From 2023… still long FICO

$Fair Isaac(FICO)$

Business model: Fair lsaac, commonly known as FICO, specialises in providing credit scores. The FICO scoreis an industry benchmark for establishing creditworthiness and is a widely used by fnancial institutions. The offer a range of products and services to help businesses make data-driven decisions, manage risk, prevent fraud,and optimise operations.

Diversification: Approximately 82% of their revenue comes from the Americas, 11% from EMEA and 7% from Asia Pacifc.

Growth: FICO's drivers for growth over the next decade include increasing demand for analytics and expansioninto new markets. FICO is well positioned to utilise big data and Al to leverage its expertise in predictive modelling to meet growing demand. FICO traditionally services the fnancial sector (banking and insurance),but is increasingly grow its client base in multiple other industries, including retail and healthcare

Competitive advantages: FICO primarily benefts from network effects. As more lenders and financial institutions use their scores, they become more widely recognised, accepted and valuable. The more data they accumulate, the benefit FICO can fine-tune their models, leading to better credit assessments. As more businesses adopt FICO scores, there have been increasing opportunities for cross-selling and up-selling. FICO also benefits from switching costs, as its fnancial institution clients are often slow to change.

10yr FCF per share growth: 20%

10yr average FCF ROC: 25%