The Alkami Technology, Inc. (NASDAQ:ALKT) Annual Results Are Out And Analysts Have Published New Forecasts

The full-year results for Alkami Technology, Inc. (NASDAQ:ALKT) were released last week, making it a good time to revisit its performance. It was a respectable set of results; while revenues of US$204m were in line with analyst predictions, statutory losses were 11% smaller than expected, with Alkami Technology losing US$0.64 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Alkami Technology

Taking into account the latest results, the most recent consensus for Alkami Technology from seven analysts is for revenues of US$258.7m in 2023 which, if met, would be a substantial 27% increase on its sales over the past 12 months. Losses are expected to increase slightly, to US$0.67 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$257.2m and losses of US$0.57 per share in 2023. So it's pretty clear the analysts have mixed opinions on Alkami Technology even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

The consensus price target held steady at US$18.86, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Alkami Technology analyst has a price target of US$23.00 per share, while the most pessimistic values it at US$16.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 27% growth on an annualised basis. That is in line with its 29% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Alkami Technology is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at US$18.86, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Alkami Technology going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for Alkami Technology that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.