Fair Isaac : Regulation G Disclosure

FAIR ISAAC CORPORATION

Supplemental Non-GAAP Financial Measures (In thousands except per share data)

(Unaudited)

The following is a reconciliation of the company's GAAP to Non-GAAP items.

		Fiscal Year		Quarter Ended
Operating Income		2020		December 31, 2019
Operating income, as reported	$	51,882	$	51,882
Amortization of intangible assets		1,796		1,796
Restructuring and acquisition-related		3,104		3,104
Stock-based compensation expense		23,145		23,145
Non-GAAP operating income (segment operating income)	$	79,927	$	79,927
Revenues	$	298,504	$	298,504
Non-GAAP operating margin		27%		27%
Net Income	$	54,921		54,921
Net income, as reported
Amortization of intangible assets		1,796		1,796
Restructuring and acquisition-related		3,104		3,104
Stock-based compensation expense		23,145		23,145
Income tax adjustments		(6,762)		(6,762)
Excess tax benefit		(22,018)		(22,018)
Non-GAAP net income	$	54,186	$	54,186
Revenues	$	298,504	$	298,504
Non-GAAP net margin		18%		18%

	Fiscal Year		Quarter Ended		Quarter Ended		Quarter Ended		Quarter Ended
	2019		September 30, 2019		June 30, 2019		March 31, 2019		December 31, 2018
$	253,548	$	70,287	$	85,708	$	48,549	$	49,004
	6,126		1,673		1,448		1,503		1,502
	-		-		-		-		-
	82,973		21,042		19,595		20,482		21,854
$	342,647	$	93,002	$	106,751	$	70,534	$	72,360
$	1,160,083	$	305,344	$	314,249	$	278,234	$	262,256
	30%		30%		34%		25%		28%
$	192,124		54,584		64,152		33,381		40,007
	6,126		1,673		1,448		1,503		1,502
	-		-		-		-		-
	82,973		21,042		19,595		20,482		21,854
	(22,940)		(5,836)		(5,290)		(5,594)		(6,219)
	(30,666)		(10,643)		(4,289)		(2,501)		(13,233)
$	227,617	$	60,820	$	75,616	$	47,271	$	43,911
$	1,160,083	$	305,344	$	314,249	$	278,234	$	262,256
	20%		20%		24%		17%		17%

Diluted Earnings per Share	$	1.82	$	1.82	$	6.34	$	1.80	$	2.12	$	1.10	$	1.32
Diluted earnings per share, as reported
Amortization of intangible assets		0.06		0.06			0.20		0.06		0.05		0.05		0.05
Restructuring and acquisition-related		0.10		0.10			-		-		-		-		-
Stock-based compensation expense		0.77		0.77			2.74		0.69		0.65		0.68		0.72
Income tax adjustments		(0.22)		(0.22)			(0.76)		(0.19)		(0.17)		(0.18)		(0.20)
Excess tax benefit		(0.73)		(0.73)			(1.01)		(0.35)		(0.14)		(0.08)		(0.44)
Non-GAAP diluted earnings per share	$	1.80	$	1.80		$	7.51	$	2.01	$	2.50	$	1.56	$	1.45
Reconciliation to Adjusted EBITDA	$	54,921	$	54,921	$	192,124	$	54,584	$	64,152	$	33,381	$	40,007
Net income, as reported
Interest expense, net		9,768		9,768			39,752		9,957		10,111		10,008		9,676
Provision for income taxes		(13,026)		(13,026)			23,948		6,304		13,902		6,593		(2,851)
Other expense (income), net		219		219			(2,276)		(558)		(2,457)		(1,433)		2,172
Amortization of intangible assets		1,796		1,796			6,126		1,673		1,448		1,503		1,502
Depreciation		5,676		5,676			24,205		5,887		6,179		5,995		6,144
Stock-based compensation expense		23,145		23,145			82,973		21,042		19,595		20,482		21,854
Restructuring and acquisition-related		3,104		3,104			-		-		-		-		-
Adjusted EBITDA	$	85,603	$	85,603		$	366,852	$	98,889	$	112,930	$	76,529	$	78,504
Revenues	$	298,504	$	298,504	$	1,160,083	$	305,344	$	314,249	$	278,234	$	262,256
Adjusted EBITDA as a percent of revenues		29%		29%			32%		32%		36%		28%		30%
Reconciliation To Free Cash Flow	$	60,365	$	60,365	$	260,350	$	95,414	$	68,290	$	47,789	$	48,857
Net cash provided by operating activities
Reduced by cash flow items
Capital expenditures		6,500		6,500			23,981		5,811		7,526		4,170		6,474
Free cash flow	$	53,865	$	53,865		$	236,369	$	89,603	$	60,764	$	43,619	$	42,383
Revenues	$	298,504	$	298,504	$	1,160,083	$	305,344	$	314,249	$	278,234	$	262,256
Free cash flow as a percent of revenues		18%		18%			20%		29%		19%		16%		16%

Note: The numbers may not sum to total due to rounding.