Mitek Raises Outlook as Fraud and Identity SaaS Revenue Jumps 37 Percent

Mitek has raised its full-year outlook after reporting fiscal third-quarter revenue of $54 million, an 18 percent increase from the same period a year earlier.

The company’s Fraud and Identity software-as-a-service business generated a record $24.8 million, up 37 percent year over year. Total SaaS revenue, which also includes other subscription products, reached $26.2 million, compared with $19.3 million in the prior-year quarter.

Mitek reported net income of $8.4 million, up from $2.4 million, while gross profit increased to $42.7 million from $35.5 million. Adjusted earnings before interest, taxes, depreciation and amortization rose 59 percent to $20.8 million. The adjusted EBITDA margin increased to 38.5 percent from 28.6 percent.

The company now expects full-year revenue of $195 million to $200 million and Fraud and Identity solutions revenue of $105 million to $109 million. Its forecast places growth at the midpoint at about 10 percent for total revenue and 19 percent for Fraud and Identity solutions revenue. The projected adjusted EBITDA margin is 32 percent to 34 percent.

The update follows Mitek’s previous outlook increase after its second quarter, when identity and fraud products were also central to growth. Mitek has continued widening distribution, including a partnership that placed its MiVIP identity-verification platform in the FICO Marketplace.

Chief Executive Ed West said a top-five U.S. bank completed pilot testing and joined the full Check Fraud Defender consortium during the quarter. Mitek also expanded partner and reseller channels intended to make the shared fraud-intelligence network available to more financial institutions.

The results included two leadership changes. Aaron Seyler will become chief revenue officer, bringing sales, channel partnerships, customer success, support and related teams under one executive. Mark Rossi will take over as non-executive board chair in October, succeeding Scott Carter, who will remain a director.

Cash and investments stood at $100.2 million at the end of June. Mitek attributed most of the decline from its September balance to the retirement of $155 million in convertible senior notes. Net cash provided by operating activities over the trailing 12 months was $53.7 million, compared with $57 million in the corresponding period.

Sources: Mitek

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By the ID Tech Editorial Team