The 5 Stocks That Stephen Perkins’ Toronado Partners Can’t Live Without

2. Mitek Systems, Inc. (NASDAQ:MITK)

Toronado Partners’ Stake Value: $37,784,000

Percentage of Toronado Partners’ 13F Portfolio: 13.28%

Number of Hedge Fund Holders: 18

Mitek Systems, Inc. (NASDAQ:MITK) is another software provider that has found a home in the 13F portfolio of Toronado Partners. 2.04 million MITK shares were owned by the fund on September 30, down by 11% quarter-over-quarter, as Mitek fell from being the fund’s former top stock pick to its second-largest holding.

Mitek Systems, Inc. (NASDAQ:MITK)’s digital identity verification revenue jumped by 30% year-over-year in its fiscal first quarter of 2022 for the period ended December 31 as a growing number of online platforms develop the need to verify their customers’ and users’ identities. Overall revenue climbed by 25% to $32.5 million, while non-GAAP net income soared by 65% to $10.2 million.

Mitek Systems, Inc. (NASDAQ:MITK) believes it has a huge untapped market for its biometric authentication methods, noting in its fiscal Q1 earnings call that a study it conducted in collaboration with PYMNTS found that over half of U.S consumers believe biometrics to be easier to use and more secure than traditional passwords or PINs, though just 10% of consumers currently use the technology.