Summary
Alkami Technology closed the quarter ended June 30, 2024 with revenue of $82.2 million, up 24.9% from $65.8 million in the year-ago quarter. Six-month revenue reached $158.3 million, up 25.9% from $125.8 million. Management tied the gain to registered user growth from new and existing clients and to higher revenue per registered user. Subscription services carry the model, and management treats that line as the engine of the quarter's growth.
Gross margin expanded on scale. GAAP gross margin was 59.4% for the quarter against 53.9% a year earlier, and gross profit rose to $48.8 million from $35.5 million. Non-GAAP gross margin reached 63.2%, compared with 58.7%. Management said revenue growth outpaced cost of revenues growth, and the company still points to a non-GAAP gross margin of 65% by 2026.
Losses narrowed in the quarter. GAAP operating loss was $13.2 million, better than the $17.9 million loss a year earlier. Net loss was $12.3 million, or $0.13 per diluted share, compared with $17.8 million, or $0.19 per diluted share. Adjusted EBITDA swung to $4.6 million from a loss of $2.5 million. Stock-based compensation remains large, at $15.0 million in the quarter and $28.6 million over the first six months, and it keeps GAAP profitability out of reach for now.
Operational metrics improved. Annual recurring revenue hit $321.3 million as of June 30, 2024, up 25.1%. Registered users reached 18.6 million, up 2.7 million, or 17.3%, from 15.8 million, and revenue per registered user rose 6.7% to $17.29. Alkami served 254 digital banking clients, up from 218 a year earlier. It signed eight new digital banking clients in the quarter, four credit unions and four banks, including a tier one credit union that management expects to rank among its largest clients by ARR. A large Midwestern bank that already used ACH Alert was also cross-sold the digital banking platform. Ten clients went live, and 39 sat in the implementation backlog, representing 1.6 million digital users. Remaining performance obligations reached $1.2 billion, up 24.2%, while deferred revenue of $12.6 million rose 42.6%. Net dollar retention was 115%, and trailing twelve month churn was 0%, against a long-term expectation of 2% to 3%.
Guidance points to steady growth. For the third quarter ending September 30, 2024, the company guided to adjusted EBITDA of $5.8 million to $6.8 million. For the full fiscal year ending December 31, 2024, it guided to adjusted EBITDA of $22.0 million to $24.0 million. Management also restated a 2026 objective of a 20% adjusted EBITDA margin and a 65% non-GAAP gross margin.
Cash generation turned. Operating cash flow was $1.5 million for the six months, against a use of $15.3 million in the prior-year period. Capital expenditures were $0.4 million in the quarter and $0.7 million for the six months, up from $0.2 million and $0.4 million. Cash and cash equivalents plus marketable securities totaled $87.4 million at June 30, 2024, with an accumulated deficit of $459.1 million, and no borrowings were outstanding under the revolver. On July 1, 2024, Alkami amended its credit agreement to push the revolver maturity to April 29, 2027 and lift total commitments to $125.0 million.
The risk list stays familiar. The 10-Q repeats a limited operating history and a history of operating losses. Dependence on financial institutions leaves the business exposed to consolidation or a pullback in technology spending in that sector. Sales cycles of three to 12 months and implementation timelines of six to 12 months push revenue recognition well past the signing date, which the 39-client backlog illustrates. Competition, cybersecurity breaches, and the work of integrating acquisitions such as Segmint are other named risks. Heavy stock-based compensation and a share count of 98,985,370 as of June 30, 2024 keep dilution in view.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $82.2M | $76.1M | +7.9% | $65.8M | +24.9% |
| Gross profit | $48.8M | $44.0M | +10.8% | $35.5M | +37.5% |
| Gross margin | 59.4% | 57.8% | +1.5 pp | 53.9% | +5.4 pp |
| Research & development | $23.9M | $22.8M | +4.8% | $20.9M | +14.6% |
| Sales & marketing | $17.0M | $13.8M | +22.5% | $13.9M | +22.2% |
| General & administrative | $20.6M | $19.3M | +6.7% | $18.2M | +13.2% |
| Total operating expenses | $62.0M | $56.4M | +9.9% | $53.3M | +16.2% |
| Operating income (loss) | -$13.2M | -$12.4M | -6.8% | -$17.9M | +26.1% |
| Operating margin | -16.1% | -16.2% | +0.2 pp | -27.2% | +11.1 pp |
| Net income (loss) | -$12.3M | -$11.4M | -7.7% | -$17.8M | +30.7% |
| Net margin | -15.0% | -15.0% | +0.0 pp | -27.0% | +12.0 pp |
| Diluted EPS | -$0.13 | -$0.12 | -$0.01 | -$0.19 | +$0.06 |
Risks
Alkami faces intense competition in the digital banking markets it serves; each digital banking client win is a competitive takeaway, and future success depends on product depth, technological excellence and sales execution.
Revenue depends almost entirely on the financial services industry, so a downturn, consolidation or decrease in technological spend in that industry could reduce demand for the Alkami Digital Banking Platform.
A typical sales cycle ranges from approximately three to 12 months, with subsequent implementation generally six to 12 months, delaying revenue recognition and making results sensitive to the timing of competitive takeaway wins.
Client renewals are a key lever for long-term gross margin targets, with approximately 70% gross margin upon renewal; the company had six and 12 client renewals for the three and six months ended June 30, 2024, respectively.
Managing rapid growth and retaining management and key employees is critical as operating expenses increased across all aspects of the business, including research and development, sales and marketing, and general and administrative functions.
The platform relies on data centers operated by third parties and third-party hosting providers, and integrates with more than 300 back-office and fintech solutions as of June 30, 2024, creating operational and integration risk.
SaaS KPIs
All quarters →Non-GAAP Gross Margin
Adjusted EBITDA
Registered Users
Revenue per Registered User (RPU)
Annual Recurring Revenue (ARR)
Digital Banking Platform Clients
LTM churn
Clients with ARR $1M
Remaining Performance Obligations (RPO)
SaaS Subscription Revenue (% of Total Revenue)
Summary, forecast, risks and KPIs are extracted from ALKAMI TECHNOLOGY, INC.'s SEC filings for Q2 FY2024 (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.