Mitek Q2 Profit Down, Misses Estimates; Backs FY24 View; To Terminate CEO; Plans $50 Mln Buyback

(RTTNews) - Mitek Systems, Inc. (MITK), a digital identity and fraud prevention company, reported Monday weak profit in its second quarter, despite slightly higher revenues. The company also maintained its fiscal 2024 outlook, and announced up to $50 million -two year share repurchase program.

Separately, the company announced that it will terminate the employment of the CEO, Max Carnecchia, on May 31, and that the Board has appointed Scott Carter as Interim CEO, beginning June 1.

The Board is conducting a comprehensive search for a permanent CEO.

At the request of the Board, Carnecchia will remain a member of the Board of Directors and be available to assist with the CEO transition process.

In its second quarter, Mitek Systems recorded net income of $0.3 million or $0.01 per share, lower than last year's $5.2 million or $0.11 per share.

Adjusted net income was $11.5 million or $0.24 per share, compared to $13.7 million or $0.30 per share last year.

Total revenue was $47.0 million, compared to $46.1 million a year ago.

Analysts on average expected the company to report earnings of $0.27 per share on revenues of $46.44 million, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

For fiscal 2024, Mitek continues to expect revenue to be between $180.0 million and $185.0 million, a 6 percent growth rate at the midpoint of the range. The Street is looking for revenues of $181.52 million for the year.

Mitek still expects its adjusted operating margin for fiscal 2024 to be between 30 percent and 31 percent.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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