Fair Isaac Corporation (FICO) delivered a solid QQ2 2024 performance anchored by continued strength in its Scores and Software franchises, alongside a material uplift in mortgage origination revenue within Scores. Total revenue reached $434 million, up 14% year over year, driven by Scores revenue of $237 million (+19% YoY) and Software revenue of $197 million (+8% YoY). Mortgage originations remained a key growth lever within the Scores segment, up 85% YoY and representing a meaningful share of B2B revenue (46% of B2B and 36% of total Scores). Software momentum was broad-based, with total ARR at $697 million and Platform ARR at $201 million, marking 32% platform growth and 29% of ARR from platform offerings. Net dollar retention remained robust, with total ARR NRR at 112% and Platform NRR at 126%, underscoring strong land-and-expand dynamics.
Profitability improved meaningfully on both GAAP and non-GAAP bases. Q2 GAAP net income rose 28% YoY to $130 million, with GAAP EPS of $5.16, up 29% YoY. Non-GAAP net income was $154 million, or $6.14 per share, up 27% YoY and 29% respectively. Non-GAAP operating margin expanded by roughly 400 basis points to 53%, reflecting ongoing efficiency gains even as R&D investment in the FICO platform remains constructive. Free cash flow was $61.6 million for the quarter, with trailing twelve-month FCF at $457 million, and management reiterated an expectation that free cash flow should accelerate in the next two quarters.
Guidance was raised for the full year, with revenue guidance increased to $1.69 billion and GAAP/net income and earnings per share improvements (GAAP net income $495 million; GAAP EPS $19.70; Non-GAAP net income $573 million; Non-GAAP EPS $22.80). Management noted that the acceleration will come from continued platform adoption, expanding use cases, and a robust pipeline, even as mortgage volumes are expected to remain challenged in the near term. The quarter also featured strategic investments in platform development and ecosystem expansion, including FICO World-related initiatives and an emphasis on an open API framework and marketplace to foster collaboration. Investors should monitor mortgage-originations trends, platform expansion cadence, ARR growth, and the pace of free-cash-flow expansion through the second half of the year.