Mitek Systems, Inc.

Good day, and welcome to the myTEC third quarter 2022 earnings conference call. All participants will be in a listen-only mode. Should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one, on your telephone keypad. To withdraw a question, please press star, then two. Please note that this event is being recorded. I would now like to turn the conference over to Todd Curley of MKR Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to MyTech's third quarter fiscal 2022 earnings conference call. With me on today's call are MyTech's CEO, Max Carnecchia, and CFO, Frank Turrell. Before I turn the call over to Max and Frank, I'd like to cover a few quick items. This afternoon, MyTech issued a press release announcing its third quarter fiscal 2022 financial results. That release is available on the company's website at mytechsystems.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. I want to remind everyone that on today's call, management will discuss certain factors that are 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. 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, July 28th, 2022, 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. Additionally, throughout this call, we'll be discussing certain non-GAAP financial measures. Today's earnings release and the related current report on Form 8K describe the differences between our non-GAAP and GAAP reporting. and present the reconciliation between the two for the periods reported in the release. With that said, I'll now turn the call over to MyTech's CEO, Max.

Thanks, Todd. Good afternoon, everyone, and thanks for joining us today. Once again, I'm happy to report that we delivered record revenue for the quarter with revenue growth of 24% year over year. Congratulations to all MyTechians for their standout work, and thank you for your ongoing commitment to this important mission and our customers all over the world. Before Frank reviews the financials in more detail, I want to focus on our significant market opportunity we are addressing. As consumers transact more business online than ever, identity verification has become essential to safe digital access. In 2021, traditional identity fraud and identity fraud scams affected 42 million consumers and cost companies a staggering $52 billion. While this is a very large number, the number of people online today is growing rapidly and is in the billions. And identity fraud and the cost of this fraud is only going to get bigger. MyTex identity solutions have been developed to address these growing challenges by providing organizations with the insight, technology, and solutions needed to determine if the individual accessing their digital account is verified, authenticated, or in fact real. With growing digital usage, verifying the identity of consumers before they can make a transaction or access a service enables organizations to prevent identity fraud, keep their consumer information safe, and meet the rising pressure of global regulation. Two notable use cases driven by increased regulation are right to work and right to rent laws in the UK. Both require identity verification. The right to work law, also known as workplace choice, gives workers the freedom to choose whether or not to join a labor union in the workplace. This law also makes it optional for employees in unionized workplaces to pay for union dues or other membership fees required for union representation. The importance of identity verification and identity authentication is critical so that unions, employers, and governments stay in control and minimize fraud related to these activities. Right to rent is another government policy that was introduced in the UK under the Immigration Act of 2014. It places restrictions on undocumented residents accessing rented accommodations in England by making all adult occupants prove they are in the UK legally before being granted tenancy. This quarter, WhoYou was granted government digital identity provider certification to provide ID verification services for right to work, right to rent, and criminal records checks, making WhoYou one of just two identity service providers in the UK to have achieved this highly anticipated high-profile government trust mark. In addition to these new regulatory use cases, Our customers are also diversifying their use of identity verification and leveraging the automation and scalability of MyTek's MobileVerify as they find creative ways to attract new consumers to their digital platforms. This quarter, one of MyTek's large banking customers ran a series of televised promotional offers as part of a countrywide advertising campaign. there was an overwhelmingly positive response which resulted in massive sign-ups and millions of identities being verified using our solution. We're proud to be their identity partner, powering this rapid surge in consumer onboarding twice within a 30-day period. Additionally, an interactive gaming client launched a new in-game feature providing its users with the ability to make microtransactions within the game to unlock specific features or game-changing enhancements. This feature was hugely successful and resulted in over one million age verifications within the first week. Mobile Verify powered the identity verification workflow to support this and in doing so enabled the customer to generate significant additional revenue. And one last example of Mobile Verify in action this quarter was a large tech company that used our solution to verify the identities of all the attendees of its Global Developers Network Conference. highlighting the remote access use case as an emerging opportunity for an identity verification solution. These are just a few examples that demonstrate the ongoing and expanding business requirement for digital identity verification. As more transactions move online, our solutions are more necessary than ever, and they need to be fully inclusive. This quarter, IDR&D, our biometric subsidiary, whose products are used in over 70 countries globally, announced the results of the first-ever independent evaluation of a face liveness detection product for demographic bias. The assessment was performed by Bixi Labs, an accredited biometric testing laboratory, and the results confirmed that ID R&D's ID Live Face product for facial liveness detection exhibits fairness in terms of bias for target demographic groups, including gender, age, and race. Liveness detection is considered essential in preventing spoofing attacks where biometrics are used for digital identity verification and authentication. Similar to biometric matching algorithms, a biased liveness algorithm can lead to an increased rate of inaccurate results for individuals in a particular demographic group. This, in turn, can cause digital banking and other services to be less accessible to these customers. The outcomes of this report will be used to inform IDR&D's ongoing development of machine learning-based products in support of responsible AI. It also reaffirms MyTech's commitment to providing inclusive digital access for all. MyTech's product arsenal of identity solutions was also boosted further this quarter when we launched the MyTech Verified Identity Platform, MyVIP. Built to make digital access faster and more secure than ever, MyVIP gives companies comprehensive, secure control over the entire customer identity journey, saving them time and money. MyTech's new platform is the culmination of our best technologies, our most recent acquisition of WhoYou, and our ongoing commitment to putting our customers in control of their consumers' experiences. As I've previously mentioned, Having a single platform that easily orchestrates and configures a KYC, or know your customer journey, to manage identities, minimize friction on good customers, and identify bad actors is imperative for digital commerce. With WhoYou KYC technology at its core, and the IDR&D biometrics and mobile verification integrated, we believe that MyVIP is the most comprehensive end-to-end identity platform on the market today. Its low-code, no-code capabilities enable us to offer the platform to businesses of all sizes and quickly set them up to manage the KYC processes without needing an army of developers. This results in a significantly larger addressable market, more vertical segments, more geographies, and of course, more use cases for our existing customers and partners. MyVIP also provides organizations with a more complete view of the consumer for more accurate decisioning throughout the customer's journey, resulting in optimization of workflows and ongoing improvement to the customer experiences. We understand that business requirements change by region and vertical segment, and consumer experience is everything. To meet these requirements, we provide flexibility with identity data signals. MyVIP offers our clients orchestration capabilities that allow them to use the most relevant data signals for their business and the flexibility to change signals with ease. Identity has moved beyond just being an enabler of digital commerce. It's now an integral element of an organization's technology stack because getting it wrong means billions of dollars of identity fraud, theft, or fines. This is definitely not a solved problem. It's getting worse and much more complicated. But with MyVIP, we offer the market a full end-to-end platform that gives them the power to fight back. We're excited about MyVIP and how it expands our offering and the addressable market and positions us for accelerated growth. The examples of the expanded use cases I mentioned earlier point to greater adoption of digital identity verification as an essential recurring step in a customer's safe digital journey. Our mission at MyTech is to provide trust and convenience to every digital transaction. We look forward to sharing our progress with you all in the quarters to come. With that, I'm going to turn the call over to Frank to discuss the third quarter's financial results in more detail. Following Frank's remarks, we'll open the call up for questions.