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Alkami Announces First Quarter 2024 Financial Results
来源: Nasdaq GlobeNewswire / 01 5月 2024 16:05:00 America/New_York
PLANO, Texas, May 01, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024.
First Quarter 2024 Financial Highlights
- GAAP total revenue of $76.1 million, an increase of 26.9% compared to the year-ago quarter;
- GAAP gross margin of 57.8%, compared to 53.6% in the year-ago quarter;
- Non-GAAP gross margin of 61.7%, compared to 58.1% in the year-ago quarter;
- GAAP net loss of $(11.4) million, compared to $(17.0) million in the year-ago quarter; and
- Adjusted EBITDA of $3.8 million, compared to a loss of $(2.9) million in the year-ago quarter.
Comments on the News
Alex Shootman, Chief Executive Officer, said, “In the first quarter, we delivered another quarter of robust performance. We ended Q1 with 18.1 million live registered users, up 3.0 million compared to the prior-year quarter as we continue to lead the industry in market share gains. In February of 2024, we renewed our largest client, which is a top 10 credit union, more than doubling the original total contract value and extending the relationship for another five years. And we continued our progress on the key initiatives that will position Alkami to be the premier digital banking provider.”
Shootman added, “In April, we hosted our largest-ever user conference, with more than 800 in-person attendees representing 220 financial institutions. Feedback from prospects and existing clients was consistent and unequivocal – there is a pronounced and growing need for modernization among regional and community financial institutions, and Alkami is well positioned to continue delivering market-leading solutions and strong growth.”
Bryan Hill, Chief Financial Officer, said, “We grew digital banking users on the Alkami platform by 20% compared to the prior-year quarter. We exited the quarter with Annual Recurring Revenue of $303 million, up 26.1% compared to the year-ago quarter. Our revenue per user continued to grow, ending the quarter at $16.71, driven by add-on sales and the addition of new clients who tend to onboard at a higher average RPU. We also expanded non-GAAP gross margin to 61.7%, representing an increase of approximately 360 basis points, demonstrating continued progress towards our 2026 non-GAAP gross margin objective of 65%.”
2024 Financial Outlook
Alkami’s financial outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement Regarding Forward-Looking Statements.”
Alkami is providing guidance for its second quarter ending June 30, 2024 of:
- GAAP total revenue in the range of $80.5 million to $82.0 million;
- Adjusted EBITDA in the range of $2.8 million to $3.8 million.
Alkami is providing guidance for its fiscal year ending December 31, 2024 of:
- GAAP total revenue in the range of $328.5 million to $333.0 million;
- Adjusted EBITDA in the range of $20.5 million to $23.5 million.
Conference Call Information
The Company will host a conference call at 5:00 p.m. ET today to discuss its financial results with investors. A live webcast of the event will be available on the Alkami investor relations website at investors.alkami.com. In addition, a live dial-in will be available domestically at 1-800-836-8184 and internationally at 1-646-357-8785 using passcode 64781. A replay will be available in the Investor Relations section of the Alkami website.About Alkami
Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly and build thriving digital communities. Alkami helps clients transform through retail and business banking, digital account opening, payment security, and data analytics and marketing solutions. To learn more, visit https://www.alkami.com/.Cautionary Statement Regarding Forward-Looking Statements
This press release 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 management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “expects,” “believes,” “plans,” or similar expressions and the negatives of those terms. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward-looking statements. Factors that may materially affect such forward-looking statements include: Our limited operating history and history of operating losses; our ability to manage future growth; our ability to attract new clients and retain and expand existing clients’ use of our solutions; the unpredictable and time-consuming nature of our sales cycles; our ability to maintain, protect and enhance our brand; our ability to accurately predict the long-term rate of client subscription renewals or adoption of our solutions; our reliance on third-party software, content and services; our ability to effectively integrate our solutions with other systems used by our clients; intense competition in our industry; any downturn, consolidation or decrease in technology spend in the financial services industry, including as a result of recent closures of certain financial institutions and liquidity concerns at other financial institutions; our ability and the ability of third parties on which we rely to prevent and identify breaches of security measures (including cybersecurity) and resulting disruptions of our systems or operations and unauthorized access to client customer and other data; our ability to successfully integrate acquired companies or businesses; our ability to comply with regulatory and legal requirements and developments; our ability to attract and retain key employees; the political, economic and competitive conditions in the markets and jurisdictions where we operate; our ability to maintain, develop and protect our intellectual property; our ability to respond to evolving technological requirements to develop or acquire new and enhanced products that achieve market acceptance in a timely manner; our ability to estimate our expenses, future revenues, capital requirements, our needs for additional financing and our ability to obtain additional capital and other factors described in the Company’s filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Explanation of Non-GAAP Financial Measures and Key Business Metrics
The company reports its financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, the company believes that, in order to properly understand its short-term and long-term financial, operational and strategic trends, it may be helpful for investors to exclude certain non-cash or non-recurring items when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in both frequency and impact on continuing operations. The company also uses results of operations excluding such items to evaluate the operating performance of Alkami and compare it against prior periods, make operating decisions, determine executive compensation, and serve as a basis for long-term strategic planning. These non-GAAP financial measures provide the company with additional means to understand and evaluate the operating results and trends in its ongoing business by eliminating certain non-cash expenses and other items that Alkami believes might otherwise make comparisons of its ongoing business with prior periods more difficult, obscure trends in ongoing operations, reduce management’s ability to make useful forecasts, or obscure the ability to evaluate the effectiveness of certain business strategies and management incentive structures. In addition, the company also believes that investors and financial analysts find this information to be helpful in analyzing the company’s financial and operational performance and comparing this performance to the company’s peers and competitors.
The company defines “Non-GAAP Cost of Revenues” as cost of revenues, excluding (1) amortization and (2) stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.
The company defines “Non-GAAP Gross Margin” as gross profit, plus (1) amortization and (2) stock-based compensation expense, all divided by revenue. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.
The company defines “Non-GAAP Research and Development Expense” as research and development expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to product innovation.
The company defines “Non-GAAP Sales and Marketing Expense” as sales and marketing expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to its sales and marketing strategies.
The company defines “Non-GAAP General and Administrative Expense” as general and administrative expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s underlying expense structure to support corporate activities and processes.
The company defines “Non-GAAP Net Loss” as net loss, plus (1) provision for income taxes (2) gain on financial instruments, (3) amortization, (4) stock-based compensation expense, and (5) acquisition-related expenses. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.
The company defines “Adjusted EBITDA” as net loss plus (1) provision for income taxes, (2) gain on financial instruments, (3) interest (income) expense, net, (4) depreciation and amortization (5) stock-based compensation expense, and (6) acquisition-related expenses. The company believes adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.
In addition, the Company also uses the following important operating metrics to evaluate its business:
The company defines “Annual Recurring Revenue (ARR)” by aggregating annualized recurring revenue related to SaaS subscription services recognized in the last month of the reporting period as well as the next 12 months of expected implementation services revenues in the last month of the reporting period. We believe ARR provides important information about our future revenue potential, our ability to acquire new clients, and our ability to maintain and expand our relationship with existing clients.
The company defines “Registered Users” as an individual or business related to an account holder of an FI client on our digital banking platform who has registered to use one or more of our solutions and has current access to use those solutions as of the last day of the reporting period presented. We price our digital banking platform based on the number of registered users, so as the number of registered users of our digital banking platform increases, our ARR grows. We believe growth in the number of registered users provides important information about our ability to expand market adoption of our digital banking platform and its associated software products, and therefore to grow revenues over time.
The company defines “Revenue per Registered User (RPU)” by dividing ARR for the reporting period by the number of registered users as of the last day of the reporting period. We believe RPU provides important information about our ability to grow the number of software products adopted by new clients over time, as well as our ability to expand the number of software products that our existing clients add to their contracts with us over time.
The company does not provide a reconciliation of our adjusted EBITDA outlook to GAAP net loss because certain significant information required for such reconciliation is not available without unreasonable efforts, including provision for income taxes, loss on financial instruments, stock-based compensation expense, and acquisition-related expenses, net, all of which may be significant.
ALKAMI TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (UNAUDITED) March 31, December 31, 2024 2023 Assets Current assets Cash and cash equivalents $ 44,179 $ 40,927 Marketable securities 43,125 51,196 Accounts receivable, net 35,717 35,499 Deferred costs, current 11,081 10,329 Prepaid expenses and other current assets 11,531 10,634 Total current assets 145,633 148,585 Property and equipment, net 18,217 16,946 Right-of-use assets 15,479 15,754 Deferred costs, net of current portion 31,499 30,734 Intangibles, net 34,111 35,807 Goodwill 148,050 148,050 Other assets 4,653 3,949 Total assets $ 397,642 $ 399,825 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 6,533 $ 7,478 Accrued liabilities 16,902 19,763 Deferred revenues, current portion 12,497 10,984 Lease liabilities, current portion 1,242 1,205 Total current liabilities 37,174 39,430 Deferred revenues, net of current portion 17,525 15,384 Deferred income taxes 1,738 1,713 Lease liabilities, net of current portion 18,065 18,052 Other non-current liabilities 233 305 Total liabilities 74,735 74,884 Stockholders’ Equity Preferred stock, $0.001 par value, 10,000,000 shares authorized and 0 shares issued and outstanding as of March 31, 2024 and December 31, 2023 — — Common stock, $0.001 par value, 500,000,000 shares authorized; and 97,515,483 and 96,722,098 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 98 97 Additional paid-in capital 769,608 760,210 Accumulated deficit (446,799 ) (435,366 ) Total stockholders’ equity 322,907 324,941 Total liabilities and stockholders' equity $ 397,642 $ 399,825 ALKAMI TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share data) (UNAUDITED) Three months ended March 31, 2024 2023 Revenues $ 76,127 $ 59,996 Cost of revenues(1) 32,095 27,858 Gross profit 44,032 32,138 Operating expenses: Research and development 22,820 20,549 Sales and marketing 13,843 10,878 General and administrative 19,315 17,111 Acquisition-related expenses 60 186 Amortization of acquired intangibles 359 360 Total operating expenses 56,397 49,084 Loss from operations (12,365 ) (16,946 ) Non-operating income (expense): Interest income 1,082 1,726 Interest expense (73 ) (1,757 ) Gain on financial instruments 112 210 Loss before income taxes (11,244 ) (16,767 ) Provision for income taxes 189 196 Net loss $ (11,433 ) $ (16,963 ) Net loss per share attributable to common stockholders: Basic and diluted $ (0.12 ) $ (0.18 ) Weighted average number of shares of common stock outstanding: Basic and diluted 96,945,232 92,397,341 (1) Includes amortization of acquired technology of $1.3 million for both the three months ended March 31, 2024 and 2023.
ALKAMI TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (UNAUDITED) Three months ended March 31, 2024 2023 Cash flows from operating activities: Net loss $ (11,433 ) $ (16,963 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization expense 2,562 2,586 Accrued interest on marketable securities, net (294 ) (398 ) Stock-based compensation expense 13,552 11,440 Amortization of debt issuance costs 32 45 Gain on financial instruments (112 ) (210 ) Deferred taxes 25 47 Changes in operating assets and liabilities: Accounts receivable (218 ) (2,183 ) Prepaid expenses and other current assets (1,633 ) (2,654 ) Accounts payable and accrued liabilities (3,873 ) (1,290 ) Deferred costs (1,311 ) (859 ) Deferred revenues 3,654 824 Net cash provided by (used in) operating activities 951 (9,615 ) Cash flows from investing activities: Purchase of marketable securities (7,149 ) (20,987 ) Proceeds from sales, maturities and redemptions of marketable securities 15,626 38,122 Purchases of property and equipment (306 ) (229 ) Capitalized software development costs (1,363 ) (1,141 ) Net cash provided by investing activities 6,808 15,765 Cash flows from financing activities: Payments for taxes related to net settlement of equity awards (5,678 ) (1,984 ) Proceeds from stock option exercises 1,171 1,416 Net cash used in financing activities (4,507 ) (568 ) Net increase in cash and cash equivalents and restricted cash 3,252 5,582 Cash and cash equivalents and restricted cash, beginning of period 40,927 112,337 Cash and cash equivalents and restricted cash, end of period $ 44,179 $ 117,919 ALKAMI TECHNOLOGY, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES (In thousands, except per share data) (UNAUDITED) Three Months Ended March 31, 2024 2023 GAAP total revenues $ 76,127 59,996 March 31, 2024 2023 Annual Recurring Revenue (ARR) $ 302,659 $ 240,050 Registered Users 18,113 15,119 Revenue per Registered User (RPU) $ 16.71 $ 15.88 Non-GAAP Cost of Revenues Set forth below is a presentation of the company’s “Non-GAAP Cost of Revenues.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP cost of revenues $ 32,095 $ 27,858 Amortization (1,775 ) (1,599 ) Stock-based compensation expense (1,178 ) (1,146 ) Non-GAAP cost of revenues $ 29,142 $ 25,113 Non-GAAP Gross Margin Set forth below is a presentation of the company’s “Non-GAAP Gross Margin.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP gross margin 57.8 % 53.6 % Amortization 2.3 % 2.6 % Stock-based compensation expense 1.6 % 1.9 % Non-GAAP gross margin 61.7 % 58.1 % Non-GAAP Research and Development Expense Set forth below is a presentation of the company’s “Non-GAAP Research and Development Expense.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP research and development expense $ 22,820 $ 20,549 Stock-based compensation expense (3,998 ) (3,775 ) Non-GAAP research and development expense $ 18,822 $ 16,774 Non-GAAP Sales and Marketing Expense Set forth below is a presentation of the company’s “Non-GAAP Sales and Marketing Expense.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP sales and marketing expense $ 13,843 $ 10,878 Stock-based compensation expense (2,031 ) (1,590 ) Non-GAAP sales and marketing expense $ 11,812 $ 9,288 Non-GAAP General and Administrative Expense Set forth below is a presentation of the company’s “Non-GAAP General and Administrative Expense.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP general and administrative expense $ 19,315 $ 17,111 Stock-based compensation expense (6,345 ) (4,733 ) Non-GAAP general and administrative expense $ 12,970 $ 12,378 Non-GAAP Net Loss Set forth below is a presentation of the company’s “Non-GAAP Net Loss.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP net loss $ (11,433 ) $ (16,963 ) Provision for income taxes 189 196 Gain on financial instruments (112 ) (210 ) Amortization 2,134 1,959 Stock-based compensation expense 13,552 11,244 Acquisition-related expenses 60 186 Non-GAAP net loss $ 4,390 $ (3,588 ) Adjusted EBITDA Set forth below is a presentation of the company’s “Adjusted EBITDA.” Please reference the “Explanation of Non-GAAP Measures” section. Three Months Ended March 31, 2024 2023 GAAP net loss $ (11,433 ) $ (16,963 ) Provision for income taxes 189 196 Gain on financial instruments (112 ) (210 ) Interest (income) expense, net (1,009 ) 31 Depreciation and amortization 2,562 2,586 Stock-based compensation expense 13,552 11,244 Acquisition-related expenses 60 186 Adjusted EBITDA $ 3,809 $ (2,930 ) Investor Relations Contact
Steve Calk
ir@alkami.comMedia Relations Contacts
Marla Pieton
marla.pieton@alkami.comValerie Kerner
alkami@fullyvested.com
