Mitek Systems (NASDAQ:MITK) Announces Quarterly Earnings Results

Mitek Systems (NASDAQ:MITK) issued its earnings results on Thursday. The software maker reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.28 by $0.06, FiscalAI reports. The company had revenue of $54.04 million for the quarter, compared to the consensus estimate of $50.82 million. Mitek Systems had a return on equity of 16.74% and a net margin of 8.74%.

Here are the key takeaways from Mitek Systems’ conference call:

• Revenue and guidance increased: Fiscal Q3 revenue rose 18% year over year to $54 million, exceeding expectations, while full-year revenue guidance was raised to $195 million–$200 million and adjusted EBITDA margin guidance to 32%–34%.
• Check Fraud Defender continued to scale: Annual contract value grew 73% year over year to more than $22 million, a top-five U.S. bank joined the consortium after a successful pilot, and Fiserv began reselling the solution to thousands of financial institutions.
• Profitability and recurring revenue improved: Adjusted EBITDA margin reached approximately 38% in the quarter, adjusted EPS increased 58% to about $0.34, and SaaS revenue grew 36% and reached roughly 46% of trailing-12-month revenue.
• Some Q3 growth drivers may not persist: Fraud and identity SaaS benefited from an unexpected, regulation-driven surge in age-verification transactions, which management expects to ease modestly in Q4; check-verification revenue also remains exposed to renewal timing and the long-term decline in paper-check usage.

Mitek Systems Stock Performance

Shares of MITK opened at $16.81 on Friday. The company has a quick ratio of 2.61, a current ratio of 2.61 and a debt-to-equity ratio of 0.20. Mitek Systems has a 12 month low of $8.53 and a 12 month high of $21.05. The company’s fifty day moving average is $17.69 and its 200-day moving average is $15.03. The firm has a market cap of $759.12 million, a price-to-earnings ratio of 48.03 and a beta of 0.98.

Insider Transactions at Mitek Systems

In other Mitek Systems news, COO Garrett Gafke sold 21,108 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $14.19, for a total transaction of $299,522.52. Following the transaction, the chief operating officer directly owned 244,279 shares of the company’s stock, valued at $3,466,319.01. This represents a 7.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Corporate insiders own 2.20% of the company’s stock.

Institutional Trading of Mitek Systems

Several large investors have recently made changes to their positions in the stock. Tower Research Capital LLC TRC raised its stake in shares of Mitek Systems by 320.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 6,018 shares of the software maker’s stock valued at $60,000 after acquiring an additional 4,586 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in Mitek Systems by 4,147.9% during the third quarter. Russell Investments Group Ltd. now owns 9,940 shares of the software maker’s stock valued at $97,000 after purchasing an additional 9,706 shares during the last quarter. Bayesian Capital Management LP acquired a new position in Mitek Systems during the second quarter valued at approximately $136,000. Verition Fund Management LLC bought a new position in shares of Mitek Systems in the third quarter valued at approximately $141,000. Finally, Virtu Financial LLC bought a new position in shares of Mitek Systems in the fourth quarter valued at approximately $146,000. Institutional investors own 83.64% of the company’s stock.

Analyst Upgrades and Downgrades

MITK has been the subject of several research reports. Weiss Ratings upgraded shares of Mitek Systems from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, May 11th. Northland Securities set a $17.00 target price on shares of Mitek Systems in a research report on Wednesday, April 15th. Zacks Research lowered shares of Mitek Systems from a “strong-buy” rating to a “hold” rating in a research note on Thursday, April 16th. Finally, Wall Street Zen cut shares of Mitek Systems from a “strong-buy” rating to a “buy” rating in a report on Saturday, May 9th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $16.00.

Mitek Systems Company Profile

Mitek Systems, Inc (NASDAQ: MITK) is a software company specializing in mobile capture and digital identity verification solutions. Headquartered in San Diego, California, Mitek develops and licenses patented technology that enables organizations to securely capture, authenticate and process identity documents, checks and other physical media using smartphones and other digital devices. Its platforms leverage advanced image processing, machine learning and biometrics to streamline customer onboarding and prevent fraud in real time.

The company’s core offerings include mobile check deposit and deposit automation tools for financial institutions, as well as identity verification and authentication services for banks, fintechs, insurers and government agencies.