Alkami Technology, Inc. (Nasdaq: ALKT) ("Alkami"), a leading cloud-based digital banking solutions provider for financial institutions (FIs) in the U.S.,  announced results for its fourth quarter ending December 31, 2024.

Fourth Quarter 2024 Financial Highlights

• GAAP total revenue of $89.7 million, an increase of 25.6% compared to the year-ago quarter;
• GAAP gross margin of 59.3%, compared to 56.0% in the year-ago quarter;
• Non-GAAP gross margin of 63.1%, compared to 60.3% in the year-ago quarter;
• GAAP net loss of $(7.6) million, compared to $(12.7) million in the year-ago quarter; and
• Adjusted EBITDA of $10.2 million, compared to $3.1 million in the year-ago quarter.

Full Year 2024 Financial Highlights

• GAAP total revenue of $333.8 million, an increase of 26.1% compared to 2023;
• GAAP gross margin of 58.9%, compared to 54.4% in 2023;
• Non-GAAP gross margin of 62.7%, compared to 59.0% in 2023;
• GAAP net loss of $(40.8) million, compared to $(62.9) million in 2023; and
• Adjusted EBITDA of $26.9 million compared to $(1.6) million in 2023.

Alkami also announced today the signing of a definitive agreement to acquire Fin Technologies, Inc. ("MANTL") for an enterprise value of $400 million, on a debt free, cash free basis and subject to customary purchase price adjustments, expected to be $7 million. Alkami plans to fund the acquisition with cash of approximately $380 million and restricted stock units issued to continuing MANTL employees with an estimated value of $13 million at transaction closing in replacement for unvested compensatory stock options. MANTL is the premier onboarding and account opening solution that allows financial institutions to acquire commercial, business and retail customers through any channel for virtually any deposit account type. MANTL combined with Alkami's digital banking platform and marketing and analytic capabilities creates the industry leading digital sales and service platform for financial institutions.

Alex Shootman, Chief Executive Officer, said, "In the fourth quarter, we continued to deliver strong growth and enhanced profitability, with revenue growth of over 25% and Adjusted EBITDA of $10.2 million. This capped a year that saw revenue growth of 26% and our first full year of positive Adjusted EBITDA. We also continued to expand our client portfolio, adding an additional seven banks in the fourth quarter."

Shootman added, "We also announced today that we signed a definitive agreement to acquire MANTL, the premier onboarding and account opening solution. MANTL is unique in that it offers a multi-tenant, core-agnostic, single platform that enables FIs to support all channels in onboarding deposit accounts, including branch, call center and digital. With this acquisition, Alkami solidifies its position as the de facto digital sales and service platform in the industry, allowing FIs to onboard, engage, and grow their account base. This creates a tremendous opportunity for us to expand market share and generate cross sell within our client base, driving additional revenue growth and enhancing our competitive offering among financial institutions."

Bryan Hill, Chief Financial Officer, said, "In 2024, we added 2.5 million registered users to our digital banking platform, ending the year with 20 million digital banking users. We exited 2024 with annual recurring revenue of $356 million, up 22% compared to December 31, 2023 and revenue per registered user of $17.81, up 7% compared to the year-ago quarter. Our remaining performance obligation reached $1.4 billion at December 31, 2024, providing substantial visibility into our future operating and financial performance. In addition, we are thrilled to welcome MANTL to the Alkami team. We believe MANTL will be accretive to Alkami's overall revenue growth and gross margin expansion, and we expect the impact of the acquisition to be accretive to Adjusted EBITDA in 2026, allowing Alkami to meet or exceed its long-term financial targets."

2025 Financial Outlook

The following statements are forward-looking, and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement Regarding Forward-Looking Statements." Alkami's financial outlook is based on current expectations, and includes the impact of the MANTL acquisition.

Alkami is providing guidance for its first quarter ending March 31, 2025 of:

• GAAP total revenue in the range of $93.5 million to $95.0 million;
• Adjusted EBITDA in the range of $9.5 million to $10.5 million.

Alkami is providing guidance for its fiscal year ending December 31, 2025 of:

• GAAP total revenue in the range of $440.0 million to $445.0 million;
• Adjusted EBITDA in the range of $47.0 million to $51.0 million.

The completion of the MANTL acquisition remains subject to certain standard conditions, and is expected to close on or before March 31, 2025. As such, starting in the second quarter of 2025 and included in Alkami's full year guidance, Alkami expects MANTL to contribute revenue of approximately $30 million and an Adjusted EBITDA loss of $5 million to its 2025 full-year financial performance. Alkami expects MANTL's annual recurring revenue under contract at December 31, 2025 to be approximately $60 million, which represents a year-over-year growth rate of over 30%.