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Mitek Systems, Inc.$9.12$.222.47%

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 Mitek Reports 46% Revenue Growth in Record First Quarter
   Tuesday, January 29, 2019 4:05:00 PM ET

SAN DIEGO, Jan. 29, 2019 (GLOBE NEWSWIRE) -- Mitek (NASDAQ: MITK, ), a global leader in mobile capture and digital identity verification solutions, today announced its financial results for the first quarter of fiscal 2019 ended December 31, 2018.

Fiscal First Quarter 2019 Financial Highlights

  • Total revenue increased 46% year over year to $17.7 million.
  • GAAP net loss of $(3.2) million, or $(0.08) per share.
  • Non-GAAP net income of $1.0 million, or $0.03 per diluted share.
  • Cash flow from operations was $2.3 million.
  • Total cash and investments of $19.7 million at the end of the fiscal first quarter.

Commenting on the results, Max Carnecchia, CEO of Mitek, said:

“Our quarterly financial results include solid double-digit revenue growth in both of our product families and reflect the continued positive momentum we are generating and the hard work of our entire team. We continue to dominate the mobile check deposit market with our industry leading solution. And in ID verification, we believe that our Mobile Verify is providing the onramp to the digital economy. This large market is fast growing, mission critical, and in its early days with only one clear leader – Mitek.  We remain very focused on building on our market leadership with our patented technology, global customer relationships and proven ability to innovate and scale.”

Fiscal 2019 Financial Guidance

For the fiscal year ending September 30, 2019, the Company is reiterating its previously provided guidance for full year total revenue of $83 million to $86 million, which would represent growth between 31% and 35% year over year and continues to expect to generate a non-GAAP profit margin of approximately 18% to 20%.

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 888-208-1711 (US and Canada) or +1 720-543-0214 (International) and give the participant passcode 3216965.

A live and archived webcast of the conference call will be accessible on the “Investor Relations” section of the Company’s website at . 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. To access the call replay dial-in information, please click here .

About Mitek

Mitek (NASDAQ: MITK) is a global leader in mobile capture and digital identity verification solutions built on the latest advancements in AI and machine learning. Mitek’s identity verification solutions enable an enterprise to verify a user’s identity during a digital transaction, which assists financial institutions, payments companies and other businesses operating in highly regulated markets in mitigating financial risk and meeting regulatory requirements while increasing revenue from digital channels. Mitek also reduces the friction in the users’ experience with advanced data prefill and automation of the onboarding process. Mitek’s innovative solutions are embedded into the apps of more than 6,100 organizations and used by more than 80 million consumers for mobile check deposit, new account opening and more. Learn more at .  [(MITK-F)]

Notice Regarding Forward-Looking Statements

Statements contained in this news release relating to the Company’s or 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 Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner or 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, 2018 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 . 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-GAAP financial measures for non-GAAP net income and non-GAAP net income per share that exclude stock compensation expenses, intellectual property litigation costs, acquisition-related costs and expenses, costs associated with unsolicited ASG proposal activity, executive transition costs, income tax effect of pre-tax adjustments, impact of tax reform on deferred taxes, and the cash tax difference. These financial measures are not calculated in accordance with generally accepted accounting principles (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 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.

(amounts in thousands except share data)

 December 31, 2018 September 30, 2018
Current assets:   
Cash and cash equivalents$10,437  $9,028 
Short-term investments9,248  8,448 
Accounts receivable, net13,485  16,821 
Prepaid expenses2,096  2,278 
Other current assets1,565  1,053 
Total current assets36,831  37,628 
Property and equipment, net4,779  4,665 
Goodwill and intangible assets64,800  67,354 
Deferred income tax assets16,983  15,356 
Other non-current assets3,124  2,147 
Total assets$126,517  $127,150 
Current liabilities:   
Accounts payable$4,507  $3,573 
Accrued payroll and related taxes6,202  7,915 
Deferred revenue, current portion4,728  4,792 
Acquisition-related contingent consideration1,823  1,849 
Other current liabilities2,023  2,278 
Total current liabilities19,283  20,407 
Deferred revenue, non-current portion407  485 
Deferred income tax liabilities8,055  8,162 
Other non-current liabilities2,937  2,702 
Total liabilities30,682  31,756 
Stockholders’ equity:   
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding   
Common stock, $0.001 par value, 60,000,000 shares authorized, 38,638,816 and 37,961,224 issued and outstanding, as of December 31, 2018 and September 30, 2018, respectively39  38 
Additional paid-in capital120,199  116,944 
Accumulated other comprehensive loss(1,397) (586)
Accumulated deficit(23,006) (21,002)
Total stockholders’ equity95,835  95,394 
Total liabilities and stockholders’ equity$126,517  $127,150 

(amounts in thousands except per share data)

 Three Months Ended December 31,
 2018  2017 
Software and hardware$9,995  $7,206 
Service and other7,688  4,930 
Total revenue17,683  12,136 
Operating costs and expenses   
Cost of revenue—software and hardware845  719 
Cost of revenue—service and other2,033  898 
Selling and marketing7,208  4,775 
Research and development4,488  3,280 
General and administrative5,842  3,517 
Acquisition-related costs and expenses1,827  1,259 
Total operating costs and expenses22,243  14,448 
Operating income loss(4,560) (2,312)
Other income, net14  190 
Loss before income taxes(4,546) (2,122)
Income tax benefit (provision)1,355  (3,614)
Net loss$(3,191) $(5,736)
Net loss per share—basic and diluted$(0.08) $(0.17)
Shares used in calculating net loss per share—basic and diluted38,247  34,207 

(amounts in thousands except per share data)  

 Three Months Ended December 31,
 2018  2017 
Net loss$(3,191) $(5,736)
Non-GAAP adjustments:   
Acquisition-related costs and expenses1,827  1,259 
Litigation costs  50 
Costs associated with unsolicited ASG proposal activity864   
Executive transition costs(1)251   
Stock compensation expense2,670  1,889 
Income tax effect of pre-tax adjustments(1,261) (960)
Impact of tax reform on deferred taxes  4,417 
Cash tax difference(2)(114) 112 
Non-GAAP net income1,046  1,031 
Non-GAAP income per share—basic$0.03  $0.03 
Non-GAAP income per share—diluted$0.03  $0.03 
Shares used in calculating non-GAAP net income per share—basic38,247  34,207 
Shares used in calculating non-GAAP net income per share—diluted40,117  36,235 
  1. Comprised of costs associated with the transition of the Company’s executive officers. Our non-GAAP financial measures exclude these transition costs as we believe that such expense is inconsistent with the normally recurring operations of our Company and it makes it difficult to make period-to-period comparisons of our operating performance. Comparable figures have been restated to conform to the current period’s presentation.
  2. The Company’s non-GAAP net income is calculated using the cash tax rate of 2%. 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 loss for the three months ended December 31, 2018 was 30%.


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Investor Contact:
Todd Kehrli or Jim Byers
MKR Group, Inc.  



Source: Mitek Systems, Inc.

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