SAN DIEGO - Mitek Systems , Inc. (NASDAQ: MITK ), a digital identity verification and fraud management company, saw its shares surge 19% in premarket trading Tuesday after reporting fourth-quarter earnings that significantly exceeded analyst expectations.

The company reported adjusted earnings per share of $0.33 for the quarter ended September 30, 2024, beating the analyst estimate of $0.17 by $0.16. Revenue for the quarter came in at $43.2 million, surpassing the consensus estimate of $41.3 million and marking a 15% increase YoY from $37.7 million in the same quarter last year.

Mitek's strong performance was driven by solid revenue growth, improved profitability, and efficient cash generation. CFO Dave Lyle stated, "We reported a solid quarter of year over year revenue growth, profitability and cash generation driven by our team's hard work and operational focus."

The company's adjusted EBITDA for the quarter was $15.4 million, compared to $5.9 million a year ago, with the adjusted EBITDA margin expanding to 36% from 16% in the prior year period.

Looking ahead, Mitek provided guidance for fiscal year 2025, projecting revenue between $170 million and $180 million. This range falls slightly below the analyst consensus of $179.5 million at the midpoint.

Ed West, Mitek's recently appointed CEO, commented on the company's positioning, saying, "By advancing our AI-driven solutions and expanding our fraud and identity detection capabilities, we are well positioned to address the growing fraud threats of the digital economy."

During the quarter, Mitek repurchased 1.4 million shares at an average price of $9.94 per share, totaling approximately $14.2 million. The company ended the quarter with $141.8 million in total cash and investments, an increase of $8.6 million from the previous quarter.

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