FICO - Earnings call transcript Q1 2025

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Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2025 FICO Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, David Singleton. Please go ahead.

Dave Singleton

Victor. Thanks, thank FICO's and call. quarter for you afternoon, first attending earnings Good CFO, Dave Investor CEO, by our of Vice Will Weber. and and I'm President today Relations, Singleton, I'm joined Lansing; Steve our press Today, year. prior release we issued that financial to results describes the compared a

to statements many management of such actual quarter the in is Litigation the with Information presentation statements filings. in an risks Those involve that On filings business. risks the could this of particularly in are with uncertainties the XXXX. of results concerning risk this under and Act cause Securities also factors Certain Reform and will contained uncertainties call, understanding the company's SEC, materially. in forward and the to results forward-looking of discuss comparison differ the portions prior facilitate rate Private these looking run statements made

website team. issued statements these comparable Copies the company's measures from a are our financial FICO to schedule refer and non-GAAP also earnings of each include reconciliation most from for non-GAAP from to will the release Relations GAAP Reg the available regarding the measures. Please call G or today measure. Investor financial certain of SEC, This

of Lansing. will are XXXX. our to webcast release fico.com XX, the replay the Investor company at will Will earnings or website February available website be turn through I on Regulation The this G Relations call and A CEO, schedule sec.gov. at the available on page of now the over SEC's

William Lansing

financial announcement. quarter guidance. had the for this 'XX website, of Investor referring we quarter thank our call. reiterating fiscal and we've highlights In and We first earnings will that our everyone, our during you, be for section strong us slides to Dave, another are Thanks, posted some joining Relations earnings

in GAAP Page in prior in of up year. the XX% X share, on $X.XX non-GAAP income quarter, XX% from $XXX reported prior highlights, XX% $XXX GAAP million net X earnings We share, non-GAAP in $X.XX reported million and reported million, the per quarter financial from the $XXX the of year. and per XX% first last of XX%; of up income revenues earnings we year. net shown the quarter, up We up As quarter over up

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

our segment, January. quarter presentation, an shareholders We shares XX% were prior to on We million, Scores in up first and through repurchased quarter continue X In X our of Page to $XXX in revenues year. versus shares the XX,XXX return XX,XXX our the capital buybacks. additional

versus pricing side, increases. BXB X were prior volume originations year, revenues primarily mortgage and up the by quarter driven from the revenues both On XX%

On revenues up indirect prior the BXC partners. the were channel X X% revenue primarily from year, versus quarter side, driven by

personal loan quarter Auto mortgage up XXX% originations XX% while were X% versus credit the Scores down the and origination and First XX% were revenue other BXB revenues up origination year. card, total of revenue Mortgage for versus accounted prior year. originations revenue. of X%, were prior revenues revenues

data. Buy This conducted Affirm. that Now lenders Score we Later credit when study Buy of also applying some inform data bureaus. to responsible partner, consumers, innovative release study while That Later loans increase improving drive model The week, a Now that FICO's helped our risk FICO inclusion study treatment to on performance for for a issued we with the Pay the press concluded furnishing loan of the could Pay

scoring to soon. proprietary treatment more way we'll best details of this stakeholders currently the credit with working sharing to We're to marketplace, our data the be identify introduce

non-GSE mortgages. strong continue drive for adoption FICO of We Score XXT to

Marketplace, asset the MCT This quarter, exchange secondary trading the U.S. for loans utilizing largest FICO market. began mortgage on Score XXT

In Score loans mortgage clients billion of for FICO quarters approximately over and trillion powered with $XXX I'm portfolio government for issued XXT that mortgage some first already these eligible investors. ahead. decisions by proud traded have servicing security signed Score featuring addition, in originations continued to the We credit with Cardinal look XXT. forward for in FICO to XXT FICO firms securitization now mortgage-backed adopting formed the to strong progress annualized $X.XX Financial have up in and and make achievements and delivery

requirements. FHFA a implementation specific conforming score to FICO the based no GSEs for time for on enterprise January, the be mortgages the out of it sold the line the announced rolled of will FHFA's XXT In credit line has time longer implementation.

X segment, Software rate impact. was revenue, quarter Revenue revenue, by growth X% $XXX up in increase offset software delivered and exchange our year. the last we mainly license in driven SaaS million foreign partially by from In

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

ARR on X, XXX%. and the growing ARR shown Total platform up total with X% non-platform NRR platform Page was X, shown ARR As quarter XXX% X%. non-platform and the Page with XX% at for of was NRR on XXX% at

$XX.X a ARR. X% million in year. Foreign million prior on compared exchange impact X% negative on of total platform ACV bookings had the quarter the to for and ARR were $XX.X

forward. continue drive software to business We our

partner scalability channel helping building platform and capabilities, new Marketplace our improve adoption, investments are to realization cost FICO progress Our FICO development of structure.

to We be our continue innovation. for recognized

Technology scams. The Customer anti-fraud was Credit and Awards. detect signals at quarter, uniquely Service, This FICO the uses to to Communication Scam best potential awarded Signal, solution which was the solution given award telephony FICO Collections

technology Our governance award award and Category Product at innovative of tokenization won a Software responsible BIG tech the Awards. and Transformative blockchain for the Innovation Banking the yielded the future using Awards Tech at AI model blockchain work

share be to FICO scale. Our practices customer At connect, event, best event, how organizations to software Hollywood, which in connections this business May. display bring World professionals take at X-day year Florida industry around in from will the FICO power world together at will learn and this place we'll on enables

clients better I'll scale. highlight demonstrate provide power successful now analytics composable financial over enabling pass platform. the it companies to at of operationalize FICO to decisions further and and to details. Steve become more We'll make

Steven Weber

and Will, everyone. good Thanks, afternoon,

mentioned, Will revenues, pricing year. with over revenue Scores total an had volume As of quarter good XX% were revenues million, said, mortgage we $XXX by XX%, XX% prior as year. segment revenues from million, up the for and were primarily the driven from increases. of increase prior both the quarter another $XXX Will up originations BXB

partners. X% Our the to due were prior indirect BXC revenues increased up our from year channel versus revenue

quarter X% by rate impact. up Software exchange segment $XXX from year, hindered million, for were the revenues the foreign prior

year-over-year software XX% declined XX%. revenue SaaS while professional grew services and On-premises

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

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

QX Our XX% total $XXX total ARR of XX% was Platform year, our total ARR was and million, 'XX was prior ARR versus Software this million X% of up million, quarter. $XXX year. prior the grew while QX a $XXX representing XX% grew up XX% ARR Platform and increase X% over 'XX ARR. to the from nonplatform

ARR. ARR of had a reminder, and foreign on on total X% impact exchange a X% platform negative As

of our focus continue expect platform to platform non-platform we products. those to growth nonplatform time, retaining We migration customers. while customers on FICO do Over

land platform continues to expand Our be strategy and successful.

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

bookings year. ACV compared software to $XX.X were Our the in for quarter prior the million $XX.X million

quarter Page the X World shown to on of an expenses as expenses will the our include $XXX versus operating for the Total increase our presentation. of throughout million in anticipate again quarter, which this for third costs prior X.X%. now $XXX quarter. We year, modestly million increasing Turning highlights financial FICO in the expenses quarter, were

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

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

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

prior The up tax was X.X%. share XX.X%. GAAP for from XX% rate XX% year, share prior up the and The effective $X.XX, the earnings our quarter was quarter $X.XX, were negative from the earnings tax non-GAAP operating year. per this per rate were

tax employee stock of includes from $XX expense quarter tax tax of or the settlement for excess effective reduced exercise million the awards. rate benefits The recognized upon

a As our benefit does tax not non-GAAP impact reminder, excess net income.

an cash XX% net quarters, recurring same around $XXX quarter over For and prior increase cash tax year. the expect rate the the increase the XX%. will for we quarter X period. the be effective flow will full from which year, million million, flow over was was last XX% XX%, our Free tax of around was Free be rate $XXX last our

the quarter, had cash marketable At and end the million of $XXX we in investments.

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

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

an per We We review an per XX,XXX average $X,XXX of an return cash. at share. share of share. of to first bought of shares shares XX,XXX average to January use as attractive price capital. price back Turning we continue the at in do in And quarter additional purchased $X,XXX repurchases an

comments. to his turn With closing back I'll that, it Will for

William Lansing

fiscal execution year remain our consistent. macroeconomic remain confident and The guidance but provided in Steve. this We're well we Thanks, environment last remains for and the quarter. positioned fluid, strategy

be and Software best-in-class. continue Our businesses Scores to

are help second program, engineering are our the customers technology. through year that solutions encourage with Our time. marks Analytics in their executed FICO Software data-driven 'XX created Educational was to the science, by them Fiscal which students composable in real ability end data delighted interactions and customers Challenge to optimize of

FICO cutting-edge our scores partnered and to we communities. global Lenders lenders to to in with detect are for Leading data our analytics alternative hands-on program we've learning underserved they to our expand access Initiative strategies and develop this This responsibly through Financial To business, universities. inclusion fraud. can credit date, colleges so Scores Inclusion experience year, In getting AI expanded program. financial provides X Inclusion students models

we're innovation and an the data mortgage changes launching to applying talks enables professionals event with Score by to scenarios simulated to to FICO report credit potential side, in mortgage resellers applicants' applicant's which run changes close our simulate the On simulator, FICO Score. in credit

Dave, open and back the turn we'll I'll to up that, Q&A. for call With

Dave Singleton

concludes our This Will. prepared remarks. Thanks,

We open are questions. ready please Operator, the line. now to take

Operator

of Patnaik from first the [Operator Instructions] come question will Manav from Our line Barclays.

Manav Patnaik

talked a talk question. just I about big bi-merge in new in They've the of Will, you there's a the director the the got had And out GSEs pushing privatizing. FHFA picture on scoring. directives there,

at of Any the around think broad status impact the you would Just you be changes, helpful. these GSE do color FICO how to look of do any has Score? privatization kind that

William Lansing

the FHFA a really an indeterminate by decision of T-score is implementation the system the to push bi-merge Sure. and out so Well, to date not surprising.

I think this the in make ready that is the believe industry industry everyone not to move.

really of not there. so surprise a there's And lot

I it's they that FICO to With we're GSEs in Score respect important investors. think using had Score, to pass the to GSEs, conservatorship, then that the FICO selected evaluating securitize the the entered before and ever and recognize the they paper

paper And we you the with fundamentals, see whether present whether don't knows so the a come And potentially a way that for time. to through -- understand government of conservatorship more FICO Score really who of GSEs. In if go mean the I the best continued risk is less that world the we change. they're changing, the and which is obviously, would, buying. a not. world out involved then GSEs But or see that's the really don't the investors the in to in in back will or lot which they --

further out the where I And strong the would that involved, score. a of we market, is government share point market efficacy every because I the have guess other not very in of

of saying lot of change. way long a So not a

Manav Patnaik

Fair And the you if just can Will, enough. I then, Software Okay. business. on ask

XX%, rate the expecting I is you in to quarter now timing-wise, there thinking the and in think can you bookings growth if talk we were or Was should now about we're about? be be something ARR the XX% just XX%. new talking

William Lansing

it Yes. glad into out. -- It's I -- particular any you I That's pointed read too quarter. -- wouldn't I'm much don't

really, we some bookings But it This we is exchange. the fact in and through biggest that got little foreign bookings quarters driver the quarter, dinged a weaker with past. had bit flows from the

or kind about in for trajectory We haven't business, XXs, long-term view XX% the which the our platform growth is revised of the so.

And into number. too so much read I wouldn't quarter's this

Steven Weber

Manav, we actually even back Yes. accelerate in ARR do in expect And coming the quarters. half to the

first said, significant we Will by again, So in lighter got FX, Brazil, impact this had going we quarter. couple be and had bookings knew that then the this we like was of a quarters a pretty the year, particularly quarter the hit to weaker because, last

Operator

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

Jason Haas

about in quarter know now how I'm I'm holding question XQ if in? curious conservative curious And I'm the was could but if less of expectations? came coming results fiscal genesis talk you it's to you're versus curious, this the the is, prior your I of it than guidance, the any

William Lansing

really Well, I would we're that surprised. not say

around know, As we our internal provide market view, interest guidance, I conservative rates built conservative we and that. was than think that our general view more you guidance on and the

for right no we're now. change in to really terms guidance, our what seeing surprise and So no us, of

Steven Weber

seasonality came business. in to our that. would according I We to there's of just Scores the a -- And Yes. add to lot mean, plan. pretty this I much

year-over-year versus the a first quarter, So on makes a if at our sense. it versus it basis lot quarter you fourth look of

in What's but know with to lot and QX, expect to terms of things quickly. didn't environment, what's current of happen QX rate happen this farther harder it's a going we out, the to

So this in what expected. we came with pretty line much

Jason Haas

That's new you calendar or the -- talk scores? curious -- elasticity prices as but of any year, started we're in was the mortgage of auto helpful. in new could scores seeing put for and if to the I to to sense it. pretty also you're Got put the you've start early know I

William Lansing

and but is for real XXXX everythings' Well, socialized I gone as mean just it issues. we expected, the and have very pricing early, no

Steven Weber

point. see don't any this really elasticity at we Yes,

Operator

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

Faiza Alwy

you're just that color and I follow you're more Software to question Do back expect you to confidence a driving the bit that confidence? platform a wanted ARR traction. us of Give your on bit more in And just more up on on new getting usage? business accelerating sort Is XX%. expecting? color where increased there a what's

William Lansing

Yes.

moves suggests kind part what of it That question your the The around we usage, so And on of depends do. answer. customers equation the control. don't obviously and the

quarter, And particular this so we usage. lower had

and of predictability, And flow-through have we bookings. in of do range, accelerating that's confidence into terms that a back do XX% In direct confidence. have the from the we rate because

ARR the look growth future. bookings the that what know we So driving in like we'll be

And have so we level of confidence. high a

Steven Weber

goes Yes. live. when between there's piece timing I mean something when and a is booked it

to at that when then have go we live advanced things ARR. -- see we So will point can and what will turn

some off. So of and the pretty those few last will when we the have -- good for we've bookings, strong had we've a quarters, and roll when idea live will go ARR

the idea to is So they deals from deliver. forecast, go the but the kind going as said, we we but that what when have piece, pretty Will of ARR signed, harder understand, will they're or -- a good of that to live, usage it's

Faiza Alwy

a as business. Scores just on then And Understood. follow-up the

for bit seen the up I'm the what's given we I embedded verticals guide, fact year? this think rates more go volume in sort us across in a curious terms give you November... of of the mentioned that color mortgage. just higher you in have what of if back between you're expecting on volume can Sort

William Lansing

our I would all could our a future. the We We down. a the coming ask know will come in interest up XXXX. -- balls. don't know guidance not same that the I We can you as tell direction they'll view We that know much down. crystal we when will volumes when about don't come result around built you of them question come don't rates really what down was have go. rates

us. the reflects And down playing are come and they that benefit things if the year, for If roughly expected. a we half will tremendous we're far, that way the so for be our prepared that. don't, of guidance out in And back rates

Operator

the Our question Jefferies. line will next Surinder come from of Thind from

Surinder Thind

related the question, it in particular on mostly clients. like platform the up ARR just slowdown NRR looks Following was it at a to

how slowed should messaging of was that? the is down? revenue percentage So about and just what is Or characterized... usage kind it of just things here, that we Like think predominantly

Steven Weber

of it usage. lot A is

are some they have in can it's of bit some through. it have leaving. flowing quite you're to the things customers down quarter quarter. they for some piece our products, time. have customers usage turned of to to a And But absolutely bookings We of didn't happens vary right. money, cases, is is the usage. now some end year the that that might churn. mean Yes. lot -- I We calendar So lower We some usage. at time didn't save A some the of had But from which NRR

of seasonality some around of that's is. pieces the So what usage their different

of And will we lot that then drove and a come the we've returns that a expect So expect of that. also form new already what live. lot business that's we really to sold

Surinder Thind

Got it.

-- get to like So double kind right? there's what usage bounce a the back then of normal effect returns if there's it here, sounds is you'll Because bookings....

Steven Weber

Yes. Right. exactly. Exactly,

Surinder Thind

fair And little the And XXT the then in in at that? with on any be with And enough. between that we we as FHFA and aware longer term? or the not have adoption. then think a considerations about maybe a bit XXT, that FICO conforming, it implementation. terms FICO certain should about talk are of of kind number that time of going going securitization non-GSE other contrast the the top delay and market entities this a XX one more we you obviously, the Because usage path. here Can being then bifurcation Does of terms path, from sounds the line then down be like down just the in there's classic for may T implications but suspended of that

William Lansing

question. interesting very a it's mean I Well,

little predictive the score the the pretty in better. historically of years they're market with what use XX what in it provided mortgage highly have associated XXT and has is the it. buying well. community really with to It investor a Classic good works And FICO that's that FICO been risk is you really, a a for is score. think sense bit I with start

Some better. bit would a say say bit would some quite little better, a

sure I'm it prefer the it's sure classic enough better. from -- Score. little We're FICO better very who XXT get that better that a different we I'm whether you not it. customers are that the not a difference much have from lot answers or makes It's

portfolios. -- used And so in community about I both is issues. don't no real with be being score and will those imagine used agita investor tremendous imagine the securitize they to which I

Operator

will question Owen line from next Oppenheimer. come of Our from the Lau

Kwun Sum Lau

So go back in next strong the you about going ARR you drive ACV was accelerate the expect please talk also to pipeline and quarter. of it Do or quarter bookings, first bookings over the also forward? Could this to outlook so? high to the

Steven Weber

be mean, we don't we honestly, Yes. bookings as good, number. again, really good quarters because bookings. But strong -- be that have I quarters will pipeline. There won't in some volatility have of some will a have thousands we

large, number, fairly can them We have of move they a some from small and are quarter-to-quarter. and pretty

lot still what about numbers a put it's quarters. We in out products. a interest expect there pipeline, of hard still we have these couple of strong there's but to hard the So next in

move terms good We year, last in we're quarters every up for of ARR. that But bookings. think impact year there's X that's as in and quarter, But with, some through we an happy have again, have the quarters, volatility to really we the that. put going we'll a year every X

Kwun Sum Lau

color that? here? say, you from And the you more expense here. quarter in first think on let's expense in be there of, will you color increase then up add much the FICO please terms runway can I from quarter, will side, Got mentioned add go on from how it. more Any And World. the third could

Steven Weber

yet if in Yes. But things gave model third quarter. adds there's guidance million It's quarter together are significant. we no that. second probably that put $X World to FICO with change a you $X in some our there are The we that all not you, And won't that the see nonrecurring. million, our

But won't like we the are expense things from year. there type any function throughout along to So to step material time. that have increases come time

Operator

line from come from Our the Peterson next will Needham. Kyle of question

Kyle Peterson

allocation. capital January -- I It started the kind did seem does amp wanted pull back. when to like you to full start of up guys the buyback in the off or on stock

up. think appetite results be guys to we guys you you should if to guess, that I the off stock do having about to the highs have the So continues despite continue put

William Lansing

indicated in stock Yes. FICO on know $X,XXX, our look, time, of maintain kind our try think to in not we -- of a timers. try time $X,XXX we've in value comfortable $X,XXX be great you or sure we're view use with our flow regular $X,XXX or we're purchases cash all market did And fullness at last the the a level. to the the really we We this. what at Well, kind leverage of and We market up as is quarter.

stock size that the when open should ability the sometimes ramp we up. and on we a we purchases, said, have have we lot so do our dips, to the that up That choose authorization do to

value way it's appetite a more. the kind pretty of have We And it a where of saying, believe stock. good for we So long yes, we in is. think

Kyle Peterson

helpful. Okay. a on guide. maybe That's And really follow-up the just

think November had worse, you like did looking walk mortgage I you assumption does the more at incremental obviously, when last seems reported conservative softness. It you guys other us guess. environment there when you through, are I that helped than to of mortgage the I a be a little or offset mindful guided? Could pieces the guys you guess, have moving guide. any reiterating Or offsets now, look guys guys are from of in just maybe market should we kind

William Lansing

together of rates things. likely 'XX anticipated more we a it's a at combination out I rate of One the when months of X think market. I we're Certainly, several ago did than we is guidance optimistic the our the the get. people than conservative put in cuts think time lot put guidance more really have a view less to future we view, a there,

numbers. you I of have wants management hit that, that its would to a always is part of then it. team that on say top So And

it make And we're haircut our and do to in. come we'll We'll best then we conservative. sure estimate, so

that. it's a conservatism and view then And on top so listings. we had We of more conservative both add the

Steven Weber

And I look you guided expected -- multiple is 'XX, this rate that did we year. cuts mean the -- this is back, think consistent, people mean, and I in people never happened. last And right? same if pretty numbers we Kyle, I thought

So we for not something plan going where a situation not on we're hasn't that yet. count to -- happened we're

here. So we did same the thing

So frankly, were better we're our first I quarter probably in far, we conservative. probably had so what did than mortgage mean, we our guidance so because

plan you when as it thinks if not the you you as little way, that to So upside gives of out might are be. turn guide that way and a bit things world they even rosy what

Operator

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

Keen Fai Tong

your and quarter. X% some loan personal about revenues, the year-over-year talk trends Can that in With drove you were they this the decline? card of down

Steven Weber

consumer mean I lending. of of There's kind pullback what it's in kind Yes. a you in little a bit the of see industry, right?

you the also see numbers, underneath -- our have some We might shifts. mix

a are higher lower unit hit that unit some of that bigger than cost the a paying users So are of cost. the harder operators paying little some be might

X% is seeing the industry. with But yes, line of kind you're what in in

we in that verticals. multiple lending. I think terms quarter there's banks seen -- And I anyway. a typically conservativeness among a been lighter in that is the think of We've

Keen Fai Tong

some the of can to mentioned higher back catalysts usage going the that then key levels? And more color. helpful about quarter. That's seeing platform in Software business, lower usage you you Can it. the drive talk Got

Steven Weber

that saw they things. some it typically, the mean back money less might customer. or think cases cases, of number business. seasonality sometimes it on said, cases, we different I this to that be of mean reduce by a what was to don't some But depends quarter could in And and some -- some on they of much depends that lot the I in -- of a a I -- There's the over is usage usage. in be like some the customer. customer those in some little as just I CCS a is there was they there's holidays save platform, things. on if of little bit pulling might there receptiveness bit mean messages

William Lansing

use -- product the of has different and customers the them That George, have the not fraud varies go you some out remember, And fraud, a both. and collections, some CCS case. use case differently year have collection as some a of

how So the those into all up. play users go back might factors

Operator

the Our line Baird. Robert of W. come from Meuler next from Jeff question will

Jeffrey Meuler

us ACV help typical kind bookings just component. ARR. typical the But Or mapping of I flowing the of time ACV kind of like the get this there's just the for like into understand QX you Can 'XX what's are line now? ARR into bookings that usage it timing? QX,

Steven Weber

running. mean typically, I X Yes. and months and it varies. least But before more like and probably X implemented it's up months they're it's at XX to

coming online now. that's the you're we So less year, stuff in had that right we that means going that And then of last year. bookings to have fact had last the new the a early we last year, result had lighter bookings

So the year for bookings we've growth. the bodes well more latter quarters, the in terms this of that ARR that that last done -- couple have of of half in

to the X- lag there's between X. So X-month

Jeffrey Meuler

headwind, for FX pretty year-over-year the quantification of can what different think was like it well, we is -- platform did you ways, been just sequentially can asked you us And a points how also ARR to platform. sequential sequential? get you X or I I it. in Was this that but you've know said ARR Got a can if million And but it platform of sort change. usage trend or is driven much with -- striking revenue by just the any of help the that help

Steven Weber

Yes. basis. currency Well, a constant that's on

versus the ARR changes this of not quarter we FX, have would had had So if had extra to we year. X% an last

Operator

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

Ashish Sabadra

X had questions. clarifying I

the look First but X those improved origination the compared BXB mortgage, fourth auto card the revenue, and BXB. on year-on-year overall quarter, moderated. at When revenue to we

if Is just or was scores? within So on that there it some softness? comment you stream wondering BXB caused revenue what can I prescreening other

Steven Weber

you or -- talking you're QX about sequentially? QX to QX, Are about talking

Ashish Sabadra

Yes, the if you year-on-year growth. at or Yes sorry. look

Steven Weber

restate maybe the I'm what you question. not it's you all up. sure -- what the I'm year-on-year -- -- was just sure not can

Ashish Sabadra

Yes.

look improved fourth at at on I if I in moderated card improved, growth if XX% from first the to the originations, XXX%, growth look pretty -- it XX% moderated it mortgage was year-on-year quarter those revenue But year-on-year, robust growth, BXB up from XX% to auto quarter. So in improved. but

Steven Weber

The origination not and near business not There's pieces I as So what a some XX%, of piece those pieces talking the about grow you're significant the mean, I'm do. don't right? fast it. of anywhere as originations, sure that's

very lot lot The total BXB that some a of business, business like But account grew the the the pieces things rapidly, was prescreen growing year-over-year. are international pieces of management and rapidly. but up not of XX% the a

those pieces might drive in year event one growth of extra in with have we fluctuate can that if a a particular quarter, this for anything So but few that quarter. have percent didn't onetime we this customer, foreign license like a that

Ashish Sabadra

That's for understand the from of any helpful. to the we and better if of modeling as Yes, cognizant other there rest Okay. look be just to we perspective, takes were year? trying a are puts

Steven Weber

add here when million onetime that but predict mean quarters, or be there's some percent a But of to dollars, lot could hard -- of always, license a those I deals always some going to few are little those could No. there. a and couple not happen. we they're have

those predictable the really, at look most So modelable bigger are a probably around numbers have to originations, or impact. and most

Ashish Sabadra

forward? the It's a And in should you of quick you're about if good see the to I some helpful and think how color. that one was that seeing we myFICO on wondering BXC. very growth That's growth talk could on going trends maybe inflection about there. just

Steven Weber

during and on lot all had the year. And certainly, comps. excited and We're the that done our a some see in growth myFICO right takes Yes. investing It the -- we of that and time was last doing quarter. some had I now seeing investing boom We're of doing strong BXC And there's we about we lot think obviously, some we're talked cleared room really, of really do And we're on growth we're to there. call different and mean difficult we've growth kind investing, this this throughout happening, the about for to then a that, some we've that. But -- programs. more business, there's -- we of refi lot hope side. a some seeing those. we're we marketing

Operator

of from from line JPMorgan. will Alexander question next . Hess Our come

Alexander EM Hess

JPMorgan. with Alex is This

your level XX% where guide about a XQ. in revenue about growth, So year-on-year consolidated at is which implies landed you

conservative So that not -- guys you that so in guide. you stable and it's that from the are perspective, guys confident flagged

everybody streams trying outside thinking just to call it's are you I of this maybe that on any but know the sort out? square new from? where there of price, comes question So another confidence guide, is revenue would mortgage

Steven Weber

rough mean, to of of normal. volume I really some I even better. of the should much mean, we think of think a do probably a Yes, mean, assumptions that outside have, of were there some of not pricing, I -- We I in there's volumes more return year quarters in terms last -- there lot -- be are if terms there'll

we rest areas pretty year. the where the of have of clearing for confident without going guidance lot our any have we're were there's we going into So a to trouble that not detail,

Alexander EM Hess

just the And and it on Software the was consolidated side, FX to what on then could side? dimension .Understood. the Got specifically revenue impact you

Steven Weber

the Software around all currencies, million. I was in essentially. was think on It it a And it particular side but $X few was Yes. .

William Lansing

for it. I'll look

Steven Weber

get number. exact the back I to have don't to we have . you. Yes,

Operator

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

Simon Alistair Clinch

their is they internally private, capabilities. they would flow GSEs. I wanted when to -- for a FICO to the And it of some potential should just about part go that some back employing that still cycle for There's scenario, the discussion GSEs would modeling sort cash in been the first start of how was wondering, I scoring would if happen. one, all? kind of of And work, play that own credit sort to

William Lansing

the that MV the me the dream. The I United market don't of It's going for a the a I would away I understood is work. have imagine entities securitization world. in FICO the States, investors. the are And these Score. to by mean system we from which risks think know well hard works how mortgage

just away it's which me very in to the from for them supporting the that FICO effective so is analytics so market. for And imagine Score, hard moving

Simon Alistair Clinch

right? be would they They complementary. wouldn't be exclusive, frankly, And mutual

William Lansing

Freddie their has it Yes. case. have It's Fannie place the that right. not It's own always been been and And the score, a models. just

Simon Alistair Clinch

Understood.

just market. a see the the could that magnitude on mortgage did . of mean, volume just follow-up an you give And question, growth quick I useful. you indication That's us quarter? Okay. the of in

Steven Weber

like. No. kind those detail what numbers from can We mortgage comes at look . look don't reporting that. of bankers and out see to that the groups -- you all other But

Operator

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

Scott Wurtzel

and budgets now kind that can Software the go the relative I of on calendar characterize sounds the XXXX. sort turned you positive I environment back demand reset to you're love maybe mean the to would it pretty we've looks, how and of just just But budgets the broader year? are wanted of if environment business. pipeline. like last are demand kind forward looking to I of dimensionalize to how kind

Steven Weber

in products We don't from our appetite see a tremendous change amount side. of for a demand

were we're that applications and budget got point sometimes our that were more of pressure deferred. the think years -- things under I ago, kinds solution

I think transcends the kind of that. nature the of platform strategic that

And affected a It our so for the is customers. But of our we're that it is not customers. decision. strategic not fiscal by high-level environment

experienced of not a we so And have slowdown there. lot

Scott Wurtzel

That's it. a then helpful. Got And clarification. just quick

Scores a down step the Just kind we expenses. with on saw a year-over-year year-over-year quarter-over-quarter uptick in of there margins, notable

be little there to of bit there Just anything that. around around helpful. wondering Anything kind Was context can you . of with a would if do mix? give

Steven Weber

on more There's side. the No. a spend BXC bit little

marketing. doing of the BXC terms a of little So and a doing investment has -- things to different some bit in structure, there and side we're cost

Operator

Our of next from from question, FT O'Neill the Matthew line Partners.

Matthew O'Neill

answered, particularly the asked of and lot and of year. around outlook questions the the guide for A remainder good

could digging forth. more FICO think today in Later may Buy a the integration give develop out a and into a of X Pay Now maybe with and I So of on release that so the a longer-term we done or the little firm us on moment maybe spend of bit study view sort the further on press modeling how and

William Lansing

it. is value consumer Absolutely. you behavior Buy caloric use terms growing. Well, Buy on the Is popular Now, bureaus there and how Now, of have a treatment repayment consistent understanding Pay in don't they Pay The Later, as Later? in know,

data we've extract in ours working a other to elements Buy prediction And along been files into so we of a with see little how Now, the incorporating can the with out more with Score. their of FICO firm Pay data credit Later

that. data about And the you excited data hasn't resided credit can pretty historically time so be future, bring better doing the to we you're or get alternative it. a in in that going decision. will decision, the Any We're file to

great the maturity think our opportunity so how is And it's it's have the that I It's customers, bureaus. this -- a will early across thing. don't days handled be still. for around for us, an data we

we're so that. And working on

Matthew O'Neill

a players the Got other it. volunteered release? And I the follow-up, quick any guess have in the as for invitation in space press

William Lansing

quite working been with while. We've firm a the for

Operator

Thank you. further like closing any questions David over to I'd showing turn queue. the I'm for the not in call the to remarks.

Dave Singleton

revenues. about a on comment on asked FX Yes. just Alex Thank question Victor. impact you, I'll

about It's So Software about revenue X% was for revenue. the number total of $X or X.X% total million revenue. of

today. into kick you FICO Please to earnings to overall, news tuned call our we very on event. everyone, latest up But much. fico.com LinkedIn attending to stay the as keep Thank date thanks, and for World the

Operator

for you the This participation conclude does in conference. Thank program. your today's

day. You disconnect. may now Everyone, have great a

Fair Isaac (FICO) 4 Feb 252025 Q1 Earnings call transcript