Mitek Systems’ Revenue by Segment (2016-2022)

Software and Hardware

Software and hardware revenue is generated from on-premise software license sales, sales of hardware scanner boxes, and on-premise appliance products. The majority of revenue generated comes from this segment. For software license agreements that are distinct, revenue is recognized upon delivery and after evidence of a contract existing. Hardware revenue is recognized when the product is shipped.

Software and hardware revenue increased by $5.9 million, or 11%, to $60.1 million in 2021 compared to $54.2 million in 2020. This increase is primarily due to an increase in sales of Mobile Deposit, ID_CLOUD, CheckReader, and IDLive Face software products. The increase was partially offset by a decrease in revenue from identity verification hardware products. 

• Mobile Deposit: It is used by Mitek’s consumers in the United States and Canada for mobile check deposits. It enables individuals and businesses to remotely deposit checks by taking photographs of the front and back of a check. This system is embedded within the financial institutions’ digital banking apps used by consumers and has now processed more than five billion check deposits. 
• ID_CLOUD: It is a fully automated identity verification solution that can be integrated into a customers’ application to instantly read and validate identity documents. Its automated technology enables global enterprises to improve their customer acquisition technology while meeting AML requirements safely and cost-effectively.
• CheckReader: It enables financial institutions to automatically extract data from checks once they have been scanned or photographed by the application. It is deployed within eight of the top ten U.S.-based banks, 90% of French and Brazilian Banks, and 100% of United Kingdom banks.
• IDLive Face: This technology helps in preventing fraud by using face biometrics for authentication and digital identity proofing.

Services and Others

Services and other revenue are generated from the sale of transactional SaaS products and services. It also includes maintenance associated with the sale of software and hardware, along with consulting and professional services. Mitek Systems recognizes services and other revenue over the period in which such services are performed. Their model typically includes an up-front fee and a periodic commitment from the customer that commences upon completion of the implementation through the remainder of the customer life.

If the up-front fee is not distinct, revenue is deferred until the date the customer commences use of their services. At such a point, the up-front fee is recognized ratably over the life of the customer arrangement. However, they do not view the signing of the contract or the provision of initial setup services as discrete earnings events.

On a YoY basis, revenue from Services and others increased by $2.82 million. This was a 22.3% increase as compared to a 4.6% QoQ increase. This growth was primarily due to continued growth in Mobile Verify transactional SaaS revenue, as well as an increase in Mobile Deposit transactional SaaS revenue.

About the Company

Mitek is an eminent innovator of mobile image capture and digital identity verification solution. They are a software development company with expertise in computer vision, artificial intelligence, and machine learning, serving more than 7,500 financial services organizations worldwide. To ensure a high level of security against evolving digital fraud threats, in May 2021, Mitek acquired ID R&D, an award-winning provider of AI-based voice and face biometrics and liveness detection. 

Mitek’s identity verification and authentication technology and services make it feasible for banks, financial services organizations, and others to verify an individual’s identity during digital transactions. This also allows them to reduce risk and meet regulatory requirements. 

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