PLANO, Texas, Aug. 8, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami" or the "Company"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today announced the launch of an underwritten secondary offering (the "Offering") of an aggregate of 5,000,000 shares of the Company's common stock to be sold by entities affiliated with General Atlantic, L.P., S3 Ventures Fund III, L.P., George B. Kaiser and Brian R. Smith (collectively, the "Selling S ...

ridvan_celikInvestment Outlook Alkami Technology (NASDAQ:ALKT) recently reported its Q2 2024 financial results, beating revenue but matching earnings estimates. I previously wrote about Alkami in June 2023 with a Hold outlook due to revenue growth questions and continued heavy operating losses. While revenue has continued to grow and operating losses have been reduced, the U.S. economy is slowing, and I’m pessimistic that the company will be able to retain its previous growth rate. I remain Neutral (Hol ...

RICHARDSON, Texas, Aug. 6, 2024 /PRNewswire/ -- Texans Credit Union (Texans), a premier credit union in North Texas, proudly announces the launch of Atomic Financial's (Atomic) direct deposit switching solution in partnership with Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S. This integration seamlessly incorporates Atomic's market-leading technology and Alkami's Digital Banking Platform, empowering Texans' ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Alkami Technology's unaudited financial statements as of June 30, 2024, show revenue growth, a narrowed net loss, and positive operating cash flow [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets slightly increased to $403.9 million, primarily due to higher cash, with stable liabilities and growing equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $61,432 | $40,927 | | Total current assets | $151,956 | $148,585 | | Total assets | $403,857 | $399,825 | | **Liabilities & Equity** | | | | Total current liabilities | $40,520 | $39,430 | | Total liabilities | $76,673 | $74,884 | | Total stockholders' equity | $327,184 | $324,941 | - Cash and cash equivalents increased by over **$20 million** from December 31, 2023, to June 30, 2024, while marketable securities decreased by a similar amount[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2024, revenues grew 24.9% to $82.2 million, gross profit increased, and net loss significantly narrowed to $12.3 million, showing improved operational leverage Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $82,160 | $65,763 | $158,287 | $125,759 | | Gross Profit | $48,771 | $35,474 | $92,803 | $67,612 | | Loss from Operations | $(13,207) | $(17,873) | $(25,572) | $(34,819) | | Net Loss | $(12,317) | $(17,761) | $(23,750) | $(34,724) | | Net Loss per Share | $(0.13) | $(0.19) | $(0.24) | $(0.37) | - For the six months ended June 30, 2024, revenues increased by **25.9%** year-over-year, while the net loss improved by **31.6%** from **$(34.7) million** to **$(23.8) million**[14](index=14&type=chunk)[79](index=79&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, the company generated $1.5 million in operating cash flow, a significant turnaround, with positive investing cash flow from marketable securities sales Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six months ended June 30, 2024 | Six months ended June 30, 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,499 | $(15,325) | | Net cash provided by (used in) investing activities | $22,275 | $(96) | | Net cash used in financing activities | $(3,269) | $(4,020) | | Net increase (decrease) in cash | $20,505 | $(19,441) | - The improvement in operating cash flow was primarily driven by a lower net loss and favorable non-cash adjustments, including a **$28.6 million** stock-based compensation expense[22](index=22&type=chunk)[125](index=125&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on accounting policies, revenue disaggregation, significant future contracted revenues, and the recent amendment to the company's credit agreement - The company is a cloud-based digital banking solutions provider for financial institutions, generating revenue through long-term, subscription-based contracts for its Alkami Digital Banking Platform[25](index=25&type=chunk) Revenue by Source (in thousands) | Revenue Source | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | SaaS subscription services | $78,371 | $61,169 | $151,383 | $118,688 | | Implementation services | $2,110 | $3,214 | $3,958 | $4,884 | | Other services | $1,679 | $1,380 | $2,946 | $2,187 | | **Total revenues** | **$82,160** | **$65,763** | **$158,287** | **$125,759** | - As of June 30, 2024, the company has approximately **$1.2 billion** in minimum contracted subscription revenues (backlog) to be recognized in future periods, with about **47.2%** expected in the next 24 months[37](index=37&type=chunk) - On July 1, 2024, the company amended its credit agreement, increasing its revolving loan commitment from **$60 million** to **$125 million** and extending the maturity to April 2027[71](index=71&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes 25.9% revenue growth to user and RPU increases, with gross margin improving to 58.6% and Adjusted EBITDA turning positive at $8.4 million, indicating sufficient liquidity [Overview and Factors Affecting Operating Results](index=20&type=section&id=Overview%20and%20Factors%20Affecting%20Operating%20Results) Alkami provides a cloud-based digital banking platform, with growth driven by new client acquisition, increased digital adoption, product expansion, client renewals, and innovation - The company's growth strategy focuses on growing its FI client base, deepening client customer penetration, expanding its product suite, ensuring client renewals, and continued innovation[80](index=80&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - As of June 30, 2024, the platform had over **300** real-time integrations, which is a key differentiator for scalability and extensibility[76](index=76&type=chunk)[82](index=82&type=chunk) - The average contract life for the Alkami Digital Banking Platform is approximately **70 months** as of June 30, 2024, providing a stable, long-term revenue base[78](index=78&type=chunk)[84](index=84&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2024 revenues increased 24.9% to $82.2 million, with gross margin improving to 59.4% and operating expenses growing slower than revenue, demonstrating operational leverage Comparison of Operating Results (in thousands) | Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenues | $82,160 | $65,763 | $16,397 | 24.9% | | Gross Profit | $48,771 | $35,474 | $13,297 | 37.5% | | Total Operating Expenses | $61,978 | $53,347 | $8,631 | 16.2% | | Loss from Operations | $(13,207) | $(17,873) | $4,666 | (26.1)% | - The increase in six-month revenue was driven by **2.7 million** new registered users and a **6.7%** increase in RPU compared to June 30, 2023[107](index=107&type=chunk) - Gross margin improved for the six months ended June 30, 2024, to **58.6%** from **53.8%** in the prior year period, as revenue growth outpaced the **12.6%** increase in cost of revenues[109](index=109&type=chunk) [Key Business Metrics](index=27&type=section&id=Key%20Business%20Metrics) As of June 30, 2024, key business metrics showed strong growth, with ARR increasing 25.1% to $321.3 million, registered users growing to 18.6 million, and Adjusted EBITDA turning positive Key Business Metrics Comparison | Metric | As of June 30, 2024 | As of June 30, 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Annual Recurring Revenue (ARR) | $321.3 million | $256.8 million | 25.1% | | Registered Users | 18.6 million | 15.8 million | 17.3% | | Revenue per Registered User (RPU) | $17.29 | $16.20 | 6.7% | Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(12,317) | $(17,761) | $(23,750) | $(34,724) | | Adjusted EBITDA | $4,554 | $(2,527) | $8,363 | $(5,457) | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, the company held $87.4 million in cash and marketable securities, generated positive operating cash flow, and enhanced liquidity with a $125 million credit facility - The company had **$87.4 million** in cash and marketable securities as of June 30, 2024[121](index=121&type=chunk) - The company's credit agreement was amended on July 1, 2024, increasing the revolving loan commitment to **$125.0 million** and extending the maturity date to April 29, 2027[136](index=136&type=chunk) - The company paid off the remaining **$82.9 million** balance of its term loan on December 29, 2023[130](index=130&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its variable-rate credit agreement, but management expects no material impact due to short-term, investment-grade holdings - The company's main market risk is interest rate risk associated with its Second Amended Credit Agreement[144](index=144&type=chunk)[145](index=145&type=chunk) - Due to the short-term nature of its cash, cash equivalents, and marketable securities, the company does not expect a significant negative impact from an increase in market interest rates[146](index=146&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2024[147](index=147&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter[148](index=148&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any litigation expected to have a material adverse effect on its business or financial condition - The company reports no material legal proceedings that would adversely affect its financial condition[149](index=149&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023, were reported - No material changes to risk factors were reported compared to the latest Form 10-K[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[150](index=150&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) During Q2 2024, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated Rule 10b5-1 trading arrangements in Q2 2024[151](index=151&type=chunk)

Financial Data and Key Metrics Changes - Alkami reported total revenue of $82.2 million for Q2 2024, representing a year-over-year growth of 25% [17] - Subscription revenue grew by 28%, accounting for approximately 95% of total revenue [17] - Adjusted EBITDA for the quarter was $4.6 million, exceeding expectations and marking the fourth consecutive quarter of positive adjusted EBITDA [22] - The company ended the quarter with an annual recurring revenue (ARR) of $321.3 million, a 25% increase year-over-year [17] Business Line Data and Key Metrics Changes - Alkami signed 10 new clients in Q2, bringing the total digital platform client count to 254 [18] - The company has 39 clients in its implementation backlog, representing 1.6 million digital users [18] - Registered users on the digital banking platform increased by 2.7 million or 17% year-over-year, reaching 18.6 million [18] Market Data and Key Metrics Changes - The sales pipeline remains strong, with almost half of the opportunities in the bank market [10] - Digital user growth among U.S. financial institutions averages 5% to 8% annually, contributing to Alkami's total addressable market (TAM) [10] - The company noted that millennials are increasingly diversifying their financial provider relationships, which presents opportunities for growth [11] Company Strategy and Development Direction - Alkami aims to achieve 50% of new client wins from banks by 2026, complementing its existing success in the credit union market [28] - The company is focusing on enhancing its product offerings, particularly in data insights, marketing, fraud protection, and financial wellness [19] - Alkami is investing in operational improvements and platform scalability, with significant progress in converting microservices to Linux and deploying to Kubernetes [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 targets, citing strong market demand and operational improvements [16] - The company anticipates continued growth in digital banking, driven by demographic trends and the ongoing digital transformation in financial services [10] - Management highlighted the importance of user experience in client acquisition and retention, especially in the competitive digital banking landscape [8] Other Important Information - Alkami's non-GAAP gross margin for Q2 2024 was 63.2%, reflecting a 450 basis point expansion year-over-year [20] - The company has approximately $87 million in cash and marketable securities and recently amended its credit facility to expand its revolver [23] - Alkami's remaining purchase obligation crossed over $1.2 billion, representing just under 4x its ARR [20] Q&A Session Summary Question: Key drivers for Alkami's next phase of growth - Management emphasized underlying seat growth and demographic changes as key demand drivers for future growth [27][28] Question: Progress on leveraging APIs - Management discussed efforts to redesign APIs to enhance customer access and integration capabilities, aiming for an API-first platform [31] Question: Areas of traction in add-on sales - Significant progress was noted in data insights and marketing, fraud protection, and customer service, with strong adoption rates among existing clients [34] Question: Expectations for user growth and ARPU - Management confirmed that 5% to 7% of revenue growth will come from ARPU expansion, with the remainder from user growth [39] Question: Insights on millennials' financial provider relationships - Management highlighted the opportunity to capture millennial clients who prioritize digital experiences and are diversifying their financial relationships [43] Question: M&A strategy and parameters - Alkami's M&A strategy focuses on enhancing product offerings that align with customer needs and maintaining financial health [44][46] Question: Implementation backlog and client mix - Management indicated that the client mix remains stable, with no significant changes expected in the near term [50] Question: Gross margin outlook - Management expects gross margin to remain around 63% for the remainder of the year, with continued improvements anticipated [73][76]

Alkami Technology Second Quarter 2024 Alkami Technology, Inc. Proprietary Information. © Alkami Technology, Inc. Cautionary Statement Regarding Forward-Looking Statements This presentation contains "forward-looking" statements relating to Alkami Technology, Inc.'s strategy, goals, future focus areas, and expected, possible or assumed future results, including its future cash flows and its financial outlook. These forward-looking statements are based on management's beliefs and assumptions and on information ...

Alkami Technology (ALKT) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this provider of digital banking services would post earnings of $0.02 per share when it actually produced earnings of $0.04, delivering a surprise of 100%.Over the last four ...

Exhibit 99.1 Alkami Announces Second Quarter 2024 Financial Results PLANO, Texas, July 31, 2024 (PRNewswire) -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today announced results for its first quarter ending June 30, 2024. Second Quarter 2024 Financial Highlights • GAAP total revenue of $82.2 million, an increase of 24.9% compared to the year-ago quarter; • GAAP gross margin of 59.4%, compared to 53.9% i ...

PLANO, Texas, July 31, 2024 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today announced results for its first quarter ending June 30, 2024.Second Quarter 2024 Financial HighlightsGAAP total revenue of $82.2 million, an increase of 24.9% compared to the year-ago quarter;GAAP gross margin of 59.4%, compared to 53.9% in the year-ago quarter;Non-GAAP gross margin of 63.2%, compared to 58.7% in ...

Group 1 - Alkami Technology, Inc. plans to report its financial results for the second quarter ended June 30, 2024, on July 31, 2024, after market close [1] - A conference call will be held at 5:00 p.m. ET on the same day to discuss the financial results with investors [1] - A live webcast of the conference call will be available on the Alkami investor relations website, along with dial-in options for domestic and international participants [1] Group 2 - Alkami is a leading cloud-based digital banking solutions provider for financial institutions in the United States [2] - The company enables clients to grow confidently, adapt quickly, and build thriving digital communities through various banking and marketing solutions [2] - Alkami's services include retail and commercial banking, digital account opening, and data and marketing solutions [2]