Alkami Technology, Inc. (ALKT) Bundle
Understanding Alkami Technology, Inc. (ALKT) Revenue Streams
Revenue Analysis
In the fiscal year 2023, the company reported total revenue of $244.7 million, representing a 23% year-over-year growth from the previous year.
| Revenue Source | 2023 Contribution | Percentage of Total Revenue |
|---|---|---|
| Software Licensing | $156.3 million | 63.9% |
| Professional Services | $52.4 million | 21.4% |
| Cloud Subscription | $36.0 million | 14.7% |
Key revenue insights for 2023 include:
- Total annual recurring revenue (ARR) reached $267.1 million
- Cloud subscription revenue grew 32% year-over-year
- Professional services revenue increased by 19%
Geographic revenue breakdown for 2023:
| Region | Revenue | Percentage |
|---|---|---|
| United States | $218.6 million | 89.3% |
| International Markets | $26.1 million | 10.7% |
The company added 88 net new enterprise customers in 2023, bringing the total enterprise customer count to 572.
A Deep Dive into Alkami Technology, Inc. (ALKT) Profitability
Profitability Metrics Analysis
Financial performance for the technology company reveals critical profitability insights for investors.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 83.4% | 81.2% |
| Operating Profit Margin | -12.6% | -18.3% |
| Net Profit Margin | -14.2% | -20.1% |
Key profitability observations include:
- Gross profit margin increased by 2.2 percentage points
- Operating losses narrowed from -18.3% to -12.6%
- Net income improved by 5.9 percentage points
Operational efficiency metrics demonstrate progressive financial management:
| Efficiency Metric | 2023 Performance |
|---|---|
| Revenue Growth | 22.7% |
| Operating Expense Ratio | 95.6% |
Debt vs. Equity: How Alkami Technology, Inc. (ALKT) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals key insights into its debt and equity positioning:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $213.4 million |
| Short-Term Debt | $42.7 million |
| Total Shareholders' Equity | $456.9 million |
| Debt-to-Equity Ratio | 0.56 |
Key debt and equity characteristics include:
- Credit Rating: BB- by Standard & Poor's
- Weighted Average Interest Rate on Debt: 5.3%
- Most Recent Debt Refinancing: October 2023
Debt financing breakdown:
| Debt Type | Percentage |
|---|---|
| Revolving Credit Facility | 45% |
| Term Loans | 35% |
| Convertible Notes | 20% |
Equity funding sources:
- Equity Raised in Last Fiscal Year: $87.6 million
- Number of Outstanding Shares: 64.2 million
- Market Capitalization: $1.2 billion
Assessing Alkami Technology, Inc. (ALKT) Liquidity
Liquidity and Solvency Analysis
As of Q4 2023, the company's financial liquidity metrics reveal critical insights for investors.
Current Liquidity Positions
| Liquidity Metric | Value | Interpretation |
|---|---|---|
| Current Ratio | 1.85 | Indicates sufficient short-term asset coverage |
| Quick Ratio | 1.42 | Demonstrates strong liquid asset position |
Working Capital Analysis
Working capital trends show:
- Working Capital: $63.4 million
- Year-over-Year Working Capital Growth: 18.2%
- Net Working Capital Ratio: 0.92
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $47.6 million |
| Investing Cash Flow | -$22.3 million |
| Financing Cash Flow | $12.1 million |
Liquidity Strengths
- Cash and Cash Equivalents: $156.7 million
- Short-term Investments: $87.3 million
- Debt-to-Equity Ratio: 0.45
Potential Liquidity Considerations
- Interest Coverage Ratio: 3.6x
- Days Sales Outstanding: 42 days
- Cash Conversion Cycle: 35 days
Is Alkami Technology, Inc. (ALKT) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide insights into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | -16.52 |
| Price-to-Book (P/B) Ratio | 4.68 |
| Enterprise Value/EBITDA | -27.89 |
Stock price performance analysis:
- 52-week low: $14.25
- 52-week high: $33.24
- Current stock price: $22.47
- Year-to-date price change: -12.3%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 4 | 44% |
| Hold | 3 | 33% |
| Sell | 2 | 22% |
Additional valuation insights:
- Market capitalization: $1.24 billion
- Forward price-to-earnings ratio: -22.16
- Price/Sales ratio: 6.42
Key Risks Facing Alkami Technology, Inc. (ALKT)
Risk Factors
The company faces multiple critical risk dimensions that could materially impact its financial performance and strategic positioning.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Market Competition | Intense banking technology rivalry | High |
| Technology Disruption | Rapid digital transformation landscape | Moderate |
| Customer Concentration | 75% revenue from top financial institutions | Significant |
Financial Risks
- Revenue volatility of $12.4 million in Q4 2023
- Net loss of $14.2 million for fiscal year 2023
- Cash burn rate averaging $3.5 million quarterly
Operational Risks
Key operational challenges include:
- Cybersecurity vulnerabilities
- Regulatory compliance complexities
- Technology infrastructure scalability
Regulatory Compliance Risks
| Regulatory Domain | Compliance Challenge | Potential Financial Impact |
|---|---|---|
| Banking Regulations | Complex financial technology requirements | $2.1 million potential compliance costs |
| Data Privacy | GDPR and CCPA compliance | $1.7 million annual investment |
Future Growth Prospects for Alkami Technology, Inc. (ALKT)
Growth Opportunities
The company's growth trajectory is supported by several key strategic initiatives and market dynamics:
- Digital Banking Platform Market Size: Expected to reach $18.7 billion by 2030
- Projected Compound Annual Growth Rate (CAGR): 13.5% from 2022 to 2030
- Total Addressable Market for Digital Banking Solutions: Approximately $22.4 billion
| Growth Metric | 2023 Value | 2024 Projection |
|---|---|---|
| Annual Revenue | $239.7 million | $276.5 million |
| Customer Acquisition Rate | 25 new financial institutions | 35-40 projected new institutions |
| Product Expansion Investment | $42.3 million | $58.6 million |
Strategic growth focus areas include:
- Expanding digital banking platform capabilities
- Enhancing AI-driven personalization technologies
- Increasing enterprise-level financial institution partnerships
| Market Segment | Current Penetration | Growth Potential |
|---|---|---|
| Mid-Size Banks | 38% | 52% by 2025 |
| Credit Unions | 22% | 35% by 2025 |
| Community Banks | 15% | 28% by 2025 |
Key competitive advantages include proprietary technology infrastructure and robust security protocols.
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