FICO Surpasses Fiscal Year 2024 Earnings Projections with Record Free Cash Flow and Strong Growth in Scores Revenue
FICO, a leading provider of analytics and decision management software, has released its fourth-quarter earnings report for fiscal year 2024. The company exceeded projections on all key metrics, delivering strong growth in free cash flow and revenue from its Scores segment.
According to the earnings report, FICO reported revenues of $454 million for the quarter, a 16% increase over the same period last year. This brings the full fiscal year revenue to $1.718 billion, up 13% from the prior year. The company also delivered record free cash flow of $219 million in the fourth quarter and $607 million for the entire fiscal year, a 31% year-over-year increase.
In its Scores segment, FICO saw significant growth, with revenues reaching $249 million in the fourth quarter, up 27% from last year. For the full fiscal year, Scores revenue totaled $920 million, a 19% increase over the prior year. The company's B2B side also experienced strong growth, with revenues increasing by 38% in the fourth quarter and 27% for the full year, driven primarily by mortgage originations.
On the other hand, FICO's B2C segment saw a decline in revenue, with a 1% decrease in the fourth quarter and a 2% drop for the full fiscal year. This was largely due to decreased sales on the myfico.com website.
In terms of mortgage originations, FICO reported a significant increase, with revenues up 95% in the fourth quarter compared to last year. Mortgage origination revenue accounted for 47% of B2B revenue and 37% of total Scores revenue.
FICO also announced an updated wholesale royalty rate for mortgage originations, which will be $4.95 per score for calendar 2025. This represents a small percentage of the average Tri-Merge bundle cost and brings FICO's share to approximately 15% of the typical price.
