Alkami Technology Raises Full-Year Guidance Despite Revenue Deceleration
The company increased its 2026 total revenue guidance to a range of $528.0 million to $531.0 million
Alkami Technology (ALKT) reported second-quarter total revenue of $129.8 million.
The cloud-based banking software provider saw a deceleration in its top-line growth rate. GAAP total revenue rose 15.9% year-over-year, a decline from the 28.9% growth reported in the first quarter of 2024 and the 36.4% growth seen in the second quarter of 2023.
Annual recurring revenue increased to $511.7 million, up 21% year-over-year. This followed a first-quarter ARR of $493.6 million and a second-quarter 2023 figure of $423.8 million.
User metrics showed steady expansion, though monetization slowed. Digital banking users reached 23.6 million by the end of the quarter, an increase of 2.7 million users over the previous 12 months. Revenue per registered user rose 7.0% year-over-year to $21.69, though this growth rate slowed from the 9% increase recorded in the first quarter.
Profitability metrics were mixed. Adjusted EBITDA rose to $19.4 million from $11.9 million in the year-ago quarter, with the EBITDA margin expanding by nearly 430 basis points. However, GAAP gross margin compressed to 56.8% from 58.6% a year earlier, while non-GAAP gross margin declined to 63.0% from 65.1%.
Alkami raised its full-year 2024 GAAP total revenue guidance to between $528.0 million and $531.0 million, up from the $527.1 million to $530.9 million range provided in the first quarter. The company also increased its full-year adjusted EBITDA guidance to a range of $96.0 million to $98.0 million, compared to the previous guidance of $94.9 million to $97.9 million.
The company executed $15 million in common stock repurchases during the six months ended June 30, 2024, as part of a $100 million program announced in the first quarter.