Alkami Technology, Inc. (NASDAQ:ALKT) Q2 2023 Earnings Conference Call August 2, 2023 5:00 PM ET

Company Participants

Steve Calk - Head Of Investor Relations

Alex Shootman - Chief Executive Officer

Bryan Hill - Chief Financial Officer

Conference Call Participants

Patrick Walravens - JMP Securities LLC

Chris Kennedy - William Blair

Jacob Stephan - Lake Street

Saket Kalia - Barclays Bank PLC

Charles Nabhan - Stephens Inc.

Daniel Hibshman - Craig-Hallum

Operator

Hello, and welcome to Alkami's Second Quarter 2023 Financial Results Conference Call. My name is Sarah, and I will be your operator for today's call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Steve Calk. Steve, you may begin.

Steve Calk

Thank you, operator. With me on today's call are Alex Shootman, Chief Executive Officer; and Bryan Hill, Chief Financial Officer.

During today's call, we may make forward-looking statements about guidance and other matters regarding our future performance. These statements are based on management's current views and expectations and are subject to various risks and uncertainties. Our actual results may be materially different. For a summary of risk factors associated with our forward-looking statements, please refer to today's press release and the sections in our latest Form 10-K entitled Risk Factors and Forward-Looking Statements. The statements made during the call are being made as of today, and we undertake no obligation to update or revise any forward-looking statements.

Also, unless otherwise noted, financial measures discussed on this call will be on a non-GAAP basis. We believe these measures are useful to investors in the understanding of our financial results. A reconciliation of comparable GAAP financial measures can be found in our earnings press release and in our filings with the SEC.

I will now turn the call over to Alex.

Alex Shootman

Thank you, Steve, and welcome, everyone. I am pleased to report another quarter of strong operating and financial performance. In the second quarter of 2023 Alkami grew revenue 30%, once again ahead of our expectations. We exited the quarter with 15.8 million live registered users on the Alkami platform, up 2.5 million compared to the prior year, and we achieved a $2.5 million adjusted EBITDA loss better than the high end of our expectations for the quarter. During the second quarter, Alkami continued to execute with a consistency that has characterized our business for over a decade and recently as a public company. Since our IPO in the second quarter of 2021, the number of registered users on our digital banking platform is up almost 50%, our quarterly revenue is up 79% and our ARR is up 78%. Our consistent growth in operating improvement has occurred quarter-after-quarter to both low and rising interest rates and various economic and political cycles during the spring banking crisis, in which three mid-sized US banks failed and during and after global pandemic. This consistency gives us confidence in our revenue growth targets and our ability to achieve a 20% or better adjusted EBITDA margin by 2026.