Mitek Systems Inc (MITK) Reports Growth in Full-Year Revenue and Provides Fiscal 2024 Outlook
Total revenue for fiscal 2023 increased by 19% year-over-year to $171.9 million.
Non-GAAP net income reached $43.8 million, marking a significant financial achievement for the company.
MITK provides fiscal 2024 guidance with expected revenue between $180.0 million and $185.0 million.
Despite delays in filing, MITK plans to request an extension from Nasdaq following a delist determination letter.
On December 7, 2023, Mitek Systems Inc (NASDAQ:MITK) released its 8-K filing, announcing preliminary financial results for the fiscal year ended September 30, 2023, and providing guidance for the upcoming fiscal year. The company, a global leader in digital identity and fraud prevention, reported a 19% increase in total revenue, reaching $171.9 million. The GAAP net income was reported at $7.8 million, or $0.17 per diluted share, while the non-GAAP net income stood at $43.8 million, or $0.94 per diluted share. Cash flow from operations was strong at $31.4 million, and the company ended the fiscal year with $134.9 million in total cash and investments.
CEO and CFO Commentary
CEO Max Carnecchia expressed satisfaction with the company's performance, stating,
We exceeded our fiscal 2023 revenue guidance and delivered full-year revenue growth of 19% and a non-GAAP operating margin of 31% for our fiscal year ended September 30, 2023."
He highlighted the growth in Deposits and Identity revenue and emphasized the company's strong net revenue retention rate of over 115%. Carnecchia also noted the company's focus on driving shareholder value through cash flow and assessing capital allocation alternatives, including share repurchase programs.
Interim CFO Fuad Ahmad provided additional insights into the financials, mentioning a significant multi-year mobile deposit reorder that contributed to the fiscal 2023 revenue. Ahmad also committed to the Identity business reaching at least breakeven from a profitability standpoint by the end of fiscal 2024.
Fiscal 2024 Guidance and Filing Status
Looking ahead, MITK expects its full-year revenue for fiscal 2024 to be in the range of $180.0 million to $185.0 million, with a non-GAAP operating margin between 30.0% and 31.0%. However, the company anticipates a delay in filing its Annual Report on Form 10-K for the year ended September 30, 2023, due to late commencement of the year-end audit. MITK plans to request a hearing following receipt of a delist determination letter from Nasdaq.
Financial Performance Analysis
The non-GAAP net income reconciliation table provided by MITK shows a robust financial performance with a significant increase in non-GAAP net income from $39.6 million in fiscal 2022 to $43.8 million in fiscal 2023. This improvement is after considering various non-GAAP adjustments, including amortization, acquisition-related costs, and stock compensation expense. The company's focus on non-GAAP measures helps provide a clearer picture of its operational efficiency and underlying profitability.
In conclusion, Mitek Systems Inc (NASDAQ:MITK) has demonstrated a strong fiscal 2023 performance with notable revenue growth and a solid non-GAAP net income. The company's guidance for fiscal 2024 suggests continued growth, despite the anticipated delay in its annual filing. Investors and stakeholders can look forward to MITK's strategic focus on enhancing shareholder value and achieving profitability in its Identity business segment.
Explore the complete 8-K earnings release (here) from Mitek Systems Inc for further details.
This article first appeared on GuruFocus.
