Summary
Mitek Systems closed its fiscal second quarter with total revenue of $34.7 million, up 20.6% from $28.8 million in the same quarter a year earlier. The company called it a record second quarter. Six-month revenue reached $67.2 million, up 22.7% from $54.7 million. Growth leaned on software and hardware products, while services and other revenue slipped. Inside services, Mobile Verify transactional SaaS revenue declined year over year, and SaaS revenue from the newly acquired HooYu business only partly offset that drop. Management tied the top line to the continued shift of commerce into digital channels.
Profitability improved faster than sales. Operating income was $4.8 million for the quarter, up 102.8% from $2.4 million a year ago, and the operating margin widened to 13.9% from 8.3%. Net income rose 87.5% to $1.9 million, or $0.04 per diluted share, compared with $1.0 million and $0.02 in the prior-year quarter. For the six months, net income was $5.0 million, up 58.0%, and diluted EPS was $0.11 versus $0.07. Non-GAAP net income, which strips out stock compensation, acquisition costs and other items, rose 49% to $10.8 million, or $0.24 per diluted share.
Cash generation was uneven. Operating cash flow was $7.4 million in the quarter, up 1.4% from $7.3 million a year earlier. Over six months, operating cash flow was $9.7 million, down 39.7% from $16.1 million, as working capital moved against the company. Capital expenditures were $0.3 million in the quarter, up 30.4%, and $0.6 million year to date, down 3.9%. Deferred revenue, current portion, was $9.7 million, down 14.6% from $11.4 million. The balance sheet absorbed heavy spending. Acquisitions consumed cash, and the company repurchased 886,204 shares for $14.8 million during the six months at an average price of $16.73. Total purchases under the $15 million program reached $15.0 million as of March 31, 2022. The 0.75% convertible senior notes due 2026 carry a conversion price of about $20.85 per share.
The quarter's defining event was the March 23, 2022 acquisition of HooYu Ltd for £97.8 million in cash. HooYu brings KYC orchestration, which Mitek pairs with its biometrics to offer an end-to-end identity platform covering account opening, workflow, case management, analytics and re-verification. It follows the May 2021 purchase of ID R&D for up to $49.0 million. Two deals inside a year create integration work and cultural risk, and the filing flags that directly.
Risks named in the filing are familiar but real. Mitek competes with larger, better-funded vendors in mobile image capture and identity verification. Sales and implementation cycles can run six months or longer for large customers, which delays revenue recognition. Revenue is concentrated in a few technology types and depends on a small number of channel partners. COVID-19 uncertainty persists for sales cycles, lead generation and vendor relationships. On the product side, Mitek held 78 issued patents and 16 pending domestic and international applications as of March 31, 2022, and more than 7,500 organizations use its products.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $34.7M | $32.5M | +6.9% | $28.8M | +20.6% |
| Research & development | $8.2M | $7.6M | +8.3% | $6.7M | +23.1% |
| Sales & marketing | $9.2M | $8.4M | +9.1% | $8.5M | +7.9% |
| General & administrative | $6.1M | $6.0M | +1.8% | $5.7M | +6.2% |
| Total operating expenses | $29.9M | $27.6M | +8.1% | $26.4M | +13.2% |
| Operating income (loss) | $4.8M | $4.8M | +0.1% | $2.4M | +102.8% |
| Operating margin | 13.9% | 14.9% | -0.9 pp | 8.3% | +5.6 pp |
| Net income (loss) | $1.9M | $3.1M | -38.8% | $1.0M | +87.5% |
| Net margin | 5.5% | 9.6% | -4.1 pp | 3.5% | +2.0 pp |
| Diluted EPS | $0.04 | $0.07 | -$0.03 | $0.02 | +$0.02 |
Risks
Russian military action against Ukraine could have a material adverse effect on Mitek's operations, results of operations, financial condition, liquidity and business outlook. The company has employees in Russia, and enhanced sanctions activity by the U.S. and other countries may disrupt vendor relationships, service delivery, and projects in the region, and could require shifting work to other countries.
Summary, forecast, risks and KPIs are extracted from MITEK SYSTEMS INC's SEC filings for Q2 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.