Mitek Systems, Inc. (MITK) research, news, and more from GeoInvesting

Company description

Sun, 19 Sep 2010 04:00:00 GMT

Our business develops and markets intelligent character recognition and document capture products and services deployed primarily in the financial services markets. Our technology is currently used to process checks by banks and is used in other markets for specialized applications. During the past fiscal year, we have leveraged our technology and industry customer relationships to enter the rapidly growing market for smartphone mobile business applications. Branded “Oomph” for Office on My Phone, our new mobile applications use our proprietary technology to capture and read data from photos of documents taken using camera-equipped smartphones. We have developed and deployed a software application that allows users to remotely deposit a check using their smartphone camera. Additionally, we have developed and deployed a receipt archival application and a mobile document faxing application using our proprietary technology.

Research

Fri, 12 Dec 2025 05:00:00 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($9.24; $421.7 market cap) announced fiscal 2025 results:

FY2025 sales of $179.7 million vs. $172.1 million in the prior year
FY 2025 SaaS revenue of $77.0 million vs $63.6 million in the previous year
FY2025 EPS of $0.95 (non-GAAP) vs. $0.96 (non-GAAP) in the prior year
Q4 2025 sales of $44.8 million vs. $43.2 million in the prior year
Q4 2025 SaaS revenue of $21.3 million vs. $18.0 million in the previous year
Q4 2025 EPS of $0.24 (non-GAAP) vs. $0.33 (non-GAAP) in the prior year

Management Comments:

“Mitek delivered a strong finish to fiscal 2025, returning to full-year organic growth, driven by an acceleration in SaaS growth and the continued scaling of our Fraud and Identity portfolio which now represents more than half of the business,” said Ed West, Mitek’s Chief Executive Officer. “This progress reflects disciplined execution and sharper operational rigor across the company. As we enter fiscal 2026, our focus is clear: ‘Unify and Grow’ - bringing identity, authentication, and fraud solutions together to deepen SaaS adoption, expand customer value, and position the business for continued durable, profitable growth.”

Mitek Systems, Inc. provides mobile image capture and digital identity verification solutions worldwide.

Research

Fri, 09 May 2025 20:12:28 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($8.81; $398.6 market cap) announced Q2 2025 results:

Q2 sales of $51.9 million vs. $47.0 million in the prior year, ahead of analyst estimates of $47.5 million
Q2 EPS of $0.36 (non-GAAP) vs. $0.24 (non-GAAP) in the prior year, well ahead of analyst estimates of $0.26
Raised full-year adjusted EBITDA margin guidance by100 bps to 26–29%.
Maintained FY2025 revenue guidance of $170–$180 million.

Management Commentary:

“Mitek delivered a strong second quarter, achieving all-time record revenue and record profitability, underscoring our continued momentum,” said Ed West, Mitek’s CEO. “SaaS revenue growth was particularly strong, increasing 15% year over year, as customers increasingly rely on our Identity Verification and Fraud solutions to address real-world challenges with speed and precision. At the same time, we are building a more agile Mitek, strengthening our foundation, and deepening engagement with banks, fintechs, telecoms and enterprises. These results reflect meaningful progress and position our core technologies as catalysts for durable, long-term growth. As we enter the second half of the year, our focus remains on disciplined execution.”

Mitek Systems, Inc. provides mobile image capture and digital identity verification solutions, offering products for remote check deposit, identity verification, fraud detection, and biometric authentication for financial institutions and businesses.

Research

Tue, 17 Dec 2024 05:00:00 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($9.49; $438.4 M market cap) reported its Q4 2024 results:

Sales of $43.2 million vs $37.7 million in the prior year and ahead of analyst estimates of $41.3 million
Company provided non-GAAP EPS of $0.33 vs $0.15 in the prior year and well ahead of analyst estimates of $0.17

“We reported a solid quarter of year over year revenue growth, profitability and cash generation driven by our team’s hard work and operational focus,” stated Mitek CFO, Dave Lyle. “The Mitek team has done a tremendous job in delivering value to our customers while we are focusing on driving efficient revenue growth over the long-term.”

Fiscal 2025 Full Year Guidance

Mitek expects fiscal 2025 full-year revenue to be between $170 million and $180 million. Analyst estimates are $179.5 million.
Mitek expects its fiscal 2025 full-year adjusted EBITDA margin to be between 24% and 28%.

Despite the nice earnings beat for this quarter, the EBITDA guidance implies flat to slightly down year over year results in earnings for 2025. We will continue to watch for more upside surprises as we like the industry they operate in.

MITK, a provider of mobile image capture and digital identity verification solutions worldwide, is a Model Portfolio holding and one of the stocks on our Artificial Intelligence screen.

Call to Action

Fri, 09 Aug 2024 15:03:06 GMT

**Call To Action on Mitek Systems, Inc. (NASDAQ:MITK)

We have Removed MITK from all model portfolios on the heels of weak Q3 2024 results and weak outlook. We may revisit as a Buy On Pullback Model Portfolio candidate in the future if we determine that the weak financial outing is a temporary event. At about a 20 cents EPS run-rate, the stock does have long-term value if the business can bounce back. The stock's performance during its tenure as a Model Portfolio Holding ranged between -32.13% (in light of today’s decline) and 39.8%

Research

Tue, 16 Apr 2024 14:04:46 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($14.83; $693.9 M market cap) reported its Q1 2024 results:

Sales of $36.9 million vs $45.7 million in the prior year and below analyst estimates of $39.7 million
Company provided non-GAAP EPS of $0.14 vs $0.31 in the prior year and below analyst estimates of $0.18

“As previously discussed, in the first quarter of last year we had a large one-time multi-year mobile deposit reorder that pulled forward about $7 million of future year revenue into that quarter, including $2.7 million that would have been recognized in fiscal Q1’24, creating a very difficult year over year comparison. It’s important to note that this quarter’s results are not representative of a business trend, in fact, to the contrary. With our fiscal 2024 guidance, which we are reiterating today, we expect our Deposits product revenue to grow 10 to 12% year over year on a normalized basis and our Identity product revenue to grow 10 to 12% year over year. We anticipate that much of this growth will occur in the second half of the fiscal year, with growth continuing in fiscal 2025. Having achieved product market fit with our new products, including Check Fraud Defender, MiVIP, MiPass and ID R&D biometrics software products, we have several growth drivers in place leveraging advanced AI and machine learning to meet evolving customer needs to enhance trust and convenience in digital interactions.”

Guidance:

Preliminary Q2 2024 revenue to be $46 to $47 million, slightly ahead of analyst estimates of $45.3 million
Full year revenue for fiscal 2024 to be $180 to $185 million, in line with analyst estimates of $181.8 million

MITK, a provider of mobile image capture and digital identity verification solutions worldwide, is a Model Portfolio holding and one of the stocks on our newly formed Artificial Intelligence screen.

Research

Tue, 09 Apr 2024 16:32:05 GMT

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.

Research

Wed, 20 Mar 2024 15:09:51 GMT

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

Research

Fri, 08 Dec 2023 17:48:52 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($10.68; $486.8 M market cap), announced plans to maximize shareholder value, preliminary full year 2023 results and provided 2024 guidance.

Total revenue increased 19% year over year to $171.9 million, slightly ahead of analyst estimates of $170.7 million.
GAAP net income was $7.8 million, or $0.17 per diluted share.
Non-GAAP net income was $43.8 million, or $0.94 per diluted share and slightly ahead of analyst estimates of $0.93.
Q4 sales of $37.6 million vs $37.4 million in the prior year and ahead of analyst estimates of $36.4.
Q4 EPS of $0.11 vs $0.20 in the prior year; ahead of analyst estimates of $0.10.
It appears the Company is succumbing to activist pressure to explore ways to maximize shareholder value.

MITK is a provider of mobile image capture and digital identity verification solutions worldwide.

“Mitek’s net revenue retention rate was over 115%, which again underscores the value our solutions deliver in the growing markets we serve. We also generated significant cash flow and strengthened our balance sheet in fiscal 2023, and with our market leading product portfolio in place, we believe that we do not need to do additional acquisitions to further penetrate the significant market opportunities we address. Instead, we are focused on using our cash flow to drive shareholder value in other ways, and we routinely assess all capital allocation alternatives, including opportunistic share repurchase programs. At this time, we are in a blackout period as we finalize our year-end audit and are thus limited in the actions we can take until we are outside of our blackout period."

Fiscal 2024 Full Year Guidance

Revenue to be in the range of $180.0 million to $185.0 million; current analyst estimates call for $179.8 million.
Non-GAAP operating margin for fiscal 2024 to be in the range of 30.0% to 31.0%.

Filing Status (saga continues)

The Nasdaq will likely issue a delist determination letter and the Company will have an opportunity to request a new hearing and an extension to complete the filing of such report. The Company plans to request such a hearing following receipt of a delist determination letter.

Research

Thu, 09 Nov 2023 15:54:40 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($10.52; $479.6M market cap), a provider of mobile image capture and digital identity verification solutions worldwide, saw a concerned shareholder issue a second letter to the board. The shareholder is asking the board to take immediate action on the following:

Meaningful corporate governance enhancements;
Instituting a large share repurchase to take advantage of the Company’s significant undervaluation;
Committing to operational efficiency; targeting at least 250 bps of annual EBITDA margin expansion; and
Running a comprehensive strategic review if Mitek’s management is unwilling or unable to balance revenue growth with this new, value-per-share driven capital allocation and margin improvement framework.

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

Research

Tue, 10 Oct 2023 19:30:49 GMT

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.

Research

Wed, 06 Sep 2023 04:00:00 GMT

Mitek Systems, Inc. (NASDAQ:MITK) ($11.30; $514.5 M market cap) provides mobile image capture and digital identity verification solutions worldwide. The company reported its Q1 2023 results (Dec 2022 quarter):

Sales of $45.7 million vs $32.5 million in the prior year and ahead of analyst estimates of $37.3 million
Company provided non-GAAP EPS of $0.31 vs $0.22 in the prior year and ahead of analyst estimates of $0.20

“Our strong performance in the first quarter highlights the continued relevance of our industry-leading solutions in the large and growing markets we address. As new types of fraud and scams emerge and existing ones see a resurgence, like check fraud, I’m proud of Mitek’s innovation and speed in responding to these growing threats. Our Identity revenue was up 15% year over year in the first quarter despite the difficult macro environment, reinforcing our solid position as a leader in the ever-changing identity and fraud landscape. Further bolstering our financial performance, our Deposits business delivered a particularly strong quarter, up 59% year over year, largely due to the signing of a large multi-year contract that locked in favorable pricing for Mitek over four years. Due to the unique terms of this one contract, we recognized additional license revenue relating to future periods of approximately $7.0 million in the first quarter. Looking ahead, we expect to release our fiscal 2023 second quarter results on September 14th, and we will host a conference call at that time to discuss the first half performance.”

Fiscal 2023 Guidance

“Mitek is raising its fiscal 2023 guidance for the year ending September 30, 2023, and now expects revenue to be in the range of $169.0 million to $171.0 million, an increase of approximately 18% year over year from the mid-point of the guidance range. In addition, Mitek now expects its non-GAAP operating margin for fiscal 2023 to be in the range of 30.0% to 31.0%.”

On August 7, 2023 we added MITK to our select model portfolio on the heels of cliff notes from MS Micropas.

Cliff Notes

Mon, 07 Aug 2023 13:43:40 GMT

Cliff Note from MS Microcaps on MITK - GARP - Strong Power Ranking - BigCapMicro - Financial Statement Restatement

Provides digital identity and digital fraud prevention software solutions. More specifically, mobile image capture and digital identity verification solutions. Clients, such as banks, use their solutions for activities related to things such as mobile check deposit, digital transactions and new account opening. The company has two lines of business.

Check deposit verification and image capture of information on checks
Digital identity solutions.

Revenue is generated through one time on-premise licenses and recurring SaaS revenue, 50%-50%.

Interestingly, the company has an AI angle to it that we don’t think the hype momo crowd has caught on to:

“a cloud software platform which uses artificial intelligence and machine learning to classify and extract data to enable mobile check deposit as well as aid the authentication of identity documents including passports, identity cards, and driver's licenses using a camera-equipped device.”

Reasons To Track:

Revenue growth since 2001 validates the business; from $9M to $144M.
Revenue is expected to increase at about 15% for the next 3 years.
Earnings Power Ranking of 9 coming up soon.
Strong patent position: 77 patents with expiration dates ranging from 2026 through 2037 and have filed for 18 additional domestic and international patents.
Seems to be getting closer on the resolution of severely past due 2022 10Qs and 10K filings (had changed auditors)
Industry trends are clearly in their favor as far as it goes for identity theft, a big priority for financial institutions.
More than 7,800 financial institutions use Mitek to enable trust and convenience for mobile check deposit, new account opening and more.

Caveats:

Ongoing legal issues
Although the company has been issuing financial press releases, it is not up to date with its filings (because it had changed auditors).
If the company does not get current with all its filings soon, shares could be delisted from the NASDAQ. The company is attempting to “buy” more time from the NASDAQ and mentioned in its CC that the 10K should be filed in 10 days (InfoArb). Has some customer concentration risk (20% from one customer).
Decline in use of checks over time (63% of revenue is related to check business)
Some customers are getting sued by a company as it relates to four auto capture patents. MITK is not part of the lawsuit, but we need to be aware of this risk. MITK is being proactive: “pursuing declaratory judgment action against USAA to prove that products do not infringe the four auto capture patents at issue.”

Valuation (year ends in Sept.): Valuation might be handicapped due to the lawsuit and late filing issues. Putting that aside for a moment, we think shares should trade at 15x its next year EPS of $1.16 or $17.40. If patent issues become a non-factor, we could see a serious expansion in the stock’s valuation multiples, given its strong IP portfolio and some strong industry tailwinds. Nice cash position of $180M. $149M in convertible debt due in 2026 that can only convert if shares exceed 130% of the conversion price ($20.85) for each of at least 20 trading days, as well as if a few other factors are met.

Research

Fri, 06 Nov 2015 16:01:46 GMT

Taking Closer Look At MITK ($3.55, marked up 15% pre-market)

MITK is a leading innovator of mobile capture and identity verification solutions. The company reported strong Q4 2015results. We are intrigued by the company’s mobile checking deposit product and will begin our due diligence process to learn more about the company.

Sales of $7.9 million vs $5.5 million in the prior year and ahead of analyst estimates of $6.5 million
Non-GAAP EPS of $0.09 vs $0.06 in the prior year and well ahead of analyst estimates of $0.03

Commentary from management:

“Our industry leading mobile check deposit product continued to be the primary driver of revenue growth in fiscal 2015, enabling us to achieve record revenue, net income and EPS. Mobile check deposit remains a tremendous growth opportunity as it currently represents less than 5% of the approximately 19 billion checks deposited in the U.S. each year, according to the most recent Fed study. Adoption by both consumers and businesses is growing rapidly, and we expect this trend to drive continued revenue growth for Mitek in fiscal 2016 and beyond. With our successful acquisition of IDchecker and launch of our Photo Verify product, we intend to further expand into the multi-billion-dollar mobile ID verification market in the coming year. Mitek has become the de facto standard in mobile capture in financial services and we intend to leverage this position by expanding into this new, high growth market.”

Valuation scenarios at:

Trailing P/E of 25 = $6.50
Trailing P/E of 20 = $5.20
15 on run rate of $0.09 = $5.40

THe company is not currently paying any taxes due to a large net operating loss carryforwards. Per the company's 10-Q:

“The Company’s deferred tax assets are primarily comprised of federal and state net operating loss carryforwards. Such federal and state net operating loss carryforwards begin to expire in the fiscal years ending September 30, 2018 and September 30, 2015, respectively. The Company carries a deferred tax valuation allowance equal to 100% of the net deferred tax assets. In recording this allowance, management has considered a number of factors, particularly the Company’s recent history of sustained operating losses. Management has concluded that a valuation allowance is required for 100% of the net deferred tax assets as it is more likely than not that the deferred tax assets will not be realized.”