Mitek Systems, Inc. (NASDAQ:MITK) Q4 2022 Earnings Call Transcript

Max Carnecchia: Sure. Well, you know, Jake obviously NASDAQ was the market that we sit on, the SEC is the regulator, and being current with the SEC is the requirement for the NASDAQ. So NASDAQ has a very rigorous and structured process under which we’re currently working. I think we’re working at a very positive and constructive way with them but we’re late, right? So we’ve brought in advisors. As you mentioned at this point we have high confidence, based on the performance of our business. The fact that we are cash flow positive and cash in the bank. We continue to grow. There are no allegations of misconduct here. We have high confidence that we will regain that filing status. Hopefully the NASDAQ is the arbitrator, the ultimate arbitrator of that. But working hard towards it every day.

Jake Roberge: Very helpful. Thank you. Thanks for taking my questions.

Operator: The next question is from Stephanie Moore with Jefferies. Please go ahead.

Stephanie Moore: Hi, good afternoon, and thanks for the update. I wanted to touch on your targets for your ID segment and the target to turn a profit in 2024 the second half of 2024. Could you maybe talk a little bit about what you need to see for that target to be achieved, what needs to happen maybe is for that to happen earlier or on the flip side, what could delay you can actually achieving this target? It would be helpful. Thanks.

Max Carnecchia: Sure. Well, thanks for the questions, Stephanie. For those who maybe a little newer to the story, we’ve been working — we’ve got a very profitably deposits and we want to get our identity business to that as well. We’ve seen that by the end of fiscal 2024, we’d like to be able to get to breakeven with that business, with the identity business put that in isolation. And we believe we’re on path, but still the current is next year. The things that could make that happen sooner is the top line growth happening faster. The things that could make it takes longer is if we didn’t get the top line, that we’re currently forecasting that we’re guiding to here in the current guidance. When I kind of think about as we’ve laid those markers down and we’ve worked to operate the business both in our budgeting and then day-to-day discipline of living those budgets.

Probably the biggest thing is, the world has changed pretty considerably in the course of the last five quarters relative to just uncertainty in the macroeconomic circumstance. So I think that’s probably the biggest unknown or biggest question mark.

Stephanie Moore: Great, that’s really helpful and appreciate it. And I know that the last time we spoke a couple weeks ago, I think you touched a little bit about maybe within the ID business a slight shift in strategy where you’re offering your customers more of an end-to-end platform kind of managing their entire life cycle. Could you talk a little bit, I’d love to hear because I think it’s really an interesting point, if you could kind of speak to any cross-sell opportunities do you think this opens up or pricing or why this is you’ve kind of come to terms that this isn’t the incremental kind of right strategy versus maybe what you were originally thinking about as you are moving inside the space and I’d love to hear kind of the opportunity there. Thanks.