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Friday, Sep 22, 2023

Amid Buyout Rumors, Mitek Hits Record Revenue Growth

Mitek Systems Inc. reported record revenue growth for the company’s first quarter. The company’s revenue grew from $12.14 million in the first quarter of 2018 to $17.7 million in the most recent quarter, a 46 percent increase year-over-year.

Mitek ended the quarter at a net loss, though its bottom line improved from 2017. The company reported a net loss of $3.2 million in the first quarter of 2019, compared with a net loss of $5.74 million in the first quarter of 2018.

The San Diego-based technology company continued to focus on building out its mobile ID verification systems and boosting sales of its mobile check deposit business into 2019. But it also faced some challenges in bringing in a new CEO while navigating takeover bids and an activist investor.

Since October, Mitek has received buyout attempts from Florida-based ASG Technologies. In late December, the company said it had heard from “a number of interested parties,” and would consider the possibility of a sale, merger or other transaction.

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In an investor conference call, the company’s new CEO, Max Carnecchia, said the noise around a potential buyout “has had no impact on customers whatsoever.”

For the end of fiscal year 2019, Mitek is maintaining its guidance for total revenues of $83 million to $86 million, for an increase of 31 to 35 percent.

“Our quarterly financial results include solid double-digit revenue growth in both of our product families and reflect the continued positive momentum we are generating and the hard work of our entire team,” Carnecchia said in a news release. “We continue to dominate the mobile check deposit market with our industry leading solution. And in ID verification, we believe that our Mobile Verify is providing the onramp to the digital economy. This large market is fast growing, mission critical, and in its early days with only one clear leader – Mitek.”

Mitek’s stock was valued at $11.13 at market open on Jan. 29.

Startups and software reporter Elise Reuter can be reached at ereuter@sdbj.com or at 858-277-6971.


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