Last week Fair Issac Corporation, better known as FICO, (NYSE: FICO), a predictive analytics and decision management software company, reported solid financials for their second fiscal quarter of 2018 ended March 31, 2018. Among the company’s highlights for the quarter are total revenue of $257.9 million, compared to $228.4 million for the same period last year, and net income of $32.3 million, or $1.03 per share, compared to $25.1 million, or $0.78 per share, for the second fiscal quarter of 2017. Revenue increased in the company’s Applications and Scores segments but decreased in its Decision Management Software segment.

‘We delivered record revenues in our second quarter, and strong growth in net income and EPS,’ said Will Lansing, CEO for FICO, in a news release. ‘We are pleased with our progress and are raising our full-year guidance.’

Other highlights for the quarter include:

• Applications revenue was $146.7 million, a 9 percent increase year-over-year.
• Scores revenue, including B2B and B2C, was $87.9 million, a 34 percent increase over $65.4 million year-over-year. B2B growth was 47 percent; B2C growth was 13 percent.
• Decision Management Software revenue was $23.3 million, a 19 percent decrease over $28.6 million year-over-year, mostly due to decreased up-front license sales.
• Free cash flow was $42 million, compared to $61 million during the same period last year.
• Total expenses for the quarter were $208.1 million, compared to $185.0 million for the same period last year.
• Headcount was 3,470, compared to 3,306 for the same period last year.
• Bookings were $101.7 million, compared to $91.2 billion for the same period last year.
• Total assets at the end of the quarter were $1.29 billion.

FICO reported updated guidance for fiscal year 2018:

• Revenue of approximately $1.02 billion, revised from $990 million
• GAAP net income of $140 million, revised from $136 million
• GAAP earnings per share of $4.47, revised from $4.34

Earlier in the month, FICO announced a variety of new or updated solutions for its B2B clients, including the following:

• FICO Falcon Assurance Manager, a solution for identifying procurement fraud, waste and abuse, is now available on Amazon Web Services.
• FICO adds new suite of solutions to maximize financial crime protection, including AML Advanced Analytics, to improve money laundering detection.
• FICO released new retail banking solutions to help lenders manage the credit lifecycle in a simpler, faster way.

Since financials were released on April 26, FICO stock has fluctuated, ending at $173.59 per share, a $6.75 per share increase, as of 4:48 p.m. Eastern on May 3.

Insider Take:

Based on its strong financials and revised guidance, it looks like FICO is anticipating a better-than-expected fiscal year 2018. Except for its Decision Management Software, the company’s revenue segments saw increases this year. The company has also revised its existing products and released new ones, which will help the company continue at its current pace.