Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity and fraud prevention, has reported its financial results for the first quarter ended December 31, 2023, and provided preliminary results for the second quarter ended March 31, 2024. The company also reiterated its guidance for the fiscal year ending September 30, 2024.
In the fiscal 2024 first quarter, Mitek reported total revenue of $36.9 million, a decrease from $45.7 million in the previous year. The GAAP operating loss was $6.9 million, compared to a GAAP operating income of $8.4 million in the previous year. GAAP net loss was $5.8 million, or negative $0.13 per diluted share, compared to GAAP net income of $4.7 million, or $0.10 per diluted share a year ago.
Non-GAAP operating income was $5.6 million, with a non-GAAP operating margin of 15%, down from non-GAAP operating income of $18.4 million and a non-GAAP operating margin of 40% in the previous year. Non-GAAP net income was $6.3 million, or $0.14 per diluted share, compared to $14.3 million, or $0.31 per diluted share last year.
Cash flow from operations was a negative $9.5 million, driven by $7.8 million in cash taxes paid for FY2023 during the quarter. Total cash and investments were $123.9 million at December 31, 2023, down from $134.9 million on September 30, 2023.
Preliminary results for the fiscal 2024 second quarter indicate that Mitek expects revenue to be in the range of $46 million to $47 million. Mitek reiterated its full-year revenue guidance to be in the range of $180.0 million to $185.0 million, representing a 6% growth rate at the midpoint of the range.
Mitek CEO Max Carnecchia noted that the first quarter's results were impacted by a large one-time multi-year mobile deposit reorder in the previous year, making the year-over-year comparison challenging. He emphasized that the results are not representative of a business trend and reasserted the company's guidance for fiscal 2024. He expects the deposits product revenue to grow 10 to 12% year over year on a normalized basis and the identity product revenue to grow 10 to 12% year over year.
Mitek is anticipating much of this growth to occur in the second half of the fiscal year, with continued growth in fiscal 2025. The company has achieved product-market fit with new products, including check fraud defender, mivip, mipass, and ID R&D biometrics software products, leveraging advanced AI and machine learning to meet evolving customer needs.
The company is reiterating its non-GAAP operating margin guidance for fiscal 2024 to be between 30.0% and 31.0%.
Mitek's management will host a conference call and live webcast to discuss the financial results. The company's website will provide access to the live and archived webcast of the conference call.
Mitek Systems, Inc. remains focused on advancing its identity verification technologies and global platform to make digital access faster and more secure, aiming to provide companies with new levels of control, deployment ease, and operation while protecting the entire customer journey. Following these announcements, the company's shares moved -2.1%, and are now trading at a price of $14.52. Check out the company's full 8-K submission here.
