Mitek Systems Q2 Revenue Up, Operating Income Down

Mitek Systems, Inc. has reported its financial results for the second quarter ending March 31, 2024. The company's total revenue for the period was $47.0 million, a slight increase from $46.1 million in the same period last year. However, its GAAP operating income saw a significant decrease, standing at $0.7 million with an operating margin of 1%, in contrast to the $8.7 million and 19% margin reported a year ago. GAAP net income also dropped to $0.3 million, or $0.01 per diluted share, compared to $5.2 million, or $0.11 per diluted share in the previous year.

Non-GAAP net income for the quarter was $11.5 million, or $0.24 per diluted share, down from $13.7 million, or $0.30 per diluted share reported last year. Non-GAAP operating income also decreased to $12.8 million with a non-GAAP operating margin of 27%, compared to $17.6 million and 38% margin in the prior year. Despite the decline in these metrics, the company saw an increase in cash flow from operations, which stood at $7.1 million compared to $6.3 million in the same quarter last year.

Mitek's total cash and investments at the end of the quarter were $130.3 million, showing an increase of $6.4 million from the previous quarter. The company's Chairman of the Board, Scott Carter, expressed confidence in the company's ability to profitably grow revenue and announced a $50 million share repurchase program.

Looking ahead, Mitek reiterated its guidance for the full fiscal year ending September 30, 2024. The company expects full-year revenue to be between $180.0 million and $185.0 million, representing a 6% growth rate at the midpoint of the range. Additionally, Mitek anticipates its non-GAAP operating margin for fiscal 2024 to be between 30.0% and 31.0%.

In other news, the company announced the termination of the employment of its CEO, Max Carnecchia, on May 31, 2024, and the appointment of Scott Carter as interim CEO, effective June 1, 2024. The board is conducting a search for a permanent CEO with the support of a leading global executive search firm.

Mitek's management will host a conference call and live webcast to discuss the financial results for the second quarter of fiscal 2024. The market has reacted to these announcements by moving the company's shares 2.7% to a price of $13.73. For the full picture, make sure to review Mitek Systems's 8-K report.

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