Mitek Systems Inc (MITK) 2024 Q2 法說會逐字稿

Good day, and welcome to the Mitek fiscal 2024 second-quarter earnings conference call. (Operator Instructions)

美好的一天，歡迎參加 Mitek 2024 財年第二季財報電話會議。（操作員說明）

Please note this event is being recorded. I would now like to turn the conference over to Todd Kehrli, Investor Relations. Please go ahead.

請注意此事件正在被記錄。我現在想將會議交給投資者關係部門的 Todd Kehrli。請繼續。

Thank you, operator. Good afternoon, and welcome to Mitek's fiscal 2024 second-quarter earnings conference call. With me on today's call are Mitek's CEO, Max Carnecchia; CFO, Dave Lyle; and Chairman of the Board, Scott Carter.

謝謝你，接線生。下午好，歡迎參加 Mitek 2024 財年第二季財報電話會議。參加今天電話會議的有 Mitek 執行長 Max Carnecchia；財務長戴夫·萊爾；和董事會主席斯科特卡特。

Before I turn the call over to Mitek leadership, I'd like to cover a few quick items. Today, Mitek issued a press release announcing its financial results for its fiscal 2024 second quarter ended March 31, 2024. That release is available on the company's website at 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.

在將電話轉交給 Mitek 領導階層之前，我想先簡單介紹一些內容。今天，Mitek 發布新聞稿，公佈截至 2024 年 3 月 31 日的 2024 財年第二季財務業績。該版本可在該公司網站 miteksystems.com 上取得。此次電話會議將透過網路向所有有興趣的各方進行現場直播，網路廣播將存檔在公司網站的投資者關係頁面上。

I want to remind everyone that on today's call, management will discuss certain factors 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 the company's plans and expectations of future performance.

我想提醒大家，在今天的電話會議上，管理階層將討論可能影響未來業務的某些因素。今天討論的任何非歷史事實的因素，特別是有關我們的長期前景和市場機會的評論，都應被視為前瞻性陳述。這些前瞻性陳述可能包括有關公司計劃的評論和對未來業績的預期。

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 and 10-Q for a complete description of these risks. Our statements on this call are made as of today, May 13, 2024, 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.

前瞻性陳述受到許多風險和不確定性的影響，可能導致實際結果有重大差異。我們鼓勵所有聽眾查看我們向 SEC 提交的文件，包括我們最新的 10-K 和 10-Q，以完整描述這些風險。我們在本次電話會議上的聲明截至今天，2024 年 5 月 13 日，本公司沒有義務公開修改或更新此處包含的任何前瞻性聲明，無論是由於新資訊、未來事件、變化期望或其他。

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 GAAP and non-GAAP reporting and present the reconciliation between the two for the periods reported in the release.

此外，在整個電話會議中，我們將討論某些非公認會計準則財務指標。今天的收益發布和 8-K 表格中的相關當前報告描述了我們的 GAAP 和非 GAAP 報告之間的差異，並提供了發布中報告期間兩者之間的調整。

With that said, I'll now turn the call over to Mitek's Chairman, Scott Carter.

話雖如此，我現在將把電話轉給 Mitek 的董事長 Scott Carter。

Welcome, everyone, and thank you for joining us today. I'm the Chairman of the Board for Mitek and have served on the Mitek Board since February 2022. I'm joining the call today to talk to you about the press release the company issued this morning announcing the CEO transition.

歡迎大家，感謝您今天加入我們。我是 Mitek 董事會主席，自 2022 年 2 月起一直在 Mitek 董事會任職。我今天參加電話會議是為了與大家討論該公司今天早上發布的宣布執行長換屆的新聞稿。

In the press release, we announced that Max Carnecchia will transition from the business and his role as Mitek's CEO on May 31, 2024, but will remain a member of Mitek's Board of Directors and will be available to assist with the CEO transition process. Now that Mitek had successfully navigated through its delayed SEC filings and is well positioned to enter its next phase of growth, the Board of Directors determined that putting new leadership in place will provide the best path for that growth.

在新聞稿中，我們宣布 Max Carnecchia 將於 2024 年 5 月 31 日卸任 Mitek 首席執行官，但仍將擔任 Mitek 董事會成員，並將協助執行長過渡流程。現在，Mitek 已成功完成了延遲提交給 SEC 的文件，並已做好進入下一階段增長的準備，董事會確定新領導層的上任將為這一增長提供最佳途徑。

Before I go any further, let me express the Board's gratitude to Max. He has worked tirelessly and passionately on behalf of our team, our customers, and our shareholders. Also, I want to make sure to say that to the importance of any doubt, there have been no allegations of wrongdoing or improprieties. Rather, we've just finished a difficult chapter where we caught up on our SEC filings, regained Nasdaq compliance, announced the share repurchase program, and are now at an important inflection point.

在進一步討論之前，請允許我表達董事會對馬克斯的感謝。他代表我們的團隊、客戶和股東孜孜不倦、充滿熱情地工作。另外，我想確保指出，對於任何疑問的重要性，沒有任何不當行為或不當行為的指控。相反，我們剛剛完成了艱難的一章，我們趕上了美國證券交易委員會的文件，重新獲得了納斯達克的合規性，宣布了股票回購計劃，現在正處於一個重要的轉折點。

Our Board of Directors is enthusiastic about the opportunity ahead of Mitek and has strong conviction in what the company is capable of achieving, both in the near term and the long term. We have an obligation to regularly assess the leadership skills that will be required in the coming years and to stay ahead of that curve. As such we concluded that in order to achieve what we think is possible over the next couple years, a different success profile is required than what we needed six years ago.

我們的董事會對 Mitek 面臨的機會充滿熱情，並對公司近期和長期的目標充滿信心。我們有義務定期評估未來幾年所需的領導技能，並保持領先地位。因此，我們得出的結論是，為了在未來幾年實現我們認為可能實現的目標，我們需要與六年前不同的成功模式。

So much has changed. The market we operate in, the complexity and scale of our business, across geographic and vertical markets, product lines, use cases, and the potential to integrate transformational technology, particularly around AI. I can't emphasize enough what an exciting opportunity we have in front of us. We've become the market leader in voice and face biometrics wideness, well positioning us to lead the industry response to the rising problem of deepfakes and voice spoofs.

變化如此之大。我們所處的市場、業務的複雜性和規模、跨地域和垂直市場、產品線、用例以及整合變革技術（尤其是人工智慧方面）的潛力。我無法充分強調我們面前有多麼令人興奮的機會。我們已經成為語音和臉部生物識別廣泛領域的市場領導者，使我們能夠引領業界應對日益嚴重的深度造假和語音欺騙問題。

Our innovation engine continues to thrive. We've launched several new offerings. This includes our MiPass solution, combining voice and facial biometrics in a single transaction. It also includes Check Fraud Defender, or CFD, where we are gaining considerable market traction.

我們的創新引擎持續蓬勃發展。我們推出了多項新產品。這包括我們的 MiPass 解決方案，將語音和臉部生物辨識技術結合在一次交易中。它還包括 Check Fraud Defender（CFD），我們在該領域獲得了相當大的市場吸引力。

We also have new innovations in ID R&D technology that allow for our voice biometrics to authenticate payment transactions on a mobile device, which opens up several new avenues for growth. None of these technologies were in our portfolio six years ago.

我們在 ID 研發技術方面也有新的創新，使我們的語音生物辨識技術能夠驗證行動裝置上的支付交易，這開啟了多種新的成長途徑。六年前，這些技術都不在我們的產品組合中。

So we're at the beginning of a new and exciting chapter and embarking on an ambitious and promising journey. After six years, it will be healthy to inject new leadership in the company with fresh perspectives and new energy.

因此，我們正處於令人興奮的新篇章的開始，並踏上雄心勃勃、充滿希望的旅程。六年後，以新的視角和新的活力為公司注入新的領導層將是健康的。

Max will remain as CEO through the end of May and the Board have asked me to take over as Interim CEO after his departure to assist with a seamless transition while we conduct our search for a new permanent CEO. The Board has engaged with services of a leading global executive search firm and has commenced the search for a new CEO.

馬克斯將繼續擔任首席執行官直至五月底，董事會要求我在他離職後接任臨時首席執行官，以協助無縫過渡，同時我們正在尋找新的永久首席執行官。董事會已聘請一家全球領先的獵人頭公司提供服務，並已開始尋找新的執行長。

The profile we've developed for the new CEO emphasizes public company and domain expertise, along with the ability to enhance our strategic vision and drive operational execution. Moreover, the ability to foster high-performance collaborative culture and continue to develop a world-class team will remain a priority. While the Board conducts this search, I look forward to working with the leadership team and partners to continue strengthening our business and driving profitable growth through operational discipline and execution.

我們為新任執行長制定的履歷強調了上市公司和領域的專業知識，以及增強我們的策略願景和推動營運執行的能力。此外，培養高績效協作文化和持續培養世界級團隊的能力仍將是首要任務。在董事會進行此項搜尋的同時，我期待與領導團隊和合作夥伴合作，繼續加強我們的業務，並透過營運紀律和執行力推動獲利成長。

In my role as Executive Chairman in 2023, I was deeply involved in Mitek's operations and was engaged with our product and sales teams and many of our customers. So I have a company of specific background needed for continuity and performance optimization. I intend to leverage my CEO track record in the identity and fintech ecosystems to add value to Mitek out of the gate with a specific focus on accelerating profitable growth.

在 2023 年擔任執行董事長期間，我深入參與了 Mitek 的運營，並與我們的產品和銷售團隊以及許多客戶進行了接觸。因此，我擁有一家具有連續性和性能優化所需的特定背景的公司。我打算利用我的執行長在身分和金融科技生態系統中的業績記錄，為 Mitek 增加價值，特別關注加速獲利成長。

Mitek's recent product innovations including Check Fraud Defender, MiVIP, MiPass, and ID R&D biometrics are gaining market acceptance, positioning us well for continued profitable growth, which is why the Board also announced today that it's authorized a two-year share repurchase program of up to $50 million of Mitek common stock.

Mitek 最近的產品創新，包括Check Fraud Defender、MiVIP、MiPass 和ID R&D 生物識別技術，正在獲得市場認可，為我們的持續盈利增長做好了準備，這就是為什麼董事會今天還宣布批准一項為期兩年的股票回購計畫價值 5,000 萬美元的 Mitek 普通股。

The share repurchase plan reflects our confidence in our strategy for long-term profitable revenue growth and our belief that we can capitalize on the substantial market opportunities ahead for our new product offerings and delivering long-term shareholder value. With our strong balance sheet and cash flow, we can repurchase shares while maintaining sufficient cash resources to fund our operations and invest in growth opportunities.

股票回購計畫反映了我們對長期獲利性收入成長策略的信心，以及我們相信我們可以利用未來大量的市場機會提供新產品並提供長期股東價值。憑藉我們強大的資產負債表和現金流，我們可以回購股票，同時保持足夠的現金資源來為我們的營運提供資金並投資於成長機會。

Before I turn the call over to Max and Dave to take us through the business performance, I want to thank Mitek's finance, operations, and legal teams for your extraordinary work in getting us back on track with our filings. We're very happy to get back to our normal cadence of reporting on time.

在我將電話轉給 Max 和 Dave 來介紹我們的業務績效之前，我要感謝 Mitek 的財務、營運和法律團隊所做的出色工作，讓我們的備案工作重回正軌。我們很高興能夠恢復按時報告的正常節奏。

With that, I will turn the call over to Max to update you on Mitek's progress this quarter.

接下來，我將把電話轉給 Max，向您介紹 Mitek 本季的最新進展。

Thank you, Scott, and thank you, Mitek nation, for the privilege to lead this organization over the last six years. Together, we've achieved a lot and grown this business into one of the leading identity and fraud authorities in the markets we serve.

謝謝你，史考特，也謝謝你，米特克國家，謝謝你在過去六年有幸領導這個組織。我們共同取得了巨大成就，並將該業務發展成為我們所服務的市場中領先的身份和反詐騙機構之一。

It is my pleasure to talk with you all today about how we continue to meet our customers' needs and grow our fraud prevention businesses in the second quarter and the bright future ahead for Mitek. I'll then hand the call over to Dave, who'll discuss our financial results and outlook.

今天我很高興與大家談論我們如何在第二季度繼續滿足客戶的需求並發展我們的防詐欺業務以及 Mitek 的光明未來。然後我會將電話轉交給戴夫，他將討論我們的財務表現和前景。

At Mitek, it has always been about mission, which is to advocate for yes, to help our customers say yes to more good customers, more deposits, and more transactions with increased intelligence and customer safety. Never has this important mission been more relevant.

在 Mitek，它始終圍繞著使命，即倡導“是”，幫助我們的客戶對更多優質客戶、更多存款和更多交易說“是”，同時提高情報和客戶安全性。這項重要使命從未如此重要。

In a world where GenAI is enabling digital transformation at a record pace, the imperative to aid banks in their fight against fraud while protecting their users has never been more pressing. With the dramatic surge in digital transaction volumes and the growing audacity of fraudsters, the challenge has reached unprecedented levels. The global adoption of GenAI has only exacerbated this situation leading to a surge in fraudulent activities across all channels, be it online, mobile or in-person transactions.

在 GenAI 以創紀錄的速度實現數位轉型的世界中，幫助銀行打擊詐欺並保護其用戶的必要性變得前所未有的緊迫。隨著數位交易量的急劇增加和詐欺者的膽大妄為，這項挑戰達到了前所未有的水平。GenAI 的全球採用只會加劇這種情況，導致所有管道（無論是線上、行動或實體交易）的詐騙活動激增。

This trend is reflected in our results through increased consumption of our fraud management solutions. New and existing customers are expanding usage or rolling out new use cases as fraud creeps into new channels across their businesses.

這一趨勢透過詐欺管理解決方案消耗的增加反映在我們的業績中。隨著詐欺行為滲透到其業務的新管道，新客戶和現有客戶正在擴大使用範圍或推出新的用例。

So let's break it down a little further starting with identity. Our MiVIP platform is now processing millions of transactions each month for customers across geographic markets. This data gives us insights into behaviors, fraud trends, and the impact of our solutions enabling us to innovate and provide answers to the most current threats.

那麼讓我們從身份開始進一步分解它。我們的 MiVIP 平台現在每月為跨地域市場的客戶處理數百萬筆交易。這些數據使我們能夠深入了解行為、詐欺趨勢以及解決方案的影響，使我們能夠創新並針對最新威脅提供答案。

This quarter, we launched critical use case functionality for injection attack detection and uninterrupted web streaming video. Both threats have evolved rapidly due to the advances in generative AI.

本季度，我們推出了用於注入攻擊偵測和不間斷網路串流影片的關鍵用例功能。由於生成人工智慧的進步，這兩種威脅都迅速演變。

Injection attacks are on the rise. This type of attack involves using face swap videos to trick online verification systems. Advances in Gen AI have made face swaps more believable, and hackers are now submitting manipulated videos to verification systems by digitally injecting the video. These deepfakes are quickly evolving type of synthetic media used for a variety of nefarious purposes, including spoofing facial recognition algorithms.

注入攻擊呈上升趨勢。此類攻擊涉及使用換臉影片來欺騙線上驗證系統。Gen AI 的進步使人臉交換變得更加可信，駭客現在透過數位注入視訊的方式將經過操縱的視訊提交給驗證系統。這些深度偽造品是快速發展的合成媒體類型，用於各種邪惡目的，包括欺騙臉部辨識演算法。

According to the Idiap Research Institute, 95% of facial recognition systems cannot detect deepfakes. So organizations are rapidly searching for effective liveness solutions. This is where Mitek MiPass solution stands out, as the first truly multi-modal biometric solution that captures four essential points of security, face match, face liveness, voice match, and voice liveness. It provides our customers with the advanced biometric authentication they require that also meets their end-user demand for effortless usage.

根據 Idiap 研究所的數據，95% 的臉部辨識系統無法偵測深度偽造品。因此，組織正在迅速尋找有效的活力解決方案。這就是 Mitek MiPass 解決方案的突出之處，它是第一個真正的多模式生物辨識解決方案，捕捉了安全性、臉部匹配、臉部活躍度、語音匹配和語音活躍度四個基本點。它為我們的客戶提供了他們所需的高級生物識別身份驗證，同時也滿足了最終用戶輕鬆使用的需求。

Customers are using MiPass to replace passwords and one-time passcodes. They use it for a stringent layer of defense for large value transactions, and most popular this quarter, MiPass is being used in conjunction with MiVIP in retail stores to aid retail assistance in approving transactions with confidence. From banks fortifying in branch security to auto rental companies seeking dedicated kiosk protection during pickup to a wireless service provider navigating the challenges of in-store transactions, MiPass offers customers an integrated omnichannel solution that not only safeguards transactions but enhances the overall user experience.

客戶正在使用 MiPass 來替換密碼和一次性密碼。他們使用它為大額交易提供嚴格的防禦層，本季最受歡迎的 MiPass 與零售商店中的 MiVIP 結合使用，以幫助零售協助信心十足地批准交易。從加強分行安全的銀行到在提貨過程中尋求專用資訊亭保護的汽車租賃公司，再到應對店內交易挑戰的無線服務提供商，MiPass 為客戶提供了整合的全通路解決方案，不僅可以保護交易，還可以增強整體使用者體驗。

The importance of protecting biometric security from deepfakes and injection attacks cannot be overstated. Continuous authentication has become a focal point in this landscape. It ensures that user’s identity is constantly verified throughout a session mitigating risks associated with unauthorized access. The market opportunity for biometric authentication is projected to grow at a CAGR of over 10% from 2024 to 2032, to reach more than $60 billion in annual spend by 2032.

保護生物辨識安全免受深度造假和注入攻擊的重要性怎麼強調也不為過。持續身份驗證已成為這一領域的焦點。它確保在整個會話過程中不斷驗證使用者的身份，從而降低與未經授權的存取相關的風險。預計從 2024 年到 2032 年，生物辨識認證的市場機會將以超過 10% 的複合年增長率成長，到 2032 年年支出將超過 600 億美元。

MiPass is a tangible example of Mitek's best-in-class biometrics authentication offering and a key differentiator from our competitors. We see MiPass as another strong growth engine for Mitek. And while it is in the nascent stage of its growth, we are very excited about the opportunity MiPass has to be a winning solution in the biometric authentication market.

MiPass 是 Mitek 一流的生物辨識認證產品的具體範例，也是我們區別於競爭對手的關鍵因素。我們將 MiPass 視為 Mitek 的另一個強勁成長引擎。雖然 MiPass 正處於發展的初期階段，但我們對 MiPass 有機會成為生物辨識認證市場的勝利解決方案感到非常興奮。

Moving to our deposits business. Our second-quarter revenue returned to growth driven by mobile deposit reorders. We continue to see increased adoption of our industry-leading solution as the number of checks being deposited through mobile check deposit continues to increase. We are riding the wave of mobile check deposit up, not the trend of check writing down.

轉向我們的存款業務。在行動存款重新下單的推動下，我們第二季的營收恢復了成長。隨著透過行動支票存款存入的支票數量不斷增加，我們行業領先的解決方案的採用率不斷增加。我們正乘著行動支票存款上升的浪潮，而不是支票減記的趨勢。

Check Fraud Defender is another one of our growth engines that we are extremely excited about. During the second quarter, we continued to see momentum build with strong market demand for this new solution. CFD is uniquely built to visually detect check fraud, which is easily missed by traditional fraud prevention protocols.

Check Fraud Defender 是另一個我們感到非常興奮的成長引擎。在第二季度，我們繼續看到這項新解決方案的強勁市場需求勢頭增強。CFD 專門用於直觀地檢測支票欺詐，而傳統欺詐預防協議很容易錯過這一點。

In 2023, check fraud was the largest year-over-year fraud increase for US financial institutions, comprising 31% of all fraud dollar losses according to the Federal Reserve. As these check fraud rates continue to surge, Check Fraud Defender provides financial institutions with a highly effective defense system powered by AI and securely hosted in the cloud.

根據聯準會的數據，2023 年，支票詐欺是美國金融機構詐欺增幅最大的一年，佔所有詐欺美元損失的 31%。隨著這些支票詐欺率持續飆升，Check Fraud Defender 為金融機構提供了一個由人工智慧支援並安全託管在雲端的高效防禦系統。

Our CFD value proposition continues to resonate as we closed several new CFD customers during the quarter through our direct sales, which is focused on the top 200 banks in the US, and through the channel, which we have just started to build out and will focus on the remaining long tail of US financial institutions.

我們的差價合約價值主張繼續引起共鳴，本季度我們透過直接銷售（主要針對美國 200 家銀行）和管道（我們剛開始建立並將重點關注）關閉了幾家新的差價合約客戶關於美國金融機構剩餘的長尾。

To highlight the early momentum we are seeing on the partner front, one of our channel partners already has over 20 opportunities in their Q3 pipeline, and we are actively working on adding more channel partners for CFD as we strive to become the leading provider in the growing check fraud prevention market.

為了強調我們在合作夥伴方面看到的早期勢頭，我們的一個通路合作夥伴在其第三季管道中已經擁有20 多個機會，我們正在積極努力為CFD 添加更多通路合作夥伴，因為我們努力成為該領域的領先提供者不斷增長的支票詐欺預防市場。

To that point, one of our newest technology partners on the check fraud side is Viewpointe, a leading managed content service provider handling billions of documents, including historical check images for some of the world's largest financial firms. They are recognized as one of the largest service providers to regulated industries. This partnership will allow mutual customers to enhance their fraud detection capabilities and start fighting check fraud faster.

就這一點而言，我們在支票詐欺方面的最新技術合作夥伴之一是Viewpointe，這是一家領先的託管內容服務提供商，處理數十億份文檔，包括世界上最大的金融公司的歷史支票圖像。他們被公認為受監管行業最大的服務提供者之一。此次合作將使共同客戶能夠增強詐欺偵測能力，並更快打擊支票詐欺。

Once integrated, Viewpointe customers looking to deploy Check Fraud Defender will be able to leverage their existing secure Viewpointe connectivity by flipping the CFD switch.

整合後，希望部署 Check Fraud Defender 的 Viewpointe 客戶將能夠透過翻轉 CFD 開關來利用其現有的安全 Viewpointe 連線。

Even though we are just scratching the surface of the CFD opportunity, we are already processing tens of millions of transactions per month, and we have information from over 300 financial institutions in our consortium models. The velocity of the consortium, coupled with the significant dollar savings from losses in fraud prevention and the operational cost savings of the solution, is yielding a very healthy and growing pipeline of potential CFD customers.

儘管我們剛剛觸及差價合約機會的表面，但我們每月已經處理數千萬筆交易，並且我們的聯盟模型中擁有來自 300 多家金融機構的資訊。該聯盟的速度，加上詐欺預防損失帶來的大量資金節省以及解決方案營運成本的節省，正在產生一個非常健康且不斷增長的潛在差價合約客戶管道。

Looking ahead, these are exciting times at Mitek. We have developed several significant growth opportunities with CFD, MiVIP, biometrics liveness, and MiPass. And while they are still in their nascent stage of growth today, each represents tremendous upside for Mitek and our shareholders.

展望未來，Mitek 正處於激動人心的時刻。我們透過 CFD、MiVIP、生物識別活性和 MiPass 開發了多個重要的成長機會。雖然它們目前仍處於發展的初期階段，但每一個都為 Mitek 和我們的股東帶來了巨大的優勢。

Before I turn the call over to Dave, I want to commend all Mitekians again for their hard work this quarter and over the last six years. Your execution and discipline across the business, coupled with the very positive customer feedback we are receiving, give me strong conviction in the opportunities that the company has in front of it.

在將電話轉給 Dave 之前，我想再次讚揚所有 Mitekians 在本季度以及過去六年中的辛勤工作。你們在整個業務中的執行力和紀律，加上我們收到的非常正面的客戶回饋，讓我對公司面臨的機會充滿信心。

With that, I'll turn the call over to Dave to discuss the second-quarter financial results in more detail. Following Dave's remarks, we'll open the call up for questions. Dave, over to you.

接下來，我將把電話轉給戴夫，更詳細地討論第二季的財務表現。戴夫發表講話後，我們將開始提問。戴夫，交給你了。

Thanks, Max. I'll begin by taking you through the fiscal Q2 2024 financial results and then comment on our outlook.

謝謝，馬克斯。我將先向您介紹 2024 年第二財季的財務業績，然後再評論我們的前景。

Looking first at revenue, top-line revenue for fiscal Q2 increased 2% year over year to $47 million at the top end of our previously announced preliminary revenue range of $46 million to $47 million.

首先看收入，第二財季的營收年增 2%，達到 4,700 萬美元，處於我們先前宣布的初步收入範圍 4,600 萬美元至 4,700 萬美元的上限。

We saw a solid year-over-year growth from our new identity products such as MiVIP, MiPass, and ID R&D biometrics, but that growth was offset by our heritage identity products revenue, such as Mobile Verify, where, as we said last quarter, we are seeing lower revenue as we shift more of these transactions from agent review to automated review. Our automated solutions are priced lower than agent transactions. However, these transactions are more profitable and are contributing to our efforts to get our identity products to profitability in fiscal Q4 2024.

我們看到 MiVIP、MiPass 和 ID R&D 生物識別等新身份產品實現了穩健的同比增長，但這種增長被我們的傳統身份產品收入所抵消，例如 Mobile verify，正如我們上季度所說，隨著我們將更多的交易從代理審核轉向自動審核，我們看到收入下降。我們的自動化解決方案的價格低於代理商交易。然而，這些交易的利潤更高，有助於我們努力讓我們的身份產品在 2024 財年第四季獲利。

In addition, we've seen some desperate pricing strategies from some of our identity competitors, which has created some additional pricing pressure with our heritage document verification systems. Mobile Deposit's orders rebounded during the quarter, which we expected, but did not generate significant growth due to last year's second quarter being one of Mobile Deposit's strongest quarters in the company's history. Check Fraud Defender also contributed to year-over-year revenue growth.

此外，我們也看到一些身分競爭對手採取了一些絕望的定價策略，這給我們的遺產文件驗證系統帶來了一些額外的定價壓力。Mobile Deposit 的訂單在本季出現反彈，這符合我們的預期，但由於去年第二季是 Mobile Deposit 公司史上最強勁的季度之一，因此並未產生顯著成長。Check Fraud Defender 也為年收入成長做出了貢獻。

Software and hardware revenue declined 1% to $24.9 million in fiscal Q2 2024. Services and other revenue grew 6% to $22.1 million year over year as we saw increases in transactional SaaS revenue from identity product revenue growth.

2024 財年第二季軟體和硬體營收下降 1%，至 2,490 萬美元。服務和其他收入年增 6%，達到 2,210 萬美元，因為我們看到身分識別產品收入成長帶來了交易 SaaS 收入的成長。

Deposits revenue grew 3% year over year in fiscal Q2 2024 to $29.5 million. 76% of deposits revenue was in Mitek software and hardware revenue, and 24% was in services and other revenue. Identity revenue for the second fiscal quarter grew 1% year over year to $17.5 million, driven by our SaaS products revenue. Approximately 14% of identity revenue was in Mitek software and hardware revenue and 86% was in service and other revenue for the second quarter of fiscal year '24.

2024 財年第二季的存款收入年增 3%，達到 2,950 萬美元。存款收入的 76% 來自 Mitek 軟體和硬體收入，24% 來自服務和其他收入。在我們的 SaaS 產品收入的推動下，第二財季的身份收入年增 1%，達到 1,750 萬美元。24 財年第二季度，約 14% 的識別收入來自 Mitek 軟體和硬體收入，86% 來自服務和其他收入。

Moving on to gross margin. The total gross margin for fiscal Q2 '24 was the same as a year ago at 87%. We continue to deliver strong software and hardware gross margin of close to 100% for fiscal Q2 '24. While on services and other revenue, our gross margin was 72%, both similar to a year ago.

轉向毛利率。2024 年第二財季的總毛利率與去年同期相同，為 87%。我們繼續在 2024 年第二財季提供接近 100% 的強勁軟體和硬體毛利率。在服務和其他收入方面，我們的毛利率為 72%，與一年前相似。

GAAP operating expense for fiscal Q2 '24 was $40.1 million compared to $31.5 million a year ago, with the increase primarily driven by fees associated with our delayed SEC filings.

24 年第二季的 GAAP 營運費用為 4,010 萬美元，而去年同期為 3,150 萬美元，成長主要是由於我們延遲向 SEC 提交文件相關的費用。

Non-GAAP operating expense for fiscal Q2 '24 was $27.9 million compared to $22.7 million last year and up sequentially from $25.8 million in Q1 '24. The year-over-year increase in non-GAAP operating expense was primarily related to fees associated with our delayed filings. The $2.1 million sequential increase in non-GAAP operating expense was due mainly to higher personnel costs associated with merit increases and calendar year reset of vacation accruals and payroll taxes.

2024 年第二季的非公認會計準則營運費用為 2,790 萬美元，去年為 2,270 萬美元，環比也高於 24 年第一季的 2,580 萬美元。非公認會計準則營運費用的年增率主要與我們延遲提交文件相關的費用有關。非 GAAP 營運費用較上季增加 210 萬美元，主要是由於與績效成長以及假期應計費用和工資稅的日曆年重置相關的人員成本增加。

Excluded from our non-GAAP operating expense was $12.1 million of non-recurring items, of which $7.7 million were non-cash accounting items and $4.4 million were cash items. The non-cash items were comprised of amortization of purchased intangibles and stock-based compensation expense.

我們的非公認會計準則營運費用中不包括 1,210 萬美元的非經常性項目，其中 770 萬美元是非現金會計項目，440 萬美元是現金項目。非現金項目包括購買無形資產的攤銷和股票補償費用。

The cash items were primarily comprised of about $2.4 million in non-recurring product fees, $560,000 in executive transition costs, $530,000 in restructuring costs associated with shutting down our legal entity in Russia, and other various legal costs. Please see our earnings release for a more detailed reconciliation.

現金項目主要包括約 240 萬美元的非經常性產品費用、56 萬美元的高階主管過渡費用、與關閉我們在俄羅斯的法人實體相關的 53 萬美元的重組費用以及其他各種法律費用。請參閱我們的收益發布，以了解更詳細的對帳資訊。

Our non-GAAP operating income was $12.8 million in fiscal Q2 '24, or a non-GAAP operating margin of 27%. Again, please see our earnings release for a more detailed GAAP to non-GAAP reconciliation. GAAP net income for fiscal Q2 '24 was $0.3 million, or $0.01 per diluted share on 48 million shares. And non-GAAP net income was $11.5 million, or $0.24 per diluted share.

2024 年第二財季，我們的非 GAAP 營業收入為 1,280 萬美元，非 GAAP 營業利潤率為 27%。同樣，請參閱我們的收益報告，以了解更詳細的 GAAP 與非 GAAP 調整表。24 年第 2 財季的 GAAP 淨利為 30 萬美元，即 4,800 萬股稀釋後每股收益 0.01 美元。非 GAAP 淨利為 1,150 萬美元，或攤薄後每股收益 0.24 美元。

Turning to our balance sheet, our cash and investments of $130.3 million was increased $6.4 million sequentially from Q1.

就我們的資產負債表而言，我們的現金和投資為 1.303 億美元，比第一季連續增加了 640 萬美元。

Moving on to guidance. We are reiterating our fiscal year 2024 revenue guidance range of $180 million to $185 million. We are also reiterating our guidance for fiscal year 2024 non-GAAP operating margin to be in the range of 30% to 31%, which implies an increased margin in the second half of the fiscal year, with much of the margin expansion above the guided range in fiscal Q4 as we begin to see G&A expenses normalizing following heavier expenses related to getting SEC filings current in prior periods.

繼續指導。我們重申 2024 財年的營收指引範圍為 1.8 億至 1.85 億美元。我們也重申，我們對 2024 財年非 GAAP 營業利潤率的指引為 30% 至 31%，這意味著本財年下半年的利潤率將有所增加，其中大部分利潤率擴張均高於指引值由於我們開始看到G&A 費用在第四財季的範圍內正常化，繼前一時期與向SEC 提交最新文件相關的費用增加之後。

In fiscal Q4, we expect non-GAAP G&A expense to begin to normalize and to be in the range of $8.5 million, but may fluctuate depending on circumstances in that quarter. We also continue to expect our identity business to reach standalone profitability on a fully burdened basis in the fiscal fourth quarter.

在第四財季，我們預計非 GAAP G&A 費用將開始正常化並在 850 萬美元的範圍內，但可能會根據該季度的情況而波動。我們也繼續預期我們的身分業務將在第四財季在滿負荷的基礎上實現獨立盈利。

Before I conclude, I'd like to briefly comment on capital allocation. As you saw in today's release, our Board of Directors authorized a two-year share repurchase plan for up to $50 million of our common stock. Although, we will not disclose our trading strategy, the first window available for us to trade will be Thursday, May 16.

在結束之前，我想先簡單談談資本配置。正如您在今天的新聞稿中看到的，我們的董事會批准了一項為期兩年的股票回購計劃，回購金額高達 5000 萬美元的普通股。雖然我們不會透露我們的交易策略，但我們可以進行交易的第一個窗口將是 5 月 16 日星期四。

As we thought through our repurchase plan options, we determined that for now, we wanted to keep open the ability to repay our $155.3 million principal amount of convertible debt in cash when it's due on February 1, 2026. With our cash balance at $130.3 million at March 31, 2024 and an expectation that we will continue to generate cash through that due date, we also want to have sufficient minimum cash, along with our revolving line of credit for working capital purposes.

在考慮回購計畫選項時，我們確定，目前我們希望能夠在 2026 年 2 月 1 日到期時以現金償還 1.553 億美元的可轉換債務本金。截至2024 年3 月31 日，我們的現金餘額為1.303 億美元，並且預計我們將在該到期日之前繼續產生現金，因此我們還希望擁有足夠的最低現金，以及用於營運資金目的的循環信貸額度。

Our approach considers that we have several new growth products beginning to ramp up from their nascent stage into the accelerated growth stage, and we need to see how that growth plays out. We believe we will have much better clarity about how much cash flow those products will provide over the coming year. In the meantime, our current focus is to continue to invest excess cash flow in our growth products, Check Fraud Defender, ID R&D biometrics, in particular, liveness capabilities, and MiPass and MiVIP, as well as follow-on products that can expand our current market opportunity.

我們的方法認為，我們有幾種新的成長產品開始從萌芽階段進入加速成長階段，我們需要看看這種成長如何發揮作用。我們相信，我們將更清楚地了解這些產品在未來一年將提供多少現金流。同時，我們目前的重點是繼續將多餘的現金流量投資於我們的成長產品、Check Fraud Defender、ID 研發生物識別技術，特別是活性功能、MiPass 和 MiVIP，以及可以擴展我們業務的後續產品。當前的市場機會。

We will also continue to invest to optimize our product cost structure to maximize margin expansion opportunities. In terms of growth through acquisitions, we believe we have sufficient growth opportunities with our organic product portfolio and do not foresee embarking on acquisitions in the near term.

我們也將繼續投資優化我們的產品成本結構，以最大限度地提高利潤擴張機會。在透過收購實現成長方面，我們相信我們的有機產品組合有足夠的成長機會，並且預計短期內不會開始收購。

Now, I would like to briefly touch on where we are with our SEC filings. 10-Q for fiscal Q2 2024 filed last Friday will remain current and expect to file our fiscal Q3 '24 filing on time in August as we are now back on a normal filing pace.

現在，我想簡要介紹一下我們向 SEC 提交的文件的進展。上週五提交的 2024 年第 2 財季第 10 季報告將保持最新狀態，並預計將在 8 月按時提交 2024 年第 3 財季的文件，因為我們現在已恢復正常的提交速度。

And lastly, I want to say thank you to Max. We built a very strong partnership very quickly, and I have thoroughly enjoyed working with you to advance Mitek forward. You operate with the highest degree of integrity, professionalism and respect. And on a personal level, I am sad to see you go.

最後，我想對馬克斯表示感謝。我們很快就建立了非常牢固的合作夥伴關係，我非常高興與您一起推動 Mitek 向前發展。您以最高程度的誠信、專業和尊重開展業務。就我個人而言，我很遺憾看到你離開。

Operator, that concludes our prepared remarks. Please open the line for questions.

接線員，我們準備好的發言到此結束。請打開提問專線。

(Operator Instructions) Mike Grondahl, Northland Securities.

（操作員指示）Mike Grondahl，北國證券。

Hey, thanks, guys. And I'll say too, we'll definitely miss you Max. That's for sure.

嘿，謝謝，夥計們。我還要說，我們一定會想念你的，麥克斯。這是肯定的。

A couple of questions for Scott. Scott, are you in the running for the full-time CEO role? And two, do you anticipate any change in strategy going forward? And maybe lastly, I'd just like to hear your opinion on the Check Fraud Defender product.

有幾個問題要問斯科特。史考特，您正在競選全職執行長一職嗎？第二，您預期未來的策略會發生任何變化嗎？也許最後，我想聽聽您對 Check Fraud Defender 產品的看法。

Yeah, absolutely. Mike, I appreciate the question. First of all, as I said in the script, I am very passionate about the opportunities at Mitek. I know the team is an incredibly talented team very well, the products, our market leading position.

是的，絕對是。麥克，我很欣賞這個問題。首先，正如我在劇本中所說，我對 Mitek 的機會充滿熱情。我知道這個團隊是一個非常有才華的團隊，我們的產品，我們的市場領先地位。

While I am in the interim CEO role, I will be all in. I'm not a candidate for the permanent CEO role. I've got personal family considerations that preclude me from making a permanent commitment. But you can count on me being all in and fully dedicated helping the team on top this incredible opportunity we have in front of us.

當我擔任臨時執行長時，我將全力以赴。我不是永久首席執行官職位的候選人。我個人的家庭考量使我無法做出永久的承諾。但你可以相信我會全力以赴，全心全意地幫助團隊抓住我們面前的這個難以置信的機會。

In terms of the -- I think your second question was around strategy. We are -- we've got, again, a terrific team in place. We feel confident in our current strategy. We, of course, have a normal kind of annual planning process, which we're actually kicking off very shortly. So we'll go through the process of refreshing our strategic plan that we're cascading through our annual operating plan.

就——我認為你的第二個問題是關於策略的。我們再次擁有一支出色的團隊。我們對當前的戰略充滿信心。當然，我們有正常的年度規劃流程，實際上我們很快就會啟動。因此，我們將經歷更新我們的策略計劃的過程，我們正在透過我們的年度營運計劃串聯該計劃。

We'll then, of course, look at to what extent we might reallocate OpEx and headcount and focus and so forth to align with where the greatest opportunities are for us to drive growth acceleration and increased contribution margin, and that's a process we have to go through. Again, we've got just fantastic world-class products. To me, it's about execution.

當然，然後我們會考慮在多大程度上可以重新分配營運支出、員工數量和重點等，以適應我們推動成長加速和增加邊際貢獻的最大機會，這是我們必須經過的過程。再說一遍，我們擁有出色的世界級產品。對我來說，這就是執行力。

How do you feel about CFD?

您對差價合約有何看法？

CFD, yeah, thank you. CFD is just remarkable. I had a chance when I was in the Executive Chairman role last year, given my background and my familiarity of the ecosystem, relationships I have with C-level executives in our client organizations. I went out and talk to C-level executives and I was told that there's no one else that can pull this together, but you are.

CFD，是的，謝謝。CFD 非常出色。鑑於我的背景、對生態系統的熟悉程度以及我與客戶組織中 C 級管理人員的關係，去年我擔任執行主席時有機會。我出去與 C 級高管交談，他們告訴我，沒有其他人可以做到這一點，但你可以。

Check fraud is a massive problem, as we've talked about many times. We have a very unique set of capabilities that no one else could possibly replicate. And if you think about not only the heritage and computer vision and machine learning and looking at anomaly detection on the check, by virtue of our orchestration platform now, through the HooYu acquisition, we have the ability to syndicate other fraud and any signals. And the integration of that has substantially -- has helped us sort of catalyze, if you will, the adoption of reduced sales cycles.

正如我們多次討論的那樣，支票詐欺是一個大問題。我們擁有一套非常獨特的能力，其他人無法複製。如果你不僅考慮傳統、電腦視覺和機器學習，並考慮支票上的異常檢測，那麼憑藉我們現在的編排平台，透過收購HooYu，我們有能力聯合其他詐欺和任何訊號。如果你願意的話，這種整合在很大程度上幫助我們促進了縮短銷售週期的採用。

So again, there's a nice set of assets across our portfolio. They're coming together to solve that problem in a way that no one else possibly could.

再說一遍，我們的投資組合中有很多不錯的資產。他們齊心協力，以其他人無法做到的方式解決這個問題。

Got it. Then maybe just a quick follow-up for Dave. Dave, G&A expenses are up quite a bit. They're about 20% of revenue now, up from 12% a couple of years ago. Are you taking a look at those? Are those all required for investment? How would you help us understand that?

知道了。然後也許只是戴夫的快速後續。戴夫，一般行政費用增加了不少。它們現在約佔收入的 20%，高於幾年前的 12%。你正在看那些嗎？這些都是投資所需要的嗎？您將如何幫助我們理解這一點？

Yeah, you're right. On the G&A front, we still have inflated expenses. That's actually going to continue through this current Q3 quarter. We're going to see, like I said, our biggest improvement in G&A expense going into Q4. We still will have some incremental expenses from what's a typical normal run rate just because we're trying to remediate material weaknesses from the past, and that takes just time as well as some effort externally.

是啊，你說得對。在一般行政費用方面，我們的開支仍然很高。實際上，這種情況將持續到目前的第三季。正如我所說，我們將在第四季度看到一般管理費用的最大改善。我們仍然會在典型的正常運作率中產生一些增量費用，只是因為我們正在努力糾正過去的重大缺陷，而這只需要時間和外部的一些努力。

Got it. Okay. Thank you, guys.

知道了。好的。感謝你們。

Thanks, Mike.

謝謝，麥克。

Jake Roberge, William Blair.

傑克‧羅伯格，威廉‧布萊爾。

Hi. Thanks for taking questions. Yeah. If you can just talk a bit more about what you're seeing with Check Fraud Defender, that would be great. Do you still expect to exit this year with around 50 customers for that product? And then, I'm curious how conversations with some of those larger Mobile Deposit partners are trending in terms of really onboarding them and getting them to start cross selling that solution into their customers.

你好。感謝您提出問題。是的。如果您能多談談您在 Check Fraud Defender 中看到的情況，那就太好了。您是否仍預計今年退出該產品時將擁有約 50 名客戶？然後，我很好奇與一些較大的行動存款合作夥伴的對話趨勢如何真正吸引他們並讓他們開始向客戶交叉銷售該解決方案。

Thanks for the question, Jake. I'll leverage maybe where Scott's enthusiasm took us. Just as a reminder, Check Fraud Defender, we've been at this, if you include the development cycle, a little over three years. And banks take their time. They've got a lot of lawyers, a lot of compliance folks.

謝謝你的提問，傑克。也許我會利用斯科特的熱情把我們帶到哪裡。提醒一下，Check Fraud Defender，如果算上開發週期，我們已經這樣做了三年多一點。銀行需要時間。他們有很多律師，很多合規人員。

But the history of CFD and the creation of the actual capability was technology that we already had working in conjunction with one of the largest banks in the United States to create an on-premise solution. So if you think about the top four banks in the United States, they're kind of their own weather system. And that was the originating point of this product.

但差價合約的歷史和實際功能的創建是我們已經與美國最大的銀行之一合作創建本地解決方案的技術。因此，如果您考慮美國四大銀行，它們就像是自己的天氣系統。這就是這個產品的原點。

And then somebody here had the great idea of, hey, we can just refactor that, lift and shift it, put it in a secure cloud environment and create a consortium. It sounds really easy. But for the last two years, that's really what we've been marching to. And so there is combination here of customers that can consume us on-premise that don't really enjoy the benefit of the network effect of the consortium participants, and then we've got the newer participants that are exclusively consortium-based. And I'm sure, at some point, we'll have some hybrids.

然後這裡有人想到了一個好主意，嘿，我們可以重構它，提升和轉移它，將其放入安全的雲端環境中並創建一個聯盟。聽起來真的很容易。但在過去的兩年裡，這確實是我們一直在努力的方向。因此，這裡存在著可以在本地消費我們的客戶組合，但他們並沒有真正享受聯盟參與者網路效應的好處，然後我們有了完全基於聯盟的新參與者。我確信，在某個時候，我們將會有一些混合動力。

Back to your question, we, today, like as of Friday of last week when we sold -- when we closed one of the top 100 banks in the United States through our direct sales activities. We today have over 25 signed CFD contract customers. And that's a combination of some of those early adopters that were on-premise and then the folks that I'm talking about here that have joined more recently. This is growing very rapidly.

回到你的問題，我們今天就像上週五一樣，當時我們透過直接銷售活動關閉了美國 100 強銀行之一。目前，我們擁有超過 25 家簽署差價合約合約的客戶。這是一些內部部署的早期採用者和我在這裡談論的最近加入的人們的組合。這個成長速度非常快。

We had in the prepared remarks, there are over 300 financial institutions that we are seeing checks from. Even though they may not be participants in the consortium themselves, the check is written on their check stock. And so, all of that is going into feeding our models, this reinforced network effect of the more banks that send us checks, the more checks we see. The more checks we see, the better the models become. The more effective the models are, the more banks want to participate in this.

我們在準備好的發言中提到，我們收到了 300 多家金融機構的支票。儘管他們本身可能不是該財團的參與者，但支票寫在他們的支票股票上。因此，所有這些都將進入我們的模型，這種強化的網路效應是，向我們發送支票的銀行越多，我們看到的支票就越多。我們看到的檢查越多，模型就越好。模型越有效，就越多的銀行願意參與其中。

So that's all been mostly all been our direct selling activities. We have now at least two partners that are reselling that are just coming up the learning curve. And we've started to see not just pipeline growth, but actual deal activity where they close business.

所以這主要是我們的直銷活動。我們現在至少有兩個正在轉售的合作夥伴，他們只是進入學習曲線。我們不僅開始看到通路成長，還看到他們關閉業務的實際交易活動。

And then the traditional folks that have historically been our gateway into the banking industry for the core banking service providers, the Jack Henry, the FIS, the Fiservs, we are hard at work with them getting to contracts so that they can take this on. They're big organizations. They also have a lot of lawyers and a lot of compliance folks.

然後，傳統的人們，歷史上一直是我們進入銀行業的核心銀行服務提供者的門戶，傑克·亨利（Jack Henry）、FIS、Fiservs，我們正在努力與他們簽訂合同，以便他們能夠承擔這一任務。他們是大組織。他們還有很多律師和合規人員。

But all the numbers I gave you for around where we're going to end the year, I feel really good about that. We're halfway there already. And the momentum is only growing, and the pipelines are bigger than they were the last time we spoke. So a lot in there, but hopefully, that's helpful.

但我給你們提供的關於今年年底的所有數字，我對此感覺非常好。我們已經成功了一半。而且這種勢頭只會越來越大，管道比我們上次談話時還要大。裡面有很多內容，但希望對您有幫助。

Yeah. Very helpful. Thank you. And then can you just talk about the evolution of the ID business and where you're at in terms of really landing customers for point solutions, like the legacy document verification sales versus really selling that broader MiVIP and MiPass suites? And just as a follow-up there, Dave, I know you're sunsetting a few legacy ID revenue streams. Can you remind us how much of an impact that's having on growth this year for that segment? Thanks.

是的。很有幫助。謝謝。然後您能否談談 ID 業務的發展以及您在真正吸引單點解決方案客戶方面所處的位置，例如遺留文件驗證銷售與真正銷售更廣泛的 MiVIP 和 MiPass 套件？作為後續行動，戴夫，我知道您正在取消一些傳統的 ID 收入來源。您能否提醒我們這對該細分市場今年的成長有多大影響？謝謝。

Yeah. Let me start, and then I'll hand things over to Dave. So, Jake, today, we start every new identity opportunity, every engagement with customers is really more around a solution enterprise approach where we're discovering where the pain points are, what the outcome the customer is looking for. And typically, that leads us down a path where when we get into the solutioning and talking about how we're going to solve the problem, it starts with MiVIP as the platform. That really is our flagship for identity going forward.

是的。讓我開始吧，然後我會把事情交給戴夫。所以，傑克，今天，我們開始每一個新的身份機會，與客戶的每一次接觸實際上更多地圍繞著解決方案企業方法，我們發現痛點在哪裡，客戶正在尋找什麼結果。通常，這會引導我們走上一條道路，當我們進入解決方案並討論如何解決問題時，它會從 MiVIP 作為平台開始。這確實是我們未來身分識別的旗艦。

And MiPass, which we talked about at length here around identity authentication using multi-modal biometrics, is really an instantiation of that. It really is kind of an architectural implementation around identity authentication using biometrics. So I would tell you that we still have the ability to do point products when we need to.

我們在這裡詳細討論了使用多模式生物辨識技術進行身份驗證的 MiPass，實際上就是這種情況的一個例子。它確實是一種圍繞使用生物識別技術進行身份驗證的架構實現。所以我想告訴你，我們仍然有能力在需要的時候做點產品。

We've got that flexibility in the architecture in the way that MiVIP works. You could start with a single signal and then grow up into additional things where you're orchestrating many signals across the entire spectrum of the journeys, or we can start in the middle of the -- we can start the deep end of the pool and we can start in the middle somewhere, all depending on what the requirement of the customers.

我們在 MiVIP 的工作方式中獲得了架構的彈性。你可以從一個信號開始，然後發展成更多的東西，在整個旅程中編排許多信號，或者我們可以從中間開始——我們可以從池的深處開始，我們可以從中間的某個地方開始，這一切都取決於客戶的要求。

And then addressing -- I think you were wanting to address some of the legacy products. If you remember, the ICAR legacy hardware piece, it's starting to sunset here over the coming quarters and into 2025. Well, it should be done by sometime in 2025. It's impactful, not a big impact as we're talking single-digit millions here in terms of revenue.

然後解決—我認為您想要解決一些遺留產品的問題。如果你還記得，ICAR 傳統硬體產品將在未來幾季直到 2025 年開始逐漸衰退。嗯，應該會在 2025 年的某個時候完成。這是有影響的，但影響不是很大，因為我們在這裡談論的是數百萬的收入。

And then the other piece was on the document verification piece, also not a lot. And that, in fact, that Mobile Verify kind of capability on document verification integrated into the MiVIP platform. So it's also going to be continuing to be a really important product for us integrated into that platform.

然後另外一塊就是文件驗證部分，也不是很多。事實上，Mobile verify 那種文件驗證功能已整合到 MiVIP 平台中。因此，它也將繼續成為我們整合到該平台中的一個非常重要的產品。

I lost Jake.

我失去了傑克。

Still out there, Jake?

還在外面嗎，傑克？

Yeah, I’m here. Thanks for taking the questions. Appreciate it.

是的，我在這裡。感謝您提出問題。欣賞它。

Surinder Thind, Jefferies.

蘇林德·辛德，傑弗里斯。

Thank you. Just following the back up on the G&A expense growth, I just wanted to make sure I understood, is the idea that we're now at a headcount level where it's necessary for operationally being effective in terms of the business at this point. Was that the messaging? I want to be clear about that because it just seems like there was a lot of growth. But at the same time, I heard that maybe there is room for some improvement in that line item.

謝謝。就在一般管理費用增長的支持之後，我只是想確保我理解，我們現在處於人員數量水平，此時有必要在業務方面保持有效的運營。那是消息嗎？我想澄清這一點，因為看起來增長很大。但同時，我聽說該訂單項目可能還有改進的空間。

Yeah. So if you just look at Q3 -- Q2, fiscal quarter two, for instance, we're at $9.6 million, and I talked about targeting $8.5 million by the time we get to Q4. So quite a few kind of the external consultants and outside services people that we've been using to help us do the process will start to drain off. We're still going to see that inflated in fiscal quarter three, which is the quarter we're in. The biggest decline you'll see is in Q4.

是的。因此，如果你只看第三季度 - 第二季度，第二財季，我們的收入為 960 萬美元，我談到了到第四季度時的目標為 850 萬美元。因此，我們一直用來幫助我們完成這一過程的相當多的外部顧問和外部服務人員將開始流失。我們仍然會看到第三財季（也就是我們所處的季度）的通貨膨脹。您將看到最大的下降是在第四季度。

In terms of what that means for fiscal '25, I got to be careful what I say here because I don't necessarily want to guide. But keep in mind that that $8.5 million range had a lot of ins and outs. And I think including a little bit of incremental costs associated with getting us through our remediation of material weaknesses. Does that make sense?

就這對 25 財年意味著什麼而言，我必須小心我在這裡所說的話，因為我不一定想提供指導。但請記住，850 萬美元的範圍有很多細節。我認為包括一些與我們修復重大缺陷相關的增量成本。那有意義嗎？

I guess I was talking about more in terms of the permanent headcount increases in G&A. Like I assume there's been a stacking up of the process aside from all of kind of the one-time incremental cost. And that's what I was trying to get at in terms of what that number should look like.

我想我更多地談論的是 G&A 的永久員工人數增加。就像我假設的那樣，除了所有一次性增量成本之外，還有一個流程的堆積。這就是我試圖從這個數字的角度來理解的。

Yeah, I understand. From a headcount perspective, you're right. We're kind of heading into a situation where we're almost at where we need to give you a run rate perspective and be able to support further growth into '25, which we expect.

是的，我明白。從員工人數的角度來看，你是對的。我們正面臨這樣一種情況，我們幾乎需要為您提供運行率視角，並能夠支持我們期望的 25 年進一步增長。

Got it. And then in terms of just the share repurchase program, it sounds like the idea is to maybe start off a little slow at this point. Is that the messaging that you just want to see how the different numbers in other parts of the business shake out from a revenue growth perspective before you become, I'll say, too opportunistic?

知道了。然後就股票回購計劃而言，聽起來這個想法可能會在這一點上開始有點慢。這是不是你只是想看看業務其他部分的不同數字如何從收入成長的角度擺脫困境，然後我會說，你變得過於機會主義？

I heard you right. We hadn't indicated our trading strategy, in particular. Certainly didn't indicate that we would go slow before we would go fast. But what we did say or what I did say was that the trading window opens for us this Thursday, and that's when we have the opportunity to start purchasing shares.

我沒聽錯。我們沒有特別指出我們的交易策略。當然不表示我們要先慢後快。但我們確實說過或我說過的是，交易窗口將於本週四為我們打開，那時我們就有機會開始購買股票。

In terms of how that goes, we're going to -- we have a strategy in place on how we want to go trade, and we'll see that in our reporting when we report in August for Q3 how we did.

就進展而言，我們將製定一項關於如何進行交易的策略，當我們在 8 月報告第三季的表現時，我們將在報告中看到這一點。

Got it. Fair enough. And then the final question here, just in terms of the search for a new CEO, any particular qualities? I think you mentioned some high-level criteria, but is there more specific one in terms of like a hard tech background or experience in a very specific area, whether it's identity or something or security? How should we think about -- is there something there that you can provide color on?

知道了。很公平。最後一個問題是，在尋找新執行長方面，有什麼特別的品質嗎？我認為您提到了一些高級標準，但是是否有更具體的標準，例如硬技術背景或特定領域的經驗，無論是身份還是安全？我們應該如何思考——有什麼東西可以提供顏色嗎？

Yeah, yeah. Great. This is Scott. I appreciate your question.

是啊是啊。偉大的。這是斯科特。我很欣賞你的問題。

One thing I would start by emphasizing, it's not directly answering your question, but I think an important context, is that given our much broader geographic footprint and the fact that many of our teams are operating virtually these days, we can now cast a much wider net for executive talent, right? So that's something that we're really encouraged about.

我首先要強調的一件事是，它並沒有直接回答你的問題，但我認為一個重要的背景是，考慮到我們更廣泛的地理足跡，以及我們的許多團隊現在都在虛擬運作的事實，我們現在可以投出更多更廣泛的高階主管人才網絡，對嗎？所以這是我們真正受到鼓勵的事情。

We have significant presence, of course, in San Diego, but also in New York and London. So that will be something that we're evaluating as we move forward with the search. We believe that domain expertise, either directly in the space or certainly in an adjacent market category, is important.

當然，我們在聖地牙哥、紐約和倫敦都有重要的影響力。因此，這將是我們在推進搜尋過程中正在評估的事情。我們相信，無論是直接在該領域還是在相鄰的市場類別中，領域專業知識都很重要。

But as we mentioned, there are a variety of different qualities that we're looking for in the CEO, and we're working closely with a very highly respected search firm. We've done a market assessment with them, and we'll evaluate what sort of candidates come, are presented to us and go from there.

但正如我們所提到的，我們正在尋找具有多種不同品質的首席執行官，我們正在與一家備受推崇的獵人頭公司密切合作。我們已經與他們一起進行了市場評估，我們將評估什麼樣的候選人來、呈現給我們以及從那裡離開。

Thank you.

謝謝。

Derek Greenberg, Maxim Group.

德里克·格林伯格，Maxim 集團。

Hey, guys. Thanks for taking my question. I just wanted to follow up on guidance a little bit. In previous calls, you had provided a little more high-level detail in terms of how revenue should progress throughout the year. I was just wondering if third quarter and fourth quarter is still on track to be about even through your previous comments where I think it was first quarter lowest, second quarter sequential increase and then third quarter and fourth-quarter increase over that about the same.

大家好。感謝您提出我的問題。我只是想稍微跟進一下指導。在先前的電話會議中，您提供了有關全年收入如何增長的更多詳細資訊。我只是想知道，即使透過您先前的評論，第三季和第四季是否仍有望實現這一目標，我認為第一季是最低的，第二季連續成長，然後第三季和第四季增長大致相同。

Yeah. I'll take that. This is Dave. You're right. We had historically done that over the past the two or so earnings calls. We purposely didn't this earnings call because we're in Q3 now. And more importantly, there are several larger deals that we're working on that we don't yet know if they will fall into Q3 or Q4, and that would change the total revenue for those quarters. But our overall annual guidance remains in place.

是的。我會接受的。這是戴夫。你說得對。我們在過去兩次左右的財報電話會議上都曾經這樣做過。我們故意沒有召開這場財報電話會議，因為我們現在處於第三季。更重要的是，我們正在處理幾筆較大的交易，我們尚不知道它們是否會落入第三季或第四季度，這將改變這些季度的總收入。但我們的整體年度指導仍然有效。

Okay. Got it. That makes sense. And then just on the identity side of things, I was wondering if that's still on track to become cash flow positive in the fourth quarter.

好的。知道了。這就說得通了。然後就身份方面而言，我想知道第四季度現金流是否仍有望實現正現金流。

Yeah, Derek. If you go back, we were pretty clear in the prepared remarks that is absolutely the intention. We're on that track and Q4 is right around the corner, so we want to make it happen.

是的，德里克。如果你回去的話，我們在準備好的評論中非常清楚，這絕對是我們的意圖。我們正走在這條軌道上，第四季即將到來，所以我們希望實現這一目標。

Okay. Great. Thanks, guys.

好的。偉大的。多謝你們。

Thank you.

謝謝。

(Operator Instructions) Scott Buck, H.C. Wainwright.

（操作員說明）Scott Buck，H.C.溫賴特。

Hi. Good afternoon, guys. Thanks for taking my questions. The first one, just a bit of a follow-up there on the ID business and track to profitability. It sounds like your -- the visibility is there, that you think you are there in the fourth quarter. I'm curious if we should expect a meaningful kind of EBITDA margin tailwind into '25 then based on reaching the profitability threshold.

你好。下午好，夥計們。感謝您回答我的問題。第一個是 ID 業務的一些後續行動，並追蹤獲利能力。聽起來你的——可見度就在那裡，你認為你在第四季度就在那裡。我很好奇我們是否應該期望 25 年在達到獲利門檻的基礎上實現有意義的 EBITDA 利潤率順風。

Yeah. Again, we're not prepared yet to guide 2025. That being said, they're based on exactly what you're saying. There is certainly opportunity for margin expansion.

是的。再說一次，我們還沒準備好指導 2025 年。話雖如此，它們正是基於您所說的。利潤率肯定有擴大的機會。

Okay. Perfect. And then my only other one, I may have missed it, I jumped on the call a little late. In terms of the executive search, have you guys given a timeline as to when you could potentially expect to make a hire there or is it just way too early?

好的。完美的。然後我唯一的另一個，我可能錯過了，我接電話有點晚了。在獵人頭方面，你們有沒有給出一個時間表，告訴你們什麼時候可以在那裡招募員工，或者是不是太早了？

Yeah. I don't think we're prepared to make any sort of commitment today. We need to make sure that we're thoughtful and do our best to make sure we find the best possible candidate.

是的。我認為我們今天不准備做出任何形式的承諾。我們需要確保我們深思熟慮，並盡最大努力確保我們找到最好的候選人。

No, I get it. Appreciate it guys. That’s all for me. Thanks.

不，我明白了。很欣賞你們。這就是我的全部。謝謝。

Just want to add, if you don't mind. As I said in the remarks, I know this business very, very well. Part of the Board's consideration was that I could step in immediately without missing a beat, hit the ground running. And that gives us the luxury, I think, of being able to make sure that we, again, do justice for the team and our customers to make sure we've got the very best possible CEO going forward.

只是想補充一下，如果你不介意的話。正如我在演講中所說，我非常非常了解這個行業。董事會的部分考量是我可以立即介入，不遺餘力，立即行動。我認為，這給了我們一種奢侈，能夠確保我們再次為團隊和客戶伸張正義，以確保我們擁有最優秀的執行長。

No, that’s helpful. Appreciate it guys.

不，這很有幫助。很欣賞你們。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

我們的問答環節到此結束。我想將會議轉交管理層發表閉幕詞。

Thank you, operator, and thank you, everyone for joining our call today and for your continued support. As always, if you have any follow-up questions or would like to meet the management, please feel free to reach out to me, Todd Kehrli at MKR Investor Relations. I'll be happy to set something up. Thanks and have a great rest of your day.

謝謝接線員，也謝謝大家今天加入我們的電話會議並感謝大家一如既往的支持。像往常一樣，如果您有任何後續問題或想與管理層會面，請隨時聯繫我，MKR 投資者關係部的 Todd Kehrli。我很樂意安排一些事情。謝謝，祝您今天休息愉快。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。