Alkami(ALKT) - 2024 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2024, were $85.9 million, a 26.9$67.7 million in the same period of 2023[71]. - For the nine months ended September 30, 2024, total revenues were $244.2 million, representing a 26.2$193.5 million in the same period of 2023[71]. - Revenues for the three months ended September 30, 2024, were $85.9 million, an increase of$18.2 million or 26.9% compared to $67.7 million in 2023[98]. - Revenues for the nine months ended September 30, 2024, were$244.2 million, an increase of $50.7 million or 26.2$193.5 million in 2023[98]. - SaaS subscription revenues accounted for 95.5% of total revenues for the three months ended September 30, 2024, compared to 95.7% in the same period of 2023[71]. - SaaS subscription services revenue for the nine months ended September 30, 2024, was $233,437,000, up 27$183,446,000 in 2023[80]. - Adjusted EBITDA for the three months ended September 30, 2024, was $8,318,000, compared to$826,000 in the same period of 2023[93]. - Adjusted EBITDA for the three and nine months ended September 30, 2024, was $8.3 million and$16.7 million, respectively, compared to $0.8 million and$(4.6) million for the same periods in 2023[94]. Expenses - The company incurred net losses of $9.4 million and$33.2 million for the three and nine months ended September 30, 2024, respectively[71]. - Research and development expenses represented 28.1% of revenues for the three months ended September 30, 2024[77]. - Research and development expenses for the three months ended September 30, 2024, were $24,133,000, an increase from$21,755,000 in 2023[91]. - Sales and marketing expenses for the nine months ended September 30, 2024, totaled $45,213,000, up from$36,694,000 in 2023[91]. - Sales and marketing expenses increased by $2.5 million or 20.7$3.9 million or 21.1% for the three months ended September 30, 2024, mainly due to higher personnel-related and software costs[110]. - Cost of revenues for the three months ended September 30, 2024, was $35,289,000, up from$31,153,000 in 2023[91]. - Cost of revenues increased by $4.1 million or 13.3$342.1 million as of September 30, 2024, up $67.1 million or 24.4$275.0 million in 2023[95]. - Registered users grew to 19.5 million as of September 30, 2024, an increase of 2.6 million or 15.4% from 16.9 million in 2023[96]. - Revenue per Registered User (RPU) increased to $17.54 as of September 30, 2024, up$1.26 or 7.7% from $16.28 in 2023[97]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2024, was$12.5 million, compared to a net cash used of $12.2 million for the same period in 2023[121][122]. - Net cash provided by investing activities was$26.0 million for the nine months ended September 30, 2024, compared to a net cash used of $16.4 million for the same period in 2023[124][125]. - Net cash provided by financing activities was$1.5 million for the nine months ended September 30, 2024, compared to a net cash used of $4.8 million for the same period in 2023[126][127]. - As of September 30, 2024, the company had$101.0 million in cash and cash equivalents and marketable securities, with an accumulated deficit of $468.6 million[118]. - The company entered into a Second Amendment to its Amended Credit Agreement, increasing the Revolving Facility commitment by$65.0 million to a total of $125.0 million[128]. - The company has no outstanding borrowings related to the Amended Credit Agreement as of September 30, 2024[128]. - Total interest expense for the nine months ended September 30, 2024, was$0.3 million, a decrease from $5.5 million for the same period in 2023[133]. - The company was in compliance with all covenants under the Amended Credit Agreement as of September 30, 2024[132]. Future Outlook - The company expects to continue increasing investments in implementation, client support teams, and technology infrastructure to support growth[83]. - The effective tax rate is impacted by a valuation allowance against deferred tax assets, primarily consisting of state income taxes and deferred taxes related to acquired goodwill[90]. - The company is expected to cease qualifying as an emerging growth company as of December 31, 2024, based on the market value of its common stock held by non-affiliates[141].