MITK - Earnings call transcript Q1 2025

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Operator

Good afternoon, and welcome to Mitek's Fiscal 2025 First Quarter Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Todd Kehrli of PondelWilkinson. Please go ahead.

Todd Kehrli

Thank you, operator. Good afternoon, and welcome to Mitek's Fiscal 2025 First Quarter Earnings Conference Call. call CEO, today's CFO, West; on Lyle. Dave me are Ed Mitek's and With

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

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 February

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

Edward West

and Todd, good Thanks, afternoon, everyone.

the authentication, institutions, and worldwide, are software and solve, AI, overview cyberattacks fintechs, For why We start over in a increasingly mission-critical let empower vision, and environment. identity by is a deepfakes, to our who problems advanced X,XXX important Systems Mitek we to new automation Mitek, threats fraud, becoming delivered me verification, organizations prevention, with as biometrics, including fraud like trusted leader computer are, proprietary technologies, all digital and telecoms, in biometric businesses more are market today's and combat quick growing financial those, we who of AI-driven using global solutions solutions. marketplaces.

agreements industry-leading has addressable check approximately revolutionized computer a assurance verification, mobile has deposit services. This solution, deep transactions Our enabled identity by vision become innovative annually. in total expand to market us positioned processing for billion solutions. and threats authentication our advanced fraud fraud check-related designed through technology. We biometrics, as term tools sophisticated standalone well our using are orchestration, Fraud and Defender heritage These industry-leading generate and Fraud SaaS license tackle identity to offerings Check serving North of like It with American agreements Digital prevention and industries financial element such as has end-to-end for platform, consumer fraud expertise solutions in Defender. revenue platform our foundational an with technology, as products high $X.X along banking, MiVIP,

revenue and 'XX position operational in enhancing profitable our excellence, growth fiscal fiscal in beyond. and solutions, our to is durable, us for on a focus Our strengthening 'XX foundation

uniquely threats, we the essential of are sophisticated solutions deposits positioned As the secure demand in innovation digital check intensifies and remain help transactions. lead to of AI-driven for online the fraud face future and

as in platform fiscal updates scaling driving it Today, platform are framework generation, fourth, business pillars, of revenue provide on one, the and drive operational expanding fraud solutions, a our excellence third, to on X-pronged a shareholder two, last across and some durable, guide cornerstone value. our maintaining progress flow Now, foundation leadership which 'XX, free the strengthening profitable identity the and provide transformation. to cash I'll our point fulcrum quarter, growth the towards we profitability, our to introduced X organic for growth,

Now, fiscal beyond. I'd let's progress on meaningful of walk pillars highlight these QX, made the few of durable, foundation strengthening end growth on each our through for a first of our early key In like is achievements. we last QX to pillar which 'XX made since fiscal and year. profitable strategy, we've in progress the and the

for know and First, effort we're and proof silos fostering sounds greater already business I cross-functional is expanded fundamental, by execution new down new QX. breaking this bearing pretty by enhancing it across collaboration in business. teams closing our go-to-market but

contract meaningful cases. product credibility these with as financial developments points additional institutions use as and of a currently are new and early as Mitek's underway have also validation a leverage We negotiations identity These efforts. well extensive that for fraud growing request result relationships with

better realigned team our growth to have we R&D support resources and our structures Second, objectives.

advancing I deeper get collaboration. are particularly and framework, initiatives learning our and ethos introducing driving accelerating to We machine centralizing cross-team learning These effectiveness Mitek fostering the customer the within are already will and and one greater engineering a identity portfolio, closer quantify machine resources, innovation, a by later. product-driven which AI engineers

and rapidly as By enhancing we catalyst a key to in verification, I or fiscal prevention walls customer coming MiVIP. after from while identity are call. our 'XX. is remained as benefits we IDV see integration cultural competitive within our position. In on engines the capabilities, P&L fraud expect in the our unified acquisitions this business on initiative technological integrating that The single the efforts highlighted our our experience consolidating our short, and platform measurable prior down, simplifying our multiple and operational integration, IDV Our for serve are into

million our $XX.X XX milestone. second towards the million the fulcrum our quarter, to to was first towards $XX end this revenue in $XX.X $XX of up demonstrating critical from million, end months 'XX, turning Now, the At at our progress million point the pillar, identity. progress of last Identity fiscal

improvements per it's margins a also It's important sales is greater that identity the transaction to downward carry point economics transactions, mix important that algorithm closely a our unit that target. The Any bottom and fulcrum carry factors in threshold standalone to the note to economics create efficacy. Together, profit are to SaaS more unit coupled recognize reflect as improvements higher higher verification cost platform's of timing per basis. point mix to drivers value. One, And can contribution document movement are revenue our an transaction and MiVIP of follows. this quarter-to-quarter two, the compared transaction which and solutions dynamic. intrinsic of through volumes effectively X required upward attractive the growing software tipping heritage key towards line. contribution and drive way in which and Now, key identity ongoing automated lower growth identity our license transactions, along a monitoring reach we're us in our the contribute with driving that on these a a lower transaction increased

migrating through first MiVIP, the and was the XX% expansion growth in growth XX% of in primarily running increased improve our MiVIP as a platform, driven solutions drivers, transaction a but customers board, identity these higher our across through quarter, expect are transactions an platform, these notably in most revenue mix On minority year-over-year to execution point value X with we go-to-market with customers. Currently, existing observed from over volume our we our and the transaction with our of accelerating volume of driven standalone identity begin transactions. by MiVIP SaaS

towards automated as transaction our year-over-year continue percentage both transactions we a reduction cost The year-over-year. a will other year-over-year in enhanced versus in revenue, double-digit and second margin which our improve per direct Dave later. had improvement drove productivity discuss little year, more driver, increase margin and This our gross MiVIP sequentially to services in points higher agent automation the last algorithms detail basis shift XXX and in

growth results yielding customers, are recently industries. geographies our demonstrated acquired efforts use as new new of acquiring transaction optimization and and go-to-market across our existing with by into cases customers, expansion customers the Finally,

customer with cohorts, by us, expanded volumes are customers almost Looking identity-related transaction X driven 'XX spending in higher ago use acquired XX% at just now more QX our of cases. year and

increasing XXXX significantly to the reflects go-to-market of initially spending QX than a commercial and underscoring solution digital identity who among XX can scope high-assurance fraud across time, us win KYC, an are more enhancements. partnered at and provide with customers critical X prevention customers provide enable increased investment. Today, levels. years mobile of geographies expansions to products by top same looking identity And Mitek expand safely Our to since largest highlights verification as end-to-end have to rely this which their in new businesses. for range X it XX% expanding they commercial value higher cohort, the our scale relationships. Notably, verification dispute they these retail identity channels. Examples customer success prevention. Overall, of our empowering and increased best-in-class the financial our ago, and compared mortgages, leading spending a wide is the XX These deepening password the of solutions their with strategic openings, document who with in this claims, enterprise have solutions now this partner, today, number their but customers initial institutions been of resets, for adoption authentication, top fraud and spending business world's industries online account onboarding, on are their digital telephony experience Mitek was we our Xx have years, than of include workloads. early our verification, our some fraud At and offer ability

customers compelling reach Let's on the contract continuing harnessing 'XX, a dive which value, momentum growing or highlighted Defender, QX, drives our the for network, this growth fraud both of million Check strategy expanding data Fraud fiscal as results into with our power CFD's prior ACV, of approaching third $XX call, By with end CFD. or experienced QX our our considerable of in ACV consortium and in of now 'XX. at this and with Mitek. our impact the pillar, is solutions on spotlight annual

now checking data have expanding sets seen in country, accounts in quarter, all from checks of we nearly from reflecting on have and we mentioned, country, up last FIs footprint. the XX% all As XX% our now approximately the accumulated

penetration U.S. financial institutions, growth signaling successfully customers paying X% QX, of below substantial in the we opportunity. While remains more untapped onboarded

for multi-decade the or with reinforced addressing Our our fraud imaging and clients. competitive by expertise combined confidence a with track checked preference is check computer data through clear indicating of execution consortium customer fraud in our remains banking record This our vision shared model. credibility opportunity in supported learning advantage strong, lies in these and machine Mitek's and this feedback by scoring.

ACV to Now 'XX in pipeline by an driven exit, looking 'XX of fiscal goal fiscal remains ahead, double our our exciting CFD's from opportunities.

While in the towards this we pacing quarterly the momentum expect remains goal, variability clear.

XX top plan and go strengthens insights incremental CFD in the another signed data institution FI participants. the value Just with increasing we next last for quarter. Each week, network, all live the early a of

fraud is threats. to landscape tackle most from and Fraud, Mitek continues stay deliver payment of to and Digital As solutions emerging uniquely positioned industry-leading pressing the evolve, ahead them fraud our challenges, helping to customers' Identity

pillar, excellence, shareholder fourth strong which our free by cornerstone This SaaS and durable efficiency, strategy. our to operational maximize organic cost Finally, cash is supported is the value. remains expansion, of growth, conversion flow

XX While up over and up XX% reached $XX.X SaaS XX% clouded a overall SaaS revenue SaaS XX% for with grew revenue, the the of deposit last XX revenue driven representing revenue revenue sequential by reorders, growth last increase, months during MiVIP, total of year-on-year the timing million, year-over-year identity first XX% by a was notable mobile our quarter, SaaS improvement. respectively. Total and now months XX%, revenue CFD deposit

quarter, mentioned total 'XX, out our looking for to a SaaS goal of pursuing As to fiscal revenue half revenue. approach we're last

the non-referring XX%, adjusted front, cash our reductions discipline EBITDA positive commitment by improved profitability costs. the which benefited networking in during quarter, adjustments, reflecting cost these conversion and increased operational Last to year-on-year first flow XX-month by is the of On to non-GAAP changes driven in efficiency. management XX% and in our capital free quarter discipline

'XX profitable turn call durable, the year, QX, me comments the to over but are the the So in Dave in in company's beyond. With fiscal by in progress let few that, and positioning still on Mitek it's now encouraged for growth a early for financials. we summary,

David Lyle

for we're into additional results year. the performance. Thanks, the Ed. drivers behind our how the share there, I'll our quarter, I'll through some highlighting start by walking balance approaching insights you of From the

QX fiscal 'XX our First, results.

the total revenue was slightly year's $XX.X on Our our of with million, last ahead QX for remarks fiscal earnings call. consistent revenue at phasing last

X% expected, deposit timing, was products mobile impacted deposit As revenue by deal year-over-year. declining

revenue and acceleration Our growth from in quarter. identity accelerating by XX% underscored sequential the products fourth revenue year-over-year, by transaction increased volumes a

the at was benefits XX% portfolio EBITDA for on due on expectations in million, profit representing within and controls. $XX.X moment. our non-GAAP quarter of Our Both margin. company-wide to margin, and million, our $X.X XX% in non-GAAP efficiencies More gross adjusted exceeded a gross this our product representing an came cost an cost focus a identity the

Turning to This air mobile timing revenue. our XX% license as deposit software the call. prior highlighted -- our deposit now anticipated a decline decline in in renewals pockets reflects and

uninterrupted channel year's to support like insight into additional worth term of encourage Customers nature license of mobile to revenue disruptions. X health investors transaction was in LTM to solutions. revenue provide and revenue 'XX we would look typically or therefore, and, longer-term renewal of at inventory the the in ensure deposit nature that the advance the would more and Given million. I'd $XXX.X assess of QX deposit lumpiness, this timing stream highlight for fiscal avoid trends to partners purchase

While can occasionally tandem, move purchase diverge. timing and they in usage generally

recognition transactions used. factors, than dynamic purchased rate our transactions phasing. variability our front consumed. the number time transaction creates of rather by the of Renewal when actually up purchase revenue years influenced in are the are at and which at revenue of occurs X Importantly, key inventory timing This is the

last revenue, quarter we which X% steady customers stable of accelerating billion are grew SaaS nature a good contributes anticipate into annual our said, which run visibility the can revenue, purchasing patterns intermittent when volumes, product's led growth, continue growth revenue more their to maintenance posted rate included an have quarter this in consumption the health, transactions. phasing. That transactional rate deposit over behavior of inventory, the need of from X.X deposit maintain of their fiscal year-over-year and by CFD, and XX% Deposit highlights replenish to to While year-over-year, revenue year. indicator XX% reliably uneven approximately fourth the will

for resulted Identity. year-over-year growth Revenue from transaction MiVIP in see Verify quarters million, This identity impactful due and SaaS Mobile allowed year-over-year Verify less a $XX growth both shine in which X turning we by primarily to from XX% identity a continue pressures through growth revenue. grew year-over-year see Now, in its quarter revenue. All to revenue pricing all, growth to in row to trajectory. to XX% products were driven growth increase to this for Verify, Mobile pleased MiVIP the accelerating transaction Mobile to and

growth total year-over-year increase services total reflected revenue the in helping the and by this revenue, in services solution which our offset X% together, XX% timing revenue tie streams year-over-year, revenue deposit driving our sales. SaaS in to the software all counterbalance sales nearly to mobile Now our decline and a in were increased software as of year-over-year revenue, decline hardware XX% in point and grew renewals. software fluctuations hardware software biometrics XX%

on on was a services highest revenue, our an and an of We P&L. in points maintained unit gross X XX% improvement margin XX% Moving license economics, down years. over margin basis XXX non-GAAP other gross quarterly achieving more gross year-over-year services margins quarter. in the the margin This strong gross our notably, and nearly XX% our by driven revenue software and

million to hiring in and million earnings discretionary the to $XX.X accrual spending of quarter As annual expense our results We fourth benefits highlighted, improve below $X.X operational in fiscal operating million we which December, Ed of million Ed bridge sequential cultural cash operating ended identity certain plan of $X within normalized and with QX. return efficiencies a our enforcing automation, as level, in operating expense controls go-forward near-term increase reflect financial communicated our million, in $X.X expected expense non-GAAP discretionary these the primarily particularly quarter $X in a new our GAAP after reset, our our to of for adjustments $XX occurred we $XX first increase spending other during and expenses cost the release. $XX spending from early totaled due million million million operating the adjustments million primarily management detailed the and fiscal CEO. The sequential which delaying drive up $XX.X was our approximately in between accounting levels some cost integration, quarter. finalized as efforts portfolio. Non-GAAP while due The consists non-cash to increase $XX.X bonus on million and

After executive XX% restructuring year-over-year. Elevated nonrecurring such conversion $X.X audit cultural particularly this non-cash and our flow on representing attributable up both all revenue that of adjusted earlier interest point management onetime as $X.X quarter during this basis of the margin. to and million sequentially on or in a equates income, XXXX quarter or has $X.X million reflects This legal non-GAAP improvement net adjustments, share fees, have December, QX this are costs diluted year-over-year, quarter. expenses Focusing occurred, and by amount decreased outstanding. based EBITDA million, XX% costs of million adjusted XX.X shares XXX per operational XX% of $X.XX free million integration in cash factoring this to X% diluted all which revenue or this for in reached transitions, income the declined Ed. Tying disciplined from discussed of first initiatives to EBITDA $X.X as together, other XXXX and taxes, in

to capital on our framework. balance Moving allocation and sheet

months, in we shares balance 'XX, current million QX authorization. end remaining $XXX.X and per $XX.X spent have free of of share. at million and $XX.X investments average generated last share repurchase cost $XX.X million we cash cash of flow our the this was million the a Over repurchasing our At XX $XX.XX weighted million, and X.X under

assess actively notes, remains priority in February price be an which $XX optimal The ability economically December coupon, repurchase options notes external that our cash QX basis our notes structure $XXX implement per our mature we as when XX these retire maintain and earnings warrants. existing structure annual business. balance generation any price capital 'XX and on effective our strategy addressing threshold senior well convertible and key X, XXXX. These to to million $XX.XX our over by share we to in an while activity sheet a financing conversion of for on We share supported will us. due flow confident dilution points our outlined capital hedges feature flexibility as near-term moderated remain and note As advantageous, our in of to balance call, the available cash cash attractive

Now, turning XXXX guidance. to the fiscal

our range a follow million, new XXXX. flowing through to guidance phasing of quarter quarterly range benefits to cost by first are end We revenue a the revenue $XXX in adjusted and to are to raising our revenue pattern $XXX XX%. From that lower by points, reiterating margin the the a to we into XXX perspective, million range guidance continue realized the fiscal of basis in of resulting fiscal we EBITDA similar range in XXXX XX% expect of seasonality

Now minus around modeling approximately with we to to points help operating million, plus sequentially expense QX, to non-GAAP of $X expense XX basis revenue. increase with for million, depreciation expense $XX expect operating or

Relations our now supplemental remarks. our updated historical financials containing available prepared open operating year for the QX the finally, throughout Looking ahead, concludes Excel-based questions. as financial we remainder has trended Investor increase to new 'XX products. And sales support continue our of for non-GAAP R&D and been modestly will sequentially package is our line we anticipate Please expense website. Operator, to invest and the that on in

Operator

Jacob first with question from Our Roberge Blair. Instructions] William [Operator is

Jacob Roberge

that that here? early some CAGR Mitek been you some on that the Congrats push wins bit you on opportunities a following back, then can Can go-to-market integration return you've to MiVIP. confident of feel just the the longer, you the of still great growth near-term take is this bigger Ed, double-digit about hear and transitions? about now the And talk from to to results. a these do if business step with a solid

Edward West

second with yes. Let me the part start is

significantly. And check as modeling kind services hopefully, on orchestration, the team just around this of and to an the in helping think and particular, bringing the stabilizes in that encouraging. In timing the but Dave in particular, particular, and as here with have in the our have identity of on quarter, I that, as and market and in out. solve our in enjoy side, to services is we some not that the capabilities back have, and with around just into going this of we out of on is and time in are of is they year just prospects AI is authentication, to dialogue just us through that we've talked deep on injection past the the in go-to-market gets our of this growth we're we combining the and that on spending of fake capabilities have, of LTM in platform look that kind basis. And customers recognize I -- now experienced with very business talked for they the particularly been level the continuing threat with we sales increase and financial some leveraging very kind issues what identity attack all the executing which growing against hearing and already really digital ahead on fraud dialogue about as and the capabilities and I encouraging. Obviously, it's actions the metrics their side then at But particular, some that year kind conversations vectors mentioned clouding around, earlier, about itself license deposits. of financial around mobile meeting fraud

those and more the around growth this and key we'll areas progress So really going forward, level. attractive it's that And SaaS year.

back about the feeling so by 'XX But year, and beyond. As other progress call, far, quite the report new of some last things the the on report to-date. how encouraged back I closer have activities about that we we're products, of underway, we'll and end product, the to mentioned

Jacob Roberge

about on great already is you I how Check XX the then And that a know partner signing top the partners that for the you on talk there. hear momentum And channel Fraud all live platform. That's trending the to solution few front, Defender have FI last though? helpful. Can week.

relationships it deposit potential update your and of are hear those great over well? that is the And how to shift some would then solution building. to as So there selling on partners for be start any larger mobile

Edward West

Yes, growing. partnerships that we fronts on both are there. have The today

remember, early The are with several stage, list Those out and growing growing. is FIs. those to got product CFD as an partners. they You opportunity with rolled solution is earlier the with We've get addition their sea legs and we're channel with dialogue conversations and some -- the And progress. in conversation the having to partners that's well. those conversations the the as of having larger

it's XX% I think country, can as data built on now. Yes, continue out network. experience a XX% time, solution to they on and the banks indirect continue fraud now for of has push partners solution, we value we this compelling of this also FIs all to even there obviously, solution. a of FIs have the being or them the continue there though conversations and when seen the channel pretty than growing only sets ours already and partners this of our And of in in fewer even on will conversation sit of for we've period and X% all continue the short their though to around accounts channels seeing been have direct the and push some

fraud already we So we're that a assess hey, those down talk to grow. We and conversations. see compelling that level very can of your and with we're it's just have portfolio. what able And the continues ROI, value and because of to in about, of them the seeing sit

for quick a them growing on has return compelling, it's So a threat.

Jacob Roberge

sneak And Great. few I The ID for and Okay. verification are in. an R&D give quarters, you've the just banking on of update ID and if one guide? the just then campaigns in they've more for deals out larger through could talked how then Can you the those about past the just pushed deals were accounted that pipeline it. us how been trending X

Edward West

prior to previous -- Dave campaigns. I'll on it turn the quarter

David Lyle

it's good the there, back a QX We frame Yes, you talked in know. time question. a as reset that initially, had about

eventually deals seeing think we be sales and for some of should we that of to reiterated, are During that that just and quarter, last half the in time will kind 'XX. benefit cycle even we 'XX It's close. start and into second that a these going long

Edward West

passive around might, has increasingly team, lot me terms take our more if capabilities none those growing back significantly to which ID we're in I Department what's we've step of these And of that attested capabilities. That the is Mitek with a a seen fraud capabilities just basis. talking frankly, where by R&D, on sitting having worldwide a liveness and I've is been now second earlier, the of whereas a this you assurance let frankly, that liveness, lot digital with about Homeland that passive important were Security platform, that on day-to-day U.S. that conversations on captures And that on of high businesses. with

also how broader are sell the market or So -- about directly those evolve we're very we that into here. integrated enthusiastic that and to continue platform how different products solutions solutions and into

asked. So Thanks. glad you

Operator

with is Securities. Grondahl question Mike next The Northland from

Mike Grondahl

couple And long over customer XX sales you you years? bit The about Fraud top there? can cycle bank Check for talk the of this next revenue the a what Defender, of little can how generate kind signed up was

Edward West

as is the calls very a many The of it. long. And valuable with into involved, the have the just network value think frankly, people Ryan. cycle get well it and internal, is them for good a parties conference, lot solutions the all some Validation, you it. But solutions, has company some it's the the sales and talked to big all the have compelling. afternoon, going and because a validation the see, more that once about data This the then of is some in long you through involved other and -- of I external And cycle seeing the Well, more parties it. as quarters, kind Mitek. in and network grows, previous it's

we'll I is this think that? grow. continue So What's to

Mike Grondahl

sales the cycle? year, a over it Was

Edward West

going I lot time. lot one, particular a say, period a validations through throughout the that's But other come in, that short a very, FI tests, a ones But of very particular obviously, That shorter. one, very a that business. that's would are validations, yes. large of different of in of ones had have lot other We've

Mike Grondahl

be year And for would like a bank? this potential will, revenue in what the X if or you X range,

Edward West

into of as Yes. attractive specifics it's it's for on both a network. particular get institution. We just and have compelling a partner in us. to the can't them I for them, would say, all Great very

Mike Grondahl

to Mobile December a you bank. top little XX did the nice Or sure. reorders, how come quarter? shake that in bit see for It's out expected? they did more in a That's than check

Edward West

Dave, do you want to talk?

David Lyle

it we just to say, expected. that quarter relative thought. different relatively I'd Yes, what much a solid was than wasn't we

Operator

The question next the from Klee Maxim Allen with Group. is

Allen Klee

the about that Mobile talked less of You outside had quarter. product Verify this pressure pricing MiVIP

So comment the and competitive selling on quarter was environment and that before. you in different also you're the more thinking that pushing the change maybe MiVIP? on than about -- how Can

Edward West

have start from is have growing value Yes. into standpoint our going Good the with everybody bringing process. latter intrinsic integrated that would we've the VIP focus sense it more these others, the and doesn't and any MiVIP. our signals, in afternoon, bringing more focus full having Obviously, I capabilities Allen. our that involved. That and orchestration where integrated algorithms for X greater Having platform, is for is into versus -- in that historically an algorithms IDV let's the in VIP. best to and in make partners

some business I I be a situations, percentage of increasingly VIP, over those So always but it's And to will we the as this direction. would time, and of going competitive will less Obviously, that say have as along. think different so. always we like pricing into more that's pressures shifting have coming just

Allen Klee

I'd on mean million, that digits, low anything I any just wanted double away? compared something? I hit -- high assume margins and it know no least -- It to seems what say million impact $XX transaction-related margins. the missing that Defender I you Is But be wouldn't if EBITDA that that double flat guidance. and Check of and last you your growth it -- be the could businesses to longer digits, a year, probably did said identity. give in higher was 'XX at segment don't is drag be that -- if at in -- then would would I single-digit the which assumptions to $XX least And was it target there that deposit would I'm on just some like Identity of like that, a go you your Is

David Lyle

it's Again, on think to you're on all Yes, depend optimizing results the think of way some then can If we was now. we're it's actually what to can I achieve and be the anything. yes. great answer want, about we're going be talking work able We're I we're don't doing missing the things that Ed -- Dave. how the continues that seeing we operate. on

Edward West

it that point later we do just objective last in we'll rather keep pass quarter, way. and later progress As comp we'll that, the back said year to it's is here but full the -- a our And in there, come of but you than in terms on sooner updated. durable

Operator

Thind question is with Surinder Jefferies. from next The

Surinder Thind

and think maybe about sort upon work Ed, kind expand are some I'd internally. some engineering to about process? aware restructuring when Can of the it through sell? there resetting force, ability we departments, Is think as some of going we you to mean of be like start in the we does pocket air And for of the that what we just you sales of with like the where these changes? or on that headcount been some that's should

Edward West

changes those in quarter worked past So this we near-term QX. back through

mentioned, we some Dave As restructuring charges in had December.

these customer, the how on have organization. to some executed different then. get around platforms teams, go-to-market throughout Yes, that, was the do kind R&D the with aligning and working side we integrated That we did with we how resources product tightly get thoroughly business, reductions. tied of and As done together, the the people in our closer which went we do

rolling on and continuing Now sleeves we're focused and simplify. driving the up to try to and executing business the

the lot product other -- the be the a enhancements, have kind still got get beginning work of execute, this sure We we This really things and situation we -- about that is and done. year. to deliver now assessing make talked but different throughout to of to

Surinder Thind

was you're at at was, trying so what I this to I effectively point. guess a guess, clarification, I target ask

kind here, to So shouldn't more at point. kind stability from were meaning there's out pipelines, we And of respect to kind comfortable this whether build people changes, to from we where we went expect of -- you have with of that you target, any just trying building of where all to to kind get -- I I of with start as of kind get executing roles can and start it's in was guess stuff, the that's this.

Edward West

Yes.

it's but But you on. that's and changes, enhancements team -- know here. that on things have downs, we know be do. continue execute and to ups -- going at we can what from where small are We're have about but never change. to nothing never to the right and to going executing just and we're a say have it's based focus what now, we're level we We There's We execute.

Surinder Thind

Got pause integration it. to process? bit of that have think actual I in as versus to simplification through wait? if any to terms in is of mean, is efforts. of trying little your air terms as there's that What just at chance the was a of does maybe was you potential kind willing through what product And clients do And the implementing get pockets. rather what you for that than some you then I lineup, sales there go a go I

Edward West

No.

just we're now very the focused on now having prospects that how we're things dialogue customer, with the -- getting on is the I been the the have and of and now think then in in focus who's now with execution a there's The spent more is around the what are there the our had market broadening change well -- we've solution. Then that, both more on positive what's and we a additional sales that on since for a the fraud, go-to-market evolving our right side, lot that MiVIP, everybody in and been is as the solutions, out I team expansions. involved. team signals familiar identity much like market, better rolled DFD we've actually think and we dialogue

these breadth of of reasons was some is in. impressive coming vectors and the that in think the the our I as of existing especially our one increased why very core -- expansions ones I pretty see threat is they went customers, -- through is

Surinder Thind

on we is revenue I for any it. Defender, when Got deposits client, opportunity the it there Or you following me, should mobile? in final question, that we a compare mobile Check get assume might for -- given Fraud it's or earlier maybe up can way on it you can equal the a you think one the just And So an about to an then opportunity to Or a any be do is what higher? perspective? magnitude? Can that characterization think about twice from how there? it

Edward West

platform because is of signals. beginning fraud. that We to but other bring a exposed we of get amount I'm they're in and exactly it potentially in the that's credibility our in fraud, going particular that feel what would not history would at an capability of terms key growth and bring And to with us and that have look check about say, fraud it's time, increasing because fraud of opportunity, into I with. mean, I over allows size. a be like financial for institutions

of to other where a to the capabilities digital forward other with going verification, checks the time, be see and starts like feel or and it of the addition it just the lot for Mitek fraud. forms more we all part in as business, you future involves So the into future over for orchestration offers authentication,

Operator

George next Sutton with The Craig-Hallum. from Instructions] [Operator question is

Logan W Lillehaug

George. to I This is Logan want follow-up. on for

growth have cohorts think I those helpful on gave accretive. kind And how expanding over you need margin as mean, frame for million some the customers? of time. with transactions we would guys guess? about the that, to new range $XX kind and that those of just I could where with $XX MiVIP versus and through that becomes kind of how of come You growth much cross-sell trended million How the segment organic ID commentary existing customers

Edward West

I growth has it's some you mean, numbers expanded. with existing, from new out we how business, there, as all can threw whether that the like of continued expanding that see

care driving with our and of use is I above. all having and think relationships bring to grow in customers it hindsight getting be wanting to new will continue We'll what the platform. a know all it our and the there and more more organization in exactly customers of the about value to see combination we to having and them the was. But

there's expand new. no continue We'd and rather do target. So to really magic

David Lyle

on little I a think that. just to on to Yes, add color to that,

pretty about expansion actually think excited it. opportunity for I and the we're -- expand is revenue pretty large,

revenue is of 'XX year expecting lot growth a the through in fact, In expansion this opportunities. we're the even

Operator

remarks. back our Ed to for session. closing conference concludes over This I would turn question-and-answer West the any to like

Edward West

want just appreciate the thank support We you. to We say interest. and

'XX and last the the beyond. to As the on quarter report time, position continue we'll and durable, we progress mentioned forward profitable we as this growth company for back going in

a have great Thank day. So you.

Operator

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

You may now disconnect.

Mitek Systems (MITK) 10 Feb 252025 Q1 Earnings call transcript