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Alkami brought in $134.9 million in revenue last quarter, a 19 percent jump from a year ago that slightly cleared its own expectations. While the company still reported a net loss of $6.7 million, its adjusted EBITDA, a measure of cash profit that excludes certain accounting costs, reached $26.3 million, well ahead of the $16 million it earned in the same period last year.
The results show that regional banks and credit unions are still spending on cloud software to keep up with larger rivals. For long-term owners, the focus remains on whether this steady growth and improving profit margins will lead to a formal sale of the company, which has been reported as a possibility in recent months.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Prerna Sachdeva, the Chief Accounting Officer, resigned on October 2 to pursue other opportunities. She will stay through November 2 to help with the handover, at which point Chief Financial Officer Cassandra Hudson will take over the accounting duties until a permanent replacement is found.
The company stated this was a personal decision and not due to any disagreements over financial results or practices. While a change in the accounting lead can sometimes be a red flag, the orderly transition and the CFO's temporary oversight suggest this is a standard departure.
Source: 8-K filing
Connexus Credit Union, one of Alkami's earliest customers, has renewed and expanded its contract to use the company's digital banking platform. This is a routine but helpful win that shows the high switching costs of this software, as banks rarely move to a new provider once their systems are integrated.
Source: PRNewsWire
Management has struggled to hit its own profit targets for over a year, suggesting they are either setting the bar too high or the business is becoming harder to forecast.
| Expectation | |
|---|---|
| EPS | $0.20 |
| Revenue | $134M |
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