Mitek and Yinda Infocomm report gains amid biometrics market consolidation
Revenues from Mitek’s biometrics, digital identity verification and mobile deposit technologies jumped by 25 percent on a year-over-year bases to a company-record $31.8 million in the third quarter of its fiscal 2021 year.
Mitek’s GAAP net income was $3 million, or $0.07 per diluted share, while non-GAAP net income increased by 56 percent to $10.6 million, or $0.23 per diluted share. Revenue from transactional digital identity verification grew by 33 percent year-over-year. Cash flow from operations for the quarter totalled $9 million.
The biggest highlight in an eventful quarter for Mitek was the acquisition of ID R&D to integrate its face and voice biometrics and liveness detection.
The company says its technology is currently trusted by nearly 100 percent of U.S. banks.
“We are pleased to report an all-time record revenue quarter with strong growth from both our identity and deposits businesses,” comments Mitek CEO Max Carnecchia. “Mitek’s consistent, strong and rapid growth reflects the team’s commitment to helping our customers and partners accelerate their digital transformation and fight against fraud. With both the acquisition of ID R&D and the introduction of Check Fraud Defender this quarter, we continue our commitment to building trust in the digital world.”
Mitek also announced a $15 million share repurchase program as the quarter came to a close.
Yinda Infocomm still considering biometrics acquisitions
Yinda Infocomm Group earned Singapore $6.8 million (roughly US$5 million) for full-year 2021, with InterBIO (International Biometrics Pte) contributing S$1 million to the Group’s identity management business line in just two months, according to a company announcement.
The Group recorded an overall net loss, partially offset by the positive bottom-line contribution of InterBIO, which Yinda Infocomm acquired at the beginning of calendar 2021. At the same time, the Group invested in Tech5, an InterBIO partner, in a deal including a preferential licensing agreement for Tech5’s biometric technology in Asia.
The telecommunications side of the company in Singapore and Thailand provided lower revenue, in part due to disruption from government measures, sinking Yinda Infocomm’s total revenue by 31.3 percent on a year-over-year basis.
Given the financial results, it may not be surprising that Yinda Infocomm is planning to consider making more investments as it seeks a position as a ‘one-stop shop’ for digital identity management technology. The outlook for growth in commercial and government applications of biometrics for identity verification is promising, the company says.
“We have made notable progress in establishing a foothold within the digital identity management industry. Investments and acquisitions in key companies were made this year giving us access to advanced biometrics technology and digital identity management solutions,” states Yinda Infocomm Executive Director and Chief Executive Officer Pierre Prunier. “Identity management will be a key growth driver for the Group given the high demand by both the public and private sectors to innovate digital identification as an enabler of secure economic and social activity. In today’s modern digital age, having a robust and secure digital ID solution is the new opportunity in value creation for both individuals and institutions alike. InterBIO has contributed positively to the Group with a healthy profit margin and we are optimistic that InterBIO would continue to improve the profitability of the Group.”
InterBIO chipped in 15 percent of the company’s total revenue for the year, despite being acquired near the end of Yinda Infocomm’s fiscal year.
“We have been proactively exploring new investment targets and partners across the digital identity space and biometrics industry value chain,” Prunier adds. “Moving ahead, we will continue to be on the lookout to acquire capabilities that will complement our suite of technology offerings which would bring us closer to our strategic goal of being a truly one-stop identity management and biometrics technology solutions provider.”