Alkami Technology, Inc. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenues reaching $333.8 million, a 26.1% increase from $264.8 million in 2023. The company’s annual recurring revenue (ARR) also saw a notable rise, climbing to $355.9 million, up 22.3% from the previous year. Despite this revenue growth, Alkami incurred a net loss of $40.8 million, although this was an improvement compared to the $62.9 million loss reported in 2023. The losses were attributed to ongoing investments in sales, marketing, and product development, which are essential for sustaining growth in a competitive digital banking landscape.
The company experienced a 14.2% increase in registered users, totaling approximately 20 million by the end of 2024. This growth was driven by both existing clients expanding their user bases and new client acquisitions. As of December 31, 2024, Alkami served 272 financial institutions (FIs), up from 236 in 2023. The average client utilized 14 of the 34 products offered by Alkami, indicating a strong trend in product adoption. The company’s pricing model, which is based on a per-registered-user structure, incentivizes clients to promote digital engagement among their customers.
Strategically, Alkami has made several key developments, including the establishment of a subsidiary in India to support future operational needs and the acquisition of MANTL, a company specializing in onboarding and account opening solutions, for approximately $380 million. This acquisition is expected to enhance Alkami's product offerings and market reach. Additionally, the company amended its credit agreement to extend the maturity date and increase its revolving loan commitment, providing more financial flexibility as it pursues growth opportunities.
Operationally, Alkami's gross margin improved to 58.9% in 2024, up from 54.4% in 2023, reflecting better cost management despite rising expenses. The company’s total operating expenses increased by 16.1% to $241.3 million, driven by higher research and development costs, which accounted for 28.8% of revenues. Looking ahead, Alkami aims to deepen client relationships, expand its product suite, and continue to innovate its digital banking platform to maintain its competitive edge in the rapidly evolving financial technology sector. The company remains optimistic about its growth trajectory, although it acknowledges the challenges posed by market conditions and competition.
About ALKAMI TECHNOLOGY, INC.
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