Mitek earnings rise 36 percent in practical break-even Q3
Mitek has announced a 36 percent year-over-year increase in total revenue to $21.9 million in a record third quarter for its digital identity verification technology, up from $20 million in the previous quarter.
The company’s earnings report shows a GAAP net loss of roughly $100,000, or a break-even per diluted share, and non-GAAP net income of $4.8 million, or $0.12 per diluted share. Mitek’s total cash and investments at the close of Q3 were $28 million.
“We’re pleased to report that Mitek has seen record revenues each quarter this year, and our continued customer growth across our mobile deposit and identity verification products underscore the need for effective solutions that empower trust and convenience in the expanding digital economy,” states Mitek CEO Max Carnecchia. “While the market for identity verification is still in its relatively early days, it’s large and fast-growing and presents significant opportunity for Mitek. In the fiscal third quarter, we made important, needed operating adjustments to continue to focus our resources on these strategic areas.”
Mitek faced a one-time restructuring cost of $3.2 million in the quarter related to the operations of its A2iA subsidiary, as it reduced personnel. A2iA was acquired by Mitek in a deal in May of last year.
For the company’s fiscal year ending September 30, 2019, Mitek has updated its guidance to for full year revenue to between $84 million and $85 million, for year-over-year growth of 32 to 34 percent, with non-GAAP profit margins around 18 to 20 percent.
Mitek had been considering takeover offers, but announced a decision to continue under its own leadership with its Q2 2019 earnings.