Alkami Technology Inc (ALKT, Financial), a leading cloud-based digital banking solutions provider, announced its financial results for the third quarter ending September 30, 2023, on November 1, 2023. The company reported a significant increase in revenue and improved gross margin, along with a decrease in net loss.
Financial Highlights
Alkami Technology Inc (ALKT, Financial) reported GAAP total revenue of $67.7 million for Q3 2023, marking a 27% increase compared to the year-ago quarter. The GAAP gross margin improved to 54.0% from 51.6% in the year-ago quarter. The company also reported a GAAP net loss of $15.4 million, a significant decrease from the $20.0 million loss in the year-ago quarter. Furthermore, the company's Adjusted EBITDA turned positive, reaching $0.8 million compared to a loss of $4.6 million in the year-ago quarter.
Chief Executive Officer, Alex Shootman, commented, “In the third quarter, we delivered another quarter of strong performance. Year to date, we added 23 new digital banking platform clients, including 7 in the third quarter. We have good visibility into Q4 digital banking platform decisions and anticipate robust new client wins as we close out the year.”
Client Growth and Market Strength
Alkami Technology Inc (ALKT, Financial) reported robust client growth, adding 23 new digital banking platform clients year to date, including 7 in the third quarter. The company exited the quarter with 16.9 million digital banking users on the Alkami platform, up 23% from the year-ago quarter. The company now has 35 new clients and significant add-on sales orders in implementation, representing a total of $42 million in Annual Recurring Revenue (ARR). The company's ARR reached $275 million, up 29% compared to the year-ago quarter.
Financial Outlook
For the fourth fiscal quarter ending December 31, 2023, Alkami Technology Inc (ALKT, Financial) expects GAAP total revenue in the range of $70.5 million to $71.5 million and Adjusted EBITDA in the range of $2.5 million to $3.0 million. The company also updated its guidance for the fiscal year ending December 31, 2023, expecting GAAP total revenue in the range of $264 million to $265 million and an Adjusted EBITDA loss in the range of ($2.1) million to ($1.6) million.
Balance Sheet Summary
As of September 30, 2023, Alkami Technology Inc (ALKT, Financial) reported total assets of $482.2 million, including cash and cash equivalents of $76.4 million and marketable securities of $101.9 million. The company's total liabilities stood at $160.5 million, and total stockholders' equity was $321.7 million.
Alkami Technology Inc (ALKT, Financial) continues to demonstrate strong performance, with significant revenue growth, improved gross margin, and a decrease in net loss. The company's robust client growth and strong market position further underscore its potential for continued success.
Explore the complete 8-K earnings release (here) from Alkami Technology Inc for further details.
