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Mitek Reports Fiscal 2024 Third Quarter Financial Results

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Mitek Systems (NASDAQ: MITK) announced its financial results for Q3 fiscal 2024, reporting a 4% revenue increase to $45.0 million compared to $43.1 million a year ago. GAAP operating income declined to $0.7 million, an operating margin of 2%, down from $1.8 million or 4% a year ago. GAAP net income improved to $0.2 million from a net loss of $0.4 million. Non-GAAP net income rose 27% to $12.0 million, or $0.25 per diluted share.

Cash flow from operations was $13.0 million, down from $16.6 million last year. The company ended the quarter with $133.2 million in cash and investments. Mitek repurchased 819,623 shares at an average price of $12.25 each, totaling $10.0 million. Looking ahead, Mitek revised its full-year guidance, expecting revenue between $169 million and $173 million, reflecting a 1% decrease at the midpoint, and a Non-GAAP operating margin between 23% and 25%.

Mitek Systems (NASDAQ: MITK) ha annunciato i risultati finanziari per il terzo trimestre dell'anno fiscale 2024, registrando un incremento del fatturato del 4%, arrivando a 45,0 milioni di dollari rispetto ai 43,1 milioni di dollari dell'anno scorso. Il reddito operativo GAAP è sceso a 0,7 milioni di dollari, con un margine operativo del 2%, in calo rispetto a 1,8 milioni di dollari o 4% dell'anno precedente. Il reddito netto GAAP è migliorato a 0,2 milioni di dollari rispetto a una perdita netta di 0,4 milioni di dollari. Il reddito netto non-GAAP è aumentato del 27% a 12,0 milioni di dollari, ovvero 0,25 dollari per azione diluita.

Il flusso di cassa dall'operatività è stato di 13,0 milioni di dollari, in calo rispetto ai 16,6 milioni di dollari dell'anno scorso. L'azienda ha concluso il trimestre con 133,2 milioni di dollari in contante e investimenti. Mitek ha riacquistato 819.623 azioni a un prezzo medio di 12,25 dollari ciascuna, per un totale di 10,0 milioni di dollari. Guardando al futuro, Mitek ha rivisto le sue previsioni annuali, aspettandosi ricavi compresi tra 169 milioni e 173 milioni di dollari, riflettendo una diminuzione dell'1% al punto medio, e un margine operativo non-GAAP compreso tra il 23% e il 25%.

Mitek Systems (NASDAQ: MITK) anunció sus resultados financieros para el tercer trimestre del año fiscal 2024, reportando un incremento del 4% en los ingresos, alcanzando los 45,0 millones de dólares en comparación con 43,1 millones de dólares hace un año. El ingreso operativo GAAP disminuyó a 0,7 millones de dólares, con un margen operativo del 2%, bajando desde 1,8 millones de dólares o 4% del año pasado. El ingreso neto GAAP mejoró a 0,2 millones de dólares desde una pérdida neta de 0,4 millones de dólares. El ingreso neto no GAAP aumentó un 27% a 12,0 millones de dólares, o 0,25 dólares por acción diluida.

El flujo de efectivo de las operaciones fue de 13,0 millones de dólares, disminuyendo desde los 16,6 millones de dólares del año pasado. La compañía terminó el trimestre con 133,2 millones de dólares en efectivo y inversiones. Mitek recompró 819,623 acciones a un precio promedio de 12,25 dólares cada una, totalizando 10,0 millones de dólares. De cara al futuro, Mitek revisó su guía para el año completo, esperando ingresos entre 169 millones y 173 millones de dólares, lo que refleja una disminución del 1% en el punto medio, y un margen operativo no GAAP entre el 23% y el 25%.

Mitek 시스템(NASDAQ: MITK)은 2024 회계연도 3분기 재무 결과를 발표하며 매출 4% 증가를 보고하였으며, 이는 작년 4310만 달러에서 4500만 달러로 증가한 수치입니다. GAAP 운영 수익은 180만 달러에서 70만 달러로 감소하였고, 운영 마진은 2%입니다. GAAP 순이익은 40만 달러의 순손실에서 20만 달러로 개선되었습니다. 비GAAP 순이익은 27% 증가하여 1200만 달러, 즉 희석주당 0.25달러에 달했습니다.

운영으로부터의 현금 흐름은 1300만 달러로, 작년의 1660만 달러에서 감소했습니다. 회사는 현금 및 투자로 1억 3320만 달러로 분기를 마감했습니다. Mitek은 평균 가격 12.25달러로 819,623주를 재매입하여 총 1000만 달러를 지출했습니다. 향후 Mitek은 연간 가이던스를 수정하여 매출을 1억 6900만 달러에서 1억 7300만 달러 사이로 예상하고 있으며, 이는 중간 값에서 1% 감소를 반영하며, 비GAAP 운영 마진은 23%에서 25% 사이로 예상하고 있습니다.

Mitek Systems (NASDAQ: MITK) a annoncé ses résultats financiers pour le troisième trimestre de l'exercice fiscal 2024, rapportant une augmentation des revenus de 4%, atteignant 45,0 millions de dollars par rapport à 43,1 millions de dollars l'année dernière. Le revenu opérationnel GAAP a diminué à 0,7 million de dollars, avec une marge opérationnelle de 2%, en baisse par rapport à 1,8 million de dollars ou 4% l'année précédente. Le revenu net GAAP s'est amélioré à 0,2 million de dollars par rapport à une perte nette de 0,4 million de dollars. Le revenu net non-GAAP a augmenté de 27% pour atteindre 12,0 millions de dollars, soit 0,25 dollar par action diluée.

Le flux de trésorerie provenant des opérations s'élevait à 13,0 millions de dollars, en baisse par rapport à 16,6 millions de dollars l'an dernier. L'entreprise a terminé le trimestre avec 133,2 millions de dollars en liquidités et investissements. Mitek a racheté 819 623 actions à un prix moyen de 12,25 dollars chacune, pour un total de 10,0 millions de dollars. En regardant vers l'avenir, Mitek a révisé ses prévisions pour l'année complète, s'attendant à des revenus compris entre 169 millions et 173 millions de dollars, ce qui reflète une baisse de 1% au point médian, et une marge opérationnelle non-GAAP entre 23% et 25%.

Mitek Systems (NASDAQ: MITK) hat seine finanziellen Ergebnisse für das dritte Quartal des Geschäftsjahres 2024 bekannt gegeben und einen Umsatzanstieg von 4% auf 45,0 Millionen Dollar im Vergleich zu 43,1 Millionen Dollar im Vorjahr berichtet. Der GAAP-Betriebsgewinn sank auf 0,7 Millionen Dollar, was einer Betriebsrendite von 2% entspricht, im Vergleich zu 1,8 Millionen Dollar oder 4% im Vorjahr. Der GAAP-Nettoertrag verbesserte sich auf 0,2 Millionen Dollar gegenüber einem Nettoverlust von 0,4 Millionen Dollar. Der Non-GAAP-Nettoertrag stieg um 27% auf 12,0 Millionen Dollar oder 0,25 Dollar pro verwässerter Aktie.

Der Cashflow aus der Betriebstätigkeit betrug 13,0 Millionen Dollar, was einem Rückgang von 16,6 Millionen Dollar im Vorjahr entspricht. Das Unternehmen schloss das Quartal mit 133,2 Millionen Dollar in bar und Investitionen ab. Mitek kaufte 819.623 Aktien zu einem Durchschnittspreis von 12,25 Dollar zurück, was insgesamt 10,0 Millionen Dollar ausmachte. Ausblickend hat Mitek seine Prognose für das Gesamtjahr überarbeitet und erwartet Einnahmen zwischen 169 Millionen und 173 Millionen Dollar, was einen Rückgang von 1% im Mittelwert widerspiegelt, sowie eine Non-GAAP-Betriebsrendite zwischen 23% und 25%.

Positive
  • 4% revenue growth to $45.0 million.
  • Non-GAAP net income increased 27% to $12.0 million, or $0.25 per diluted share.
  • Cash and investments increased to $133.2 million.
  • Repurchased 819,623 shares totaling approximately $10.0 million.
Negative
  • GAAP operating income decreased to $0.7 million with a margin of 2%, down from $1.8 million and a 4% margin.
  • Cash flow from operations decreased to $13.0 million from $16.6 million.
  • Revised full-year revenue guidance predicting a 1% decrease.

Insights

Mitek's Q3 FY2024 results present a mixed picture. While total revenue grew 4% year-over-year to $45.0 million, the company's GAAP operating income declined from $1.8 million to $0.7 million. However, non-GAAP net income increased by 27% to $12.0 million, or $0.25 per diluted share.

The revised full-year guidance is concerning, with expected revenue between $169 million and $173 million, representing a 1% decrease at the midpoint compared to last year. This downward revision, primarily due to challenges in the Identity product segment, suggests potential headwinds in the company's growth trajectory.

Investors should note the strong cash position of $133.2 million and the ongoing share repurchase program, which could provide some support for the stock price in the near term.

Mitek's performance in the digital identity and fraud prevention sector shows signs of strain. The company's Identity product revenue underperformance is a red flag, especially given the growing importance of digital identity solutions in today's market. This suggests Mitek may be losing ground to competitors or facing adoption challenges.

However, the company's Deposits segment is showing strength, indicating a diversified product portfolio that could help weather sector-specific challenges. The upcoming product launches mentioned by the CEO could be important in regaining momentum in the Identity segment.

Investors should closely monitor Mitek's ability to execute its strategic investments and new product rollouts, as these will be key to maintaining its competitive position in the rapidly evolving digital identity landscape.

Mitek's Q3 results and revised guidance reflect broader market dynamics in the digital identity and fraud prevention sector. The company's challenges in the Identity segment may indicate shifting customer preferences or increased competition. However, the growth in Deposits suggests continued demand for secure financial transaction solutions.

The multi-year mobile deposit reorder with a large customer, while beneficial for long-term stability, has created some complexity in year-over-year comparisons. Adjusting for this, the company estimates 5% growth at the midpoint of guidance, which is modest but still positive in a challenging economic environment.

Investors should consider Mitek's performance in the context of broader fintech and cybersecurity trends, as well as its ability to adapt to evolving market demands and technological advancements in digital identity verification.

SAN DIEGO--(BUSINESS WIRE)-- Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, “Mitek” or the “Company”), a global leader in digital identity and fraud prevention, today reported financial results for its third quarter ended June 30, 2024 and revised its previously provided guidance for its 2024 fiscal year ending September 30, 2024.

Fiscal 2024 Third Quarter Financial Highlights

  • Total revenue was $45.0 million, compared to $43.1 million a year ago, or 4% year-over-year growth.
  • GAAP operating income was $0.7 million, an operating margin of 2%, compared to GAAP operating income of $1.8 million, an operating margin of 4% a year ago.
  • GAAP net income was $0.2 million, or $0.00 per diluted share, compared to GAAP net loss of $0.4 million, or $0.01 per diluted share a year ago.
  • Non-GAAP operating income was $11.6 million and non-GAAP operating margin was 26%, compared to non-GAAP operating income of $12.0 million and a non-GAAP operating margin of 28% a year ago.
  • Non-GAAP net income increased 27% to $12.0 million, or $0.25 per diluted share, compared to $9.5 million, or $0.20 per diluted share a year ago.
  • Cash flow from operations was $13.0 million, compared to $16.6 million a year ago.
  • Total cash and investments was $133.2 million at June 30, 2024, an increase of $2.9 million from $130.3 million at March 31, 2024.
  • Mitek repurchased 819,623 shares at an average per share price of $12.25, totaling approximately $10.0 million.

Mitek Executive Chairman and Interim CEO Scott Carter’s Comments

“While we grew total revenue 4% year over year with Deposits leading the way, I am disappointed in our fiscal Q3 Identity product revenue and revenue outlook for fiscal year 2024. Although we had challenges in Identity, which we are addressing, I remain confident that our superior technology, strategic investments and upcoming product launches position us well to drive growth and deliver long-term shareholder value.”

Fiscal 2024 Full Year Guidance

Mitek is revising its previously provided guidance for its fiscal year ending September 30, 2024, as follows:

  • Mitek now expects full-year revenue to be between $169 million and $173 million, a decrease of 1% at the midpoint of the range when compared to last year’s revenue. In fiscal 2023, Mitek signed a large multi-year mobile deposit reorder with one customer that locked in favorable pricing over a four-year period. Due to the unique terms of this contract, Mitek recognized additional license revenue relating to future years of approximately $7 million in fiscal 2023. If the Company backs out the future year revenue of approximately $7 million from its fiscal 2023 revenue and attributes the approximately $2.7 million that would have been attributable to fiscal 2024 to the midpoint of the fiscal 2024 revenue guidance, the Company estimates that it would represent growth of approximately 5% at the midpoint.
  • Mitek now expects its Non-GAAP operating margin for fiscal 2024 to be between 23% and 25%. If the Company adjusts for the impact of the $7 million revenue item as described above, the Company estimates that it would represent a Non-GAAP operating margin of approximately 25% at the midpoint.

Conference Call Information

Mitek management will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the Company’s financial results for its fiscal 2024 third quarter ended June 30, 2024. To access the live call, dial 888-999-5318 (US and Canada) or +1 848-280-6460 (International) and ask to join the Mitek call. A live and archived conference call webcast will also be accessible on the Investor Relations section of the Company’s website at www.miteksystems.com. A phone replay will be available approximately two hours after the end of the call and will remain available for one week. The phone call replay can be accessed by dialing 877-481-4010 (US or Canada) or +1-919-882-2331 (International) and entering the passcode 50966.

About Mitek Systems, Inc.

Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by 99% of U.S. banks for mobile check deposits and 7,900 of the world’s largest organizations, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com. [(MITK-F)]

Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.

Notice Regarding Forward-Looking Statements

Statements contained in this news release relating to the Company or its management’s intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company’s fiscal 2024 guidance, the Company’s ability to address its challenges in Identity and the Company’s superior technology, strategic investments and upcoming product launches positioning the Company well to drive growth and deliver long-term shareholder value, are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company’s ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products, the impact of the Company’s acquisition of HooYu Ltd. including any operational or cultural difficulties associated with the integration of the businesses of Mitek and HooYu Ltd., the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner, the Company’s ability to capitalize on a growing market, quarterly variations in revenue, the profitability of certain sectors of the Company, the performance of the Company’s growth initiatives, the outcome of any pending or threatened litigation, and the timing of the implementation and launch of the Company’s products by the Company’s signed customers.

Additional risks and uncertainties faced by the Company are contained from time to time in the Company’s filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023, as filed with the SEC on March 19, 2024 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC’s website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company’s actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Note Regarding Use of Non-GAAP Financial Measures

This news release contains non-U.S. generally accepted accounting principles (“GAAP”) financial measures for non-GAAP net income, non-GAAP net income per share, non-GAAP operating income, and non-GAAP operating expense that exclude acquisition-related costs and expenses, litigation and other legal costs, executive transition costs, stock compensation expense, non-recurring audit fees, enterprise risk, portfolio positioning and other related costs, restructuring costs and amortization of debt discount and issuance costs. These financial measures are not calculated in accordance with GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company’s operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company’s ongoing operating performance. Further, management and the Board of Directors of the Company utilize these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company’s GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company’s ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company’s underlying business and provides a better understanding of how management plans and measures the Company’s underlying business.

The Company has not provided a reconciliation of its forward outlook for non-GAAP operating margin with its forward-looking GAAP operating margin in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to quantify share-based compensation expense, which is excluded from our non-GAAP operating margin, as it requires additional inputs such as the number of shares granted and market prices that are not ascertainable due to the volatility of the Company’s share price. Additionally, a significant portion of the Company’s operations are in foreign countries and the transactional currencies are primarily Euros and British pound sterling and the Company is not able to predict fluctuations in those currencies without unreasonable efforts.

MITEK SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(amounts in thousands except share data)

 

 

 

 

 

June 30, 2024

 

September 30, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

84,351

 

 

$

58,913

 

Short-term investments

 

38,718

 

 

 

74,700

 

Accounts receivable, net

 

41,609

 

 

 

32,132

 

Contract assets, current portion

 

16,805

 

 

 

18,355

 

Prepaid expenses

 

11,520

 

 

 

3,513

 

Other current assets

 

2,681

 

 

 

2,396

 

Total current assets

 

195,684

 

 

 

190,009

 

Long-term investments

 

10,157

 

 

 

1,304

 

Property and equipment, net

 

2,597

 

 

 

2,829

 

Right-of-use assets

 

2,848

 

 

 

4,140

 

Goodwill and intangible assets

 

181,434

 

 

 

188,222

 

Deferred income tax assets

 

13,268

 

 

 

11,645

 

Contract assets, non-current portion

 

1,793

 

 

 

5,579

 

Other non-current assets

 

1,446

 

 

 

1,647

 

Total assets

$

409,227

 

 

$

405,375

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

6,275

 

 

$

7,589

 

Accrued payroll and related taxes

 

10,889

 

 

 

10,554

 

Accrued interest payable

 

500

 

 

 

305

 

Income tax payables

 

132

 

 

 

4,329

 

Deferred revenue, current portion

 

23,746

 

 

 

17,360

 

Lease liabilities, current portion

 

747

 

 

 

1,902

 

Acquisition-related contingent consideration

 

 

 

 

7,976

 

Restructuring accrual

 

42

 

 

 

 

Other current liabilities

 

1,577

 

 

 

1,482

 

Total current liabilities

 

43,908

 

 

 

51,497

 

Convertible senior notes

 

141,531

 

 

 

135,516

 

Deferred revenue, non-current portion

 

1,257

 

 

 

957

 

Lease liabilities, non-current portion

 

2,409

 

 

 

2,867

 

Deferred income tax liabilities

 

6,696

 

 

 

6,476

 

Other non-current liabilities

 

3,790

 

 

 

2,874

 

Total liabilities

 

199,591

 

 

 

200,187

 

Stockholders’ equity:

 

 

 

Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding

 

 

 

 

 

Common stock, $0.001 par value, 120,000,000 shares authorized, 46,148,999 and 45,591,199 issued and outstanding, as of June 30, 2024 and September 30, 2023, respectively

 

46

 

 

 

46

 

Additional paid-in capital

 

244,110

 

 

 

228,691

 

Accumulated other comprehensive loss

 

(9,874

)

 

 

(14,237

)

Accumulated deficit

 

(24,646

)

 

 

(9,312

)

Total stockholders’ equity

 

209,636

 

 

 

205,188

 

Total liabilities and stockholders’ equity

$

409,227

 

$

405,375

MITEK SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(amounts in thousands except per share data)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

 

 

 

 

 

 

Software and hardware

$

22,662

 

 

$

21,447

 

 

$

63,531

 

 

$

73,083

 

Services and other

 

22,314

 

 

 

21,623

 

 

 

65,330

 

 

 

61,813

 

Total revenue

 

44,976

 

 

 

43,070

 

 

 

128,861

 

 

 

134,896

 

Operating costs and expenses

 

 

 

 

 

 

 

Cost of revenue—software and hardware (exclusive of depreciation & amortization)

 

54

 

 

 

428

 

 

 

123

 

 

 

816

 

Cost of revenue—services and other (exclusive of depreciation & amortization)

 

6,428

 

 

 

5,284

 

 

 

18,108

 

 

 

15,863

 

Selling and marketing

 

10,354

 

 

 

10,296

 

 

 

31,231

 

 

 

29,434

 

Research and development

 

9,982

 

 

 

7,461

 

 

 

28,569

 

 

 

22,504

 

General and administrative

 

12,604

 

 

 

11,588

 

 

 

43,085

 

 

 

30,126

 

Amortization and acquisition-related costs

 

3,750

 

 

 

6,207

 

 

 

11,581

 

 

 

15,302

 

Restructuring costs

 

1,070

 

 

 

14

 

 

 

1,648

 

 

 

2,000

 

Total operating costs and expenses

 

44,242

 

 

 

41,278

 

 

 

134,345

 

 

 

116,045

 

Operating income (loss)

 

734

 

 

 

1,792

 

 

 

(5,484

)

 

 

18,851

 

Interest expense

 

2,329

 

 

 

2,362

 

 

 

6,895

 

 

 

6,662

 

Other income (expense), net

 

1,436

 

 

 

925

 

 

 

4,268

 

 

 

1,719

 

Income (loss) before income taxes

 

(159

)

 

 

355

 

 

 

(8,111

)

 

 

13,908

 

Income tax benefit (provision)

 

375

 

 

 

(783

)

 

 

2,816

 

 

 

(4,437

)

Net income (loss)

$

216

 

 

$

(428

)

 

$

(5,295

)

 

$

9,471

 

Net income (loss) per share—basic

$

0.00

 

 

$

(0.01

)

 

$

(0.11

)

 

$

0.21

 

Net income (loss) per share—diluted

$

0.00

 

 

$

(0.01

)

 

$

(0.11

)

 

$

0.20

 

Shares used in calculating net income (loss) per share—basic

 

47,017

 

 

 

46,002

 

 

 

46,764

 

 

 

45,625

 

Shares used in calculating net income (loss) per share—diluted

 

48,307

 

 

 

46,473

 

 

 

47,792

 

 

 

46,210

 

MITEK SYSTEMS, INC.

STOCK-BASED COMPENSATION EXPENSE

(Unaudited)

(amounts in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cost of revenue

$

194

 

$

124

 

$

447

 

$

316

Selling and marketing

 

818

 

 

 

885

 

 

 

2,579

 

 

 

2,423

 

Research and development

 

1,344

 

 

 

644

 

 

 

3,751

 

 

 

2,097

 

General and administrative

 

1,229

 

 

 

991

 

 

 

4,124

 

 

 

2,954

 

Total stock-based compensation expense

$

3,585

 

 

$

2,644

 

 

$

10,901

 

 

$

7,790

 

MITEK SYSTEMS, INC.

DISAGGREGATION OF REVENUE

(Unaudited)

(amounts in thousands)

 

 

Three Months Ended June 30,

 

 

 

Nine Months Ended June 30,

 

 

 

2024

 

% of Total

 

2023

 

% of Total

 

2024

 

% of Total

 

2023

 

% of Total

Major product category

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits software and hardware

$

21,793

 

74

%

 

$

18,300

 

74

%

 

$

58,335

 

73

%

 

$

64,979

 

77

%

Deposits services and other

 

7,493

 

26

%

 

 

6,504

 

26

%

 

 

21,539

 

27

%

 

 

18,866

 

23

%

Deposits revenue

 

29,286

 

 

 

 

24,804

 

 

 

 

79,874

 

 

 

 

83,845

 

 

Identity verification software and hardware

 

869

 

6

%

 

 

3,147

 

17

%

 

 

5,196

 

11

%

 

 

8,104

 

16

%

Identity verification services and other

 

14,821

 

94

%

 

 

15,119

 

83

%

 

 

43,791

 

89

%

 

 

42,947

 

84

%

Identity verification revenue

 

15,690

 

 

 

 

18,266

 

 

 

 

48,987

 

 

 

 

51,051

 

 

Total revenue

$

44,976

 

 

 

$

43,070

 

 

 

$

128,861

 

 

 

$

134,896

 

 

MITEK SYSTEMS, INC.

NON-GAAP NET INCOME RECONCILIATION

(Unaudited)

(amounts in thousands except per share data)

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income (loss)

$

216

 

 

$

(428

)

 

$

(5,295

)

 

$

9,471

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Acquisition-related costs and expenses(1)

 

3,749

 

 

 

6,207

 

 

 

11,581

 

 

 

15,302

 

Litigation and other legal costs(2)

 

157

 

 

 

393

 

 

 

3,244

 

 

 

1,119

 

Executive transition costs

 

1,265

 

 

 

91

 

 

 

2,033

 

 

 

672

 

Stock-based compensation expense

 

3,585

 

 

 

2,644

 

 

 

10,901

 

 

 

7,790

 

Non-recurring audit fees

 

1,014

 

 

 

812

 

 

 

5,025

 

 

 

2,185

 

Enterprise risk, portfolio positioning and other related costs(3)

 

 

 

 

 

 

 

996

 

 

 

 

Restructuring costs(4)

 

1,070

 

 

 

14

 

 

 

1,648

 

 

 

2,000

 

Amortization of debt discount and issuance costs

 

2,081

 

 

 

1,909

 

 

 

6,057

 

 

 

5,609

 

Income tax effect of pre-tax adjustments

 

(1,880

)

 

 

(3,415

)

 

 

(9,274

)

 

 

(9,113

)

Cash tax difference(5)

 

740

 

 

 

1,243

 

 

 

2,939

 

 

 

2,410

 

Non-GAAP net income

$

11,997

 

 

$

9,470

 

 

$

29,855

 

 

$

37,445

 

Non-GAAP income per share—basic

$

0.26

 

 

$

0.21

 

 

$

0.64

 

 

$

0.82

 

Non-GAAP income per share—diluted

$

0.25

 

 

$

0.20

 

 

$

0.62

 

 

$

0.81

 

Shares used in calculating non-GAAP net income per share—basic

 

47,017

 

 

 

46,002

 

 

 

46,764

 

 

 

45,625

 

Shares used in calculating non-GAAP net income per share—diluted

 

48,307

 

 

 

46,473

 

 

 

47,792

 

 

 

46,210

 

(1)

Amortization of intangible assets recognized primarily from the ID R&D and HooYu acquisitions and the change in fair value of acquisition-related contingent consideration.

(2)

During the three and nine month periods ended December 31, 2023 and June 30, 2024, our legal team used third party legal experts to perform and provide advice regarding a variety of activities including intellectual property litigation matters and risk analysis and in providing support for customers in their litigation, matters and options related to getting our SEC filings current, the process for a potential delisting from the Nasdaq Capital Market, ongoing litigation support, and various other projects.

(3)

During the nine months ended June 30, 2024, we used three third party experts to evaluate our product portfolio positioning, competitive landscape, enterprise risk and other related analyses.

(4)

Restructuring costs consist of employee severance obligations and other related costs. Restructuring costs were $1.6 million in the nine months ended June 30, 2024 and were related to expenses incurred to relocate employees and a restructuring that occurred in the third quarter of fiscal 2024. Restructuring costs were $2.0 million in the nine months ended June 30, 2023 and were related to a restructuring plan that was initially implemented in June and November 2022.

(5)

The Company’s non-GAAP net income is calculated using a cash tax rate of 13% in fiscal 2024 and 23% in fiscal 2023. The estimated cash tax rate is the estimated annual tax payable on the Company’s tax returns as a percentage of estimated annual non-GAAP pre-tax net income. The Company uses an estimated cash tax rate to adjust for the historical variation in the effective book tax rate associated with the reversal of valuation allowances, and the utilization of research and development tax credits which currently have an overall effect of reducing taxes payable. The Company believes that the cash tax rate provides a more transparent view of the Company’s operating results. The Company’s effective tax rate used for the purposes of calculating GAAP net income for fiscal 2024 and 2023 was 35% and 32%, respectively.

MITEK SYSTEMS, INC.

NON-GAAP OPERATING INCOME RECONCILIATION

(Unaudited)

(amounts in thousands)

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

GAAP operating income

$

734

 

 

$

1,792

 

 

$

(5,484

)

 

$

18,851

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Acquisition-related costs and expenses

 

3,749

 

 

 

6,207

 

 

 

11,581

 

 

 

15,302

 

Litigation and other legal costs

 

157

 

 

 

393

 

 

 

3,244

 

 

 

1,119

 

Executive transition costs

 

1,265

 

 

 

91

 

 

 

2,033

 

 

 

672

 

Stock-based compensation expense

 

3,585

 

 

 

2,644

 

 

 

10,901

 

 

 

7,790

 

Non-recurring audit fees

 

1,014

 

 

 

812

 

 

 

5,025

 

 

 

2,185

 

Enterprise risk, portfolio positioning and other related costs

 

 

 

 

 

 

 

996

 

 

 

 

Restructuring costs

 

1,070

 

 

 

14

 

 

 

1,648

 

 

 

2,000

 

Non-GAAP operating income

$

11,574

 

 

$

11,953

 

 

$

29,944

 

 

$

47,919

 

 

 

 

 

 

 

 

 

Total Revenue

$

44,976

 

 

$

43,070

 

 

$

128,861

 

 

$

134,896

 

Non-GAAP operating margin

 

26

%

 

 

28

%

 

 

23

%

 

 

36

%

MITEK SYSTEMS, INC.

SUPPLEMENTAL RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS

(Unaudited)

(amounts in thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Selling and marketing

$

10,354

 

$

10,296

 

$

31,231

 

$

29,434

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense

 

818

 

 

 

885

 

 

 

2,579

 

 

 

2,423

 

Non-GAAP Selling and marketing

$

9,536

 

 

$

9,411

 

 

$

28,652

 

 

$

27,011

 

 

 

 

 

 

 

 

 

Research and development

$

9,982

 

 

$

7,461

 

 

$

28,569

 

 

$

22,504

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense

 

1,344

 

 

 

644

 

 

 

3,751

 

 

 

2,097

 

Non-GAAP Research and development

$

8,638

 

 

$

6,817

 

 

$

24,818

 

 

$

20,407

 

 

 

 

 

 

 

 

 

General and administrative

$

12,604

 

 

$

11,588

 

 

$

43,085

 

 

$

30,126

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

Stock-based compensation expense

 

1,229

 

 

 

991

 

 

 

4,124

 

 

 

2,954

 

Litigation and other legal costs

 

157

 

 

 

393

 

 

 

3,244

 

 

 

1,119

 

Executive transition costs

 

1,265

 

 

 

91

 

 

 

2,033

 

 

 

672

 

Non-recurring audit fees

 

1,014

 

 

 

812

 

 

 

5,025

 

 

 

2,185

 

Enterprise risk, portfolio positioning and other related costs

 

 

 

 

 

 

 

996

 

 

 

 

Non-GAAP General and administrative

$

8,939

 

 

$

9,301

 

 

$

27,663

 

 

$

23,196

 

 

 

 

 

 

 

 

 

Total Non-GAAP Operating Expense

$

27,113

 

 

$

25,529

 

 

$

81,133

 

 

$

70,614

 

 

Investor Contact:

Todd Kehrli or Jim Byers

MKR Investor Relations, Inc.

mitk@mkr-group.com

Source: Mitek Systems, Inc.

FAQ

What were Mitek's revenue and net income for Q3 fiscal 2024?

Mitek reported revenue of $45.0 million and GAAP net income of $0.2 million for Q3 fiscal 2024.

What is Mitek's revised full-year revenue guidance for fiscal 2024?

Mitek's revised full-year revenue guidance for fiscal 2024 is between $169 million and $173 million.

How much did Mitek's non-GAAP net income increase in Q3 fiscal 2024?

Mitek's non-GAAP net income increased by 27% to $12.0 million in Q3 fiscal 2024.

What was Mitek's operating margin for Q3 fiscal 2024?

Mitek's GAAP operating margin for Q3 fiscal 2024 was 2%, and the non-GAAP operating margin was 26%.

How many shares did Mitek repurchase in Q3 fiscal 2024?

Mitek repurchased 819,623 shares at an average price of $12.25 per share in Q3 fiscal 2024.

Mitek Systems, Inc.

NASDAQ:MITK

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417.64M
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8.93%
Software - Application
Computer Peripheral Equipment, Nec
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United States of America
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