PLANO, Texas - Alkami Technology, Inc. (NASDAQ: ALKT), a provider of cloud-based digital banking solutions in the U.S., today announced a secondary offering of 5 million shares by affiliated selling stockholders. The shares are being offered by entities associated with General Atlantic, L.P., S3 Ventures Fund III, L.P., George B. Kaiser, and Brian R. Smith. These stockholders may also give the underwriter a 30-day option to buy up to an additional 750,000 shares at the public offering price, minus underwriting discounts and commissions.
The offering's completion is contingent on market conditions and other factors, with no certainty on if or when it may conclude or under what terms. The proceeds from this offering will go entirely to the selling stockholders, with Alkami not selling any shares nor receiving any proceeds from the sale.
J.P. Morgan Securities LLC is the underwriter and the sole book-running manager for the offering. The shares will be offered according to an automatically effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC) on August 8, 2024.
The offering is made solely by a prospectus supplement and the accompanying prospectus that are part of the registration statement. These documents will be available on the SEC's website and can be obtained from J.P. Morgan Securities LLC.
This press release serves as an informational notice and does not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Alkami Technology, Inc. is known for its digital banking solutions that support financial institutions in the U.S. in growing and adapting quickly, fostering digital communities. This announcement is based on a press release statement.
In other recent news, Alkami Technology has been the subject of positive attention from several analyst firms following robust financial performance. Craig-Hallum raised its price target to $38 from $31, maintaining a Buy rating, after Alkami surpassed expectations in both revenue and earnings. Similarly, Lake Street Capital Markets increased its target to $36 from $30, also maintaining a Buy rating, highlighting strong growth in annual recurring revenue. Needham & Company adjusted its outlook, raising the target to $43 from $32, reiterating a Buy rating, following Alkami's Q2 2024 performance. Barclays also increased its price target to $31 from $28, maintaining an Equalweight rating, anticipating a stronger performance in upcoming quarters.
Alkami reported a 25% increase in revenue for Q2 2024, along with an adjusted EBITDA of $4.6 million. The company has also expanded its credit facility and was recognized by J.D. Power for its mobile banking platform experience. Additionally, Alkami appointed Prerna Sachdeva as the new principal accounting officer, bringing more than two decades of experience in global accounting and financial reporting to the role. These are recent developments, shedding light on Alkami's operational and financial progress.
InvestingPro Insights
As Alkami Technology, Inc. (NASDAQ: ALKT) navigates through its secondary offering, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Alkami has a market capitalization of $3.34 billion, reflecting its standing in the cloud-based digital banking solutions market. Despite not being profitable over the last twelve months, the company has seen a substantial 101.32% return over the last year, indicating a strong investor confidence and market growth potential.
InvestingPro Tips highlight that Alkami's liquid assets exceed its short-term obligations, which suggests a solid financial position for handling its current liabilities. Additionally, three analysts have revised their earnings upwards for the upcoming period, signaling optimism in Alkami's future profitability. This is particularly relevant for investors considering the impact of the secondary offering on the company's stock performance.
While Alkami is currently trading at a high revenue valuation multiple with a Price / Book ratio of 10.2, it's worth noting that analysts predict the company will be profitable this year. For those interested in further insights, InvestingPro offers additional tips on Alkami, providing a deeper analysis of its financial metrics and market trends. To explore these insights, visit https://www.investing.com/pro/ALKT.
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