But We be

guidance of have we've And for how so is pan conservatism. appropriate as And just incorporated us to we'll level in our typical out. things see an

we number In really pools, public a pronouncement we don't have don't terms -- of of that. on

Faiza Alwy

as Understood. I'm that if market opportunity talking forward? think you have you Okay. secondary FICO something thinking noticed there's that a participants, been been going curious and value score the provides I the And there? you've then potential Do revenue about about to

William Lansing

FICO many Many it. who use rely very Score. Score people on That pay that is question. don't FICO doubt no the people interesting use for There's the a and

has today they tend to permitted downstream first then been us business use free. when are be by we historically contract, around built charge by subsequent for the uses -- Our model and and the

in we're business. course, Of

pricing system. and that we and think difficulties and we in kind put place the maybe scrutinized could of we fair. system you is standpoint encounter so of else, But it them where that about to might kind every prices one thought is we on and change if sure is, every more trying the to variation unforeseen we the has what also of to make somewhere what be what the lower consequences raise recognize usage kind And of change a from the that's theme, about

FICO things, we're we inside trust our it's easy We how So really might up dozens with we about those mindful me, community, dozens do of kind could and are variations think of our but to also have don't for We participants rattle economy the make to that. come to strategic thinkers And the the to we we responsibility on markets. the IP. our of price do. the to to want that to loath ecosystem changes that in customers, and

we we but say that very might we're and appropriate, And very, consider you've in it. study And don't like to everything about cautious if we something So that's that, seen not careful the future. do.

Operator

question Owen next of Lau of Our comes Oppenheimer. line the from

Kwun Sum Lau

in And could guidance, your how add weight color please XXXX? assume you the loan will that on to maybe you volume. more how you back impact Going how many do cuts expect

William Lansing

of don't one has opinion where our different everybody areas a we publish That's those and opinion.

what I our think pricing know is. you

think what speculating should is best making than I anyone. to holds helpful about my so that [indiscernible] your opinion that anyone sure to decisions else's. many worth not And you how estimates own apply us. I'm your to guide I be my going cut is know that don't a rate more for on the as to future

Kwun Sum Lau

under vendor period. update to clients market give budgeting challenges that. the analytic on it. because your some cuts and end the hearing that you given on from going we what budget of an pressure platform Could Got then consolidation the side, and you're the us things firms like year-end And of are were please and

William Lansing

something budget XX point business What much under to you pressure. in where years applications we used absolutely. Yes, ago, lot and were experience we out our is that a X very

a deals and customers is platform What now. our And much were truly postponed. a out by that that when customers. our stretched less decisions lot cycle sales of were we strategic see under and investment budget see were is We pressure, of so postponed the the

of kind And make imperative I to But there that platform and be our to decided transition for choice power to is consumer so to tends C-suite I the budgetary and customers kind build with pressures. customers think really try It say the immune they that level their brings. digital And want this themselves to is relationships to at it our won't that a some of their or and features buy we've as building because competition really to it our to and not it there the to terms between wherewithal buying from point. functionality solution our software billion solution, $X meaningful the with of close homegrown in kinds there's to FICO business are investments. any platform. get customers in of invested FICO with this make And few to those in-house a we're

kind is of any cost. homegrown competitive of going so -- they to a And a at what solution with just be not FICO the fraction

get we themselves. than And functionality faster platform very and adoption so they could they what they see get the it of analysis, it's solution, they do much is They were on. they planning than a it if tremendous cost-effective and our because did more

that's so really going decision is kind how down. And of that

But So pressures. not we budgetary budget than really maybe better of pressure, say. who we knows, lot of a with we slowdown less we'd are are, budgetary experiencing doing pressure, can't because even be

Operator

comes line Company. of Our from Needham & next Kyle question the Peterson of

Kyle Peterson

wanted start the strong. revenue I off on really to in came this quarter Scores

to I there royalty past, have had one-timers. where licensing in any Just you or sometimes, wanted true-up. the deals guys some see know

see was want the clean anything to So number? like, is there number? I onetime a that just in Or XQ

Steven Weber

little more quarter. bit than and little mean quarter most -- of know, some. certainly there's than this probably there -- was a bit onetime off, you ], There were I as than a there quarters, was [ last Yes, there's

onetime revenue the I of mean number, material but a rate. it's nothing overall So don't additional of was there. dollars in our million run all definitely revenue bit in that there a little few we there's necessarily have that

Kyle Peterson

I on Okay. mortgage there a transparency kind time Should in That's should phasing just a fully being of X? is of scheduled the January think mindful any the I helpful. we phased price of? we rollout. guess that then as be there. lag or follow-up And score Or this on appreciate

Steven Weber

customers later. we've because always always other discord lap there's every lag. the consistent not in, some might we X, deals but scheduled, that still -- essentially. about right, Yes, feathered being so don't -- had price talk are year with used there's on on it's lap a It's January But to

Operator

Fargo. Our next Haas question Wells comes from of of Jason the line

Jason Haas

the I'm talk then price? the curious details sort but of you at to you're you through for and of those go could what number right score you've Like if I'm go appropriate with? to that mortgage what the why the of well. to did talk you to for auto also $X.XX you analysis would as about what pricing arrive if curious, And card, decide was price also could about be going the analysis run did verticals not determine recognize sort

William Lansing

provide. can about probably market. of lot not we customers we And think that into a at are the that the everything. lot those We the value. And There go you look we at We a think we my on but view exceeds this, price factors to lot It's look not look at that imagine that formulaic, a value our is pay we're tremendous fair, asking it. There's a We it's volumes. a think formula. do whether about whether is which things. price

are. we is year And Every where so with fine different. we're

different couple And it. it. think There's we percentage gets we partners are year. amount down the The to about year sit formula for each are of rate published dollar each a different. September card and increases our increases X The months in not the before

discussions have also with them. We

a go there's of it. into lot So just factors that

Jason Haas

if And then ask could That's a helpful. follow-up. I

but was quarter it's curious the if in non-platform there? which that, the grow off to should particular business there I little is we not a for know trend. I focus anything declined On the was slightly, be aware

William Lansing

It's bit more, volumes bit a and mean volumes. get this I based there. nothing amounted little we little had there's on some -- usage It's nothing There's quarter. No. a just volumes less.

Jason Haas

That makes sense.

William Lansing

in They customers. in typically it not platform. push a And business a It's X-year hurry we -- about have dozen this to share market strong it I our that's applications do big mean, for not we but legacy a how to where often. half worth varies, renew them happens that important -- like we we're pointing on business think renewal have cycle, out. very the very large

our on We full hands new platform. with business the have

so we we're are legacy the customers long as renew products, who And as happy have with happy that. to

to to that the for those continue products make we for are appropriate sure invest legacy tomorrow today future. for in and And and the and functionality features

it's quickly. a to think I not pushing time either. business a we make be in it in healthy for And of to little we're customers stand. tends grow also volume And really long by to to XXX% be be us there. investment below to a where harvest whether going keep pushes We're -- XXX% the We current. it That very mode driven. fluctuation, over modest we're terms our legacy usage our come. not little It tends So that to a is or

Operator

question Our RBC line the Markets. from of Ashish Capital of comes next Sabadra

Unknown Analyst

David are card. for -- allocation if thinking about Congrats capital on your is follow-up, Ashish. Paige competitive then dynamics in This could going of and a of what wondering was if And the priorities to Two results. any, questions. the I good on a be level higher in you in auto XXXX. talk just as

William Lansing

Okay.

X they and auto ago card, did X they a to like did look little year respect businesses those ago, very with change years competitively. So today and like

products our lot of competitors. lot competitive use to not innovation new continue threat, there, a a change not not lot from a of and customers Our just of coming

unchanged. kind really allocation, capital to strategy there change respect So of our With there. no remains

strive shareholders. to our you to we know, capital return As

really like call, years. it believe of to stock now doing do our screaming have to a a single that. buying leverage run balance efficiency efficient back is that we XX We We why for XXX these pretty And you a have it's efficient date, Xx north wonder call. We we still is I've remarkable And but try been -- And value, and think business is pretty PE X between all-time at I stock there. it And have to and every with been an calls good stock? are model. some seems people level to say and manage sheet. to our our a try of your still high, a very

We continue. expect that to

stock buyback. to flow some and We have our returning through free intention every cash then shareholders of

Operator

comes Clinch question the from of line Redburn next of Our Simon Atlantic.

Simon Alistair Clinch

an U.S. perhaps think you some your implementation it's the was the being in -- the really thoughts of around of delayed FHFA's or of was any anything if probabilities around in wondering day very to I quarter. in issuing wondering, give that or proposal you Do be would really earnings and important I changes quite that canceled terms fourth well, thoughts either this And could the proposal you around useful. be could

William Lansing

cooperating on X change doesn't way to there we do. likely a implementation wonder just administration thing, can the I every happen. just think have. are because know. secret a knows still what plan. don't to to be could bit them that longer with been new really might a They it's move see in expected The that than it But sorted same one to a telling them, things slow there's -- a might otherwise and be things no scenario. probably I working most no say. has Maybe it's But with direction, the they hard industry some take That's have little FHFA the there We're think the We out. has

Simon Alistair Clinch

sort of Okay. customers just software more that, That's provide where financial the behind useful. just financial just around on distribution -- color and just are then, exploring the just you expanding And bit little are your in you follow-up with terms could large as a your you of a where please? investments beyond business,

William Lansing

we're going with ecosystem, working upper at Yes. There's I a we're end at few the the partners. that. ways mean, of

one, TCS with and of I number number other with a we're have conversations So was deals but partners. mentioned a in

they for us have apply have systems So can skills, solutions have distribution, and they take they customers, verticals. have into big in they verticals. And they that, IP get it very domain other are provide other expertise our partners they to natural the integrators, these and to

clearly diversified And for a into that's efficient so to kind get markets. of us way more very

leverage our flourish. little from with And our see resellers to run, IP really but the The the more going which model self-service like that and call it where take platform to other that and and wouldn't a APIs we're come very on, ISVs VARs thing think we opportunity quite long open self-service model, focused is, have and is I have to we'd intervention in I a and longer us.

that's to a have I that to facilitate We we've going build. take think built this. But marketplace to time

Operator

Wolfe Our next question Wurtzel Research. comes Scott from the line of of

Scott Wurtzel

know good. see bookings a step-up And bookings I seasonal of that that was still ACV distorting the quarter little on Just XQ. the sequential wondering, we any bit? into usually historically, trend third trends. to number pretty first there I from maybe pull one the was a XQ thought But forward just is maybe

Steven Weber

you year. was at combined reason happen Typically, it fourth third our there's of lot does and take, the is fourth seasonal if last the mean I our trend. as year, times higher. quarter really or Yes. for number, a a give look third same fourth quarter quarter and this But that exactly no

some deals probably quarter. pushed And and year So the pull on last deals some the our year third into that fourth there been from third from some quarter was this quarter. fourth forward have

So way. any at that it's specific look really hard to one quarter

Scott Wurtzel

understand then if it. maybe in just Got growth year can us expense guidance, as helpful. thinking your And That's about a fiscal help and on just wondering how investments you're 'XX. you follow-up,

Steven Weber

Yes. into guidance said, But rate see we expense you built of -- kind you looks a see expense it built you we When saw the growth as elevate numbers -- our 'XX. all the than into growth like. is if what lower basically, in we that's the you what gave

then as year some got year some as last kind for happening and onetime things this 'XX, of we non-repeating in well. paid benefits We have both we onetime some

what but revenue the So had than it's what this And growth. expenses, growth there's line our then top less it's some less built year. than into we

we then that margin of in guidance And decent we'll margin. if that. expansion to year, usually in out comes So throughout if [ we're -- a able beat line ] pretty the get

little So as profile additional with much expense well. that bit would comes margin there's of at a growth come a revenue, that higher but

Operator

question comes line next Partners. the FT Andrew Stein from of of Our

Unknown Analyst

some the trends was closer September you within just rest XX-year the provide of when one of at Could X% question quarter? the I mortgage relative the have volume to to tonight. color on scores least in the back half

Steven Weber

at. I than we publishes. realtime look for Yes. best that for That's data actually just source what That's is the more see. what at numbers the look we actually that mean the NBA

really a on it basis week-by-week can't track like do. we So they

see push first would the we rate And that, it's upticks all. we then little of you came and did any -- we saw to down I to So when saw it of draw of from that. bit. trend much some hard a But really a slow down

guide forward. conservative So we very the with we're going we're -- obviously, way

Operator

Kevin comes McVay question UBS. next line the of from of Our

Unknown Analyst

a occur the with I pricing, much us 'XX anything 'XX sense is directionally? into anything XXXX and give guidance factored phases, already you in the of that how of the 'XX that's that the And didn't guidance? 'XX there sense any into is factored that just how Could of just 'XX maybe more guess, broadly? in from

William Lansing

Yes.

that One runs goes on there. but each the X, X things on our fiscal new think X going to is I from the year into October effect XX. pricing Jan September

of have mentioned other, it. there's obviously, deals. earlier, then X-quarter the pricing And so pricing when the is multiyear lot one a Steve the that's our a So influences discrepancy as and partner in gets, customers that factor channel --

from the -- so years. when and we prices they And honor prior do,

affect that thing And another can so relationship. that's that

Operator

our conclude Thank Thank for gentlemen, our conference the and that you. and for Ladies Q&A today. call of portion participating. does you

disconnect. You now may

Fair Isaac (FICO) 6 Nov 242024 Q4 Earnings call transcript