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Mitek changing CEOs and buying back shares as ID verification focus increases

Mitek changing CEOs and buying back shares as ID verification focus increases
 

Mitek is ushering out CEO Max Carnecchia, who will be replaced by Executive Chairman Scott Carter on an interim basis at the end of May. The move coincides with the release of Mitek’s second-quarter results, but is not easily explained by them. The company has recently moved back into compliance with Nasdaq rules for timely financial reporting.

“Now that Mitek has successfully navigated through a period of delayed SEC filings, the Board of Directors determined that putting new leadership in place would provide the best path forward to realize those significant opportunities,” says Mitek Board of Directors’ Nominating and Governance Committee Chairperson Donna Wells.

The company will search for a long-term new CEO.

Carnecchia has been thanked by Wells on behalf of the board for “establishing and growing Mitek’s identity and fraud management business, which will form the foundation for our future success.”

“Mitek’s recent product innovations, including Check Fraud Defender, MiVIP, MiPass, and ID R&D biometrics, are gaining market acceptance, positioning us well for continued profitable growth,” Carter says. “I believe deeply in our vision and look forward to working with the leadership team and partners to continue strengthening our business and driving growth through operational discipline and execution. My focus will be on our people, our operations, and our customers, working together to advance our strategy.”

Q2 results and $50M share buyback program

Mitek reports $47 million in revenues in Q2, 2024, ended March 31. That compares to $46.1 million in the same quarter of 2023.

Revenues from identity verification, which includes Mitek and ID R&D’s biometrics portfolios, ticked up slightly to $17.5 million in the quarter.

GAAP net income was $0.3 million, or $0.01 per diluted share, well down from $5.2 million or $0.11 per diluted share a year ago.

Mitek is also planning to repurchase $50 million in common stock, which CFO David Lyle says is reflective of the company’s confidence in the long-term profitable growth strategy and opportunities ahead.

“With our strong balance sheet and cash flow, we can repurchase shares while maintaining sufficient cash resources to fund our operations and invest in our growth opportunities,” Lyle says.

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