Alkami Technology's Strong Revenue Growth and Focus on SaaS Subscription Model

By Bobby Samwell • Thursday, August 01 15:19 • Permanent Link

Alkami Technology, Inc. has recently released its 10-Q report, providing insights into the company's financial performance and operations. Alkami Technology, headquartered in Plano, Texas, specializes in offering cloud-based digital banking solutions to community, regional, and super-regional financial institutions in the United States. The company's Alkami Platform enables financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency through a proprietary, cloud-based, and multi-tenant architecture.

In the 10-Q report, Alkami Technology highlights its financial performance for the three and six months ended June 30, 2024. The company reported total revenues of $82.2 million and $158.3 million for the respective periods, representing a 24.9% and 25.9% increase year-over-year. Notably, SaaS subscription revenues accounted for 95.4% and 95.6% of total revenues for the three and six months ended June 30, 2024, reflecting the company's focus on subscription-based contractual arrangements.

Alkami Technology also disclosed its net losses, reporting $12.3 million and $23.8 million for the three and six months ended June 30, 2024, respectively. These losses were attributed to significant investments in sales, marketing, product development, and post-sales client activities. The company emphasized its strategy of growing its financial institution client base, with 254 FIs served through the Alkami Digital Banking Platform as of June 30, 2024, and over 700 clients when including those subscribing to specific products.

The report highlighted Alkami Technology's commitment to innovation, as evidenced by its research and development spend, which accounted for 29.1% and 29.5% of its revenues for the three and six months ended June 30, 2024, respectively. The company's ability to deepen client customer penetration and expand its product suite were also emphasized as key factors affecting its operating results.

Today the company's shares have moved 2.2% to a price of $33.46. For more information, read the company's full 10-Q submission here.

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