Mitek Systems(MITK)2020-11-06 01:50Financial Data and Key Metrics Changes - For fiscal year 2020, the company generated record revenue of $101.3 million, representing a growth of 20% year-over-year [8][39] - Non-GAAP net income for fiscal 2020 was $28.6 million or $0.67 per diluted share, up 66% year-over-year [8][40] - The company reported cash flow from operations of $24.1 million for the full year [41] Business Line Data and Key Metrics Changes - Deposits revenue increased 19% to $67.7 million, driven primarily by increased consumer adoption of mobile deposit [38] - Identity verification revenue increased 22% to $33.6 million, supported by a 36% growth in transactional revenue [38] - SaaS transactional revenue increased 36% year-over-year for fiscal 2020 [14] Market Data and Key Metrics Changes - The COVID-19 pandemic has accelerated the adoption of digital banking and mobile check deposits, leading to increased transaction levels in the deposits business [11][12] - The identity verification market is expected to grow significantly, with Gartner forecasting that by 2022, 80% of organizations will use document-centric identity proofing as part of their onboarding workflows [15][16] Company Strategy and Development Direction - The company is focused on enhancing its identity capabilities and product innovation, including advancements in biometric offerings and NFC-enabled solutions [19][18] - Mitek aims to navigate the pandemic effectively while delivering on customer priorities and long-term growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth of the identity verification market, despite current uncertainties [47][48] - The company is committed to exploring partnerships, acquisitions, and increased R&D to achieve product superiority [19] Other Important Information - Mitek has filed six new patent applications and was awarded 10 new patents during the last year, holding a total of 67 issued patents [27] - The company added a new board member, Kim Stevenson, who brings significant experience in cloud software [21] Q&A Session Summary Question: Growth driven by COVID in identity verification - Management acknowledged that COVID-19 has driven heavy transaction volumes, but there are uncertainties in the short term [46][47] Question: Competitive landscape in identity verification - Management noted that the market is attracting competition, and consolidation is expected as stronger players emerge [51][52] Question: Insights on mobile deposit trends - Management confirmed that mobile deposit usage has increased during COVID-19, with a shift in consumer behavior towards digital banking [56][60]