Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States. The company focuses on enhancing the online banking experience through its innovative software platform, which enables financial institutions to grow their client base, engage users, and streamline operations.

In its fourth quarter of 2024, Alkami reported stable growth. Total revenue reached $89.7 million, reflecting a 26% increase compared to the prior year. For the full year, Alkami’s revenue was $333.8 million, marking a 26% increase over 2023. The company generated an adjusted EBITDA of $10.2 million in the fourth quarter and $26.9 million for the full year, improving significantly from a loss of $1.6 million in 2023.

Alkami achieved a net loss of $7.6 million in the fourth quarter, reduced from a loss of $12.7 million in the same quarter of the previous year. The gross margin for the quarter was 63.1%, an increase of approximately 280 basis points from the prior year.

Sales performance indicators show positive momentum. Annual recurring revenue (ARR) increased to $356 million, up 22% from the previous year, and the company exited the quarter with approximately 20 million registered users, a growth of 2.5 million users or 14% year-over-year. It saw a revenue per user (RPU) of $17.81, up 7% compared to the previous year.

Looking ahead, Alkami has provided guidance for the first quarter of 2025 with expected revenue in the range of $93.5 million to $95 million, representing total revenue growth of 23% to 25%. Full-year guidance anticipates revenue between $440 million and $445 million, corresponding to growth of 32% to 33%. Adjusted EBITDA is expected to range from $47 million to $51 million for the full year.

Alkami has also announced its intention to acquire Fin Technologies, Inc. (MANTL) for an enterprise value of $400 million, expected to close by March 31, 2025. The acquisition aims to enhance Alkami’s account opening capabilities and is projected to contribute approximately $30 million to revenue in 2025, with an estimated adjusted EBITDA loss of $5 million.

As of the end of 2024, Alkami’s remaining performance obligation stood at $1.4 billion, which is about 3.8 times its current ARR. The acquisition of MANTL, which has 112 financial institution clients, positions Alkami strategically within the competitive landscape of digital banking solutions.