Mitek Systems, Inc. MITK reported non-GAAP earnings of 33 cents per share for fourth-quarter fiscal 2024 (ended Sept. 30, 2024) compared with 15 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 17 cents.

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Revenues increased 15% year over year to $43.2 million from $37.7 million a year ago. The top line beat the consensus estimate by approximately 5%.

Strong adoption of fraud management solutions and innovative product strategies are driving revenue growth, with flagship products like Check Fraud Defender, MiVIP, MiPass and ID R&D biometrics gaining market traction.

Mitek Systems, Inc. Price, Consensus and EPS Surprise

Mitek Systems, Inc. price-consensus-eps-surprise-chart | Mitek Systems, Inc. Quote

Moreover, the company is integrating past acquisitions, aligning teams and enhancing products to drive cross-selling and upselling opportunities. This initiative aims to boost revenue and reduce costs by streamlining redundancies.

Following the results, shares are up 17% in the pre-market trading session today. In the past three months, both the company's shares and the industry have soared 11%.

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Quarterly Details

Software & Hardware revenues (42% of total revenues) increased around 20% year over year to $18.3 million.

Services and other revenues (58%) climbed to $24.8 million from $22.4 million in the year-earlier quarter.

Non-GAAP gross margin for the fiscal fourth quarter was 86% compared to 87.3% in the prior-year quarter. Solid software and hardware gross margins of 99% and a margin of 76.5% from services and other revenue were recorded.

Operating Details

Non-GAAP operating expenses were $22.1 million compared with $26.2 million a year ago. This was driven by a decrease in bonus and vacation accruals, reduced outside accounting support and lower marketing and travel expenses.

Non-GAAP operating income came in at $15 million compared with $5.4 million in the year-ago quarter. Non-GAAP operating margin was 35% compared with 14% a year ago.

Balance Sheet and Cash Flow

As of Sept. 30, 2024, MITK had cash and cash equivalents and investments of $141.8 million, marking a $6.8 million increase year over year.

During the quarter, the company generated a free cash flow of $30.3 million and repurchased 2.2 million shares for $24.2 million under the share repurchase program.

Outlook

For fiscal 2025, the company projects revenues in the range of $170-$180 million.
Full-year fiscal 2025 adjusted EBITDA margin is expected in the range of 24% to 28%.

Zacks Rank

MITK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Pure Storage’s PSTG third-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 50 cents, which beat the Zacks Consensus Estimate by 16.3%. The company reported non-GAAP EPS of 50 cents in the prior-year quarter.

PSTG has increased 35.2% in the past three months against the industry’s growth of 2.2%. In the last quarter, it delivered an earnings surprise of 16.28%.

Ciena Corporation CIEN reported fourth-quarter fiscal 2024 results, wherein adjusted EPS of 54 cents missed the Zacks Consensus Estimate of 66 cents. Also, the bottom line declined 28% year over year.

Shares of CIEN have jumped 61.6% compared with the industry’s growth of 58.5% in the past year.  It currently has a long-term growth expectation of 6.8%.

NetApp, Inc. NTAP reported second-quarter fiscal 2025 non-GAAP earnings of $1.87 per share, which beat the Zacks Consensus Estimate by 4.5% and jumped 18.4% year over year. The bottom line also surpassed the company’s guided range of $1.73-$1.83.

Shares of NTAP gained 5.7% in the past three months. It currently has a long-term growth expectation of 7.2%.

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