Delaware | 001-35231 | 87-0418827 | |||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
|||||||||
770 First Avenue, Suite 425 | |||||||||||
San Diego, | California | 92101 | |||||||||
(Address of principal executive offices) | (Zip Code) |
☐ | 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)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.001 per share | MITK | Nasdaq Capital Market |
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. | ☐ |
Exhibit Number | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File, formatting Inline Extensible Business Reporting Language (iXBRL) |
Mitek Systems, Inc. | |||||||||||
December 16, 2024 | By: | /s/ Dave Lyle | |||||||||
Dave Lyle | |||||||||||
Chief Financial Officer |
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, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | |||||||||||||||||||||||
Software and hardware | $ | 18,341 | $ | 15,291 | $ | 81,872 | $ | 88,374 | |||||||||||||||
Services and other | 24,881 | 22,365 | 90,211 | 84,178 | |||||||||||||||||||
Total revenue | 43,222 | 37,656 | 172,083 | 172,552 | |||||||||||||||||||
Operating costs and expenses | |||||||||||||||||||||||
Cost of revenue—software and hardware (exclusive of depreciation & amortization) | 186 | 597 | 309 | 1,413 | |||||||||||||||||||
Cost of revenue—services and other (exclusive of depreciation & amortization) | 5,978 | 5,675 | 24,086 | 21,538 | |||||||||||||||||||
Selling and marketing | 9,538 | 11,117 | 40,769 | 40,551 | |||||||||||||||||||
Research and development | 6,073 | 6,484 | 34,642 | 28,988 | |||||||||||||||||||
General and administrative | 9,908 | 13,212 | 52,993 | 43,338 | |||||||||||||||||||
Amortization and acquisition-related costs | 3,710 | 3,744 | 15,291 | 19,046 | |||||||||||||||||||
Restructuring costs | 114 | 114 | 1,762 | 2,114 | |||||||||||||||||||
Total operating costs and expenses | 35,507 | 40,943 | 169,852 | 156,988 | |||||||||||||||||||
Operating income (loss) | 7,715 | (3,287) | 2,231 | 15,564 | |||||||||||||||||||
Interest expense | 2,364 | 2,401 | 9,259 | 9,063 | |||||||||||||||||||
Other income (expense), net | 1,851 | 2,121 | 6,119 | 3,840 | |||||||||||||||||||
Income (loss) before income taxes | 7,202 | (3,567) | (909) | 10,341 | |||||||||||||||||||
Income tax benefit (provision) | 1,371 | 2,123 | 4,187 | (2,314) | |||||||||||||||||||
Net income (loss) | $ | 8,573 | $ | (1,444) | $ | 3,278 | $ | 8,027 | |||||||||||||||
Net income (loss) per share—basic | $ | 0.19 | $ | (0.03) | $ | 0.07 | $ | 0.18 | |||||||||||||||
Net income (loss) per share—diluted | $ | 0.18 | $ | (0.03) | $ | 0.07 | $ | 0.17 | |||||||||||||||
Shares used in calculating net income (loss) per share—basic | 45,952 | 45,997 | 46,560 | 45,533 | |||||||||||||||||||
Shares used in calculating net income (loss) per share—diluted | 46,573 | 47,050 | 47,468 | 46,461 |
MITEK SYSTEMS, INC. | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(Unaudited) | |||||||||||
(amounts in thousands except share data) | |||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 93,456 | $ | 58,913 | |||||||
Short-term investments | 36,884 | 74,700 | |||||||||
Accounts receivable, net | 31,682 | 32,132 | |||||||||
Contract assets, current portion | 15,818 | 18,355 | |||||||||
Prepaid expenses | 4,514 | 3,513 | |||||||||
Other current assets | 2,697 | 2,396 | |||||||||
Total current assets | 185,051 | 190,009 | |||||||||
Long-term investments | 11,410 | 1,304 | |||||||||
Property and equipment, net | 2,564 | 2,829 | |||||||||
Right-of-use assets | 4,662 | 4,140 | |||||||||
Goodwill and intangible assets | 185,711 | 188,222 | |||||||||
Deferred income tax assets | 19,145 | 11,645 | |||||||||
Contract assets, non-current portion | 3,620 | 5,579 | |||||||||
Other non-current assets | 1,590 | 1,647 | |||||||||
Total assets | $ | 413,753 | $ | 405,375 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 7,236 | $ | 7,589 | |||||||
Accrued payroll and related taxes | 10,324 | 10,554 | |||||||||
Accrued liabilities | 424 | 26 | |||||||||
Accrued interest payable | 205 | 305 | |||||||||
Income tax payables | 162 | 4,329 | |||||||||
Deferred revenue, current portion | 21,231 | 17,360 | |||||||||
Lease liabilities, current portion | 805 | 1,902 | |||||||||
Acquisition-related contingent consideration | — | 7,976 | |||||||||
Other current liabilities | 1,760 | 1,456 | |||||||||
Total current liabilities | 42,147 | 51,497 | |||||||||
Convertible senior notes | 143,601 | 135,516 | |||||||||
Deferred revenue, non-current portion | 753 | 957 | |||||||||
Lease liabilities, non-current portion | 4,230 | 2,867 | |||||||||
Deferred income tax liabilities | 3,889 | 6,476 | |||||||||
Other non-current liabilities | 4,332 | 2,874 | |||||||||
Total liabilities | 198,952 | 200,187 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding | — | — | |||||||||
Common stock, $0.001 par value, 120,000,000 shares authorized, 44,998,939 and 45,591,199 issued and outstanding, as of September 30, 2024 and September 30, 2023, respectively | 45 | 46 | |||||||||
Additional paid-in capital | 247,326 | 228,691 | |||||||||
Accumulated other comprehensive loss | (2,302) | (14,237) | |||||||||
Accumulated deficit | (30,268) | (9,312) | |||||||||
Total stockholders’ equity | 214,801 | 205,188 | |||||||||
Total liabilities and stockholders’ equity | $ | 413,753 | $ | 405,375 |
MITEK SYSTEMS, INC. | |||||||||||||||||||||||
DISAGGREGATION OF REVENUE BY PRODUCT AND TYPE | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(amounts in thousands except share data) | |||||||||||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Deposits | |||||||||||||||||||||||
Deposits software and hardware | |||||||||||||||||||||||
Software | $ | 15,773 | $ | 13,243 | $ | 74,108 | $ | 78,212 | |||||||||||||||
Hardware | — | — | — | — | |||||||||||||||||||
Total deposits software and hardware | 15,773 | 13,243 | 74,108 | 78,212 | |||||||||||||||||||
Deposits services | |||||||||||||||||||||||
SaaS | 1,799 | 1,281 | 6,406 | 4,299 | |||||||||||||||||||
Maintenance | 5,846 | 5,511 | 22,275 | 20,710 | |||||||||||||||||||
Professional services / other | 266 | 264 | 769 | 913 | |||||||||||||||||||
Total deposits services | 7,911 | 7,056 | 29,450 | 25,922 | |||||||||||||||||||
Total deposits revenue | 23,684 | 20,299 | 103,558 | 104,134 | |||||||||||||||||||
Identity | |||||||||||||||||||||||
Identity software and hardware | |||||||||||||||||||||||
Software | 2,568 | 1,801 | 7,631 | 8,796 | |||||||||||||||||||
Hardware | — | 247 | 133 | 1,366 | |||||||||||||||||||
Total identity software and hardware | 2,568 | 2,048 | 7,764 | 10,162 | |||||||||||||||||||
Identity services | |||||||||||||||||||||||
SaaS | 16,188 | 14,178 | 57,182 | 55,149 | |||||||||||||||||||
Maintenance | 463 | 723 | 2,074 | 1,910 | |||||||||||||||||||
Professional services / other | 319 | 408 | 1,505 | 1,197 | |||||||||||||||||||
Total identity services | 16,970 | 15,309 | 60,761 | 58,256 | |||||||||||||||||||
Total identity revenue | 19,538 | 17,357 | 68,525 | 68,418 | |||||||||||||||||||
Total Revenue | $ | 43,222 | $ | 37,656 | $ | 172,083 | $ | 172,552 |
MITEK SYSTEMS, INC. | |||||||||||||||||||||||
NON-GAAP GROSS PROFIT RECONCILIATION | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Software and Hardware | |||||||||||||||||||||||
Revenue | $ | 18,341 | $ | 15,291 | $ | 81,872 | $ | 88,374 | |||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | 186 | 597 | 309 | 1,413 | |||||||||||||||||||
Depreciation and amortization | 1,189 | 1,113 | 4,634 | 4,436 | |||||||||||||||||||
GAAP gross profit for software and hardware | 16,966 | 13,581 | 76,929 | 82,525 | |||||||||||||||||||
Depreciation and amortization | 1,189 | 1,113 | 4,634 | 4,436 | |||||||||||||||||||
Non-GAAP gross profit for software and hardware |
$ | 18,155 | $ | 14,694 | $ | 81,563 | $ | 86,961 | |||||||||||||||
GAAP gross margin for software and hardware |
92.5 | % | 88.8 | % | 94.0 | % | 93.4 | % | |||||||||||||||
Non-GAAP gross margin for software and hardware |
99.0 | % | 96.1 | % | 99.6 | % | 98.4 | % | |||||||||||||||
Services & Other | |||||||||||||||||||||||
Services and other revenue | $ | 24,881 | $ | 22,365 | $ | 90,211 | $ | 84,178 | |||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | 5,978 | 5,675 | 24,086 | 21,538 | |||||||||||||||||||
Depreciation and amortization | 2,162 | 2,062 | 8,473 | 8,201 | |||||||||||||||||||
GAAP gross profit for services and other | 16,741 | 14,628 | 57,652 | 54,439 | |||||||||||||||||||
Depreciation and amortization | 2,162 | 2,062 | 8,473 | 8,201 | |||||||||||||||||||
Stock-based compensation expense |
127 | 152 | 574 | 468 | |||||||||||||||||||
Non-GAAP gross profit for services and other | $ | 19,030 | $ | 16,842 | $ | 66,699 | $ | 63,108 | |||||||||||||||
GAAP gross margin for services and other | 67.3 | % | 65.4 | % | 63.9 | % | 64.7 | % | |||||||||||||||
Non-GAAP gross margin for services and other | 76.5 | % | 75.3 | % | 73.9 | % | 75.0 | % | |||||||||||||||
Consolidated Results |
|||||||||||||||||||||||
Total revenue | $ | 43,222 | $ | 37,656 | $ | 172,083 | $ | 172,552 | |||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | 6,164 | 6,272 | 24,395 | 22,951 | |||||||||||||||||||
Depreciation and amortization | 3,351 | 3,175 | 13,107 | 12,637 | |||||||||||||||||||
GAAP gross profit | 33,707 | 28,209 | 134,581 | 136,964 | |||||||||||||||||||
Depreciation and amortization | 3,351 | 3,175 | 13,107 | 12,637 | |||||||||||||||||||
Stock-based compensation expense |
127 | 152 | 574 | 468 | |||||||||||||||||||
Non-GAAP gross profit | $ | 37,185 | $ | 31,536 | $ | 148,262 | $ | 150,069 | |||||||||||||||
GAAP gross margin | 78.0 | % | 74.9 | % | 78.2 | % | 79.4 | % | |||||||||||||||
Non-GAAP gross margin | 86.0 | % | 83.7 | % | 86.2 | % | 87.0 | % |
MITEK SYSTEMS, INC. | |||||||||||||||||||||||
NON-GAAP OPERATING EXPENSE RECONCILIATION | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Selling and marketing | $ | 9,538 | $ | 11,117 | $ | 40,769 | $ | 40,551 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | 462 | 600 | 3,041 | 3,023 | |||||||||||||||||||
Non-GAAP Selling and marketing | $ | 9,076 | $ | 10,517 | $ | 37,728 | $ | 37,528 | |||||||||||||||
Research and development | $ | 6,073 | $ | 6,484 | $ | 34,642 | $ | 28,988 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | (383) | 660 | 3,368 | 2,757 | |||||||||||||||||||
Non-GAAP Research and development | $ | 6,456 | $ | 5,824 | $ | 31,274 | $ | 26,231 | |||||||||||||||
General and administrative | $ | 9,908 | $ | 13,212 | $ | 52,993 | $ | 43,338 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Stock-based compensation expense | 1,517 | 1,261 | 5,641 | 4,215 | |||||||||||||||||||
Litigation and other legal costs | 251 | 250 | 3,496 | 1,369 | |||||||||||||||||||
Executive transition costs | 599 | 7 | 2,632 | 679 | |||||||||||||||||||
Non-recurring audit fees | 931 | 1,816 | 5,956 | 4,001 | |||||||||||||||||||
Enterprise risk, portfolio positioning and other related costs | — | — | 996 | — | |||||||||||||||||||
Non-GAAP General and administrative | $ | 6,610 | $ | 9,878 | $ | 34,272 | $ | 33,074 | |||||||||||||||
Total Non-GAAP Operating Expense | $ | 22,142 | $ | 26,219 | $ | 103,274 | $ | 96,833 |
MITEK SYSTEMS, INC. | |||||||||||||||||||||||
STOCK-BASED COMPENSATION EXPENSE | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of revenue | $ | 127 | $ | 152 | $ | 574 | $ | 468 | |||||||||||||||
Selling and marketing | 462 | 600 | 3,041 | 3,023 | |||||||||||||||||||
Research and development | (383) | 660 | 3,368 | 2,757 | |||||||||||||||||||
General and administrative | 1,517 | 1,261 | 5,641 | 4,215 | |||||||||||||||||||
Total stock-based compensation expense | $ | 1,723 | $ | 2,673 | $ | 12,624 | $ | 10,463 |
MITEK SYSTEMS, INC. | |||||||||||||||||||||||
NON-GAAP OPERATING INCOME RECONCILIATION | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(amounts in thousands) | |||||||||||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
GAAP operating income (loss) | $ | 7,715 | $ | (3,287) | $ | 2,231 | $ | 15,564 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization of acquisition-related intangibles | 3,711 | 3,784 | 15,156 | 16,992 | |||||||||||||||||||
Net changes in estimated fair value of acquisition-related contingent consideration | — | (38) | 136 | 2,056 | |||||||||||||||||||
Intellectual property litigation and other legal costs | 251 | 250 | 3,496 | 1,369 | |||||||||||||||||||
Executive transition costs | 599 | 7 | 2,632 | 679 | |||||||||||||||||||
Stock-based compensation expense | 1,723 | 2,673 | 12,624 | 10,463 | |||||||||||||||||||
Non-recurring audit fees | 931 | 1,816 | 5,956 | 4,001 | |||||||||||||||||||
Enterprise risk, portfolio positioning and other related costs | — | — | 996 | — | |||||||||||||||||||
Restructuring costs | 114 | 114 | 1,762 | 2,114 | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | 15,044 | $ | 5,319 | $ | 44,989 | $ | 53,238 | |||||||||||||||
Revenue | $ | 43,222 | $ | 37,656 | $ | 172,083 | $ | 172,552 | |||||||||||||||
Non-GAAP Operating Margin | 35 | % | 14 | % | 26 | % | 31 | % |
MITEK SYSTEMS, INC. | |||||||||||||||||||||||
GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(amounts in thousands except per share data) | |||||||||||||||||||||||
Three Months Ended September 30, | Twelve Months Ended September 30, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
GAAP net income (loss) | $ | 8,573 | $ | (1,444) | $ | 3,278 | $ | 8,027 | |||||||||||||||
Add: | |||||||||||||||||||||||
Income tax (benefit) provision | (1,371) | (2,123) | (4,187) | 2,314 | |||||||||||||||||||
Other (income) expense, net | (1,851) | (2,121) | (6,119) | (3,840) | |||||||||||||||||||
Interest Expense | 2,364 | 2,401 | 9,259 | 9,063 | |||||||||||||||||||
GAAP operating income (loss) | $ | 7,715 | $ | (3,287) | $ | 2,231 | $ | 15,564 | |||||||||||||||
Non-GAAP Adjustments | |||||||||||||||||||||||
Depreciation and amortization | $ | 375 | $ | 540 | $ | 1,755 | $ | 1,727 | |||||||||||||||
Amortization of intangibles | 3,711 | 3,784 | 15,156 | 16,992 | |||||||||||||||||||
Net changes in estimated fair value of acquisition-related contingent consideration | — | (38) | 136 | 2,056 | |||||||||||||||||||
Litigation and other legal costs | 251 | 250 | 3,496 | 1,369 | |||||||||||||||||||
Executive transition costs | 599 | 7 | 2,632 | 679 | |||||||||||||||||||
Stock-based compensation expense | 1,723 | 2,673 | 12,624 | 10,463 | |||||||||||||||||||
Non-recurring audit fees | 931 | 1,816 | 5,956 | 4,001 | |||||||||||||||||||
Enterprise risk, portfolio positioning and other related costs | — | — | 996 | — | |||||||||||||||||||
Restructuring costs | 114 | 114 | 1,762 | 2,114 | |||||||||||||||||||
Adjusted EBITDA | $ | 15,419 | $ | 5,859 | $ | 46,744 | $ | 54,965 | |||||||||||||||
Total revenue |
$ | 43,222 | $ | 37,656 | $ | 172,083 | $ | 172,552 | |||||||||||||||
Adjusted EBITDA margin |
36 | % | 16 | % | 27 | % | 32 | % |
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, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net income (loss) | $ | 8,573 | $ | (1,444) | $ | 3,278 | $ | 8,027 | |||||||||||||||
Non-GAAP adjustments: | |||||||||||||||||||||||
Amortization of acquisition-related intangibles |
3,711 | 3,784 | 15,156 | 16,992 | |||||||||||||||||||
Net changes in estimated fair value of acquisition-related contingent consideration | — | (38) | 136 | 2,056 | |||||||||||||||||||
Litigation and other legal costs(1) |
251 | 250 | 3,496 | 1,369 | |||||||||||||||||||
Executive transition costs | 599 | 7 | 2,632 | 679 | |||||||||||||||||||
Stock-based compensation expense | 1,723 | 2,673 | 12,624 | 10,463 | |||||||||||||||||||
Non-recurring audit fees | 931 | 1,816 | 5,956 | 4,001 | |||||||||||||||||||
Enterprise risk, portfolio positioning and other related costs(2) |
— | — | 996 | — | |||||||||||||||||||
Restructuring costs(3) |
114 | 114 | 1,762 | 2,114 | |||||||||||||||||||
Amortization of debt discount and issuance costs | 2,112 | 1,937 | 8,169 | 7,546 | |||||||||||||||||||
Income tax effect of pre-tax adjustments | (2,696) | (1,002) | (11,970) | (10,115) | |||||||||||||||||||
Cash tax difference(4) |
211 | (1,175) | 3,151 | 1,235 | |||||||||||||||||||
Non-GAAP net income | $ | 15,529 | $ | 6,922 | $ | 45,386 | $ | 44,367 | |||||||||||||||
Non-GAAP income per share—basic | $ | 0.34 | $ | 0.15 | $ | 0.97 | $ | 0.97 | |||||||||||||||
Non-GAAP income per share—diluted | $ | 0.33 | $ | 0.15 | $ | 0.96 | $ | 0.95 | |||||||||||||||
Shares used in calculating non-GAAP net income per share—basic | 45,952 | 45,997 | 46,560 | 45,533 | |||||||||||||||||||
Shares used in calculating non-GAAP net income per share—diluted | 46,573 | 47,050 | 47,468 | 46,461 |
MITEK SYSTEMS, INC. | |||||||||||||||||
NON-GAAP FREE CASH FLOW RECONCILIATION | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(amounts in thousands) | |||||||||||||||||
Twelve Months Ended September 30, | |||||||||||||||||
2024 | 2023 | 2022 | |||||||||||||||
Net cash provided by (used in) operating activities | $ | 31,688 | $ | 31,586 | $ | 21,119 | |||||||||||
Less: | |||||||||||||||||
Purchases of property and equipment, net | (1,438) | (1,034) | (1,126) | ||||||||||||||
Free Cash Flow | $ | 30,250 | $ | 30,552 | $ | 19,993 |