Mitek decides against sale after quarterly mobile capture and biometrics revenues jump 40 percent
Mitek has reported a revenue increase of 40 percent year-over-year for Q2 2019 to a company-best $20 million on growth in both its mobile capture and digital identity portfolios. The company also announced that its Board of Directors has considered and ultimately decided against “strategic alternatives” such as being acquired.
“Identity verification is foundational to trust between parties in these interactions, and Mitek’s mission is empowering trust and convenience in these essential relationships,” says Mitek CEO Max Carnecchia. “We took another important step in delivering on that mission during the quarter, resulting in our significant operating progress and record second quarter revenue driven by strong growth in both of our product families.”
Despite the revenue gain, Mitek recorded a GAAP net less of $0.7 million, or $0.02 per share. Non-GAAP net income rose by 28 percent from Q2 2018 to $2.7 million, or $0.07 per diluted share.
“Over the past several months, our Board of Directors has led a process to engage with several interested parties to evaluate the relative benefits of various strategic alternatives, with a view to maximizing value for our shareholders,” Carnecchia revealed in the announcement. “Following a thorough review of the results, the Board of Directors determined that there were no offers that it deemed in the best interest of Mitek shareholders, and today, we are announcing that we have concluded this process. We continue to focus on maximizing the significant opportunities we see for Mitek in the marketplace and remain thoroughly committed to delivering shareholder value through operating and growing the business.”
Mitek’s cash flow from operations was $4.3 million, and total cash and investments for the company were $24.6 million at the close of the quarter on March 31. For the fiscal year ending September 30, 2019, the company has posted revenue guidance of $84 million to $86 million, or growth of 32 to 35 percent, with a non-GAAP profit margin of approximately 18 to 20 percent.
Since the quarter ended, Mitek upgraded its desktop browser software with auto-capture capabilities to support the roughly one-third of users who open online accounts via desktop computers.