Name: Fair Isaac Corp. (NYSE:FICO) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

Fair Isaac Corp., common-size consolidated income statement

12 months ended:	Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
On-premises and SaaS software	41.42%	42.30%	41.01%	39.34%	45.16%	48.01%
Professional services	5.04%	6.58%	7.69%	10.98%	14.02%	15.68%
Scores	53.55%	51.13%	51.31%	49.69%	40.83%	36.31%
Revenues	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Cost of revenues	-20.27%	-20.55%	-21.94%	-25.25%	-27.90%	-29.04%
Gross profit	79.73%	79.45%	78.06%	74.75%	72.10%	70.96%
Research and development	-10.01%	-10.57%	-10.66%	-13.01%	-12.86%	-12.89%
Selling, general and administrative	-26.95%	-26.47%	-27.87%	-30.10%	-32.52%	-35.69%
Amortization of intangible assets	-0.05%	-0.07%	-0.15%	-0.25%	-0.39%	-0.53%
Restructuring charges	0.00%	0.00%	0.00%	-0.60%	-3.48%	0.00%
Gain on product line asset sale	0.00%	0.13%	0.00%	7.61%	0.00%	0.00%
Operating income	42.71%	42.47%	39.38%	38.40%	22.86%	21.86%
Interest expense, net	-6.15%	-6.31%	-5.01%	-3.05%	-3.26%	-3.43%
Other income (expense), net	0.82%	0.42%	-0.16%	0.59%	0.25%	0.20%
Income before income taxes	37.38%	36.58%	34.22%	35.94%	19.85%	18.63%
Provision for income taxes	-7.52%	-8.21%	-7.10%	-6.16%	-1.59%	-2.06%
Net income	29.86%	28.37%	27.12%	29.78%	18.26%	16.56%

Based on: 10-K (reporting date: 2024-09-30), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30).

The financial performance from 2019 to 2024 reflects a strategic shift in revenue composition and a significant expansion of profit margins. The company has successfully transitioned toward a more scalable revenue model, resulting in substantial growth in operating and net income margins.

Revenue Mix Shift: A clear transition in the revenue base is observed, with the Scores segment increasing its contribution from 36.31% in 2019 to 53.55% in 2024. This growth is contrasted by a sharp decline in Professional Services, which fell from 15.68% to 5.04% over the same period. On-premises and SaaS software revenues experienced a moderate decrease from 48.01% to 41.42%, suggesting a strategic pivot toward the higher-margin Scores business.
Gross Profitability: Gross profit margins exhibited a consistent upward trend, rising from 70.96% in 2019 to 79.73% in 2024. This improvement was driven by a reduction in the cost of revenues, which decreased from 29.04% to 20.27% of total revenues, indicating enhanced production efficiency or a more favorable product mix.
Operating Expense Management: Operating efficiency improved significantly, evidenced by the decline in Selling, General and Administrative (SG&A) expenses from 35.69% of revenues in 2019 to 26.95% in 2024. Research and development costs also trended slightly downward from 12.89% to 10.01%. These combined reductions in overhead contributed to a dramatic increase in operating income, which grew from 21.86% to 42.71% of revenues.
Net Income and Financial Obligations: Net income margins expanded from 16.56% in 2019 to 29.86% in 2024. This growth was achieved despite increasing financial pressures; net interest expenses nearly doubled as a percentage of revenue, rising from 3.43% to 6.15%. Additionally, the provision for income taxes increased from 2.06% to 7.52%. The strong growth in operating income effectively offset these rising interest and tax burdens.

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