mitk-20210429
0000807863FALSE00008078632021-04-292021-04-29

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2021
 
MITEK SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware001-3523187-0418827
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification No.)
   
600 B Street, Suite 100
San Diego,California 92101
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (619) 269-6800
Not Applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareMITK
The NASDAQ Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.
On April 29, 2021, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the second quarter ended March 31, 2021. The full text of the Company’s press release is attached hereto as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The exhibits shall be deemed to be filed or furnished, depending on the relevant item requiring such exhibit, in accordance with the provisions of Item 601 of Regulation S-K (17 CFR 229.601) and Instruction B.2 to this form.
Exhibit Number Description
99.1 Press Release issued on April 29, 2021
104
Cover Page Interactive Data File, formatting Inline Extensible Business Reporting Language (iXBRL)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  Mitek Systems, Inc.
    
April 29, 2021 By:/s/ Jeffrey C. Davison
   Jeffrey C. Davison
   Chief Financial Officer




Exhibit Index
 
Exhibit Number Description
99.1 
104
Cover Page Interactive Data File, formatting Inline Extensible Business Reporting Language (iXBRL)


Document

Mitek Reports Record Second Quarter Revenue With Total Revenue Up 24% Year Over Year

SAN DIEGO, CA, April 29, 2021 - Mitek (NASDAQ: MITK, www.miteksystems.com), a global leader in mobile capture and digital identify verification solutions, today reported record financial results for its second quarter of fiscal 2021 ended March 31, 2021. Total second quarter revenue increased 24% year over year fueled by an increase in demand for both mobile deposit and identity verification solutions as commerce continues its shift to digital channels.

Fiscal Second Quarter 2021 Financial Highlights

Total revenue increased 24% year over year to $28.8 million in a record second quarter.
Transactional identify verification revenue increased 50% year over year.
GAAP net income was $1.0 million, or $0.02 per diluted share.
Non-GAAP net income increased 34% year over year to $7.3 million, or $0.16 per diluted share.
Cash flow from operations was $7.3 million.
Completed successful convertible debt offering adding approximately $150 million in cash to the balance sheet.
Total cash and investments were $219.5 million at the end of the fiscal second quarter.

Commenting on the results, Max Carnecchia, CEO of Mitek, said:

“We are pleased to report another strong quarter across the board for Mitek driven by solid revenue growth from both our deposits and identity businesses. This is our second consecutive quarter of more than 45% growth in our transactional identity verification revenue, highlighting our strong performance in this expanding market. Our deposit solutions also delivered solid revenue growth as consumer adoption continues to increase. Mitek’s record second quarter financial performance reflects the team’s commitment to helping our customers and partners accelerate their digital transformation while at the same time mitigating fraud.”

Mitek is committed to providing convenience while preventing fraud in the digital world. The Company’s technology ensures that more businesses can transact digitally and secure their platforms through easy, fast and secure identity verification. Identity verification has never been more relevant. Almost all aspects of modern life now use digital channels, so the need to establish trust in the digital identities of customers, citizens, partners, and employees is rapidly rising. Mitek also remains the clear market leader in remote check deposit solutions, with thousands of financial organizations using its solutions, and approximately five billion transactions processed.

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 access the live call, dial 800-437-2398 (US and Canada) or +1 323-289-6576 (International) and give the participant passcode 6765079.

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 (NASDAQ: MITK) is a global leader in mobile capture and digital identity verification built on the latest advancements in computer vision and artificial intelligence. Mitek’s identity verification solutions enable organizations to verify an individual’s identity during digital transactions to reduce risk and meet regulatory requirements, while increasing revenue from digital channels. More than 7,500 organizations use Mitek to enable trust and convenience for mobile check deposit, new account opening and more. Mitek is based in San Diego, Calif., with offices across the U.S. and Europe. Learn more at www.miteksystems.com. [(MITK-F)]

Follow Mitek on LinkedIn, Twitter and YouTube, and read Mitek’s latest blog posts here.

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, the extent to which the COVID-19 outbreak and measures taken in response thereto impact our business, results of operations and financial condition, 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, 2020, 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, amortization of debt discount and issuance costs, income tax effect of pre-tax adjustments, and the cash tax difference. 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)
  
 March 31, 2021September 30, 2020
ASSETS  
Current assets:  
Cash and cash equivalents$53,935 $19,986 
Short-term investments131,314 40,035 
Accounts receivable, net14,162 15,612 
Contract assets3,577 5,187 
Prepaid expenses2,143 1,338 
Other current assets2,059 1,968 
Total current assets207,190 84,126 
Long-term investments34,258 1,963 
Property and equipment, net3,502 3,610 
Right-of-use assets4,791 5,407 
Intangible assets, net16,044 19,289 
Goodwill35,728 35,669 
Deferred income tax assets13,963 13,484 
Convertible senior notes hedge34,719 — 
Other non-current assets5,606 5,606 
Total assets$355,801 $169,154 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$2,878 $3,909 
Accrued payroll and related taxes7,586 8,882 
Deferred revenue, current portion11,353 7,973 
Lease liabilities, current portion1,755 1,819 
Acquisition-related contingent consideration— 753 
Other current liabilities994 1,020 
Total current liabilities24,566 24,356 
Convertible senior notes117,692 — 
Embedded conversion derivative34,719 — 
Deferred revenue, non-current portion585 1,597 
Lease liabilities, non-current portion4,636 5,327 
Deferred income tax liabilities4,673 4,649 
Other non-current liabilities1,201 982 
Total liabilities188,07236,911
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, 43,052,478 and 41,779,853 issued and outstanding, as of March 31, 2021 and September 30, 2020, respectively43 42 
Additional paid-in capital178,891 146,518 
Accumulated other comprehensive loss(397)(323)
Accumulated deficit(10,808)(13,994)
Total stockholders’ equity167,729 132,243 
Total liabilities and stockholders’ equity$355,801 $169,154 





MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except per share data)
  
 Three Months Ended March 31,Six Months Ended March 31,
 2021202020212020
Revenue  
Software and hardware$13,013 $11,453 $25,315 $22,968 
Services and other15,760 11,739 29,433 22,291 
Total revenue28,773 23,192 54,748 45,259 
Operating costs and expenses 
Cost of revenue—software and hardware670 864 1,915 1,635 
Cost of revenue—services and other3,122 2,322 6,015 4,484 
Selling and marketing(1)
8,530 6,686 15,915 13,334 
Research and development(1)
6,691 5,581 12,855 10,873 
General and administrative5,718 5,210 10,776 10,498 
Acquisition-related costs and expenses1,659 1,579 3,352 3,187 
Restructuring costs— (114)— (114)
Total operating costs and expenses26,390 22,128 50,828 43,897 
Operating income2,383 1,064 3,920 1,362 
Interest expense1,3191,319 — 
Other income, net371 32 468 335 
Income before income taxes1,435 1,096 3,069 1,697 
Income tax benefit (provision)(417)(188)117 (229)
Net income$1,018 $908 $3,186 $1,468 
Net income per share—basic$0.02 $0.02 $0.07 $0.04 
Net income per share—diluted$0.02 $0.02 $0.07 $0.03 
Shares used in calculating net income per share—basic
43,138 41,022 42,835 40,817 
Shares used in calculating net income per share—diluted
44,554 42,028 44,367 42,030 

(1) March 31, 2020 consolidated statements of operations reflect reclassifications to conform to the current year presentation.


























MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except per share data)
  
Three Months Ended March 31, Six Months Ended March 31,
2021202020212020
Net income$1,018 $908 $3,186 $1,468 
Non-GAAP adjustments:
Acquisition-related costs and expenses1,659 1,579 3,352 3,187 
Intellectual property litigation costs275 561 517 1,034 
Stock compensation expense2,968 2,308 5,715 4,611 
Restructuring costs— (114)— (114)
Amortization of debt discount and issuance costs1,147 — 1,147 — 
Income tax effect of pre-tax adjustments(1,391)(997)(2,468)(2,005)
Cash tax difference(1)
1,621 1,184 2,006 2,234 
Non-GAAP net income7,297 5,429 13,455 10,415 
Non-GAAP income per share—basic$0.17 $0.13 $0.31 $0.26 
Non-GAAP income per share—diluted$0.16 $0.13 $0.30 $0.25 
Shares used in calculating non-GAAP net income per share—basic
43,138 41,022 42,835 40,817 
Shares used in calculating non-GAAP net income per share—diluted
44,554 42,028 44,367 42,030 

(1)The company’s non-GAAP net income is calculated using a cash tax rate of 3% and 0% in fiscal years 2021 and 2020, respectively. The estimated cash tax rate is the estimated tax payable on the company’s tax returns as a percentage of estimated annual non-GAAP pre-tax net income. The company uses an estimated cash tax rate to adjust for the historical variation in the effective book tax rate associated with the reversal of valuation allowances, the utilization of research and development tax credits, and the utilization of loss carryforwards which currently have an overall effect of reducing taxes payable. The company believes that the cash tax rate provides a more transparent view of the company’s operating results. The company’s effective tax rate used for the purposes of calculating GAAP net income for the three months ended March 31, 2021 and 2020 was 29% and 17%, respectively. The company’s effective tax rate used for the purposes of calculating GAAP net income for the six months ended March 31, 2021 and 2020 was negative 4% and 13%, respectively.
________________ 

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