Alkami Technology Beats Q4 Estimates, Strengthens Digital Banking Platform With $400 Million FinTech Acquisition

Alkami Technology, Inc. ALKT shares are trading higher premarket on Friday. On Thursday, the company reported fourth-quarter results, with revenue of $89.66 million, slightly above the consensus of $89.65 million.

Adjusted gross margin expanded to 63.1% from 60.3% a year-ago quarter.

Adjusted EBITDA rose significantly to $10.2 million from $3.1 million in the year-ago quarter. Adjusted EPS of $0.11 exceeded the consensus of $0.08.

Outlook: Alkami Technology projects first-quarter adjusted EBITDA of $9.5 million-$10.5 million and revenue of $93.5 million-$95.0 million vs. consensus of $95.03 million.

For FY25, the company forecasts sales of $440 million-$445 million, vs. the estimate of $414.64 million and adjusted EBITDA of $47.0 million-$51.0 million.

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.”

Acquisition deal: In a separate release, the company disclosed a definitive deal to acquire Fin Technologies, Inc. for an enterprise value of $400 million.

Founded in 2016 by Nathaniel Harley and Benjamin Conant, MANTL has helped its clients raise over $31 billion in deposits while saving employees more than 350,000 hours through automation and process transformation.

The transaction will be conducted on a debt-free, cash-free basis, with customary purchase price adjustments expected to total approximately $7 million.

Alkami intends to finance the acquisition with around $380 million in cash, along with restricted stock units valued at approximately $13 million, which will be issued to continuing MANTL employees at closing as a replacement for unvested compensatory stock options.

The MANTL acquisition, which is subject to standard closing conditions, is anticipated to be finalized by or before March 31, 2025.

Beginning in the second quarter of 2025, Alkami anticipates MANTL will contribute around $30 million in revenue and an Adjusted EBITDA loss of $5 million to its full-year financial results.

Additionally, MANTL’s annual recurring revenue under contract is projected to reach approximately $60 million by December 31, 2025, representing growth of more than 30% Y/Y.

Alex Shootman, Alkami Chief Executive Officer said, “This business combination creates a tremendous opportunity for Alkami to expand market share and generate cross sell within its client base, driving additional revenue growth and enhancing our competitive offering among financial institutions.”

Price Action: ALKT shares are down 1.24% at $28.60 premarket at the last check Friday.\

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