Alkami Technology Navigates Bank Failures Despite U.S. Financial System Loan Drop
July 7, 2023
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Alkami Technology ($NASDAQ:ALKT) is a leading provider of digital banking software for banks and credit unions across the U.S. The company’s technology allows customers to access their accounts online and manage their finances with ease and convenience. Despite the economic downturn caused by the pandemic, Alkami has been able to navigate the U.S. financial system to sustain itself through these challenging times. Due to the decline in loan demand amid the pandemic, Alkami has seen a decrease in revenue growth.
However, the company has been able to steer away from potential failures due to its smart banking software, allowing banks and credit unions to remain afloat despite the economic downturn. Alkami’s technology has enabled banks and credit unions to make better lending decisions and improve their customer service, helping them stay competitive in today’s market. Since its inception, Alkami Technology has provided innovative software solutions to the banking sector, allowing customers to have better control over their finances while their banks remain safe and secure. As the U.S. financial system continues to struggle from the effects of the pandemic, Alkami’s software solutions continue to provide a steady source of income for its customers, allowing them to remain competitive in today’s market.
Earnings
ALKAMI TECHNOLOGY recently reported its earnings for FY2023 Q1, with a total revenue of 33.26M USD and a net income loss of 10.88M USD as of March 31 2021. This significant drop in total revenue as compared to the previous year has been attributed to the decline in U.S. financial system loans. Despite a 25.7% decrease in total revenue this quarter, ALKAMI TECHNOLOGY has managed to navigate the decrease and stabilize its total revenue, increasing it from 33.26M USD at the start of FY2021 to 60.0M USD by the end of FY2023 Q1. This impressive growth is an indication of ALKAMI TECHNOLOGY’s ability to maintain profitability and stability in the face of changing economic conditions.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alkami Technology. More…
| Total Revenues | Net Income | Net Margin |
| 219.48 | -62.16 | -33.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alkami Technology. More…
| Operations | Investing | Financing |
| -39.06 | -94.68 | 59.99 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alkami Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 482.06 | 153.94 | 3.53 |
Key Ratios Snapshot
Some of the financial key ratios for Alkami Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 40.6% | – | -26.0% |
| FCF Margin | ROE | ROA |
| -19.9% | -10.8% | -7.4% |
Market Price
On Monday, ALKAMI TECHNOLOGY stock opened at $16.3 and closed at $16.3, down by 0.7% from previous closing price of 16.4. Despite the drop, ALKAMI TECHNOLOGY has been able to navigate the financial system downturn due to the U.S. loan drop. The company has been able to develop new strategies and technologies to better support banks and other financial institutions facing these loan drops. ALKAMI TECHNOLOGY’s solutions have enabled many banks to continue serving their customers despite the financial situation.
The company’s continued focus on innovation and customer service has also led to an impressive customer portfolio and partnerships with leading financial institutions. It is clear that ALKAMI TECHNOLOGY is able to successfully manage and adapt to challenging conditions in the U.S. financial system. Live Quote…
Analysis
At GoodWhale, we conducted an analysis of ALKAMI TECHNOLOGY‘s fundamentals and the results are as follows. Our Risk Rating shows that ALKAMI TECHNOLOGY is a high risk investment in terms of both financial and business aspects. We detected 3 risk warnings in their balance sheet, cash flow statement, and financial journal. If you would like to learn more about these risk warnings and how they could affect your investment decision, you can register with us to gain full access to our research. More…
Peers
Its competitors include MoneyLion Inc, AppTech Payments Corp, and Temenos AG. Alkami Technology Inc has a strong market presence and offers a comprehensive suite of digital banking solutions. Its products are well-received by customers and its services are highly competitive.
– MoneyLion Inc ($NYSE:ML)
MoneyLion Inc is a financial technology company that offers a mobile app and a platform that provides its users with access to financial products and services. The company has a market cap of 252.47M as of 2022 and a return on equity of -14.08%. MoneyLion’s products and services include a mobile app, a personal finance management tool, a credit builder product, and a lending product. The company was founded in 2013 and is headquartered in New York, NY.
– AppTech Payments Corp ($NASDAQ:APCX)
AppTech Payments Corp is a provider of payment processing solutions. The company offers a range of services, including online payment processing, mobile payment processing, and point-of-sale payment processing. AppTech Payments Corp has a market cap of 13.55M as of 2022, a Return on Equity of -88.5%. The company’s primary focus is on small and medium-sized businesses, providing them with the tools and services they need to streamline their payment processing. AppTech Payments Corp is headquartered in Atlanta, Georgia.
– Temenos AG ($LTS:0QOA)
Temenos AG is a leading provider of banking software. The company has a market cap of 4.07B as of 2022 and a return on equity of 27.62%. Temenos is headquartered in Geneva, Switzerland and has a strong global presence with over 3,000 customers in over 150 countries. The company’s software helps banks drive digital transformation and deliver superior customer experiences.
Summary
ALKAMI Technology is a banking software provider for credit unions and banks in the U.S. Despite the financial turmoil caused by the pandemic, ALKAMI has been able to sidestep bank failures and continue to grow its revenue. However, loan volumes across the U.S. financial system have dropped significantly. Analysts believe that ALKAMI’s unique technology should help it remain competitive in the banking software sector, and despite near-term uncertainty, investors should keep a close eye on ALKAMI’s future performance.
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