What happened
Shares of Mitek Systems (MITK -0.09%) were up 14.2% as of 3:20 p.m. ET Wednesday after the digital-identity leader and fraud-prevention specialist announced strong (and previously delayed) fiscal first-quarter 2023 results for the period ended Dec. 31, 2022. Mitek also raised its full-year outlook.
On the former, Mitek's fiscal Q1 revenue climbed 41% year over year to $45.7 million, while adjusted net income was $14.3 million, or $0.31 per share. Most analysts were looking for earnings of only $0.21 per share on revenue of $37.4 million.
So what
For perspective, Mitek previously delayed the filing of these results not as a result of misconduct but rather due a change in the company's auditors after its previous indepdendent registered public accounting firm resigned in May 2022.
Mitek noted its top-line growth was largely driven by a 59% increase in revenue from its deposits business, thanks primarily to "a large, multi-year mobile deposit contract signed and partially recognized during the quarter." The company's identity-segment revenue also climbed 15% year over year despite macroeconomic headwinds facing the industry.
"Our strong performance in the first quarter highlights the continued relevance of our industry-leading solutions in the large and growing markets we address," added Mitek CEO Max Carnecchia. "As new types of fraud and scams emerge and existing ones see a resurgence, like check fraud, I'm proud of Mitek's innovation and speed in responding to these growing threats."
Now what
Mitek now anticipates releasing its fiscal Q2 2023 results on Sept. 14, 2023. In the meantime, the company also raised its outlook for the full fiscal year ending Sept. 30, 2023 to call for revenue in the range of $169 million to $171 million (up 18% at the midpoint, and compared to its old guidance range of $162 million to $165 million), and adjusted operating margin of 30% to 31% (up from 29.5% to 30.5% previously).
In the end, Mitek still has some work to do in getting fully up to date with its required financial filings. But these strong results are a big step in the right direction, and the stock is understandably rallying in response today.
