Mitek Systems: Shift Away From License Sales Pressuring Margin
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Valkyrie Trading SocietyInvesting Group LeaderFollow5ShareSavePlay(5min)CommentsSummaryMitek is seeing some margin pressure as license sales fall off and the revenue model shifts over to SaaS, where margin is more backloaded.But underlying markets seem to be generating decent growth, although R&D intensity remains.In checks, apparently the declines are due to timing effects related to several years of frontloaded revenue recognition in 2023. Userba011d64_201/iStock via Getty Images Mitek Systems (MITK) is undergoing a SaaS from perpetual license shift, which comes with its growing pains. This explains some of the gross margin pressures and even some of the sales pressures. While long-term there are expectations of declines in the checksThis article was written byValkyrie Trading Society5.41K FollowersFollowThe Valkyrie Trading Society is a team of analysts sharing high conviction and obscure developed market ideas that are downside limited and likely to generate non-correlated and outsized returns in the context of the current economic environment and forces. They are long-only investors.They lead the investing group The Value Lab where they offer members a portfolio with real time updates, chat to answer questions 24/7, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You