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Mitek Systems (MITK - Free Report) reported second-quarter fiscal 2024 earnings of 24 cents per share compared with 30 cents a year ago. The bottom line fell short of the Zacks Consensus Estimate of 27 cents per share.
Revenues increased 2% year over year to $47 million from $46.1 million a year ago. The top-line beat the consensus estimate by 1.03%.
Innovative product mix strategies, along with healthy adoption of its fraud management solutions, are cushioning the top-line performance. Flagship products such as Check Fraud Defender, MiVIP, MiPass and ID R&D biometrics are gaining traction in the market, contributing to revenue growth.
The company also declared a two-year share repurchase program of up to $50 million shares. Shares of the MITK have gained 46.3% in the past year at par with the industry’s rise of 46.3%.
Mitek Systems, Inc. Price, Consensus and EPS Surprise
Software & Hardware revenues (53% of total revenues) declined 1.5% year over year to $24.9 million. Despite solid momentum in new identity products (MiVIP, MiPass and ID R&D biometrics), softness in heritage identity products’ revenues which include Mobile Verify, led to the downfall in this particular segment.
Services and other revenues (47%) climbed to $22 million from $20.9 million in the year-earlier quarter.
Gross margin for the fiscal second quarter was 87%, almost on par with the prior-year quarter level. Solid software and hardware gross margins of 100% and a margin of 72% from services and other revenue were registered.
Operating Details
Operating expenses for the reported quarter were $46.3 million compared with $37.4 million a year ago. Non-GAAP operating expenses were $27.9 million compared with $22.7 million a year ago. The uptick was due to the imposition of fees on delayed filings.
Non-GAAP operating income came in at $12.8 million compared with $17.6 million in the year-ago quarter. Non-GAAP operating margin was 27%, down from 38%.
Balance Sheet and Cash Flow
As of Mar 31, 2024, MITK had cash and cash equivalents and investments of $130.3 million compared with $123.9 million as of Dec 31, 2023.
During the quarter, cash flow from operations was $7.1 million compared with $6.3 million in the prior-year quarter.
Outlook
For fiscal 2024, the company projects revenues in the range of $180-$185 million.
Full-year fiscal 2024 non-GAAP operating margin is expected in the range of 30% to 31%.
BlackBerry’s (BB - Free Report) fourth-quarter fiscal 2024 adjusted earnings of 3 cents per share beat the Zacks Consensus Estimate by 200%. The bottom line improved from the prior-year quarter’s non-GAAP loss of 2 cents per share.
BB has lost 37.7% in the past year against the sub-industry’s growth of 31.6%. In the last quarter, it delivered an earnings surprise of 200%.
Blackbaud (BLKB - Free Report) reported first-quarter 2024 non-GAAP earnings per share of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.
Shares of BLKB have gained 9.2% compared with the sub-industry’s growth of 31.6% in the past year. In the last quarter, it delivered an earnings surprise of 9.4%.
Cadence Design Systems (CDNS - Free Report) reported first-quarter 2024 non-GAAP earnings per share of $1.17, which beat the Zacks Consensus Estimate by 3.5%. However, it decreased 9.3% year over year.
In the past year, CDNS has gained 39.9% compared with the Zacks sub-industry’s growth of 31.6%. It currently has a long-term growth expectation of 17.8%.
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Mitek Systems' (MITK) Q2 Earnings Decline, Revenues Rise Y/Y
Mitek Systems (MITK - Free Report) reported second-quarter fiscal 2024 earnings of 24 cents per share compared with 30 cents a year ago. The bottom line fell short of the Zacks Consensus Estimate of 27 cents per share.
Revenues increased 2% year over year to $47 million from $46.1 million a year ago. The top-line beat the consensus estimate by 1.03%.
Innovative product mix strategies, along with healthy adoption of its fraud management solutions, are cushioning the top-line performance. Flagship products such as Check Fraud Defender, MiVIP, MiPass and ID R&D biometrics are gaining traction in the market, contributing to revenue growth.
The company also declared a two-year share repurchase program of up to $50 million shares. Shares of the MITK have gained 46.3% in the past year at par with the industry’s rise of 46.3%.
Mitek Systems, Inc. Price, Consensus and EPS Surprise
Mitek Systems, Inc. price-consensus-eps-surprise-chart | Mitek Systems, Inc. Quote
Quarterly Details
Software & Hardware revenues (53% of total revenues) declined 1.5% year over year to $24.9 million. Despite solid momentum in new identity products (MiVIP, MiPass and ID R&D biometrics), softness in heritage identity products’ revenues which include Mobile Verify, led to the downfall in this particular segment.
Services and other revenues (47%) climbed to $22 million from $20.9 million in the year-earlier quarter.
Gross margin for the fiscal second quarter was 87%, almost on par with the prior-year quarter level. Solid software and hardware gross margins of 100% and a margin of 72% from services and other revenue were registered.
Operating Details
Operating expenses for the reported quarter were $46.3 million compared with $37.4 million a year ago. Non-GAAP operating expenses were $27.9 million compared with $22.7 million a year ago. The uptick was due to the imposition of fees on delayed filings.
Non-GAAP operating income came in at $12.8 million compared with $17.6 million in the year-ago quarter. Non-GAAP operating margin was 27%, down from 38%.
Balance Sheet and Cash Flow
As of Mar 31, 2024, MITK had cash and cash equivalents and investments of $130.3 million compared with $123.9 million as of Dec 31, 2023.
During the quarter, cash flow from operations was $7.1 million compared with $6.3 million in the prior-year quarter.
Outlook
For fiscal 2024, the company projects revenues in the range of $180-$185 million.
Full-year fiscal 2024 non-GAAP operating margin is expected in the range of 30% to 31%.
Zacks Rank
MITK carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
BlackBerry’s (BB - Free Report) fourth-quarter fiscal 2024 adjusted earnings of 3 cents per share beat the Zacks Consensus Estimate by 200%. The bottom line improved from the prior-year quarter’s non-GAAP loss of 2 cents per share.
BB has lost 37.7% in the past year against the sub-industry’s growth of 31.6%. In the last quarter, it delivered an earnings surprise of 200%.
Blackbaud (BLKB - Free Report) reported first-quarter 2024 non-GAAP earnings per share of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.
Shares of BLKB have gained 9.2% compared with the sub-industry’s growth of 31.6% in the past year. In the last quarter, it delivered an earnings surprise of 9.4%.
Cadence Design Systems (CDNS - Free Report) reported first-quarter 2024 non-GAAP earnings per share of $1.17, which beat the Zacks Consensus Estimate by 3.5%. However, it decreased 9.3% year over year.
In the past year, CDNS has gained 39.9% compared with the Zacks sub-industry’s growth of 31.6%. It currently has a long-term growth expectation of 17.8%.