Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com, “Mitek”
or the “Company”), a global leader in digital identity
verification, mobile capture and fraud management, today reported
financial results for its fourth quarter ended September 30, 2024
and provided guidance for its 2025 fiscal year ending September 30,
2025.
“We reported a solid quarter of year over year revenue growth,
profitability and cash generation driven by our team’s hard work
and operational focus,” stated Mitek CFO, Dave Lyle. “The Mitek
team has done a tremendous job in delivering value to our customers
while we are focusing on driving efficient revenue growth over the
long-term.”
"Mitek has a rich and deep history with financial institutions
and other highly regulated businesses that require comprehensive,
enterprise level solutions. This experience, combined with our
market leading technologies, innovation and domain expertise,
position us well following a year of significant change,” commented
Ed West, Mitek’s recently appointed CEO. “By advancing our
AI-driven solutions and expanding our fraud and identity detection
capabilities, we are well positioned to address the growing fraud
threats of the digital economy. In the near term, we are focused on
refining strategies and optimizing resources to ensure organic
growth and operational excellence, while building a foundation for
long-term success and driving shareholder value,” added West.
Fiscal 2024 Fourth Quarter Financial Highlights
GAAP
- Revenue of $43.2 million grew 15% year-over-year,
compared to $37.7 million a year ago.
- GAAP operating income was $7.7 million, compared to
negative $3.3 million a year ago.
- GAAP operating margin was 18%, compared to negative 9% a
year ago.
- GAAP net income was $8.6 million, compared to a GAAP net
loss of $1.4 million a year ago.
- GAAP net income per diluted share was $0.18, compared to
negative $0.03 a year ago.
- Total cash and investments was $141.8 million at
September 30, 2024, an increase of $8.6 million from $133.2 million
at June 30, 2024.
- Mitek repurchased 1.4 million shares at an average per
share price of $9.94, totaling approximately $14.2 million.
Non-GAAP
- Adjusted EBITDA was $15.4 million, compared to $5.9
million a year ago.
- Adjusted EBITDA margin was 36%, compared to 16% a year
ago.
- Non-GAAP operating income was $15.0 million, compared to
$5.4 million a year ago.
- Non-GAAP operating margin was 35%, compared to 14% a
year ago.
- Non-GAAP net income was $15.5 million, compared to $6.9
million a year ago.
- Non-GAAP net income per diluted share was $0.33,
compared to $0.15 a year ago.
Fiscal 2024 Full Year Financial Highlights
GAAP
- Revenue was $172.1 million, compared to $172.6 million a
year ago.
- GAAP operating income was $2.2 million, compared to
$15.6 million a year ago.
- GAAP operating margin was 1%, compared to 9% a year
ago.
- GAAP net income was $3.3 million, compared to $8.0
million a year ago.
- GAAP net income per diluted share was $0.07, compared to
$0.17 per diluted share a year ago.
- Mitek repurchased 2.2 million shares at an average per
share price of $10.78, totaling approximately $24.2 million with a
plan that was authorized in May of this year.
Non-GAAP
- Adjusted EBITDA was $46.7 million, compared to $55.0
million a year ago.
- Adjusted EBITDA margin was 27%, compared to 32% a year
ago.
- Non-GAAP operating income was $44.9 million, compared to
$51.2 million a year ago.
- Non-GAAP operating margin was 26%, compared to 30% a
year ago.
- Non-GAAP net income was $45.4 million, compared to $44.4
million a year ago.
- Non-GAAP net income per diluted share was $0.96,
compared to $0.95 a year ago.
- Free Cash Flow was $30.3 million, compared to $30.6
million a year ago.
Fiscal 2025 Full Year Guidance
Mitek is providing guidance for its fiscal year ending September
30, 2025, as follows:
- Mitek expects fiscal 2025 full-year revenue to be between $170
million and $180 million.
- Mitek expects its fiscal 2025 full-year adjusted EBITDA margin
to be between 24% and 28%.
Conference Call Information
Mitek management will host a conference call and live webcast
for analysts and investors today at 2:00 p.m. Pacific Time (5:00
p.m. Eastern Time) to discuss the Company’s financial results for
its fiscal 2024 fourth quarter and full year ended September 30,
2024. To access the live call, dial 844-481-3005 (US and Canada) or
+1 412-317-1889 (International) and ask to be joined to the Mitek
call. A live and archived conference call webcast will also be
accessible on the Investor Relations section of the Company’s
website at www.miteksystems.com. A phone replay will be available
approximately two hours after the end of the call and will remain
available for one week. The phone call replay can be accessed by
dialing 877-344-7529 (US or Canada) or +1 412-317-0088
(International) and entering the passcode: 2834298.
About Mitek Systems, Inc.
Mitek (NASDAQ: MITK) is a global leader in digital access,
founded to bridge the physical and digital worlds. Mitek’s advanced
identity verification technologies and global platform make digital
access faster and more secure than ever, providing companies new
levels of control, deployment ease and operation, while protecting
the entire customer journey. With solutions trusted by 7,900
organizations around the world, including the majority of North
American financial institutions which rely on our mobile check
deposit solutions, Mitek helps companies reduce risk and meet
regulatory requirements. Learn more at www.miteksystems.com.
[(MITK-F)]
Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest
blog posts here.
Notice Regarding Forward-Looking Statements
Statements contained in this news release relating to the
Company or its management’s intentions, hopes, beliefs,
expectations or predictions of the future, including, but not
limited to, statements relating to the Company’s fiscal 2025
guidance, are forward-looking statements. Such forward-looking
statements are subject to a number of risks and uncertainties,
including, but not limited to, risks related to the Company’s
ability to withstand negative conditions in the global economy, a
lack of demand for or market acceptance of the Company’s products,
the impact of the Company’s acquisition of HooYu Ltd. including any
operational or cultural difficulties associated with the
integration of the businesses of Mitek and HooYu Ltd., the
Company’s ability to continue to develop, produce and introduce
innovative new products in a timely manner, the Company’s ability
to capitalize on a growing market, quarterly variations in revenue,
the profitability of certain sectors of the Company, the
performance of the Company’s growth initiatives, the outcome of any
pending or threatened litigation or investigation, and the timing
of the implementation and launch of the Company’s products by the
Company’s signed customers.
Additional risks and uncertainties faced by the Company are
contained from time to time in the Company’s filings with the U.S.
Securities and Exchange Commission (SEC), including, but not
limited to, the Company’s Annual Report on Form 10-K for the fiscal
year ended September 30, 2024, as filed with the SEC on December
16, 2024 and its quarterly reports on Form 10-Q and current reports
on Form 8-K, which you may obtain for free on the SEC’s website at
www.sec.gov. Collectively, these risks and uncertainties could
cause the Company’s actual results to differ materially from those
projected in its forward-looking statements and you are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. The Company disclaims any
intention or obligation to update, amend or clarify these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
Note Regarding Use of Non-GAAP Financial Measures
This news release contains non-U.S. generally accepted
accounting principles (“GAAP”) financial measures for non-GAAP cost
of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP
net income, non-GAAP net income per share, non-GAAP operating
income, non-GAAP operating margin, adjusted EBITDA, adjusted EBITDA
margin and non-GAAP operating expense that exclude
acquisition-related costs and expenses, litigation and other legal
costs, executive transition costs, stock compensation expense,
non-recurring audit fees, enterprise risk, portfolio positioning
and other related costs, restructuring costs and amortization of
debt discount and issuance costs. These financial measures are not
calculated in accordance with GAAP and are not based on any
comprehensive set of accounting rules or principles. In evaluating
the Company’s performance, management uses certain non-GAAP
financial measures to supplement financial statements prepared
under GAAP. Management believes these non-GAAP financial measures
provide a useful measure of the Company’s operating results, a
meaningful comparison with historical results and with the results
of other companies, and insight into the Company’s ongoing
operating performance. Further, management and the Board of
Directors of the Company utilize these non-GAAP financial measures
to gain a better understanding of the Company’s comparative
operating performance from period-to-period and as a basis for
planning and forecasting future periods. Management believes these
non-GAAP financial measures, when read in conjunction with the
Company’s GAAP financial statements, are useful to investors
because they provide a basis for meaningful period-to-period
comparisons of the Company’s ongoing operating results, including
results of operations against investor and analyst financial
models, which helps identify trends in the Company’s underlying
business and provides a better understanding of how management
plans and measures the Company’s underlying business.
The Company has not provided a reconciliation of its forward
outlook for non-GAAP operating margin with its forward-looking GAAP
operating margin in reliance on the unreasonable efforts exception
provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company
is unable, without unreasonable efforts, to quantify share-based
compensation expense, which is excluded from our non-GAAP operating
margin, as it requires additional inputs such as the number of
shares granted and market prices that are not ascertainable due to
the volatility of the Company’s share price. Additionally, a
significant portion of the Company’s operations are in foreign
countries and the transactional currencies are primarily Euros and
British pound sterling and the Company is not able to predict
fluctuations in those currencies without unreasonable efforts. The
Company expects these items may have a potentially significant
impact on future GAAP financial results.
We define free cash flow as net cash provided by operating
activities, less cash used for purchases of property and equipment.
We define free cash flow margin as free cash flow as a percentage
of revenue. In addition to the reasons stated above, we believe
that free cash flow is useful to investors as a liquidity measure
because it measures our ability to generate or use cash in excess
of our capital investments in property and equipment in order to
enhance the strength of our balance sheet and further invest in our
business and potential strategic initiatives. A limitation of the
utility of free cash flow as a measure of our liquidity is that it
does not represent the total increase or decrease in our cash
balance for the period. We use free cash flow in conjunction with
traditional U.S. GAAP measures as part of our overall assessment of
our liquidity, including the preparation of our annual operating
budget and quarterly forecasts and to evaluate the effectiveness of
our business strategies. There are a number of limitations related
to the use of free cash flow as compared to net cash provided by
operating activities, including that free cash flow includes
capital expenditures, the benefits of which are realized in periods
subsequent to those when expenditures are made.
Mitek encourages investors to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures,
which it includes in press releases announcing quarterly financial
results, including this press release, and not to rely on any
single financial measure to evaluate Mitek’s business.
MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
(amounts in thousands except
per share data)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
Revenue
Software and hardware
$
18,341
$
15,291
$
81,872
$
88,374
Services and other
24,881
22,365
90,211
84,178
Total revenue
43,222
37,656
172,083
172,552
Operating costs and expenses
Cost of revenue—software and hardware
(exclusive of depreciation & amortization)
186
597
309
1,413
Cost of revenue—services and other
(exclusive of depreciation & amortization)
5,978
5,675
24,086
21,538
Selling and marketing
9,538
11,117
40,769
40,551
Research and development
6,073
6,484
34,642
28,988
General and administrative
9,908
13,212
52,993
43,338
Amortization and acquisition-related
costs
3,710
3,744
15,291
19,046
Restructuring costs
114
114
1,762
2,114
Total operating costs and expenses
35,507
40,943
169,852
156,988
Operating income (loss)
7,715
(3,287
)
2,231
15,564
Interest expense
2,364
2,401
9,259
9,063
Other income (expense), net
1,851
2,121
6,119
3,840
Income (loss) before income taxes
7,202
(3,567
)
(909
)
10,341
Income tax benefit (provision)
1,371
2,123
4,187
(2,314
)
Net income (loss)
$
8,573
$
(1,444
)
$
3,278
$
8,027
Net income (loss) per share—basic
$
0.19
$
(0.03
)
$
0.07
$
0.18
Net income (loss) per share—diluted
$
0.18
$
(0.03
)
$
0.07
$
0.17
Shares used in calculating net income
(loss) per share—basic
45,952
45,997
46,560
45,533
Shares used in calculating net income
(loss) per share—diluted
46,573
47,050
47,468
46,461
MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(amounts in thousands except
share data)
September 30, 2024
September 30, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
93,456
$
58,913
Short-term investments
36,884
74,700
Accounts receivable, net
31,682
32,132
Contract assets, current portion
15,818
18,355
Prepaid expenses
4,514
3,513
Other current assets
2,697
2,396
Total current assets
185,051
190,009
Long-term investments
11,410
1,304
Property and equipment, net
2,564
2,829
Right-of-use assets
4,662
4,140
Goodwill and intangible assets
185,711
188,222
Deferred income tax assets
19,145
11,645
Contract assets, non-current portion
3,620
5,579
Other non-current assets
1,590
1,647
Total assets
$
413,753
$
405,375
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
7,236
$
7,589
Accrued payroll and related taxes
10,324
10,554
Accrued liabilities
424
26
Accrued interest payable
205
305
Income tax payables
162
4,329
Deferred revenue, current portion
21,231
17,360
Lease liabilities, current portion
805
1,902
Acquisition-related contingent
consideration
—
7,976
Other current liabilities
1,760
1,456
Total current liabilities
42,147
51,497
Convertible senior notes
143,601
135,516
Deferred revenue, non-current portion
753
957
Lease liabilities, non-current portion
4,230
2,867
Deferred income tax liabilities
3,889
6,476
Other non-current liabilities
4,332
2,874
Total liabilities
198,952
200,187
Stockholders’ equity:
Preferred stock, $0.001 par value,
1,000,000 shares authorized, none issued and outstanding
—
—
Common stock, $0.001 par value,
120,000,000 shares authorized, 44,998,939 and 45,591,199 issued and
outstanding, as of September 30, 2024 and September 30, 2023,
respectively
45
46
Additional paid-in capital
247,326
228,691
Accumulated other comprehensive loss
(2,302
)
(14,237
)
Accumulated deficit
(30,268
)
(9,312
)
Total stockholders’ equity
214,801
205,188
Total liabilities and stockholders’
equity
$
413,753
$
405,375
MITEK SYSTEMS, INC.
DISAGGREGATION OF REVENUE BY
PRODUCT AND TYPE
(Unaudited)
(amounts in thousands except
share data)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
Deposits
Deposits software and hardware
Software
$
15,773
$
13,243
$
74,108
$
78,212
Hardware
—
—
—
—
Total deposits software and hardware
15,773
13,243
74,108
78,212
Deposits services
SaaS
1,799
1,281
6,406
4,299
Maintenance
5,846
5,511
22,275
20,710
Professional services / other
266
264
769
913
Total deposits services
7,911
7,056
29,450
25,922
Total deposits revenue
23,684
20,299
103,558
104,134
Identity
Identity software and hardware
Software
2,568
1,801
7,631
8,796
Hardware
—
247
133
1,366
Total identity software and hardware
2,568
2,048
7,764
10,162
Identity services
SaaS
16,188
14,178
57,182
55,149
Maintenance
463
723
2,074
1,910
Professional services / other
319
408
1,505
1,197
Total identity services
16,970
15,309
60,761
58,256
Total identity revenue
19,538
17,357
68,525
68,418
Total Revenue
$
43,222
$
37,656
$
172,083
$
172,552
MITEK SYSTEMS, INC.
NON-GAAP GROSS PROFIT
RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
Software and Hardware
Revenue
$
18,341
$
15,291
$
81,872
$
88,374
Cost of revenue (exclusive of depreciation
and amortization)
186
597
309
1,413
Depreciation and amortization
1,189
1,113
4,634
4,436
GAAP gross profit for software and
hardware
16,966
13,581
76,929
82,525
Depreciation and amortization
1,189
1,113
4,634
4,436
Non-GAAP gross profit for software and
hardware
$
18,155
$
14,694
$
81,563
$
86,961
GAAP gross margin for software and
hardware
92.5
%
88.8
%
94.0
%
93.4
%
Non-GAAP gross margin for software and
hardware
99.0
%
96.1
%
99.6
%
98.4
%
Services & Other
Services and other revenue
$
24,881
$
22,365
$
90,211
$
84,178
Cost of revenue (exclusive of depreciation
and amortization)
5,978
5,675
24,086
21,538
Depreciation and amortization
2,162
2,062
8,473
8,201
GAAP gross profit for services and
other
16,741
14,628
57,652
54,439
Depreciation and amortization
2,162
2,062
8,473
8,201
Stock-based compensation expense
127
152
574
468
Non-GAAP gross profit for services and
other
$
19,030
$
16,842
$
66,699
$
63,108
GAAP gross margin for services and
other
67.3
%
65.4
%
63.9
%
64.7
%
Non-GAAP gross margin for services and
other
76.5
%
75.3
%
73.9
%
75.0
%
Consolidated Results
Total revenue
$
43,222
$
37,656
$
172,083
$
172,552
Cost of revenue (exclusive of depreciation
and amortization)
6,164
6,272
24,395
22,951
Depreciation and amortization
3,351
3,175
13,107
12,637
GAAP gross profit
33,707
28,209
134,581
136,964
Depreciation and amortization
3,351
3,175
13,107
12,637
Stock-based compensation expense
127
152
574
468
Non-GAAP gross profit
$
37,185
$
31,536
$
148,262
$
150,069
GAAP gross margin
78.0
%
74.9
%
78.2
%
79.4
%
Non-GAAP gross margin
86.0
%
83.7
%
86.2
%
87.0
%
MITEK SYSTEMS, INC.
NON-GAAP OPERATING EXPENSE
RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
Selling and marketing
$
9,538
$
11,117
$
40,769
$
40,551
Non-GAAP adjustments:
Stock-based compensation expense
462
600
3,041
3,023
Non-GAAP Selling and marketing
$
9,076
$
10,517
$
37,728
$
37,528
Research and development
$
6,073
$
6,484
$
34,642
$
28,988
Non-GAAP adjustments:
Stock-based compensation expense
(383
)
660
3,368
2,757
Non-GAAP Research and
development
$
6,456
$
5,824
$
31,274
$
26,231
General and administrative
$
9,908
$
13,212
$
52,993
$
43,338
Non-GAAP adjustments:
Stock-based compensation expense
1,517
1,261
5,641
4,215
Litigation and other legal costs
251
250
3,496
1,369
Executive transition costs
599
7
2,632
679
Non-recurring audit fees
931
1,816
5,956
4,001
Enterprise risk, portfolio positioning and
other related costs
—
—
996
—
Non-GAAP General and
administrative
$
6,610
$
9,878
$
34,272
$
33,074
Total Non-GAAP Operating
Expense
$
22,142
$
26,219
$
103,274
$
96,833
MITEK SYSTEMS, INC.
STOCK-BASED COMPENSATION
EXPENSE
(Unaudited)
(amounts in thousands)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
Cost of revenue
$
127
$
152
$
574
$
468
Selling and marketing
462
600
3,041
3,023
Research and development
(383
)
660
3,368
2,757
General and administrative
1,517
1,261
5,641
4,215
Total stock-based compensation
expense
$
1,723
$
2,673
$
12,624
$
10,463
MITEK SYSTEMS, INC.
NON-GAAP OPERATING INCOME
RECONCILIATION
(Unaudited)
(amounts in thousands)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
GAAP operating income (loss)
$
7,715
$
(3,287
)
$
2,231
$
15,564
Non-GAAP adjustments:
Amortization of acquisition-related
intangibles
3,711
3,784
15,156
16,992
Net changes in estimated fair value of
acquisition-related contingent consideration
—
(38
)
136
2,056
Intellectual property litigation and other
legal costs
251
250
3,496
1,369
Executive transition costs
599
7
2,632
679
Stock-based compensation expense
1,723
2,673
12,624
10,463
Non-recurring audit fees
931
1,816
5,956
4,001
Enterprise risk, portfolio positioning and
other related costs
—
—
996
—
Restructuring costs
114
114
1,762
2,114
Non-GAAP operating income
(loss)
$
15,044
$
5,319
$
44,989
$
53,238
Revenue
$
43,222
$
37,656
$
172,083
$
172,552
Non-GAAP Operating Margin
35
%
14
%
26
%
31
%
MITEK SYSTEMS, INC.
GAAP NET INCOME TO ADJUSTED
EBITDA RECONCILIATION
(Unaudited)
(amounts in thousands except
per share data)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
GAAP net income (loss)
$
8,573
$
(1,444
)
$
3,278
$
8,027
Add:
Income tax (benefit) provision
(1,371
)
(2,123
)
(4,187
)
2,314
Other (income) expense, net
(1,851
)
(2,121
)
(6,119
)
(3,840
)
Interest Expense
2,364
2,401
9,259
9,063
GAAP operating income (loss)
$
7,715
$
(3,287
)
$
2,231
$
15,564
Non-GAAP Adjustments
Depreciation and amortization
$
375
$
540
$
1,755
$
1,727
Amortization of intangibles
3,711
3,784
15,156
16,992
Net changes in estimated fair value of
acquisition-related contingent consideration
—
(38
)
136
2,056
Litigation and other legal costs
251
250
3,496
1,369
Executive transition costs
599
7
2,632
679
Stock-based compensation expense
1,723
2,673
12,624
10,463
Non-recurring audit fees
931
1,816
5,956
4,001
Enterprise risk, portfolio positioning and
other related costs
—
—
996
—
Restructuring costs
114
114
1,762
2,114
Adjusted EBITDA
$
15,419
$
5,859
$
46,744
$
54,965
Total revenue
$
43,222
$
37,656
$
172,083
$
172,552
Adjusted EBITDA margin
36
%
16
%
27
%
32
%
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME
RECONCILIATION
(Unaudited)
(amounts in thousands except
per share data)
Three Months Ended September
30,
Twelve Months Ended September
30,
2024
2023
2024
2023
Net income (loss)
$
8,573
$
(1,444
)
$
3,278
$
8,027
Non-GAAP adjustments:
Amortization of acquisition-related
intangibles
3,711
3,784
15,156
16,992
Net changes in estimated fair value of
acquisition-related contingent consideration
—
(38
)
136
2,056
Litigation and other legal costs(1)
251
250
3,496
1,369
Executive transition costs
599
7
2,632
679
Stock-based compensation expense
1,723
2,673
12,624
10,463
Non-recurring audit fees
931
1,816
5,956
4,001
Enterprise risk, portfolio positioning and
other related costs(2)
—
—
996
—
Restructuring costs(3)
114
114
1,762
2,114
Amortization of debt discount and issuance
costs
2,112
1,937
8,169
7,546
Income tax effect of pre-tax
adjustments
(2,696
)
(1,002
)
(11,970
)
(10,115
)
Cash tax difference(4)
211
(1,175
)
3,151
1,235
Non-GAAP net income
$
15,529
$
6,922
$
45,386
$
44,367
Non-GAAP income per share—basic
$
0.34
$
0.15
$
0.97
$
0.97
Non-GAAP income per
share—diluted
$
0.33
$
0.15
$
0.96
$
0.95
Shares used in calculating non-GAAP net
income per share—basic
45,952
45,997
46,560
45,533
Shares used in calculating non-GAAP net
income per share—diluted
46,573
47,050
47,468
46,461
(1)
During the twelve months ended month
periods ended September 30, 2023 and September 30, 2024, our legal
team used third party legal experts to perform and provide advice
regarding a variety of activities including intellectual property
litigation matters and risk analysis and in providing support for
customers in their litigation, matters and options related to
getting our SEC filings current, the process for a potential
delisting from the Nasdaq Capital Market, ongoing litigation
support, and various other projects.
(2)
During the twelve months ended September
30, 2024, we used three third party experts to evaluate our product
portfolio positioning, competitive landscape, enterprise risk and
other related analyses.
(3)
Restructuring costs consist of employee
severance obligations and other related costs. Restructuring costs
were $1.8 million in the twelve months ended September 30, 2024 and
were related to expenses incurred to relocate employees and a
restructuring that occurred in the third quarter of fiscal 2024.
Restructuring costs were $2.1 million in the twelve months ended
September 30, 2023 and were related to a restructuring plan that
was initially implemented in June and November 2022.
(4)
The Company’s non-GAAP net income is
calculated using a cash tax rate of 9% in fiscal 2024 and 23% in
fiscal 2023. The estimated cash tax rate is the estimated annual
tax payable on the Company’s tax returns as a percentage of
estimated annual non-GAAP pre-tax net income. The Company uses an
estimated cash tax rate to adjust for the historical variation in
the effective book tax rate associated with the reversal of
valuation allowances, and the utilization of research and
development tax credits which currently have an overall effect of
reducing taxes payable. The Company believes that the cash tax rate
provides a more transparent view of the Company’s operating
results. The Company’s effective tax rate used for the purposes of
calculating GAAP net income for fiscal 2024 and 2023 was 461% and
22%, respectively.
MITEK SYSTEMS, INC.
NON-GAAP FREE CASH FLOW
RECONCILIATION
(Unaudited)
(amounts in thousands)
Twelve Months Ended September
30,
2024
2023
2022
Net cash provided by (used in)
operating activities
$
31,688
$
31,586
$
21,119
Less:
Purchases of property and equipment,
net
(1,438
)
(1,034
)
(1,126
)
Free Cash Flow
$
30,250
$
30,552
$
19,993
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241216914766/en/
Investor Contact: Todd Kehrli or Jim Byers MKR Investor
Relations, Inc. mitk@mkr-group.com
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