Mitek Systems, Inc. (NASDAQ:MITK) Q2 2022 Results Conference Call April 28, 2022 4:30 PM ET Company Participants Todd Kehrli - Investor Relations Max Carnecchia - Chief Executive Officer Frank Teruel - Chief Financial Officer Conference Call Participants Jake Roberge - William Blair Allen Klee - Maxim Group Mike Grondahl - Northland Securities Operator Good day, and welcome to the Mitek Systems??? Second Quarter 2022 Financial Results Conference Call. Today???s conference is being recorded. At this time, I ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section provides unaudited consolidated financial statements, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with explanatory notes Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended Dec 31, 2021 ($ millions) | Three Months Ended Dec 31, 2020 ($ millions) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $32.473 | $25.976 | +25.0% | | Operating Income | $4.829 | $1.537 | +214.2% | | **Net Income** | $3.124 | $2.167 | +44.2% | | Diluted Net Income per Share | $0.07 | $0.05 | +40.0% | Consolidated Balance Sheets Highlights (Unaudited) | Metric | December 31, 2021 ($ millions) | September 30, 2021 ($ millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $24.214 | $30.312 | | Total Assets | $403.001 | $419.693 | | Total Liabilities | $215.572 | $226.863 | | Total Stockholders' Equity | $187.429 | $192.830 | - Net cash provided by operating activities was **$2.3 million** for the three months ended December 31, 2021, a significant decrease from **$8.7 million** in the same period of 2020[17](index=17&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the first quarter fiscal 2022 financial performance, covering revenue growth, cost structures, market opportunities, challenges, liquidity, and capital resources - The company serves over **7,500** financial services organizations and fintech brands globally with its mobile image capture and digital identity verification solutions[20](index=20&type=chunk)[157](index=157&type=chunk) - In May 2021, Mitek acquired ID R&D, an AI-based voice and face biometrics provider, to enhance its security offerings against digital fraud[21](index=21&type=chunk)[158](index=158&type=chunk)[163](index=163&type=chunk) - The company identifies market growth drivers in digital transformation, stringent regulations, and increasing demand for digital services, while acknowledging risks from competition, product concentration, and lengthy sales cycles[164](index=164&type=chunk)[165](index=165&type=chunk)[166](index=166&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Total revenue for Q1 2022 increased by 25% to $32.5 million, driven by growth in software, hardware, and services, while operating expenses also rose, leading to a 44% net income increase Revenue Breakdown (Three Months Ended Dec 31) | Revenue Category | 2021 ($ millions) | 2020 ($ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Software and hardware | $15.445 | $12.303 | +26% | | Services and other | $17.028 | $13.673 | +25% | | **Total Revenue** | **$32.473** | **$25.976** | **+25%** | Operating Expenses Breakdown (Three Months Ended Dec 31) | Expense Category | 2021 ($ millions) | 2020 ($ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of revenue | $3.356 | $4.138 | -19% | | Selling and marketing | $8.438 | $7.385 | +14% | | Research and development | $7.606 | $6.165 | +23% | | General and administrative | $5.965 | $5.058 | +18% | | Acquisition-related costs | $2.279 | $1.693 | +35% | - The increase in R&D expenses was primarily due to higher personnel-related costs from the ID R&D acquisition and increased headcount[177](index=177&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2021, cash and investments decreased by $9.2 million due to stock repurchases, following the issuance of $155.3 million in convertible senior notes and the near completion of a $15 million share repurchase program - Cash and investments decreased by **$9.2 million** during the quarter, primarily due to **$10.1 million** in stock repurchases[184](index=184&type=chunk) - The company repurchased approximately **598,636** shares for **$10.1 million** during the quarter under its share repurchase program[104](index=104&type=chunk)[201](index=201&type=chunk) - In February 2021, the company issued **$155.3 million** in **0.75%** convertible senior notes due 2026, with net proceeds of approximately **$149.7 million**[112](index=112&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate fluctuations on its investment portfolio and foreign currency exchange rate volatility, with a focus on principal preservation and minimal impact from interest rate changes - The primary objective of investment activities is to preserve principal while maximizing after-tax yields without significantly increasing risk[210](index=210&type=chunk) - A hypothetical **100 basis point** change in market interest rates would not have a material impact on the fair value of cash equivalents and debt securities due to their short maturities[211](index=211&type=chunk) - The company is exposed to foreign currency risk from operations in France, the Netherlands, Russia, and Spain, particularly from fluctuations in the Euro[212](index=212&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls were effective as of December 31, 2021, with a previously identified material weakness in internal control over financial reporting related to contingent consideration valuation now remediated - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of December 31, 2021[214](index=214&type=chunk) - A material weakness related to the valuation of contingent consideration from the ID R&D Acquisition, identified as of September 30, 2021, was remediated as of December 31, 2021[215](index=215&type=chunk)[216](index=216&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal matters, including a claim against its subsidiary, ongoing indemnification demands from customers due to patent infringement, and breach of contract lawsuits - A claim for **€0.8 million** (**$0.9 million**) was filed against the company's subsidiary, ICAR, in Spain, for which Mitek expects to be indemnified[130](index=130&type=chunk)[131](index=131&type=chunk) - The company is monitoring and involved in legal actions related to patent infringement claims by USAA against its customers, including Wells Fargo and PNC Bank, but is not a named defendant in those suits[133](index=133&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) - Mitek filed a lawsuit against Maplebear Inc. (Instacart) for breach of contract, seeking over **$2.0 million** in damages[145](index=145&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the company's risk factors from those disclosed in the previous Annual Report on Form 10-K - There have been no material changes in the company's risk factors from those disclosed in the previous Form 10-K[220](index=220&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the quarter ended December 31, 2021, that were not previously disclosed - No unregistered sales of equity securities were made during the quarter that had not been previously reported[221](index=221&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate agreements, CEO and CFO certifications, and financial data files - The filing includes CEO and CFO certifications pursuant to Rule 13a-14(a) and Section 906 of the Sarbanes-Oxley Act[226](index=226&type=chunk)

Investor presentation : MITK Q1 FY22 © 2022 Mitek Systems Inc. 1 ● ● Safe harbor statement Forward-looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to our outlook or expectations for earnings, ...

Mitek Systems, Inc. (NASDAQ:MITK) Q1FY2022 Earnings Conference Call January 27, 2022 4:30 PM ET Company Participants Todd Kehrli ??? Investor Relations Contact Officer Max Carnecchia ??? Chief Executive Officer Frank Teruel ??? Chief Financial Officer Conference Call Participants Bhavan Suri ??? William Blair Mario Cortellacci ??? Jefferies Mike Grondahl ??? Northland Securities Allen Klee ??? Maxim Group Scott Buck ??? H.C. Wainwright Operator Good day, ladies and gentlemen, and welcome to the Mitek System ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-35231 MITEK SYSTEMS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) ...

Investor presentation : MITK Q4 FY21 © 2021 Mitek Systems Inc. 1 ● ● Safe harbor statement Forward-looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to our outlook or expectations for earnings, ...

Mitek Systems, Inc. (NASDAQ:MITK) Q3 2021 Earnings Conference Call November 4, 2021 4:30 PM ET Company Participants Todd Kehrli ??? MKR Group Max Carnecchia ??? Chief Executive Officer Frank Teruel ??? Chief Financial Officer Conference Call Participants Bhavan Suri ??? William Blair and Company Mike Grondahl ??? Northland Securities, Inc. Mario Cortellacci ??? Jefferies Derek Greenberg ??? Maxim Group Operator Good day, ladies and gentlemen, and welcome to the Mitek Systems Fourth Quarter and Fiscal 2021 f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001-35231 MITEK SYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 87-0418827 (State or other jurisdiction of incorporatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (I.R.S. Employer Identification No.) 600 B Street, Suite 100 San Diego, California 92101 (Address of principal executive offices) (Zip Code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 001 ...

Investor presentation : MITK Q2 FY21 © 2021 Mitek Systems Inc. 1 ● Safe harbor statement Forward-looking statements contained in this presentation involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to our outlook or expectations for earnings, r ...