Mitek Systems(MITK) - 2024 Q3 - Quarterly Results

Mitek Fiscal 2024 Third Quarter Financial Results Mitek reports Q3 FY2024 financial results, highlighting revenue growth, GAAP net income turnaround, and revised full-year guidance Fiscal 2024 Third Quarter Financial Highlights Mitek achieved $45.0 million in Q3 FY2024 revenue, a 4% increase, with positive GAAP net income and strong non-GAAP net income growth Q3 FY2024 Financial Performance vs. Q3 FY2023 | Financial Metric | Q3 FY2024 | Q3 FY2023 | | :--- | :--- | :--- | | Total Revenue | $45.0 million | $43.1 million | | GAAP Operating Income | $0.7 million | $1.8 million | | GAAP Operating Margin | 2% | 4% | | GAAP Net Income (Loss) | $0.2 million | ($0.4 million) | | GAAP EPS (diluted) | $0.00 | ($0.01) | | Non-GAAP Operating Income | $11.6 million | $12.0 million | | Non-GAAP Operating Margin | 26% | 28% | | Non-GAAP Net Income | $12.0 million | $9.5 million | | Non-GAAP EPS (diluted) | $0.25 | $0.20 | - Cash flow from operations was $13.0 million, down from $16.6 million in the prior year's quarter[2] - The company repurchased 819,623 shares for a total of approximately $10.0 million, at an average price of $12.25 per share[2] - Total cash and investments increased to $133.2 million as of June 30, 2024[2] Executive Commentary and Full Year Guidance Management revised full-year 2024 revenue guidance to $169-$173 million due to Identity product performance, while maintaining confidence in long-term strategy - Management is disappointed in the fiscal Q3 Identity product revenue and the revised revenue outlook for fiscal year 2024, but remains confident in the company's technology and strategic investments to drive long-term growth[3] Revised Fiscal 2024 Full Year Guidance | Metric | Revised Guidance | | :--- | :--- | | Full-Year Revenue | $169 million - $173 million | | Non-GAAP Operating Margin | 23% - 25% | - The revised revenue guidance represents a 1% decrease at the midpoint compared to FY2023; however, after adjusting for a one-time $7 million license revenue recognized in FY2023, the guidance implies an estimated growth of approximately 5% at the midpoint for FY2024[3] Financial Statements This section presents the unaudited consolidated balance sheets, statements of operations, and disaggregated revenue for the specified periods Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2024 Key Balance Sheet Items (in thousands) | Account | June 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $84,351 | $58,913 | | Total current assets | $195,684 | $190,009 | | Total assets | $409,227 | $405,375 | | Total current liabilities | $43,908 | $51,497 | | Total liabilities | $199,591 | $200,187 | | Total stockholders' equity | $209,636 | $205,188 | Consolidated Statements of Operations This section presents the company's revenues, expenses, and net income (loss) for the three and nine months ended June 30, 2024 Statements of Operations Highlights (in thousands) | Metric | Three Months Ended Jun 30, 2024 | Three Months Ended Jun 30, 2023 | Nine Months Ended Jun 30, 2024 | Nine Months Ended Jun 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $44,976 | $43,070 | $128,861 | $134,896 | | Operating Income (Loss) | $734 | $1,792 | ($5,484) | $18,851 | | Net Income (Loss) | $216 | ($428) | ($5,295) | $9,471 | | Diluted EPS | $0.00 | ($0.01) | ($0.11) | $0.20 | Revenue by Product Category This section provides a detailed breakdown of total revenue by Deposits and Identity Verification product categories Revenue Disaggregation (in thousands) | Product Category | Three Months Ended Jun 30, 2024 | Three Months Ended Jun 30, 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Deposits Revenue | $29,286 | $24,804 | +18.1% | | Identity Verification Revenue | $15,690 | $18,266 | -14.1% | | Total Revenue | $44,976 | $43,070 | +4.4% | - For the nine months ended June 30, 2024, Deposits revenue was $79.9 million (down from $83.8 million YoY) and Identity Verification revenue was $49.0 million (down from $51.1 million YoY)[14] Reconciliation of GAAP to Non-GAAP Financial Measures This section reconciles GAAP financial results to non-GAAP measures by adjusting for specific non-recurring and non-cash items Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income This section details the adjustments from GAAP net income (loss) to non-GAAP net income for a clearer operational view Q3 GAAP to Non-GAAP Net Income Reconciliation (in thousands) | Description | Three Months Ended Jun 30, 2024 | Three Months Ended Jun 30, 2023 | | :--- | :--- | :--- | | GAAP Net Income (Loss) | $216 | ($428) | | Acquisition-related costs | $3,749 | $6,207 | | Stock-based compensation | $3,585 | $2,644 | | Restructuring costs | $1,070 | $14 | | Other adjustments | $4,257 | $3,115 | | Income tax effect & cash tax difference | ($1,140) | ($2,172) | | Non-GAAP Net Income | $11,997 | $9,470 | Reconciliation of GAAP Operating Income to Non-GAAP Operating Income This section outlines the adjustments from GAAP operating income to non-GAAP operating income for core business performance Q3 GAAP to Non-GAAP Operating Income Reconciliation (in thousands) | Description | Three Months Ended Jun 30, 2024 | Three Months Ended Jun 30, 2023 | | :--- | :--- | :--- | | GAAP Operating Income | $734 | $1,792 | | Acquisition-related costs | $3,749 | $6,207 | | Stock-based compensation | $3,585 | $2,644 | | Restructuring costs | $1,070 | $14 | | Other adjustments | $2,436 | $1,296 | | Non-GAAP Operating Income | $11,574 | $11,953 |