Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Mitek Delivers Record Revenue in Fiscal Third Quarter, Up 24% Year Over Year By: Mitek Systems, Inc. via Business Wire July 28, 2022 at 16:05 PM EDT Mitek Launches MiVIP, the Mitek Verified Identity Platform, During the Third Quarter, Making Digital Access Faster and More Secure Than Ever Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com,“Mitek” or the “Company”), a global leader in digital identity and digital fraud prevention, today reported financial results for its third quarter of fiscal 2022 ended June 30, 2022. Total revenue increased 24% year over year as commerce continues its rapid shift to digital channels. Fiscal Third Quarter 2022 Financial Highlights Total revenue increased 24% year over year to $39.3 million in a record third quarter. GAAP net loss was $0.9 million, or $0.02 per diluted share. Non-GAAP net income was $10.2 million, or $0.23 per diluted share. Total cash and investments were $90.6 million at the end of the quarter. “As consumers transact more business online than ever, identity verification has become essential to safe digital access,” said CEO Max Carnecchia. “In 2021, the combined impact of traditional identity fraud and identity fraud scams cost companies $52 billion and affected 42 million U.S. consumers.1 During the quarter, we launched MiVIP, the Mitek Verified Identity Platform, making digital access faster and more secure than ever while giving companies comprehensive, secure control over their entire customer identity journey, saving them time and money,” Carnecchia continued. “Mitek’s new platform is the culmination of our best technologies, our most recent acquisition, and our ongoing commitment to putting our customers in control of their consumers’ experiences.” “Our customers feel the weight of staggering fraud losses, significant operational costs, and the brand damage associated with identity fraud, all while trying to maintain a seamless customer experience,” said CFO Frank Teruel. “MiVIP provides our customers the tools to quickly deploy and balance these constant tensions.” 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. To access the live call, dial 877-270-2148 (US and Canada) or +1 412-902-6510 (International) and ask to join the Mitek call. 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 access by dialing 877-344-7529 (US or Canada) or 1-412-317-0088 (International) and entering the passcode: 9315135. 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 7,500 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. _________________________ 1 Javelin Strategy - “2022 Identity Fraud Study: The Virtual Background” 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 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, 2021, as filed with the SEC on December 13, 2021 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 and non-GAAP net income per share that exclude acquisition-related costs and expenses, intellectual property litigation costs, executive transition costs, stock compensation expenses, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and the cash tax difference. 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. MITEK SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands except share data) June 30, 2022 September 30, 2021 ASSETS Current assets: Cash and cash equivalents $ 21,522 $ 30,312 Short-term investments 49,531 149,057 Accounts receivable, net 29,672 16,602 Contract assets 5,125 4,080 Prepaid expenses 3,453 1,920 Other current assets 4,634 2,085 Total current assets 113,937 204,056 Long-term investments 19,534 48,051 Property and equipment, net 3,723 3,671 Right-of-use assets 5,503 7,056 Goodwill and intangible assets 215,003 91,830 Deferred income tax assets 11,963 10,511 Convertible senior notes hedge — 48,208 Other non-current assets 5,342 6,310 Total assets $ 375,005 $ 419,693 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 4,200 $ 2,507 Accrued payroll and related taxes 10,173 11,776 Deferred revenue, current portion 13,274 10,381 Lease liabilities, current portion 1,908 1,943 Acquisition-related contingent consideration 4,860 11,050 Restructuring accrual 1,807 — Other current liabilities 7,522 1,552 Total current liabilities 43,744 39,209 Convertible senior notes 126,157 120,918 Embedded conversion derivative — 48,208 Deferred revenue, non-current portion 1,409 955 Lease liabilities, non-current portion 4,789 6,588 Deferred income tax liabilities 20,493 4,117 Other non-current liabilities 2,011 6,868 Total liabilities 198,603 226,863 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, 44,396,263 and 44,168,745 issued and outstanding, as of June 30, 2022 and September 30, 2021, respectively 44 44 Additional paid-in capital 211,087 199,935 Accumulated other comprehensive loss (17,880 ) (943 ) Accumulated deficit (16,849 ) (6,066 ) Treasury stock, at cost, no shares and 7,773 shares as of June 30, 2022 and September 30, 2021, respectively — (140 ) Total stockholders’ equity 176,402 192,830 Total liabilities and stockholders’ equity $ 375,005 $ 419,693 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, 2022 2021 2022 2021 Revenue Software and hardware $ 19,820 $ 16,973 $ 54,545 $ 42,288 Services and other 19,513 14,805 51,975 44,238 Total revenue 39,333 31,778 106,520 86,526 Operating costs and expenses Cost of revenue—software and hardware 508 293 1,196 2,208 Cost of revenue—services and other 4,059 3,117 10,038 9,132 Selling and marketing 11,174 8,133 28,817 24,048 Research and development 9,411 6,946 25,253 19,801 General and administrative 6,667 5,633 18,704 16,409 Amortization and acquisition-related costs 4,492 2,224 9,827 5,576 Restructuring costs 1,807 — 1,807 — Total operating costs and expenses 38,118 26,346 95,642 77,174 Operating income 1,215 5,432 10,878 9,352 Interest expense 2,077 2,223 6,125 3,543 Other income (expense), net 49 80 (48 ) 549 Income (loss) before income taxes (813 ) 3,289 4,705 6,358 Income tax provision (39 ) (304 ) (522 ) (187 ) Net income (loss) $ (852 ) $ 2,985 $ 4,183 $ 6,171 Net income (loss) per share—basic $ (0.02 ) $ 0.07 $ 0.09 $ 0.14 Net income (loss) per share—diluted $ (0.02 ) $ 0.07 $ 0.09 $ 0.14 Shares used in calculating net income (loss) per share—basic 44,591 43,773 44,721 43,145 Shares used in calculating net income (loss) per share—diluted 45,145 45,194 45,793 44,646 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, 2022 2021 2022 2021 Net income (loss) $ (852 ) $ 2,985 $ 4,183 $ 6,171 Non-GAAP adjustments: Amortization and acquisition-related costs(2) 4,492 2,224 10,188 5,576 Intellectual property litigation costs 438 128 1,098 645 Executive transition costs — 428 — 428 Stock compensation expense 3,563 2,867 9,992 8,582 Restructuring costs 1,807 — 1,807 — Amortization of debt discount and issuance costs 1,787 1,933 5,239 3,080 Income tax effect of pre-tax adjustments (3,021 ) (1,743 ) (7,081 ) (4,211 ) Cash tax difference(1) 1,971 1,776 5,764 3,781 Non-GAAP net income 10,185 10,598 31,190 24,052 Non-GAAP income per share—basic $ 0.23 $ 0.24 $ 0.70 $ 0.56 Non-GAAP income per share—diluted $ 0.23 $ 0.23 $ 0.68 $ 0.54 Shares used in calculating non-GAAP net income per share—basic 44,591 43,773 44,721 43,145 Shares used in calculating non-GAAP net income per share—diluted 45,145 45,194 45,793 44,646 (1) The Company’s non-GAAP net income is calculated using a cash tax rate of 3% in both fiscal 2022 and 2021. The estimated cash tax rate is the estimated 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, the utilization of research and development tax credits, and the utilization of loss carryforwards 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 (loss) for the three months ended June 30, 2022 and 2021 was 5% and 9%, respectively. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the nine months ended June 30, 2022 and 2021 was 11% and negative 3%, respectively. (2) Included in acquisition-related costs and expenses is $0.3 million of foreign exchange and investment losses incurred in connection with the acquisition of HooYu Ltd. which is included in other income (expense), net in the consolidated statements of operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20220728006004/en/Contacts Investor Contact: Todd Kehrli or Jim Byers MKR Investor Relations, Inc. mitk@mkr-group.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Mitek Delivers Record Revenue in Fiscal Third Quarter, Up 24% Year Over Year By: Mitek Systems, Inc. via Business Wire July 28, 2022 at 16:05 PM EDT Mitek Launches MiVIP, the Mitek Verified Identity Platform, During the Third Quarter, Making Digital Access Faster and More Secure Than Ever Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com,“Mitek” or the “Company”), a global leader in digital identity and digital fraud prevention, today reported financial results for its third quarter of fiscal 2022 ended June 30, 2022. Total revenue increased 24% year over year as commerce continues its rapid shift to digital channels. Fiscal Third Quarter 2022 Financial Highlights Total revenue increased 24% year over year to $39.3 million in a record third quarter. GAAP net loss was $0.9 million, or $0.02 per diluted share. Non-GAAP net income was $10.2 million, or $0.23 per diluted share. Total cash and investments were $90.6 million at the end of the quarter. “As consumers transact more business online than ever, identity verification has become essential to safe digital access,” said CEO Max Carnecchia. “In 2021, the combined impact of traditional identity fraud and identity fraud scams cost companies $52 billion and affected 42 million U.S. consumers.1 During the quarter, we launched MiVIP, the Mitek Verified Identity Platform, making digital access faster and more secure than ever while giving companies comprehensive, secure control over their entire customer identity journey, saving them time and money,” Carnecchia continued. “Mitek’s new platform is the culmination of our best technologies, our most recent acquisition, and our ongoing commitment to putting our customers in control of their consumers’ experiences.” “Our customers feel the weight of staggering fraud losses, significant operational costs, and the brand damage associated with identity fraud, all while trying to maintain a seamless customer experience,” said CFO Frank Teruel. “MiVIP provides our customers the tools to quickly deploy and balance these constant tensions.” 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. To access the live call, dial 877-270-2148 (US and Canada) or +1 412-902-6510 (International) and ask to join the Mitek call. 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 access by dialing 877-344-7529 (US or Canada) or 1-412-317-0088 (International) and entering the passcode: 9315135. 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 7,500 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. _________________________ 1 Javelin Strategy - “2022 Identity Fraud Study: The Virtual Background” 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 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, 2021, as filed with the SEC on December 13, 2021 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 and non-GAAP net income per share that exclude acquisition-related costs and expenses, intellectual property litigation costs, executive transition costs, stock compensation expenses, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and the cash tax difference. 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. MITEK SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands except share data) June 30, 2022 September 30, 2021 ASSETS Current assets: Cash and cash equivalents $ 21,522 $ 30,312 Short-term investments 49,531 149,057 Accounts receivable, net 29,672 16,602 Contract assets 5,125 4,080 Prepaid expenses 3,453 1,920 Other current assets 4,634 2,085 Total current assets 113,937 204,056 Long-term investments 19,534 48,051 Property and equipment, net 3,723 3,671 Right-of-use assets 5,503 7,056 Goodwill and intangible assets 215,003 91,830 Deferred income tax assets 11,963 10,511 Convertible senior notes hedge — 48,208 Other non-current assets 5,342 6,310 Total assets $ 375,005 $ 419,693 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 4,200 $ 2,507 Accrued payroll and related taxes 10,173 11,776 Deferred revenue, current portion 13,274 10,381 Lease liabilities, current portion 1,908 1,943 Acquisition-related contingent consideration 4,860 11,050 Restructuring accrual 1,807 — Other current liabilities 7,522 1,552 Total current liabilities 43,744 39,209 Convertible senior notes 126,157 120,918 Embedded conversion derivative — 48,208 Deferred revenue, non-current portion 1,409 955 Lease liabilities, non-current portion 4,789 6,588 Deferred income tax liabilities 20,493 4,117 Other non-current liabilities 2,011 6,868 Total liabilities 198,603 226,863 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, 44,396,263 and 44,168,745 issued and outstanding, as of June 30, 2022 and September 30, 2021, respectively 44 44 Additional paid-in capital 211,087 199,935 Accumulated other comprehensive loss (17,880 ) (943 ) Accumulated deficit (16,849 ) (6,066 ) Treasury stock, at cost, no shares and 7,773 shares as of June 30, 2022 and September 30, 2021, respectively — (140 ) Total stockholders’ equity 176,402 192,830 Total liabilities and stockholders’ equity $ 375,005 $ 419,693 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, 2022 2021 2022 2021 Revenue Software and hardware $ 19,820 $ 16,973 $ 54,545 $ 42,288 Services and other 19,513 14,805 51,975 44,238 Total revenue 39,333 31,778 106,520 86,526 Operating costs and expenses Cost of revenue—software and hardware 508 293 1,196 2,208 Cost of revenue—services and other 4,059 3,117 10,038 9,132 Selling and marketing 11,174 8,133 28,817 24,048 Research and development 9,411 6,946 25,253 19,801 General and administrative 6,667 5,633 18,704 16,409 Amortization and acquisition-related costs 4,492 2,224 9,827 5,576 Restructuring costs 1,807 — 1,807 — Total operating costs and expenses 38,118 26,346 95,642 77,174 Operating income 1,215 5,432 10,878 9,352 Interest expense 2,077 2,223 6,125 3,543 Other income (expense), net 49 80 (48 ) 549 Income (loss) before income taxes (813 ) 3,289 4,705 6,358 Income tax provision (39 ) (304 ) (522 ) (187 ) Net income (loss) $ (852 ) $ 2,985 $ 4,183 $ 6,171 Net income (loss) per share—basic $ (0.02 ) $ 0.07 $ 0.09 $ 0.14 Net income (loss) per share—diluted $ (0.02 ) $ 0.07 $ 0.09 $ 0.14 Shares used in calculating net income (loss) per share—basic 44,591 43,773 44,721 43,145 Shares used in calculating net income (loss) per share—diluted 45,145 45,194 45,793 44,646 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, 2022 2021 2022 2021 Net income (loss) $ (852 ) $ 2,985 $ 4,183 $ 6,171 Non-GAAP adjustments: Amortization and acquisition-related costs(2) 4,492 2,224 10,188 5,576 Intellectual property litigation costs 438 128 1,098 645 Executive transition costs — 428 — 428 Stock compensation expense 3,563 2,867 9,992 8,582 Restructuring costs 1,807 — 1,807 — Amortization of debt discount and issuance costs 1,787 1,933 5,239 3,080 Income tax effect of pre-tax adjustments (3,021 ) (1,743 ) (7,081 ) (4,211 ) Cash tax difference(1) 1,971 1,776 5,764 3,781 Non-GAAP net income 10,185 10,598 31,190 24,052 Non-GAAP income per share—basic $ 0.23 $ 0.24 $ 0.70 $ 0.56 Non-GAAP income per share—diluted $ 0.23 $ 0.23 $ 0.68 $ 0.54 Shares used in calculating non-GAAP net income per share—basic 44,591 43,773 44,721 43,145 Shares used in calculating non-GAAP net income per share—diluted 45,145 45,194 45,793 44,646 (1) The Company’s non-GAAP net income is calculated using a cash tax rate of 3% in both fiscal 2022 and 2021. The estimated cash tax rate is the estimated 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, the utilization of research and development tax credits, and the utilization of loss carryforwards 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 (loss) for the three months ended June 30, 2022 and 2021 was 5% and 9%, respectively. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the nine months ended June 30, 2022 and 2021 was 11% and negative 3%, respectively. (2) Included in acquisition-related costs and expenses is $0.3 million of foreign exchange and investment losses incurred in connection with the acquisition of HooYu Ltd. which is included in other income (expense), net in the consolidated statements of operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20220728006004/en/Contacts Investor Contact: Todd Kehrli or Jim Byers MKR Investor Relations, Inc. mitk@mkr-group.com
Mitek Launches MiVIP, the Mitek Verified Identity Platform, During the Third Quarter, Making Digital Access Faster and More Secure Than Ever
Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com,“Mitek” or the “Company”), a global leader in digital identity and digital fraud prevention, today reported financial results for its third quarter of fiscal 2022 ended June 30, 2022. Total revenue increased 24% year over year as commerce continues its rapid shift to digital channels. Fiscal Third Quarter 2022 Financial Highlights Total revenue increased 24% year over year to $39.3 million in a record third quarter. GAAP net loss was $0.9 million, or $0.02 per diluted share. Non-GAAP net income was $10.2 million, or $0.23 per diluted share. Total cash and investments were $90.6 million at the end of the quarter. “As consumers transact more business online than ever, identity verification has become essential to safe digital access,” said CEO Max Carnecchia. “In 2021, the combined impact of traditional identity fraud and identity fraud scams cost companies $52 billion and affected 42 million U.S. consumers.1 During the quarter, we launched MiVIP, the Mitek Verified Identity Platform, making digital access faster and more secure than ever while giving companies comprehensive, secure control over their entire customer identity journey, saving them time and money,” Carnecchia continued. “Mitek’s new platform is the culmination of our best technologies, our most recent acquisition, and our ongoing commitment to putting our customers in control of their consumers’ experiences.” “Our customers feel the weight of staggering fraud losses, significant operational costs, and the brand damage associated with identity fraud, all while trying to maintain a seamless customer experience,” said CFO Frank Teruel. “MiVIP provides our customers the tools to quickly deploy and balance these constant tensions.” 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. To access the live call, dial 877-270-2148 (US and Canada) or +1 412-902-6510 (International) and ask to join the Mitek call. 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 access by dialing 877-344-7529 (US or Canada) or 1-412-317-0088 (International) and entering the passcode: 9315135. 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 7,500 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. _________________________ 1 Javelin Strategy - “2022 Identity Fraud Study: The Virtual Background” 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 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, 2021, as filed with the SEC on December 13, 2021 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 and non-GAAP net income per share that exclude acquisition-related costs and expenses, intellectual property litigation costs, executive transition costs, stock compensation expenses, restructuring costs, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and the cash tax difference. 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. MITEK SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (amounts in thousands except share data) June 30, 2022 September 30, 2021 ASSETS Current assets: Cash and cash equivalents $ 21,522 $ 30,312 Short-term investments 49,531 149,057 Accounts receivable, net 29,672 16,602 Contract assets 5,125 4,080 Prepaid expenses 3,453 1,920 Other current assets 4,634 2,085 Total current assets 113,937 204,056 Long-term investments 19,534 48,051 Property and equipment, net 3,723 3,671 Right-of-use assets 5,503 7,056 Goodwill and intangible assets 215,003 91,830 Deferred income tax assets 11,963 10,511 Convertible senior notes hedge — 48,208 Other non-current assets 5,342 6,310 Total assets $ 375,005 $ 419,693 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 4,200 $ 2,507 Accrued payroll and related taxes 10,173 11,776 Deferred revenue, current portion 13,274 10,381 Lease liabilities, current portion 1,908 1,943 Acquisition-related contingent consideration 4,860 11,050 Restructuring accrual 1,807 — Other current liabilities 7,522 1,552 Total current liabilities 43,744 39,209 Convertible senior notes 126,157 120,918 Embedded conversion derivative — 48,208 Deferred revenue, non-current portion 1,409 955 Lease liabilities, non-current portion 4,789 6,588 Deferred income tax liabilities 20,493 4,117 Other non-current liabilities 2,011 6,868 Total liabilities 198,603 226,863 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, 44,396,263 and 44,168,745 issued and outstanding, as of June 30, 2022 and September 30, 2021, respectively 44 44 Additional paid-in capital 211,087 199,935 Accumulated other comprehensive loss (17,880 ) (943 ) Accumulated deficit (16,849 ) (6,066 ) Treasury stock, at cost, no shares and 7,773 shares as of June 30, 2022 and September 30, 2021, respectively — (140 ) Total stockholders’ equity 176,402 192,830 Total liabilities and stockholders’ equity $ 375,005 $ 419,693 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, 2022 2021 2022 2021 Revenue Software and hardware $ 19,820 $ 16,973 $ 54,545 $ 42,288 Services and other 19,513 14,805 51,975 44,238 Total revenue 39,333 31,778 106,520 86,526 Operating costs and expenses Cost of revenue—software and hardware 508 293 1,196 2,208 Cost of revenue—services and other 4,059 3,117 10,038 9,132 Selling and marketing 11,174 8,133 28,817 24,048 Research and development 9,411 6,946 25,253 19,801 General and administrative 6,667 5,633 18,704 16,409 Amortization and acquisition-related costs 4,492 2,224 9,827 5,576 Restructuring costs 1,807 — 1,807 — Total operating costs and expenses 38,118 26,346 95,642 77,174 Operating income 1,215 5,432 10,878 9,352 Interest expense 2,077 2,223 6,125 3,543 Other income (expense), net 49 80 (48 ) 549 Income (loss) before income taxes (813 ) 3,289 4,705 6,358 Income tax provision (39 ) (304 ) (522 ) (187 ) Net income (loss) $ (852 ) $ 2,985 $ 4,183 $ 6,171 Net income (loss) per share—basic $ (0.02 ) $ 0.07 $ 0.09 $ 0.14 Net income (loss) per share—diluted $ (0.02 ) $ 0.07 $ 0.09 $ 0.14 Shares used in calculating net income (loss) per share—basic 44,591 43,773 44,721 43,145 Shares used in calculating net income (loss) per share—diluted 45,145 45,194 45,793 44,646 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, 2022 2021 2022 2021 Net income (loss) $ (852 ) $ 2,985 $ 4,183 $ 6,171 Non-GAAP adjustments: Amortization and acquisition-related costs(2) 4,492 2,224 10,188 5,576 Intellectual property litigation costs 438 128 1,098 645 Executive transition costs — 428 — 428 Stock compensation expense 3,563 2,867 9,992 8,582 Restructuring costs 1,807 — 1,807 — Amortization of debt discount and issuance costs 1,787 1,933 5,239 3,080 Income tax effect of pre-tax adjustments (3,021 ) (1,743 ) (7,081 ) (4,211 ) Cash tax difference(1) 1,971 1,776 5,764 3,781 Non-GAAP net income 10,185 10,598 31,190 24,052 Non-GAAP income per share—basic $ 0.23 $ 0.24 $ 0.70 $ 0.56 Non-GAAP income per share—diluted $ 0.23 $ 0.23 $ 0.68 $ 0.54 Shares used in calculating non-GAAP net income per share—basic 44,591 43,773 44,721 43,145 Shares used in calculating non-GAAP net income per share—diluted 45,145 45,194 45,793 44,646 (1) The Company’s non-GAAP net income is calculated using a cash tax rate of 3% in both fiscal 2022 and 2021. The estimated cash tax rate is the estimated 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, the utilization of research and development tax credits, and the utilization of loss carryforwards 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 (loss) for the three months ended June 30, 2022 and 2021 was 5% and 9%, respectively. The Company’s effective tax rate used for the purposes of calculating GAAP net income for the nine months ended June 30, 2022 and 2021 was 11% and negative 3%, respectively. (2) Included in acquisition-related costs and expenses is $0.3 million of foreign exchange and investment losses incurred in connection with the acquisition of HooYu Ltd. which is included in other income (expense), net in the consolidated statements of operations. View source version on businesswire.com: https://www.businesswire.com/news/home/20220728006004/en/