 Strong growth reflects critical nature of companys technology as commerce moves onlineSAN DIEGO, July 30, 2020 GLOBE NEWSWIRE -- Mitek NASDAQ: MITK, today reported record revenue with significant increases in both GAAP and non-GAAP net income for the fiscal third quarter ended June 30, 2020. Total revenue increased 16 year over year, fueled by an increase in demand for both mobile deposit and identity verification capabilities, as more people and businesses transact online. Fiscal Third Quarter 2020 Financial Highlights Total revenue increased 16 year over year to 25.4 million in a record quarter. GAAP net income was 1.3 million, or 0.03 per diluted share. Non-GAAP net income increased 43 year over year to 6.8 million, or 0.16 per diluted share. Cash flow from operations was 9.0 million. Total cash and investments were 52.2 million at the end of the fiscal third quarter.Commenting on the results, Max Carnecchia, CEO of Mitek, said:Our record revenue and strong financial performance demonstrate the benefits of our technology solutions in this rapidly shifting digital economy. We are committed to helping our customers and partners navigate the challenging environment as they accelerate their digital transformation.Mitek is committed to providing convenience while preventing fraud in the digital world. The companys technology ensures that more businesses can transact digitally and secure their platforms through easy, fast and secure identity verification. Also, Mitek remains the clear market leader with its remote check deposit solution, with more than 7,000 financial organizations using its products, and more than four billion transactions.Conference Call InformationMitek management will host a conference call and live webcast for analysts and investors today at 1:30 p.m. Pacific Time 4:30 p.m. Eastern Time to discuss the companys financial results.To access the live call, dial 800-437-2398 US and Canada or 1 856-344-9206 International and give the participant passcode 3328519.A live and archived webcast of the conference call will be accessible on the Investor Relations section of the companys website at In addition, a phone replay will be available approximately two hours following the end of the call, and it will remain available for one week. To access the call replay dial-in information, please click here.About MitekMitek NASDAQ: MITK is a global leader in mobile capture and digital identity verification built on the latest advancements in computer vision and artificial intelligence. Miteks identity verification solutions enable organizations to verify an individuals identity during digital transactions to reduce risk and meet regulatory requirements, while increasing revenue from digital channels. More than 7,500 organizations use Mitek to enable trust and convenience for mobile check deposit, new account opening and more. Mitek is based in San Diego, Calif., with offices across the U.S. and Europe. Learn more at MITK-FFollow Mitek on LinkedIn, Twitter and YouTube, and read Miteks latest blog posts here.Notice Regarding Forward-Looking StatementsStatements contained in this news release relating to the companys or managements intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the companys long-term prospects and market opportunities are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the companys ability to withstand negative conditions in the global economy, the extent to which the COVID-19 outbreak and measures taken in response thereto impact our business, results of operations and financial condition, a lack of demand for or market acceptance of the companys products, the companys ability to continue to develop, produce and introduce innovative new products in a timely manner or the outcome of any pending or threatened litigation and the timing of the implementation and launch of the companys products by the companys signed customers.Additional risks and uncertainties faced by the company are contained from time to time in the companys filings with the U.S. Securities and Exchange Commission SEC, including, but not limited to, the companys Annual Report on Form 10-K for the fiscal year ended September 30, 2019, and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SECs website at Collectively, these risks and uncertainties could cause the companys actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.Note Regarding Use of Non-GAAP Financial MeasuresThis news release contains non-GAAP financial measures for non-GAAP net income and non-GAAP net income per share that exclude stock compensation expenses, intellectual property litigation costs, acquisition-related costs and expenses, costs associated with our strategic process, executive transition costs, restructuring costs, income tax effect of pre-tax adjustments, and the cash tax difference. These financial measures are not calculated in accordance with generally accepted accounting principles GAAP and are not based on any comprehensive set of accounting rules or principles. In evaluating the companys performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the companys operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the companys ongoing operating performance. Further, management and the Board of Directors utilize these non-GAAP financial measures to gain a better understanding of the companys comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the companys GAAP financial statements, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the companys ongoing operating results, including results of operations against investor and analyst financial models, which helps identify trends in the companys underlying business and provides a better understanding of how management plans and measures the companys underlying business. MITEK SYSTEMS, INC. CONSOLIDATED BALANCE SHEETS Unaudited amounts in thousands except share data June 30, 2020 September 30, 2019 ASSETS Current assets: Cash and cash equivalents18,938 16,748 Short-term investments30,281 16,502 Accounts receivable, net12,943 14,938 Contract assets3,410 2,350 Prepaid expenses2,016 1,487 Other current assets1,454 2,105 Total current assets69,042 54,130 Long-term investments2,942 1,552 Property and equipment, net3,638 4,231 Right-of-use assets5,683 Goodwill and intangible assets54,400 57,041 Deferred income tax assets15,875 16,596 Other non-current assets5,647 2,347 Total assets157,227 135,897 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable4,304 3,555 Accrued payroll and related taxes7,375 6,410 Deferred revenue, current portion9,089 5,612 Lease liabilities, current portion1,651 Acquisition-related contingent consideration686 1,036 Restructuring accrual220 1,526 Other current liabilities942 1,909 Total current liabilities24,267 20,048 Deferred revenue, non-current portion1,240 736 Lease liabilities, non-current portion5,674 Deferred income tax liabilities5,699 5,555 Other non-current liabilities964 2,225 Total liabilities37,844 28,564 Stockholders equity: Preferred stock, 0.001 par value, 1,000,000 shares authorized, none issued and outstanding, as of June 30, 2020 and September 30, 2019 Common stock, 0.001 par value, 60,000,000 shares authorized, 41,282,779 and 40,367,456 issued and outstanding, as of June 30, 2020 and September 30, 2019, respectively41 40 Additional paid-in capital140,915 132,160 Accumulated other comprehensive loss2,581 4,061 Accumulated deficit18,992 20,806 Total stockholders equity119,383 107,333 Total liabilities and stockholders equity157,227 135,897 MITEK SYSTEMS, INC. 