Q3 2023 Fair Isaac Corporation Earnings Call

August 2, 2023

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Greetings and welcome to the Fair Isaac Corporation quarterly earnings call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session and I would tell them. If you have a question. Please press the one followed by the poor and your telephone should you require operator assistance at any time, Please press star zero as it.

Remind you that this conference is being recorded Wednesday August <unk> 2023, I would now like to turn the conference over to Steve Weber. Please go ahead.

Good afternoon, and thank you for joining <unk> third quarter earnings call.

I am Steve Weber, if iqos CFO and I'm joined today by our CEO will Lansing.

We issued a press release that describes financial results compared to the prior year on this call management will also discuss results in comparison to the prior quarter in order to facilitate understanding of the run rate of our business.

Statements made in this presentation may be characterized as forward looking under the private Securities Litigation Reform Act of 1095 so.

Those statements involve many uncertainties that could cause actual results to differ materially.

Information concerning these uncertainties is contained in the company's filings with the SEC in particular in the risk factors and forward looking statements portions of such filings copies.

These are available from the SEC from the FICO website or from our Investor Relations team.

This call will also include statements regarding certain non-GAAP financial measures.

Please refer to the company's earnings release and regulation G schedule issued today for a reconciliation of each of these non-GAAP financial measures to the most comparable GAAP measure.

The earnings release and regulation G schedule are available on the Investor Relations page of the company's website at <unk> dot com or on the SEC's website at SEC Gov.

A replay of this webcast will be available through August 2024, and with that I'll turn the call over to will Lansing. Thanks, Steve and thank you everyone for joining us for our third quarter earnings call.

On the Investor Relations section of our website, we've posted slides that offer financial highlights of our third quarter.

I'm pleased to report, we delivered another exceptional quarter with record revenue and profitability and strength throughout our business today I'll talk about this quarter's results and our increased guidance for the whole fiscal year.

As you can see on page two of the presentation, we reported record revenues of $399 million, an increase of 14% over the same period last year.

We delivered $129 million of GAAP net income and GAAP earnings of $5 eight per share growing 38% and 41% respectively over the prior year on a non-GAAP basis net income was 143 million with earnings per share of $5 66.

Representing year over year growth of 24% and 27%.

We continue to deliver strong results throughout the business.

<unk> revenue was a record $202 million up 13% in the quarter versus the prior year as you can see on page six of the presentation.

<unk> revenues were up 24% driven primarily by increased originations revenues.

Mortgage originations revenues were up 135% versus last year.

Auto origination revenues were up 5%.

Credit card personal loan and other origination revenues were up 2%.

<unk> revenues were flat with last quarter and down 11% versus the same period last year that was due to difficult comps.

And our software business, we continue to drive growth with FICO platform, which provides the power of analytics and AI to enable smarter business decisions at scale.

You can see on page seven we delivered overall a growth of 20% a significant milestone for us and platform <unk> growth of 53%. This represents our 15th straight quarter of platform <unk> growth in excess of 40%.

We continued to drive strong net retention rates as our customers continue to increase volumes and find new use cases overall.

Overall, NRI increased to 117% as shown on page eight.

Legacy <unk> platform and <unk> was 109% as volumes grew in many of our customers.

Platform NR was 142% due to expanded use cases, driven by the success of our land and expand strategy.

And we continue to see strong demand for our software as you can see on page nine we had another quarter of double digit growth with ACB bookings up 13% over the same period last year.

We continue to see a strong pipeline of opportunities and are seeing strong demand for FICO platform.

We had firsthand confirmation of the critical nature of FICO platform at our recent FICO World Conference.

This is a three to eight events.

And has attracted customers for more than 60 countries, where they shared best practices learned about the latest in AI and advanced analytic innovations and learn new approaches for digital transformation, we talked about how FICO platform can design build and deliver AI powered hyper personalized customer journeys across every touch point and with every <unk>.

Traction.

Personally I enjoyed the opportunity to meet our customers and hear from them. How we're working together to optimize their most difficult decisions. One customer said I knew the FICO platform had potential to help transform our business from a decision making perspective, but I'm now blown away by the scope of the platform and communications capabilities.

Another customer told us FICO doesn't sell software you sell intelligence that's way more valuable.

And yet another customer simply said, we either do this now or we fail forever I am proud of our technological excellence and the team that supports our customers to transform their business.

Finally, I'd like to say a few words about our partnership with Chelsea Football club, where we're working together to empower students adults in communities across the U S with financial literacy tools and knowledge to make informed credit decisions that lasts a lifetime.

We are hosting fundamentals workshops in partnership with the U S Soccer Foundation to empower the younger generation with essential credit knowledge to jumpstart their credit journeys.

Financial literacy correlates with better outcomes in education, but we know that the playing field is not always equal one in five U S teenagers.

Lack basic financial literacy skills around 74% of teens arent confident in their financial knowledge. We're working on tackling this financial education gap to get more young people in the game.

In each of the five cities at Chelsea is playing this summer we're working with local partners to bring teenagers from traditionally underserved communities to these fundamentals workshops that are held on or near game day to students will have an opportunity to attend the Chelsea football game, taking place in their city.

For the wider community in these cities FICO is also hosting score a better future credit education events, which are free to the public and will provide local residents with knowledge and tools to gain better insight into their financial health and understanding of their FICO scores. We know the FICO scores have allowed much more equitable access to credit and we're committed to helping educate.

Consumers about processes to foster broader institution.

I'll have some final comments, including an increase in our guidance in a few minutes, but first let me turn the call back to Steve for further details.

Thank you as will said, we delivered another very strong quarter in both our scores and software segments.

Total revenues for the third quarter were $399 million, an increase of 14% over the prior year and our.

Our scores segment revenues were $202 million up 13% from the same period last year <unk>.

<unk> revenues were up 24% over the prior year driven by increased originations revenues, we drove revenue increases in mortgage auto and credit card personal loan and other originations.

This quarter more mortgage originations revenues were up 135% from the same quarter last year auto originations revenues were up 5% and credit card personal loan and other originations revenues were up 2% over last year.

<unk> scores revenue scores revenues were down 11% from the same period last year again due to difficult comps.

<unk> revenues have been relatively flat throughout FY2023.

Southwest segment revenues in the third quarter were $197 million up 16% versus the same period last year.

Software recognized overtime were $147 million or <unk>, 74% of total software revenues.

License revenues recognized upfront or at a point in time were $25 million this quarter and represented 13% of software revenues.

Our professional services revenues were $25 million also representing 13% of total software revenues.

In the third quarter, 87% of total revenues were derived from our Americas region, Our EMEA region generated 8% and 5% were from Asia Pacific.

Our software IRR in the third fiscal quarter of 2023 was $646 million, a 20% increase over the period the prior year or.

Our platform <unk> was $164 million up 53% from last year and represented 25% of our total third quarter.

Compared with 20% last year.

Our non platform <unk> also grew very well and it was $482 million in the third quarter up 11% and.

And as a reminder, all of our numbers have been adjusted for the divestitures we've made.

Our dollar based net retention rate in the quarter was 170% overall versus 109% last year.

We continue to show very strong net expansion from our platform customers two to follow on sales of new use cases and from increased usage.

The DB NR for platform was 142% in the third quarter, our non platform customers software usage also increased this quarter due to increased volumes and CPI increases.

The non platform NR was 109%.

We had another good quarter of software sales with HCV, our annual contract value bookings of $21 million versus 19 million in the prior year, an increase of 13%.

And as a reminder, ACD bookings include only the annual value of software sales and exclude professional services.

Total operating expenses in the third quarter were $222 million this quarter versus $208 million in the prior year and $220 million $221 million in Q2.

Third quarter expenses included our FICO World event in May.

And a one time reimbursement of third party data implementation costs that were previously incurred in the previous quarter.

Our non-GAAP operating margin as shown in our regulation G schedule with 53% for the year, a 400 basis point improvement over the previous year.

GAAP net income this quarter was $129 million.

Up 38% from the prior year quarter and included a noncash reduction to income tax expense of $9 $5 million associated with the evaluation of our R&D tax credits.

GAAP EPS of $5 eight was up 41% from the prior year.

Our non-GAAP net income was $143 million for the quarter up 24% versus the same quarter last year and the non-GAAP EPS was $5 66 up 27% in the prior year.

The effective tax rate for the quarter was 18% and included the adjustment to the valuation of the R&D credits I mentioned earlier.

We expect our Q4 recurring tax rate to be approximately 25% to 26%.

That expected recurring tax rate is before any excess tax benefit or other discrete items.

Free cash flow for the quarter was $122 million for the.

Trailing 12 months free cash flow was $446 million.

At the end of the quarter, we had $195 million in cash and marketable investments.

Our total debt at quarter end was 193 billion with a weighted average interest rate of five 1%.

Currently about 67% of our total debt is fixed rate.

Our floating rate debt is pre payable at any time, giving us the flexibility to use free cash flow to reduce outstanding floating rate debt balances in future periods.

Turning to return of capital we bought back 130000 shares in the third quarter at an average price of $753 per share.

At the end of the quarter, we had $237 million remaining on the current board authorization and we continue to view share repurchases as an attractive use of cash.

And with that I'll turn it back to will for his thoughts on the rest of FY 'twenty, three and an increase in our full year guidance.

Thanks, Dave.

As we finish our fiscal 2023 year I am extremely pleased with the progress we've made in advancing our strategic initiatives and I am bullish on both of the segments of our business. Our scores business continues to deliver strong growth and we are dedicated to innovation to face industry challenges in the years to come and our software business through FICO platform is.

Enabling customers to use the latest analytics and AI technology to optimize their consumer interactions. Finally today, we are again, raising our full year guidance as we enter the final quarter of our fiscal year.

We are raising our full year revenue guidance to $1 5 billion.

We are also increasing our GAAP and non-GAAP net income guidance.

GAAP net income is now expected to be $428 million.

GAAP earnings per share is now expected to be $16 90.

non-GAAP net income is now expected to be 500 million.

non-GAAP EPS is expected to be $19 70.

And I'll now turn the call back to Steve and we'll take some Q&A. Thanks will.

This does include a conclude our prepared remarks, and we're ready now to take your questions. Operator, Please open the lines.

Thank you if you would like to register a question. Please press the one followed by the four on your telephone you will hear a <unk> probe to knowledge to that request. If your question has been answered and you would like to withdraw your registration. Please press. The one followed by the three your first question comes from the line of Manav Patnaik with Barclays. Your.

Line is open.

Thank you.

I was hoping I guess so my first question you could just help us walk through how you thought about the guidance changes it looked like I mean, obviously the <unk> portal.

And the extent of the beat so just curious as you mean for the last quarter and the variability quarter to quarter I suppose.

Yes, you know how we manav, how we are pretty conservative with the way, we guide and we don't want to be in a situation, where we feel like we have to close deals in the last week of the quarter to hit our numbers. So.

If we can get a better deal pushing into next year.

We are obviously willing to do that so.

We're pretty we're pretty conservative and we don't go out and eliminate any of those we typically don't guide quarter to quarter. As you know, we typically guide full year and we will update in the middle of the year. So it's a big deal for us to raise guidance with one quarter to go but we thought we pretty much had to so you can take it.

How you want but we are pretty conservative with where we guide.

Okay fair enough.

And then obviously, but I will say just one more thing manav.

Manav I will say that we did have some a fair amount of onetime license revenue. This quarter that we probably may or may not have in the fourth quarter. So we don't want to count on that.

Yes fair enough, Okay, and then just on the scores business I mean, the mortgage origination that must be clear pricing FX, but can you just tell us where we are on <unk> and the other stuff like incomes.

The pricing strategy there.

So I mean, they all had some pricing increases this year, probably more in line with CPI.

In terms of volumes mortgages still down we're seeing the same decreases that the builders are reporting although it was relatively flat year over year.

And cards actually down a little bit the originations this quarter actually down a little bit so we.

Don.

Go into a lot more detailed map if you can kind of back into what we see the same things that the bureaus in terms of volumes.

Okay. Thanks, guys.

And your next question comes from the line of <unk> <unk> with Deutsche Bank. Your line is open.

Yes, hi, Thank you. So I wanted to follow up first on the software side of the business you mentioned, one time licensing revenue and maybe.

Ms that but talk to us more about what drove that and.

I know you said you are not counting on that for <unk>.

What were some of the drivers around that.

And we have some renewals we added one fairly large renewal if you look at our point in time revenue was $25 million this quarter thats, a little bit more than we had been trending so it's not that sizable but that's that's a number that can have some variability from quarter to quarter. So.

It was $20 million a quarter before that so.

Those things happen when they happen and we don't want to be.

Put it into a position where we have to hasnt happened in specific quarters. So we are cautious the way with where we guided.

Okay, that's not much of our business anymore I used to be it used to be 20% of our business now it's 10%.

So youre actually is less than 10%. So it's a small part of the business but.

Still it's still a meaningful number and when youre looking at one quarter.

Okay, Okay and so my next question is generally around the scores business, so with only one quarter left.

Looking ahead to the next tier.

And I know you're sort of getting to the time, Larry you start talking about pricing for next day or so curious how you're thinking about that theres. Obviously, a lot of changes that are supposed to happen in the market space in particular, so talk to us about any initial thoughts you might have around pricing.

It really is a little bit early for us to talk about pricing, we're still thinking that through but.

But I think you can anticipate that there will be continued.

Increases in price where.

Where we think that the market warrants that were the value we're providing.

Demands it.

<unk>.

And in terms of significant changes to the structure of the market and the structure of our pricing we don't anticipate that.

Yes, I mean, I think a lot of those timelines have kind of been pushed already so we make the decisions based on the information we have at hand, but it's.

Other than that it's difficult to know what's going to happen when.

I think the thing to keep in mind is this is this is a big and very important market and it's important that any kind of changes happened slowly incrementally.

And with the ability to anticipate kind of how the market will behave and so you can expect us to be good players as far as all that goes.

Understood. Thank you.

Your next question comes from the line of Surinder <unk> with Jefferies. Your line is open.

Thank you.

The first question is just around FICO World 23.

Conversations that you have with clients there.

How quickly do those conversations translate into signed contracts and then eventually revenues and related to that.

Our biggest source of new customers is that for you.

So great question. Thanks Terry.

It's a tremendous source of.

Business for us with existing customers and with new customers.

The speed with which it translates into business.

Is.

It's actually quite a large continuum, we have deals that get signed at FICO World. I mean, we obviously try to close business on the spot where appropriate, but then theres other things such as go into the pipeline and then we work the pipeline over the subsequent year our pipeline has been getting shorter.

Our pipeline used to be over 400 days were down well below that today and continuing to trend downward which is a good sign.

The thing with FICO World is it's really an opportunity for our customers to talk to other customers.

Who have shared problems shared experience and to really get kind of a real world.

Feedback from customers, who have implemented our software on how it's worked and what it's done for them and what kind of returns they can expect and the timelines for implementation and so on and because of the platform in particular, so successful it's working so well there's a lot of good stories to be told.

And it's obviously way more credible when our customers are telling the story in <unk>.

Acting as reference customers then we're all just selling our wares and so FICO world is a very important event for us to be able to put customers in touch with one another.

And frankly, they do this early.

There to facilitate.

That's helpful.

Then a question about the FHFA timeline forward just switching over to the new mortgage scores.

Any color there in terms of the conversations that youre, having with customers or clients at this point in time.

Just to understand whether the timelines are realistic.

Are things already being engaged at this point, how should we think about the transition period.

I think that it is slightly that.

The timelines will be extended.

There is additional review going on and there's obviously a lot of detail that needs to be worked out that that wasn't compete.

Completely worked out at the time of the announcement and so sorry.

So I think all signs point to a more thoughtful and.

More drawn out timeline.

Thank you.

Your next question comes from the line of Kyle Peterson with Needham Your line is open.

Hey, good afternoon, guys. Thanks for taking the questions.

Just wanted to touch a little bit on the guidance raise and kind of where you guys have been seeing upside.

At least kind of year to date here, particularly on the score side of the business I guess.

Where have.

Things may be been trending a little better.

Unexpected I mean, it seems like mortgage that's been notably strong since go out of that.

Price, but I guess is there anywhere in the guide.

So far where you guys have been kind of tracking above and it's kind of part of what allowed you guys to raise today.

I think what it allows us to raise is just more time has gone by and there's less risk right and we've already banked three quarters, where the numbers so entering the year even at the midway point of the year. There is a lot of questions. I mean, we've gone through the Silicon Valley Bank crisis, we've gone through multiple rate increases there's been.

If I can start of the year.

There is a lot of thought.

Uncertainty and we have three quarters left of uncertainty at this point. So we still got another quarter to go and we'll see but obviously, we've we've generated really good numbers to date and that just gives us more confidence in raising the guidance.

Great.

That's helpful. And then just a follow up really on the platform.

Another quarter of a 50 plus percent year on year growth.

Really impressive to see are you guys seeing.

As your customer net kind of widening it seems like you guys got a lot of traction and with some international banks early but seems like that might be expanding a little bit or.

Other related verticals, but I guess, how should we think about the pipeline and your ability to maintain some of these.

Really robust growth rates for the glass.

The law of large numbers kind of kicks in it makes the comps a little harder.

The growth in platform is coming from both existing customers and new customers and we continue to add.

Enterprise customers is as.

As we as they learn more about what we have to offer and as they talk to their competitors.

And see what's on offer and then once once it's installed once implemented.

Most of our customers find additional uses and wind up increasing volume and increasing use cases over time so.

We're still early days and we're still adding lots of new customers over time in the fullness of time I would expect that.

There'll be more emphasis on the expand piece than the land piece.

But for now it is kind of equal parts, we're seeing both sides of it.

Okay.

I mean, it's a good story.

We have always said that trees don't grow to the sky and we don't anticipate 50% plus growth rates forever, but I will say that I'm very pleased that here. We are in our 15th quarter of very high growth for the platform and with no seeming signs of abatement.

The uptake is tremendous and certainly our potential market the potential use cases, very very large and so I don't think that we have to we're not we're not worried about a law of large numbers yet.

Okay.

That's great to hear thanks, guys nice quarter.

Your next question comes from the line of George Tong with Goldman Sachs. Your line is open.

Hi, Thanks, good afternoon.

Now have several months under your belt from when you raise prices and scores are at the beginning of the year can you provide an update on customer receptivity to overall pricing actions this year.

And what credit volume assumptions for fiscal for Q.

Reflected in your full year guide.

Customer reaction, let me take that one first.

I think that our customers find lots of value in the scores and what they do and recognize that there are tremendous value at the same time, no customer likes prices going up and so as you can imagine when we raise prices we hear about it.

And.

Discussions go on and I think that the numbers speak for themselves our customers are very happy with the offering with the product and what it does for them.

That's kind of how it goes that's how it's going on for many years and I don't expect that to change.

We don't we don't we won't share our assumptions for next quarter.

I think.

And honestly George I think I've talked about this before the way we do this as we roll up all of our numbers and do a forecast and then haircut that with what we're willing to guide so.

As a percentage of the total number we come up with so there's.

Theres a lot of things.

Go into that so it's like running a Monte Carlo simulation simulation right. So we don't have a one set of expectations for the next quarter, but again, we're conservative with the way we guide to make sure that we will exceed.

Got it that's helpful.

And then on the software side, our growth was very strong at 20%. This quarter can you talk a little bit more about what's fueling that growth acceleration.

Particularly in this relatively tough macro environment, how much of the growth reflects large bank adoption of your platform solutions increased use cases increase in usage or other factors. Thank you.

We had some big deals with existing customers and then we also added new customers is really both.

And we do and on the non platform side, we had good volume obviously those numbers look good too right. So they are on the non platform side, we had some good volumes.

Volumes on the Ccs side, and some strong numbers in the Falcon fraud side as well so.

Pretty much strength throughout the portfolio and on the platform side is just the continued expansion with some customers big customers go live this quarter and that's just it's new revenue essentially.

Got it thank you.

Your next question comes from the line of Jeff Mueller with Baird. Your line is open.

Yes. Thank you well, let me just pick up there is there is some thought that the Nam platform.

Smith.

Has some decent growth potential like you saw this quarter and then if you.

Could just maybe address if so why.

<unk>.

Step up in the large renewal was the platform our non platform.

Yes, I mean.

That's hard to say.

I think we had some pent up volumes coming out of the pandemic, where there's some more activity here I don't think the off platform long term.

He is probably going it'd be a significant growth driver for us, but it's nice to see those numbers performed fairly well.

And the license deal.

The licenses so.

So the license deal was that was a legacy business deal that was a that was not in the platform that was a renewal of a legacy deal.

Got it.

Worth noting that it is.

It's probably worth noting that.

Our our our legacy software is installed and it winds up having a very very long life and we just see we see things renewed kind of every three years and it could be renewed 345 times and so I would expect that for our current book of business and the legacy side.

Ed.

We expect continued renewals and we expect to be supporting them and seeing customer interest in those in that software for a very long time to come easily a decade.

And.

And we haven't abandoned the software just to be really clear I mean legacy has kind of a pejorative.

Flavor to it which it should not.

Our legacy software is industry, leading and and it does what it does better than any other software in the market and our customers know it and they love it and we continue to spend money on innovation there we continue to spend money.

R&D to make sure that the functionality is as good as it can possibly be and so.

No.

As Steve said, we don't look to it as a source of growth, but its not shrinking either I mean is it.

A very solid business and just one more thing to add to that so the.

The license deal was a renewal of our term deal. So thats not included so the IRR was driven by volumes essentially on Ccs and other Falcon fraud.

Maintenance and in volume so the the license deals that are termites deals are outside of that.

Got it and then I get that it's early to talk 'twenty for pricing, but maybe if you could just talk about the 23 experience like you said the numbers speak for themselves when they speak loudly.

23, historically high pricing. So just what did you learn from the experience.

Is there the potential that the 23 pricing level could be the new normal going forward. After you.

Have some time under your belt I'm seeing how it resonated.

I think we will have its a little bit early to say and we'll have to see how things unfold, but.

But I think that you can expect continued growth in scores.

And both from contribution from price and contribution from higher volumes that we anticipate next year.

Okay and then just last can you just.

Address.

And if there was any sort of like.

W implement that any change in payment terms or if it's just natural variability and.

What you would expect to kind of.

Up on collections.

Yes, it really is not what it really comes down to for the most part is scores and we accrue the new revenue and it takes a while for the payments to commit right. So youre going to get a little bit of a lag when it jumps up that quickly you have.

It goes up so I think we were asking about that even last quarter about the.

The.

Free cash flow and we're starting to see more of the free cash flow flow through now because.

The AAR from last quarter's flowing through today. So it does take a while for that to because there's such a significant uptick that you. It takes a while for it to flush through.

Got it thank you guys.

And gentlemen, your last question will come from the line of Rajeev <unk> with Morningstar. Your line is open.

Good afternoon, and thank you for taking my question just on the my FICO business, which you've talked about being a $100 million annual business.

First of all how much of that business is kind of consumer monthly subscription versus consumer onetime report and then secondly, how do you think about pricing and pricing elasticity.

Uh huh.

I mean, the bulk of it is subscriber it's like monthly monthly subscription Andy its like any other.

Subscription products will do consumer rates, it's it depends on what youre, what youre selling them and what's involved were included in the package. So we have a really good team that works on that.

Do different packaging at different price points and do a lot of consumer testing. So it's never a static if number one product at one price.

Automatically raised at a certain rate. It really is it's about understanding that consumers are what the consumers are looking for and bundling different services and products and with that and then testing different price points.

I guess historically, how much pricing have you taken in that business.

Yes.

He became a look it that way really because what we do is we end up bundling at different products and with it at a different price point. So it's not it's rarely about a static product. That's sold at increased prices. It's usually you add more functionality to add different teeters with more functionality and more products and services and then you charge more for that.

Okay. Thank you.

I think what's interesting about the business is that almost any consumer who wants to get a free FICO score today can get one I mean from their bank from the I mean, it's relatively easy to get your FICO score and in spite of that we have a lot of consumers are interested in managing it and monitoring it on a regular basis and they come.

And they pay money.

Monthly to subscribe and keep an eye on it and obviously these are the people who are most focused on their financial health and.

Good service for them.

<unk>.

This has been the case now for years, we've been providing free scores for many many years now with open access and it hasnt hurt the Myfico business My FICO business is very strong.

And all there are no further questions I'll turn it back to yourself for closing remarks, Thank you very much.

Great. Thank you very much everyone for joining today. This does conclude our call and we look forward to speaking with you again soon thanks.

And that does conclude the conference call for today, we thank you for your participation and ask that you. Please disconnect your lines.

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Greetings and welcome to the Fair Isaac Corporation quarterly earnings call. During the presentation, all participants will be in a listen only mode. Afterwards, we will conduct a question and answer session at that time. If you have a question. Please press. The one followed by the four on your telephone should you require operator assistance at any time, Please press star <unk>.

As a reminder, this conference is being recorded Wednesday August <unk> 2023, I would now like to turn the conference over to Steve Weber. Please go ahead.

Good afternoon, and thank you for joining <unk> third quarter earnings call.

I'm, Steve Weber, FICO, CFO and I'm joined today by our CEO will Lansing.

Today, we issued a press release that describes financial results compared to the prior year on this call management will also discuss results in comparison to the prior quarter in order to facilitate understanding of the run rate of our business.

Certain statements made in this presentation may be characterized as forward looking under the private Securities Litigation Reform Act of 1095.