Mitek Delivers Record Fiscal Second Quarter Revenue, Up 35% Year Over Year; Reiterates Fiscal Full Year Guidance
- Strong Q2 results with 35% YoY increase in total revenue
- Total revenue for H1 increased 38% YoY
- Revenue growth expected to moderate in H2
Fiscal 2023 Second Quarter Financial Highlights
-
Total revenue increased
35% year over year to in a record second quarter.$45.3 million -
GAAP net income was
, or$4.4 million per diluted share.$0.10 -
Non-GAAP net income was
, or$13.1 million per diluted share.$0.29 -
Cash flow from operations was
.$6.3 million -
Total cash and investments were
on March 31, 2023.$114.5 million
Fiscal 2023 First Six Months Financial Highlights
-
Total revenue increased
38% year over year to .$91.0 million -
GAAP net income was
, or$9.2 million per diluted share.$0.20 -
Non-GAAP net income was
, or$27.4 million per diluted share.$0.60 -
Cash flow from operations was
.$11.6 million
Mitek CEO Max Carnecchia’s Comments
"Our strong performance in the second quarter highlights the market-leading position of our solutions in the large and growing markets we address. Our Identity revenue was up
Fiscal 2023 Full Year Guidance
Mitek is reiterating its fiscal 2023 guidance for the year ending September 30, 2023, expecting revenue to be in the range of
Conference Call Information
Mitek management will host a conference call and live webcast for analysts and investors today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the Company’s financial results for the three and six months ending March 31, 2023. To access the live call, dial 877-270-2148 (US and
A live and archived webcast of the conference call will be accessible on the Investor Relations section of the Company’s website at www.miteksystems.com. In addition, a phone replay will be available approximately two hours following the end of the call, and it will remain available for one week. The phone call replay can be accessed by dialing 877-344-7529 (US or
About Mitek Systems, Inc.
Mitek (NASDAQ: MITK) is a global leader in digital identity and digital fraud prevention, with technology 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. More than 7,800 organizations use Mitek to enable trust and convenience for mobile check deposit, new account opening and more. Learn more at www.miteksystems.com. [(MITK-F)]
Follow Mitek on LinkedIn, Twitter 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 long-term prospects and market opportunities and the effects of the macroeconomic environment 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
Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-
MITEK SYSTEMS, INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Unaudited) |
|||||||
(amounts in thousands except share data) |
|||||||
|
March 31, 2023 |
|
September 30, 2022 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
83,047 |
|
|
$ |
32,059 |
|
Short-term investments |
|
26,711 |
|
|
|
58,268 |
|
Accounts receivable, net |
|
35,132 |
|
|
|
27,874 |
|
Contract assets, current portion |
|
8,845 |
|
|
|
6,273 |
|
Prepaid expenses |
|
2,789 |
|
|
|
2,000 |
|
Other current assets |
|
2,849 |
|
|
|
2,622 |
|
Total current assets |
|
159,373 |
|
|
|
129,096 |
|
Long-term investments |
|
4,767 |
|
|
|
10,633 |
|
Property and equipment, net |
|
3,152 |
|
|
|
3,493 |
|
Right-of-use assets |
|
4,625 |
|
|
|
5,155 |
|
Goodwill and intangible assets |
|
203,598 |
|
|
|
195,942 |
|
Deferred income tax assets |
|
16,965 |
|
|
|
10,245 |
|
Contract assets, non-current portion |
|
6,839 |
|
|
|
4,218 |
|
Other non-current assets |
|
1,645 |
|
|
|
1,628 |
|
Total assets |
$ |
400,964 |
|
|
$ |
360,410 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
5,453 |
|
|
$ |
4,974 |
|
Accrued payroll and related taxes |
|
7,892 |
|
|
|
10,393 |
|
Accrued liabilities |
|
1,493 |
|
|
|
1,155 |
|
Accrued interest payable |
|
219 |
|
|
|
202 |
|
Income tax payables |
|
8,606 |
|
|
|
194 |
|
Deferred revenue, current portion |
|
11,956 |
|
|
|
13,394 |
|
Lease liabilities, current portion |
|
2,023 |
|
|
|
2,110 |
|
Acquisition-related contingent consideration |
|
6,070 |
|
|
|
5,920 |
|
Restructuring accrual |
|
— |
|
|
|
901 |
|
Other current liabilities |
|
1,326 |
|
|
|
1,254 |
|
Total current liabilities |
|
45,038 |
|
|
|
40,497 |
|
Convertible senior notes |
|
131,670 |
|
|
|
127,970 |
|
Deferred revenue, non-current portion |
|
1,211 |
|
|
|
1,775 |
|
Lease liabilities, non-current portion |
|
3,487 |
|
|
|
4,106 |
|
Deferred income tax liabilities, non current portion |
|
15,670 |
|
|
|
14,132 |
|
Other non-current liabilities |
|
1,587 |
|
|
|
1,613 |
|
Total liabilities |
|
198,663 |
|
|
|
190,093 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
45 |
|
|
|
44 |
|
Additional paid-in capital |
|
222,933 |
|
|
|
216,493 |
|
Accumulated other comprehensive loss |
|
(11,854 |
) |
|
|
(28,219 |
) |
Accumulated deficit |
|
(8,823 |
) |
|
|
(18,001 |
) |
Treasury stock, at cost, no shares and 7,773 shares as of March 31, 2023 and September 30, 2022, respectively |
|
— |
|
|
|
— |
|
Total stockholders’ equity |
|
202,301 |
|
|
|
170,317 |
|
Total liabilities and stockholders’ equity |
$ |
400,964 |
|
|
$ |
360,410 |
|
MITEK SYSTEMS, INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(amounts in thousands except per share data) |
|||||||||||||||
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
||||||||
Software and hardware |
$ |
25,260 |
|
|
$ |
18,150 |
|
|
$ |
51,636 |
|
|
$ |
33,595 |
|
Services and other |
|
20,054 |
|
|
|
15,360 |
|
|
|
39,381 |
|
|
|
32,387 |
|
Total revenue |
|
45,314 |
|
|
|
33,510 |
|
|
|
91,017 |
|
|
|
65,982 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
||||||||
Cost of revenue—software and hardware (exclusive of depreciation & amortization) |
|
219 |
|
|
|
310 |
|
|
|
388 |
|
|
|
688 |
|
Cost of revenue—services and other (exclusive of depreciation & amortization) |
|
5,679 |
|
|
|
4,141 |
|
|
|
10,579 |
|
|
|
8,318 |
|
Selling and marketing |
|
9,623 |
|
|
|
9,206 |
|
|
|
19,138 |
|
|
|
17,644 |
|
Research and development |
|
7,373 |
|
|
|
7,095 |
|
|
|
15,043 |
|
|
|
13,502 |
|
General and administrative |
|
10,059 |
|
|
|
6,073 |
|
|
|
18,538 |
|
|
|
12,037 |
|
Amortization and acquisition-related costs |
|
4,274 |
|
|
|
4,005 |
|
|
|
9,095 |
|
|
|
6,284 |
|
Restructuring costs |
|
210 |
|
|
|
— |
|
|
|
1,986 |
|
|
|
— |
|
Total operating costs and expenses |
|
37,437 |
|
|
|
30,830 |
|
|
|
74,767 |
|
|
|
58,473 |
|
Operating income |
|
7,877 |
|
|
|
2,680 |
|
|
|
16,250 |
|
|
|
7,509 |
|
Interest expense |
|
2,163 |
|
|
|
2,040 |
|
|
|
4,300 |
|
|
|
4,048 |
|
Other income (expense), net |
|
454 |
|
|
|
(225 |
) |
|
|
794 |
|
|
|
(90 |
) |
Income before income taxes |
|
6,168 |
|
|
|
415 |
|
|
|
12,744 |
|
|
|
3,371 |
|
Income tax benefit (provision) |
|
(1,720 |
) |
|
|
20 |
|
|
|
(3,566 |
) |
|
|
188 |
|
Net income |
$ |
4,448 |
|
|
$ |
435 |
|
|
$ |
9,178 |
|
|
$ |
3,559 |
|
Net income per share—basic |
$ |
0.10 |
|
|
$ |
0.01 |
|
|
$ |
0.20 |
|
|
$ |
0.08 |
|
Net income per share—diluted |
$ |
0.10 |
|
|
$ |
0.01 |
|
|
$ |
0.20 |
|
|
$ |
0.08 |
|
Shares used in calculating net income per share—basic |
|
45,377 |
|
|
|
44,775 |
|
|
|
45,317 |
|
|
|
44,795 |
|
Shares used in calculating net income per share—diluted |
|
45,634 |
|
|
|
46,097 |
|
|
|
45,634 |
|
|
|
46,206 |
|
MITEK SYSTEMS, INC. |
|||||||||||||||
NON-GAAP NET INCOME RECONCILIATION |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(amounts in thousands except per share data) |
|||||||||||||||
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
4,448 |
|
|
$ |
435 |
|
|
$ |
9,178 |
|
|
$ |
3,559 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
||||||||
Amortization and acquisition-related costs(2) |
|
4,274 |
|
|
|
4,366 |
|
|
|
9,095 |
|
|
|
6,646 |
|
Intellectual property litigation costs |
|
473 |
|
|
|
286 |
|
|
|
725 |
|
|
|
660 |
|
Executive transition costs |
|
581 |
|
|
|
— |
|
|
|
581 |
|
|
|
— |
|
Stock compensation expense |
|
2,714 |
|
|
|
3,298 |
|
|
|
5,161 |
|
|
|
6,429 |
|
Non-recurring audit fees |
|
633 |
|
|
|
— |
|
|
|
1,373 |
|
|
|
— |
|
Restructuring costs |
|
210 |
|
|
|
— |
|
|
|
1,986 |
|
|
|
— |
|
Amortization of debt discount and issuance costs |
|
1,857 |
|
|
|
1,738 |
|
|
|
3,700 |
|
|
|
3,453 |
|
Income tax effect of pre-tax adjustments |
|
(2,705 |
) |
|
|
(2,422 |
) |
|
|
(5,697 |
) |
|
|
(4,297 |
) |
Cash tax difference(1) |
|
599 |
|
|
|
1,957 |
|
|
|
1,262 |
|
|
|
3,373 |
|
Non-GAAP net income |
|
13,084 |
|
|
|
9,658 |
|
|
|
27,364 |
|
|
|
19,823 |
|
Non-GAAP income per share—basic |
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.60 |
|
|
$ |
0.44 |
|
Non-GAAP income per share—diluted |
$ |
0.29 |
|
|
$ |
0.21 |
|
|
$ |
0.60 |
|
|
$ |
0.43 |
|
Shares used in calculating non-GAAP net income per share—basic |
|
45,377 |
|
|
|
44,775 |
|
|
|
45,317 |
|
|
|
44,795 |
|
Shares used in calculating non-GAAP net income per share—diluted |
|
45,634 |
|
|
|
46,097 |
|
|
|
45,634 |
|
|
|
46,206 |
|
(1) |
The Company’s non-GAAP net income is calculated using a cash tax rate of |
|
(2) |
Included in acquisition-related costs and expenses is |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230914536789/en/
Investor Contact:
Todd Kehrli or Jim Byers
MKR Investor Relations, Inc.
mitk@mkr-group.com
Source: Mitek Systems, Inc.