Fair Isaac Q4 revenue slightly beats estimates on B2B scores pricing

Overview

• Analytics software firm's fiscal Q4 revenue rose 27% yr/yr, slightly beating analyst expectations

• Non-GAAP EPS for fiscal Q4 increased yr/yr

• Company did not provide fiscal 2027 guidance due to mortgage market uncertainty

Outlook

• Company is not providing fiscal 2027 guidance due to mortgage market uncertainty and pricing transition

Result Drivers

• B2B SCORES PRICING - Co said 39% yr/yr growth in B2B scores revenue was primarily due to higher mortgage origination scores unit price, partly offset by lower mortgage originations volume

• SOFTWARE SEGMENT GROWTH - Software revenue rose 19% yr/yr, with platform annual recurring revenue up 72% and non-platform ARR down 18%

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Fair Isaac Corporation is $933.50, about 28.9% above its November 3 closing price of $724.38

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 22 three months ago

Reuters Recommended Reads

• Nov 3 - Dynatrace Q2 revenue beats estimates, sets $1 bln additional buyback

• Nov 4 - Datadog beats Q3 revenue, profit estimates

• Nov 3 - Freshworks Q3 adjusted profit beats estimates on upmarket momentum

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)