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Dec 31, 2023

Alkami Tech Q4 2023 Earnings Report

Alkami's Q4 2023 earnings demonstrated strong revenue growth and improved profitability.

Key Takeaways

Alkami Technology, Inc. reported a 29% increase in GAAP total revenue, reaching $71.4 million for Q4 2023. The company also improved its GAAP gross margin to 56% and achieved an adjusted EBITDA of $3.1 million, compared to a loss in the year-ago quarter. Alkami added 3 million registered users, ending the year with 17.5 million users.

GAAP total revenue increased by 29% year-over-year to $71.4 million.

GAAP gross margin improved to 56% from 52% in the year-ago quarter.

Adjusted EBITDA was $3.1 million, a significant improvement from the $(4.0) million loss in the prior year.

The company ended the year with 17.5 million registered users, adding 3 million during the year.

Total Revenue
$71.4M
Previous year: $55.5M
+28.5%
EPS
$0.02
Previous year: -$0.05
-140.0%
GAAP Gross Margin
56%
Previous year: 52%
+7.7%
Adjusted EBITDA
$3.1M
Previous year: -$3.97M
-178.2%
Annual Recurring Revenue
$291M
Previous year: $226M
+28.7%
Gross Profit
$39.9M
Previous year: $28.7M
+39.3%
Cash and Equivalents
$40.9M
Previous year: $109M
-62.4%
Free Cash Flow
-$5.59M
Previous year: -$13.8M
-59.6%
Total Assets
$400M
Previous year: $489M
-18.2%

Alkami Tech

Alkami Tech

Forward Guidance

Alkami provided financial outlook for Q1 2024 and full year 2024.

Positive Outlook

  • GAAP total revenue in the range of $74.5 million to $76 million for Q1 2024.
  • Adjusted EBITDA in the range of $2.5 million to $3.5 million for Q1 2024.
  • GAAP total revenue in the range of $327 million to $333 million for the full year 2024.
  • Adjusted EBITDA in the range of $20 million to $23 million for the full year 2024.
  • Focus on helping clients get to market faster.

Challenges Ahead

  • Financial outlook is based on current expectations and is forward-looking.
  • Actual results could differ materially depending on market conditions.
  • Factors include the company's limited operating history and ability to manage future growth.
  • Reliance on third-party software, content and services.
  • Intense competition in the industry.