Mitek Systems Beats Q4 Earnings and Revenue Estimates, Stock Up

Mitek Systems, Inc. MITK reported non-GAAP earnings of 33 cents per share for fourth-quarter fiscal 2024 (ended Sept. 30, 2024) compared with 15 cents a year ago. The bottom line beat the Zacks Consensus Estimate of 17 cents.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues increased 15% year over year to $43.2 million from $37.7 million a year ago. The top line beat the consensus estimate by approximately 5%.Strong adoption of fraud management solutions and innovative product strategies are driving revenue growth, with flagship products like Check Fraud Defender, MiVIP, MiPass and ID R&D biometrics gaining market traction.Mitek Systems, Inc. Price, Consensus and EPS Surprise Mitek Systems, Inc. price-consensus-eps-surprise-chart | Mitek Systems, Inc. QuoteMoreover, the company is integrating past acquisitions, aligning teams and enhancing products to drive cross-selling and upselling opportunities. This initiative aims to boost revenue and reduce costs by streamlining redundancies.Following the results, shares are up 17% in the pre-market trading session today. In the past three months, both the company's shares and the industry have soared 11%.Image Source: Zacks Investment ResearchQuarterly DetailsSoftware & Hardware revenues (42% of total revenues) increased around 20% year over year to $18.3 million.Services and other revenues (58%) climbed to $24.8 million from $22.4 million in the year-earlier quarter.Non-GAAP gross margin for the fiscal fourth quarter was 86% compared to 87.3% in the prior-year quarter. Solid software and hardware gross margins of 99% and a margin of 76.5% from services and other revenue were recorded.Operating DetailsNon-GAAP operating expenses were $22.1 million compared with $26.2 million a year ago. This was driven by a decrease in bonus and vacation accruals, reduced outside accounting support and lower marketing and travel expenses.Non-GAAP operating income came in at $15 million compared with $5.4 million in the year-ago quarter. Non-GAAP operating margin was 35% compared with 14% a year ago.Balance Sheet and Cash FlowAs of Sept. 30, 2024, MITK had cash and cash equivalents and investments of $141.8 million, marking a $6.8 million increase year over year.During the quarter, the company generated a free cash flow of $30.3 million and repurchased 2.2 million shares for $24.2 million under the share repurchase program.OutlookFor fiscal 2025, the company projects revenues in the range of $170-$180 million.Full-year fiscal 2025 adjusted EBITDA margin is expected in the range of 24% to 28%.Zacks RankMITK currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other CompaniesPure Storage’s PSTG third-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 50 cents, which beat the Zacks Consensus Estimate by 16.3%. The company reported non-GAAP EPS of 50 cents in the prior-year quarter.PSTG has increased 35.2% in the past three months against the industry’s growth of 2.2%. In the last quarter, it delivered an earnings surprise of 16.28%.Ciena Corporation CIEN reported fourth-quarter fiscal 2024 results, wherein adjusted EPS of 54 cents missed the Zacks Consensus Estimate of 66 cents. Also, the bottom line declined 28% year over year.Shares of CIEN have jumped 61.6% compared with the industry’s growth of 58.5% in the past year.  It currently has a long-term growth expectation of 6.8%.NetApp, Inc. NTAP reported second-quarter fiscal 2025 non-GAAP earnings of $1.87 per share, which beat the Zacks Consensus Estimate by 4.5% and jumped 18.4% year over year. The bottom line also surpassed the company’s guided range of $1.73-$1.83.Shares of NTAP gained 5.7% in the past three months. It currently has a long-term growth expectation of 7.2%.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ciena Corporation (CIEN): Free Stock Analysis Report NetApp, Inc. (NTAP): Free Stock Analysis Report Mitek Systems, Inc. (MITK): Free Stock Analysis Report Pure Storage, Inc. (PSTG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks