Mitek Reports Fiscal 2024 Third Quarter Financial Results
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 qua...
SAN DIEGO: 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 | If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter. Related news
Last NewsDronus gets a strategic investment by Eni NextEni's VC company invest in the Italian drone company to develop new solutions for industrial plants monitoring Technology Reply wins the 2024 Oracle Partner Awards - Europe South InnovationOracle recognizes Technology Reply’s ability to develop and deliver pioneering solutions through partnering with Oracle 25 Italian Startups Will Be Present at Expand North Star 2024Scheduled for October, the world's largest startup event will bring together more than 2,000 exhibitors in Dubai, UAE Partitalia: Italian IoT innovation in San FranciscoThe Italian IoT company is in the US for the second phase of CALL4INNOVIT Most readEnterprises Turning to Cloud for Unified AI, Data Platforms$III #AI--Enterprises are turning to the cloud to access the resources they need to execute their AI strategies, according to a new research report from… Dronus gets a strategic investment by Eni NextEni's VC company invest in the Italian drone company to develop new solutions for industrial plants monitoring Technology Reply wins the 2024 Oracle Partner Awards - Europe South InnovationOracle recognizes Technology Reply’s ability to develop and deliver pioneering solutions through partnering with Oracle Data Protection Business Research Report 2023-2030: Development of DPaaS…The "Data Protection - Global Strategic Business Report" has been added to ResearchAndMarkets.com's offering. The global market for Data Protection was… G11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
| ||||