Alkami(US:ALKT)2025-10-31 11:52Revenue Growth - Total revenues for the three months ended September 30, 2025, were $113.0 million, a 31.5% increase from $85.9 million in the same period of 2024 [101]. - For the nine months ended September 30, 2025, total revenues reached $322.8 million, representing a 32.2% increase compared to $244.2 million in 2024 [101]. - SaaS subscription revenues accounted for 95.5% of total revenues for the three months ended September 30, 2025, compared to 94.9% in the same period of 2024 [101]. - SaaS subscription services revenue for the three months ended September 30, 2025, was $107.867 million, compared to $82.054 million in 2024, an increase of 31.4% [112]. - Annual Recurring Revenue (ARR) reached $449.034 million, up $106.933 million, or 31.3%, from $342.101 million in 2024 [132]. - Revenue per Registered User (RPU) increased to $20.83, up $3.29, or 18.8%, from $17.54 in 2024 [132]. - The revenue contribution from the MANTL acquisition was $11.0 million for the three months ended September 30, 2025 [133]. Financial Performance - The company incurred net losses of $14.8 million and $36.2 million for the three and nine months ended September 30, 2025, respectively [101]. - Gross margin for the three months ended September 30, 2025, was 56.8%, compared to 58.9% for the same period in 2024 [115]. - Net loss for the three months ended September 30, 2025, was $14.804 million, compared to a net loss of $9.442 million in 2024 [125]. - Total operating expenses for the three months ended September 30, 2025, increased by $15.978 million, or 26.2%, to $77.023 million [138]. - Non-operating expenses increased by $6.8 million for the nine months ended September 30, 2025, primarily due to higher net interest expenses [149]. Client and Market Expansion - As of September 30, 2025, the company served 291 financial institutions (FIs) through its platform, with over 1,000 clients when including those using products from acquisitions [105]. - The company implemented 32 new clients onto its platform, representing 0.9 million digital users, contributing to revenue growth [134]. - Registered users grew to 21,552, an increase of 2,053 users, or 10.5%, compared to 19,499 in 2024 [132]. Expenses and Investments - Research and development expenses were 26.6% and 27.0% of revenues for the three and nine months ended September 30, 2025, respectively [108]. - Sales and marketing expenses for the three months ended September 30, 2025, were $19.337 million, up from $14.406 million in 2024, representing a growth of 34.1% [125]. - Research and development expenses rose by $5.958 million, or 24.7%, for the three months ended September 30, 2025, primarily due to personnel-related costs [139]. - Sales and marketing expenses increased by $4.931 million, or 34.2%, for the three months ended September 30, 2025, driven by personnel-related costs [141]. - The company expects to continue increasing investments in implementation, client support teams, and technology infrastructure to support growth [115]. Cash Flow and Financing - The company had $90.9 million in cash and cash equivalents as of September 30, 2025, with an accumulated deficit of $512.4 million [153]. - Net cash provided by operating activities was $26.3 million for the nine months ended September 30, 2025, compared to $12.5 million for the same period in 2024 [157][160]. - Net cash used in investing activities was $393.5 million for the nine months ended September 30, 2025, primarily due to the acquisition of MANTL [161]. - Net cash provided by financing activities was $330.1 million for the nine months ended September 30, 2025, mainly from the issuance of the 2030 Convertible Notes [163]. Acquisitions and Related Costs - The company completed the acquisition of MANTL for approximately $375 million on March 17, 2025, enhancing its onboarding and account opening solutions [102]. - Acquisition-related expenses for the nine months ended September 30, 2025, were $3.1 million, primarily due to costs associated with the acquisition of MANTL [145]. - Amortization of acquired intangibles increased to $4.0 million for the nine months ended September 30, 2025, compared to $1.1 million for the same period in 2024 [146][147]. - The company recorded a loss on impairment of intangible assets of $1.7 million for the nine months ended September 30, 2025, related to the acquisition of MANTL [148]. - The company recognized a net deferred tax liability of $12.6 million due to the acquisition of MANTL, which also led to a provisional deferred tax benefit of $12.0 million [152].