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Mitek Systems' (MITK) CEO Jim DeBello on Q2 2016 Results - Earnings Call Transcript

Q2 2016 Earnings Conference Call

April 28, 2016 11:00 AM ET

Executives

Todd Kehrli – MKR Group

Jim DeBello – President and Chief Executive Officer

Russ Clark – Chief Financial Officer

Analysts

Bhavan Suri – William Blair

Mark Schappel – Benchmark

Mike Grondahl – Northland Securities

Darren Aftahi – Roth Capital

Operator

Ladies and gentlemen, thank you for standing by, and good day and welcome to the Mitek Second Quarter Fiscal Year 2016 Financial Results Conference. At this time, it’s my pleasure to turn the conference over to Mr. Todd Kehrli, MKR Group. Please go ahead sir.

Todd Kehrli

Thank you, operator. Good morning, and welcome to Mitek’s fiscal 2016 second quarter earnings conference call. With me on today’s call are Mitek’s President and CEO, Jim DeBello and CFO, Russ Clark. Before I turn the call over to Jim and Russ, I’d like to cover a few quick items. This morning, Mitek issued a press release announcing its fiscal 2016 second quarter financial results. That release is available on the company’s website at www.miteksystems.com. This call is being broadcast live over the Internet for all interested parties and the webcast will be archived on the Investor Relations page of the company’s website.

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

Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially. We encourage all of our listeners to review our SEC filings, including our most recent 10-K for a more complete description of these risks. Our statements on this call are made as of today, April 28, 2016 and the company undertakes no obligation to revise or update publicly any of the forward-looking statements contained herein, whether as a result of new information, future events, changes in expectations or otherwise for any reason.

Additionally, throughout this call, we will be discussing certain non-GAAP financial measures. Today’s earnings release and related current report on Form 8-K describe the differences between our non-GAAP and GAAP reporting and present the reconciliation between the two for the periods reported in the release.

With that said, I’ll now turn the call over to Mitek’s CEO, Jim DeBello. Jim?

Jim DeBello

Well thanks Todd, and good morning everyone. I'm happy to report our financial results for the second quarter, which included record revenue and strong profits. Our record revenue was driven by growth from our ID capture and verification platform, and our industry dominating, mobile check deposit solutions. With this market momentum, we believe we’re poised for continued growth throughout the remainder of the year. With over an estimated 80 million users in over 5,000 enterprises using our mobile capture solution for mobile check deposit, we’re leveraging this success to expand the scope of our business globally and address the multi-billion dollar identity capture and verification market.

During the quarter, we continued to make significant progress by adding several new customers across many different verticals, and significantly increasing our bookings and backlog for this new part of our business. Our new ID products will enable us to drive higher ASPs, while also increasing our mix of recurring revenue. We believe we have first mover advantage. Enterprises need our products to effectively address the shift to m-commerce that’s now being driven by millennials and other consumers in attractive market segments.