ALKT Earnings Prediction
The chart below shows how ALKT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ALKT sees a +1.70% change in stock price 10 days leading up to the earnings, and a +2.07% change 10 days following the report. On the earnings day itself, the stock moves by -1.00%. This data can give you a slight idea of what to expect for the next quarter's release.
ALKT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
89.66M
25.62%
4.37%
Gross Margin
58.95%
6.27%
0.77%
Operating Margin
-9.03%
-50.63%
-19.38%
Net Margin
-8.52%
-52.16%
-22.47%
EPS
-0.08
-38.46%
-11.11%
No Data Available
ALKT Earnings Analysis
Alkami Technology Inc Corporation (ALKT.O) Earnings Conference Call
Positive
Revenue and EBITDA Growth: Alkami grew revenue by 26% in Q4 2024 and generated over $10 million in adjusted EBITDA.
User Growth Achievement: The company ended Q4 2024 with 20 million users on the Alkami Platform, an increase of 2.5 million users year-over-year.
Revenue and Margin Expansion: For the full year 2024, Alkami achieved a 26% revenue growth and expanded adjusted EBITDA margin by 900 basis points.
Cash Flow Improvement: Operating cash flow improved by over $36 million in 2024 compared to the previous year.
Bank Contract Growth: Alkami secured 42 banks under contract by the end of 2024, a significant increase from 8 banks at the end of 2021.
Add-On Sales Growth: Add-on sales represented 45% of new bookings in 2024, up from 24% in 2021, indicating strong growth in existing client relationships.
Gross Margin Improvement: The company improved its gross margin by almost 600 basis points since 2021, driven by platform investments and efficiency improvements.
Employee Retention and Awards: Alkami's employee retention rate increased to 85%, and the company received multiple awards for its workplace culture and teams in 2024.
Digital Banking Acquisition Impact: The acquisition of MANTL is expected to enhance Alkami's position in the digital banking market and provide significant cross-sell opportunities.
Best Banking App Award: Alkami's Digital Banking solution was awarded Best Banking App by Tearsheet in 2024, highlighting its competitive edge in the market.
Negative
Revenue Growth Amid Competition: Alkami's revenue growth of 26% in Q4 2024 was positive, but the company is facing increasing competition from megabanks and fintechs, which could pressure future growth.
Adjusted EBITDA Loss Forecast: Despite a strong performance in 2024, the company anticipates an adjusted EBITDA loss of $5 million from the MANTL acquisition in 2025, indicating potential short-term financial strain.
Client Churn Impact: The company expects to churn four clients in 2025, representing 175,000 users, which could impact future revenue and user growth.
Gross Margin Improvement Potential: While Alkami's gross margin improved to 63.1%, it is still below the 65% target set for 2026, indicating that there is room for improvement in operational efficiency.
Backlog Impact on Revenue: The company has a backlog of $56.5 million in ARR for implementation, which may not convert into revenue until the next 12 months, creating uncertainty in short-term revenue generation.
ALKT FAQs
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ALKT Earning Call Sentiment
Alkami Technology, Inc. (ALKT) Q4 2024 Earnings Call Transcript
ALKT.O
1.47%Positive
The acquisition of MANTL is a strategic move, expected to enhance Alkami's offerings and provide significant growth opportunities. Financial performance is strong, with substantial revenue and EBITDA growth, and improved margins. The Q&A section reveals some uncertainties regarding user growth and ARPU expansion post-acquisition, but overall, the acquisition is seen positively. The market cap suggests a moderate reaction, leading to a positive stock price movement prediction (2% to 8%).
