Alkami Technology Hits Stride with 26% Revenue Growth in Q4 2024
Alkami Technology, a leading provider of digital banking solutions, has announced another impressive quarter of financial results, capping off an outstanding full year performance. In the fourth quarter of 2024, Alkami grew revenue by 26%, generating over $10 million in adjusted EBITDA. This significant growth has been attributed to the company's execution of its multi-year revenue and profit targets.
The company ended the quarter with a substantial user base of 20 million users on the Alkami platform, a notable increase of 2.5 million users compared to the prior year. For the full year of 2024, Alkami delivered revenue growth of 26%, adjusted EBITDA margin expansion of 900 basis points, and improved operating cash flow by over $36 million.
During the conference call, Alex Shootman, Chief Executive Officer, highlighted the company's progress on its five-point plan to drive long-term business outcomes. Alkami has successfully expanded its presence in the bank market, leveraging add-on sales to drive growth, investing in its platform for efficiency and differentiation, becoming a destination company for talent, and executing acquisitions that fit into the strategy and business model of the company.
The company's strategy is yielding impressive results, with 42 banks under contract, including 23 live on the Alkami platform at the end of 2024. This represents a significant increase from the eight banks on the platform in 2021. In addition, Alkami became the #1 digital banking provider in the credit union market in terms of mobile users.
Alkami's client sales team has played a crucial role in increasing revenue per user by 30% since 2021 and tripling annual renewal count to 42 in 2024. The company's platform investments have improved quality, resiliency, and scalability, with hosting cost per user decreasing by 26% over the last three years.
The company has also made significant strides on the talent front, increasing its retention rate to 85% since 2021, achieving employee engagement scores of 82%, and winning numerous awards for best culture, sales team, product team, HR team, engineering team, leadership team, and places to work in fintech.
With these impressive results, Alkami is poised for continued growth, with plans to acquire Mantel's people, products, and clients. The acquisition aligns with the company's strategy and business model, further solidifying its position as a leading provider of digital banking solutions."
