Alkami (ALKT) Q4 2024 earnings summary

Executive summary

• Achieved 26% year-over-year revenue growth in Q4 and full-year 2024, with $333.8 million total revenue and $26.9 million adjusted EBITDA, marking a significant turnaround from a loss in 2023.

• Ended 2024 with 20 million users, up 2.5 million from the prior year, and 272 clients, with strong momentum entering 2025.

• Announced the acquisition of MANTL for $400 million, expected to close by March 31, 2025, to enhance onboarding and account opening capabilities.

• Remaining performance obligation reached $1.4 billion, up 20% year-over-year, providing strong revenue visibility.

• Adjusted EBITDA for Q4 was $10.2 million, up from $3.1 million in Q4 2023, reflecting improved scale and operational efficiencies.

Financial highlights

• Q4 2024 revenue reached $89.7 million, up 26% year-over-year; subscription revenue comprised 96% of total revenue.

• Annual Recurring Revenue (ARR) increased 22% to $356 million, with $56.5 million in ARR backlog.

• Non-GAAP gross margin for Q4 was 63.1%, up from 60.3% in Q4 2023.

• Adjusted EBITDA margin improved to 8% for 2024, compared to (1)% in 2023.

• Operating cash flow improved by $36.1 million year-over-year, ending with $116 million in cash and marketable securities.

Outlook and guidance

• 2025 revenue guidance is $440–$445 million, representing 32–33% growth; adjusted EBITDA guidance is $47–$51 million.

• Q1 2025 revenue expected at $93.5–$95 million, with adjusted EBITDA of $9.5–$10.5 million.

• MANTL expected to contribute $30 million in revenue and a $5 million adjusted EBITDA loss in 2025, becoming EBITDA accretive in 2026; ARR for MANTL projected at $60 million by year-end 2025.

• Organic user growth projected at 14–15% and RPU expansion at 6–8% for 2025, consistent with 2024.