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Fair Isaac (FICO - Free Report) recently partnered with Prosper, enabling it to extend credit services to around 200K near-prime customers. Prosper extended more than $225 million in credit access to these consumers.
Prosper leverages on FICO Scores to proactively manage credit line changes based on customers’ latest scores. It also proactively mitigates credit risk and meets the increasing credit demand for creditworthy customers based on their monthly updated FICO Scores.
Fair Isaac helps Prosper in mitigating credit risk by providing support in building a risk-based credit framework. Prosper uses FICO Scores and FICO's historical U.S. consumer performance bands to build a comprehensive unit economic model.
Apart from extending credit services, the companies work together to enable borrowers who obtained their personal loan through Prosper to view their FICO Scores for free through the FICO Score Open Access program. This provides transparency and helps customers gain a better understanding of their financial health.
Fair Isaac is riding on a strong product portfolio, providing smarter decision-making capabilities, streamlining operations and improving the overall experience of its partners and clients.
Strong demand for its scores and software solutions is well reflected in its strong net-retention rate of current customers. FICO continues to focus on helping clients maximize their customer experience by improving and expanding client’s solutions.
It has a strong customer base with enterprises like Hewlett Packard (HPE - Free Report) , Telus (TU - Free Report) and Truist Financial (TFC - Free Report) . These companies are adopting FICO’s solutions to improve its business processes.
Hewlett Packard uses FICO Decision Management Suite to help manage a mass of information by modernizing its customer’s operational environment. HPE customers can now easily plug their big data into decision-making methods that positively impact its bottom line.
Telus deployed FICO’s application fraud solution to improve operational efficiency, help manage high volumes and combat the risk of subscription fraud.
Truist Financial adopted FICO Origination Manager and FICO Customer Communication Services solutions to transform its origination processes and improve business lending process for both the bank and its customers.
FICO’s Bright Prospects
Fair Isaac’s revenues reported a 6.5% year-over-year increase and totaled $380.3 million in second-quarter fiscal 2023. Its scores revenues increased by 8% year over year to $198 million.
The company experienced strong growth in its scores business, primarily driven by increased origination revenues. It continues scaling its latest analytic and AI technology to optimize consumer interactions and revolutionize businesses through digital transformation.
FICO raised its guidance for fiscal 2023. It expects total revenues of $1.48 billion, suggesting 5.7% growth from fiscal 2022.
The Zacks Consensus Estimate for third-quarter fiscal revenues is pegged at $380.68 million, indicating 9.09% growth from the year-ago quarter’s reported figure.
The consensus mark for third-quarter fiscal 2023 earnings remained unchanged at $5.32 per share in the past 30 days, indicating a year-over-year rise of 19.02%.
However, shares of FICO have gained 26.3% year to date compared with the Zacks Computer and Technology sector’s increase of 26.6% over the same time frame.
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Fair Isaac's (FICO) FICO Scores Improve Prosper's Services
Fair Isaac (FICO - Free Report) recently partnered with Prosper, enabling it to extend credit services to around 200K near-prime customers. Prosper extended more than $225 million in credit access to these consumers.
Prosper leverages on FICO Scores to proactively manage credit line changes based on customers’ latest scores. It also proactively mitigates credit risk and meets the increasing credit demand for creditworthy customers based on their monthly updated FICO Scores.
Fair Isaac helps Prosper in mitigating credit risk by providing support in building a risk-based credit framework. Prosper uses FICO Scores and FICO's historical U.S. consumer performance bands to build a comprehensive unit economic model.
Apart from extending credit services, the companies work together to enable borrowers who obtained their personal loan through Prosper to view their FICO Scores for free through the FICO Score Open Access program. This provides transparency and helps customers gain a better understanding of their financial health.
Fair Isaac Corporation Price and Consensus
Fair Isaac Corporation price-consensus-chart | Fair Isaac Corporation Quote
Strong Product Portfolio to Aid FICO’s Top Line
Fair Isaac is riding on a strong product portfolio, providing smarter decision-making capabilities, streamlining operations and improving the overall experience of its partners and clients.
Strong demand for its scores and software solutions is well reflected in its strong net-retention rate of current customers. FICO continues to focus on helping clients maximize their customer experience by improving and expanding client’s solutions.
It has a strong customer base with enterprises like Hewlett Packard (HPE - Free Report) , Telus (TU - Free Report) and Truist Financial (TFC - Free Report) . These companies are adopting FICO’s solutions to improve its business processes.
Hewlett Packard uses FICO Decision Management Suite to help manage a mass of information by modernizing its customer’s operational environment. HPE customers can now easily plug their big data into decision-making methods that positively impact its bottom line.
Telus deployed FICO’s application fraud solution to improve operational efficiency, help manage high volumes and combat the risk of subscription fraud.
Truist Financial adopted FICO Origination Manager and FICO Customer Communication Services solutions to transform its origination processes and improve business lending process for both the bank and its customers.
FICO’s Bright Prospects
Fair Isaac’s revenues reported a 6.5% year-over-year increase and totaled $380.3 million in second-quarter fiscal 2023. Its scores revenues increased by 8% year over year to $198 million.
This Zacks Rank #3 (Hold) company’s earnings of $4.78 per share increased 2.1% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company experienced strong growth in its scores business, primarily driven by increased origination revenues. It continues scaling its latest analytic and AI technology to optimize consumer interactions and revolutionize businesses through digital transformation.
FICO raised its guidance for fiscal 2023. It expects total revenues of $1.48 billion, suggesting 5.7% growth from fiscal 2022.
The Zacks Consensus Estimate for third-quarter fiscal revenues is pegged at $380.68 million, indicating 9.09% growth from the year-ago quarter’s reported figure.
The consensus mark for third-quarter fiscal 2023 earnings remained unchanged at $5.32 per share in the past 30 days, indicating a year-over-year rise of 19.02%.
However, shares of FICO have gained 26.3% year to date compared with the Zacks Computer and Technology sector’s increase of 26.6% over the same time frame.