Core Viewpoint - Alkami Technology, Inc. has announced the pricing of a $300 million offering of 1.50% convertible senior notes due 2030, aimed at qualified institutional buyers, with settlement scheduled for March 13, 2025 [1][2]. Group 1: Offering Details - The offering consists of $300 million in aggregate principal amount of convertible senior notes, with an option for initial purchasers to buy an additional $45 million [1]. - The notes will accrue interest at a rate of 1.50% per annum, payable semi-annually starting September 15, 2025, and will mature on March 15, 2030 [2]. - The initial conversion rate is set at 30.4681 shares of common stock per $1,000 principal amount of notes, translating to an initial conversion price of approximately $32.82 per share, which is a 37.5% premium over the last reported sale price of $23.87 on March 10, 2025 [2]. Group 2: Redemption and Repurchase Rights - The notes are redeemable at Alkami's option starting March 20, 2028, under certain conditions, including if the stock price exceeds 130% of the conversion price [3]. - In the event of a "fundamental change," noteholders may require Alkami to repurchase their notes for cash at the principal amount plus accrued interest [4]. Group 3: Use of Proceeds - Alkami estimates net proceeds from the offering to be approximately $290.3 million, which will be used to fund the acquisition of MANTL and for general corporate purposes [5]. - Approximately $29.5 million of the net proceeds will fund capped call transactions, with additional proceeds allocated for further capped call transactions if the option to purchase additional notes is exercised [5]. Group 4: Capped Call Transactions - Alkami has entered into capped call transactions to reduce potential dilution from the conversion of the notes, with an initial cap price of $47.74 per share, representing a 100% premium over the last reported sale price [6][7]. - These capped call transactions are designed to offset potential cash payments required upon conversion of the notes [8]. Group 5: Market Impact - The initial hedging activities related to the capped call transactions may influence the market price of Alkami's common stock and the market value of the notes [9]. - Ongoing modifications to hedge positions by option counterparties could further affect the market price of Alkami's common stock and the notes [10].

PLANO, Texas, March 10, 2025 /PRNewswire/ -- Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today announced its intention to offer, subject to market and other conditions, $300,000,000 aggregate principal amount of convertible senior notes due 2030 (the "notes") in a private offering (the "Offering") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securitie ...

Core Insights - Alkami Technology, Inc. has partnered with American Eagle Financial Credit Union (AEFCU) to enhance AEFCU's digital banking experience, focusing on innovation and member financial wellness [1][2][3] - The collaboration aims to provide AEFCU with advanced tools for personalized member interactions and improved financial management [2][3] - AEFCU's commitment to member service and financial freedom is reinforced through this partnership, which will enable targeted marketing campaigns and seamless integration with fintech partners [3][4] Company Overview - Alkami Technology, Inc. is a leading provider of cloud-based digital banking solutions for financial institutions in the U.S., helping clients grow and adapt in the digital landscape [5] - American Eagle Financial Credit Union, established in 1935, serves over 180,000 members with more than $2.5 billion in assets, offering a range of financial services [6]

PART I [Business](index=4&type=section&id=Item%201.%20Business) Alkami provides a cloud-based digital banking platform for financial institutions, serving 272 clients and 20.0 million users, generating $333.8 million in 2024 revenue Key Business Metrics (as of December 31) | Metric | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Alkami Digital Banking Platform Clients** | 272 | 236 | 199 | | **Live Registered Users (Millions)** | 20.0 | 17.5 | 14.5 | | **Total Revenues ($M)** | $333.8 | $264.8 | $204.3 | | **Net Loss ($M)** | $(40.8) | $(62.9) | $(58.6) | - The company's growth strategy focuses on deepening existing client relationships through cross-selling and increasing user adoption, winning new FI clients, enhancing its product suite, and pursuing selective acquisitions[34](index=34&type=chunk) - The Alkami Digital Banking Platform is built on a true cloud, multi-tenant architecture hosted on AWS, featuring a single code base and continuous delivery model, which enables rapid innovation and scalability[27](index=27&type=chunk)[40](index=40&type=chunk)[48](index=48&type=chunk) - The platform offers 34 products across 10 categories, including digital account opening, marketing, data insights, and business banking, with new clients in 2024 contracting for an average of **20 products** compared to the overall client average of **14**[14](index=14&type=chunk)[37](index=37&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including managing rapid growth, client retention, third-party dependence, cybersecurity threats, intense competition, and historical operating losses - Business risks include challenges in managing rapid growth, attracting and retaining clients, dependence on third-party software and data centers (principally AWS), and retaining key personnel[82](index=82&type=chunk)[85](index=85&type=chunk)[98](index=98&type=chunk) - Cybersecurity is a major risk, with threats of breaches, reliance on third-party security, and the need to comply with numerous data privacy laws like GLBA and CCPA, which could lead to significant costs and liabilities[119](index=119&type=chunk)[129](index=129&type=chunk) - The company faces intense competition from established core processing and point solution vendors who have greater financial resources, brand recognition, and larger client bases[137](index=137&type=chunk)[138](index=138&type=chunk) - Financial risks include a history of operating losses, uncertainty in achieving future profitability, and potential limitations on using its substantial net operating loss (NOL) carryforwards due to ownership change rules under IRC Section 382[174](index=174&type=chunk)[178](index=178&type=chunk) [Unresolved Staff Comments](index=51&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - Not applicable[201](index=201&type=chunk) [Cybersecurity](index=51&type=section&id=Item%201C.%20Cybersecurity) Alkami implements a cybersecurity risk management program based on SCF, overseen by the Board's Information Systems Audit Committee, with no material incidents identified - The cybersecurity risk management program is based on the Secure Controls Framework (SCF) and includes a security team, risk assessments, training, an incident response plan, and third-party risk management[202](index=202&type=chunk)[208](index=208&type=chunk) - The Information Systems Audit Committee of the Board of Directors oversees the cybersecurity program, receiving quarterly reports from management[205](index=205&type=chunk)[206](index=206&type=chunk) - The company has not identified any past cybersecurity threats or incidents that have materially affected its business, operations, or financial condition[204](index=204&type=chunk) [Properties](index=53&type=section&id=Item%202.%20Properties) The company's principal executive offices are located in a leased **83,939 sq. ft.** space in Plano, Texas, until August 2033 - The main office is a leased space of **83,939 sq. ft.** in Plano, Texas, with the lease running until August 31, 2033[212](index=212&type=chunk) [Legal Proceedings](index=53&type=section&id=Item%203.%20Legal%20Proceedings) The company states that it is not involved in any pending legal proceedings that would have a material impact on its business, financial condition, or results of operations - Management believes there are no pending claims or actions that would have a material impact on the company[213](index=213&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[214](index=214&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=54&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Alkami's common stock trades on Nasdaq under 'ALKT' since April 2021; the company has not paid and does not anticipate paying cash dividends - Common stock is listed on Nasdaq under the symbol **"ALKT"** since April 15, 2021[217](index=217&type=chunk) - The company has never paid cash dividends and does not intend to in the foreseeable future[219](index=219&type=chunk) - Net proceeds of **$192.8 million** from the IPO have been fully utilized for general corporate purposes[220](index=220&type=chunk) - No equity securities were repurchased during the three months ended December 31, 2024[224](index=224&type=chunk) [Reserved](index=55&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=56&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Alkami's 2024 revenue grew **26.1%** to **$333.8 million**, with improved gross margin and positive Adjusted EBITDA, and plans to acquire MANTL for **$380 million** Financial Performance Comparison (2024 vs. 2023) | Metric | 2024 | 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues ($M)** | $333.8 | $264.8 | +$69.0 | +26.1% | | **Gross Profit ($M)** | $196.6 | $144.1 | +$52.5 | +36.4% | | **Gross Margin (%)** | 58.9% | 54.4% | +4.5 p.p. | +8.3% | | **Net Loss ($M)** | $(40.8) | $(62.9) | +$22.1 | -35.1% | | **Adjusted EBITDA ($M)** | $26.9 | $(1.6) | +$28.5 | N/A | Key Business Metrics Comparison (as of Dec 31) | Metric | 2024 | 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Annual Recurring Revenue ($M)** | $355.9 | $291.0 | +$64.9 | +22.3% | | **Registered Users (Thousands)** | 19,984 | 17,502 | +2,482 | +14.2% | | **Revenue per Registered User ($)** | $17.81 | $16.63 | +$1.18 | +7.1% | - On February 27, 2025, the company entered into an agreement to acquire MANTL for approximately **$380 million** to enhance its onboarding and account opening solutions[240](index=240&type=chunk)[473](index=473&type=chunk) - Cash flow from operations turned positive to **$18.6 million** in 2024, a significant improvement from a **$17.5 million** use of cash in 2023, driven by a lower net loss and higher non-cash charges[286](index=286&type=chunk)[287](index=287&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=72&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its credit agreement, with a **10%** change not expected to be material - The primary market risk is interest rate changes on the Amended Credit Agreement, but a hypothetical **10%** change in rates is not expected to have a material impact[315](index=315&type=chunk) [Financial Statements and Supplementary Data](index=73&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements, with an unqualified opinion from Ernst & Young LLP, detailing financial position and results - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and on the effectiveness of internal control over financial reporting[321](index=321&type=chunk)[330](index=330&type=chunk) Consolidated Balance Sheet Data (as of Dec 31) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | **Total Current Assets ($K)** | $181,377 | $148,585 | | **Total Assets ($K)** | $437,277 | $399,825 | | **Total Current Liabilities ($K)** | $45,570 | $39,430 | | **Total Liabilities ($K)** | $80,247 | $74,884 | | **Total Stockholders' Equity ($K)** | $357,030 | $324,941 | Consolidated Statement of Operations Data (Year Ended Dec 31) | (in thousands) | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | **Revenues ($K)** | $333,849 | $264,831 | $204,270 | | **Gross Profit ($K)** | $196,630 | $144,111 | $108,324 | | **Loss from Operations ($K)** | $(44,626) | $(63,705) | $(57,689) | | **Net Loss ($K)** | $(40,835) | $(62,913) | $(58,600) | | **Net Loss per Share ($)** | $(0.41) | $(0.67) | $(0.64) | - Subsequent to year-end, on February 27, 2025, the company agreed to acquire MANTL for **~$380 million** and entered into a Third Amendment to its Credit Agreement, increasing its revolving commitment to **$225 million**[473](index=473&type=chunk)[475](index=475&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=107&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[476](index=476&type=chunk) [Controls and Procedures](index=107&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024 - Management concluded that disclosure controls and procedures were effective as of December 31, 2024[478](index=478&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2024, based on the COSO 2013 framework[481](index=481&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) The Chairperson and an affiliated entity adopted a Rule 10b5-1 trading plan for up to **3,276,000** shares - The Chairperson of the board, Brian Smith, and an affiliated entity adopted a Rule 10b5-1 trading plan for the sale of up to **3,276,000** shares[485](index=485&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=107&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not Applicable[488](index=488&type=chunk) PART III Part III incorporates information by reference from the 2025 Proxy Statement, covering directors, executive compensation, security ownership, and related transactions - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's definitive proxy statement for its 2025 Annual Meeting of Stockholders[490](index=490&type=chunk)[492](index=492&type=chunk)[493](index=493&type=chunk) [Directors, Executive Officers and Corporate Governance](index=109&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information is incorporated by reference from the 2025 Proxy Statement [Executive Compensation](index=109&type=section&id=Item%2011.%20Executive%20Compensation) Information is incorporated by reference from the 2025 Proxy Statement [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=109&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information is incorporated by reference from the 2025 Proxy Statement [Certain Relationships and Related Transactions, and Director Independence](index=109&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information is incorporated by reference from the 2025 Proxy Statement [Principal Accountant Fees and Services](index=109&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information is incorporated by reference from the 2025 Proxy Statement PART IV Part IV lists exhibits filed with the Form 10-K, including financial statements, schedules, and a comprehensive index of all exhibits [Exhibit and Financial Statement Schedules](index=109&type=section&id=Item%2015.%20Exhibit%20and%20Financial%20Statement%20Schedules) This item lists the financial statements, notes that no financial statement schedules are required, and provides an index of all exhibits filed with or incorporated by reference into the annual report - This section provides the index to the Consolidated Financial Statements (under Item 8) and the Exhibit Index[497](index=497&type=chunk)[501](index=501&type=chunk) [Form 10-K Summary](index=112&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company indicates there is no Form 10-K summary - None[508](index=508&type=chunk) [Signatures](index=113&type=section&id=Signatures) The report is duly signed by the company's executive officers and Board of Directors, including a Power of Attorney for amendments

Alkami (ALKT) Q4 2024 Earnings Call February 28, 2025 07:05 AM ET Company Participants Steve Calk - Head - Investor RelationsAlex Shootman - CEOBryan Hill - CFODavid Wieloszynski - Equity Research Senior AssociateRyan Powderly-Gross - VP - Equity Research Conference Call Participants Patrick Walravens - AnalystCristopher Kennedy - Research Analyst - Financial Services & TechnologyAdam Hotchkiss - AnalystNone - Analyst Operator Good afternoon, ladies and gentlemen, and welcome to the Alchemy Technology Fourt ...

Alkami Technology Fourth Quarter 2024 Alkami Technology, Inc. Proprietary Information. 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 currently available to ma ...

Financial Data and Key Metrics Changes - In Q4 2024, Alkami reported a revenue growth of 26% and generated over $10 million in adjusted EBITDA [8][30] - For the full year 2024, total revenue reached $333.8 million, also reflecting a 26% year-over-year growth, with adjusted EBITDA improving to $26.9 million from a loss of $1.6 million in 2023 [30][44] - The adjusted EBITDA margin for Q4 was 11.3%, achieving the Rule of 37, and the company ended the quarter with a cash and marketable securities balance of just under $116 million [42][44] Business Line Data and Key Metrics Changes - Subscription revenue grew by 26.5% in 2024, accounting for nearly 96% of total revenue [31] - The annual recurring revenue (ARR) increased by 22%, reaching $356 million, with approximately $56.5 million of ARR in backlog for implementation [32] - The revenue per user (RPU) increased by 7% to $17.81, driven by successful add-on sales [35] Market Data and Key Metrics Changes - Alkami ended 2024 with 272 clients and 20 million registered users, marking a growth of approximately 2.5 million users or 14% compared to the previous year [33] - The company churned less than 1% of its digital banking ARR in 2024, with expectations to maintain a churn rate of 2% to 3% per year in the long term [34] Company Strategy and Development Direction - Alkami's strategy includes a five-point plan focusing on success in the bank market, leveraging add-on sales, investing in platform efficiency, attracting talent, and pursuing acquisitions [10] - The acquisition of MANTL is expected to enhance Alkami's position as a premier digital banking platform, providing a comprehensive onboarding and account opening solution [22][45] - The company aims to generate half of its new logo wins from the bank market and half from the credit union market, with a focus on cross-selling opportunities post-acquisition [12][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into 2025, with guidance for Q1 2025 revenue between $93.5 million and $95 million, representing a growth of 23% to 25% [49] - For the full year 2025, revenue guidance is set between $440 million and $445 million, indicating a growth of 32% to 33% [50] - The management highlighted the importance of improving account opening experiences for financial institutions to remain competitive against larger banks and fintechs [19][20] Other Important Information - Alkami's gross margin for Q4 2024 was 63.1%, with expectations to reach 65% by 2026 [39][114] - The company has expanded its credit facility from $125 million to $225 million, extending the maturity date to February 2030 [45] Q&A Session Summary Question: How does MANTL compare with your existing account opening solutions? - The current offering is digital-only for limited deposit types, while MANTL provides a comprehensive solution across various channels and account types [56][58] Question: What is embedded in the 2025 outlook between user growth and ARPU expansion? - Organic user growth is expected in the 14% to 15% range, with ARPU expansion projected at 6% to 8% [60][61] Question: What is the competitive environment for MANTL? - MANTL faces competition from outdated core providers and smaller players, but its technology offers superior user experience and integration capabilities [70][72] Question: What are the prospects for MANTL's EBITDA to go from negative to positive? - The transition to positive EBITDA is primarily driven by revenue scale and leveraging Alkami's resources for growth [96][98] Question: How will cross-selling opportunities look post-acquisition? - Both companies have similar client bases, allowing for effective cross-selling of products and services [108][110] Question: What is the long-term margin trajectory for gross profit margin? - Alkami aims for a gross margin of 65% by 2026, with MANTL expected to contribute positively to this margin [114]

Financial Performance - Alkami Technology reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, and up from $0.03 per share a year ago, representing an earnings surprise of 25% [1] - The company posted revenues of $89.66 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.22%, and an increase from $71.37 million year-over-year [2] - Over the last four quarters, Alkami has consistently surpassed consensus EPS and revenue estimates [2] Stock Performance - Alkami shares have declined approximately 19.6% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for Alkami is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $95 million, and for the current fiscal year, it is $0.50 on revenues of $414.78 million [7] - The outlook for the Internet - Software industry, where Alkami operates, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Financial Commitments and Amendments - The Borrower has requested an increase in the amount of the Revolving Commitments to $225,000,000[3]. - The effectiveness of the Amendment is subject to the satisfaction of several conditions precedent, including the execution of necessary documents by the Administrative Agent and the Borrower[5]. - No Default or Event of Default has occurred and is continuing as of the Third Amendment Effective Date[11]. - The New Lender, JPMorgan Chase Bank, N.A., will become a Lender under the Credit Agreement with a Revolving Commitment as specified in Schedule 1.1A[12]. - The Borrower must pay all fees and expenses required as a condition to the increase, including those outlined in the Third Amendment Fee Letter[9]. - The Administrative Agent must receive a Solvency Certificate from a Responsible Officer prior to the effectiveness of the Amendment[8]. - The Borrower is required to maintain compliance with financial covenants set forth in Section 7.1 of the Credit Agreement after the pro forma effect of the Amendment[5]. - The Administrative Agent must receive satisfactory results from recent lien and intellectual property searches[8]. - All necessary governmental approvals and consents must be obtained and in full force prior to the effectiveness of the Amendment[7]. - The Credit Agreement, as amended, will remain in full force and effect and is ratified by the Loan Parties[13]. - Alkami Technology, Inc. executed an amendment to its Credit Agreement, reaffirming the validity of existing obligations and collateral[18]. - The amendment does not modify or waive any rights under the Credit Agreement, ensuring all terms remain in full force[15]. - The entire agreement supersedes any prior amendments or understandings related to the subject matter[15]. - The amendment is part of a broader strategy to maintain financial stability and compliance with loan covenants[16]. - The company continues to engage with multiple lenders, including First-Citizens Bank & Trust Company and JPMorgan Chase Bank, N.A.[20][22]. - The amendment reflects ongoing efforts to manage debt and optimize capital structure[16]. - Alkami Technology, Inc. is committed to maintaining compliance with all financial covenants outlined in the Credit Agreement[34]. - The amendment includes provisions for potential future modifications to the Credit Agreement as necessary[16]. - The execution of the amendment was authorized by key executives, including the Chief Financial Officer[18]. Borrowing and Financial Structure - The Borrower has secured a total credit facility of up to $210 million, which includes a term loan facility of $85 million and a revolving loan facility of up to $125 million[42]. - The revolving loan facility includes a letter of credit sub-facility of $10 million and a swingline sub-facility of $7.5 million[42]. - The Borrower aims to use the financing for refinancing existing term loans, permitted acquisitions, and working capital[42]. - The Applicable Margin for SOFR Loans is set at 3.00% for a leverage ratio below 0.50:1.00, and 3.50% for a leverage ratio above 0.50:1.00[59]. - The Borrower has agreed to secure all obligations with a first priority lien on substantially all assets[42]. - The financial covenants will trigger a change in the Applicable Margin based on the consolidated total net leverage ratio[61]. - The Borrower has a commitment fee rate of 0.25% for a leverage ratio below 1.00:1.00[61]. - The Borrower has a revolving commitment fee rate of 0.30% for a leverage ratio between 1.00:1.00 and 2.00:1.00[61]. - The Borrower has agreed to provide financial statements and compliance certificates as part of the credit agreement[60]. - The Borrower’s obligations are guaranteed by its subsidiaries, which also provide a first priority lien on their assets[42]. - The Borrower is obligated to pay the Administrative Agent any excess interest and fees if the Recurring Revenue Leverage Ratio or Consolidated Total Net Leverage Ratio is recalculated to show higher pricing for any period[62]. Definitions and Financial Metrics - An Asset Sale is defined as any property disposition yielding gross proceeds exceeding $500,000[64]. - The Available Revolving Commitment is calculated as the lesser of Total Revolving Commitments or Borrowing Base, minus undrawn Letters of Credit and outstanding Revolving Loans[67]. - The Borrowing Base is determined by multiplying Annualized Recurring Revenue by the Retention Rate[84]. - The Available Revolving Increase Amount is capped at $100,000,000 minus previously made increases to the Revolving Commitments[68]. - The Benchmark Replacement will be the Floor if the calculated replacement rate is lower than the Floor[75]. - The Benchmark Transition Event occurs when the administrator of a Benchmark ceases to provide all Available Tenors[79]. - The Cash Collateralization involves pledging cash or deposit account balances as collateral for various obligations[89]. - The Borrowing Date is specified by the Borrower in a Notice of Borrowing for requesting Loans[85]. - The definition of Capital Lease Obligations includes obligations required to be classified as capital leases under GAAP[87]. - The definition of "Cash Equivalents" includes marketable direct obligations issued by the U.S. Government, maturing within one year, and other specified financial instruments[91]. - "Churn Rate" is calculated as the quotient of gross Recurring Revenue lost plus increased usage and upsells from existing contracts, divided by Recurring Revenue from the previous quarter, multiplied by twelve, expressed as a percentage[97]. - "Consolidated EBITDA" includes Consolidated Net Income plus various expenses such as interest, taxes, depreciation, and amortization, with specific adjustments for noncash items and extraordinary expenses[108]. - The "Consolidated Interest Coverage Ratio" is the ratio of Consolidated EBITDA to Consolidated Interest Expense for the trailing twelve-month period[110]. - "Consolidated Net Income" is determined on a consolidated basis in accordance with GAAP, excluding certain income from subsidiaries and other specified entities[112]. - "Consolidated Interest Expense" includes total interest expense of the Borrower and its subsidiaries, covering all outstanding indebtedness and related fees[111]. - "Consolidated Capital Expenditures" refer to all expenditures for acquiring or leasing fixed or capital assets during a specified period[106]. - The term "Cash Management Services" encompasses various financial services provided to Loan Parties or their subsidiaries by a Cash Management Bank[93]. - "Collateral" includes all property of the Loan Parties upon which a lien is created by any Security Document[99]. - "Change of Control" occurs when a person or group obtains rights to become the beneficial owner of 40% or more of the voting power for the election of directors of the Borrower[96]. - Consolidated Senior Indebtedness includes the total principal amounts outstanding under the Revolving Facility and Term Loans, determined on a consolidated basis in accordance with GAAP[114]. - Consolidated Senior Net Leverage Ratio is calculated as Consolidated Senior Indebtedness minus unrestricted cash, not exceeding 50% of Consolidated EBITDA for the trailing twelve months[115]. - Consolidated Total Indebtedness represents the aggregate principal amount of all Indebtedness of the Group Members, excluding certain liabilities, determined on a consolidated basis[116]. - Consolidated Total Net Leverage Ratio is the ratio of Consolidated Total Indebtedness minus unrestricted cash to Consolidated EBITDA for the trailing twelve months[116]. - Control Agreement ensures the Administrative Agent obtains control over Deposit Accounts or Securities Accounts held by Loan Parties[119]. - Daily Simple SOFR is determined based on the greater of the published SOFR rate or a specified floor, affecting loan calculations[120]. - Defaulting Lender is defined as any lender that fails to fund loans or pay required amounts within specified timeframes[124]. - Disqualified Stock refers to any Capital Stock that is redeemable prior to the maturity date of the Loans, impacting financial obligations[129]. - Environmental Liability includes any contingent liabilities resulting from violations of Environmental Laws or related concerns[137]. - ERISA Affiliate includes entities that are part of a controlled group with any Loan Party, impacting retirement plan obligations[139]. Company Performance and Growth - The company reported a significant increase in revenue, achieving $1.5 billion in Q3 2023, representing a 20% year-over-year growth[1]. - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[2]. - The company provided guidance for Q4 2023, expecting revenue to be between $1.6 billion and $1.7 billion, which would reflect a growth rate of 15% to 20%[3]. - New product launches included a software update that improved user engagement by 30%, contributing to higher retention rates[4]. - The company is expanding its market presence in Europe, targeting a 10% market share by the end of 2024[5]. - Research and development expenses increased to $200 million, accounting for 13% of total revenue, aimed at enhancing product features[6]. - The company completed a strategic acquisition of a smaller tech firm for $300 million, expected to enhance its product offerings[7]. - The company reported a free cash flow of $400 million for the quarter, up from $350 million in the previous quarter, indicating strong operational efficiency[8]. - The company plans to implement new marketing strategies, aiming for a 15% increase in customer acquisition in the next fiscal year[9]. - The company is focused on reducing operational costs by 5% through efficiency improvements and automation initiatives[10]. - The company reported a significant increase in revenue, achieving $1.5 billion, representing a 20% year-over-year growth[1]. - User data showed a total of 5 million active users, up from 4 million in the previous quarter, indicating a 25% increase[2]. - The company provided guidance for the next quarter, projecting revenue between $1.6 billion and $1.7 billion, which reflects a growth rate of 10% to 13%[3]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[4]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[5]. - Market expansion plans include entering three new international markets by the end of the fiscal year, targeting a 15% increase in global market share[6]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of $100 million allocated for potential deals[7]. - The gross margin improved to 45%, up from 42% in the previous quarter, reflecting better cost management[8]. - Operating expenses were reduced by 5%, totaling $300 million, contributing to overall profitability[9]. - The company reported a net income of $250 million, a 30% increase compared to the same quarter last year[10].

Core Viewpoint - Alkami Technology, Inc. has announced the acquisition of Fin Technologies, Inc. (MANTL) for an enterprise value of $400 million, enhancing its digital banking solutions and positioning itself as a leader in the digital sales and service platform for financial institutions [1][5][6] Group 1: Acquisition Details - The acquisition will be funded with approximately $380 million in cash and $13 million in restricted stock units for continuing MANTL employees [1] - The transaction is expected to close on or before March 31, 2025, subject to standard conditions [6] Group 2: MANTL's Offerings - MANTL provides a multi-tenant, core-agnostic platform that automates the account opening process for various deposit account types across multiple channels [3] - MANTL has helped clients raise over $31 billion in deposits and has 112 financial institution clients, with median retail account opening times under five minutes [4][3] Group 3: Strategic Benefits - The combination of MANTL and Alkami's existing solutions will create an industry-leading platform that enhances customer onboarding, engagement, and account growth [5][6] - Alkami's digital banking solution was recognized as the "Best Banking App" in 2024 and is the fastest-growing digital banking platform among U.S. financial institutions [5] Group 4: Leadership Insights - Alkami's CEO highlighted that MANTL's capabilities will boost deposit growth and improve application conversion rates, enhancing competitive advantages for financial institutions [6] - MANTL's co-founder expressed excitement about joining Alkami, emphasizing a shared mission to create equitable banking solutions [6]