Mitek Systems, Inc.
Nov 7, 2017

Mitek Reports 31% Annual Revenue Growth and Increased Profitability for Fiscal 2017

SAN DIEGO, Nov. 07, 2017 (GLOBE NEWSWIRE) -- Mitek (NASDAQ:MITK) (www.miteksystems.com), a global leader in mobile capture and digital identity verification software solutions, today announced its financial results for the fourth quarter of fiscal 2017 and the full year ended September 30, 2017.

Fiscal Fourth Quarter 2017 Financial Highlights

Fiscal 2017 Full Year Financial Highlights

Commenting on the results, James DeBello, Chairman and CEO of Mitek, said:

"Our record revenue results for fiscal 2017 were driven by solid growth from both our digital identity software solutions and our industry leading Mobile Deposit. We made significant progress during the year expanding further into several key verticals with our digital identity verification software solutions, and with our recent acquisition of ICAR, we further strengthened our position as a global leader in this large and growing market. We continued to dominate the mobile deposit market in 2017 as consumer adoption continued to increase during the year. With our market momentum building in both the digital identity verification and mobile deposit markets, we are well positioned for continued growth in fiscal 2018 and beyond."

Fiscal 2018 Financial Guidance

For the fiscal year ending September 30, 2018, the Company expects full year total revenue to be between $57 million and $59 million, which would represent growth between 26% and 30% year over year. The Company expects to generate a non-GAAP profit margin of approximately 19% to 20% for fiscal 2018.

Conference Call Information

Mitek management will host a conference call and live webcast for analysts and investors today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the Company's financial results.

To listen to the live conference call, parties in the United States and Canada should dial 800-239-9838, access code 2219294. International parties should dial 323-794-2551, access code 2219294. Please dial in approximately 15 minutes prior to the start of the call.

A live and archived webcast of the conference call will be accessible on the "Investor Relations" section of the Company's website at www.miteksystems.com. In addition, a phone replay will be available approximately two hours following the end of the call and it will remain available for one week. To access the call replay dial-in information, please click here.

About Mitek

Mitek (MITK) is a global leader in mobile capture and identity verification software solutions. Mitek's identity verification solution allows an enterprise to verify a user's identity during a mobile transaction, enabling financial institutions, payments companies and other businesses operating in highly regulated markets to transact business safely while increasing revenue from the mobile channel. Mitek also reduces the friction in the mobile user experience with advanced data prefill. These innovative mobile solutions are embedded into the apps of more than 5,900 organizations and used by tens of millions of consumers daily for mobile check deposit, new account opening, insurance quoting and more. Learn more at www.miteksystems.com. [(MITK-F)]

Notice Regarding Forward-Looking Statements

Statements contained in this news release relating to the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company's long-term prospects and market opportunities are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company's ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company's products, the Company's ability to continue to develop, produce and introduce innovative new products in a timely manner or the outcome of any pending or threatened litigation and the timing of the implementation and launch of the Company's products by the Company's signed customers.

Additional risks and uncertainties faced by the Company are contained from time to time in the Company's filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2016 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC's website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company's actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Note Regarding Use of Non-GAAP Financial Measures

This news release contains non-GAAP financial measures for non-GAAP net income and non-GAAP net income per share that exclude stock compensation expenses, intellectual property litigation costs, acquisition-related costs and expenses, and the deferred tax benefit. These financial measures are not calculated in accordance with generally accepted accounting principles (GAAP) and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company's performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company's ongoing operating performance. Further, management and the Board of Directors utilize these non-GAAP financial measures to gain a better understanding of the Company's comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company's GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company's ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the Company's underlying business and provides a better understanding of how management plans and measures the Company's underlying business. 

 
MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands except share data)
     
  September 30, 2017 September 30, 2016
ASSETS    
Current assets:     
Cash and cash equivalents $12,289  $9,010 
Short-term investments  30,279   24,863 
Accounts receivable, net  7,099   4,949 
Other current assets  1,209   1,485 
Total current assets  50,876   40,307 
Long-term investments  3,780   1,952 
Property and equipment, net  613   440 
Goodwill and intangible assets  5,311   5,646 
Deferred income taxes  11,065    
Other non-current assets  74   40 
Total assets $71,719  $48,385 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $1,918  $1,318 
Accrued payroll and related taxes  3,709   3,263 
Deferred revenue, current portion  3,305   3,391 
Other current liabilities  602   355 
Total current liabilities  9,534   8,327 
Deferred revenue, non-current portion  85   259 
Other non-current liabilities  692   314 
Total liabilities  10,311   8,900 
Stockholders' equity:     
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding      
Common stock, $0.001 par value, 60,000,000 shares authorized, 33,724,392 and 32,781,704 issued and outstanding, as of September 30, 2017 and September 30, 2016, respectively  34   33 
Additional paid-in capital  78,677   71,036 
Accumulated other comprehensive loss  147   (42)
Accumulated deficit  (17,450)  (31,542)
Total stockholders' equity  61,408   39,485 
Total liabilities and stockholders' equity $71,719  $48,385 
     

 

 
MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except share data)
        
 Three Months Ended September 30, Twelve Months Ended September 30,
  2017  2016  2017  2016
Revenue       
Software$8,403 $6,540 $29,647 $22,586
SaaS, maintenance and consulting 4,501  3,130  15,743  12,115
Total revenue 12,904  9,670  45,390  34,701
Operating costs and expenses       
Cost of revenue-software 340  274   1,112  953
Cost of revenue-SaaS, maintenance and consulting 798  666   2,929  2,442
Selling and marketing 3,455  2,981  14,484  10,937
Research and development 2,926  2,334  10,430  7,794
General and administrative 2,962   2,038  11,310  8,575
Acquisition-related costs and expenses 690  536  2,356  2,176
Total operating costs and expenses 11,171  8,829  42,621  32,877
Operating income 1,733  841  2,769  1,824
Other income, net 121  23   402  134
Income before income taxes 1,854  864  3,171  1,958
Income tax benefit 11,012  96  10,921  1
Net income$12,866 $960 $14,092 $1,959
Net income per share - basic$0.38 $0.03 $0.43 $0.06
Net income per share - diluted$0.35 $0.03 $0.40 $0.06
Shares used in calculating net income per share - basic 33,522,169  32,086,223  33,082,999  31,586,535
Shares used in calculating net income per share - diluted 36,251,284  34,859,861  35,537,218  33,818,501
        

 

 
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except share data)
        
 Three Months Ended September 30, Twelve Months Ended September 30,
  2017   2016  2017   2016
Net income$12,866  $960 $14,092  $1,959
Non-GAAP adjustments:        
Acquisition-related costs and expenses 690   536  2,356   2,176
Litigation costs 51   47  51   460
Stock compensation expense 1,533   971  5,478   4,079
Benefit related to the release of deferred tax asset valuation allowance (11,035)    (11,035)  
Non-GAAP net income 4,105   2,514  10,942   8,674
Non-GAAP income per share - basic$0.12  $0.08 $0.33  $0.27
Non-GAAP income per share - diluted$0.11  $0.07 $0.31  $0.26
Shares used in calculating non-GAAP net income per share - basic 33,522,169   32,086,223  33,082,999   31,586,535
Shares used in calculating non-GAAP net income per share - diluted 36,251,284   34,859,861  35,537,218   33,818,501
         


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Read Mitek's latest blog post: http://www.miteksystems.com/blog

Investor Contact:
Todd Kehrli or Jim Byers
MKR Group, Inc.
mitk@mkr-group.com

Source: Mitek Systems, Inc.

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