mitk-20211104
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): November 4, 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 November 4, 2021, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the fourth quarter and fiscal year ended September 30, 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 November 4, 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.
    
November 4, 2021 By:/s/ Frank Teruel
   Frank Teruel
   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 Revenue and Earnings for Full Year Fiscal 2021

Company Continues to Expand its Market Leading Fraud Fighting Offerings into the Identity Authentication Market

SAN DIEGO, CA, November 4, 2021 - Mitek (NASDAQ: MITK, www.miteksystems.com), a global leader in digital fraud prevention, today reported financial results for both its fiscal 2021 fourth quarter and full year ended September 30, 2021. Total revenue for the full year fiscal 2021 increased 18% year over year, driven by increased demand for both digital identity verification solutions and mobile deposit, as commerce continues its rapid shift to digital channels.

Fiscal Fourth Quarter 2021 Financial Highlights

Total revenue increased 9% year over year to a record $33.3 million.
GAAP net income was $2.2 million, or $0.05 per diluted share.
Non-GAAP net income was $10.1 million, or $0.22 per diluted share.
Cash flow from operations was $12.3 million.
Total cash and investments were $227.4 million at the end of the quarter.

Fiscal 2021 Full Year Financial Highlights

Total revenue increased 18% year over year to a record $119.8 million.
GAAP net income was $8.4 million, or $0.19 per diluted share.
Non-GAAP net income increased 19% year over year to a record $34.2 million, or $0.76 per diluted share.
Full year cash flow from operations was a record $37.4 million.

"Fiscal 2021 was a breakout year for Mitek,” said CEO Max Carnecchia. “We again achieved record revenue, earnings and cash flow from operations, as we innovated faster and served more customers than ever before. Launching into fiscal 2022, we are strongly positioned, with both our market leading offerings and innovative product roadmap, to expand further into the identity authentication market and deliver the essential technologies required to help our customers fight identity fraud across the omnichannel.”

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 800-367-2403 (US and Canada) or +1 334-777-6978 (International) and give the participant passcode 8698102.

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 digital fraud prevention using its mobile capture and digital identity verification solutions built on the latest advancements in computer vision and artificial intelligence. Mitek’s identity verification solutions enable organizations to protect their customers by verifying 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, account protection, 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, restructuring costs, intellectual property litigation costs, executive transition 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)
 September 30, 2021September 30, 2020
ASSETS  
Current assets:  
Cash and cash equivalents$30,312 $19,986 
Short-term investments149,057 40,035 
Accounts receivable, net16,602 15,612 
Contract assets4,080 5,187 
Prepaid expenses1,920 1,338 
Other current assets2,085 1,968 
Total current assets204,056 84,126 
Long-term investments48,051 1,963 
Property and equipment, net3,671 3,610 
Right-of-use assets7,056 5,407 
Intangible assets, net28,734 19,289 
Goodwill62,687 35,669 
Deferred income tax assets10,511 13,484 
Convertible senior notes hedge48,208 — 
Other non-current assets6,310 5,606 
Total assets$419,284 $169,154 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$2,507 $3,909 
Accrued payroll and related taxes11,776 8,882 
Deferred revenue, current portion10,381 7,973 
Lease liabilities, current portion1,943 1,819 
Acquisition-related contingent consideration10,300 753 
Other current liabilities1,552 1,020 
Total current liabilities38,459 24,356 
Convertible senior notes120,918 — 
Embedded conversion derivative48,208 — 
Deferred revenue, non-current portion955 1,597 
Lease liabilities, non-current portion6,588 5,327 
Deferred income tax liabilities4,117 4,649 
Other non-current liabilities6,778 982 
Total liabilities226,02336,911
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, 44,168,745 and 41,779,853 issued and outstanding, as of September 30, 2021 and September 30, 2020, respectively44 42 
Additional paid-in capital199,935 146,518 
Accumulated other comprehensive loss(943)(323)
Accumulated deficit(5,635)(13,994)
Treasury stock, at cost, 7,773 and no shares as of September 30, 2021 and September 30, 2020, respectively(140)— 
Total stockholders’ equity193,261 132,243 
Total liabilities and stockholders’ equity$419,284 $169,154 





MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except per share data)
  
 Three Months Ended September 30,Twelve Months Ended September 30,
 2021202020212020
Revenue  
Software and hardware$17,781 $17,972 $60,069 $54,152 
Services and other15,490 12,666 59,728 47,158 
Total revenue33,271 30,638 119,797 101,310 
Operating costs and expenses 
Cost of revenue—software and hardware260 1,045 2,468 3,303 
Cost of revenue—services and other2,940 2,532 12,072 9,889 
Selling and marketing8,449 7,302 32,497 27,646 
Research and development8,241 6,096 28,042 22,859 
General and administrative6,081 5,902 22,490 22,284 
Acquisition-related costs and expenses2,945 1,691 8,521 6,575 
Restructuring costs— — — (114)
Total operating costs and expenses28,916 24,568 106,090 92,442 
Operating income4,355 6,070 13,707 8,868 
Interest expense1,586 5,129 — 
Other income, net105 61 655 541 
Income before income taxes2,874 6,131 9,233 9,409 
Income tax provision(636)(1,135)(824)(1,595)
Net income$2,238 $4,996 $8,409 $7,814 
Net income per share—basic$0.05 $0.12 $0.19 $0.19 
Net income per share—diluted$0.05 $0.12 $0.19 $0.18 
Shares used in calculating net income per share—basic
44,616 41,770 43,509 41,410 
Shares used in calculating net income per share—diluted
46,236 43,101 45,083 42,533 
























MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except per share data)
  
Three Months Ended September 30, Twelve Months Ended September 30,
2021202020212020
Net income$2,238 $4,996 $8,409 $7,814 
Non-GAAP adjustments:
Acquisition-related costs and expenses2,945 1,691 8,521 6,575 
Intellectual property litigation costs330 1,186 974 3,217 
Executive transition costs(1)
— — 428 — 
Stock compensation expense2,950 2,439 11,532 9,551 
Restructuring costs— — — (114)
Amortization of debt discount and issuance costs1,292 — 4,373 — 
Income tax effect of pre-tax adjustments(1,806)(1,067)(6,017)(4,267)
Cash tax difference(2)
2,183 2,173 5,964 5,832 
Non-GAAP net income10,132 11,418 34,184 28,608 
Non-GAAP income per share—basic$0.23 $0.27 $0.79 $0.69 
Non-GAAP income per share—diluted$0.22 $0.26 $0.76 $0.67 
Shares used in calculating non-GAAP net income per share—basic44,616 41,770 43,509 41,410 
Shares used in calculating non-GAAP net income per share—diluted46,236 43,101 45,083 42,533 

(1)Comprised of costs associated with the transition of the company’s former chief financial officer. Our non-GAAP financial measures exclude these transition costs as we believe that such expense is inconsistent with the normally recurring operations of our company and the inclusion of these costs makes it difficult to make period-to-period comparisons of our operating performance.
(2)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 September 30, 2021 and 2020 was 22% and 19%, respectively. The company’s effective tax rate used for the purposes of calculating GAAP net income for the twelve months ended September 30, 2021 and 2020 was 9% and 17%, respectively.
________________ 

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