- Fair Isaac ( NYSE: FICO ) stock gains after Q4 earnings beat .
- Software revenues grew 5% due to increased recurring revenue and Scores revenues up 6% driven largely by unit price increases and increases in card and personal loan originations volumes.
- Software Annual Recurring Revenue was up 9% Y/Y, consisting of 52% platform ARR growth and 1% non-platform growth.
- Software Dollar-Based Net Retention Rate was 107% in Q4, with platform software at 128% and non-platform software at 100%.
- “We had another strong finish to a great year, posting strong growth across all our metrics,” said Will Lansing, chief executive officer. “We are also pleased to provide double-digit percentage EPS growth in our 2023 guidance, which again demonstrates the remarkable resilience of our business model even in a turbulent market.”
- CFO comment: "We expect to grow revenues faster than expenses, it's kind of that simple. And we have reduced share count by such a degree that the EPS growth is going to be faster than net income growth."
- Goldman Sachs boosts its price target on the stock to $614 from $541 and maintains a buy rating.
- Barclays analyst Manav Patnaik raised the price target on FICO to $575 from $535 and keeps an Overweight rating on the shares. The company issued "strong" fiscal 2023 guidance above expectations, Patnaik tells investors in a research note.
- FY2023 Outlook : Revenues of $1.475B vs. consensus of $1.48B; Non-GAAP Net Income of $487M; Non-GAAP EPS of $19.42 vs. consensus of $19.55; Recurring tax rate to be approximately 25% to 26%.
- FICO gained more than 35% over a period of one year.
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Fair Isaac gains after Q4 earnings beat and strong outlook