On August 8, 2024, Mitek Systems Inc (MITK, Financial) released its 8-K filing for the fiscal third quarter ended June 30, 2024. Mitek Systems Inc is a global leader in digital identity and fraud prevention, providing proprietary software solutions related to mobile imaging, artificial intelligence, and machine learning. The company serves over 7,800 financial services organizations and leading marketplace and financial technology brands worldwide.
Performance Overview
Mitek Systems Inc reported total revenue of $45.0 million for the third quarter, reflecting a 4% year-over-year growth from $43.1 million. However, this figure fell short of the analyst estimate of $47.99 million. The company reported GAAP net income of $0.2 million, or $0.00 per diluted share, compared to a GAAP net loss of $0.4 million, or $0.01 per diluted share, a year ago. This missed the analyst estimate of $0.03 earnings per share.
Financial Achievements and Challenges
Despite the revenue growth, Mitek Systems Inc faced challenges in its Identity product revenue, which impacted its overall revenue outlook for fiscal year 2024. The company revised its full-year revenue guidance to be between $169 million and $173 million, a decrease of 1% at the midpoint compared to last year’s revenue. This revision is partly due to a large multi-year mobile deposit reorder signed in fiscal 2023, which recognized additional license revenue of approximately $7 million.
“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.”
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $45.0 million | $43.1 million |
| GAAP Operating Income | $0.7 million | $1.8 million |
| GAAP Net Income | $0.2 million | $(0.4) million |
| Non-GAAP Operating Income | $11.6 million | $12.0 million |
| Non-GAAP Net Income | $12.0 million | $9.5 million |
| Cash Flow from Operations | $13.0 million | $16.6 million |
| Total Cash and Investments | $133.2 million | $130.3 million |
Income Statement Highlights
For the third quarter, Mitek Systems Inc reported total revenue of $44.976 million, with software and hardware revenue contributing $22.662 million and services and other revenue contributing $22.314 million. The company’s operating costs and expenses totaled $44.242 million, resulting in an operating income of $0.734 million. The net income for the quarter was $0.216 million, translating to $0.00 per diluted share.
Balance Sheet and Cash Flow
As of June 30, 2024, Mitek Systems Inc reported total assets of $409.227 million, with total liabilities of $199.591 million. The company’s total cash and investments stood at $133.2 million, an increase of $2.9 million from the previous quarter. Cash flow from operations was $13.0 million, compared to $16.6 million a year ago.
Analysis and Outlook
Mitek Systems Inc’s performance in the third quarter highlights both growth and challenges. The 4% year-over-year revenue growth is a positive indicator, but the shortfall in Identity product revenue and the revised full-year guidance reflect underlying challenges. The company’s strategic investments and upcoming product launches are expected to drive future growth and deliver long-term shareholder value.
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Explore the complete 8-K earnings release (here) from Mitek Systems Inc for further details.
