Alkami Technology, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenues of $85.9 million for the three months ended September 30, 2024, marking a 26.9% increase from $67.7 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $244.2 million, up 26.2% from $193.5 million year-over-year. The growth was primarily driven by an increase in SaaS subscription services revenue, which accounted for 95.5% of total revenues in Q3 2024.
Gross profit for the third quarter was $50.6 million, compared to $36.6 million in Q3 2023, while gross margins improved to 58.9% from 54.0%. For the nine-month period, gross profit was $143.4 million, up from $104.2 million in the prior year. Despite these gains, the company reported a net loss of $9.4 million for Q3 2024, a reduction from a net loss of $15.5 million in Q3 2023. The nine-month net loss also decreased to $33.2 million from $50.2 million in the previous year.
Operating expenses increased, with total operating expenses for Q3 2024 at $61.0 million, up 16.6% from $52.3 million in Q3 2023. Research and development expenses rose by 10.9%, while sales and marketing expenses increased by 20.7%. General and administrative expenses also saw a significant rise of 21.1%.
The company’s cash and cash equivalents improved significantly, totaling $81.0 million as of September 30, 2024, compared to $40.9 million at the end of 2023. Total current assets increased to $169.0 million from $148.6 million. Alkami's Annual Recurring Revenue (ARR) grew to $342.1 million, a 24.4% increase from $275.0 million a year earlier, supported by a rise in registered users to 19.5 million.
Strategically, Alkami amended its credit agreement on July 1, 2024, extending the maturity date of its revolving facility to April 2027 and increasing the commitment by $65 million to a total of $125 million. The company had no outstanding borrowings under this agreement as of September 30, 2024. Additionally, on August 8, 2024, Alkami entered into an underwriting agreement for a secondary offering of 5 million shares, which closed on August 12, 2024, although the company did not receive any proceeds from this sale.
Overall, Alkami Technology, Inc. demonstrated strong revenue growth and improved profitability metrics, alongside strategic financial maneuvers to bolster its liquidity and operational capacity.
About ALKAMI TECHNOLOGY, INC.
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