MITK - Earnings call transcript Q3 2022

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Operator

Good day, and welcome to Mitek's Third Quarter 2022 Earnings conference call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Todd Kehrli of MKR Investor Relations. Please go ahead.

Todd Kehrli

operator. you, Thank welcome Conference and Third Fiscal Quarter Good to Earnings Call. XXXX afternoon, Mitek's on Mitek's, With and call today's me are Teruel. CFO, CEO, Frank Carnecchia; Max

Any Before quarter This afternoon, and issued a the to call, discussed to not call are want will announcing management of are a today website to financial Mitek today’s certain discuss that I forward. factors its that on the results. release would third I cover the That factors release website. items. I will influence and be likely XXXX that like remind Max Company’s quick few to live call everyone going press comments regarding turn may the forward-looking over fiscal These Frank, Internet is long-term and Relations all expectations This performance. on page our the Forward-Looking market is of the available plans archived prospects statements webcast considered be opportunities at Company’s on Investor the facts, future historical particularly should being Statements. include miteksystems.com. the parties, over about business for Company’s comments and interested broadcast

these encourage to actual our of Forward-looking which of cause uncertainties, a risks. materially. XX-K and results recent all most complete review listeners We of statements to a number risks our our description could SEC differ including are to subject and filings, for XX-Q

and the events, contained or result of no a this are any in herein information, today, undertakes call XX, made Company on new future as statements XXXX, to of of whether Our statements otherwise. update expectations revise as obligation forward-looking the publicly changes or July

the Mitek’s describe the financial Form release. between will earnings the for the CEO, turn be throughout related and periods differences now and and our Today’s the two Additionally, measures. over non-GAAP X-K I between current present call will in reporting release report GAAP that to call, discussing reported certain With reconciliation the said, we non-GAAP on Max. the this

Max Carnecchia

that record Thanks, again, everyone for Congratulations this mission delivered standout of all over commitment quarter for we world. Mitek their ongoing and the joining thanks today. teams for year-over-year. to and afternoon, growth Good to for and us you revenue your important thank XX% Once all the to revenue Todd. our report I'm customers happy work with

Before I the opportunity Frank market to on we significant reviews more are addressing. financials in detail, want our focus

access. cost $XX transact identity than identity consumers scams verification become more billion. As staggering business fraud identity digital affected has companies online In a traditional and consumers essential million to ever, fraud and XXXX, safe XX

of pay for related documents, the to -- and to fees organizations driven for and other under digital being workers notable make While right-to-work adult enables authentication of of large account or also a also to these prove choose, solutions real. is identity rising address Right-to-rent needed cost the to this on The in accessing right-to-rent a importance increased making usage, or the they in consumer With can and identity pressure the dues digital Choice, legally by join known use freedom keep XXXX. fraud immunize and union employers makes meet and and places identity as they authenticated information regulation workplace. cases, it verifying Two gives the fraud to union the their regulation. residents, transaction that is introduced for access verification the prevent marketplace to fact The is unions’, consumers UK are Both identity the of workplaces growing the safe a or global or verified, UK. whether in government verification. labor individual undocumented identity rapidly the by laws before And in is that the tenancy. required optional fraud membership get law service This identity law, right-to-work policy very with another their employees so of Workplace number, require to have union only critical, insights, if technology Mitek's to bigger. these is rented going been representation. determine to It number not by the stay developed Act this was are solutions accessing UK granted is identity challenges all providing billions. the England before fraud is growing the people organizations in activities. Immigration minimize in control restrictions and of growing online in governments in in accommodations to today and

and identity trust HooYu one certification this quarter in services HooYu verification to provide right ID for provider UK This criminal was of rent work, records government mark. to to identity making two providers achieved granted to high-profile just highly digital checks, the services have anticipated right government

In leveraging the addition new of are Mitek's as they scalability -- Mobile digital creative to mobile to these ways new verification their identity and regulatory and attract automation to their our find platforms. use also use cases, of customers consumers Verify diversifying

Mitek's part in solution. proud advertising to a within search was be a There an campaign. being This rapid a twice promotional partner, series overwhelmingly positive onboarding period. of and millions their of identity We're large identities banking verified in this using televised customers sign-ups XX-day which powering countrywide quarter ran of massive response, of one consumer our offers resulted as

demonstrate And Mobile customer of a verification in just new identities features launched large powered game all used revenue. of to first opportunity week. to doing successful solution. with quarter significant and an Verify within transactions solution identity digital so one our the verify feature enabled its one additional in the ability identity an and Additionally, over are the for of was to was an micro a for hugely verification. network interactive within and company resulted users verifications game-changing ongoing the enhancements. support last case requirement million conference, specific Verify expanding generate as business the in-game that action the highlighting unlock in tech example make emerging gaming developer’s age providing identity the This that to or this feature, this its client These remote workflow access to the the global examples few attendees use verification a Mobile

than move transactions solutions more they fully more are our ever need online, As and necessary to be inclusive.

is product be This are inaccurate entire product for control the of customers commitment detection turn Platform, target of the products in quarter Similar machine used providing live detection ID companies facial digital MiVIP. to of and arsenal results lead for all. to evaluation identity customers. R&D, authentication. cause of access Labs consumers' essential launched acquisition most used gender services whose in customer was the by of based subsidiary, their including rate Verified products comprehensive, digital other of face the our quarter of XX over bias. report confirm for performed them algorithm banking this and verification biometric biometric This R&D's learning culmination development and announced an biometric to access Liveness liveness in laboratory. the globally, ever more Solutions inclusive best particular that for exhibits terms Identity attacks, algorithms, of these saving demographic liveness demographic recent digital Pixie fairness identity ID in outcomes reaffirms boosted ever, MiVIP are to Mitek demographic our and make used ID accessible secure to also our first is our AI. commitment support testing Mitek's results Built can bias responsible The increased money. considered accredited digital The spoofing Identity time for to individuals the will matching technologies, of face a liveness control an new a HooYu and groups countries assessment less And in race. this independent of gives age product results of preventing to to can platform Mitek's ongoing ongoing faster ID secure was while a when Mitek's we detection biometrics R&D's bias in for It than be in further and group. inform putting our journey experiences. also over

enable MiVIP MiVIP, an addressable growth. data It's to enabler a a and platform and use larger having the requirements minimize identify business significantly organizations complete customers the technology billions understand your identity allow gives market these without its definitely MiVIP adoption bad theft the core technology the full back. We're about processes verification organization's of friction geographies, of is and our and Mobile point With Verify an element up with step data the problem. everything. course the us change To signals. an customer and in region getting for platform provides segments, them more We comprehensive in expands and customer HooYu with of actors throughout all power of moved manage our identities, to orchestrates and accelerated essential customer customers ease. I it signals that fraud for most we mentioned army MiVIP digital is and them a vertical on digital integral capabilities capabilities beyond long ID mentioned, addressable partners. imperative business their results is digital to clients the to use experience accurate KYC KYC of flexibility R&D to the KYC not as the for flexibility experiences. platform identity set good more signals with earlier, now resulting offers end-to-end complicated. the by But developers. wrong that our recurring at ongoing of quickly that believe just It's cases market, previously vertical dollars provide workflows biometrics Identity manage existing is identity a and digital commerce. safe optimization stack, journey. customer's greater sizes the offer to on offering platform businesses examples soft change offer much them expanded or that of This in of of with also to and The worse more a requirements, an a fight consumer verification needing more improvement of and It's journey, decisioning how journey market and fines. single no-code has or integrated, low-code cases MiVIP know segment and use I consumer orchestration This us most relevant view excited an more meet that identity commerce. we easily being the As for the positions getting because of and market configures for the and means a today. more end-to-end it to to we

at I'm Frank mission is turn forward We the with Our and look in to over call the quarters to digital results transaction. detail. to more going to in trust to provide every With Mitek all our to to sharing progress quarter convenience third financial you the discuss that, come.

Following you. open for questions. Frank's we'll up the to Frank remarks, over call

Frank Teruel

all past costs. to complexity accelerate and my significant remarks, you meant that thank the and in raise significant fraud has from channels billions and Bridging contributions Max the technician digital increasing Thanks operating companies Max's quarter. for of the continue losses costing this fraud your consumers attacks

like for the infrastructure speed Platform urgency expertise organizations that the discussed, of technical especially attacks orchestration Mitek for as these enabled has the torrid As fraud resources, to at MiVIP. respond internal and or difficult pace has solutions Verified been of Identity the such, created our and lack

quarter, the technology launched orchestration the MiVIP. and from our During we HooYu we acquisition integrated fully third

teams We the for also continue U.S. pipeline in sales new a go-to-market to already are and our integrate orchestration our platform here building

in-game the interactive excitingly results for new us and ongoing revenue for results about purchases; quarter of identity also expands a a saw that Max this our our As commerce for Max in journey. Mitek XX% operating and and third generated for is verification digital and the end identity several our such which excited right-to-rent significantly regulatory right-to-work to will as verification for verification all identity step that increase attendee verification addressable To growth. of U.K. quarter we important year-over-year. initiatives; the throughout our stated unpack this use around mentioned, let's gaming digital events accelerate $XX.X the during cases solution MiVIP that requirements view which new we more With million, bolster as end-to-end essential, customer preamble, quarter launch market the identity of detail. our position platform customer's digital are QX revenue an

of Software primarily and $XX.X well R&D is, software very item hardware Check to ID was out revenue ID as growing reorders quarter, contributed up Fraud revenue. growth increase as year-over-year. is hardware due hardware the had overall the I Defender our R&D revenue million, contribution and mentioned to line. deposit software point continued in XX% as The in and strong another that One to mobile

nature revenue SaaS $XX.X that requires our ASC this into transactional revenue, up identity which and services other was we Services it's that because is business, While revenue quarter maintenance XXX the software as in year-over-year. transactional line. of XX% million on-premise offered consulting includes and part for the and put revenue

sequentially the revenue both transactional Our XX% revenue is An HooYu the here $XX.X our as to increased well volumes SaaS important increased SaaS was million. solidly without have to in SaaS highlight year-over-year. Verify as growth SaaS of addition addition this and even transactional increased would year-over-year revenue Mobile SaaS Driving HooYu revenue, of transactional that revenue. note

is R&D from SaaS instead move providing solution, a more continues an As revenue each we and forward, on we identity start move away revenue on-prem and deposits transactional quarterly will to business. picture of to break ID grow out to a holistic which provide basis numbers will

additional revenue XXXX, earlier from global expanded the by Fraud new SaaS nice the revenue as quarter were in for investment is the last quarter to year-over-year was reorders margins driven the Defender year QX this million deposit ID with use were and in R&D delivered margin year. increased mentioned identity of Sales expenses acquisition a compared compared million million year. driven the as marketing XX% of offering. contribution our our to the costs And the $XX.X compared HooYu our and million, and by $X.X million share, our realizing our expenses and the per XX% for $X.X to synergies. gross to we business million and quarter $XX.X were well addition investment contribution the We GAAP $X.X for to of for very accelerate million the Identity $XX.X $X.X R&D ago reflective deposit other services of Check million $X.X total cases XX% product QX the X% of a revenue grow from of the increased net For ago. G&A increase $XX.X margin cost year ago. to expenses due $XX.X revenue of restructuring to to quarter year and million, million software last was with for on the R&D. and costs year-over-year was loss strong diluted our revenue $X.X and a compared expenses, hardware the GAAP ID XX% compared were Gross to including quarter. to $X.XX HooYu. a million, and the strong XX% and business made associated Total acquisition or gross growth associated HooYu QX operating

to Our XX.X year shares share compared million XX.X was million ago. a diluted count shares

and litigation of and these income. company's costs, net expense, of expenses, and GAAP excluding Now, amortization by Non-GAAP issuance a non-GAAP of debt of costs, measure and income the million useful believe impact our was all the operating income or a $X.XX diluted earnings costs acquisition-related reminder results net include $XX.X comp release items. discount year-over-year. as related We expenses, net per stock QX between share, for a X% provides decrease restructuring reconciliation a tax non-GAAP

and in stock and $X million for offset amortization another tax adjustments This pretax acquisition-related by of cash of the of of and was of million litigation the of $X.X included amortization effect costs, costs, $XXX,XXX adjustments quarter. million expense, $X.X comp restructuring million. issuance discount $X expenses non-GAAP debt income million million Our costs, $X.X $X.X tax, all

new identity accelerate sales MiVIP our our from expect revenue us XXXX. in Looking help growth will platform fiscal ahead we

While our our we excited opportunity similar again initiatives, third about deliver about are extremely our revenue to with as in MiVIP we we've as fourth quarter. growth the are the new had quarter as optimistic well the in ability cautiously

transactional identity cases expanded and our such mentioned, consumer use quarter-to-quarter have on is mentioned earlier. the based as we As revenue activity varies

quarter it's could is revenue expanded down at the our it being use up digital year-over-year. identity fourth or possible for be While our solutions, that to see sequentially cases exciting identification despite even

is of on technology our investment the Mitek. business. quickly market revenue bring this our orchestration platform believe to investments addressable We high magnify that the to in expanded the topic we worth believe will an quarter and of as opportunity profitability, possible for given made integrate necessary making as to our go-to-market Now, third the the teams the growth the and and we new platform new

$X.X as of a the gain organization As were as to fiscal continue integration synergies as from second We realignment our we in in to results I charge move quarterly of into XXXX. as reach restructuring our mentioned will business. the of we our the half able of result a our reflect well cost our identity profitability business profitability expenses identity earlier million HooYu towards the believe

to our leader our Mitek's of business. in check our with global and Lastly, BDO. use them identity solution our digital to welcome other quarter and and auditors, ID Welcome course, creates day-by-day and extremely by of our we're the go-forward our line accelerate earlier on for R&D, growth Fraud that the verification and and is come the opportunity growth. secure as look more also onboard MiVIP questions. for have remarks. cases In we open excited BDO, pleased we're launch Operator, results Please access Mitek identity we than very with make pleased to about are prevention month prepared a excited expanded for the We're third this concludes working strengthening forward to work we who new closing, basis. ever. digital it and digital initiatives fraud faster as deposit mobile of solid our the position performance Check Defender, including a

Operator

question-and-answer begin question Jake Roberge ahead. from [Operator the go William Blair. with Our Instructions] session. now will will first Please We come

Jake Roberge

sounds behaviors. a macro was that verification, was actually just Have Thanks to with a you're customer bit for love you impacted actually would environment out could it if wondering everyone knows on Hey pushed you're macro what questions has great It and you on just congrats business little takes, environment? really customers color taking seen seeing puts my like any what's ID a buying strong. the I there. quarter. deposit guys. I and decrease think how macro volumes whether specifically out of get seeing I touch know get I And and or seen But what any the some usage as in business? mobile likely be or the have you but deals there on are result in your

Max Carnecchia

for of there's there. I uncertainty lot the Obviously, question the Thanks Yes. appreciate Jake. a And comments. positive out

You lot wouldn't up, your a we've question stop. so individual far full it lot of an trip direct is, individual not And geographies, consumers just not services with, think across it's the we've can't customers, seen to in interest we end got individual cases a within. nature working impact, environment customers listen illogical SaaS the economic to if that or and of of it. of story new So financial answer in some Related start business, about we the to The not identity thought, read our and increase cadence a fluctuates the radio the kind show individual that also come that use right? prepared but remarks, their that the business, we are transactional use examples as got rates have of FinTech’s. or or of period,

you're may see that up, headwind rates anticipate an to doing number new for I in huge to likely like business, to would of go you're your some but is you're If question be the no. far, that example to not our go would transaction direct And volumes doing But refinancing, answer HELOCs, down. so cases is, use be origination, start a that mortgage originations of if interest part the those loan as doing that.

Jake Roberge

I I but And Yes, just ask. second like show to had would great. a just then, the that's said, numbers And that, question.

customers platform has and remarks in prepared new cases the mentioned opened you use that So MiVIP up with partners. your both

some on of like kind and partner actually HooYu, are status relationships, old partners may you functionality? So, to be you're front, quo, that some those that added competitive now or actually changes any with other orchestration those partners opportunities because expansion seen seeing your have more with of you of the

Max Carnecchia

Yes.

world, they had that partners we've information partners some much felt it view larger providers, opportunity. threatening. very as competitive an in our think as smaller But larger and partners area that have that and I the prospective it service view of

best-in-class choice we like rock-solid that a with the matched got all company offering. offering the of with a just of balance transparency You've an And standing, public sheet, comes partner enterprise great public and being look great a that with company. solution, class with

Jake Roberge

one the Great. the bit but you And more have to profile I any MiVIP? Could customer have adding velocity has customer talk result then well know target of in. up you're seen you with just that as more pipeline how been early, that the platform reception a a filling if sneak functionality? terms little of seen initial you typical I can about increase as in could for your changes it's any what as in

Max Carnecchia

questions. Yes, of a nested that's set

platform, of MiVIP is rebranded, until the offered and as voice identity which a that aren't platform face aren't document our our United and those solution in along for States basically our up Europe delivered best-in-class or with world-class acquisition HooYu and and integrated and Verify. It of biometrics had then it, as the the reminder to Just Mobile the then, been maybe, UK. R&D, from recalling is HooYu, close relabeled here throughout purposes, exclusively who in hosted ID GDPR verification then, for

interested at including engaging going launched of demonstrating it three And say very, sales available starting We've well far and dozen is to as does more cycles. get now to proof doing demonstrations do to and kind to that than States. the to some probably question point, United at we able We've we've what would that the in to the June And of had test that's I And announced serious been prospects. engagements it's this and up be here been that in hypothesis. to now it we MiVIP So, end basically -- is. been direct businesses world's your maybe are it know largest are banks that businesses those customer of concepts. as development requirements the digital-native to just laundering, whether rapidly up us huge lightweight compliance anti-money don't agile, something The born very like These verification. moving your answer right? more have nimble but teams, or allow are do have straight identity age

just encouraged So, North but we're of examples days early traction we've there had similar seen. used we're here -- were but just the initial in quite I we from on and Those engagement America, similar likewise what kind traction. Jake continent in Europe have

Jake Roberge

Thanks taking questions again quarter. my the for congrats and on Great.

Max Carnecchia

Thanks Jake.

Operator

Mike with Securities. Please ahead. Our Northland from will next come Grondahl question go

Mike Grondahl

Hey thank guys, you.

First the on primarily legacy kind HooYu? put just outperformance. of question performance? Where mobile of Was would you revenue Was kind that is more ID? it

Frank Teruel

very quarter. hear to from in Really as it's prepared remarks been interesting Great said I a my Mike Frank. you. it's Hey Yes.

Our product some discussed well. of in Mobile and Verify use a fantastic cases quarter performed Max had volume the

HooYu, of those for kind are a it's opportunities purchasing new developer big the us. of Mobile conference, contribution say would I from So, cases use the in-game all also these both the opportunity combination Verify but

the performance well So, HooYu Mobile as benefit of good as Verify performance. we had pretty the some

Mike Grondahl

quarter a force kind is say sales to it Got related ID legacy that won't I related that, And call maybe re-mention slow a the in-game and it. than three then to HooYu force? seem advertising the and little of to a sales bit event, happens cases customers? those them. until use Mobile off clearly did were that But I thing Meaning, two but historical of And purchase mentioned this different I'll one those than to were again have those want don't conference. this more bank it benefit a gaming maybe event one-off or big an and especially

but opportunity lot shorter big might you or you guys do a this customer event-driven profile say, I'll a think say of So is be transactions? for new I'll going after, term more a that

Frank Teruel

Yes.

I'm So their right, as with a opportunity. dad games is the phenomenal latter great question. and going start to a buys especially market who grand kids this

for I same in-game great new providing new in-app characters to is lives kind of vertical and think new look with that so to forth. it purchases test expand to other great are the companies represents enhancements at case event a And a purchases, us to features that business. available way

great points were able for are technology significant proof that. it think that whether while the not our scale volumes or to is handle to I and did these doing

So think and learning are to one-offs, us ongoing great think, into these I great viewing of into than revenue kind I that rather experience turn as an a there entrees for create markets potentially opportunity.

mentioned HooYu force. relates pipeline it As mentioned the to sales right-to-work we workforces the US we're his both in in seeing those were cases the and teams. cross-pollinating, products. kind and force building UK, what we're UK were Obviously, combination the HooYu right-to-rent comments force in use is the sales But Max as learning our of by Mitek driven as mentioned the the initiatives Max both sales the a also two those that of, are

plus together fostering And interesting. that be good could I think interesting real kind the collaboration. right-of-work think, done of I go-to-market very that job the use new interesting a that teams think opportunities, in and cross-pollination of all these games, events, bringing fruition So, cases have these in are I legs we've for really us new

Mike Grondahl

use dollars? the with drive that, real quarter? to in It four them of big outperformance the enough to some would three cases have or Related been a seems like couple help also

Frank Teruel

doubt. a Without Yes.

Mike Grondahl

ground go MiVIP set your if is that to the on then almost. in pipeline? call Are your the And the Okay. fill we're force can educating slow you it on Are or this understand like it these new will HooYu all they just you you – sales get? and -- is just to are quick -- up. is how still to hard, hey, sort and pipeline I'm running guys of, trying they're or

Frank Teruel

it's Mike. good a question Yes,

we're So still capacities in investing in sales and force cross-pollination.

on some will the ground come. are Some more

necessary think getting right exercise sell to skill an building So and mentioned the to as sets there quarter last it's kinds be we in products. going I both of

we're yet. investing. We're there So not still

to You workforce. the maturity pretty fleshing good the already some out come But still seen and terms know, we've of pipeline is in that coming interesting quarters. more not at growth news in we're

Mike Grondahl

Great.

I'll Defender? sounded Check Lastly, X% were like growth. Deposit had year-over-year Check it say, Those just Fraud Mobile and Check Fraud points Defender

Frank Teruel

very happening Check so on the of check following and of Fraud will light if fraudulent Defender. fraud klieg interesting We dollar had checks fraud a value it's contribution vector really average if from What's put around Mike has you the strong kind the that you're industry.

a at contributor don't was but So it. strong Yes, are was we up, a It a lot break folks without doubt. strong contributor. a it looking of it

Mike Grondahl

Thank it. you. Got

Frank Teruel

Yes.

For sure, Mike. Thanks.

Operator

will come ahead. from go with Buck question next H.C. Scott Wainwright. Our Please

Scott Buck

Good my Hi. A cast we at the MiVIP. bit companies for get What's like? a taking on question follow-up within are Could certain you more bit Thanks certain go-to-market a this point, color you on strategy? question. or a have guys. mean I net Mike's certain on industries, targeting afternoon, industries? little pretty look that of wide

Max Carnecchia

second which if your I big industries, Verify. we're question targeting, we've Thanks Mitek sold part as dissimilar organization what Mitek organization of really regulated MiVIP will question. -- for it, label focused segmenting HooYu, Thanks the put by for And a Identity. Mobile sales is just be who not off the salespeople, the Scott. exclusively first had the the for call. for sales the all far on it with Sure, as, and The to existing is existing to

really orchestration some effective to build MiVIP services, don't get businesses for own to identity This of on X a difference need us. the with us are still financial just those bank regulated utilities, The has good the developer systems to various now very that have to and a integrate quickly fintech, opens armies your need application configure it resources, fast-growing signals. system. be aperture out that's your is allows need the think, I really workflows developers but Tier the that to aiming you to on segments, an own get are answers, and of so to opportunity is and that to constrained that anything quite great go faster-moving, really there little maybe have largest So

some to in Frank's We of end got we're Europe corrections. targeting for right? to It's a Similar the It's selling Frank figure Mike, to those to team little with now June. to and make sweet to continue are process. bit and far. started training the response focus. time guys both those that us the here so organizations. take an It making this to for of North of them it's Thanks that. spots learning, basically thing in our enabling point where a as are early America to iterative build launched. report pipelines, we've on But we where we'll course we're and out the that's still work hard as as our well right was progress making all you days, sure And So the in to making And organization that they're we're indicated, and going right?

Scott Buck

initial is Great. launch That's -- R&D sales run uptick marketing versus in forward helpful. of on in year And tied the how both and and this year-over-year, to the rate that here? the going more MiVIP and of is second, of much costs, sequentially

Max Carnecchia

onetime organization the all HooYu you've We But certainly HooYu now the those remember, got on folks. some in right? with be there's that and associated held Well, launch. to of line will the items ongoing,

Scott Buck

great. the Okay, what HooYu me. Can one revenue for was then, you tell us And legacy quarter? last in

Max Carnecchia

we in breaking we was grow at came continue gave the call, rate -- I sense think their that better. that the in that to day baseline they trailing XX you the not last We're what the or we And together a growth historic nice shared will of out. months. very I

Scott Buck

time, the Thank Appreciate Super. Okay. guys. you.

Max Carnecchia

Scott. Thanks,

Frank Teruel

Scott. Thanks,

Operator

[Operator question from Maxim with go Allen Please, come ahead. next will Instructions] Klee Group. Our

Allen Klee

the you reach expect profitability? afternoon. segment when to you again Good identity Can say just

Frank Teruel

good Allen, you. Hey, hear from to Yes.

for the As remarks, and second past we're fiscal XXXX the prepared in we've identity looking mentioned that today's in corner. the business to turn of for half

Allen Klee

Yes.

up to follow wanted I So that. on

around identity $XX So this million quarter. did

close an So we're $XX million. to rate annual run talking of

it purely a and -- so, may it revenue awarded ago. not or I'm me take same pretty way understand, long a should been the can good not figure help I And so not being profitability year run wanted pretty to million to has why it the And this more is to And good market with have changed business a this maybe just trying for out like lose you Do if to much. to is the you money growth period with understand to just more, technology is use tech of get sure have or why up? going do automate rate. something Because $XX long I'm is I to it and profitability? a scaling not is it really seems such time.

Frank Teruel

come is mean Two vectors solutions. is we kind problem. an they change. arms They Fraud things. Max and providers bad adapt. And his of an remarks identity so Well, each other. adapt. I with race, the mentioned vectors and change. One, This then unsolved guys right? up Threat great By leapfrog in We question. the Allen,

right lot into there's identity And to So that behind consequence. understanding properly a verifying transaction an of who's important really as goes that a that's lot work.

got and of those we've had the to carrying the addition sustaining of some that, efforts acquisitions and In you've you're done things. we've along kinds

but there, difficult itself. very and threat manifest then information, the market market in. well That everything rich is a march the dynamic will driving is profit new right us towards team that getting of vector change and But to complicated operate operate makes certainly in, important that do is right, you it growth And some address market on what right of kind getting problem. think also a it getting identity to data at We profitability. tomorrow very fiscal this takes because recognizing this as we look think running time we're focus laser-focused models, likely we a getting will frame. So as the get And to as XXXX a profitability. right today to management that's getting

Allen Klee

is to of is there would compares turn you to answer talking that the -- how your And competitors? can technology bit the by a it something trying what anything upscale understand technology maybe it I'm you say how with Yeah. to to to volume the that profitable? the you much But do about your business of have issue versus little scale just is

Max Carnecchia

Yeah.

Max. So Allen is this

the a your I this good first, think very question answer is to direct business. is,

on we're getting both The the EBITDA growth portfolio second out you business the that when let's here recall the or is identity, in XX but very entire right nice rule and and is a composite just Mitek zoom of profitability. focused

also around and I technology. important orchestration. We've think the biometric we've obviously think in very end-to-end what are to and technology, come and question done got to your differentiated then HooYu specific most space workflow low-code world-leading the recent we with acquisitions the no-code ID R&D the

sorted to to kind these out. make the may all across is portfolio are some of out. three quarters capabilities all to quarters happen. get to There redundant take need things us that We four need going ironed it of some be that And or

think On highly the very we We other a of it think though, not scalable leverage it's and a that's profitability also from scalable just perspective. this differentiated. is system side that a

Allen Klee

Thank you much. very Okay.

Max Carnecchia

Allen. You bet. Thanks,

Operator

our This to the closing question-and-answer I conclude would remarks. will like turn any session. back over conference for now

Todd Kehrli

to you thank We you everyone today. next Thank and for us joining updating operator again look forward quarter. you

Our concluded. wonderful day. a Have call has

Operator

now conference Thank you has concluded. attending presentation. today's The for

lines. your disconnect now may You

Mitek Systems (MITK) 29 Jul 222022 Q3 Earnings call transcript