Mitek Systems, Inc. (NASDAQ:MITK)

Mitek Systems, Inc. (NASDAQ:MITK) ($14.55; $680.8 M market cap) announced it has partnered with DataVisor, the world’s leading AI-powered fraud and risk platform, to enhance the platform’s comprehensive check fraud protection offerings.

“We're thrilled to partner with DataVisor to offer comprehensive check fraud detection,” stated Kerry Cantley, VP of Digital Banking Strategy at Mitek. “Together, we leverage our collective advanced technologies to safeguard financial transactions. By combining DataVisor's comprehensive platform with Mitek's robust Check Fraud Defender consortium, we've created a top-tier solution, setting new standards in proactive fraud prevention.”

MITK is a Model Portfolio holding and one of the stocks on our newly formed Artificial Intelligence screen published last week.

Mitek Systems, Inc. (NASDAQ:MITK) ($12.38; $564.3 M market cap) reported its Q4 2023 results:

• Sales of $37.6 million vs $39.6 million in the prior year and in line with analyst estimates of $37.2 million
• Company provided non-GAAP EPS of $0.15 vs $0.22 in the prior year and ahead of analyst estimates of $0.13

"In fiscal 2023, we delivered record revenue and profitability, driven by our commitment to innovation. With Deposit revenue up 20% and Identity revenue up 17% year over year, we've achieved remarkable growth. Our strong cash flow has further bolstered our balance sheet, while our net revenue retention rate was approximately 117% for the fiscal year, showcasing the value of our solutions and dedication to customer success. Having achieved product market fit, with established proof points for growth in our new products, including Check Fraud Defender, MiVIP, MiPass and ID R&D products, we have several growth drivers in place leveraging advanced AI and machine learning to meet evolving customer needs, while enhancing trust and convenience in digital interactions.”

2024 Guidance:

• Mitek expects full-year revenue to be in the range of $180.0 million to $185.0 million, a 6% growth rate at the midpoint of the range. In line with analyst full year 2024 revenue estimates of $182.0 million

Mitek Systems, Inc. (NASDAQ:MITK) ($11.12; $506.9 M market cap), a provider of mobile image capture and digital identity verification solutions worldwide, today received a notice from a concerned stockholder group who issued a letter to the company’s board urging the need for strategic alternatives. 

We urge you to read the full letter, below is a snapshot:

“Mitek is quick to blame others for its share price underperformance, citing sellers of its stock, the delinquency of its financials and difficult macro conditions as potential culprits for its depressed valuation. We believe the Board should reflect inwards. Since turning down ASG Technologies Group, Inc.’s sweetened $11.50 offer and ceasing to pursue strategic alternatives back in May 2019, Mitek’s equity has delivered a -1.8% annualized total return for stockholders versus 13.6% for the NASDAQ Composite Index and 3.8% for the Russell 2000 Index.”

On August 7, 2023, we added MITK to our Select Longs Model Portfolio on the heels of cliff notes from MS Micropas.