Q2 2024 Alkami Technology Inc Earnings Call Transcript
Key Points
- Alkami Technology Inc (ALKT) reported a 25% year-over-year revenue growth, reaching $82.2 million for Q2 2024.
- The company achieved $4.6 million in adjusted EBITDA, exceeding the high end of their expectations.
- Alkami Technology Inc (ALKT) was the first digital banking solution company to be certified by J.D. Power for providing an outstanding mobile banking platform experience.
- The company signed eight new digital banking clients, including four credit unions and four banks, indicating strong market demand.
- Operational improvements, such as the conversion of microservices to Linux and deployment to Kubernetes, have reduced costs and improved platform performance.
- Despite strong performance, Alkami Technology Inc (ALKT) remains seventh in aided awareness in the bank market, indicating room for improvement in market penetration.
- The company faces challenges in achieving product market fit for specific complex needs of bank customers.
- There is a potential risk of client attrition due to market consolidation, although the company has not experienced significant churn recently.
- The implementation backlog includes 39 new clients, which could strain resources and delay onboarding processes.
- Gross margin improvements, while positive, are still short of the long-term target of 65%, indicating ongoing cost management challenges.
Good afternoon, ladies and gentlemen, and welcome to the how common technology Third Quarter 2024 financial results conference call.
At this time, listen only mode following the presentation we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for your questions.
Anyone has any difficulties hearing the conference press star zero for operator assistance at any time, I'd like to turn the conference over to Steve Calk, Vice President of Investor Relations. Go ahead.
Thank you, operator. And with me today on today's call are Alex Sherman, 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
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