Financial Data and Key Metrics Changes - For Q2 of fiscal 2023, Mitek generated revenue of $45.3 million, representing a 35% increase year-over-year [8][50] - GAAP net income for the quarter was $4.4 million, or $0.10 per diluted share, with a diluted share count of 45.6 million [9][64] - Non-GAAP net income for Q2 was $13.1 million, or $0.29 per diluted share, compared to $9.7 million, or $0.21 per share, for the same period last year [64] - Cash flow from operations was $6.3 million during the quarter, bringing total cash and investments to $114.5 million as of March 31, 2023 [25][64] Business Line Data and Key Metrics Changes - Identity revenue increased 35% year-over-year to $16.6 million, driven by the addition of HooYu SaaS revenue and strong contributions from ID R&D and Mobile Verify products [55][51] - Deposits revenue for Q2 increased 35% year-over-year to $28.8 million, driven by mobile deposit reorders [24][88] - Services and other revenue, including transactional SaaS revenue, maintenance, and professional services, was $20.1 million for the quarter, up 31% year-over-year [24] Market Data and Key Metrics Changes - Deposits revenue for the first six months increased 47% year-over-year to $59 million, driven by solid mobile deposit reorders and a large multiyear contract [65] - Identity revenue for the first six months increased 24% year-over-year to $32 million, driven by the addition of HooYu revenue and strong contributions from ID R&D and Mobile Verify products [65] Company Strategy and Development Direction - Mitek is focused on enhancing its identity verification solutions, positioning itself strategically to meet growing customer demands in a digital landscape [89] - The company is committed to innovation, with products like IDLive Face Plus aimed at combating deep fakes and digital injection attacks [90] - Mitek's strategy includes a principled approach to pricing, allowing for potential price increases as contracts are renewed [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment impacting new enterprise spending, with expectations of slower growth in the second half of the fiscal year [62][23] - The company reiterated its annual guidance, expecting revenue growth of 18% year-over-year and a non-GAAP operating margin in the range of 30% to 31% for the full fiscal year [26][23] - Management expressed confidence in the growth potential of the Check Fraud Defender and Mobile Deposit solutions, despite anticipated deceleration in growth [27][68] Other Important Information - Mitek is currently involved in litigation related to USAA patents, with positive developments as the U.S. Patent Trial and Appeal Board has invalidated several USAA patents [20][59] - The company has introduced MiPass, a multimodal biometric solution for continuous identity authentication, which combines voice and face recognition [60] Q&A Session Summary Question: What are the highest contributors to growth in the check business? - Management ranked growth drivers as follows: mobile check deposit adoption, Check Fraud Defender, and price increases [27][68] Question: Can you discuss the impact of the macro environment on transactional volumes? - Management noted that the impact from the macro environment became more pronounced in Q3 and Q4, with some headwinds observed in Q2 [98] Question: What are the plans for capital allocation moving forward? - Management indicated that the priority is to become current on filings before considering M&A or stock buybacks [83][109] Question: What should be expected regarding the ongoing patent situation with USAA? - Management advised to keep an eye on PTAB rulings and the ongoing declaratory judgment action on appeal [42][59]

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, 2022 ☐ 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) ...

Financial Data and Key Metrics Changes - Mitek reported record revenue of $143.9 million for fiscal 2022, representing a 20% year-over-year growth [3] - Non-GAAP net income reached $40 million or $0.87 per diluted share, up 17% year-over-year [3] - Cash flow from operations was strong at $26 million for the year [3] - GAAP net income for fiscal 2022 was $3 million or $0.07 per share, down from $8 million or $0.18 per share in fiscal 2021 [16] - Non-GAAP net income increased 16% for the year to $39.6 million or $0.87 per share compared to $34.2 million or $0.76 per share in fiscal 2021 [16] Business Line Data and Key Metrics Changes - Services and other revenue for fiscal 2022 was $71 million, a 19% increase over $59.7 million in fiscal 2021 [15] - Transactional SaaS revenue increased 31% year-over-year to $13.4 million, driven by increased mobile verified volumes and the addition of HooYu SaaS revenue [12] - Deposits revenue increased 14% year-over-year to $58.1 million, primarily due to the adoption of Mobile Deposit and Check Fraud Defender product lines [31] - Identity verification revenue increased 31% to $58.1 million, driven by 25% growth in transactional revenue and additional SaaS revenue from HooYu [31] Market Data and Key Metrics Changes - The identity verification market is experiencing significant growth due to the increasing sophistication of financial crimes and the demand for secure online experiences [9] - Mitek's identity business grew 31% year-over-year, reflecting the strong demand for its solutions [88] Company Strategy and Development Direction - Mitek is focusing on expanding its identity verification solutions and enhancing its product offerings to combat digital identity fraud [3][9] - The company plans to hold an Investor Day event to discuss its long-term strategy and growth opportunities in the identity products sector [10] - Mitek launched MiPass, a multi-modal biometrics solution for continuous identity authentication, to strengthen its market position [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fiscal 2023 revenue guidance of $163 million to $165 million, representing a 14% year-over-year increase [17] - The company is optimistic about its long-term prospects and the ability to penetrate its target addressable markets [91] - Management noted that the macroeconomic environment has changed significantly, impacting the identity business, particularly in interest-sensitive sectors [70] Other Important Information - Mitek is actively pursuing a declaratory judgment action against USAA to prove that its products do not infringe on USAA's patents, with positive developments in the litigation process [87] - The company continues to generate meaningful cash flow from operations, with total cash and investments reaching $101 million as of September 30, 2022 [32] Q&A Session Summary Question: Can you discuss transaction activity and trends in Mobile Check and Mobile ID? - Management noted increased transaction volumes from existing customers and new customer additions in identity verifications and mobile check deposits [20] Question: What are the expectations for the timing on the 10-K and subsequent filings? - Management indicated that the 10-K would be filed within a week to ten days, with a return to a regular filing schedule expected soon [40][77] Question: How do you view the growth rates of deposits versus the identity business in fiscal 2023? - Management expects deposits to grow at a high-single digit to low double-digit rate, while the identity business is anticipated to achieve high-teens growth [56][74] Question: What factors could impact the timeline for achieving profitability in the identity segment? - Management highlighted that faster top-line growth could lead to earlier profitability, while slower growth could delay it [49] Question: How is the macro environment impacting each business unit? - Management noted that the identity business is facing challenges in interest-sensitive areas, while the deposits business is benefiting from increased focus on fraud prevention [64][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 incorporation or organization) 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, 2022 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transit ...

Mitek Systems, Inc. (NASDAQ:MITK) Q3 2022 Earnings Conference Call July 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 Mike Grondahl - Northland Securities Scott Buck - H.C. Wainwright Allen Klee - Maxim Group Operator Good day, and welcome to Mitek's Third Quarter 2022 Earnings conference call. All participants will be in a listen-only mode. [O ...

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 March 31, 2022 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 incorpora ...

Financial Data and Key Metrics Changes - Mitek reported a revenue growth of 21% year-over-year, reaching $34.7 million in Q2 2022 [9][30] - Non-GAAP net income increased by 49% year-over-year to $10.8 million, or $0.24 per diluted share [9][36] - Cash flow from operations was $7.4 million for the quarter [9][37] - Total GAAP operating expenses rose to $29.9 million from $26.4 million in Q2 of the previous year [33] Business Line Data and Key Metrics Changes - Software and hardware revenue increased by 48% year-over-year to $19.3 million, primarily due to contributions from ID R&D and mobile deposit reorders [30] - Services revenue, which includes transactional SaaS revenue, decreased by 2% year-over-year to $15.4 million, with transactional SaaS revenue down 4% to $10.5 million [31] - Deposit revenue grew by 24% year-over-year to $21.3 million, while identity revenue increased by 16% year-over-year to $13.4 million [32][78] Market Data and Key Metrics Changes - The identity verification market is experiencing increased demand due to rising fraud attacks and data breaches, which increased by 68% in 2021 [22] - The acquisition of HooYu is expected to expand Mitek's addressable market significantly, targeting more customers and accelerating growth in the identity business [10][25] Company Strategy and Development Direction - Mitek's acquisition of HooYu aims to enhance its capabilities in identity verification and authentication, providing a comprehensive orchestration platform [10][25] - The company is focusing on integrating its technology and harmonizing go-to-market efforts to capitalize on growing market opportunities [28][39] - Mitek plans to leverage its low code, no code capabilities to allow businesses of all sizes to quickly implement identity verification solutions [14][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential headwinds within the core identity business but emphasized the urgency for orchestration-enabled solutions in the market [28] - The integration of HooYu is expected to take 90 to 180 days, with a focus on demonstrating the combined platform to existing and new customers [66] - Management believes that profitability for the identity business may be pushed back to the second half of fiscal 2024 due to integration costs [39] Other Important Information - Mitek's total cash and investments stood at $93.4 million as of March 31, following the acquisition of HooYu for $127.1 million [37] - The company is making necessary investments to integrate HooYu and enhance its offerings in the identity verification market [39] Q&A Session Summary Question: How are initial customer and partner conversations changing with the new platform? - Management noted that customers are increasingly recognizing the ROI of combining technologies into one platform rather than seeking point solutions [45][46] Question: Can you provide updates on new products like Check Fraud Defender and IDLive Doc? - Management reported positive adoption and interest from large financial institutions for Check Fraud Defender, while IDLive Doc has seen increasing transaction volumes with initial customers [51][56] Question: What were HooYu's revenue and historical losses? - HooYu generated just under $10 million in revenue last year but was a loss-making startup, requiring additional investments for integration and growth [62][64] Question: What is the timeline for integrating HooYu and selling to larger customers? - Management aims to have a demonstrable product in the market within 90 days and to build pipeline sales cycles shortly thereafter [66] Question: Can you explain the decrease in services revenue and the headwinds in the identity segment? - The decrease was attributed to the completion of a large project for a customer, creating a difficult comparison for future quarters [70][71]

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, ...

Financial Data and Key Metrics Changes - Mitek reported record first quarter revenue of $32.5 million, a 25% increase year-over-year [12][30] - Non-GAAP net income increased 65% year-over-year to $10.2 million or $0.22 per diluted share [12][35] - GAAP net income for the quarter increased 44% to $3.1 million or $0.07 per diluted share [34] - Cash flow from operations was $2.3 million, with total cash and investments reaching $218.2 million [36] Business Line Data and Key Metrics Changes - Digital identity verification revenue grew 30% year-over-year to $13.4 million [12][31] - Deposits business revenue increased 22% year-over-year to $19.1 million [12][31] - Software and hardware revenue was $15.4 million, up 26% year-over-year [30][31] - Transactional SaaS revenue increased 31% year-over-year to $11.6 million [31] Market Data and Key Metrics Changes - The demand for digital banking continues to drive growth in the deposits business [12][24] - The increasing use of mobile devices and demand for user experience are key drivers of digital transformation in banks [24] Company Strategy and Development Direction - Mitek aims to double the revenue derived from channel partners in the identity business over the next two years [45] - The company is focused on innovation and exploring avenues for product superiority through partnerships and acquisitions [23][88] - Mitek is committed to addressing the growing challenges of fraud in the digital economy [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities ahead, citing strong results and growing demand for their offerings [27] - The company believes the next decade of fraud prevention will be defined by continuous identity and access management capabilities [16] - Management highlighted the urgency of digital transformation and the integral role of digital identity verification in organizations' technology stacks [10][14] Other Important Information - Mitek's Mobile Verify solution is used across over 80 million mobile devices globally [19] - The company launched the Document Liveness product, IDLive Doc, to enhance fraud detection capabilities [20][21] Q&A Session Summary Question: Insights on Mobile Deposit business growth - Management noted that growth is driven by increased adoption of mobile check deposits, modest price increases, and new capabilities like Check Fraud Defender [41] Question: Progress of partnerships in identity verification - Management reported that approximately 20% of identity business revenue comes from channel partners, with a goal to double that in two years [45][46] Question: Market size for ID Live Doc product - Management indicated that while they believe the market is material, they do not have a precise market size yet [57] Question: Sales cycle duration for identity verification services - Management stated that sales cycles can vary significantly, from quick implementations with partners to longer cycles for direct sales, which can take several quarters [63] Question: Impact of lawsuits on selling new products - Management clarified that there has been no pushback from customers regarding the adoption of new products due to ongoing lawsuits [65] Question: Cash reserves and acquisition strategy - Management confirmed they are actively looking for acquisition opportunities to expand capabilities [73][74] Question: Update on profitability timeline for identity verification business - Management reiterated that they expect to reach profitability by the end of fiscal 2023 [89]