Mitek Systems, Inc. (NASDAQ:MITK) Q2 2023 Earnings Call Transcript

Scott Buck: No, that’s fair. I appreciate that color. Second one, if we could talk a little bit about capital allocation, you’re starting to build a fair amount of cash back onto the balance sheet here. What are you thinking about in terms of use cases? Is M&A back on the table? Or thinking about paying down some of the debt — what is kind of your thoughts?

Fuad Ahmad: Maybe I’ll take that, and I’ll ask Max to jump in. I think at this point, the first thing we got to do is kind of get completely current on our filings, right? So before we start thinking about potential M&A or even stock buyback, I think we have to be current on our filings, and we’re going to get, hopefully, as Max said in his prepared remarks, before the filing — in that we committed to NASDAQ, which is October 13. So I think that’s got to be and has to be and is our priority right now. And then after that, I think then we do open up for business again, so to speak. So I think that’s the way I’d say it for now. Our capital allocation, the way I was thinking about it is more focused internally, how we invest wisely and efficiently to grow the business at — maximally the AOP, we go through that exercise and making sure that the capital that we have available, that we’re allocating that prudently internally.

And prudently meaning efficient, right? So right now, that’s the focus. An outward focus. I think that’s going to be not until we get ourselves current on the filings.

Max Carnecchia: Yeah. I think, Scott, the only thing I’d add to that is just because of the very favorable terms of that convertible debt, it’s hard for me to imagine we would prepay that or pay that down prematurely. Not to say it’s impossible that there’s some circumstance that that — we wouldn’t be interested in doing that, but it’s — under course and speed of current, doesn’t make any sense.

Scott Buck: Yes. That makes sense, guys. I appreciate the color. That’s it for me. Congrats again on the results.

Max Carnecchia: Thanks, Scott.

Fuad Ahmad: Thank you.

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

Todd Kehrli: Thank you, operator, and thank you, everyone for joining us today. We look forward to updating you again next quarter. Our call has concluded. Have a wonderful day.

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