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Alkami Announces Third Quarter 2022 Financial Results

Alkami Technology, Inc.
Alkami Technology, Inc.

PLANO, Texas, Nov. 03, 2022 (GLOBE NEWSWIRE) -- Alkami Technology, Inc. (Nasdaq: ALKT) (“Alkami”), a leading cloud-based digital banking solutions provider for financial institutions in the U.S., today announced results for its third quarter ending September 30, 2022.

Third Quarter 2022 Financial Highlights

  • GAAP total revenue of $53.4 million, an increase of 34% compared to the year-ago quarter;

  • GAAP gross margin of 52%, compared to 56% in the year-ago quarter;

  • Non-GAAP gross margin of 57%, compared to 58% in the year-ago quarter;

  • GAAP net loss of $(20.0) million, compared to $(11.2) million in the year-ago quarter; and

  • Adjusted EBITDA loss of $(4.6) million, compared to $(6.1) million in the year-ago quarter.

Comments on the News

Alex Shootman, Chief Executive Officer, said, “In the third quarter, we continued to see strong market demand for Alkami’s innovative end-to-end digital solutions along with our commitment to client service. We added ten new logos to the Alkami digital banking community, bringing our year-to-date new logo sales count to fifteen credit unions and seven banks, substantially outpacing the same period last year. In addition, we successfully renewed six clients’ contracts and continued to expand add-on sales as our clients seek more ways to accelerate their digital transformation.”

Shootman added, “Nearly 80% of Americans prefer to bank digitally and financial institutions are answering the call by putting the digital banking experience first. Our sales performance in the quarter is a testament to Alkami’s organization-wide passion for helping financial institutions leverage technology to improve their customer experience, increase digital engagement and become true partners when it comes to their customers' financial well-being.”

“We exited the third quarter with 13.7 million digital banking users on the Alkami platform, up 20% from the year-ago quarter,” said Bryan Hill, Chief Financial Officer. “In addition, add-on sales represented over 34% of new sales during the year, and there are now 40 new logos in implementation, which, along with significant add-on sales, represent a total of $43 million in Annual Recurring Revenue in backlog. We exited the quarter with Annual Recurring Revenue of $214 million, up 38% compared to the year-ago quarter. And our revenue per user continued to increase, ending the quarter at $15.57.”

2022 Financial Outlook
Alkami’s financial outlook is based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under “Cautionary Statement Regarding Forward-Looking Statements.”

Alkami is providing guidance for its fourth quarter ending December 31, 2022 of:

  • GAAP total revenue in the range of $54.3 million to $55.3 million;

  • Adjusted EBITDA loss in the range of $(5.0) million to $(4.0) million.

Alkami is providing guidance for its calendar year ending December 31, 2022 of:

  • GAAP total revenue in the range of $203.0 million to $204.0 million;

  • Adjusted EBITDA loss in the range of $(18.6) million to $(17.6) million.

Conference Call Information
The Company will host a conference call at 5:00 p.m. ET today to discuss its financial results with investors. A live webcast of the event will be available on the Alkami investor relations website at investors.alkami.com. In addition, a live dial-in will be available domestically at 1-877-870-4263 and internationally at 1-412-317-0790 using passcode 10171281. A replay will be available in the Investor Relations section of the Alkami website.

About Alkami
Alkami Technology, Inc. is a leading cloud-based digital banking solutions provider for financial institutions in the United States that enables clients to grow confidently, adapt quickly and build thriving digital communities. Alkami helps clients transform through retail and business banking, digital account opening and loan origination, multi-payment fraud prevention, and data analytics and engagement solutions. To learn more, visit www.alkami.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains “forward-looking” statements relating to Alkami Technology, Inc.’s strategy, goals, future focus areas, and expected, possible or assumed future results, including its future cash flows and its financial outlook. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be identified by terms such as “expects,” “believes,” “plans,” or similar expressions and the negatives of those terms. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements, expressed or implied by the forward-looking statements, including the uncertainty associated with the potential impacts of the COVID-19 pandemic on our business, financial condition, and results of operations. Factors that may materially affect such forward-looking statements include: Our limited operating history and history of operating losses; our ability to manage future growth; our ability to attract new clients and retain and expand existing clients’ use of our solutions; the unpredictable and time-consuming nature of our sales cycles; our ability to maintain, protect and enhance our brand; our ability to accurately predict the long-term rate of client subscription renewals or adoption of our solutions; our reliance on third-party software, content and services; our ability to effectively integrate our solutions with other systems used by our clients; intense competition in our industry; any downturn, consolidation or decrease in technology spend in the financial services industry; our ability and the ability of third parties on which we rely to prevent and identify breaches of security measures (including cybersecurity) and resulting disruptions of our systems or operations and unauthorized access to client customer and other data; our ability to successfully integrate acquired companies or businesses; our ability to comply with regulatory and legal requirements and developments; our ability to attract and retain key employees; the political, economic and competitive conditions in the markets and jurisdictions where we operate; our ability to maintain, develop and protect our intellectual property; our ability to respond to evolving technological requirements to develop or acquire new and enhanced products that achieve market acceptance in a timely manner; our ability to estimate our expenses, future revenues, capital requirements, our needs for additional financing and our ability to obtain additional capital and other factors described in the Company’s filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Explanation of Non-GAAP Financial Measures and Key Business Metrics
The company reports its financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, the company believes that, in order to properly understand its short-term and long-term financial, operational and strategic trends, it may be helpful for investors to exclude certain non-cash or non-recurring items when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in both frequency and impact on continuing operations. The company also uses results of operations excluding such items to evaluate the operating performance of Alkami and compare it against prior periods, make operating decisions, determine executive compensation, and serve as a basis for long-term strategic planning. These non-GAAP financial measures provide the company with additional means to understand and evaluate the operating results and trends in its ongoing business by eliminating certain non-cash expenses and other items that Alkami believes might otherwise make comparisons of its ongoing business with prior periods more difficult, obscure trends in ongoing operations, reduce management’s ability to make useful forecasts, or obscure the ability to evaluate the effectiveness of certain business strategies and management incentive structures. In addition, the company also believes that investors and financial analysts find this information to be helpful in analyzing the company’s financial and operational performance and comparing this performance to the company’s peers and competitors.

The company defines “Non-GAAP Cost of Revenues” as cost of revenues, excluding (1) amortization and (2) stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.

The company defines “Non-GAAP Gross Margin” as gross profit, plus (1) amortization and (2) stock-based compensation expense, all divided by revenue. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.

The company defines “Non-GAAP Research and Development Expense” as research and development expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to product innovation.

The company defines “Non-GAAP Sales and Marketing Expense” as sales and marketing expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ongoing expenditures related to its sales and marketing strategies.

The company defines “Non-GAAP General and Administrative Expense” as general and administrative expense, excluding stock-based compensation expense. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s underlying expense structure to support corporate activities and processes.

The company defines “Non-GAAP Net Loss” as net loss attributable to common stockholders, plus (1) convertible preferred stock deemed and accrued dividends, (2) provision (benefit) for income taxes (3) loss on financial instruments, (4) amortization, (5) stock-based compensation expense, and (6) acquisition-related expenses, net. The company believes that investors and financial analysts find this non-GAAP financial measure to be useful in analyzing the company’s financial and operational performance, comparing this performance to the company’s peers and competitors, and understanding the company’s ability to generate income from ongoing business operations.

The company defines “Adjusted EBITDA” as net loss plus (1) provision (benefit) for income taxes, (2) loss on financial instruments, (3) interest expense, net, (4) depreciation and amortization (5) stock-based compensation expense, and (6) acquisition-related expenses, net. The company believes adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations.

In addition, the Company also uses the following important operating metrics to evaluate its business:

The company defines “Annual Recurring Revenue (ARR)” by aggregating annualized recurring revenue related to SaaS subscription services recognized in the last month of the reporting period as well as the next 12 months of expected implementation services revenues for all clients on the platform in the last month of the reporting period. We believe ARR provides important information about our future revenue potential, our ability to acquire new clients, and our ability to maintain and expand our relationship with existing clients.

The company defines “Registered Users” as an individual or business related to an account holder of an FI client on our digital banking platform who has registered to use one or more of our solutions and has current access to use those solutions as of the last day of the reporting period presented. We price our digital banking platform based on the number of registered users, so as the number of registered users of our digital banking platform increases, our ARR grows. We believe growth in the number of registered users provides important information about our ability to expand market adoption of our digital banking platform and its associated software products, and therefore to grow revenues over time.

The company defines “Revenue per Registered User (RPU)” by dividing ARR for the reporting period by the number of registered users as of the last day of the reporting period. We believe RPU provides important information about our ability to grow the number of software products adopted by new clients over time, as well as our ability to expand the number of software products that our existing clients add to their contracts with us over time.

The company does not provide a reconciliation of our adjusted EBITDA outlook to GAAP net loss because certain significant information required for such reconciliation is not available without unreasonable efforts, including (benefit) provision for income taxes, loss on financial instruments, stock-based compensation expense, and acquisition-related expenses, net, all of which may be significant.

 

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)

(UNAUDITED)

 

September 30,

 

December 31,

 

 

2022

 

 

 

2021

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

96,636

 

 

$

308,581

 

Marketable securities

 

112,215

 

 

 

 

Accounts receivable, net

 

26,304

 

 

 

20,821

 

Deferred implementation costs, current

 

7,053

 

 

 

6,272

 

Prepaid expenses and other current assets

 

13,108

 

 

 

9,487

 

Total current assets

 

255,316

 

 

 

345,161

 

Property and equipment, net

 

13,468

 

 

 

11,828

 

Deferred implementation costs, net of current portion

 

21,013

 

 

 

17,991

 

Intangibles, net

 

44,290

 

 

 

11,164

 

Goodwill

 

146,036

 

 

 

48,091

 

Other assets

 

5,162

 

 

 

2,275

 

Total assets

$

485,285

 

 

$

436,510

 

Liabilities and Stockholders' Equity (Deficit)

 

 

 

Current liabilities

 

 

 

Current portion of long-term debt

$

2,125

 

 

$

1,563

 

Accounts payable

 

3,214

 

 

 

3,649

 

Accrued liabilities

 

25,276

 

 

 

19,083

 

Deferred rent and tenant allowance, current

 

750

 

 

 

705

 

Deferred revenues, current portion

 

8,673

 

 

 

8,198

 

Total current liabilities

 

40,038

 

 

 

33,198

 

Long-term debt, net

 

82,415

 

 

 

23,053

 

Deferred revenues, net of current portion

 

13,597

 

 

 

13,873

 

Deferred rent and tenant allowance, net of current portion

 

4,620

 

 

 

5,190

 

Deferred income taxes

 

341

 

 

 

85

 

Other non-current liabilities

 

16,400

 

 

 

16,500

 

Total liabilities

 

157,411

 

 

 

91,899

 

Stockholders’ Equity (Deficit)

 

 

 

Preferred stock, $0.001 par, 10,000,000 shares authorized and 0 shares issued and outstanding as of September 30, 2022 and December 31, 2021

 

 

 

 

 

Common stock, $0.001 par, 500,000,000 shares authorized; and 91,477,997 and 89,954,657 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively

 

91

 

 

 

90

 

Additional paid-in capital

 

695,324

 

 

 

658,374

 

Accumulated deficit

 

(367,541

)

 

 

(313,853

)

Total stockholders’ equity

 

327,874

 

 

 

344,611

 

Total liabilities and stockholders' equity

$

485,285

 

 

$

436,510

 

 

 

 

 


 

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share data)

(UNAUDITED)

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues

$

53,412

 

 

$

39,761

 

 

$

148,732

 

 

$

109,724

 

Cost of revenues(1)

 

25,844

 

 

 

17,387

 

 

 

69,081

 

 

 

49,064

 

Gross profit

 

27,568

 

 

 

22,374

 

 

 

79,651

 

 

 

60,660

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

18,222

 

 

 

12,877

 

 

 

48,973

 

 

 

35,897

 

Sales and marketing

 

9,721

 

 

 

7,216

 

 

 

27,822

 

 

 

17,858

 

General and administrative

 

18,337

 

 

 

12,415

 

 

 

54,114

 

 

 

34,348

 

Acquisition-related expenses, net

 

737

 

 

 

915

 

 

 

155

 

 

 

2,177

 

Amortization of acquired intangibles

 

370

 

 

 

93

 

 

 

796

 

 

 

274

 

Total operating expenses

 

47,387

 

 

 

33,516

 

 

 

131,860

 

 

 

90,554

 

Loss from operations

 

(19,819

)

 

 

(11,142

)

 

 

(52,209

)

 

 

(29,894

)

Non-operating income (expense):

 

 

 

 

 

 

 

Interest income

 

851

 

 

 

223

 

 

 

1,383

 

 

 

364

 

Interest expense

 

(1,185

)

 

 

(300

)

 

 

(2,336

)

 

 

(908

)

Loss on financial instruments

 

(59

)

 

 

 

 

 

(446

)

 

 

(3,035

)

Loss before income taxes

 

(20,212

)

 

 

(11,219

)

 

 

(53,608

)

 

 

(33,473

)

Provision (benefit) for income taxes

 

(163

)

 

 

 

 

 

80

 

 

 

 

Net loss

 

(20,049

)

 

 

(11,219

)

 

 

(53,688

)

 

 

(33,473

)

Less: cumulative dividends and adjustments to redeemable convertible preferred stock

 

 

 

 

 

 

 

 

 

 

(277

)

Net loss attributable to common stockholders:

$

(20,049

)

 

$

(11,219

)

 

$

(53,688

)

 

$

(33,750

)

Net loss per share attributable to common stockholders:

 

 

 

 

 

 

 

Basic and diluted

$

(0.22

)

 

$

(0.13

)

 

$

(0.59

)

 

$

(0.60

)

Weighted average number of shares of common stock outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

91,182,235

 

 

 

87,641,416

 

 

 

90,703,061

 

 

 

56,320,288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes amortization of acquired technology of $1.4 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $2.6 million and $0.4 million for the nine months ended September 30, 2022 and 2021, respectively.

 


 

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(UNAUDITED)

 

Nine months ended September 30,

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

Net loss

$

(53,688

)

 

$

(33,473

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization expense

 

5,512

 

 

 

2,384

 

Accrued interest on marketable securities, net

 

(67

)

 

 

 

Stock-based compensation expense

 

33,596

 

 

 

7,793

 

Amortization of debt issuance costs

 

112

 

 

 

39

 

Gain on revaluation of contingent consideration

 

(2,700

)

 

 

 

Loss on financial instruments

 

446

 

 

 

3,035

 

Deferred taxes

 

(80

)

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(3,688

)

 

 

(5,741

)

Prepaid expenses and other current assets

 

(2,802

)

 

 

(689

)

Accounts payable and accrued liabilities

 

3,590

 

 

 

12,758

 

Deferred implementation costs

 

(3,804

)

 

 

(1,612

)

Deferred rent and tenant allowances

 

(525

)

 

 

(397

)

Deferred revenues

 

53

 

 

 

(899

)

Net cash used in operating activities

 

(24,045

)

 

 

(16,802

)

Cash flows from investing activities:

 

 

 

Purchase of marketable securities

 

(164,093

)

 

 

 

Proceeds from maturities and redemptions of marketable securities

 

51,500

 

 

 

 

Purchases of property and equipment

 

(964

)

 

 

(870

)

Capitalized software development costs

 

(2,778

)

 

 

(1,275

)

Acquisition of business, net of cash acquired

 

(131,339

)

 

 

(18,326

)

Net cash used in investing activities

 

(247,674

)

 

 

(20,471

)

Cash flows from financing activities:

 

 

 

Proceeds from issuance of long-term debt

 

85,000

 

 

 

 

Principal payments on debt

 

(24,688

)

 

 

 

Debt issuance costs paid

 

(773

)

 

 

 

Proceeds from exercise of warrants

 

 

 

 

645

 

Proceeds from ESPP issuance

 

1,841

 

 

 

 

Payments for taxes related to net settlement of equity awards

 

(596

)

 

 

 

Proceeds from stock option exercises

 

2,109

 

 

 

6,417

 

Deferred IPO issuance costs paid

 

 

 

 

(4,520

)

Repurchase of common stock

 

 

 

 

(3,497

)

Proceeds from issuance of common stock upon initial public offering, net of underwriting discounts and commissions

 

 

 

 

192,810

 

Payment of Series B dividend

 

 

 

 

(4,969

)

Net cash provided by financing activities

 

62,893

 

 

 

186,886

 

Net (decrease) increase in cash and cash equivalents and restricted cash

 

(208,826

)

 

 

149,613

 

Cash and cash equivalents and restricted cash, beginning of period

 

312,954

 

 

 

171,663

 

Cash and cash equivalents and restricted cash, end of period

$

104,128

 

 

$

321,276

 


 

ALKAMI TECHNOLOGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

(In thousands, except per share data)

(UNAUDITED)

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP total revenues

$

53,412

 

 

$

39,761

 

 

$

148,732

 

 

$

109,724

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2022

 

 

 

2021

 

 

 

 

 

Annual Recurring Revenue (ARR)

$

213,640

 

 

$

154,805

 

 

 

 

 

Registered Users

 

13,726

 

 

 

11,408

 

 

 

 

 

Revenue per Registered User (RPU)

$

15.57

 

 

$

13.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Cost of Revenues

 

 

 

 

 

Set forth below is a presentation of the company’s “Non-GAAP Cost of Revenues.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP cost of revenues

$

25,844

 

 

$

17,387

 

 

$

69,081

 

 

$

49,064

 

Amortization

 

(1,530

)

 

 

(117

)

 

 

(2,825

)

 

 

(353

)

Stock-based compensation expense

 

(1,244

)

 

 

(544

)

 

 

(3,278

)

 

 

(1,242

)

Non-GAAP cost of revenues

$

23,070

 

 

$

16,726

 

 

$

62,978

 

 

$

47,469

 

 

 

 

 

 

 

 

 

Non-GAAP Gross Margin

 

 

 

 

 

Set forth below is a presentation of the company’s “Non-GAAP Gross Margin.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP gross margin

 

51.6

%

 

 

56.3

%

 

 

53.6

%

 

 

55.3

%

Amortization

 

2.9

%

 

 

0.2

%

 

 

1.9

%

 

 

0.3

%

Stock-based compensation expense

 

2.3

%

 

 

1.4

%

 

 

2.2

%

 

 

1.1

%

Non-GAAP gross margin

 

56.8

%

 

 

57.9

%

 

 

57.7

%

 

 

56.7

%

 

 

 

 

 

 

 

 

Non-GAAP Research and Development Expense

 

 

 

 

 

Set forth below is a presentation of the company’s “Non-GAAP Research and Development Expense.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP research and development expense

$

18,222

 

 

$

12,877

 

 

$

48,973

 

 

$

35,897

 

Stock-based compensation expense

 

(3,023

)

 

 

(793

)

 

 

(7,487

)

 

 

(1,795

)

Non-GAAP research and development expense

$

15,199

 

 

$

12,084

 

 

$

41,486

 

 

$

34,102

 

 

 

 

 

 

 

 

 

Non-GAAP Sales and Marketing Expense

 

 

 

 

 

Set forth below is a presentation of the company’s “Non-GAAP Sales and Marketing Expense.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP sales and marketing expense

$

9,721

 

 

$

7,216

 

 

$

27,822

 

 

$

17,858

 

Stock-based compensation expense

 

(1,112

)

 

 

(266

)

 

 

(2,859

)

 

 

(609

)

Non-GAAP sales and marketing expense

$

8,609

 

 

$

6,950

 

 

$

24,963

 

 

$

17,249

 

 

 

 

 

 

 

 

 

Non-GAAP General and Administrative Expense

 

 

 

 

 

Set forth below is a presentation of the company’s “Non-GAAP General and Administrative Expense.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP general and administrative expense

$

18,337

 

 

$

12,415

 

 

$

54,114

 

 

$

34,348

 

Stock-based compensation expense

 

(6,535

)

 

 

(1,748

)

 

 

(19,332

)

 

 

(4,147

)

Non-GAAP general and administrative expense

$

11,802

 

 

$

10,667

 

 

$

34,782

 

 

$

30,201

 

 

 

 

 

 

 

 

 

Non-GAAP Net Loss

 

 

 

 

 

Set forth below is a presentation of the company’s “Non-GAAP Net Loss.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP net loss attributable to common stockholders

$

(20,049

)

 

$

(11,219

)

 

$

(53,688

)

 

$

(33,750

)

Convertible preferred stock deemed and accrued dividends

 

 

 

 

 

 

 

 

 

 

277

 

Provision (benefit) for income taxes

 

(163

)

 

 

 

 

 

80

 

 

 

 

Loss on financial instruments

 

59

 

 

 

 

 

 

446

 

 

 

3,035

 

Amortization

 

1,900

 

 

 

209

 

 

 

3,621

 

 

 

627

 

Stock-based compensation expense

 

11,914

 

 

 

3,352

 

 

 

32,956

 

 

 

7,793

 

Acquisition-related expenses, net(1)

 

737

 

 

 

915

 

 

 

155

 

 

 

2,177

 

Non-GAAP net loss

$

(5,602

)

 

$

(6,743

)

 

$

(16,430

)

 

$

(19,841

)

 

 

 

 

 

 

 

 

(1) Acquisition-related expenses, net include the accrual of deferred compensation due to the former owner of the acquired business, ACH Alert, in addition to acquisition related-expenses associated with the acquisition of MK and Segmint, primarily related to legal, consulting, and professional fees. These expenses are offset by the $2.7 million gain on contingent consideration related to the purchase of MK.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

Set forth below is a presentation of the company’s “Adjusted EBITDA.” Please reference the “Explanation of Non-GAAP Measures” section.

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

September 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

GAAP net loss

$

(20,049

)

 

$

(11,219

)

 

$

(53,688

)

 

$

(33,473

)

Provision (benefit) for income taxes

 

(163

)

 

 

 

 

 

80

 

 

 

 

Loss on financial instruments

 

59

 

 

 

 

 

 

446

 

 

 

3,035

 

Interest expense, net

 

334

 

 

 

77

 

 

 

953

 

 

 

544

 

Depreciation and amortization

 

2,550

 

 

 

802

 

 

 

5,512

 

 

 

2,384

 

Stock-based compensation expense

 

11,914

 

 

 

3,352

 

 

 

32,956

 

 

 

7,793

 

Acquisition-related expenses, net

 

737

 

 

 

915

 

 

 

155

 

 

 

2,177

 

Adjusted EBITDA

$

(4,618

)

 

$

(6,073

)

 

$

(13,586

)

 

$

(17,540

)

 

 

 

 

 

 

 

 

(1) Acquisition-related expenses, net include the accrual of deferred compensation due to the former owner of the acquired business, ACH Alert, in addition to acquisition related-expenses associated with the acquisition of MK and Segmint, primarily related to legal, consulting, and professional fees. These expenses are offset by the $2.7 million gain on contingent consideration related to the purchase of MK.

CONTACT: Investor Relations Contact Steve Calk Andrew Vinas ir@alkami.com Media Relations Contacts Jennifer Cortez jennifer.cortez@alkami.com Katie Schimmel katie@outlookmarketingsrv.com