Mitek Systems (MITK) 16 Dec 242024 Q4 Earnings call transcript

Good day, and welcome to Mitek's Fiscal 2024 Fourth Quarter and Year-End 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 MKR Investor Relations. Please go ahead, sir.

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

cover live to Before year a issued ended and its announcing its I'd call I over available on Internet the website is XX, fiscal call being parties, That -- This release broadcast the Investor interested quick over will release September fiscal results is turn all like Today, the the Relations press to full XXXX. financial webcast page a be the on its at for Mitek company's the of XXXX few miteksystems.com. items. quarter Ed, and for fourth website. company's archived

everyone certain forward-looking be on will our comments of business expectations include comments that management long-term that about discussed the influence particularly and remind factors should forward-looking future to forward. not market call, discuss company's considered Any and going factors plans regarding statements. the performance. may prospects are These today today's want statements I facts likely historical to opportunities,

We filings, Forward-looking all to XX-K number subject to materially. and our a these risks which of and cause including complete SEC our are for actual most to review XX-Q differ of our could listeners results of risks. statements uncertainties, a encourage recent description

expectations made today, contained to events, XX, a December statements or in are of of as XXXX, company as the this update or information, revise obligation result call publicly undertakes whether otherwise. future the Our no statements any changes on herein, new forward-looking and of

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

days thoughts to honor learnings first the It's of business, afternoon. would as good CEO I some last taking. we the as and the address provide the Dave into an 'XX Mitek. and insight time my opportunities actions that XX-plus and the my for you QX regarding Todd, Thanks, as coming and will results share the for year. outlook are well fiscal to cover over the like

up then for will We open the call Q&A.

and our a mitigating of and third, and and problem significant businesses comprehensive and Star. identity-related long-term like team are deep would a for from clear a place, second, to domain against Mitek get for you everywhere; for GenAI fighting in to growing company deepfake executing nearing fraud, back side business; identity plan hear by call: operational has a cybersecurity There focal is all discipline First, today's key takeaways solution are for an with experienced profitability is expertise North fraud our organic are four fourth, is to durable now the point focus growth on including growth; leadership near-term value I supported risks creation the who the becoming our we for

legacy So first trusted the by on inspired October, to partner recently in I of FIs. institutions his as to point. or financial Mitek joined thousands a

and customers, to growth retailers. innovation, the my driving Cardtronics, as to we our organic actively place, and nation's value rooted confidence for FIs, create fiscal in while My With addressing has in by fostering we we and employees. at Mitek's where clear over potential building foundation largest a organic delivered X,XXX network are margins enhancing in challenges, is company shareholder scalable experience shareholders serving in the CEO fintechs are them significant plan 'XX growth. positioned and value While faced strengthening profitable a drive well

and growth shareholder have innovation, interest, with delivering executing we almost solve our the to our These at ago, and transformative pressing years to the alignment opportunities Mitek along transactions, forefront with solutions founding Since secure here experiences, XX financial customer ahead. the my we've to at mission-critical Mitek's operating some my strategy drive unlocking ensuring been in software the institutions. of digital space. challenges enabling From consistently of world's mobile banking largest commitment

the find weeks to with the market ourselves U.S., of Europe, Today, are comments mostly we and United in speaking by evolving prospects Kingdom tackle large uniquely fraud. new regarding numerous the rapidly customers and and particularly the informed My AI-driven meeting rise last positioned over several threats, very FIs. and strategic today

X,XXX globally, heritage fairly prevention. authentication success We mission-critical multimodal boundaries leader exceeding companies best-in-class frictionless recently solution our we've our proprietary and serving year. push with fintech are identity innovations with computer AI revolutionized and telecoms, mobile FIs, in fraud years, total biometrics, is At in solutions, each solutions marketplaces, of fraud released with Mitek deposits been mobile trusted verification, At processing the vision last steady deposit and check transactions injection, companies billion and This X check identity-related includes the our our has including and to continued of core, application and over management. core detections. deepfake liveness, $X.X over and a

'XX, doubled Fast past the million almost in on $XXX today, million by years, fighting now driven to forward primarily the in size with revenues verification. and XX%, has fraud expanded business to margins decent in products. amount to the we've check-related XX% undergone focused of company Mitek adjusted of had EBITDA Over over growth. a and revenues, fiscal X In $XX

accounting, are challenge growth which transformation, executive acquisitions, and to its place company demand issues this challenges. solutions strain the over This our was and it our pandemic impressive, that by While pushing on and finance speed major scalability considerable teams. created hasn't digital outpacing significant amplified prioritize come all infrastructure. with. This its without familiar legal for turnover operational is The too COVID-XX driving you accelerated

for foundation, of growth. unifying on products With the our marks prepare pivotal and a strengthening as the go-to-market our dust phase settling, optimizing fiscal Mitek we technologies next for and 'XX strategy to year focus

Now takeaway, turning key has a investment major which focus the the understandably been for second community. to

'XX, considered we addressing the We overall revenue shareholders, be consuming, has have have leveraging shifted cash portfolio identity. go-to-market our point optimized focus slightly our while spending identity position and technology, to reducing and through of are committed In to identity and scale focal growth value from the Historically, towards innovation achieved streamlined will is partners, customer goal we been forward. this XXXX our while and returning carefully to feedback experience moving cost levels in during company for profitability. enhancing fiscal This beyond. strategies investments. prior fiscal will efficiencies revenue nearing double-digit the in that The

execution point some identity to high the EBITDA plan, is fulcrum overall in product single-digit dilutive was product this with context, achieving consolidated provide portfolio And points becomes believe To we adjusted portfolio $XX margin X-point run the the to revenue this disciplined percentage our 'XX. following rate $XX at million in margins against fiscal which million by accretive.

The plan is follows: first, integration. as cultural

second, product will streamlining years, We're integration. cross-selling. our driving more acquisitions, X XXX through teams past upselling exceptional past to expansions now bringing integrating count and head revenue this doubled in efficient and in collaboration creating 'XX, the than focused on product redundancies; has talent, boost and We while technological enhancements and initiative execution. costs reducing better fiscal believe total aligning by silos also Over into but

biometrics, preserve but separate technology acquisitions our significantly stack liveness to advanced systems have fragmentation. innovation unique and platform capabilities, managing with Our their bolstered created

example, identity systems, that homegrown acquired similar verification but operating differed both have functionality. been For customer we multiple and document needs addressed in

driving positive for customer opportunities already growth seen integrating operational by redundancies. a through streamlined costs platform, single customer been feedback while use. these into performance we've enhanced and have cross-selling We consolidation eliminating of improved and retention is and ease This highlighting reducing revenue

significantly technologies vast automation, reducing enhanced getting fulcrum integration up acquired point is is of review limit transaction in Through key The third reliance priority per total in of which majority our AI cost efficiency. us XX% we costly cost now, reducing 'XX by identity The manual scalability. transactions automated action the transactions, direct the the or for models, identity with for the to on over transactions. and ramped agent to

increase of we our continue continued in And optimization. finally, we expect go-to-market automated proportion As unit economics. the to transactions, improvements

acquired first, new new customers. recently cases, within To geographies base, as use and key maturation third, customer the accelerate expanding such growth, our acquiring expanding initiatives: new existing we're products, focused and of on new increasing second, customers; units; to three business other

rapidly exhibiting MiVIP driven the doubling and following with more has driving than first year use as volumes experienced additional verification stronger was to user-friendly engine, per document signals, on FY further a stand-alone and new revenue the interface platform value verification. pricing transaction growth 'XX, Mitek. for value cases It's pricing deploy pressures Verify with the X multiple considerable Tier architecture resiliency transaction customer customers revenue transaction Mobile in allows accounts adoption. and per its flexible underscoring document as MiVIP activate proposition when compared of of well several that on by In

stated, the Simply our proprietary commoditized differentiated to capabilities to lessen want exposure and leverage we offerings. stand-alone

trust management. customer As MiVIP of and expect for an in opportunity cost uplift significant. leader customer suite positioning acquisition, deepening fraud we FIs acquisition MiVIP in driving the By products, authentication transaction. ecosystem, remains to identity per new partner in customers relationships increasingly the market enabled leverage and a as both verification, our revenue new With thousands customer and growing we're

'XX. monitor of provide data-driven That continue these our investors any if insights And to this shareholder significant committed from we said, decisive the in milestones. To support we our we closely targets actions maximize into this, we our want that to to arise, offering strategy ensure key taking to fiscal investors progress transparency, value. against are will will execution deviations

all for growing Now a integrated risks, to third rising AI-driven Mitek platforms, Customers fraud just point becoming solutions, problem solution cybersecurity identity-related threats is are and and key defects. not takeaway. let's fighting the mitigating unpack sinking combat for a comprehensive increasingly businesses.

leadership, to positions evolving with out track talent capabilities and stands Our platform U.S. benchmarks. combined with proprietary lead and this government-led record independently in This trusted technological expertise, market. leading our exceptional fraud of and third-party established Mitek verified domain with an

The GenAI-driven AI growing rapid a period proliferation new of of leads to fraud.

include this uniquely address capabilities, defenses identity a authentication proven transaction our market through growing problem which assurance and platform to protects customers detection deepfakes, X-factor and onboarding, and and digital all against integrated of by high enablement, as record presentation injection attacks. and verification positioned segments. advanced We enhanced proprietary biometrics technologies track result fraud are Mitek's

recently, Department have Our passive commitment capabilities to environment. and of from highlighting a liveness and strong the technical field, Security, in recognition our solutions excellence rapidly Homeland biometric NIST in and fraud earned detection changing more the innovation

Fraud ACV or million $XX exceeding ACV, at its CFD's consortium early double showing interest we strong are our CFD strong is or and are where contract already Check Annualized enhance 'XX's CFD, XX% data participants targeting in grew behind fiscal Defender, uptake. though to year-over-year, than fiscal more is nearly seeing stages, 'XX. the and in The Similarly, currently product, effective. CFD value, in more asset by close, proving model

checks members to X% have we foundation from in FIs accounts as We of XX% the partnerships our deposit paying nearly and less all continued the of seen have on of all mobile having drive are X,XXX-plus of and poised our these major checking already relationships sets accumulated through than With and strong data deepen cross-selling country, States, with while FIs the all CFD. approximately these United growth we consortium. in FIs,

our the not is focus North and takeaway. value four Organic last the discipline for long-term discuss our growth near-term but Star. Now operational is creation key least, let's

sharpen growth accelerating revenue ensuring more outlined we've Our capital and we all SaaS margins the free expanding disciplined focus value. in revenue, foundation cash Every profitable organic flow, allocation fiscal initiative by on generating share this to is in 'XX. shareholder a maximize today underscored is increasing growth and predictable to focus, deliver of fiscal the strengthen designed and strategy 'XX

growth. our cross-selling X and of we Check Here's platform new approach transactions First, by within revenue for growth Fraud organic financials: expanding steady organic customers, improvements MiVIP Defender drive new cases with Digital existing how use Fraud the in will this aim measurable revenue introducing key Defender, like acquiring customers, and areas

SaaS. revenue aim to higher greater and offers this which dominates sales, of a the But impacts license we 'XX, proportion to a XX% as revenue, revenue term our today. of revenue. volatile of towards our revenue transition SaaS SaaS of of approximately still becomes percentage volatility. In a Second, dampen from We higher larger which our came fiscal expect reduces portion predictability

goal a our fiscal half to to are out revenue total Looking XXXX, pursuing revenue. approach we for SaaS of

In we for to margins margin associated product fiscal By to fiscal as cost we considerable integrating Third, 'XX, operations portfolio look in lower driving we scaling invest EBITDA CFD. adjusted the leverage, while anticipate expansion. efficiencies, accelerating improvement we demand and in expenses achieve to revenue 'XX. out a with identity operating expect

reduces mid-single-digit strong ROI percentage While investment margins Fourth, cash the free believe flow generation. CFD justifies temporarily points, this by we it.

nonrecurring reduced more to we fiscal significant cash and we acquisitions, with a 'XX. conversion As flow tied expect and a fees, audit stronger transitions impact EBITDA extraordinary of in starting executive free costs adjusted

And maintaining about all conclusion, allocation. to a forward with sheet. we remain growth is operational as and to returning disciplines, look 'XX fiscal capital shareholders and We not balance balancing value capital XXXX creating for foundation In to finally, committed stakeholders long-term beyond. just fiscal strong flexible the for durable of our investments

over to like turn to I'd it now Dave.

already and we've I'll I'm to had Mitek. fiscal say together. And XXXX financial about welcome a and been finish outlook taking Thanks, I'll items. you getting to strong today you, to begin working the great and Ed. through I'd provide a start results, addressing then know excited by by some to It's take housekeeping like moment

Please non-GAAP results referring be that note going I'll to forward.

First, while $XX Identity QX results. under the $XX.X our XX% $X.X of surpassed growth. grew million. million revenue revenue deposits grew which revenue Fiscal products midpoint of fiscal products range range just XX%. $X higher than midpoint QX operating a by the margin, or million was the income came XX.X% QX at Non-GAAP guidance revenue XXXX year-over-year, year-over-year XX% for the guidance million, in

onetime accruals $XXX,XXX related by for our adjustment of just of $X.X driven million and year reversal mentioned accounts, a doubtful a operating to reduction from the efficiencies. full allowance was results, $X.X This higher the revenue on remainder based onetime bonus million expense

and million was to million in non-GAAP QX from little $X to expenses, mentioned bonus million closer sequential a support and in due sequentially to a Looking expenses. outside This to and $XXX,XXX primarily reduction operating reduction marketing our reversal, QX. travel accounting reduced we fiscal million accruals, $XX.X $XX.X million $XXX,XXX in $X.X $X.X accounting-related as before by to expenses a in vacation reduction

in CAGR potential revenue X% have growth XX% the seen more important a that term. on fiscal operating strong summary, That 'XX we let's would while contract Now If for 'XX of and penetration over forward XXXX, COVID-XX recorded discussed calls, was reflective roughly In and we 'XX results. reorder prior created we fiscal in full revenue million deposit mobile $X-plus our the margin. $XXX.X underlying margins our of growth operating the to non-GAAP revenue XXXX in as long X-year CAGR fiscal customer deposit fiscal the revenue It's non-GAAP note that and about since in year the product at to believe remained pulled gap accelerated fiscal is XX% remained year-over-year where in recognition at QX fiscal large fiscal XXXX adjust 'XX trajectory was the move business million, the of XX%. a X-year 'XX boosted mobile flat. and XXXX year $X flat million

This relatively deposit starting million. X% declines Turning check on CFD resilience solutions. adoption CheckReader renewal by Deposit in offset weakness by primarily remained as more specifics than these timing by timing. our Strong We increasing results, and primarily to our driven of in revenue declined products reflects have now declines broader products. less Mobile volumes volumes. that revenues, believe $XXX.X Mobile in the slightly transaction decline product growth rather with despite revenue market year full Deposit to than stable Deposit the due are to was

transactions suitable adoption our capture. a to about now X.X processes U.S. the we context, for X checks translates estimated this With believe an retail billion over on X mobile X/X to billion platform, billion XX% check check rate. about with digital provide annual To being market

volumes in banking While estimate rate have mobile the recent the we years, levels growing at total narrow transaction sustain a in check helped declined a relatively of single-digit range. has adoption

biometrics fiscal continued The declines headwind hardware $XX.X hardware growth identity. sunsetting percentage a XXXX, to year-over-year Mobile by ICAR products, solutions. Revenue platform our negative million revenue. products offset to $X.X X the impact revenue our million or Verify legacy on to point sunsetting increased for our pricing ICAR was our in in of on Moving identity a by X% point small less and than MiVIP pressure strong transaction-driven products had

gross an R&D. in maintained in adjustments as P&L, the growth down for of $XXX.X to between improved operating expenses diluted $XXX.X cash expense million our The million from non-GAAP fiscal earnings increase operating share $X.XX from adjustments resulted for unit operating net approximately we expenses release. bridge with Moving strong Non-GAAP economics detailed diluted and margin XX% XX.X% $XX.X in our GAAP 'XX, $XX.X margin XX.X% in that a XXXX. million with accounting and million Non-GAAP in shares, operating non-GAAP noncash to $XXX.X income rose fiscal XX.X $XX.X non-GAAP year. million million the million reflects year-over-year. $X.XX a on per This coming

million let's and to framework. a and cash our and repurchase our capital million We allocation under flow program year-over-year. in million generated repurchased with million move in $XX.X $XX.X cash $X.X XXXX, for balance shares sheet $XXX.X million fiscal share investments, the during ended X.X free increase Now year on

strength. with of convertible priorities of to allocation returns has for balance CFD, balance fiscal Share with continued strengthening foremost, high-return million XXXX. MiPass which maintain opportunities, $XXX in repurchases pace as are in the 'XX, remain, QX our flexibility foundations the growth must and slowed ahead biometrics February sheet strong maturity first in XXXX. capital poised we but including we Our capital MiVIP, bond demand fiscal and make funding Then headway

sheet, and/or our to discretion. we balance generation by its are continued repay Combining our the bond flow at strong refinance well our maturity cash with positioned

views given of not repurchasing are financing value reflect Our activity shareholder our focusing current interests. price, on the stock dilutive to in the and current the least any we does protect strategies change

turning our to guidance. Now fiscal XXXX

of million, million $XXX with growth products. coming a from SaaS to are We guiding to revenue $XXX range our

introducing operating the and at We it EBITDA as margin adjusted simplicity. feel these on revenue. run non-GAAP and is Note greater that which X% guidance, of approximately historically offers are bridge replacing income we also amortization, has two depreciation emphasis our comparability between

we the to said, in to on the specifically steady total With that we an relatively adjusted to with of year margin XX% EBITDA XX% are fiscal year. revenue last More XXXX. side, range be deposit for expect guiding

be yearly We in we expect product customers to bank deal typical Check our of of This where Defender declines Fraud single second due decline mobile deals, those offset deposit likely reflects term XXXX where deals especially more inventory revenue where to customers and mostly from revenue somewhat recognition. bought products nature expect by of growth few to second a of for a in license return a tranche quarterly half larger the all size in timing, the customers to and and our the XXXX. buy of with timing impact revenue larger accounting our

revenue But affect terms or values. accounting contract billing the that takeaway doesn't key is

during customers consortium. CFD Looking more into some plan the CFD transition we on-premise specifically at XXXX, to

our strengthens license ACV, we and headwind term consortium shift can ratable as transition has revenue revenue. small this While create to no SaaS GAAP a impact on it from

identity to Turning products.

driven our in our SaaS fiscal revenue of see identity all identity growth. meaningful nearly MiVIP expect growth to products expected We like by to solutions with XXXX products be

for lines significantly and we larger, and approach from primarily can grow, point to a are deals those forecasting as revenue are complex biometrics cautious recognition. software these that solutions, forecasting our in-year XXXX While maintenance more learned to products impact challenges taking identity more our in expected fiscal

with the of in the quarter. phasing more line the we first fiscal the see on fiscal a half heavier half revenue XXXX concentration be to follow to anticipate We seasonality half occurring provide that to similar revenue fiscal anticipate of top clarity second how will second the second similar To XXXX. XXXX we through of year,

color some on Now expenses. for non-GAAP operating

annual of in for expenses year. the We as million vacation with the operating as the to first our sequential reset new bonus about fiscal well XXXX revert coming the quarter expect accrual $XX reset increases level from primarily accrual to

QX, mostly in we as new incremental invest in some products. R&D from there sales expect sequentially operating expenses and in We beginning fiscal our

new some move revenue our non-GAAP Now as refined let's reconciliation GAAP on all as earnings tables to revenue items. to type to in housekeeping We our release. well disaggregation show

flow, free our which addition, have introduced emphasis cash echoes In we conversion. improving cash Ed's on free flow

some our disclosures, ahead. hope an transparent All historical containing financials. supplemental package with these commitment shareholders plans we uploaded reflect transparency Excel-based consistent positive financial better performance website our and our to to in Finally, our Relations to assess Investor our in we've trended enabling more updates moving all, coupled remarks,

that line our the prepared Please concludes Operator, questions. for open remarks.

[Operator will come Instructions] And William our Roberge with first question Blair. Jake today from

commentary That Welcome helpful. aboard, and disclosures really were Ed.

exploring? and as us prioritize talked So a refining Can the you're the organic you the you made X-year fruit and both Dave. comments through ID of growth. still lower-hanging to thanks business around you to you longer-term maybe verification those address initiatives as Fraud? you some see of looking moving you're parse of this you about better Ed, you that Check kind that some the out work year once strategy at about medium-term CAGR look to versus help XX%, here forward, then And opportunity do the initiatives

the solutions, particular, done, all as my growth. focus, current have, that currently VIP, Fraud of new with Integrating our frankly, comments, is our of Defender the you. for like obviously, focus algorithms of an kind introduction. all, there's conversations So on with MiVIP is products, good in emphasis base. very Digital Thanks which on that seeing. the I And market meet rolling for transaction the the solutions organic excellent in focused in to particularly some addition teed in transaction, our of improvement been showing in to and side of what just some the ardent first with lot we on that's auto spoke have the terms of like And well, out improving up the getting to a solutions identity

we about outlined I recently the as a use see in in uptake them. has after volume the of year, is significant with a customers, tuned things the solution been would with on-boarded One

see we year more areas customers year, in growth and evolving I ACV, I with the saw about on so more mentioned with then key our this double So Check Fraud growth. I with into Defender, XX% key deposit this would there. of would we And last guess that and side, the some than say that of year.

those we the with it's -- I and and when frankly, financial one at Mitek. our have, areas world. that you around X,XXX company has the of So reasons the U.S. reputation and joined why history Frankly, look for the time in over a institutions the long

leveraging rising whether having who these there we're concern that, thoughts. and -- are I've where where that had in U.S. and side, are the see looking coming and United -- in on there's are the last they Leveraging the deposit U.S., cross-selling and customers of solutions Europe, they over a level opportunities, AI side, those the weeks, at but relationships frankly, Europe innovation the partnerships. these Kingdom in the being see significant the and interest my on, frankly, of a recognized conversations are and with those in around the And particular, issues as the in in few some new leader identity on

these I technologies market-leading with the those to capabilities. is continue new company's which and the product it's So point really last we important I think areas and that make, having why the invest innovation, the in would innovation history,

of will evolving a because partner these areas to Mitek partner high being like like financial want with someone assurance why large with That's into companies threats. institutions these

I Can of question. think second the that's your you part repeat...

Yes.

can do second guess look was that ID you the at opportunity Because The really X-year -- XX%. about year. you about growth, talking doubling moving as next as verification you you the talk fraud double-digit were medium-term I business here? CAGR part around forward, check the of see

Just you're medium-term growth at that looking curious how opportunity.

think that's I fair. mean, I

is from all Our first do get concern teens, And of of there. back to to the our having that going frankly, not back is a the taking that that. on getting in terms with ship and growth through We and But company making we double-digit goal This do I continue it to a from have goals we're durable gone lot. low up how to effort turn growth a got to sure to be there. and drive first then front.

over issues. all think made know, I as of distractions, lot these And the efforts. progress you been couple we've is of on a the tremendous years, last good a well of there's lot news

the that plan, against momentum, organization do as we'll falls. believe, this on you give feel will those, But focused having highly year and stage. about build color a okay Now clear I executing we this at that more it that then throughout on

Check had of just two-parter able to on way Have Very this and other running any you have a Okay. helpful. with be in And any And activate message? there then to are large partners and on solution that partner up Fraud that likely new customers Defender. those now you clear you've started ROI may year? change the customers then conversations on see initial front with CFD, that kind

aware for build the XX% into data now, of associated level right are the few able accounts sets we've that just then had see some network Now how have the compelling. works, the conversations of of I've that is ROI accounts let's having and solution with from those already been set The about conversations prior you and extremely now turn as been is is think over already the also those to the meaningful. it tell data to of FIs would Dave you XX% and I just the from evolved. very that I with

get think as and familiar concept. more it's I with more a it, So new

move run know But a test if see on think you I in the it can takes the it prior. little and don't So I that while and they'll to Dave, do, come as But they benefit brings forward, more along. quickly. comment they

Yes.

this looking cycle. life is at in Just where its

on we're past thought banks little It we before, this. said excited what be in handful continues ago, over year about. that working we year. we starting who a had was to get obviously which forget, nascent the traction As a pretty a it were stage this of Don't its would, to we we're

we've come So pretty a way. long

Grondahl next your will Northland come Systems. Mike question from today And with

Mitek Ed. found you that really is My first you. been for and you've have question deposit the When reviewed mobile Welcome, competitor side? while, on a check you now a there

back the financial banks over going I broadly, a the so solution. we institutions, looking presence share reputation, Well, at of number have in States historically, United with the the and X,XXX, company are we see unions, credit that more of with the lion's the

market value that. a product, own our in with using their tremendous suite, it. associated There's having think into integrated sees the in I value amount just app of tremendous our highly a

are others make will application for customers. continue excellently sure we're proposition out very integrated their and there there, a compelling So customers our we competitive value and to delivering but

question X,XXX your my price view in that out you Mitek a on the is position there, What's such And power increases. mobile future of check dominant has specifically potential X,XXX and deposit banks. have more pricing out

aligned sure to sure and will but see would Well, offering, going of in to value I continue place in pricing making pricing product that to would long-term to there, the opportunities mean, the into the is continue the there's pricing value the obviously, this market. will call there that be tremendous competitive and is There's say I value just what on is basis. not a we is the making and the value be tremendous solution. in

you you'll you Check to enough. investment? talked roughly Fair year, guys look disclose Hopefully, of next about amount kind something this And revenue? Fraud in is In dollar what at. take quarterly two questions there. you investing think able that Fraud the hard Defender it's Defender, When be of a do Check

and in mentioned we I grew the to comments So roughly than year throughout million with double this a my more it ACV we and ended year. Defender Check XX% year, expect $XX the on it Fraud here,

So solution. momentum seeing and strong on interest we're the

further you regarding Dave, if -- So don't want reporting, know that? I the but to comment on

Yes. start towards We're all the revenue stay we economic more to trying ACV recognition. guidelines -- the heading that think -- the reporting better value, for given represents on accounting because of

other see across ACV CFD parts with you'll of portfolio. So not more expanding product just our

request the company impact invest into market, news I the the low investment getting way such kind levels, that the sure our side, is cost the seeing of And In out And it the and customers, good deliver in we and in on to margin with continue mid-single-digit to it reporting interest. I capability, want functionality, with interest product terrific. its execute in getting to that are to that EBITDA the interest the that scale and continues growth but is is mentioned incremental, on we CFD. and strong from additional think making swiftly incremental which

So took year. that, a has product the taken has that's on as the grown. company the and approach prudent investment -- this solution It

elevated of front Do don't little And one OpEx fiscal expect overall, fiscal will last about be then little just me, 'XX Dave. in model just relative the was? Okay. of bit or what 'XX, but a spending, for OpEx bit you savings 'XX? this I have of a to

midpoint earlier math -- you efficiencies is said if $XXX see operating side. and EBITDA 'XX the in the we'll mid-single-digit the range Well, of product the ranges, mid we OpEx of in an portfolios, dollars million -- the spending on our call identity what you on end revenue some do kind of improvement on of it, Yes. at additional in over up the millions guidance adjusted and the

Defender. that So Check through related investment investment of to incremental is most really the Fraud you'll see

today question And Sutton your George come Craig-Hallum. next will with from

welcome. on Nice board. to you Ed, have

first quarter sense moving a go engineers selling my we of we're solution certainly is last versus in we if next was the So of quarter, more Dave, those sale. to some We the in improvement are more It terms many identity, of deals challenge looking quarter this a the that from those some had platform there. of Can question ID give group, at looks a we of had back happen sales in in point happened for How R&D fiscal deals. in that we like of for seen the what what pushing? us just saw the you year?

on Obviously, We Yes. those kind In got saw focus decent especially products, biometric we relative on front. expected QX, all of made we what we changes you're some that point results our expectations. to right. to with that increase the

probably there the 'XX, that end we revenue in pushed believe don't of in that we with more of they're the sale said XX now the 'XX out had other We And was to starting multinational is would remember out just opportunities. large the months the it XXXX, that 'XX, back near lost of revenue if got take time. into that originally can think close companies a difficult the still XX that into into that last them. point land out to more to make were and were somewhere some in more 'XX related half the so get that Going we quite probably But range. we revenue to you call, we to necessarily pushed that few expected we wanted dollars

have So between represent XX% terms penetration but current than just XX% Defender, Ed, We opportunity? gave does of on an less numbers? statistic. in on that X%, give What us Check those your you checks, basically our of delta you data can is interesting sets mind the in the X Fraud

the the what are Well, in XX% is number the country. is it accounts, information believe the that being in really of number, data the sets of opportunity the we built on

and So more it's building information. of having that makes effect out valuable. effect network the much that just the it and it's the again, And more consortium, more network

and more also data So to the by asset get, everyone in having coming rich more that. more that the the institutions more contributing and we and benefits becomes

So it's early on.

XX% data country on in there that have fact in already yet the the The X% the country. being FIs I here of accounts now, we I think than -- we trying of the hey, to have is, point sets was less make in built the

outside not institutions checks It's So -- are the accounts are about the if that's consortium, consortium. there were were in who you that the deposited are also into necessarily that those ones it. but think are accounts it, that on in --

more So data sets, valuable. we build that's value, up just greater is everybody the network And why wins. very

And look opportunity opportunity? you do you. similar was a for this turnaround in, was different view wonderful as other and how or curious, Cardtronics the how great. thing at that this Got coming outcome you one I'm you. to be versus

It's great a question.

similarity with one reasons positions me I capability. strong and where in similarity, a and the there up here out growth from growth, the presence, is that right you maybe network now, and familiar and had relationships, strong saw a we presence is the organic moving effect, value, to international U.S. that's company the of double-digit particularly of there, build the network also to got financial the value the obviously, saw to and because is what which what we I'm the attracted those building the very did which footprint, institutions but drove the Cardtronics Just here. here see as is with of sitting what lot all

relationships are in and partner And want Mitek that's also I world. meeting positioned companies like very Obviously, who company enthusiastic very that and for and that by the a was organization team the the technical I of ] history face-to-face customers expertise couldn't with evolving capabilities the be capability for. then around because market inside, different solution. multiple relationships across the with getting the the well and an positioned and Assurance I just and the our but forefront of felt informed more countries operating with well people just But these the this a a is at partner need [ technical

Got you.

operating results million seeing the Dave, an Finally, at today. was why work, my down at know $X great to expenses all-time compliments XX%. margins hard look and that we that's I we're gross when high, service quarter-over-quarter and

So congratulations.

with Group question come today will Allen next your LLC. And Klee Maxim from

little that implying a your you've -- rest going That's to it's things. of touch do wanted there's much we have of the there. we the like you're impact implies stuff confidence increase seems a and But have that future? year-over-year. are I'm At on X% And in of see sure not a identity. your how mentioned assuming guidance grow with of the going negative to relatively down. not deposits deposits to that I'm flat to really I'm confused I second, a revenue -- is is. then up guidance, in it that midpoint the growth around And be going guidance. on why Defender Check the that couple margin to going why mean kind And

that. behind the give reasons could you If

upside that had lengthen in Allen. range the Thanks, terms of our to forecasting, decided little that into our We biometric be that there, last on Yes. to the we still confidence million-$XXX can that we bit, $XXX create would We us pretty of the the guidance. that we did but as side, see some a have million. from of end actually issues because range move year. have given opportunity have wanted that, we conservative We up the forecasting higher can you

the on We also opportunity MiVIP we about. pretty we're excited have which think platform,

pressure But and mild, to have we've talked headwind, it's but We ICAR don't enough difference right? that legacy Mobile forget, we have about continue. verification Verify, make our headwinds, the is which a document historically pricing will

of those kind it's on headwinds. So identity side, outpacing outpacing the

side, year in discipline to starting talked a together year-over-year, especially that we Check to and to of GAAP identity XXXX. do our able the this remember deposit when is mobile think, assuming actually, we're kind Fraud revenue, the we what On Defender and that to about both in that if of flattish deposit We XXXX start means get offset once get deposits growing that with it. terms lower grow into and XXXX, operating Ed accelerate, to see we'll focus

add and as to, sure the of relationships obviously, there solutions that you're would right midpoint on I this solutions, products the the we on organization I the opportunity earlier, has And for to hasn't where just on that. about with talked and And we driver side, continue growth. then laid execute we an about accelerate out to the have point the identity plan we're selling ardent who making sure is -- the building that products, can making out there, growth on. and organic focus as that the this And the

and aspire to continue are we continue So and growth. goals objectives that all our of to accelerate we'll

but Obviously, to to it. prudent that approach exit. the a here I'm take driving into and And we new double-digit you going updated year, 'XX. -- we how towards today, growth sitting going we're But into we'll We're throughout and keep it.

fiscal in of following revenue Mobile it heard -- can on I 'XX. did that get million was you you $XX.X when that what $XX thought based And that were -- question, see would is last maybe about, to million, thinking But sounds switch One over Identity say about how But like best Okay. just wrong? I identity. profitability. you're case am it to 'XX. on talking that I that in up we

our on $XX comments point, is believe million. million $XX the we fulcrum So -- the that, to

we're and to So says execute of that products we're yes, to of the $XX margin million we're turning there's would getting we contribution move that out from of XXXX let's against the to level that on it. this that, pulling And to what we to are year, achieve that accretive a take going where so that keep it. on need That's were posted executing -- of on focused deliver just terms into past those delta growth that positive midpoint. we in about and you

And period. see -- burdened that see going the or we We that to say any But you will also level changes of keep that positive would contribution into trajectory, we contribution. posted. negative is the yes, on 'XX fully a I

and G&A. that company's all overheads the general So includes

objective. that would say, burdened very, I approach a that's fully So a at

question And Surinder with from come Thind will Jefferies. today final your

multiyear kind end detail to with is as point? you integration like complex bit originally the be get I'll or turn it, more to journey program the a how to get Sometimes projects, than through. is year-long at target, a they about a you're most Is anticipated. And you into to lift these get I'd bit expect transformation of Ed, the Can out the you that of that journey? more when in a of it benefits? you can going where the a that call a through walk -- big that start sense question us this in

company how better gone have couple want through through a levers this to that drive what lot Absolutely, a to just sound geared But over and our organization. get gone biggest Again, enterprise to people you, is they The last on lot what we on organization focus plan having can. one executing the whole this are to. value we commented move against, the previous aligned for swiftly, having a I questions, has the would results we're clarity the to the value years. the tell I team of as of

having over now that, I of to these mentioned here. So programs, them clarity some and

integrating side, -- we're acquired, to were those going X, automation, AI algorithms getting we of are getting through in on needle used and X, sets making to improve getting more our sure of algorithms both the terms team getting identity running tune -- that the those platforms multiple automating or machine heritage data to continuing to learning the how our How the actually either taking from the company ones latest transactions the properly products margin drive level are geared sales and that towards have scalability.

organization. So it's just the gearing

we'll scaling about Mitek. they next opportunities. the clarity -- the and more see it's I fans margins I we is and overarching a goal think probably have are and on there towards and will push want evolve to make point raving lot organic and headway our of be guess to will year, where customers this for that growth into that more to having with is drive gearing But do organization more it things it year, but

reasonable projects can on you the But from the through we throw some not frame. industry, expensive, about help you see stack of integrated have product hear programs, solved cheap a these look an to of perspective actual need as these in that you of Because we execution get time obviously having well others a across that organic managing within get or Because tech definitely of are definitely they're How at the I what sense the lot part sometimes Understood. right? some when approach se. problem the per side. growth gone as equation? on will guys that of to also the bodies

is adjusted your is we cost expenses like things Or will managing numbers. out within see structure? you'll usually, somehow And you're so like see And anything the existing this that? of

redundancies And but may also would through of on outlined that's product the that we've have and actions, on investments. the some scale that incremental walk No, action in Frankly, already you, we the investing these I I'm investments incurred -- all outlined I future we guidance say, in not and that those and already. are taken or tell efficiencies the CFD that we to on the in Dave what this the on may not going predict these That's the company enhancements year. solution numbers. and incorporates

and that right to requires talk incremental would And those are that. so to if an feel But through something strong want those the we come based drive -- discuss we where from that's in an upside everything compelling that we we that that on about extremely numbers has along now, ROI results. investment,

the kind think to that. expense see is good then normalized of expect do question maybe the puts of all XQ assume component incremental And for that of that really When the here. cost actually kind takes on expenses levels then and numbers, to level and That's just the of savings we coming incorporated of here? I Obviously, guidance modest you, of this buildup on line. after Or the of in? fiscal we within the the Okay. a but kind at hear. about expense kind Is Dave,

happen what's about you Are -- going about more after to talking XXXX?

yes. correct, is That

get of out, guiding can can be we get We But see efficiencies, that. and we think Ed's can past if operating if on ahead execute think ourselves beyond what able start to 'XX. think should we I to don't expansion margin expansion. margin just Yes. we we laid We he certainly, plan, see what want

question Got that's reduction around I some some heard provide especially that, in that reduction modest this spend in additional Can here, of just identity investing I if to it. you you're level build? guess then when business And business. commentary -- final there the on was correctly, the the a color

Yes.

actually So this year. mention this is the spending about for did flat will slightly focus. and to for down identity products be the I fiscal that said that

is the that last results There's this years. lot couple want been drive think the over to we on I of And just of a investment a recognition. and results, performance.

cross-sell the that platforms. the is we there satisfaction that customer So sure we've to team, is can by there, these the to organization that the geared integrating the products experience making customer they're scaling

in and there, the we're in that's product. So investing

forefront Defender, We at right we Digital think now of the with just is which the based on announced frankly, what's market Fraud DFD, happening GenAI.

So back efficient, and where and we're drive to is and prudent growth the investing. to how productivity a -- with have be getting double-digit organic goal being

all interests So those and we're trying balance relationships. have to the

not So the actually it's focused, actually because experience side or able the or about achieve or innovation, concerned cost to the the it. we're I'm we're cuts customer opposite changes impacting

shareholder kind updated value. much. as combined year. discipline, growth that enhance your time. just right. All we're We've our as actions effective want you you I'm execution us very thank lot the exit we the thank Operator, This to information should to mentioned, for of with keep close for operating the going the and well here you for highly about as company. for making position growth We're milestones are that changes for today. covered we'll Well, prospects progress enthusiastic out focused sales outlined minute. a the as this to I a attractive towards And as organic on any necessary were taken quarterly of

And the next hopefully, you all XX, and some attending to last and Dave January look say, additionally, to will Conference forward there on be we'll be able of to meet in I I just in Growth Needham month. person

So till your and we for Great you then, Mitek. day. thank support you very thank much, of

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

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