A couple things from the conf call that I think are relevant to sales personnel/cost and check deposit biz.
“We have increased the headcount in sales and marketing. I think, entering the year, we were probably between 30 to 40 people in that group, and we’re well over 50 – I think we’re actually above 60 in the sales and marketing team now. So definitely, headcount investments there. The reason we’re making the investments is we’re seeing a lot of opportunity, lead flow and building pipeline.”
- They also said they do this in Q1, takes 3-6 months to get them to produce, but is already priced into FY18.
“Deposit’s been in the market now for 8 years, and it’s – it continues to dominate its space. And again, all of the growth is coming from additional consumers and frequency of use. We’ve actually have seen indications from studies independent from Mitek that check volumes are holding steady, or their decline is reduced. So we are encouraged by the opportunity and growth prospects ahead of us. We continue to innovate in the product. We’re on our 30th release and have added features that have helped us maintain our current ASP in market. We believe that we have outdistanced any competition. In fact, we face very little competition, so the natural assumption is that we have pricing power.”
I use USAA and deposit checks monthly, and don’t see that changing. I also use a bunch of digital payment apps, but would welcome some better authentication from them (FB, venmo, cash, etc). Right now I have to use their account they created (like FB profile) and who knows if that is legit.
$62-63m if I am reading the slides correctly
I saw that as well, and yes, that’s an increase from their conf call of $59-60M. Q2-4 has typically grown, with a slight reducition Q1, of revs (slide 16 of investor presentation). So they could have 37-40% rev growth for fY18 (at P/S of 6).
disclaimer: I did make an initial purchase of the stock today.
Robert
Robert