0000807863FALSE00008078632024-12-162024-12-16

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 16, 2024
 
MITEK SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware001-3523187-0418827
(State or other jurisdiction
of incorporation)		(Commission File Number)(IRS Employer
Identification No.)
   
770 First Avenue, Suite 425
San Diego,California 92101
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (619) 269-6800
Not Applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareMITKNasdaq Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐


Item 2.02 Results of Operations and Financial Condition.
On December 16, 2024, Mitek Systems, Inc. (the “Company”, “we”, “us” and “our”) issued a press release announcing the Company’s financial results for the fourth fiscal quarter and fiscal year ended September 30, 2024. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Items
The Company expects to hold its 2025 annual meeting of stockholders (the “Annual Meeting”) on March 4, 2025. All other relevant information concerning the Annual Meeting will be included in the proxy statement relating to the Annual Meeting (the “Proxy Statement”), which will be filed with the SEC and become available to the Company’s stockholders at a later date.
Due to the fact that the date for the Annual Meeting has changed by more than 30 days from the anniversary date of the 2024 Annual Meeting of Stockholders, the Company is providing the due date for submission of any qualified stockholder proposal or qualified stockholder nominations.
Stockholders who intend to have a proposal considered for inclusion in the Proxy Statement pursuant to Rule 14a-8 of the Exchange Act must submit the proposal in writing to the Company’s corporate secretary no later than a reasonable time before the Company begins to print and send its proxy materials to stockholders. The Company will consider any proposal received on or before December 27, 2024, to have been received a reasonable time before it expects to begin to print and send its proxy materials.
Stockholders who wish to bring a director nomination or stockholder proposal (other than by means of inclusion of a stockholder proposal in the proxy materials under Rule 14a-8 of the Exchange Act) before the Annual Meeting, must deliver notice thereof in proper written form to the Company’s corporate secretary in accordance with the Company’s Third Amended and Restated Bylaws (the “Bylaws”) no later than December 27, 2024, which is the eleventh day following the date on which public disclosure of the date of the Annual Meeting was made (an additional day was included to account for the Christmas holiday).
In addition to satisfying the foregoing requirements under our Bylaws, to comply with the universal proxy rules, stockholders who intend to solicit proxies in support of director nominees, other than the Company’s nominees, must provide notice setting forth the information required by Rule 14a-19(b) of the Exchange Act no later than December 27, 2024, which is in accordance with the advance notice provisions in our Bylaws.
In addition to foregoing timing requirements, the advance notice provisions of our Bylaws contain informational content requirements that also must be met when providing notice to the Company of matters to be brought before the Annual Meeting.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number Description
99.1 
104
Cover Page Interactive Data File, formatting Inline Extensible Business Reporting Language (iXBRL)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  Mitek Systems, Inc.
    
December 16, 2024 By:/s/ Dave Lyle
   Dave Lyle
   Chief Financial Officer



Mitek Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
and Provides Guidance for Fiscal 2025

SAN DIEGO, CA, December 16, 2024 - 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.

Investor Contact:
Todd Kehrli or Jim Byers
MKR Investor Relations, Inc.
mitk@mkr-group.com

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,
2024202320242023
Revenue
Software and hardware$18,341 $15,291 $81,872 $88,374 
Services and other24,881 22,365 90,211 84,178 
Total revenue43,222 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 marketing9,538 11,117 40,769 40,551 
Research and development6,073 6,484 34,642 28,988 
General and administrative9,908 13,212 52,993 43,338 
Amortization and acquisition-related costs3,710 3,744 15,291 19,046 
Restructuring costs114 114 1,762 2,114 
Total operating costs and expenses35,507 40,943 169,852 156,988 
Operating income (loss)7,715 (3,287)2,231 15,564 
Interest expense2,364 2,401 9,259 9,063 
Other income (expense), net1,851 2,121 6,119 3,840 
Income (loss) before income taxes7,202 (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—basic45,952 45,997 46,560 45,533 
Shares used in calculating net income (loss) per share—diluted46,573 47,050 47,468 46,461 









MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands except share data)
September 30, 2024September 30, 2023
ASSETS
Current assets:
Cash and cash equivalents$93,456 $58,913 
Short-term investments36,884 74,700 
Accounts receivable, net31,682 32,132 
Contract assets, current portion15,818 18,355 
Prepaid expenses4,514 3,513 
Other current assets2,697 2,396 
Total current assets185,051 190,009 
Long-term investments11,410 1,304 
Property and equipment, net2,564 2,829 
Right-of-use assets4,662 4,140 
Goodwill and intangible assets185,711 188,222 
Deferred income tax assets19,145 11,645 
Contract assets, non-current portion3,620 5,579 
Other non-current assets1,590 1,647 
Total assets$413,753 $405,375 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$7,236 $7,589 
Accrued payroll and related taxes10,324 10,554 
Accrued liabilities424 26 
Accrued interest payable205 305 
Income tax payables162 4,329 
Deferred revenue, current portion21,231 17,360 
Lease liabilities, current portion805 1,902 
Acquisition-related contingent consideration— 7,976 
Other current liabilities1,760 1,456 
Total current liabilities42,147 51,497 
Convertible senior notes143,601 135,516 
Deferred revenue, non-current portion753 957 
Lease liabilities, non-current portion4,230 2,867 
Deferred income tax liabilities3,889 6,476 
Other non-current liabilities4,332 2,874 
Total liabilities198,952 200,187 
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, respectively45 46 
Additional paid-in capital247,326 228,691 
Accumulated other comprehensive loss(2,302)(14,237)
Accumulated deficit(30,268)(9,312)
Total stockholders’ equity214,801 205,188 
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,
2024202320242023
Deposits
Deposits software and hardware
Software$15,773 $13,243 $74,108 $78,212 
Hardware— — — — 
Total deposits software and hardware15,773 13,243 74,108 78,212 
Deposits services
SaaS1,799 1,281 6,406 4,299 
Maintenance5,846 5,511 22,275 20,710 
Professional services / other266 264 769 913 
Total deposits services7,911 7,056 29,450 25,922 
Total deposits revenue23,684 20,299 103,558 104,134 
Identity
Identity software and hardware
Software2,568 1,801 7,631 8,796 
Hardware— 247 133 1,366 
Total identity software and hardware2,568 2,048 7,764 10,162 
Identity services
SaaS16,188 14,178 57,182 55,149 
Maintenance463 723 2,074 1,910 
Professional services / other319 408 1,505 1,197 
Total identity services16,970 15,309 60,761 58,256 
Total identity revenue19,538 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,
2024202320242023
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,
2024202320242023
Selling and marketing$9,538 $11,117 $40,769 $40,551 
Non-GAAP adjustments:
Stock-based compensation expense462 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 expense1,517 1,261 5,641 4,215 
Litigation and other legal costs251 250 3,496 1,369 
Executive transition costs599 7 2,632 679 
Non-recurring audit fees931 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,
2024202320242023
Cost of revenue$127$152$574$468
Selling and marketing4626003,0413,023
Research and development(383)6603,3682,757
General and administrative1,5171,2615,6414,215
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,
2024202320242023
GAAP operating income (loss)$7,715 $(3,287)$2,231 $15,564 
Non-GAAP adjustments:
Amortization of acquisition-related intangibles3,711 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 costs251 250 3,496 1,369 
Executive transition costs599 7 2,632 679 
Stock-based compensation expense1,723 2,673 12,624 10,463 
Non-recurring audit fees931 1,816 5,956 4,001 
Enterprise risk, portfolio positioning and other related costs— — 996 — 
Restructuring costs114 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 Margin35 %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,
2024202320242023
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 costs251 250 3,496 1,369 
Executive transition costs599 7 2,632 679 
Stock-based compensation expense1,723 2,673 12,624 10,463 
Non-recurring audit fees931 1,816 5,956 4,001 
Enterprise risk, portfolio positioning and other related costs— — 996 — 
Restructuring costs114 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,
2024202320242023
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 costs599 7 2,632 679 
Stock-based compensation expense1,723 2,673 12,624 10,463 
Non-recurring audit fees931 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 costs2,112 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—basic45,952 45,997 46,560 45,533 
Shares used in calculating non-GAAP net income per share—diluted46,573 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,
202420232022
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 






v3.24.4
Cover
Dec. 16, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Dec. 16, 2024
Registrant Name MITEK SYSTEMS, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35231
Entity Tax Identification Number 87-0418827
Entity Address, Address Line One 770 First Avenue, Suite 425
Entity Address, Postal Zip Code 92101
Entity Address, State or Province CA
Entity Address, City or Town San Diego,
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol MITK
City Area Code 619
Local Phone Number 269-6800
Entity Emerging Growth Company false
Central Index Key 0000807863
Amendment Flag false
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