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Alkami Technology Reports Strong Fourth Quarter 2024 Results

Alkami Technology, Inc. (Nasdaq: ALKT), a premier cloud-based digital banking solutions provider for financial institutions, has shared its impressive financial results for the fourth quarter ending December 31, 2024. The company announced that their total revenue reached $89.7 million, marking a significant 25.6% increase compared to the same quarter last year. This growth reflects Alkami's robust position in the digital banking sector and their commitment to delivering high-quality services to their clients.

Financial Highlights

Alkami’s key financial metrics for the fourth quarter are as follows:

• - Total GAAP Revenue: $89.7 million
• - Gross Margin: 59.3%, up from 56.0% in the year-ago quarter
• - Non-GAAP Gross Margin: 63.1%, also increased from 60.3%
• - Net Loss: $(7.6) million, an improvement from $(12.7) million
• - Adjusted EBITDA: $10.2 million, sharply increased from $3.1 million in the previous year

Additionally, for the full year of 2024, Alkami reported total revenue of $333.8 million, reflecting a 26.1% rise compared to the previous year. The GAAP gross margin for the year stood at 58.9%, improving from 54.4% in 2023, while the net loss decreased to $(40.8) million from $(62.9) million the prior year.

Acquisition of MANTL

In an exciting development, Alkami has signed a definitive agreement to acquire Fin Technologies, Inc. (MANTL) for an enterprise value of $400 million. This strategic move is expected to solidify Alkami's reputation as a leader in digital banking solutions. MANTL provides a compelling onboarding and account opening solution that enhances the customer experience for financial institutions (FIs).

Alkami plans to fund this acquisition with approximately $380 million in cash, alongside restricted stock units valued around $13 million for continuing MANTL employees. This integration promises to create a powerful platform for digital banking and is designed to facilitate the onboarding of commercial, business, and retail customers across various channels.

Alex Shootman, CEO of Alkami, stated, “Our fourth quarter results reflect our ongoing commitment to growth and profitability. The addition of MANTL will further enhance our offerings and allow us to serve our clients even better, creating more significant opportunities within the financial services market.”

Outlook for 2025

Looking ahead, Alkami has shared its financial guidance for the first quarter of 2025, projecting total revenues between $93.5 million and $95.0 million, with an adjusted EBITDA forecast of $9.5 million to $10.5 million.

For the entire fiscal year ending December 31, 2025, the company expects GAAP revenues in the range of $440.0 million to $445.0 million, alongside an adjusted EBITDA between $47.0 million and $51.0 million. Following the completion of the MANTL acquisition, Alkami anticipates an additional revenue contribution of approximately $30 million for 2025, albeit with an adjusted EBITDA initial loss of $5 million as integration efforts commence.

Closing Thoughts

Alkami Technology's results and its strategic acquisition of MANTL underline its strong positioning within the competitive digital banking landscape. As the company enjoys a substantial increase in user registrations—ending 2024 with 20 million registered users—its continuous growth reflects a promising trajectory. Stakeholders will be eager to see how this acquisition benefits Alkami’s future performance and market expansion in the financial technology arena.

The company will host a conference call today at 5:00 PM ET to discuss these results further, offering investors insights into their financial health and strategic direction going forward.