Summary
Alkami Technology posted fiscal 2022 second-quarter revenue of $50.5 million, up 37.7% from $36.7 million in the year-ago quarter. Revenue for the six months ended June 30, 2022 was $95.3 million, up 36.2% from $70.0 million. Segmint, the financial data analytics business acquired on April 25, 2022 for roughly $135.5 million in aggregate consideration, contributed $2.3 million of revenue in the quarter.
Growth came from registered user additions and higher revenue per user. Registered users reached 13.3 million at June 30, 2022, up 24.3% from 10.7 million a year earlier. Annual recurring revenue was $204.5 million, up 41.3% from $144.7 million.
Profitability moved in the opposite direction. Gross profit rose 32.9% to $27.3 million in the quarter, but gross margin slipped to 54.0% from 55.9%, a decline of 1.9 percentage points, on higher third-party partner costs, hosting and headcount, plus amortization tied to Segmint. Operating loss widened to $19.4 million from $9.8 million, and operating margin fell to -38.4% from -26.7%. Net loss widened to $20.2 million from $11.4 million, and diluted loss per share was -$0.22 against -$0.15. The six-month diluted loss per share was -$0.37, narrower than -$0.56, even though the year-to-date net loss of $33.6 million widened from $22.3 million. Adjusted EBITDA loss was $5.3 million, close to the $5.4 million loss a year earlier and far smaller than the GAAP net loss, because stock-based compensation and other non-cash items carry most of the gap.
Cash generation stayed negative. Net cash used in operating activities was $11.1 million in the quarter against $10.3 million a year ago, and $19.4 million for the six months against $12.3 million. Capital expenditures were $0.31 million in the quarter and $0.59 million for the six months. Alkami held $213.4 million in cash, cash equivalents and marketable securities at June 30, 2022, against an accumulated deficit of $347.5 million, and it carries an $85.0 million term loan and a $40.0 million revolver under a credit agreement that matures on April 29, 2025.
Contracted backlog keeps building. Remaining performance obligations were $696.0 million at June 30, 2022, up 29.9% from $536.0 million. Current deferred revenue was $9.24 million, up 39.6% from $6.62 million. Alkami served 182 financial institutions on its platform and more than 320 clients across ACH Alert, MK and Segmint as of June 30, 2022, which management described as 91.3% annual client growth. It closed seven new logos in the quarter, two of them banks, taking the first half to six credit unions and six banks. Add-on sales were more than 40% of new sales, and 39 new logos and significant add-on orders in implementation represent $38 million in annual recurring revenue.
Guidance for the third quarter of fiscal 2022 points to an adjusted EBITDA loss in the range of $6.0 million to $5.0 million. For the full fiscal year 2022, management guided to an adjusted EBITDA loss in the range of $20.0 million to $18.0 million. Segmint should add about $9.0 million of full-year revenue with an immaterial negative adjusted EBITDA, and its annual recurring revenue under contract at December 31, 2022 is guided to a range of $15 million to $17 million, a growth rate of 30% to 50%.
The risk list is long. There is a history of operating losses, operating cash flow is negative, competition is intense, and Segmint must be integrated. Sales cycles run roughly three to 12 months and implementations six to 12 months, so revenue timing depends on execution. The credit agreement requires recurring revenue over four consecutive quarters to be 10% higher than the prior-year period and monthly liquidity of $15.0 million or more.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $50.5M | $44.8M | +12.8% | $36.7M | +37.7% |
| Gross profit | $27.3M | $24.8M | +9.9% | $20.5M | +32.9% |
| Gross margin | 54.0% | 55.4% | -1.4 pp | 55.9% | -1.9 pp |
| Research & development | $16.6M | $14.2M | +17.2% | $12.8M | +29.5% |
| Sales & marketing | $10.2M | $8.0M | +27.7% | $5.4M | +88.4% |
| General & administrative | $18.7M | $15.7M | +19.5% | $12.1M | +54.7% |
| Total operating expenses | $46.7M | $37.8M | +23.4% | $30.3M | +53.8% |
| Operating income (loss) | -$19.4M | -$13.0M | -49.0% | -$9.8M | -97.5% |
| Operating margin | -38.4% | -29.0% | -9.3 pp | -26.7% | -11.6 pp |
| Net income (loss) | -$20.2M | -$13.4M | -50.9% | -$11.4M | -77.9% |
| Net margin | -40.0% | -29.9% | -10.1 pp | -31.0% | -9.1 pp |
| Diluted EPS | -$0.22 | -$0.15 | -$0.07 | -$0.15 | -$0.07 |
Risks
Net loss widened to $20.2 million in FY2022 Q2 from $11.4 million in FY2021 Q2, and operating loss widened to $19.4 million from $9.8 million, driven by increased operating expenses, stock-based compensation, and acquisition costs. Operating cash flow for FY2022 year to date was negative $19.4 million, down from negative $12.3 million in FY2021 year to date.
The April 25, 2022 acquisition of Segmint for approximately $135.5 million added integration and execution risk. Segmint contributed $2.3 million of revenue in FY2022 Q2 but also increased costs, including amortization of intangibles.
The Amended Credit Agreement entered April 29, 2022 includes an $85.0 million term loan and covenants requiring 10% annual recurring revenue growth and minimum liquidity of $15.0 million, creating risk of default if growth or liquidity targets are not met.
The continued global impact of COVID-19, including variants and renewed restrictions, has created uncertainty and challenges in executing sales and implementations, which may be exacerbated if actions or restrictions are prolonged.
The typical sales cycle ranges from approximately three to 12 months with implementation generally six to 12 months, making revenue timing unpredictable and dependent on competitive new client wins.
Revenue is focused on the financial services industry, making Alkami susceptible to downturns, consolidation, or changing technology and regulatory priorities among community, regional, and super-regional financial institutions.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Adjusted EBITDA
Registered Users
Revenue per Registered User (RPU)
Annual Recurring Revenue (ARR)
Average Contract Life
Annual client growth
FI Clients (Alkami Platform)
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q2 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.