Alkami's Latest Financial Performance: Growth and Acquisition Insights
Alkami's Financial Results Overview
Alkami Technology, Inc. (NASDAQ: ALKT), a leader in cloud-based digital banking solutions for financial institutions, recently released its financial results for the fourth quarter. In this announcement, Alkami also revealed its intent to acquire Fin Technologies, Inc. (MANTL), further enhancing its market position and capabilities.
Fourth Quarter Financial Highlights
For the fourth quarter, Alkami reported a remarkable total revenue of $89.7 million, marking a significant 25.6% increase compared to the same quarter last year. This achievement underscores Alkami's robust growth trajectory.
The company recorded a GAAP gross margin of 59.3%, an improvement from 56.0% in the prior year's quarter. In terms of profitability, Alkami reported a GAAP net loss of $(7.6) million, an impressive reduction from a loss of $(12.7) million a year earlier. Adjusted EBITDA reached $10.2 million, compared to $3.1 million in the previous year, highlighting a shift towards stronger operational performance.
Annual Financial Summary
For the full fiscal year ended December 31, Alkami achieved total revenue of $333.8 million, reflecting a 26.1% increase over 2023. The company maintained a GAAP gross margin of 58.9%, up from 54.4% the previous year. However, Alkami did report a GAAP net loss of $(40.8) million for the year, which was an improvement from a $(62.9) million loss in 2023. Notably, adjusted EBITDA showed positive results, amounting to $26.9 million, compared to an adjusted loss of $(1.6) million in the previous year.
Acquisition of MANTL
Alkami is set to acquire MANTL for an enterprise value of $400 million, which will significantly enhance Alkami's onboarding and account opening capabilities for financial institutions. The acquisition will be funded through a combination of $380 million in cash and $13 million in restricted stock units. MANTL's innovative solutions will enable Alkami to expand its offerings and solidify its status within the financial technology sector.
Impact on Alkami's Growth Strategy
Alex Shootman, CEO of Alkami, emphasized that this acquisition is pivotal for enhancing service offerings to clients. He stated that MANTL is uniquely positioned to allow financial institutions to streamline customer acquisition across multiple channels. This alignment with Alkami's digital banking platform will drive cross-selling opportunities, increase market share, and ultimately boost revenue growth.
User Growth and Performance Metrics
Alkami experienced substantial growth in its digital banking platform, adding 2.5 million registered users in 2024, bringing the total registered users to 20 million. The annual recurring revenue reached $356 million, reflecting a 22% increase, while revenue per registered user rose to $17.81, representing a 7% year-on-year improvement.
Future Outlook
Looking ahead, Alkami has provided financial guidance for the first quarter of 2025, forecasting total revenue between $93.5 million and $95 million, with adjusted EBITDA projected to range from $9.5 million to $10.5 million. Furthermore, the fiscal year guidance anticipates a total revenue range of $440 million to $445 million, alongside adjusted EBITDA expectations of $47 million to $51 million.
Investor Relations Contact
For additional information, investors can reach out to Alkami's Investor Relations through Steve Calk at ir@alkami.com.
Media Relations Contacts
Media inquiries can be directed to:
Marla Pieton at marla.pieton@alkami.com
Valerie Kerner at alkami@fullyvested.com
Frequently Asked Questions
What are the key financial highlights from Alkami's latest results?
Alkami's fourth-quarter revenue reached $89.7 million, with a net loss of $(7.6) million. Adjusted EBITDA showed significant improvement at $10.2 million.
How will the acquisition of MANTL benefit Alkami?
Acquiring MANTL will enhance Alkami's onboarding solutions and expand its market share, facilitating increased client acquisition capabilities.
What was Alkami's annual revenue for 2024?
Alkami reported annual revenue of $333.8 million, a 26.1% increase over the previous year.
What growth did Alkami experience in its user base?
Alkami added 2.5 million registered users in 2024, bringing the total to 20 million users.
What is the expected revenue range for Alkami in the first quarter of 2025?
The forecasted revenue range for Q1 2025 is between $93.5 million and $95 million.
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