Shares of Mitek Systems (MITK) - Get Report are up over 90% year to date and this week the mobile deposit solutions provider announced that it processed its one billionth check. The company's CEO, James DeBello, said the scale of the numbers is more inspiring than daunting.
"We are in a good spot as a pure play in mobile capture and ID verification, considering the demand in mobile banking and the global need for tighter security," said DeBello.
Last week San-Diego-based Mitek Systems reported a fiscal second-quarter profit of $582,000, or 7 cents per share, in adjusted earnings. The results exceeded Wall Street expectations of 4 cents per share. The mobile imaging software company posted revenue of $8.5 million in the period, also topping the Wall Street analyst consensus forecast of $7.3 million.
Then on Tuesday, Mitek announced that its Mobile Deposit solution processed its one billionth check deposit. The company's Mobile Deposit is licensed by more than 5,000 U.S. financial institutions and used by more than 70 million consumers.
According to DeBello, Mitek's Mobile Deposit solution has become the de facto industry standard. He said its auto capture, Mitek MiSnap, analyzes video in real time to capture an image that is optimized for processing by banks. He added that Mobile Deposit has advanced features including endorsement detection and restrictive endorsements that help mitigate fraud risk.
Nearly 50% of Americans with a mobile phone and a bank account have deposited a check via mobile deposit in the last 12 months, according to the latest numbers from the Federal Reserve and Mitek's technology powers those transactions.
"It's not just Millennials using our technology," said DeBello. "And we are just getting started."