Mitek Systems(US:MITK)2023-06-29 23:53Financial 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]