QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Yes | ☐ | No |
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2024 | September 30, 2023 | ||||||||||
(In thousands, except par value data) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Marketable securities | |||||||||||
Other investments | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred income taxes | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued compensation and employee benefits | |||||||||||
Other accrued liabilities | |||||||||||
Deferred revenue | |||||||||||
Current maturities on debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ deficit: | |||||||||||
Preferred stock ($ | |||||||||||
Common stock ($ | |||||||||||
Additional paid-in-capital | |||||||||||
Treasury stock, at cost ( | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ deficit | ( | ( | |||||||||
Total liabilities and stockholders’ deficit | $ | $ |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
On-premises and SaaS software | $ | $ | $ | $ | |||||||||||||||||||
Professional services | |||||||||||||||||||||||
Scores | |||||||||||||||||||||||
Total revenues | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Amortization of intangible assets | |||||||||||||||||||||||
Gain on product line asset sale | ( | ||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | |||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Shares used in computing earnings per share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Common Stock | Additional Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||
(In thousands) | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of treasury stock under employee stock plans | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||
(In thousands) | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of treasury stock under employee stock plans | — | — | |||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||
(In thousands) | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of treasury stock under employee stock plans | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||||||||
(In thousands) | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Issuance of treasury stock under employee stock plans | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | ( |
Six Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Net gain on marketable securities | ( | ( | |||||||||
Non-cash operating lease costs | |||||||||||
Provision for doubtful accounts | |||||||||||
Gain on product line asset sale | ( | ||||||||||
Net loss on sales and abandonment of property and equipment | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Accrued compensation and employee benefits | ( | ( | |||||||||
Other liabilities | ( | ( | |||||||||
Deferred revenue | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalized internal-use software costs | ( | ||||||||||
Proceeds from sales of marketable securities | |||||||||||
Purchases of marketable securities | ( | ( | |||||||||
Cash transferred, net of proceeds, from product line asset sale | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from revolving line of credit and term loan | |||||||||||
Payments on revolving line of credit and term loan | ( | ( | |||||||||
Payments on finance leases | ( | ||||||||||
Proceeds from issuance of treasury stock under employee stock plans | |||||||||||
Taxes paid related to net share settlement of equity awards | ( | ( | |||||||||
Repurchases of common stock | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | |||||||||||
Increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for income taxes, net of refunds of $ | $ | $ | |||||||||
Cash paid for interest | $ | $ | |||||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Purchase of property and equipment included in accounts payable | $ | $ | |||||||||
Unsettled repurchases of common stock | $ | $ | |||||||||
Finance lease obligations incurred | $ | $ |
March 31, 2024 | Active Markets for Identical Instruments (Level 1) | Fair Value as of March 31, 2024 | |||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Cash equivalents (1) | $ | $ | |||||||||
Marketable securities (2) | |||||||||||
Total | $ | $ | |||||||||
September 30, 2023 | Active Markets for Identical Instruments (Level 1) | Fair Value as of September 30, 2023 | |||||||||
(In thousands) | |||||||||||
Assets: | |||||||||||
Cash equivalents (1) | $ | $ | |||||||||
Marketable securities (2) | |||||||||||
Total | $ | $ |
March 31, 2024 | ||||||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||||||
Foreign Currency | USD | USD | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Sell foreign currency: | ||||||||||||||||||||
Euro (EUR) | EUR | $ | $ | |||||||||||||||||
Buy foreign currency: | ||||||||||||||||||||
British pound (GBP) | GBP | $ | $ | |||||||||||||||||
Singapore dollar (SGD) | SGD | $ | $ |
September 30, 2023 | ||||||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||||||
Foreign Currency | USD | USD | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Sell foreign currency: | ||||||||||||||||||||
Euro (EUR) | EUR | $ | $ | |||||||||||||||||
Buy foreign currency: | ||||||||||||||||||||
British pound (GBP) | GBP | $ | $ | |||||||||||||||||
Singapore dollar (SGD) | SGD | $ | $ |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Gains (losses) on foreign currency forward contracts | $ | ( | $ | $ | $ |
Scores | Software | Total | |||||||||||||||
(In thousands) | |||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ||||||||||||||
Foreign currency translation adjustment | |||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ |
March 31, 2024 | September 30, 2023 | ||||||||||
(In thousands) | |||||||||||
Property and equipment, net: | |||||||||||
Property and equipment | $ | $ | |||||||||
Internal-use software | |||||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||
Total | $ | $ | |||||||||
Other accrued liabilities: | |||||||||||
Interest payable | $ | $ | |||||||||
Current operating leases | |||||||||||
Other | |||||||||||
Total | $ | $ |
March 31, 2024 | September 30, 2023 | ||||||||||
(In thousands) | |||||||||||
Current maturities on debt: | |||||||||||
Revolving line of credit | $ | $ | |||||||||
Term loan | |||||||||||
Current maturities on debt | |||||||||||
Long-term debt: | |||||||||||
Revolving line of credit | |||||||||||
Term loan | |||||||||||
The 2018 Senior Notes | |||||||||||
The 2019 Senior Notes and the 2021 Senior Notes | |||||||||||
Less: debt issuance costs | ( | ( | |||||||||
Long-term debt | |||||||||||
Total debt | $ | $ |
March 31, 2024 | September 30, 2023 | ||||||||||||||||||||||
Face Value | Fair Value | Face Value | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
The 2018 Senior Notes | $ | $ | $ | $ | |||||||||||||||||||
The 2019 Senior Notes and the 2021 Senior Notes | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Quarter Ended March 31, 2024 | |||||||||||||||||||||||
Scores | Software | Total | Percentage | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Americas | $ | $ | $ | % | |||||||||||||||||||
Europe, Middle East and Africa | % | ||||||||||||||||||||||
Asia Pacific | % | ||||||||||||||||||||||
Total | $ | $ | $ | % |
Quarter Ended March 31, 2023 | |||||||||||||||||||||||
Scores | Software | Total | Percentage | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Americas | $ | $ | $ | % | |||||||||||||||||||
Europe, Middle East and Africa | % | ||||||||||||||||||||||
Asia Pacific | % | ||||||||||||||||||||||
Total | $ | $ | $ | % |
Six Months Ended March 31, 2024 | |||||||||||||||||||||||
Scores | Software | Total | Percentage | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Americas | $ | $ | $ | % | |||||||||||||||||||
Europe, Middle East and Africa | % | ||||||||||||||||||||||
Asia Pacific | % | ||||||||||||||||||||||
Total | $ | $ | $ | % | |||||||||||||||||||
Six Months Ended March 31, 2023 | |||||||||||||||||||||||
Scores | Software | Total | Percentage | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Americas | $ | $ | $ | % | |||||||||||||||||||
Europe, Middle East and Africa | % | ||||||||||||||||||||||
Asia Pacific | % | ||||||||||||||||||||||
Total | $ | $ | $ | % | |||||||||||||||||||
Quarter Ended March 31, | Percentage of revenues | Six Months Ended March 31, | Percentage of revenues | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
On-premises software | $ | $ | % | % | $ | $ | % | % | |||||||||||||||||||||||||||||||||||||||
SaaS software | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total on-premises and SaaS software | $ | $ | % | % | $ | $ | % | % |
Quarter Ended March 31, | Percentage of revenues | Six Months Ended March 31, | Percentage of revenues | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Platform software | $ | $ | % | % | $ | $ | % | % | |||||||||||||||||||||||||||||||||||||||
Non-platform software | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total on-premises and SaaS software | $ | $ | % | % | $ | $ | % | % |
Quarter Ended March 31, | Percentage of revenues | Six Months Ended March 31, | Percentage of revenues | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Software recognized at a point in time (1) | $ | $ | % | % | $ | $ | % | % | |||||||||||||||||||||||||||||||||||||||
Software recognized over contract term (2) | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total on-premises and SaaS software | $ | $ | % | % | $ | $ | % | % |
Quarter Ended March 31, | Percentage of revenues | Six Months Ended March 31, | Percentage of revenues | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Business-to-business Scores | $ | $ | % | % | $ | $ | % | % | |||||||||||||||||||||||||||||||||||||||
Business-to-consumer Scores | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | % | % | $ | $ | % | % |
March 31, 2024 | September 30, 2023 | ||||||||||
(In thousands) | |||||||||||
Billed | $ | $ | |||||||||
Unbilled | |||||||||||
Less: allowance for doubtful accounts | ( | ( | |||||||||
Net receivables | |||||||||||
Less: long-term receivables (*) | ( | ( | |||||||||
Short-term receivables (*) | $ | $ |
Six Months Ended March 31, 2024 | ||||||||
(In thousands) | ||||||||
Deferred revenues, beginning balance (*) | $ | |||||||
Revenue recognized that was included in the deferred revenues balance at the beginning of the period | ( | |||||||
Increases due to billings, excluding amounts recognized as revenue during the period | ||||||||
Deferred revenues, ending balance (*) | $ |
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||||||
Numerator for diluted and basic earnings per share: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominator — share: | |||||||||||||||||||||||
Basic weighted-average shares | |||||||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||
Diluted weighted-average shares | |||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Quarter Ended March 31, 2024 | |||||||||||||||||||||||
Scores | Software | Unallocated Corporate Expenses | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||
On-premises and SaaS software | $ | $ | $ | — | $ | ||||||||||||||||||
Professional services | — | ||||||||||||||||||||||
Scores | — | ||||||||||||||||||||||
Total segment revenues | — | ||||||||||||||||||||||
Segment operating expense | ( | ( | ( | ( | |||||||||||||||||||
Segment operating income | $ | $ | $ | ( | |||||||||||||||||||
Unallocated share-based compensation expense | ( | ||||||||||||||||||||||
Unallocated amortization expense | ( | ||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Unallocated interest expense, net | ( | ||||||||||||||||||||||
Unallocated other income, net | |||||||||||||||||||||||
Income before income taxes | $ | ||||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ |
Quarter Ended March 31, 2023 | |||||||||||||||||||||||
Scores | Software | Unallocated Corporate Expenses | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||
On-premises and SaaS software | $ | $ | $ | — | $ | ||||||||||||||||||
Professional services | — | ||||||||||||||||||||||
Scores | — | ||||||||||||||||||||||
Total segment revenues | — | ||||||||||||||||||||||
Segment operating expense | ( | ( | ( | ( | |||||||||||||||||||
Segment operating income | $ | $ | $ | ( | |||||||||||||||||||
Unallocated share-based compensation expense | ( | ||||||||||||||||||||||
Unallocated amortization expense | ( | ||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Unallocated interest expense, net | ( | ||||||||||||||||||||||
Unallocated other income, net | |||||||||||||||||||||||
Income before income taxes | $ | ||||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ |
Six Months Ended March 31, 2024 | |||||||||||||||||||||||
Scores | Software | Unallocated Corporate Expenses | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||
On-premises and SaaS software | $ | $ | $ | — | $ | ||||||||||||||||||
Professional services | — | ||||||||||||||||||||||
Scores | — | ||||||||||||||||||||||
Total segment revenues | — | ||||||||||||||||||||||
Segment operating expense | ( | ( | ( | ( | |||||||||||||||||||
Segment operating income | $ | $ | $ | ( | |||||||||||||||||||
Unallocated share-based compensation expense | ( | ||||||||||||||||||||||
Unallocated amortization expense | ( | ||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Unallocated interest expense, net | ( | ||||||||||||||||||||||
Unallocated other income, net | |||||||||||||||||||||||
Income before income taxes | $ | ||||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
Six Months Ended March 31, 2023 | |||||||||||||||||||||||
Scores | Software | Unallocated Corporate Expenses | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||
On-premises and SaaS software | $ | $ | $ | — | $ | ||||||||||||||||||
Professional services | — | ||||||||||||||||||||||
Scores | — | ||||||||||||||||||||||
Total segment revenues | — | ||||||||||||||||||||||
Segment operating expense | ( | ( | ( | ( | |||||||||||||||||||
Segment operating income | $ | $ | $ | ( | |||||||||||||||||||
Unallocated share-based compensation expense | ( | ||||||||||||||||||||||
Unallocated amortization expense | ( | ||||||||||||||||||||||
Unallocated gain on product line asset sale | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Unallocated interest expense, net | ( | ||||||||||||||||||||||
Unallocated other income, net | |||||||||||||||||||||||
Income before income taxes | $ | ||||||||||||||||||||||
Depreciation expense | $ | $ | $ | $ | |||||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 * | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Total on-premises and SaaS software | $ | 16.8 | $ | 23.3 | $ | 35.1 | $ | 44.8 |
June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
ARR (*) | (In millions) | ||||||||||||||||||||||||||||||||||||||||||||||
Platform | $ | 107.2 | $ | 113.1 | $ | 132.8 | $ | 152.5 | $ | 164.1 | $ | 173.2 | $ | 190.3 | $ | 201.4 | |||||||||||||||||||||||||||||||
Non-platform | 432.3 | 437.0 | 450.1 | 461.0 | 481.8 | 496.2 | 497.4 | 495.6 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 539.5 | $ | 550.1 | $ | 582.9 | $ | 613.5 | $ | 645.9 | $ | 669.4 | $ | 687.7 | $ | 697.0 | |||||||||||||||||||||||||||||||
Percentage | |||||||||||||||||||||||||||||||||||||||||||||||
Platform | 20 | % | 21 | % | 23 | % | 25 | % | 25 | % | 26 | % | 28 | % | 29 | % | |||||||||||||||||||||||||||||||
Non-platform | 80 | % | 79 | % | 77 | % | 75 | % | 75 | % | 74 | % | 72 | % | 71 | % | |||||||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
YoY Change | |||||||||||||||||||||||||||||||||||||||||||||||
Platform | 62 | % | 54 | % | 46 | % | 60 | % | 53 | % | 53 | % | 43 | % | 32 | % | |||||||||||||||||||||||||||||||
Non-platform | 2 | % | 2 | % | 4 | % | 7 | % | 11 | % | 14 | % | 11 | % | 8 | % | |||||||||||||||||||||||||||||||
Total | 10 | % | 10 | % | 11 | % | 17 | % | 20 | % | 22 | % | 18 | % | 14 | % |
June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
DBNRR (*) | |||||||||||||||||||||||||||||||||||||||||||||||
Platform | 137 | % | 129 | % | 130 | % | 146 | % | 142 | % | 145 | % | 136 | % | 126 | % | |||||||||||||||||||||||||||||||
Non-platform | 101 | % | 101 | % | 103 | % | 105 | % | 109 | % | 111 | % | 108 | % | 106 | % | |||||||||||||||||||||||||||||||
Total | 109 | % | 109 | % | 110 | % | 114 | % | 117 | % | 120 | % | 114 | % | 112 | % |
Quarter Ended March 31, | Percentage of Revenues | Period-to-Period Change | Period-to-Period Percentage Change | ||||||||||||||||||||||||||||||||
Segment | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Scores | $ | 236,885 | $ | 198,507 | 55 | % | 52 | % | $ | 38,378 | 19 | % | |||||||||||||||||||||||
Software | 196,924 | 181,759 | 45 | % | 48 | % | 15,165 | 8 | % | ||||||||||||||||||||||||||
Total | $ | 433,809 | $ | 380,266 | 100 | % | 100 | % | 53,543 | 14 | % | ||||||||||||||||||||||||
Six Months Ended March 31, | Percentage of Revenues | Period-to-Period Change | Period-to-Period Percentage Change | ||||||||||||||||||||||||||||||||
Segment | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Scores | $ | 428,997 | $ | 376,495 | 53 | % | 52 | % | $ | 52,502 | 14 | % | |||||||||||||||||||||||
Software | 386,871 | 348,641 | 47 | % | 48 | % | 38,230 | 11 | % | ||||||||||||||||||||||||||
Total | $ | 815,868 | $ | 725,136 | 100 | % | 100 | % | 90,732 | 13 | % |
Quarter Ended March 31, | Period-to-Period Change | Period-to-Period Percentage Change | |||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
On-premises and SaaS software | $ | 177,180 | $ | 154,584 | $ | 22,596 | 15 | % | |||||||||||||||
Professional services | 19,744 | 27,175 | (7,431) | (27) | % | ||||||||||||||||||
Total | $ | 196,924 | $ | 181,759 | 15,165 | 8 | % |
Six Months Ended March 31, | Period-to-Period Change | Period-to-Period Percentage Change | |||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
On-premises and SaaS software | $ | 345,848 | $ | 299,144 | $ | 46,704 | 16 | % | |||||||||||||||
Professional services | 41,023 | 49,497 | (8,474) | (17) | % | ||||||||||||||||||
Total | $ | 386,871 | $ | 348,641 | 38,230 | 11 | % |
Quarter Ended March 31, | Percentage of Revenues | Period-to-Period Change | Period-to- Period Percentage Change | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
(In thousands, except employees) | (In thousands, except employees) | ||||||||||||||||||||||||||||||||||
Revenues | $ | 433,809 | $ | 380,266 | 100 | % | 100 | % | $ | 53,543 | 14 | % | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenues | 86,946 | 79,806 | 20 | % | 21 | % | 7,140 | 9 | % | ||||||||||||||||||||||||||
Research and development | 40,880 | 40,266 | 9 | % | 11 | % | 614 | 2 | % | ||||||||||||||||||||||||||
Selling, general and administrative | 110,867 | 100,158 | 26 | % | 26 | % | 10,709 | 11 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | 275 | 275 | — | % | — | % | — | — | % | ||||||||||||||||||||||||||
Total operating expenses | 238,968 | 220,505 | 55 | % | 58 | % | 18,463 | 8 | % | ||||||||||||||||||||||||||
Operating income | 194,841 | 159,761 | 45 | % | 42 | % | 35,080 | 22 | % | ||||||||||||||||||||||||||
Interest expense, net | (26,093) | (23,897) | (6) | % | (6) | % | (2,196) | 9 | % | ||||||||||||||||||||||||||
Other income, net | 3,986 | 1,605 | 1 | % | — | % | 2,381 | 148 | % | ||||||||||||||||||||||||||
Income before income taxes | 172,734 | 137,469 | 40 | % | 36 | % | 35,265 | 26 | % | ||||||||||||||||||||||||||
Provision for income taxes | 42,935 | 35,919 | 10 | % | 9 | % | 7,016 | 20 | % | ||||||||||||||||||||||||||
Net income | $ | 129,799 | $ | 101,550 | 30 | % | 27 | % | 28,249 | 28 | % | ||||||||||||||||||||||||
Number of employees at quarter end | 3,550 | 3,320 | 230 | 7 | % |
Six Months Ended March 31, | Percentage of Revenues | Period-to-Period Change | Period-to- Period Percentage Change | ||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||
Revenues | $ | 815,868 | $ | 725,136 | 100 | % | 100 | % | $ | 90,732 | 13 | % | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Cost of revenues | 170,407 | 156,375 | 21 | % | 21 | % | 14,032 | 9 | % | ||||||||||||||||||||||||||
Research and development | 83,515 | 76,899 | 10 | % | 11 | % | 6,616 | 9 | % | ||||||||||||||||||||||||||
Selling, general and administrative | 215,196 | 193,153 | 27 | % | 27 | % | 22,043 | 11 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | 550 | 550 | — | % | — | % | — | — | % | ||||||||||||||||||||||||||
Gain on product line asset sale | — | (1,941) | — | % | — | % | 1,941 | (100) | % | ||||||||||||||||||||||||||
Total operating expenses | 469,668 | 425,036 | 58 | % | 59 | % | 44,632 | 11 | % | ||||||||||||||||||||||||||
Operating income | 346,200 | 300,100 | 42 | % | 41 | % | 46,100 | 15 | % | ||||||||||||||||||||||||||
Interest expense, net | (50,255) | (46,697) | (6) | % | (6) | % | (3,558) | 8 | % | ||||||||||||||||||||||||||
Other income, net | 7,379 | 1,969 | 1 | % | — | % | 5,410 | 275 | % | ||||||||||||||||||||||||||
Income before income taxes | 303,324 | 255,372 | 37 | % | 35 | % | 47,952 | 19 | % | ||||||||||||||||||||||||||
Provision for income taxes | 52,460 | 56,179 | 6 | % | 8 | % | (3,719) | (7) | % | ||||||||||||||||||||||||||
Net income | $ | 250,864 | $ | 199,193 | 31 | % | 27 | % | 51,671 | 26 | % | ||||||||||||||||||||||||
Quarter Ended March 31, | Period-to-Period Change | Period-to-Period Percentage Change | |||||||||||||||||||||
Segment | 2024 | 2023 | |||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Scores | $ | 212,208 | $ | 175,405 | $ | 36,803 | 21 | % | |||||||||||||||
Software | 64,162 | 54,867 | 9,295 | 17 | % | ||||||||||||||||||
Unallocated corporate expenses | (45,806) | (43,183) | (2,623) | 6 | % | ||||||||||||||||||
Total segment operating income | 230,564 | 187,089 | 43,475 | 23 | % | ||||||||||||||||||
Unallocated share-based compensation | (35,448) | (27,053) | (8,395) | 31 | % | ||||||||||||||||||
Unallocated amortization expense | (275) | (275) | — | — | % | ||||||||||||||||||
Operating income | $ | 194,841 | $ | 159,761 | 35,080 | 22 | % |
Scores | Software | ||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended March 31, | Percentage of Revenues | Quarter Ended March 31, | Percentage of Revenues | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | 236,885 | $ | 198,507 | 100 | % | 100 | % | $ | 196,924 | $ | 181,759 | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Segment operating expense | (24,677) | (23,102) | (10) | % | (12) | % | (132,762) | (126,892) | (67) | % | (70) | % | |||||||||||||||||||||||||||||||||||
Segment operating income | $ | 212,208 | $ | 175,405 | 90 | % | 88 | % | $ | 64,162 | $ | 54,867 | 33 | % | 30 | % |
Six Months Ended March 31, | Period-to-Period Change | Period-to-Period Percentage Change | |||||||||||||||||||||
Segment | 2024 | 2023 | |||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||
Scores | $ | 380,862 | $ | 332,097 | $ | 48,765 | 15 | % | |||||||||||||||
Software | 119,284 | 100,632 | 18,652 | 19 | % | ||||||||||||||||||
Unallocated corporate expenses | (86,374) | (77,265) | (9,109) | 12 | % | ||||||||||||||||||
Total segment operating income | 413,772 | 355,464 | 58,308 | 16 | % | ||||||||||||||||||
Unallocated share-based compensation | (67,022) | (56,755) | (10,267) | 18 | % | ||||||||||||||||||
Unallocated amortization expense | (550) | (550) | — | — | % | ||||||||||||||||||
Unallocated gain on product line asset sale | — | 1,941 | (1,941) | (100) | % | ||||||||||||||||||
Operating income | $ | 346,200 | $ | 300,100 | 46,100 | 15 | % |
Scores | Software | ||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended March 31, | Percentage of Revenues | Six Months Ended March 31, | Percentage of Revenues | ||||||||||||||||||||||||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||||||||||
Segment revenues | $ | 428,997 | $ | 376,495 | 100 | % | 100 | % | $ | 386,871 | $ | 348,641 | 100 | % | 100 | % | |||||||||||||||||||||||||||||||
Segment operating expense | (48,135) | (44,398) | (11) | % | (12) | % | (267,587) | (248,009) | (69) | % | (71) | % | |||||||||||||||||||||||||||||||||||
Segment operating income | $ | 380,862 | $ | 332,097 | 89 | % | 88 | % | $ | 119,284 | $ | 100,632 | 31 | % | 29 | % |
Six Months Ended March 31, | Period-to-Period Change | ||||||||||||||||
2024 | 2023 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Cash provided by (used in): | |||||||||||||||||
Operating activities | $ | 193,155 | $ | 182,244 | $ | 10,911 | |||||||||||
Investing activities | (12,040) | (11,887) | (153) | ||||||||||||||
Financing activities | (183,222) | (173,245) | (9,977) | ||||||||||||||
Effect of exchange rate changes on cash | 996 | 7,457 | (6,461) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | $ | (1,111) | $ | 4,569 | (5,680) |
March 31, 2024 | September 30, 2023 | ||||||||||||||||||||||||||||||||||
Cost Basis | Carrying Amount | Average Yield | Cost Basis | Carrying Amount | Average Yield | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 135,667 | $ | 135,667 | 3.20 | % | $ | 136,778 | $ | 136,778 | 3.05 | % |
March 31, 2024 | September 30, 2023 | ||||||||||||||||||||||
Face Value | Fair Value | Face Value | Fair Value | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
The 2018 Senior Notes | 400,000 | 395,000 | 400,000 | 386,000 | |||||||||||||||||||
The 2019 Senior Notes and the 2021 Senior Notes | 900,000 | 837,000 | 900,000 | 803,250 | |||||||||||||||||||
Total | $ | 1,300,000 | $ | 1,232,000 | $ | 1,300,000 | $ | 1,189,250 |
March 31, 2024 | ||||||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||||||
Foreign Currency | USD | USD | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Sell foreign currency: | ||||||||||||||||||||
Euro (EUR) | EUR | 9,000 | $ | 9,718 | $ | — | ||||||||||||||
Buy foreign currency: | ||||||||||||||||||||
British pound (GBP) | GBP | 9,670 | $ | 12,200 | $ | — | ||||||||||||||
Singapore dollar (SGD) | SGD | 10,487 | $ | 7,800 | $ | — | ||||||||||||||
September 30, 2023 | ||||||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||||||
Foreign Currency | USD | USD | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Sell foreign currency: | ||||||||||||||||||||
Euro (EUR) | EUR | 12,900 | $ | 13,621 | $ | — | ||||||||||||||
Buy foreign currency: | ||||||||||||||||||||
British pound (GBP) | GBP | 10,700 | $ | 13,100 | $ | — | ||||||||||||||
Singapore dollar (SGD) | SGD | 8,569 | $ | 6,300 | $ | — |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||||||||||||
January 1, 2024 through January 31, 2024 | 42,512 | $ | 1,182.34 | 41,500 | $ | 496,990,469 | |||||||||||||||||
February 1, 2024 through February 29, 2024 | 50,154 | $ | 1,277.94 | 50,000 | $ | 433,093,756 | |||||||||||||||||
March 1, 2024 through March 31, 2024 | 52,830 | $ | 1,266.00 | 52,443 | $ | 366,691,341 | |||||||||||||||||
145,496 | $ | 1,245.67 | 143,943 | $ | 366,691,341 |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
31.1 * | ||||||||
31.2 * | ||||||||
32.1 * | ||||||||
32.2 * | ||||||||
101.INS * | Inline XBRL Instance Document. | |||||||
101.SCH * | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL * | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF * | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB * | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE * | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 * | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
* | Filed herewith. |
FAIR ISAAC CORPORATION | |||||||||||
DATE: | April 25, 2024 | ||||||||||
By | /s/ STEVEN P. WEBER | ||||||||||
Steven P. Weber | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
(for Registrant as duly authorized officer and | |||||||||||
as Principal Financial Officer) | |||||||||||
DATE: | April 25, 2024 | ||||||||||
By | /s/ MICHAEL S. LEONARD | ||||||||||
Michael S. Leonard | |||||||||||
Vice President and Chief Accounting Officer (Principal Accounting Officer) |
/s/ WILLIAM J. LANSING | |||||
William J. Lansing | |||||
Chief Executive Officer |
/s/ STEVEN P. WEBER | |||||
Steven P. Weber | |||||
Executive Vice President and Chief Financial Officer |
Date: | April 25, 2024 | /s/ WILLIAM J. LANSING | ||||||
William J. Lansing | ||||||||
Chief Executive Officer |
Date: | April 25, 2024 | /s/ STEVEN P. WEBER | ||||||
Steven P. Weber | ||||||||
Executive Vice President and Chief Financial Officer |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 88,857,000 | 88,857,000 |
Common stock, shares outstanding | 24,753,000 | 24,770,000 |
Treasury stock, shares | 64,104,000 | 64,087,000 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Total revenues | $ 433,809 | $ 380,266 | $ 815,868 | $ 725,136 |
Operating expenses: | ||||
Cost of revenues | 86,946 | 79,806 | 170,407 | 156,375 |
Research and development | 40,880 | 40,266 | 83,515 | 76,899 |
Selling, general and administrative | 110,867 | 100,158 | 215,196 | 193,153 |
Amortization of intangible assets | 275 | 275 | 550 | 550 |
Gain on product line asset sale | 0 | 0 | 0 | (1,941) |
Total operating expenses | 238,968 | 220,505 | 469,668 | 425,036 |
Operating income | 194,841 | 159,761 | 346,200 | 300,100 |
Interest expense, net | (26,093) | (23,897) | (50,255) | (46,697) |
Other income, net | 3,986 | 1,605 | 7,379 | 1,969 |
Income before income taxes | 172,734 | 137,469 | 303,324 | 255,372 |
Provision for income taxes | 42,935 | 35,919 | 52,460 | 56,179 |
Net income | 129,799 | 101,550 | 250,864 | 199,193 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (4,157) | 6,552 | 4,546 | 24,933 |
Comprehensive income | $ 125,642 | $ 108,102 | $ 255,410 | $ 224,126 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 5.23 | $ 4.04 | $ 10.12 | $ 7.94 |
Diluted (in dollars per share) | $ 5.16 | $ 4.00 | $ 9.96 | $ 7.83 |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 24,819 | 25,116 | 24,791 | 25,080 |
Diluted (in shares) | 25,154 | 25,419 | 25,186 | 25,431 |
On-premises and SaaS software | ||||
Total revenues | $ 177,180 | $ 154,584 | $ 345,848 | $ 299,144 |
Professional services | ||||
Total revenues | 19,744 | 27,175 | 41,023 | 49,497 |
Scores | ||||
Total revenues | $ 236,885 | $ 198,507 | $ 428,997 | $ 376,495 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Cash Flows [Abstract] | ||
Proceeds from Income Tax Refunds | $ 320 | $ 548 |
Nature of Business |
6 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Fair Isaac Corporation Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the “Company,” which may also be referred to in this report as “we,” “us,” “our,” or “FICO”) is a leading applied analytics company. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO® Score operationalize analytics, enabling thousands of businesses in more than 100 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO® Scores — the standard measure in the U.S. of consumer credit risk — empowering them to increase financial literacy and manage their financial health. Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates We make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of various accruals; variable considerations included in the transaction price and standalone selling price of each performance obligation for our customer contracts; labor hours in connection with fixed-fee service contracts; the amount of our tax provision; and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. New Accounting Pronouncements Recent Accounting Pronouncements Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606, Revenue from Contacts with Customers, in order to align the recognition of a contract liability with the definition of a performance obligation. We adopted ASU 2021-08 in the first quarter of fiscal 2024 and the adoption did not have a significant impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, which means that it will be effective for our annual periods beginning October 1, 2024, and our interim periods beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for our fiscal years beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In March 2024, the Securities and Exchange Commission (“SEC”) issued Final Rule Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” This rule will require registrants to provide certain climate disclosures in their annual reports, including certain climate-related financial metrics in their audited financial statements. The rule is effective for large accelerated filers beginning with annual reports for the fiscal year beginning in 2025, which means that it will be effective for our fiscal years beginning October 1, 2025. We are currently evaluating the impact that the final rule will have on our disclosures within our consolidated financial statements. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our consolidated financial statements.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. •Level 1 — uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of money market funds and certain marketable securities and our Level 1 liabilities included senior notes as of March 31, 2024 and September 30, 2023. •Level 2 — uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of March 31, 2024 and September 30, 2023. •Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We did not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of March 31, 2024 and September 30, 2023. The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2024 and September 30, 2023:
(1)Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2024 and September 30, 2023. Not included in these tables are cash deposits of $116.5 million and $113.2 million at March 31, 2024 and September 30, 2023, respectively. (2)Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at March 31, 2024 and September 30, 2023. See Note 6 for the fair value of our senior notes. There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the quarters and six-month periods ended March 31, 2024 and 2023.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro, and Singapore dollar. Foreign currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income, net. The forward contracts are not designated as hedges and are marked to market through other income, net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months. The following tables summarize our outstanding foreign currency forward contracts, by currency, at March 31, 2024 and September 30, 2023:
The foreign currency forward contracts were entered into on March 31, 2024 and September 30, 2023; therefore, their fair value was $0 on each of these dates. Gains (losses) on derivative financial instruments were recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following:
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Disclosure | Goodwill The following table summarizes changes to goodwill during the six months ended March 31, 2024, both in total and as allocated to our segments. As of March 31, 2024, there was no accumulated goodwill impairment loss.
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Composition of Certain Financial Statement Captions |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions The following table presents the composition of property and equipment, net and other accrued liabilities at March 31, 2024 and September 30, 2023:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure | Debt The following table represents our debt at carrying value at March 31, 2024 and September 30, 2023:
Revolving Line of Credit and Term Loan We have a $600 million unsecured revolving line of credit and a $300 million unsecured term loan with a syndicate of banks that mature on August 19, 2026. Borrowings under the revolving line of credit and term loan can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. The term loan requires principal payments in consecutive quarterly installments of $3.75 million on the last business day of each quarter. Interest rates on amounts borrowed under the revolving line of credit and term loan are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) one-month adjusted term Secured Overnight Financing Rate (“SOFR”) rate plus 1%, plus, in each case, an applicable margin, or (ii) an adjusted term SOFR rate plus an applicable margin. The applicable margin for base rate borrowings and for SOFR borrowings is determined based on our consolidated leverage ratio. The applicable margin for base rate borrowings ranges from 0% to 0.75% per annum and for SOFR borrowings ranges from 1% to 1.75% per annum. In addition, we must pay certain credit facility fees. The revolving line of credit and term loan contain certain restrictive covenants including a maximum consolidated leverage ratio of 3.5 to 1.0, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and a minimum interest coverage ratio of 3.0 to 1.0. The credit agreement also contains other covenants typical of unsecured credit facilities. As of March 31, 2024, we had $488.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 6.673%, and $266.3 million in outstanding balance of the term loan at an interest rate of 6.674%. We were in compliance with all financial covenants under this credit agreement as of March 31, 2024. Senior Notes On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026. On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028. On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes,” and collectively with the 2018 Senior Notes and the 2019 Senior Notes, the “Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes. The indentures for the Senior Notes contain certain covenants typical of unsecured obligations and we were in compliance as of March 31, 2024. The following table presents the face values and fair values for the Senior Notes at March 31, 2024 and September 30, 2023:
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Revenue from Contract with Customer |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer | Revenue from Contracts with Customers Disaggregation of Revenue The following tables provide information about disaggregated revenue by primary geographical market:
The following table provides information about disaggregated revenue for our Software segment by deployment method:
The following table provides information about disaggregated revenue for our Software segment by product features:
The following table provides information about disaggregated revenue for our Software segment by timing of revenue recognition:
(1)Includes license portion of our on-premises subscription software and perpetual license, both of which are recognized when the software is made available to the customer, or at the start of the subscription. (2)Includes maintenance portion and usage-based fees of our on-premises subscription software, maintenance revenue on perpetual licenses, as well as SaaS revenue. The following table provides information about disaggregated revenue for our Scores segment by distribution method:
We derive a substantial portion of revenues from our contracts with the three major consumer reporting agencies, TransUnion, Equifax and Experian. Revenues collectively generated by agreements with these customers accounted for 47% and 43% of our total revenues in the quarters ended March 31, 2024 and 2023, respectively, with all three consumer reporting agencies each contributing more than 10% of our total revenues in each of the quarters ended March 31, 2024 and 2023. Revenues collectively generated by agreements with these customers accounted for 43% and 40% of our total revenues in the six months ended March 31, 2024 and 2023, respectively, with three and two consumer reporting agencies each contributing more than 10% of our total revenues in the six months ended March 31, 2024 and 2023, respectively. At March 31, 2024 and September 30, 2023, two and one individual customers each accounted for 10% or more of total consolidated receivables, respectively. Contract Balances We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation. Receivables at March 31, 2024 and September 30, 2023 consisted of the following:
(*) Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets. Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances are as follows:
(*) Deferred revenues at March 31, 2024 included current portion of $143.6 million and long-term portion of $6.5 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Deferred revenues at September 30, 2023 included current portion of $136.7 million and long-term portion of $6.5 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront and invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: •Usage-based revenue that will be recognized in future periods from on-premises software subscriptions; •Consumption-based variable fees from SaaS software that will be recognized in the distinct service period during which it is earned; and •Revenue from variable considerations that will be recognized in accordance with the “right-to-invoice” practical expedient, such as fees from our professional services billed based on a time and materials basis. Revenue allocated to remaining performance obligations was $481.7 million as of March 31, 2024, approximately 50% of which we expect to recognize over the next 16 months and the remainder thereafter. Revenue allocated to remaining performance obligations was $470.5 million as of September 30, 2023.
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Income Taxes |
6 Months Ended |
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Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate was 24.9% and 26.1% during the quarters ended March 31, 2024 and 2023, respectively, and 17.3% and 22.0% during the six months ended March 31, 2024 and 2023, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. A provision enacted as part of the 2022 Inflation Reduction Act imposes a 15% corporate minimum tax. The provision is effective for tax years beginning after December 31, 2022, which means that it was effective for our fiscal year beginning October 1, 2023. We do not expect any impact to our fiscal 2024 effective tax rate from the corporate minimum tax provision. The total unrecognized tax benefit for uncertain tax positions was estimated to be $15.7 million and $13.8 million at March 31, 2024 and September 30, 2023, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We accrued interest of $1.5 million and $0.9 million related to unrecognized tax benefits as of March 31, 2024 and September 30, 2023, respectively.
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Earnings per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and six-month periods ended March 31, 2024 and 2023:
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Segment Information |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We are organized into two reportable segments: Scores and Software. Although we sell solutions and services to a large number of end user product and industry markets, our reportable business segments reflect the primary method in which management organizes and evaluates internal financial information to make operating decisions and assess performance. •Scores. This segment includes our business-to-business (“B2B”) scoring solutions and services which give our clients access to predictive credit and other scores that can be easily integrated into their transaction streams and decision-making processes. This segment also includes our business-to-consumer (“B2C”) scoring solutions, including our myFICO.com subscription offerings. •Software. This segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process — such as account origination, customer management, customer engagement, fraud detection, and marketing — as well as associated professional services. This segment also includes FICO® Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by our customers to address a wide variety of business use cases. These offerings are available to our customers as SaaS or as on-premises software. Our chief operating decision maker (“CODM”), who is our Chief Executive Officer, evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, IT infrastructure, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring and acquisition-related expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our CODM does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation amounts are allocated to the segments from their internal cost centers as described above. The following tables summarize segment information for the quarters and six-month periods ended March 31, 2024 and 2023:
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Contingencies |
6 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesWe are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined |
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||||
Net income | $ 129,799 | $ 101,550 | $ 250,864 | $ 199,193 |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nature of Business (Policies) |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Fair Isaac Corporation | Fair Isaac Corporation Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the “Company,” which may also be referred to in this report as “we,” “us,” “our,” or “FICO”) is a leading applied analytics company. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO® Score operationalize analytics, enabling thousands of businesses in more than 100 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO® Scores — the standard measure in the U.S. of consumer credit risk — empowering them to increase financial literacy and manage their financial health.
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Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated.
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Use of Estimates | Use of Estimates We make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of various accruals; variable considerations included in the transaction price and standalone selling price of each performance obligation for our customer contracts; labor hours in connection with fixed-fee service contracts; the amount of our tax provision; and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates.
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New Accounting Pronouncements | New Accounting Pronouncements Recent Accounting Pronouncements Adopted In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606, Revenue from Contacts with Customers, in order to align the recognition of a contract liability with the definition of a performance obligation. We adopted ASU 2021-08 in the first quarter of fiscal 2024 and the adoption did not have a significant impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. The standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, which means that it will be effective for our annual periods beginning October 1, 2024, and our interim periods beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as disaggregated information on income tax paid. The standard is effective for fiscal years beginning after December 15, 2024, which means that it will be effective for our fiscal years beginning October 1, 2025. Early adoption is permitted. We are currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In March 2024, the Securities and Exchange Commission (“SEC”) issued Final Rule Release No. 33-11275, “The Enhancement and Standardization of Climate-Related Disclosures for Investors.” This rule will require registrants to provide certain climate disclosures in their annual reports, including certain climate-related financial metrics in their audited financial statements. The rule is effective for large accelerated filers beginning with annual reports for the fiscal year beginning in 2025, which means that it will be effective for our fiscal years beginning October 1, 2025. We are currently evaluating the impact that the final rule will have on our disclosures within our consolidated financial statements. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our consolidated financial statements.
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets Measured on a Recurring Basis | The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2024 and September 30, 2023:
(1)Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2024 and September 30, 2023. Not included in these tables are cash deposits of $116.5 million and $113.2 million at March 31, 2024 and September 30, 2023, respectively. (2)Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at March 31, 2024 and September 30, 2023.
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Outstanding Foreign Currency Forward Contracts | The following tables summarize our outstanding foreign currency forward contracts, by currency, at March 31, 2024 and September 30, 2023:
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Gains (Losses) on Derivative Financial Instruments | Gains (losses) on derivative financial instruments were recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following:
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table summarizes changes to goodwill during the six months ended March 31, 2024, both in total and as allocated to our segments. As of March 31, 2024, there was no accumulated goodwill impairment loss.
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Composition of Certain Financial Statement Captions (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment and Other Accrued Liabilities | The following table presents the composition of property and equipment, net and other accrued liabilities at March 31, 2024 and September 30, 2023:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The following table represents our debt at carrying value at March 31, 2024 and September 30, 2023:
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table presents the face values and fair values for the Senior Notes at March 31, 2024 and September 30, 2023:
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Revenue from Contract with Customer (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables provide information about disaggregated revenue by primary geographical market:
The following table provides information about disaggregated revenue for our Software segment by deployment method:
The following table provides information about disaggregated revenue for our Software segment by product features:
The following table provides information about disaggregated revenue for our Software segment by timing of revenue recognition:
(1)Includes license portion of our on-premises subscription software and perpetual license, both of which are recognized when the software is made available to the customer, or at the start of the subscription. (2)Includes maintenance portion and usage-based fees of our on-premises subscription software, maintenance revenue on perpetual licenses, as well as SaaS revenue. The following table provides information about disaggregated revenue for our Scores segment by distribution method:
We derive a substantial portion of revenues from our contracts with the three major consumer reporting agencies, TransUnion, Equifax and Experian. Revenues collectively generated by agreements with these customers accounted for 47% and 43% of our total revenues in the quarters ended March 31, 2024 and 2023, respectively, with all three consumer reporting agencies each contributing more than 10% of our total revenues in each of the quarters ended March 31, 2024 and 2023. Revenues collectively generated by agreements with these customers accounted for 43% and 40% of our total revenues in the six months ended March 31, 2024 and 2023, respectively, with three and two consumer reporting agencies each contributing more than 10% of our total revenues in the six months ended March 31, 2024 and 2023, respectively. At March 31, 2024 and September 30, 2023, two and one individual customers each accounted for 10% or more of total consolidated receivables, respectively.
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Schedule of Accounts Receivable | Receivables at March 31, 2024 and September 30, 2023 consisted of the following:
(*) Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets.
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Deferred Revenue, by Arrangement, Disclosure | Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances are as follows:
(*) Deferred revenues at March 31, 2024 included current portion of $143.6 million and long-term portion of $6.5 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Deferred revenues at September 30, 2023 included current portion of $136.7 million and long-term portion of $6.5 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets.
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Earnings per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and six-month periods ended March 31, 2024 and 2023:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | The following tables summarize segment information for the quarters and six-month periods ended March 31, 2024 and 2023:
|
Nature of Business (Details) |
Mar. 31, 2024
country
|
---|---|
Accounting Policies [Abstract] | |
Number of Countries in which Entity Operates | 100 |
Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Sep. 30, 2023 |
||||
---|---|---|---|---|---|---|
Assets: | ||||||
Marketable securities | $ 41,407 | $ 33,014 | ||||
Cash deposits | 116,500 | 113,200 | ||||
Fair Value, Measurements, Recurring | ||||||
Assets: | ||||||
Cash equivalents | [1] | 19,165 | 23,621 | |||
Marketable securities | [2] | 41,407 | 33,014 | |||
Total | 60,572 | 56,635 | ||||
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | ||||||
Assets: | ||||||
Cash equivalents | [1] | 19,165 | 23,621 | |||
Marketable securities | [2] | 41,407 | 33,014 | |||
Total | $ 60,572 | $ 56,635 | ||||
|
Derivative Financial Instruments - Additional Information (Detail) - USD ($) |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Sep. 30, 2023 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Short-term forward contracts, average maturities at inception (less than) | 3 months | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Forward foreign currency contracts fair value | $ 0 | $ 0 |
Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) on foreign currency forward contracts | $ (180) | $ 309 | $ 361 | $ 1,613 |
Goodwill (Details) $ in Millions |
Mar. 31, 2024
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 0 |
Goodwill - Summary of Changes to Goodwill (Detail) $ in Thousands |
6 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | $ 773,327 |
Foreign currency translation adjustment | 3,049 |
Balance at March 31, 2024 | 776,376 |
Scores | |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | 146,648 |
Foreign currency translation adjustment | 0 |
Balance at March 31, 2024 | 146,648 |
Software | |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | 626,679 |
Foreign currency translation adjustment | 3,049 |
Balance at March 31, 2024 | $ 629,728 |
Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Less: accumulated depreciation and amortization | $ (77,425) | $ (88,001) |
Property and equipment, net | 27,224 | 10,966 |
Property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 99,269 | 98,967 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 5,380 | $ 0 |
Composition of Certain Financial Statement Captions - Other Accrued Liability (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest payable | $ 21,384 | $ 20,770 |
Current operating leases | 14,586 | 16,336 |
Other Accrued Liabilities, Current | 32,966 | 22,372 |
Other accrued liabilities | $ 68,936 | $ 59,478 |
Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Current maturities on debt | $ 15,000 | $ 50,000 |
Debt issuance costs | (10,598) | (12,092) |
Long-Term Debt, Excluding Current Maturities | 2,028,652 | 1,811,658 |
Debt, Long-Term and Short-Term, Combined Amount | 2,043,652 | 1,861,658 |
Senior Notes | May 2018 Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 400,000 | 400,000 |
Senior Notes | Dec 2019 and 2021 Senior Notes | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 900,000 | 900,000 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of Credit, Current | 0 | 35,000 |
Line of Credit, Noncurrent | 488,000 | 265,000 |
Revolving Credit Facility | Loans Payable | ||
Debt Instrument [Line Items] | ||
Loans Payable to Bank, Current | 15,000 | 15,000 |
Loans Payable to Bank, Noncurrent | $ 251,250 | $ 258,750 |
Contract Balance - Receivables (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Billed | $ 300,179 | $ 234,745 |
Unbilled | 213,023 | 203,896 |
Receivables Gross | 513,202 | 438,641 |
Less: allowance for doubtful accounts | (5,806) | (4,978) |
Accounts Receivable, after Allowance for Credit Loss | 507,396 | 433,663 |
Less: long-term receivables | (38,371) | (45,716) |
Accounts receivable, net | $ 469,025 | $ 387,947 |
Contract Balance - Deferred Revenues (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Sep. 30, 2023 |
|
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Liability | $ 150,076 | $ 143,235 |
Revenue recognized that was included in the deferred revenues balance at the beginning of the period | 102,063 | |
Increases due to billings, excluding amounts recognized as revenue during the period | 108,904 | |
Deferred revenue, current portion | 143,600 | 136,700 |
Deferred revenue, noncurrent | $ 6,500 | $ 6,500 |
Contract Balances - Payment Terms (Details) |
6 Months Ended |
---|---|
Mar. 31, 2024 | |
Minimum | |
Contract with Customer, Payment Term [Line Items] | |
Contract With Customer, Payment Term | 30 days |
Maximum | |
Contract with Customer, Payment Term [Line Items] | |
Contract With Customer, Payment Term | 60 days |
Performance Obligation (Details) - USD ($) $ in Millions |
Mar. 31, 2024 |
Sep. 30, 2023 |
---|---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 481.7 | $ 470.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Percentage | 50.00% | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 16 months |
Income Taxes -Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Sep. 30, 2023 |
|
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 24.90% | 26.10% | 17.30% | 22.00% | |
Unrecognized tax benefits, uncertain tax positions | $ 15.7 | $ 15.7 | $ 13.8 | ||
Unrecognized tax benefits, accrued interest | $ 1.5 | $ 1.5 | $ 0.9 |
Earnings per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerator for diluted and basic earnings per share: | ||||
Net income | $ 129,799 | $ 101,550 | $ 250,864 | $ 199,193 |
Denominator — share: | ||||
Basic weighted-average shares (in shares) | 24,819 | 25,116 | 24,791 | 25,080 |
Effect of dilutive securities (in shares) | 335 | 303 | 395 | 351 |
Diluted weighted-average shares (in shares) | 25,154 | 25,419 | 25,186 | 25,431 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 5.23 | $ 4.04 | $ 10.12 | $ 7.94 |
Diluted (in dollars per share) | $ 5.16 | $ 4.00 | $ 9.96 | $ 7.83 |
Segment Information - Additional Information (Detail) |
6 Months Ended |
---|---|
Mar. 31, 2024
Segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
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