Q4 2024 Alkami Technology Inc Earnings Call Transcript
Key Points
- Alkami Technology Inc (ALKT) reported a 26% revenue growth for the fourth quarter of 2024, contributing to a strong full-year performance.
- The company achieved an adjusted EBITDA of over $10 million in Q4 2024, with a full-year adjusted EBITDA margin expansion of 900 basis points.
- Alkami ended 2024 with 20 million users on its platform, an increase of 2.5 million users compared to the previous year.
- The acquisition of MANTL is expected to enhance Alkami's platform by providing a comprehensive onboarding and account opening solution, creating cross-sell opportunities.
- Alkami's gross margin improved by nearly 280 basis points year-over-year in Q4 2024, driven by hosting cost efficiencies and platform investments.
- Alkami Technology Inc (ALKT) faces intense competition from mega banks and fintechs that have heavily invested in digital technology.
- The company anticipates an adjusted EBITDA loss of $5 million from the MANTL acquisition in 2025, although it expects the acquisition to be accretive starting in 2026.
- Alkami's current account opening solution is limited to digital channels and a few deposit types, necessitating the acquisition of MANTL to meet broader market needs.
- The company expects to churn 4 clients in 2025, representing 175,000 users and less than 1% of ARR.
- Alkami's operating expenses remain significant, with non-GAAP operating expenses representing 52% of revenue in Q4 2024, despite achieving operating leverage.
Good afternoon, ladies and gentlemen, and welcome to the Alkami Technology Fourth Quarter 2024 Financial Results Conference Call. (Operator Instructions) This call is being recorded on Thursday, February 27, 2025. I'd like to turn the conference over to Steve Calk. Vice President of Investor Relations. Steve, please go ahead.
Thank you Alan. With me on today's call are Alex Shootman, Chief Executive Officer; and Bryan Hill, Chief Financial Officer. During today's call, we may make forward-looking statements about guidance and other matters regarding our future performance. These statements are based on management's current views and expectations and are subject to various risks and uncertainties. Our actual results may be materially different.
For a summary of risk factors associated with our forward-looking statements, please refer to today's press release in the section in our latest 10-K. Statements made during the call are being made as of today, and we undertake no obligation to
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