PLANO, Texas - Alkami Technology, Inc. (NASDAQ:ALKT), a provider of cloud-based digital banking solutions, announced today the initiation of a secondary offering of 7,500,000 shares of common stock. The shares are being sold by entities affiliated with General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. These selling stockholders also plan to grant the underwriter a 30-day option to buy up to an additional 1,125,000 shares.
The proceeds from the offering will go entirely to the selling stockholders, with the company itself not selling any shares or receiving any proceeds. J.P. Morgan Securities LLC is the underwriter and sole book-running manager for the offering. The sale of shares may occur in several venues, including the Nasdaq Global Select Market, over-the-counter transactions, or through negotiated deals, and may be priced according to market conditions at the time of sale.
This offering is made possible by an effective shelf registration statement filed with the Securities and Exchange Commission on August 8, 2024. A prospectus supplement and accompanying prospectus are part of the registration statement, which investors are encouraged to read for more complete information about Alkami and the offering.
Alkami, based in the United States, specializes in providing digital banking solutions that help financial institutions grow, adapt, and build digital communities. The company's solutions encompass retail and business banking, digital account opening, payment security, and data and marketing services.
The announcement includes forward-looking statements regarding the potential sale and additional option for shares. These statements are subject to risks and uncertainties that could affect the timing and completion of the offering. The company has clarified that the press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.
The news is based on a press release statement from Alkami Technology, Inc.
In other recent news, Alkami Technology has demonstrated a strong Q3 financial performance that outperformed both Wall Street and its own expectations. The company reported a significant 27% increase in revenue to $85.9 million and an adjusted EBITDA of $8.3 million, which exceeded expectations. Alkami Technology's annual recurring revenue (ARR) grew by 24% to $342 million, though it fell slightly short of analyst expectations. In response to these developments, KeyBanc Capital Markets raised its price target for Alkami Technology to $45, maintaining an Overweight rating.
Alkami Technology has also reported nine new digital banking wins and secured 14 renewals, indicating strong demand for its services. The company's implementation backlog now includes 36 clients, accounting for 1.3 million users. KeyBanc's analyst noted the firm's positive stance on Alkami's win rates and the support for the company's revenue estimates going forward.
Looking ahead, Alkami Technology forecasts Q4 2024 revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million. Despite a favorable environment for mergers and acquisitions, Alkami has not made any recent acquisitions. However, the company's data technology is increasingly seen as a market differentiator, with over 70% of new client wins in 2024 incorporating data and marketing products.
InvestingPro Insights
Alkami Technology's secondary offering comes at a time when the company is experiencing significant growth and market interest. According to InvestingPro data, Alkami's revenue growth stands at an impressive 26.73% over the last twelve months as of Q3 2023, indicating strong demand for its cloud-based digital banking solutions.
The company's stock has shown remarkable performance, with a 79.58% price total return over the past year. This aligns with an InvestingPro Tip noting that Alkami has delivered a high return over the last year. Additionally, the stock is trading near its 52-week high, with the current price at 96.47% of its peak, suggesting investor confidence in the company's prospects.
Despite the strong revenue growth and stock performance, it's worth noting that Alkami is not currently profitable, as highlighted by another InvestingPro Tip. The company's P/E ratio stands at -85.34, reflecting this lack of profitability. However, analysts predict that the company will become profitable this year, which could explain the strong investor interest and the decision by major stockholders to capitalize on the current stock valuation.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Alkami Technology, providing deeper insights into the company's financial health and market position.
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