NASDAQ Framework: Alkami Technology Inc.

Cloud-based digital banking solutions provider 1.

Alkami Technology, Inc. (Nasdaq: ALKT) is a leading cloud-based digital banking solutions provider for financial institutions in the United States. Founded in 2009 and headquartered in Plano, Texas, Alkami enables clients to grow confidently, adapt quickly, and build thriving digital communities through its comprehensive platform. The Alkami Platform supports retail and commercial banking, digital account opening, payment security, and data analytics and marketing solutions, helping financial institutions onboard and engage new users, accelerate revenues, and enhance operational efficiency 2 3 4.

2: About Alkami Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and commercial banking, digital account opening, and data and marketing solutions. To learn more, visit www.alkami.com. View Source3: Alkami Technology, Inc. offers cloud-based digital banking solutions in the United States. The company's Alkami Platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, and multi-tenant architecture. It serves community, regional, super-regional credit unions, and banks. The company was founded in 2009 and is headquartered in Plano, Texas. View Source4: Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and business banking, digital account opening, payment security, and data analytics and marketing solutions. To learn more, visit www.alkami.com. View Source

UNKNOWN

The provided information does not specify whether Alkami Technology Inc. is still led by its founders or if the founders are heavily involved in the company's current operations.

MEDIUM RISK

Alkami Technology Inc. has shown significant revenue growth and improved gross margins, indicating a positive trend in its financial performance 5 6. However, the company still faces challenges in achieving profitability, as evidenced by its net margin of -15.02% and a net loss of $11.4 million in the first quarter of 2024, despite improvements from the previous year 7 8. Additionally, its return on equity (ROE) and return on assets (ROA) are below industry averages, suggesting difficulties in maximizing financial performance 9 10. While the company's debt-to-equity ratio is low, indicating less reliance on debt financing 11, the ongoing net losses and below-average profitability metrics place Alkami in a medium-risk category.

5: Alkami announced a GAAP total revenue of $76.1 million for the first quarter, a 26.9% increase from the previous year, surpassing the estimated revenue of $75.54 million. The GAAP gross margin improved to 57.8%, up from 53.6% in the year-ago quarter. Notably, the non-GAAP gross margin also saw an increase, reaching 61.7% compared to 58.1% last year. Despite these gains, the company recorded a GAAP net loss of $11.4 million, which, while substantial, marks an improvement over the $17.0 million loss reported in the same period last year. View Source6: Positive Revenue Trend: Examining Alkami Technology's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.89% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector. View Source7: Alkami announced a GAAP total revenue of $76.1 million for the first quarter, a 26.9% increase from the previous year, surpassing the estimated revenue of $75.54 million. The GAAP gross margin improved to 57.8%, up from 53.6% in the year-ago quarter. Notably, the non-GAAP gross margin also saw an increase, reaching 61.7% compared to 58.1% last year. Despite these gains, the company recorded a GAAP net loss of $11.4 million, which, while substantial, marks an improvement over the $17.0 million loss reported in the same period last year. View Source8: Net Margin: Alkami Technology's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -15.02%, the company may face hurdles in effective cost management. View Source9: Return on Equity (ROE): Alkami Technology's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -3.53%, the company may face hurdles in achieving optimal financial performance. View Source10: Return on Assets (ROA): Alkami Technology's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.87%, the company may face hurdles in achieving optimal financial performance. View Source11: Debt Management: Alkami Technology's debt-to-equity ratio is below the industry average. With a ratio of 0.06, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors. View Source

NO

The provided information does not indicate that Alkami Technology Inc. is launching any new product offerings. The focus is on their existing platform and services, client satisfaction, and strategic initiatives [fERROR]NO

The provided information does not indicate that Alkami Technology Inc. is launching any new product offerings. The focus is on their existing platform and services, client satisfaction, and strategic initiatives [fERROR][fERROR]NO

The provided information does not indicate that Alkami Technology Inc. is launching any new product offerings. The focus is on their existing platform and services, client satisfaction, and strategic initiatives [fERROR][fERROR][fERROR]NO

The provided information does not indicate that Alkami Technology Inc. is launching any new product offerings. The focus is on their existing platform and services, client satisfaction, and strategic initiatives [fERROR][fERROR][fERROR].

Alkami Technology Inc.'s product roadmap and expansion strategy for 2024 through to 2026 emphasizes continued investment in client satisfaction, operational efficiency, and market expansion. The company plans to maintain excellence in launching new clients and invest in leadership infrastructure to support growth 12. Alkami is focused on broadening its product portfolio to participate in areas beyond digital banking, leveraging its data platform to drive AI and deliver advanced capabilities like observability, telemetry, and API-centric interoperability 13 14. The company aims to achieve a 65% gross margin and a 20% adjusted EBITDA margin by 2026, positioning itself as a premier digital banking provider 15.

12: We'll maintain our excellence in launching new clients, and we will invest in the leadership infrastructure necessary to support our growth. It's really exciting to start the year with a great quarter and get so much customer interaction that reinforces the strength of our market. And it's reassuring to see the level of execution that's happening across Alkami. Thank you to all, the Alkamist that keep our clients as the North Star. Thanks to our clients that trust us with their business. And thank you to our investors who continue to partner with Alkami as we build a great software company. We will keep putting in the work because this industry deserves to have good technology. I'll now hand the call over to Brian. View Source13: Our clients like us as a company, they like our culture, and they like what our software does for their customers and members. They know there's no turning back. Everything in their operation is up for reinventing, for digitizing and transforming, and they like to have a partner they can trust to work with. If we invest in broadening our product portfolio, they will give Alkami the opportunity to participate in areas beyond digital banking, which makes me very bullish on the long-term growth prospects for Alkami. To position ourselves for a long-term potential, in 2024, we'll maintain our focus on the priorities I outlined at the beginning of the year. We'll continue to invest in client satisfaction, we'll build upon the momentum we're experiencing banks. View Source14: But now, the fun really begins. With our platform investments, we were adding capabilities that will allow our clients to differentiate in their market. The Alkami platform will add broad-based observability, product usage, telemetry, new messaging architectures, timestamp data lake functionality, and an API centric developer mindset type of interoperability. We are going to deliver to our clients the type of platform that only major banks have been able to bring to market and we will do it while continuing to drive economics associated with our scale. In the majority of my client meetings, at some point in time, I got the question, hey Alex, what should we be doing with AI. I remind our clients that while really was exciting when Gen AI burst onto the scene at the end of 2022, they've been using AI for quite some time. View Source15: Because of the impact from expense timing such as our client conference, we expect the second quarter to be the low point of our adjusted EBITDA performance in 2024. In closing, I'm very pleased with our continued execution, both operationally and financially. We are demonstrating growing success in the market and continued discipline, managing our operating costs and investments. We remain on track to crossover our 65% gross margin and 20% adjusted EBITDA margin objectives in 2026, all while establishing Alkami as the premier digital banking provider in the marketplace. With that, I will now hand the call over to the operator for questions. View Source

Sources

1: About Alkami Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and commercial banking, digital account opening, and data and marketing solutions. To learn more, visit www.alkami.com. View Source2: About Alkami Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and commercial banking, digital account opening, and data and marketing solutions. To learn more, visit www.alkami.com. View Source3: Alkami Technology, Inc. offers cloud-based digital banking solutions in the United States. The company's Alkami Platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, and multi-tenant architecture. It serves community, regional, super-regional credit unions, and banks. The company was founded in 2009 and is headquartered in Plano, Texas. View Source4: Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly, and build thriving digital communities. Alkami helps clients transform through retail and business banking, digital account opening, payment security, and data analytics and marketing solutions. To learn more, visit www.alkami.com. View Source5: Alkami announced a GAAP total revenue of $76.1 million for the first quarter, a 26.9% increase from the previous year, surpassing the estimated revenue of $75.54 million. The GAAP gross margin improved to 57.8%, up from 53.6% in the year-ago quarter. Notably, the non-GAAP gross margin also saw an increase, reaching 61.7% compared to 58.1% last year. Despite these gains, the company recorded a GAAP net loss of $11.4 million, which, while substantial, marks an improvement over the $17.0 million loss reported in the same period last year. View Source6: Positive Revenue Trend: Examining Alkami Technology's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.89% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector. View Source7: Alkami announced a GAAP total revenue of $76.1 million for the first quarter, a 26.9% increase from the previous year, surpassing the estimated revenue of $75.54 million. The GAAP gross margin improved to 57.8%, up from 53.6% in the year-ago quarter. Notably, the non-GAAP gross margin also saw an increase, reaching 61.7% compared to 58.1% last year. Despite these gains, the company recorded a GAAP net loss of $11.4 million, which, while substantial, marks an improvement over the $17.0 million loss reported in the same period last year. View Source8: Net Margin: Alkami Technology's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -15.02%, the company may face hurdles in effective cost management. View Source9: Return on Equity (ROE): Alkami Technology's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -3.53%, the company may face hurdles in achieving optimal financial performance. View Source10: Return on Assets (ROA): Alkami Technology's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.87%, the company may face hurdles in achieving optimal financial performance. View Source11: Debt Management: Alkami Technology's debt-to-equity ratio is below the industry average. With a ratio of 0.06, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors. View Source12: We'll maintain our excellence in launching new clients, and we will invest in the leadership infrastructure necessary to support our growth. It's really exciting to start the year with a great quarter and get so much customer interaction that reinforces the strength of our market. And it's reassuring to see the level of execution that's happening across Alkami. Thank you to all, the Alkamist that keep our clients as the North Star. Thanks to our clients that trust us with their business. And thank you to our investors who continue to partner with Alkami as we build a great software company. We will keep putting in the work because this industry deserves to have good technology. I'll now hand the call over to Brian. View Source13: Our clients like us as a company, they like our culture, and they like what our software does for their customers and members. They know there's no turning back. Everything in their operation is up for reinventing, for digitizing and transforming, and they like to have a partner they can trust to work with. If we invest in broadening our product portfolio, they will give Alkami the opportunity to participate in areas beyond digital banking, which makes me very bullish on the long-term growth prospects for Alkami. To position ourselves for a long-term potential, in 2024, we'll maintain our focus on the priorities I outlined at the beginning of the year. We'll continue to invest in client satisfaction, we'll build upon the momentum we're experiencing banks. View Source14: But now, the fun really begins. With our platform investments, we were adding capabilities that will allow our clients to differentiate in their market. The Alkami platform will add broad-based observability, product usage, telemetry, new messaging architectures, timestamp data lake functionality, and an API centric developer mindset type of interoperability. We are going to deliver to our clients the type of platform that only major banks have been able to bring to market and we will do it while continuing to drive economics associated with our scale. In the majority of my client meetings, at some point in time, I got the question, hey Alex, what should we be doing with AI. I remind our clients that while really was exciting when Gen AI burst onto the scene at the end of 2022, they've been using AI for quite some time. View Source15: Because of the impact from expense timing such as our client conference, we expect the second quarter to be the low point of our adjusted EBITDA performance in 2024. In closing, I'm very pleased with our continued execution, both operationally and financially. We are demonstrating growing success in the market and continued discipline, managing our operating costs and investments. We remain on track to crossover our 65% gross margin and 20% adjusted EBITDA margin objectives in 2026, all while establishing Alkami as the premier digital banking provider in the marketplace. With that, I will now hand the call over to the operator for questions. View Source