On October 26, 2023, Mitek Systems Inc (MITK, Financial), a global leader in digital identity and digital fraud prevention, released its financial results for the third quarter of fiscal 2023. The company reported a 10% year-over-year increase in total revenue, reaching $43.1 million in a record third quarter. Despite a GAAP net loss of $0.4 million, the non-GAAP net income was a robust $9.5 million. The company's cash flow from operations was $16.6 million, and total cash and investments were $131.0 million as of June 30, 2023.
Financial Highlights and CEO Commentary
In the first nine months of fiscal 2023, total revenue increased by 28% year over year to $134.9 million. The GAAP net income was $9.5 million, while non-GAAP net income was $37.4 million. Cash flow from operations was $28.1 million.
Mitek CEO Max Carnecchia commented on the results, stating,
Our third-quarter results put us on track to meet our full-year revenue guidance of 18% growth year over year and 30% to 31% non-GAAP operating margins for the full fiscal year ended September 30, 2023. We expect our Deposits revenue to grow over 20% year over year for our full fiscal year, while Identity revenue is on track to grow at least 18% year over year. Also, over the trailing twelve months ended June 30, 2023, Mitek’s net revenue retention rate was over 120%, which underscores the value our solutions deliver in the growing markets we serve. We also continue to drive toward profitability for our Identity business, which we expect to occur by the end of fiscal 2024. Lastly, during the third quarter, we continued to generate significant cash flow and strengthen our balance sheet."
Fiscal 2023 Full Year Guidance
Mitek is reiterating its fiscal 2023 guidance for the year ending September 30, 2023, expecting revenue to be in the range of $169.0 million to $171.0 million, an increase of approximately 18% year over year from the mid-point of the guidance range. Mitek expects its non-GAAP operating margin for fiscal 2023 to be in the range of 30.0% to 31.0%.
Balance Sheet and Income Statement Highlights
As of June 30, 2023, Mitek's total assets were $417.5 million, up from $360.4 million as of September 30, 2022. The company's total liabilities stood at $209.8 million, while total stockholders' equity was $207.6 million.
For the three months ended June 30, 2023, total revenue was $43.1 million, with software and hardware revenue contributing $21.4 million and services and other revenue contributing $21.6 million. The net loss for the period was $0.4 million.
Non-GAAP Net Income Reconciliation
The company reported a non-GAAP net income of $9.5 million for the three months ended June 30, 2023, and $37.4 million for the nine months ended June 30, 2023. These figures exclude certain costs and expenses such as amortization and acquisition-related costs, intellectual property litigation costs, executive transition costs, stock compensation expense, non-recurring audit fees, restructuring costs, and the cash tax difference.
Explore the complete 8-K earnings release (here) from Mitek Systems Inc for further details.
