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Sep 30, 2022

Alkami Tech Q3 2022 Earnings Report

Alkami experienced revenue growth and client expansion, but also faced increased net losses and adjusted EBITDA loss.

Key Takeaways

Alkami announced its Q3 2022 financial results, reporting a 34% increase in GAAP total revenue compared to the year-ago quarter, reaching $53.4 million. The company added ten new logos to the Alkami digital banking community and successfully renewed six clients' contracts. However, the GAAP net loss increased to $(20.0) million, and the adjusted EBITDA loss was $(4.6) million.

GAAP total revenue increased by 34% year-over-year to $53.4 million.

GAAP gross margin was 52%, compared to 56% in the year-ago quarter.

Exited the third quarter with 13.7 million digital banking users, up 20% from the year-ago quarter.

Annual Recurring Revenue (ARR) reached $214 million, a 38% increase compared to the year-ago quarter.

Total Revenue
$53.4M
Previous year: $39.8M
+34.3%
EPS
-$0.06
Previous year: -$0.08
-25.0%
GAAP Gross Margin
52%
Previous year: 56%
-7.1%
Adjusted EBITDA
-$4.6M
Previous year: -$6.1M
-24.6%
Annual Recurring Revenue
$214M
Previous year: $155M
+38.2%
Gross Profit
$27.6M
Previous year: $22.4M
+23.2%
Cash and Equivalents
$96.6M
Previous year: $314M
-69.3%
Free Cash Flow
-$5.05M
Previous year: -$4.91M
+2.9%
Total Assets
$485M
Previous year: $442M
+9.8%

Alkami Tech

Alkami Tech

Forward Guidance

Alkami provided guidance for its fourth quarter ending December 31, 2022.

Positive Outlook

  • GAAP total revenue in the range of $54.3 million to $55.3 million

Challenges Ahead

  • Adjusted EBITDA loss in the range of $(5.0) million to $(4.0) million.