Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number 001-40321

ALKAMI TECHNOLOGY, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware		45-3060776
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

5601 Granite Parkway,	Suite 120
Plano,	TX	75204
(Address of Principal Executive Offices)		(Zip Code)

(877) 725-5264

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value per share	ALKT	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Smaller reporting company	☐
Accelerated filer	☒	Emerging growth company	☒
Non-accelerated filer	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of registrant’s common stock outstanding as of June 30, 2024 was 98,985,370.


TABLE OF CONTENTS


PART I ‑ FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Unaudited Condensed Consolidated Balance Sheets	1
	Unaudited Condensed Consolidated Statements of Operations	2
	Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity	3
	Unaudited Condensed Consolidated Statements of Cash Flows	4
	Notes to the Unaudited Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	24

PART II ‑ OTHER INFORMATION
Item 1.	Legal Proceedings	25
Item 1A.	Risk Factors	25
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	25
Item 3.	Defaults Upon Senior Securities	25
Item 4.	Mine Safety Disclosures	25
Item 5.	Other Information	25
Item 6.	Exhibits	26

Signatures		27

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

(UNAUDITED)


	June 30,		December 31,
	2024		2023
Assets
Current assets
Cash and cash equivalents	$	61,432	$	40,927
Marketable securities	25,962		51,196
Accounts receivable, net	38,952		35,499
Deferred costs, current	11,478		10,329
Prepaid expenses and other current assets	14,132		10,634
Total current assets	151,956		148,585
Property and equipment, net	19,539		16,946
Right-of-use assets	15,180		15,754
Deferred costs, net of current portion	32,542		30,734
Intangibles, net	32,414		35,807
Goodwill	148,050		148,050
Other assets	4,176		3,949
Total assets	$	403,857	$	399,825
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	5,794	$	7,478
Accrued liabilities	20,879		19,763
Deferred revenues, current portion	12,572		10,984
Lease liabilities, current portion	1,275		1,205
Total current liabilities	40,520		39,430
Deferred revenues, net of current portion	16,445		15,384
Deferred income taxes	1,760		1,713
Lease liabilities, net of current portion	17,736		18,052
Other non-current liabilities	212		305
Total liabilities	76,673		74,884
Stockholders’ Equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized and 0 shares issued and outstanding as of June 30, 2024 and December 31, 2023	—		—
Common stock, $0.001 par value, 500,000,000 shares authorized; and 98,985,370 and 96,722,098 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	99		97
Additional paid-in capital	786,201		760,210
Accumulated deficit	(459,116)		(435,366)
Total stockholders’ equity	327,184		324,941
Total liabilities and stockholders' equity	$	403,857	$	399,825

The above financial statements should be read in conjunction with the Notes to the Unaudited Condensed Consolidated Financial Statements.

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(UNAUDITED)


	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Revenues	$	82,160	$	65,763	$	158,287	$	125,759
Cost of revenues(1)	33,389		30,289		65,484		58,147
Gross profit	48,771		35,474		92,803		67,612
Operating expenses:
Research and development	23,909		20,866		46,729		41,415
Sales and marketing	16,964		13,883		30,807		24,761
General and administrative	20,612		18,207		39,927		35,318
Acquisition-related expenses	135		34		195		220
Amortization of acquired intangibles	358		357		717		717
Total operating expenses	61,978		53,347		118,375		102,431
Loss from operations	(13,207)		(17,873)		(25,572)		(34,819)
Non-operating income (expense):
Interest income	1,261		2,016		2,343		3,742
Interest expense	(74)		(1,826)		(147)		(3,583)
(Loss) gain on financial instruments	(112)		10		—		220
Loss before income taxes	(12,132)		(17,673)		(23,376)		(34,440)
Provision for income taxes	185		88		374		284
Net loss	$	(12,317)	$	(17,761)	$	(23,750)	$	(34,724)
Net loss per share attributable to common stockholders:
Basic and diluted	$	(0.13)	$	(0.19)	$	(0.24)	$	(0.37)
Weighted-average number of shares of common stock outstanding:
Basic and diluted	98,103,527		93,334,725		97,524,379		92,868,623

(1) Includes amortization of acquired technology of $1.4 million for both the three months ended June 30, 2024 and 2023, and $2.7 million for both the six months ended June 30, 2024 and 2023.

The above financial statements should be read in conjunction with the Notes to the Unaudited Condensed Consolidated Financial Statements.

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(in thousands, except share data)

(UNAUDITED)


		Three months ended June 30, 2024
	Common Stock		Additional Paid-in Capital			Accumulated Deficit		Total Stockholders’ Equity
		Shares			Amount
Balance March 31, 2024		97,515,483	$	98		$	769,608	$	(446,799)	$	322,907
Stock-based compensation		—	—			15,356		—		15,356
Issuance of common stock upon restricted stock unit vesting		537,974	—			—		—		—
Common stock issued under Employee Stock Purchase Plan (ESPP)		216,174	—			2,598		—		2,598
Exercised stock options		715,739	1			5,756				5,757
Payments for taxes related to net settlement of equity awards		—	—			(7,117)		—		(7,117)
Net loss		—	—			—		(12,317)		(12,317)
Balance June 30, 2024		98,985,370	$	99		$	786,201	$	(459,116)	$	327,184


		Three months ended June 30, 2023
	Common Stock			Additional Paid-in Capital			Accumulated Deficit		Total Stockholders’ Equity
			Shares			Amount
Balance March 31, 2023			92,864,741	$	93		$	717,450	$	(389,416)	$	328,127
Stock-based compensation			—	—			13,205		—		13,205
Issuance of common stock upon restricted stock unit vesting			710,837	1			—		—		1
Common stock issued under ESPP			271,880	—			2,407		—		2,407
Exercised stock options			381,418	—			1,386		—		1,386
Payments for taxes related to net settlement of equity awards			—	—			(4,841)		—		(4,841)
Net loss			—	—			—		(17,761)		(17,761)
Balance June 30, 2023			94,228,876	$	94		$	729,607	$	(407,177)	$	322,524


		Six months ended June 30, 2024
	Common Stock			Additional Paid-in Capital			Accumulated Deficit		Total Stockholders’ Equity
			Shares			Amount
Balance December 31, 2023			96,722,098	$	97		$	760,210	$	(435,366)	$	324,941
Stock-based compensation			—	—			29,262		—		29,262
Issuance of common stock upon restricted stock unit vesting			1,021,491	1			(1)		—		—
Common stock issued under ESPP			216,174				2,598		—		2,598
Exercised stock options			1,025,607	1			6,927		—		6,928
Payments for taxes related to net settlement of equity awards			—	—			(12,795)		—		(12,795)
Net loss			—	—			—		(23,750)		(23,750)
Balance June 30, 2024			98,985,370	$	99		$	786,201	$	(459,116)	$	327,184


		Six months ended June 30, 2023
	Common Stock			Additional Paid-in Capital			Accumulated Deficit		Total Stockholders’ Equity
			Shares			Amount
Balance December 31, 2022			92,112,749	$	92		$	706,407	$	(372,453)	$	334,046
Stock-based compensation			—	—			24,817		—		24,817
Issuance of common stock upon restricted stock unit vesting			1,003,428	1			—		—		1
Common stock issued under ESPP			271,880	—			2,407				2,407
Exercised stock options			840,819	1			2,801		—		2,802
Payments for taxes related to net settlement of equity awards			—	—			(6,825)		—		(6,825)
Net loss			—	—			—		(34,724)		(34,724)
Balance June 30, 2023			94,228,876	$	94		$	729,607	$	(407,177)	$	322,524

The above financial statements should be read in conjunction with the Notes to the Unaudited Condensed Consolidated Financial Statements.

ALKAMI TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(UNAUDITED)


	Six months ended June 30,
	2024		2023
Cash flows from operating activities:
Net loss	$	(23,750)	$	(34,724)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	5,175		5,146
Accrued interest on marketable securities, net	(787)		(1,179)
Stock-based compensation expense	28,565		24,399
Amortization of debt issuance costs	65		80
Gain on financial instruments	—		(177)
Deferred taxes	47		85
Changes in operating assets and liabilities:
Accounts receivable	(3,453)		(1,906)
Prepaid expenses and other current assets	(3,790)		(1,882)
Accounts payable and accrued liabilities	(653)		(2,126)
Deferred costs	(2,569)		(2,856)
Deferred revenues	2,649		(185)
Net cash provided by (used in) operating activities	1,499		(15,325)
Cash flows from investing activities:
Purchase of marketable securities	(15,588)		(62,640)
Proceeds from sales, maturities and redemptions of marketable securities	41,609		65,622
Purchases of property and equipment	(731)		(417)
Capitalized software development costs(1)	(3,015)		(2,661)

Net cash provided by (used in) investing activities	22,275		(96)
Cash flows from financing activities:
Principal payments on debt	—		(1,063)
Debt issuance costs paid	—		(341)
Proceeds from ESPP issuances	2,598		2,407
Payment of holdback funds from acquisition	—		(1,000)
Payments for taxes related to net settlement of equity awards	(12,795)		(6,825)
Proceeds from stock option exercises	6,928		2,802
Net cash used in financing activities	(3,269)		(4,020)
Net increase (decrease) in cash and cash equivalents and restricted cash	20,505		(19,441)
Cash and cash equivalents and restricted cash, beginning of period	40,927		112,337
Cash and cash equivalents and restricted cash, end of period	$	61,432	$	92,896

(1) See Note 3 for additional information regarding non-cash investing activities for the six months ended June 30, 2024 and 2023 related to capitalized software development costs.

The above financial statements should be read in conjunction with the Notes to the Unaudited Condensed Consolidated Financial Statements.

ALKAMI TECHNOLOGY, INC.

Notes to the Unaudited Condensed Consolidated Financial Statements

(in thousands, except share and per share data)

(Unaudited)

Note 1. Organization

Description of Business

Alkami Technology, Inc. (the “Company”) is a cloud-based digital banking solutions provider. The Company inspires and empowers community, regional and super-regional financial institutions (“FIs”) to compete with large, technologically advanced and well-resourced banks in the United States. The Company’s solution, the Alkami Digital Banking Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. The Company cultivates deep relationships with its clients through long-term, subscription-based contractual arrangements, aligning its growth with its clients’ success and generating an attractive unit economic model. The Company was incorporated in Delaware in August 2011, and its principal offices are located in Plano, Texas.

Note 2. Summary of Significant Accounting Policies

The accompanying condensed consolidated financial statements reflect the application of significant accounting policies as described below.

Basis of Presentation and Consolidation

The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany accounts and transactions are eliminated.

In the Company's opinion, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2023, which are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2024.

The Company has no sources of other comprehensive income, and accordingly, net loss presented each period is the same as comprehensive loss.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant estimates and assumptions include determining the timing and amount of revenue recognition and business combinations.

Recent Accounting Pronouncements

In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU No. 2023-07 amended the existing segment reporting requirements by requiring disclosure of the significant segment expenses based on how management internally views segment information and by allowing the disclosure of more than one measure of segment profit or loss, as well as by expanding the interim period segment requirements. The ASU also requires single-reportable segment entities to report the disclosures required under ASC Topic 280, Segment Reporting. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact the updated standard will have on its financial statement disclosures.

In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 should be applied prospectively; however, retrospective application is permitted. The Company is currently evaluating the impact the updated standard will have on its financial statement disclosures.

Note 3. Property and Equipment, Net

Depreciation and amortization expense was $0.9 million and $1.8 million for the three and six months ended June 30, 2024, respectively, and $0.9 million and $1.8 million for the three and six months ended June 30, 2023, respectively.

Property and equipment, net, includes the following amounts at June 30, 2024 and December 31, 2023:


(in thousands)	Useful Life	June 30, 2024		December 31, 2023
Software	2 to 5 years	$	920	$	920
Capitalized software development costs	5 years	15,663		12,263
Computers and equipment	3 years	6,847		6,359
Furniture and fixtures	5 years	3,965		3,988
Leasehold improvements	3 to 10 years	12,858		12,312
		$	40,253	$	35,842
Less: accumulated depreciation and amortization		(20,714)		(18,896)
Property and equipment, net		$	19,539	$	16,946

For both the six months ended June 30, 2024 and 2023, the Company had non-cash investing activities of $0.4 million for capitalized stock-based compensation related to capitalized software development costs. Additionally, the Company recognized stock-based compensation expense on the amortization of capitalized stock-based compensation associated with capitalized software development costs of $0.1 million for both the three and six months ended June 30, 2024 and none for both the three and six months ended June 30, 2023.

Note 4. Revenues and Deferred Costs

The Company derives the majority of its revenues from recurring monthly subscription fees charged for the use of its software-as-a-service (“SaaS”) subscription services. Subscription revenues are generally recognized as revenue over the term of the contract as a series of distinct SaaS services bundled into a single performance obligation. Clients are usually charged a one-time, upfront implementation fee and recurring annual and monthly access fees for the use of the online digital relationship banking solution. Implementation and integration of the digital banking platform is complex, and the Company has determined that the one-time, upfront services do not transfer a promised service to the client. As these services are not distinct, they are bundled into the SaaS series of services, and the associated fees are recognized on a straight-line basis over the subscription term. Other services includes professional services and custom development.

The following table disaggregates the Company's revenue by major source for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
SaaS subscription services	$	78,371	$	61,169	$	151,383	$	118,688
Implementation services	2,110		3,214		3,958		4,884
Other services	1,679		1,380		2,946		2,187
Total revenues	$	82,160	$	65,763	$	158,287	$	125,759

The Company recognized approximately $4.7 million of revenue during the six months ended June 30, 2024 that was included in deferred revenues in the accompanying condensed consolidated balance sheets as of the beginning of the reporting period. For those contracts that were wholly or partially unsatisfied as of June 30, 2024, minimum contracted subscription revenues to be recognized in future periods total approximately $1.2 billion. The Company expects to recognize approximately 47.2% of this amount as subscription services are transferred to customers over the next 24 months, an additional 35.4% in the next 25 to 48 months, and the balance thereafter. This estimate does not include estimated consideration for excess user and transaction processing fees that the Company expects to earn under its subscription contracts.

Contract assets totaled $1.3 million and $1.5 million as of June 30, 2024 and December 31, 2023, respectively, which are included in other assets in the accompanying condensed consolidated balance sheets.

Deferred Cost Recognition

The Company capitalized $1.7 million and $2.9 million in deferred commissions costs during the three and six months ended June 30, 2024, respectively, and $2.0 million and $2.8 million for the three and six months ended June 30, 2023, respectively, and recognized amortization of $1.3 million and $2.5 million during the three and six months ended June 30, 2024, respectively, and $0.8 million and $1.7 million during the three and six months ended June 30, 2023, respectively. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred commissions are considered costs to obtain a contract and are included in deferred costs in the accompanying condensed consolidated balance sheets in the amount of $21.6 million and $21.2 million as of June 30, 2024 and December 31, 2023, respectively.

The Company capitalized implementation costs of $2.3 million and $5.2 million during the three and six months ended June 30, 2024, respectively, and $2.0 million and $4.1 million for the three and six months ended June 30, 2023, respectively, and recognized amortization of $1.3 million and $2.7 million during the three and six months ended June 30, 2024, respectively, and $1.2 million and $2.3 million for the three and six months ended June 30, 2023, respectively. Amortization expense is included in cost of revenues in the accompanying condensed consolidated

statements of operations. These deferred costs are considered costs to fulfill client contracts and are included in deferred costs in the accompanying condensed consolidated balance sheets in the amount of $22.4 million and $19.8 million as of June 30, 2024 and December 31, 2023, respectively.

The Company periodically reviews the carrying amount of deferred costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. No material impairment losses were recognized in relation to these capitalized costs for the three and six months ended June 30, 2024 and 2023.

Note 5. Accounts Receivable

Accounts receivable includes the following amounts at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in thousands)	2024		2023
Trade accounts receivable	$	31,695	$	30,111
Unbilled receivables	7,686		5,975
Total receivables	39,381		36,086
Allowance for credit losses	(54)		(59)
Reserve for estimated credits	(375)		(528)
	$	38,952	$	35,499

Note 6. Accrued Liabilities

Accrued liabilities consisted of the following at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in thousands)	2024		2023
Bonus accrual	$	6,807	$	7,798
Accrued vendor purchases	76		174
Commissions accrual	436		2,026
Accrued hosting services	2,038		428
Client refund liability	452		660
Accrued consulting and professional fees	518		713
Accrued tax liabilities	483		1,166
ESPP liability	638		682
Other accrued liabilities	9,431		6,116
Total accrued liabilities	$	20,879	$	19,763

Note 7. Debt

On June 27, 2023, the Company entered into a First Amendment (the “First Amendment”) to the Company’s Amended and Restated Credit Agreement, dated as of April 29, 2022 (as amended by the First Amendment, the “Amended Credit Agreement”), with Silicon Valley Bank (“SVB”), Comerica Bank and Canadian Imperial Bank of Commerce. The First Amendment provided for Citibank, N.A. to join as a new lender, increased the amount of the Revolving Facility (as defined below) commitment by $20.0 million and extended the maturity date of the Amended Credit Agreement to April 29, 2026, as well as other changes discussed below. The Amended Credit Agreement, inclusive of changes established by the First Amendment, includes the following, among other features:

•Revolving Facility: The Amended Credit Agreement provides $60.0 million in aggregate commitments for secured revolving loans (“Revolving Facility”), of which there were no outstanding borrowings as of June 30, 2024.

•Term Loan: A term loan of $85.0 million (the “Term Loan”) was borrowed on April 29, 2022, the proceeds of which were used to replenish cash used to fund the acquisition of Segmint, which closed on April 25, 2022. On December 29, 2023, the Company paid the remaining outstanding principal balance of its term loan of $82.9 million.

•Accordion Feature: The Amended Credit Agreement also permits the Company, subject to certain conditions, to request additional revolving loan commitments in an aggregate principal amount of up to $50.0 million, of which there were no outstanding borrowings as of June 30, 2024.

Revolving Facility loans under the Amended Credit Agreement may be voluntarily prepaid and re-borrowed. Principal payments on the Term Loan are due in quarterly installments equal to an initial amount of approximately $1.1 million, beginning on June 30, 2023 and continuing through March 31, 2024, and increasing to approximately $2.1 million beginning on June 30, 2024 through the Amended Credit Agreement maturity date. Once repaid or prepaid, the Term Loan may not be re-borrowed.

The First Amendment added additional covenants that begin each fiscal quarter ending on or after April 29, 2025 (the “Financial Covenant Trigger Date”). Before the Financial Covenant Trigger Date, borrowings under the Amended Credit Agreement bear interest at a variable rate based upon the Secured Overnight Financing Rate (the “SOFR”) plus a margin of 3.00% to 3.50% per annum depending on the applicable recurring revenue leverage ratio. After the Financial Covenant Trigger Date, borrowings under the Amended Credit Agreement bear interest at a variable rate based upon the SOFR plus a margin of 1.50%, 2.00%, 2.50% or 3.00% per annum depending on the applicable consolidated total leverage ratio. If the SOFR is ever less than 0%, then the SOFR shall be deemed to be 0%. The Amended Credit Agreement is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants and events of default. The Company

is required to pay a commitment fee of 0.25% per annum on the undrawn portion available under the Revolving Facility and variable fees on outstanding letters of credit. The Company has a standby letter of credit in the amount of $0.3 million, which serves as security under the lease relating to the Company’s office space that expires in 2033.

Obligations under the Amended Credit Agreement are guaranteed by the Company’s subsidiaries and secured by all or substantially all of the assets of the Company and its subsidiaries pursuant to an Amended and Restated Guarantee and Collateral Agreement.

The Amended Credit Agreement contains customary affirmative and negative covenants. Before the Financial Covenant Trigger Date, the following covenants are applicable: (i) an annual recurring revenue growth covenant requiring the loan parties to have recurring revenues in any four consecutive fiscal quarter period in an amount that is 10% greater than the recurring revenues for the corresponding four consecutive quarter period in the previous year; and (ii) a liquidity (defined as the aggregate amount of cash in bank accounts subject to a control agreement plus availability under the Revolving Facility) covenant, requiring the loan parties to have liquidity, tested on the last day of each calendar month, of $20.0 million or more. After the Financial Covenant Trigger Date, the existing annual recurring revenue growth and liquidity financial covenants are no longer applicable, and the following covenants take effect: (i) a consolidated total leverage ratio requiring the ratio, as calculated at the last day of such fiscal quarter for the period of 12 consecutive months then ending, to be less than 3.50:1.00; and (ii) a consolidated fixed charge ratio requiring the ratio, for any fiscal quarter ending as calculated at the last day of such fiscal quarter for the period of 12 consecutive months then ending, to be more than 1.25:1.00.

The First Amendment also added, applicable beginning June 30, 2023, a free cash flow covenant requiring, as calculated at the last day of such fiscal quarter for the period of 12 consecutive months then ending, free cash flow to be not less than $(75.0) million for the fiscal quarters ended June 30, 2023 and September 30, 2023, respectively, and $(50.0) million for the fiscal quarter ended December 31, 2023 and each fiscal quarter ending thereafter.

The Amended Credit Agreement also contains customary events of default, which if they occur, could result in the termination of commitments under the Amended Credit Agreement, the declaration that all outstanding loans are immediately due and payable in whole or in part, and the requirement to maintain cash collateral deposits in respect of outstanding letters of credit. The Company was in compliance with all covenants as of June 30, 2024.

Note 8. Stockholders' Equity

Equity Compensation Plans

Stock-based compensation expense was included in the condensed consolidated statements of operations as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenues	$	1,347	$	1,487	$	2,525	$	2,633
Research and development	4,256		3,963		8,254		7,738
Sales and marketing	2,291		1,813		4,322		3,403
General and administrative	7,119		5,489		13,464		10,222
Total stock-based compensation expenses	$	15,013	$	12,752	$	28,565	$	23,996

Note 9. Income Taxes

The Company recorded income tax expense of $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, resulting in an effective tax rate of (1.5)% and (1.6)%, respectively, compared to income tax expense of $0.1 million and $0.3 million for the three and six months ended June 30, 2023, respectively, resulting in an effective tax rate of (0.5)% and (0.8)%, respectively.

The Company’s effective tax rate for the three and six months ended June 30, 2024 and 2023 differs from the statutory tax rate primarily due to the impact of the valuation allowance against its deferred tax assets and state tax expense.

The Company recognizes deferred tax assets and liabilities based on the estimated future tax effects of temporary differences between the financial statement basis and tax basis of assets and liabilities given the provisions of enacted tax law. Management reviews deferred tax assets to assess their future realization by considering all available evidence, both positive and negative, to determine whether a valuation allowance is needed for all or some portion of the deferred tax assets, using a “more likely than not” standard. The assessment considers, among other matters: historical losses, future reversals of taxable temporary differences, the duration of statutory carryback and carryforward periods, and ongoing prudent and feasible tax planning strategies. As a result, the Company has established a valuation allowance against most of its deferred tax assets as realization is not reasonably assured based upon a “more likely than not” threshold. The Company reassesses the realizability of deferred tax assets regularly, and it will adjust the valuation allowance as sufficient objective positive evidence becomes available.

Note 10. Fair Value of Financial Instruments

The Company’s financial instruments consist primarily of cash, restricted cash and cash equivalents, marketable securities, accounts receivable and accounts payable. The carrying values of cash, restricted cash and cash equivalents, accounts receivable and accounts payable approximate their respective fair values due to the short-term nature of these instruments. Cash equivalents include amounts held in money market accounts that are measured at fair value using observable market prices. Marketable securities include debt securities that are measured at fair value using observable inputs.

The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.

Level 3. Significant unobservable inputs that are supported by little or no market activity.

The Company evaluates its financial assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level in which to classify them for each reporting period. The following tables summarize the Company’s financial assets measured at fair value as of June 30, 2024 and December 31, 2023 and indicate the fair value hierarchy of the valuation:


			Fair Value at Reporting Date Using
(in thousands)	June 30, 2024		Level 1		Level 2		Level 3
Assets:
Cash equivalents(1)	$	47,424	$	47,424	$	—	$	—
Marketable securities:
Corporate bonds	5,166		—		5,166		—
Commercial paper	3,265		—		3,265		—
U.S. Treasury debt securities	15,335		15,335		—		—
International debt securities	2,196		—		2,196		—
Total marketable securities	25,962		15,335		10,627		—
Total Assets	$	73,386	$	62,759	$	10,627	$	—

(1) Includes insured cash sweep account, cash sweep account, money market account and money market funds that have investments primarily in U.S. Government Agency debt, U.S. Treasury debt, U.S. Treasury Repurchase Agreements, U.S. Government Agency Repurchase Agreements, and corporate bonds that have a maturity of three months or less from the original acquisition date.


			Fair Value at Reporting Date Using
(in thousands)	December 31, 2023		Level 1		Level 2		Level 3
Assets:
Cash equivalents(1)	$	34,463	$	34,463	$	—	$	—
Marketable securities:
Corporate bonds	16,206		—		16,206		—
Commercial paper	7,279		—		7,279		—
U.S. government-sponsored enterprise securities	3,500		—		3,500		—
U.S. Treasury debt securities	22,067		22,067		—		—
International debt securities	2,144		—		2,144		—
Total marketable securities	51,196		22,067		29,129		—
Total Assets	$	85,659	$	56,530	$	29,129	$	—

(1) Includes insured cash sweep account, cash sweep account, money market account and money market funds that have investments primarily in U.S. Government Agency debt, U.S. Treasury debt, U.S. Treasury Repurchase Agreements, U.S. Government Agency Repurchase Agreements and corporate bonds that have a maturity of three months or less from the original acquisition date.

Note 11. Earnings Per Share

Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. Because the Company has reported a net loss for the three and six months ended June 30, 2024 and 2023, the number of shares used to calculate diluted net loss per share attributable to common stockholders is the same as the number of shares used to calculate basic net loss per share attributable to common stockholders for the period presented because the potentially dilutive shares would have been anti-dilutive if included in the calculation.

The computation of basic and diluted net loss per share attributable to common stockholders is as follows for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
(in thousands, except shares and per share amounts)	2024		2023		2024		2023
Net loss	$	(12,317)	$	(17,761)	$	(23,750)	$	(34,724)
Weighted-average shares of common stock outstanding - basic and diluted	98,103,527		93,334,725		97,524,379		92,868,623
Net loss per common share - basic and diluted	$	(0.13)	$	(0.19)	$	(0.24)	$	(0.37)

The following potential shares of common stock were excluded from diluted net loss per share as the Company had a net loss in each of the periods presented:


	As of June 30,
	2024	2023
Stock options	2,860,009	5,364,567
Restricted Stock Units	7,347,640	8,621,907
ESPP	28,748	36,768
Total anti-dilutive common share equivalents	10,236,397	14,023,242

Note 12. Commitments and Contingencies

Legal Proceedings

The Company may become party to various legal actions during the ordinary course of business. Defending such proceedings is costly and can impose a significant burden on management and employees, it may receive unfavorable preliminary or interim rulings during litigation, and there can be no assurances that favorable final outcomes will be obtained. In addition, the Company’s industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets and other intellectual property and proprietary rights. Companies in our industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. Furthermore, client agreements typically require the Company to indemnify clients against liabilities incurred in connection with claims alleging its solutions infringe the intellectual property rights of a third party. From time to time, the Company has been involved in disputes related to patent and other intellectual property rights of third parties, none of which has resulted in material liabilities. The Company expects these types of disputes may continue to arise in the future. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims and known potential legal claims, which are likely to be asserted, is not reasonably likely to be material to the Company’s financial position, results of operations, or cash flows, taking into account established accruals for estimated liabilities.

Note 13. Leases

The Company leases office space under non-cancellable operating leases for its corporate headquarters in Plano, Texas pursuant to a 10-year lease agreement under which the Company leases approximately 125,468 square feet of office space with an initial term that expires on August 31, 2028, with the option to extend the lease for either two additional terms of five years each or one additional term of 10 years. Renewal options were not included in the right-of-use (“ROU”) asset and lease liability calculation.

On September 5, 2023, the Company entered into an amendment to its office lease, which, among other things, reduces the leased space in Plano, Texas from approximately 125,468 square feet to 83,939 square feet, effective December 31, 2023, and also extends the term for the remaining reduced leased space to August 31, 2033. The Company determined that the amendment would be treated as a lease modification. The modification resulted in a remeasurement of the operating lease ROU asset and lease liability, and the effect was an increase to the ROU asset and lease liability of $3.1 million and $2.7 million, respectively, as of December 31, 2023. In addition, the Company recorded a gain on lease modification of $0.4 million during the three months ended December 31, 2023, which was included in general and administrative expenses in the consolidated statements of operations.

Operating lease expense consisted of:


(in thousands)	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Operating lease expense	$	674	$	784	$	1,343	$	1,568
Short-term lease expense and other (1)	129		229		432		547
Total lease expense	$	803	$	1,013	$	1,775	$	2,115
(1) Other lease expense includes variable lease expense and sublease income.

Supplemental Cash Flow Information


	Six months ended June 30,
Cash flow information (in thousands)	2024		2023
Cash paid for operating lease liabilities	$	1,324	$	1,877

The future maturities of operating lease liabilities are as follows:


(in thousands)	June 30, 2024
2024 (six months remaining)	$	1,341
2025	2,707
2026	2,648
2027	2,620
2028	2,777
Thereafter	14,981
Total minimum lease payments	27,074
Less: present value discount	(8,063)
Total lease liability balance	$	19,011

Note 14. Goodwill and Other Intangibles

Goodwill and intangible assets deemed to have an indefinite life are not amortized, but are reviewed annually for impairment of value or when indicators of a potential impairment are present. As part of the Company’s business planning cycle, the Company performs an annual goodwill impairment test in the fourth quarter of the fiscal year. There were no indications of impairment of goodwill noted as of June 30, 2024. Goodwill had a carrying value of $148.1 million as of both June 30, 2024 and December 31, 2023.

Total intangibles, net, consisted of the following as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(3,502)	$	16,968
Developed Technology	27,700		(12,827)		14,873
Tradenames	750		(202)		548
Subtotal amortizable intangible assets	48,920		(16,531)		32,389
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(16,531)	$	32,414


	As of December 31, 2023
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(2,820)	$	17,650
Developed Technology	27,700		(10,151)		17,549
Tradenames	750		(167)		583
Subtotal amortizable intangible assets	48,920		(13,138)		35,782
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(13,138)	$	35,807

Amortization expense recognized on intangible assets was $1.7 million and $3.4 million for the three and six months ended June 30, 2024, respectively, and $1.7 million and $3.4 million for the three and six months ended June 30, 2023, respectively.

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in thousands):


2024 (six months remaining)	$	3,393
2025	6,786
2026	6,554
2027	3,162
2028	1,435
Thereafter	11,059
	$	32,389

Note 15. Subsequent Event

On July 1, 2024, the Company entered into a Second Amendment (the “Second Amendment”) to the Amended Credit Agreement. Among other changes, the Second Amendment (i) extends the maturity date of the revolving commitment from April 29, 2026 to April 29, 2027, (ii) increases the amount of the revolving loan commitment by $65.0 million, for a total commitment of $125.0 million, (iii) increases the accordion feature from $50.0 million to $100.0 million of funds available to request, (iv) modifies certain existing covenants, including increasing the minimum trailing four quarters free cash flow requirement to $(25.0) million, and (v) for any fiscal quarter ending after the Financial Covenant Trigger Date (which has been extended to April 28, 2026 or such earlier date as designated by the Company), replaces compliance with a fixed charge coverage ratio with compliance of a minimum interest coverage ratio of 3.0x. The Second Amendment is not expected to have a material impact on the condensed consolidated financial statements.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and in our other filings with the Securities and Exchange Commission (“SEC”), including the audited consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2023, which are included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.

Unless the context otherwise requires, all references in this report to the “Company,” “Alkami,” “we,” “us” and “our” refer to Alkami Technology, Inc., a Delaware corporation, and its consolidated subsidiaries taken as a whole.

Cautionary Note Regarding Forward-Looking Statements

Any statements made in this Quarterly Report on Form 10-Q that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipates,” “expects,” “suggests,” “plans,” “believes,” “intends,” “estimates,” “targets,” “projects,” “seeks,” “should,” “can,” “could,” “would,” “may,” “will,” “forecasts” “strategy,” “future,” “likely” or the negative of these terms or other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Forward-looking statements are not guarantees of future performance or results and are subject to and involve risks, uncertainties and assumptions. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our actual results or results of operations and could cause actual results to differ materially from those expressed in the forward-looking statements. The following important factors, along with the factors discussed in “Risk Factors” in the Annual Report on Form 10-K, may materially affect such forward-looking statements:

•managing our rapid growth;

•attracting new clients and retaining and broadening our existing clients’ use of our solutions;

•maintaining, protecting and enhancing our brand;

•predicting the long-term rate of client subscription renewals or adoption of our solutions;

•the unpredictable and time-consuming nature of our sales cycles;

•integration with and reliance on third-party software, content and services;

•integrating our solutions with other systems used by our clients;

•satisfying our clients and meeting their digital banking needs;

•our dependence on the data centers operated by third parties and third-party internet hosting providers;

•defects, errors or performance problems associated with our solutions;

•retaining our management team and key employees and recruiting and retaining new employees;

•managing the increased complexity of our clients’ integration and functionality requirements;

•shifts in the number of account holders and registered users of our solutions, their use of our solutions and our clients’ implementation and client support needs;

•acquiring or investing in other companies or pursuing business partnerships;

•natural or man-made disasters;

•cybersecurity breaches or other compromises of our security measures or those of third parties upon which we rely;

•privacy and data security concerns, laws, regulations and standards and our processing and use of the PI of end users;

•intense competition in the markets we serve;

•reliance on the financial services industry as the source of our revenue in the event of any downturn, consolidation or decrease in technological spend in such industry;

•evolving technological requirements and changes and additions to our solution offerings;

•the political, economic and competitive conditions in the markets and jurisdictions where we operate;

•regulations and laws applicable to us, our clients and our solutions;

•protecting our intellectual property rights and defending ourselves against claims that we are misappropriating the intellectual property rights of others;

•using open-source software in our solutions or risks resulting in the disclosure our proprietary source code to our clients;

•complying with license or technology agreements with third parties and our ability to enter into additional license or technology agreements on reasonable terms;

•litigation or threats of litigation;

•the fluctuation of our quarterly and annual results of operations relative to our expectations and guidance;

•the way we recognize revenue, which has the effect of delaying changes in the subscriptions for our solutions from being reflected in our operating results;

•our limited operating history, our history of operating losses and our ability to use our net operating loss (“NOL”) carryforwards;

•our ability to raise sufficient capital and the resulting dilution and the terms of our Second Amended Credit Agreement (as defined below);

•our status as an emerging growth company;

•future sales of shares of our common stock, our lack of an intention to pay dividends and significant influence of our principal stockholders; and

•anti-takeover and exclusive forum provisions in our governing documents.

Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Overview

Alkami is a cloud-based digital banking solutions provider. We inspire and empower community, regional and super-regional financial institutions (“FIs”) to compete with large, technologically advanced and well-resourced banks in the United States. Our solution, the Alkami Digital Banking Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. We cultivate deep relationships with our clients through long-term, subscription-based contractual arrangements, aligning our growth with our clients’ success and generating an attractive unit economic model.

Alkami was founded to help level the playing field for FIs. Since then, our vision has been to create a platform that combines premium technology and fintech solutions in one integrated ecosystem, delivered as a software-as-a-service (“SaaS”) solution and providing our clients’ customers with a single point of access to all things digital. We have invested significant resources to build a technology stack that prioritized innovation velocity and speed-to-market given the importance of product depth and functionality in winning and retaining clients. In fiscal 2020, we acquired ACH Alert, LLC (“ACH Alert”) to pursue adjacent product opportunities, such as fraud prevention and to expand our addressable market. In addition, in September 2021, we acquired MK Decisioning Systems, LLC (“MK”), a technology platform for digital account opening, credit card and loan origination solutions. In April 2022, we acquired Segmint, Inc. (“Segmint”), a leading cloud-based financial data analytics and transaction data cleansing provider.

Our domain expertise in retail and business banking has enabled us to develop a suite of products tailored to address key challenges faced by FIs. Due to our architecture, adding products through our single code base is fast, simple and cost-effective. The key differentiators of the Alkami Digital Banking Platform include:

•User experience: Personalized and seamless digital experience across user interaction points, including desktop, mobile, chat and SMS, establishing durable connections between FIs and their customers.

•Integrations: Scalability and extensibility driven by more than 300 real-time integrations to back-office systems and third-party fintech solutions as of June 30, 2024, including core systems, payment cards, mortgages, bill pay, electronic documents, money movement, personal financial management and account opening.

•Deep data capabilities: Data synchronized and stored from back-office systems and third-party fintech solutions and synthesized into meaningful insights, targeted content, and other areas of monetization.

The Alkami Digital Banking Platform offers an end-to-end set of software products. Our typical relationship with an FI begins with a set of core functional components, which can extend over time to include a rounded suite of products across account opening, marketing, data insights, card experience, money movement, customer service, commercial banking, financial wellness, security and fraud protection and extensibility.

We primarily go to market through an internal sales force. Given the long-term nature of our Alkami Digital Banking Platform contracts, a typical sales cycle can range from approximately three to 12 months, with the subsequent implementation timeframe generally ranging from six to 12 months depending on the depth of integration.

We derive our Alkami Digital Banking Platform revenues almost entirely from multi-year contracts that are based on an average contract life of approximately 70 months as of June 30, 2024. We predominantly employ a per-registered-user pricing model, with incremental fees above certain contractual client minimum commitments for each licensed solution. In these cases, our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer penetration, incentivizing our clients to internally market and promote digital engagement.

To support our growth and capitalize on our market opportunity, we have increased our operating expenses across all aspects of our business. In research and development, we continue to focus on innovation and bringing novel capabilities to our platform, extending our product depth. Similarly, we continue to expand our sales and marketing organization focusing on new client wins, cross-selling opportunities and client renewals.

For the three months ended June 30, 2024 and 2023, our total revenues were $82.2 million and $65.8 million, respectively, representing a 24.9% increase period-over-period. For the six months ended June 30, 2024 and 2023, our total revenues were $158.3 million and $125.8 million, respectively, representing an increase of 25.9% period-over-period. SaaS subscription revenues, as further described below, represented 95.4% and 95.6% of total revenues for the three and six months ended June 30, 2024, respectively, and 93.0% and 94.4% of total revenues for the three and six months ended June 30, 2023, respectively. We incurred net losses of $12.3 million and $23.8 million for the three and six months ended June 30, 2024, respectively, and net losses of $17.8 million and $34.7 million for the three and six months ended June 30, 2023, respectively, largely on the basis of significant continued investment in sales, marketing, product development and post-sales client activities.

Factors Affecting our Operating Results

Growing our FI Client Base. A key part of our strategy is to grow our FI client base. As of June 30, 2024, we served 254 FIs through the Alkami Digital Banking Platform and over 700 clients when including unique clients only subscribing to one or a combination of ACH Alert, MK or Segmint products. Each of our digital banking client wins is a competitive takeaway, and as such, our historical ability to grow our client base has been a function of product depth, technological excellence and a sales and marketing function able to match our solutions with the strategic objectives of our clients. Our future success will significantly depend on our ability to continue to grow our FI client base through competitive wins.

Deepening Client Customer Penetration. We primarily generate revenues through a per-registered-user pricing model. Once we onboard a client, our ability to help drive incremental client customer digital adoption translates to additional revenues with very limited additional spend. Our FI clients are incentivized to market and encourage digital account sign-up based on identifiable improvement in customer engagement, as well as discounts received based on certain levels of customer penetration. We expect to continue to support digital adoption by client customers through continued investments in new products and platform enhancements. Our future success will depend on our ability to continue to deepen client customer penetration.

Expanding our Product Suite. Product depth is a key determinant in winning new clients. In a replacement market, we win based on our ability to bring a product suite to market that is superior to the incumbent, as well as to our broader competition. Of equal importance is the ability to cohesively deliver a deep product suite with as little friction as possible to the client customer. The depth of our product suite is a function of technology and platform partnerships. Our platform model with 300 integrations as of June 30, 2024 enables us to deliver thousands of configurations aligned with the digital platform strategies adopted by our clients. We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products to FI clients in a timely manner. Furthermore, expanding our product suite expands our Revenue per Registered User (“RPU”) potential. For additional information regarding RPU, see “Key Business Metrics.”

Client Renewals. Our model and the stability of our revenue base is, in part, driven by our ability to renew our clients. In addition to extending existing relationships, renewals provide an opportunity to grow minimum contract value, as over the course of a contract term our clients often grow, or their needs evolve. Client renewals are also an important lever in driving our long-term gross margin targets, as we generally achieve approximately 70% gross margin upon renewal. We had six and 12 client renewals for the three and six months ended June 30, 2024, respectively. We expect client renewals to continue to play a key role in our future success.

Continued Leadership in Innovation. Our ability to maintain a differentiated platform and offering is dependent upon our pace of innovation. Our single code base, built on a multi-tenant infrastructure and combined with continuous software delivery enables us to bring new, innovative products to market quickly and positions us with what we believe is market-leading breadth in terms of product offerings and feature sets. We remain committed to investing in our platform, notably through our research and development spend, which was 29.1% and 29.5% of our revenues for the three and six months ended June 30, 2024, respectively. Our future success will depend on our continued leadership in innovation.

Components of Results of Operations

Revenues

Our client relationships are predominantly based on multi-year contracts for the Alkami Digital Banking Platform that have had an average contract life of approximately 70 months as of June 30, 2024. We derive the majority of our revenues from SaaS subscription services charged for the use of our digital banking solution. Subscription services are recognized over time on a ratable basis over the client agreement term beginning on the date our solution is made available to our client. The promised consideration may include fixed or variable amounts. For our clients with enterprise license contracts, they are invoiced on an agreed upon monthly rate throughout the contract term, which may include fixed monthly or annual rate escalations. Fixed dollar or percentage escalations that are not based on registered users are considered part of the fixed transaction price and recognized on a straight-line basis over the SaaS subscription period evenly. The majority of our client contracts are based on registered users, which we invoice monthly a contractual minimum fee for each licensed solution. In addition, we invoice monthly an additional subscription fee for the number of registered users using each solution and the number of bill-pay and certain other transactions those registered users conduct through our digital banking platform in excess of their contractual client minimum commitments. Our pricing is tiered, with per-registered-user discounts applied as clients achieve higher levels of customer penetration, incentivizing our clients to internally market our products and promote digital engagement. Variable consideration earned for subscription fees in excess of contractual minimums is recognized as revenues in the month of actual usage. SaaS subscription services also include annual and monthly charges for maintenance and support services, which are recognized on a straight-line basis over the contract term.

We receive implementation and other upfront fees for the implementation, configuration and integration of our digital banking platform. We typically invoice these services as a fixed price per contract. These fees are not distinct from the underlying licensed SaaS subscription services. As a result, we recognize the resulting revenues on a straight-line basis over the client’s initial agreement term for our licensed SaaS solutions, commencing upon launch.

Occasionally, our clients request custom development and other professional services, which we provide. These are generally one-time requests and involve unique, non-standard features, functions or integrations that are intended to enhance or modify their licensed SaaS solutions. We recognize revenues at the point in time the services are transferred to the client.

The following table disaggregates our revenues for the three and six months ended June 30, 2024 and 2023 by major source:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
SaaS subscription services	$	78,371	$	61,169	$	151,383	$	118,688
Implementation services	2,110		3,214		3,958		4,884
Other services	1,679		1,380		2,946		2,187
Total revenues	$	82,160	$	65,763	$	158,287	$	125,759

See Note 4 of the Notes to the Unaudited Condensed Consolidated Financial Statements for additional detail.

Cost of Revenues and Gross Margin

Cost of revenues is comprised primarily of salaries and other personnel-related costs, including employee benefits, bonuses, stock-based compensation, travel and related costs for employees supporting our SaaS subscription, implementation and other services. This includes the costs of our implementation, client support and development personnel responsible for maintaining and releasing updates to our platform, as well as third-party cloud-based hosting services. Cost of revenues also includes the direct costs of bill-pay services and other third-party intellectual property included in our solutions, the amortization of acquired technology and depreciation.

We capitalize certain personnel costs directly related to the implementation of our solutions to the extent those costs are recoverable from future revenues. We amortize the costs for an implementation once revenue recognition commences. The amortization period is typically five to seven years, which represents the expected period of client benefit. Other costs not directly recoverable from future revenues are expensed in the period incurred.

We intend to continue to increase our investments in our implementation, client support teams and technology infrastructure to serve our clients and support our growth. We expect cost of revenues to continue to grow in absolute dollars as we grow our business, but to vary as a percentage of revenues from period to period as a function of the utilization of implementation and support personnel and the extent to which we recognize fees from bill-pay services and other third-party functionality integrated into our solutions. Our gross margin for the three and six months ended June 30, 2024 was 59.4% and 58.6%, respectively, and 53.9% and 53.8% for the three and six months ended June 30, 2023, respectively.

The major components of cost of revenues represented the following percentages of revenues for the three months ended June 30, 2024: third-party hosting services (5.9%), the direct costs of bill-pay and other third-party intellectual property included in our solutions (17.5%), our implementation and client support teams (9.7%), our development team responsible for maintaining and releasing updates to our platform (3.6%), amortization (2.2%), and stock-based compensation (1.6%). The major components of cost of revenues represented the following percentages of revenues for the three months ended June 30, 2023: third-party hosting services (7.8%), the direct costs of bill-pay and other third-party intellectual property included in our solutions (17.3%), our implementation and client support teams (13.0%), our development team responsible for maintaining and releasing updates to our platform (3.1%), amortization (2.5%), stock-based compensation (2.3%), and depreciation (0.1%).

The major components of cost of revenues represented the following percentages of revenues for the six months ended June 30, 2024: third-party hosting services (6.2%), the direct costs of bill-pay and other third-party intellectual property included in our solutions (18.0%), our implementation and client support teams (9.6%), our development team responsible for maintaining and releasing updates to our platform (3.8%), amortization (2.2%), and stock-based compensation (1.6%). The major components of cost of revenues represented the following percentages of revenues for the six months ended June 30, 2023: third-party hosting services (7.7%), the direct costs of bill-pay and other third-party intellectual property included in our solutions (17.4%), our implementation and client support teams (13.2%), our development team responsible for maintaining and releasing updates to our platform (3.1%), amortization (2.6%), stock-based compensation (2.1%), and depreciation (0.1%).

Operating Expenses

Research and Development. Research and development costs consist primarily of personnel-related costs for our engineering, information technology and product employees, including salaries, bonuses, other incentive-related compensation, employee benefits and stock-based compensation. In addition, we also include third-party contractor expenses, software development and testing tools, allocated corporate expenses and other expenses related to developing new solutions and upgrading and enhancing existing solutions. We expect research and development costs to increase as we expand our platform with new features and functionality, as well as enhance the existing Alkami Digital Banking Platform.

Sales and Marketing. Sales and marketing expenses consist primarily of personnel-related costs of our sales, marketing and our client success employees, including salaries, bonuses, commissions, other incentive-related compensation, employee benefits and stock-based compensation. Sales and marketing expenses also include travel and related costs, outside consulting fees and marketing programs, including lead generation, costs of our annual client conference, advertising, trade shows and other event expenses. We expect sales and marketing expenses will continue to increase as we expand our direct sales teams to pursue our market opportunity.

General and Administrative. General and administrative expenses consist primarily of personnel-related costs for our executive, finance, legal, human resources, information technology, security and compliance and other administrative employees, including salaries, bonuses, commissions, other incentive-related compensation, employee benefits and stock-based compensation. General and administrative expenses also include accounting, auditing and legal professional services fees, travel and other unallocated corporate-related expenses, such as the cost of our facilities, employee relations, corporate telecommunication and software. We expect that general and administrative expenses will continue to increase as we scale our business and as we incur costs associated with being a publicly traded company, including legal, audit, business insurance and consulting fees.

Acquisition-Related Expenses. Acquisition-related expenses are primarily related to legal, consulting and professional fees.

Amortization of Acquired Intangibles. Amortization of acquired intangibles represents the amortization of intangible assets recorded in connection with our business acquisitions, which are amortized on a straight-line basis over the estimated useful lives of the related assets.

Non-operating Income (Expense)

Non-operating income (expense) consists primarily of interest income from our cash balances, interest expense from borrowings under our revolving line of credit, amortization of deferred debt costs, unrealized gains or losses on marketable securities, realized gains on sales of marketable securities, and changes in fair value of warrants and tranche rights.

Provision for Income Taxes

Our effective tax rate differs from the statutory tax rate primarily due to the impact of the valuation allowance against our deferred tax assets and state tax expense. As a result of our valuation allowance, provision for income taxes consists primarily of state income taxes and deferred taxes related to the tax amortization of acquired goodwill.

Results of Operations

The results of operations presented below should be reviewed in conjunction with the condensed consolidated financial statements and notes included elsewhere in this filing. The following table presents our selected condensed consolidated statements of operations data for the three and six months ended June 30, 2024 and 2023.


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Revenues	$	82,160	$	65,763	$	158,287	$	125,759
Cost of revenues (1) (2)	33,389		30,289		65,484		58,147
Gross profit	48,771		35,474		92,803		67,612
Operating expenses (2):
Research and development	23,909		20,866		46,729		41,415
Sales and marketing	16,964		13,883		30,807		24,761
General and administrative	20,612		18,207		39,927		35,318
Acquisition-related expenses	135		34		195		220
Amortization of acquired intangibles	358		357		717		717
Total operating expenses	61,978		53,347		118,375		102,431
Loss from operations	(13,207)		(17,873)		(25,572)		(34,819)
Non-operating income (expense):
Interest income	1,261		2,016		2,343		3,742
Interest expense	(74)		(1,826)		(147)		(3,583)
(Loss) gain on financial instruments	(112)		10		—		220
Loss before income taxes	(12,132)		(17,673)		(23,376)		(34,440)
Provision for income taxes	185		88		374		284
Net loss	$	(12,317)	$	(17,761)	$	(23,750)	$	(34,724)

(1) Includes amortization of acquired technology of $1.4 million for both the three months ended June 30, 2024 and 2023, and $2.7 million for both the six months ended June 30, 2024 and 2023.

(2) Includes stock-based compensation expenses as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenues	$	1,347	$	1,487	$	2,525	$	2,633
Research and development	4,256		3,963		8,254		7,738
Sales and marketing	2,291		1,813		4,322		3,403
General and administrative	7,119		5,489		13,464		10,222
Total stock-based compensation expenses	$	15,013	$	12,752	$	28,565	$	23,996

The following table presents our reconciliation of GAAP net loss to adjusted EBITDA for the periods indicated.


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Net loss	$	(12,317)	$	(17,761)	$	(23,750)	$	(34,724)
Provision for income taxes	185		88		374		284
Loss (gain) on financial instruments	112		(10)		—		(220)
Interest income, net	(1,187)		(190)		(2,196)		(159)
Depreciation and amortization	2,613		2,560		5,175		5,146
Stock-based compensation expense	15,013		12,752		28,565		23,996
Acquisition-related expenses	135		34		195		220
Adjusted EBITDA (1)	$	4,554	$	(2,527)	$	8,363	$	(5,457)

(1) Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. For additional information regarding adjusted EBITDA, see “Key Business Metrics.”

Key Business Metrics

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure and should not be considered an alternative to GAAP net loss as a measure of operating performance or as a measure of liquidity. We define adjusted EBITDA as net loss before provision for income taxes; (loss) gain on financial instruments; interest income, net; depreciation and amortization; stock-based compensation expense; and acquisition-related expenses. We believe adjusted EBITDA provides investors and other users of our financial information consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Adjusted EBITDA was $4.6 million and $8.4 million for the three and six months ended June 30, 2024, respectively, and $(2.5) million and $(5.5) million for the three and six months ended June 30, 2023, respectively.

Annual Recurring Revenue (ARR). We calculate ARR by aggregating annualized recurring revenue related to SaaS subscription services recognized in the last month of the reporting period, as well as the next 12 months of expected implementation services revenues in the last month of the reporting period. We believe ARR provides important information about our future revenue potential, our ability to acquire new clients, and our ability to maintain and expand our relationship with existing clients. ARR was $321.3 million as of June 30, 2024 and $256.8 million as of June 30, 2023, an increase of $64.5 million, or 25.1%.

Registered Users. We define a registered user as an individual or business related to an account holder of an FI client on our digital banking platform who has registered to use one or more of our solutions and has current access to use those solutions as of the last day of the reporting period presented. We price our digital banking platform based on the number of registered users, so as the number of registered users of our digital banking platform increases, our ARR grows. We believe growth in the number of registered users provides important information about our ability to expand market adoption of our digital banking platform and its associated software products, and therefore to grow revenues over time. We had 18.6 million registered users as of June 30, 2024 and 15.8 million as of June 30, 2023, an increase of 2.7 million, or 17.3%.

Revenue per Registered User (RPU). We calculate RPU by dividing ARR as of the last day of the reporting period by the number of registered users as of the last day of the reporting period. We believe RPU provides important information about our ability to grow the number of software products adopted by new clients over time, as well as our ability to expand the number of software products that our existing clients add to their contracts with us over time. RPU was $17.29 as of June 30, 2024 and $16.20 as of June 30, 2023, an increase of $1.09, or 6.7%.

Comparison of Three and Six Months ended June 30, 2024 and 2023

Revenues


	Three months ended June 30,				Change				Six months ended June 30,				Change
(in thousands)	2024		2023		$		%		2024		2023		$		%
Revenues	$	82,160	$	65,763	$	16,397	24.9	%	$	158,287	$	125,759	$	32,528	25.9	%

	June 30,
	2024		2023
Annual Recurring Revenue (ARR)	$	321,284	$	256,811	$	64,473	25.1	%
Registered Users	18,584		15,849		2,735		17.3	%
Revenue per Registered User (RPU)	$	17.29	$	16.20	$	1.09	6.7	%

Revenues increased $16.4 million, or 24.9%, and $32.5 million, or 25.9%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023.

The increase of $16.4 million in revenues for the three months ended June 30, 2024 was primarily due to registered user growth from new and existing clients, and RPU growth.

The increase of $32.5 million for the six months ended June 30, 2024 was primarily due to registered user growth of 2.7 million when compared to June 30, 2023, comprised of 1.4 million in registered user growth from existing clients and 1.3 million in registered users from new clients implemented through our digital banking platform (contractual minimums). In addition, increased revenues were due to RPU growth of 6.7% when compared to June 30, 2023. RPU growth was primarily driven by cross-sell activity to existing clients and higher average RPU of new clients implemented on our digital banking platform compared to aggregate RPU. The average RPU of users from new clients implemented on our digital platform in the last 12 months of $20.41 as of June 30, 2024, is 18.0% higher than the aggregate RPU as of June 30, 2024.

Cost of Revenues and Gross Margin


	Three months ended June 30,						Change					Six months ended June 30,						Change
(in thousands)	2024			2023			$			%		2024			2023			$			%
Cost of revenues	$	33,389		$	30,289		$	3,100		10.2	%	$	65,484		$	58,147		$	7,337		12.6	%
Percentage of revenues	40.6		%	46.1		%	(5.5)		%	(11.9)	%	41.4		%	46.2		%	(4.8)		%	(10.4)	%

Cost of Revenues

Cost of revenues increased $3.1 million, or 10.2%, and $7.3 million, or 12.6%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. Our revenue growth outpaced our cost of revenues growth, leading to an improved gross margin of 59.4% and 58.6% for the three and six months ended June 30, 2024, respectively, compared to a gross margin of 53.9% and 53.8% for the same periods in 2023, respectively.

The increase in cost of revenues for the three months ended June 30, 2024 was primarily driven by $3.0 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform and $0.5 million in higher various other costs. These expenses were partially offset by lower personnel-related costs of $0.2 million and lower hosting costs of $0.2 million.

The increase in cost of revenues for the six months ended June 30, 2024 was primarily driven by $6.5 million in higher costs of our third-party partners where we resell their solutions as part of the digital platform, a $0.1 million increase in hosting costs, and $0.7 million in higher various other costs.

Operating Expenses


	Three months ended June 30,						Change				Six months ended June 30,						Change
	2024			2023			$		%		2024			2023			$		%
($ in thousands)
Research and development	$	23,909		$	20,866		$	3,043	14.6	%	$	46,729		$	41,415		$	5,314	12.8	%
Sales and marketing	16,964			13,883			3,081		22.2	%	30,807			24,761			6,046		24.4	%
General and administrative	20,612			18,207			2,405		13.2	%	39,927			35,318			4,609		13.1	%
Acquisition-related expenses	135			34			101		297.1	%	195			220			(25)		(11.4)	%
Amortization of acquired intangibles	358			357			1		0.3	%	717			717			—		—	%
Total operating expenses	$	61,978		$	53,347		$	8,631	16.2	%	$	118,375		$	102,431		$	15,944	15.6	%
Percentage of revenues	75.4		%	81.1		%					74.8		%	81.5		%

Research and Development

Research and development expenses increased $3.0 million, or 14.6%, and $5.3 million, or 12.8%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. For the three months ended June 30, 2024, the increase was primarily due to $1.3 million in higher costs for consulting and a $1.3 million increase in personnel-related costs (which includes stock-based compensation of $0.3 million), resulting from headcount growth in our engineering, information technology and product teams dedicated to platform enhancements and innovation. In addition, we incurred $0.3 million in higher costs for hosting and $0.1 million in higher various other net costs.

For the six months ended June 30, 2024, the increase was primarily due to $2.5 million in higher costs for consulting, a $2.3 million increase in personnel-related costs (which includes stock-based compensation of $0.5 million), resulting from headcount growth in our engineering, information technology and product teams dedicated to platform enhancements and innovation, $0.4 million in higher hosting costs, and $0.1 million in higher various other net costs.

Sales and Marketing

Sales and marketing expenses increased $3.1 million, or 22.2%, and $6.0 million, or 24.4%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. For the three months ended June 30, 2024, the increase was primarily due to a $2.2 million increase in personnel-related costs (which includes stock-based compensation of $0.5 million), resulting from headcount growth in our sales and marketing teams. In addition, we incurred $0.5 million in higher costs related to industry conferences and trade shows, including enhanced client experiences at our in-person client conference, Co:lab, $0.3 million in higher travel costs for the sales team, and $0.1 million in higher various other net costs.

For the six months ended June 30, 2024, the increase was primarily due to a $4.0 million increase in personnel-related costs (which includes stock-based compensation of $0.9 million), resulting from headcount growth in our sales and marketing teams. In addition, we incurred $0.8 million in higher consulting costs, $0.7 million in higher travel costs for the sales team, and $0.5 million in higher costs related to industry conferences and trade shows, including enhanced client experiences at our in-person client conference, Co:lab.

General and Administrative

General and administrative expenses increased by $2.4 million, or 13.2%, and $4.6 million, or 13.1%, for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. For the three months ended June 30, 2024, the increase was primarily due to a $2.2 million increase in personnel-related costs (which includes stock-based compensation of $1.6 million), $0.3 million of higher software costs, $0.2 million in higher audit and consulting costs, and $0.2 million in higher various other costs. These expenses were partially offset by a decrease of $0.3 million in facilities costs and a decrease of $0.2 million in insurance costs.

For the six months ended June 30, 2024, the increase was primarily due to a $3.7 million increase in personnel-related costs (which includes stock-based compensation of $3.2 million), $0.9 million in higher audit and consulting costs, $0.6 million in higher software costs, and $0.2 million in higher various other costs. These expenses were partially offset by a decrease of $0.4 million in facilities costs and a decrease of $0.4 million in insurance costs.

Acquisition-Related Expenses

Acquisition-related expenses increased $0.1 million for the three months ended June 30, 2024 and decreased by less than $0.1 million for the six months ended June 30, 2024, compared to the same periods in 2023.

For the three months ended June 30, 2024, we incurred $0.1 million of acquisition-related expenses. We incurred less than $0.1 million of acquisition-related expenses for the three months ended June 30, 2023.

For the six months ended June 30, 2024, we incurred $0.2 million of acquisition-related expenses. For the six months ended June 30, 2023, we incurred $0.2 million of acquisition-related expenses related to legal, consulting, and professional fees for the acquisition of Segmint.

Amortization of Acquired Intangibles

Amortization of acquired intangibles was $0.4 million and $0.7 million for the three and six months ended June 30, 2024 and 2023, respectively.

Non-Operating Income (Expense), Net

Non-operating income increased $0.9 million and $1.8 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023. For the three months ended June 30, 2024, the increase was primarily due to a $1.0 million increase in net interest income, partially offset by a $0.1 million increase in loss on financial instruments related to marketable securities.

For the six months ended June 30, 2024, the increase was primarily due to a $2.0 million increase in net interest income, partially offset by a $0.2 million increase in loss on financial instruments related to marketable securities.

Provision for Income Taxes

Our effective tax rate for the three and six months ended June 30, 2024 and June 30, 2023 differs from the statutory tax rate primarily due to the impact of the valuation allowance against its deferred tax assets and state tax expense.

Liquidity and Capital Resources

As of June 30, 2024, we had $87.4 million in cash and cash equivalents and marketable securities, and an accumulated deficit of $459.1 million. Our net losses have been driven by our investments in developing our digital banking platform, expanding our sales, marketing and implementation organizations and scaling our administrative functions to support our rapid growth.

We have financed our operations primarily through cash generated from the sale of SaaS subscription services. Our future capital requirements will depend on many factors, including revenue growth and costs incurred to support client usage and growth in our client base, increased research and development expenses to support the growth of our business and related infrastructure, increased general and administrative expenses associated with being a publicly traded company, investments in office facilities and other capital expenditure requirements and any potential future acquisitions or other strategic transactions.

We believe that our existing cash resources, including our Second Amended Credit Agreement, will be sufficient to finance our continued operations, growth strategy, planned capital expenditures and the additional expenses we expect to incur as a public company for the short term (at least the next 12 months) and longer term (beyond the next 12 months). We may, from time to time, seek to raise additional capital to support our growth. Any equity financing we may undertake could be dilutive to our existing stockholders, and any additional debt financing we may undertake could require debt service and financial and operational requirements that could adversely affect our business.

Cash Flows

The following table summarizes our cash flows for the periods indicated:


	Six months ended June 30,
(in thousands)	2024		2023
Net cash provided by (used in) operating activities	$	1,499	$	(15,325)
Net cash provided by (used in) investing activities	$	22,275	$	(96)
Net cash used in financing activities	$	(3,269)	$	(4,020)

Net Cash Provided by (Used in) Operating Activities

During the six months ended June 30, 2024, net cash provided by operating activities was $1.5 million, which consisted of a net loss of $23.8 million, adjusted by non-cash charges of $33.1 million and net cash outflows from the change in net operating assets and liabilities of $7.8 million. The non-cash charges were primarily comprised of depreciation and amortization expense of $5.2 million, stock-based compensation expense of $28.6 million, and net other non-cash charges of $0.1 million, partially offset by accrued interest on marketable securities, net of $0.8 million. The net cash outflows from the change in our net operating assets and liabilities were primarily due to a $3.5 million increase in accounts receivable, a $3.8 million increase in prepaid expenses and other current assets, a $0.7 million decrease in accounts payable and accrued liabilities and a $2.6 million increase in deferred costs, partially offset by a $2.6 million increase in deferred revenues.

During the six months ended June 30, 2023, net cash used in operating activities was $15.3 million, which consisted of a net loss of $34.7 million, adjusted by non-cash charges of $28.4 million and net cash outflows from the change in net operating assets and liabilities of $9.0 million. The non-cash charges were primarily comprised of depreciation and amortization expense of $5.1 million and stock-based compensation expense of $24.4 million, partially offset by net other changes in non-cash charges of $1.1 million. The net cash outflows from the change in our net operating assets and liabilities were primarily due to a $1.9 million increase in accounts receivable, a $1.9 million increase in prepaid expenses and other current assets, a $2.1 million decrease in accounts payable and accrued liabilities, driven by the reduction of accounts payable in the current period, a $2.9 million increase in deferred implementation costs, and a $0.2 million decrease in deferred revenues.

Net Cash Provided by (Used in) Investing Activities

During the six months ended June 30, 2024, net cash provided by investing activities was $22.3 million, primarily consisting of $41.6 million in proceeds from maturities and redemptions of marketable securities, partially offset by $15.6 million in purchases of marketable securities, $3.0 million related to capitalized software development costs and $0.7 million related to capital expenditures related to updates for computer and other equipment.

During the six months ended June 30, 2023, net cash used in investing activities was $0.1 million, primarily consisting of $62.6 million for the purchase of marketable securities, $2.7 million related to capitalized software development costs, and capital expenditures related to updates for computer and other equipment of $0.4 million, partially offset by $65.6 million in proceeds from maturities and redemptions of marketable securities.

Net Cash Used in Financing Activities

For the six months ended June 30, 2024, net cash used in financing activities was $3.3 million, which was primarily due to $12.8 million in payments for taxes related to net settlement of equity awards, partially offset by $6.9 million in proceeds from the exercise of stock options to purchase 1.0 million shares of our common stock and proceeds from issuances under the Employee Stock Purchase Plan (“ESPP”) of $2.6 million.

For the six months ended June 30, 2023, net cash used in financing activities was $4.0 million, which was primarily due to payments for taxes related to net settlement of equity awards of $6.8 million, principal payments on debt of $1.1 million, debt issuance costs paid of $0.4 million and payments of holdback funds for acquisitions of $1.0 million, partially offset by proceeds of $2.8 million from the exercise of stock options to purchase 0.8 million shares of our common stock and proceeds from issuances under the ESPP of $2.4 million.

Amended Credit Agreement

On July 1, 2024, the Company entered into a Second Amendment (the “Second Amendment”) to the Amended Credit Agreement (as amended by the Amendment, the “Second Amended Credit Agreement”). Among other changes, the Second Amendment (i) extends the maturity date of the revolving commitment from April 29, 2026 to April 29, 2027, (ii) increases the amount of the revolving loan commitment by $65.0 million, for a total commitment of $125.0 million, (iii) increases the accordion feature from $50.0 million to $100.0 million of funds available to request, (iv) modifies certain existing covenants, including increasing the minimum trailing four quarters free cash flow requirement to $(25.0) million, and (v) for any fiscal quarter ending after the Financial Covenant Trigger Date (which has been extended to April 28, 2026 or such earlier date as designated by the Company), replaces compliance with a fixed charge coverage ratio with compliance of a minimum interest coverage ratio of 3.0x.

Total interest expense, including commitment fees and unused line fees, for the three and six months ended June 30, 2024 was $0.1 million and $0.1 million, respectively, and $1.8 million and $3.6 million for the three and six months ended June 30, 2023, respectively. In conjunction with closing the Amended Credit Agreement in 2022 and the First Amendment in 2023, we incurred issuance costs of $0.8 million and $0.3 million, respectively, which were deferred and were scheduled to be amortized over the remaining term of the agreement. Unamortized debt issuance costs totaled $0.2 million and $0.3 million as of June 30, 2024 and December 31, 2023, respectively. Amortization expense was $0.1 million and $0.1 million for the three and six months ended June 30, 2024, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2023, respectively.

Contractual Obligations and Commitments

There were no material changes to our contractual obligations and commitments as of June 30, 2024, compared to those discussed as of December 31, 2023 in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.

Off-Balance Sheet Arrangements

During the period presented, we did not have, and we do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities that were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Policies and Significant Judgments and Estimates

In preparing our unaudited condensed consolidated financial statements in conformity with GAAP, we must make decisions that impact the reported amounts of assets, liabilities, revenues and expenses, and the related disclosures. Such decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. In reaching such decisions, we apply judgments based on our understanding and analysis of relevant circumstances, historical experience, and actuarial valuations. Actual amounts could differ from those estimated at the time the condensed consolidated financial statements are prepared.

There have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates described in “Management's Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.

Recently Issued Accounting Pronouncements

See Note 2 of the Notes to the Unaudited Condensed Consolidated Financial Statements included elsewhere in this report for a discussion of recent accounting pronouncements and future application of accounting standards.

Emerging Growth Company Status

We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have elected to use this extended transition period to enable us to comply with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date when we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Based on the market value of our common stock held by non-affiliates as of June 30, 2024, we will cease to qualify as an emerging growth company as of December 31, 2024.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily the result of fluctuations in interest rates.

Interest Rate Risk

We are subject to interest rate risk in connection with our Second Amended Credit Agreement. Interest rate changes generally impact the amount of our interest payments and, therefore, our future net income and cash flows, assuming other factors held constant. Assuming the amounts

outstanding under our Second Amended Credit Agreement are fully drawn, a hypothetical 10% change in interest rates would not have a material impact on our consolidated financial statements. Our cash, cash equivalents and restricted cash consist primarily of interest-bearing accounts. Such interest-earning instruments carry a degree of interest rate risk. To minimize interest rate risk in the future, we intend to maintain our portfolio of cash equivalents in a variety of investment-grade securities, which may include commercial paper, money market funds and government and non-government debt securities. Because of the short-term maturities of our cash, cash equivalents, restricted cash and marketable securities, we do not believe that an increase in market rates would have any significant negative impact on the realized value of our investments.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), means controls and other procedures of a company that are designed to provide reasonable assurance that information required to be disclosed by a company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the company’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures at June 30, 2024, the last day of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer have concluded that, at June 30, 2024, our disclosure controls and procedures were effective at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting, identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) under the Exchange Act, that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be involved in various legal proceedings arising from the normal course of business activities. We are currently not a party to any litigation the outcome of which we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, operating results, cash flows or financial condition.

Item 1A. Risk Factors

There are no material changes to the risk factors previously disclosed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

During the three months ended June 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

Item 6. Exhibits

EXHIBIT INDEX

Incorporated by Reference

Exhibit

Description

Form

File No.

Exhibit

Filing Date

10.1*

Second Amendment to Amended and Restated Credit Agreement, among Alkami Technology, Inc., as the Borrower, the several Lenders from time to time party thereto and Silicon Valley Bank, a division of First-Citizens Bank & Trust Company, as Administrative Agent, Issuing Lender and Swingline Lender, dated as of July 1, 2024.

8-K/A

001-40321

10.1

7/3/2024

31.1

Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

31.2

Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934

32.1**

Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350

32.2**

Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH

Inline XBRL Taxonomy Extension Schema Document

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document

104

Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company will furnish supplementally copies of omitted schedules and exhibits to the Securities and Exchange Commission or its staff upon its request.

** The certifications attached as Exhibit 32.1 and Exhibit 32.2 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			Alkami Technology, Inc.

Date:	August 1, 2024	By:	/s/ Alex Shootman
			Alex Shootman
			Chief Executive Officer
			(Principal Executive Officer)

Date:	August 1, 2024	By:	/s/ W. Bryan Hill
			W. Bryan Hill
			Chief Financial Officer
			(Principal Financial Officer)

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, Alex Shootman, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Alkami Technology, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: August 1, 2024			/s/ Alex Shootman
			Alex Shootman
			Chief Executive Officer and Director
			(Principal Executive Officer)

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934

I, W. Bryan Hill, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Alkami Technology, Inc.;

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: August 1, 2024			/s/ W. Bryan Hill
			W. Bryan Hill
			Chief Financial Officer
			(Principal Financial Officer)

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report on Form 10-Q of Alkami Technology, Inc. (the “Company”) for the quarterly period ended June 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: August 1, 2024			/s/ Alex Shootman
			Alex Shootman
			Chief Executive Officer and Director
			(Principal Executive Officer)

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

1.The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date: August 1, 2024			/s/ W. Bryan Hill
			W. Bryan Hill
			Chief Financial Officer
			(Principal Financial Officer)

Cover	6 Months Ended
Cover	Jun. 30, 2024 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-40321
Entity Registrant Name	ALKAMI TECHNOLOGY, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-3060776
Entity Address, Address Line One	5601 Granite Parkway,
Entity Address, Address Line Two	Suite 120
Entity Address, City or Town	Plano,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75204
City Area Code	877
Local Phone Number	725-5264
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	ALKT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	98,985,370
Fiscal Year End	--12-31
Fiscal Year Focus	2024
Fiscal Period Focus	Q2
CIK	0001529274
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 61,432	$ 40,927
Marketable securities	25,962	51,196
Accounts receivable, net	38,952	35,499
Deferred costs, current	11,478	10,329
Prepaid expenses and other current assets	14,132	10,634
Total current assets	151,956	148,585
Property and equipment, net	19,539	16,946
Right-of-use assets	15,180	15,754
Deferred costs, net of current portion	32,542	30,734
Intangibles, net	32,414	35,807
Goodwill	148,050	148,050
Other assets	4,176	3,949
Total assets	403,857	399,825
Current liabilities
Accounts payable	5,794	7,478
Accrued liabilities	20,879	19,763
Deferred revenues, current portion	12,572	10,984
Lease liabilities, current portion	1,275	1,205
Total current liabilities	40,520	39,430
Deferred revenues, net of current portion	16,445	15,384
Deferred income taxes	1,760	1,713
Lease liabilities, net of current portion	17,736	18,052
Other non-current liabilities	212	305
Total liabilities	76,673	74,884
Stockholders’ Equity
Preferred stock, $0.000 par value, 10,000 shares authorized and 0 shares issued and outstanding as of June 30, 2024 and December 31, 2.023	0	0
Common stock, $0.001 par value, 500,000,000 shares authorized; and 98,985,370 and 96,722,098 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	99	97
Additional paid-in capital	786,201	760,210
Accumulated deficit	(459,116)	(435,366)
Total stockholders’ equity	327,184	324,941
Total liabilities and stockholders' equity	$ 403,857	$ 399,825

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	98,985,370	96,722,098
Common stock, outstanding (in shares)	98,985,370	96,722,098

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Jun. 30, 2024

Jun. 30, 2023

Income Statement [Abstract]

Revenues

$ 82,160

$ 65,763

$ 158,287

$ 125,759

Cost of revenues

^[1]

33,389

30,289

65,484

58,147

Gross profit

48,771

35,474

92,803

67,612

Operating expenses:

Research and development

23,909

20,866

46,729

41,415

Sales and marketing

16,964

13,883

30,807

24,761

General and administrative

20,612

18,207

39,927

35,318

Acquisition-related expenses

135

195

220

Amortization of acquired intangibles

358

357

717

Total operating expenses

61,978

53,347

118,375

102,431

Loss from operations

(13,207)

(17,873)

(25,572)

(34,819)

Non-operating income (expense):

Interest income

1,261

2,016

2,343

3,742

Interest expense

(74)

(1,826)

(147)

(3,583)

(Loss) gain on financial instruments

(112)

220

Loss before income taxes

(12,132)

(17,673)

(23,376)

(34,440)

Provision for income taxes

185

374

284

Net loss

$ (12,317)

$ (17,761)

$ (23,750)

$ (34,724)

Net loss per share attributable to common stockholders:

Basic (in dollars per share)

$ (0.13)

$ (0.19)

$ (0.24)

$ (0.37)

Diluted (in dollars per share)

$ (0.13)

$ (0.19)

$ (0.24)

$ (0.37)

Weighted-average number of shares of common stock outstanding:

Basic (in shares)

98,103,527

93,334,725

97,524,379

92,868,623

Diluted (in shares)

98,103,527

93,334,725

97,524,379

92,868,623

[1]	Includes amortization of acquired technology of $1.4 million for both the three months ended June 30, 2024 and 2023, and $2.7 million for both the six months ended June 30, 2024 and 2023.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Cost of revenues	$ 1.7	$ 1.7	$ 3.4	$ 3.4
Technology
Cost of revenues	$ 1.4	$ 1.4	$ 2.7	$ 2.7

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		92,112,749
Beginning balance at Dec. 31, 2022	$ 334,046	$ 92	$ 706,407	$ (372,453)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	24,817		24,817
Issuance of common stock upon restricted stock unit vesting (in shares)		1,003,428
Issuance of common stock upon restricted stock unit vesting	1	$ 1
Common stock issued under Employee Stock Purchase Plan (ESPP) (in shares)		271,880
Common stock issued under ESPP	2,407		2,407
Exercised stock options (in shares)		840,819
Exercised stock options	2,802	$ 1	2,801
Payments for taxes related to net settlement of equity awards	(6,825)		(6,825)
Net loss	(34,724)			(34,724)
Ending balance (in shares) at Jun. 30, 2023		94,228,876
Ending balance at Jun. 30, 2023	322,524	$ 94	729,607	(407,177)
Beginning balance (in shares) at Mar. 31, 2023		92,864,741
Beginning balance at Mar. 31, 2023	328,127	$ 93	717,450	(389,416)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	13,205		13,205
Issuance of common stock upon restricted stock unit vesting (in shares)		710,837
Issuance of common stock upon restricted stock unit vesting	1	$ 1
Common stock issued under Employee Stock Purchase Plan (ESPP) (in shares)		271,880
Common stock issued under ESPP	2,407		2,407
Exercised stock options (in shares)		381,418
Exercised stock options	1,386		1,386
Payments for taxes related to net settlement of equity awards	(4,841)		(4,841)
Net loss	(17,761)			(17,761)
Ending balance (in shares) at Jun. 30, 2023		94,228,876
Ending balance at Jun. 30, 2023	322,524	$ 94	729,607	(407,177)
Beginning balance (in shares) at Dec. 31, 2023		96,722,098
Beginning balance at Dec. 31, 2023	324,941	$ 97	760,210	(435,366)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	29,262		29,262
Issuance of common stock upon restricted stock unit vesting (in shares)		1,021,491
Issuance of common stock upon restricted stock unit vesting	0	$ 1	(1)
Common stock issued under Employee Stock Purchase Plan (ESPP) (in shares)		216,174
Common stock issued under ESPP	2,598		2,598
Exercised stock options (in shares)		1,025,607
Exercised stock options	6,928	$ 1	6,927
Payments for taxes related to net settlement of equity awards	(12,795)		(12,795)
Net loss	(23,750)			(23,750)
Ending balance (in shares) at Jun. 30, 2024		98,985,370
Ending balance at Jun. 30, 2024	327,184	$ 99	786,201	(459,116)
Beginning balance (in shares) at Mar. 31, 2024		97,515,483
Beginning balance at Mar. 31, 2024	322,907	$ 98	769,608	(446,799)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	15,356		15,356
Issuance of common stock upon restricted stock unit vesting (in shares)		537,974
Common stock issued under Employee Stock Purchase Plan (ESPP) (in shares)		216,174
Common stock issued under ESPP	2,598		2,598
Exercised stock options (in shares)		715,739
Exercised stock options	5,757	$ 1	5,756
Payments for taxes related to net settlement of equity awards	(7,117)		(7,117)
Net loss	(12,317)			(12,317)
Ending balance (in shares) at Jun. 30, 2024		98,985,370
Ending balance at Jun. 30, 2024	$ 327,184	$ 99	$ 786,201	$ (459,116)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Thousands

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Cash flows from operating activities:

Net loss

$ (23,750)

$ (34,724)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization expense

5,175

5,146

Accrued interest on marketable securities, net

(787)

(1,179)

Stock-based compensation expense

28,565

24,399

Amortization of debt issuance costs

Gain on financial instruments

(177)

Deferred taxes

Changes in operating assets and liabilities:

Accounts receivable

(3,453)

(1,906)

Prepaid expenses and other current assets

(3,790)

(1,882)

Accounts payable and accrued liabilities

(653)

(2,126)

Deferred costs

(2,569)

(2,856)

Deferred revenues

2,649

(185)

Net cash provided by (used in) operating activities

1,499

(15,325)

Cash flows from investing activities:

Purchase of marketable securities

(15,588)

(62,640)

Proceeds from sales, maturities and redemptions of marketable securities

41,609

65,622

Purchases of property and equipment

(731)

(417)

Capitalized software development costs

^[1]

(3,015)

(2,661)

Net cash provided by (used in) investing activities

22,275

(96)

Cash flows from financing activities:

Principal payments on debt

(1,063)

Debt issuance costs paid

(341)

Proceeds from ESPP issuances

2,598

2,407

Payment of holdback funds from acquisition

(1,000)

Payments for taxes related to net settlement of equity awards

(12,795)

(6,825)

Proceeds from stock option exercises

6,928

2,802

Net cash used in financing activities

(3,269)

(4,020)

Net increase (decrease) in cash and cash equivalents and restricted cash

20,505

(19,441)

Cash and cash equivalents and restricted cash, beginning of period

40,927

112,337

Cash and cash equivalents and restricted cash, end of period

$ 61,432

$ 92,896

[1]	See Note 3 for additional information regarding non-cash investing activities for the six months ended June 30, 2024 and 2023 related to capitalized software development costs.

Organization	6 Months Ended
Organization	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Description of Business Alkami Technology, Inc. (the “Company”) is a cloud-based digital banking solutions provider. The Company inspires and empowers community, regional and super-regional financial institutions (“FIs”) to compete with large, technologically advanced and well-resourced banks in the United States. The Company’s solution, the Alkami Digital Banking Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency, all with the support of a proprietary, true cloud-based, multi-tenant architecture. The Company cultivates deep relationships with its clients through long-term, subscription-based contractual arrangements, aligning its growth with its clients’ success and generating an attractive unit economic model. The Company was incorporated in Delaware in August 2011, and its principal offices are located in Plano, Texas.

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements reflect the application of significant accounting policies as described below. Basis of Presentation and Consolidation The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany accounts and transactions are eliminated. In the Company's opinion, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2023, which are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2024. The Company has no sources of other comprehensive income, and accordingly, net loss presented each period is the same as comprehensive loss. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions include determining the timing and amount of revenue recognition and business combinations. Recent Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU No. 2023-07 amended the existing segment reporting requirements by requiring disclosure of the significant segment expenses based on how management internally views segment information and by allowing the disclosure of more than one measure of segment profit or loss, as well as by expanding the interim period segment requirements. The ASU also requires single-reportable segment entities to report the disclosures required under ASC Topic 280, Segment Reporting. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact the updated standard will have on its financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 should be applied prospectively; however, retrospective application is permitted. The Company is currently evaluating the impact the updated standard will have on its financial statement disclosures.

Property and Equipment, Net

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and equipment, net, includes the following amounts at June 30, 2024 and December 31, 2023:


(in thousands)	Useful Life	June 30, 2024		December 31, 2023
Software	2 to 5 years	$	920	$	920
Capitalized software development costs	5 years	15,663		12,263
Computers and equipment	3 years	6,847		6,359
Furniture and fixtures	5 years	3,965		3,988
Leasehold improvements	3 to 10 years	12,858		12,312
		$	40,253	$	35,842
Less: accumulated depreciation and amortization		(20,714)		(18,896)
Property and equipment, net		$	19,539	$	16,946

Revenues and Deferred Costs

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenues and Deferred Costs

The following table disaggregates the Company's revenue by major source for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
SaaS subscription services	$	78,371	$	61,169	$	151,383	$	118,688
Implementation services	2,110		3,214		3,958		4,884
Other services	1,679		1,380		2,946		2,187
Total revenues	$	82,160	$	65,763	$	158,287	$	125,759

Deferred Cost Recognition

Accounts Receivable

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Accounts Receivable

Accounts receivable includes the following amounts at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in thousands)	2024		2023
Trade accounts receivable	$	31,695	$	30,111
Unbilled receivables	7,686		5,975
Total receivables	39,381		36,086
Allowance for credit losses	(54)		(59)
Reserve for estimated credits	(375)		(528)
	$	38,952	$	35,499

Accrued Liabilities

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Accrued Liabilities

Accrued liabilities consisted of the following at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in thousands)	2024		2023
Bonus accrual	$	6,807	$	7,798
Accrued vendor purchases	76		174
Commissions accrual	436		2,026
Accrued hosting services	2,038		428
Client refund liability	452		660
Accrued consulting and professional fees	518		713
Accrued tax liabilities	483		1,166
ESPP liability	638		682
Other accrued liabilities	9,431		6,116
Total accrued liabilities	$	20,879	$	19,763

Debt	6 Months Ended
Debt	Jun. 30, 2024
Debt Disclosure [Abstract]
Debt	Debt On June 27, 2023, the Company entered into a First Amendment (the “First Amendment”) to the Company’s Amended and Restated Credit Agreement, dated as of April 29, 2022 (as amended by the First Amendment, the “Amended Credit Agreement”), with Silicon Valley Bank (“SVB”), Comerica Bank and Canadian Imperial Bank of Commerce. The First Amendment provided for Citibank, N.A. to join as a new lender, increased the amount of the Revolving Facility (as defined below) commitment by $20.0 million and extended the maturity date of the Amended Credit Agreement to April 29, 2026, as well as other changes discussed below. The Amended Credit Agreement, inclusive of changes established by the First Amendment, includes the following, among other features: •Revolving Facility: The Amended Credit Agreement provides $60.0 million in aggregate commitments for secured revolving loans (“Revolving Facility”), of which there were no outstanding borrowings as of June 30, 2024. •Term Loan: A term loan of $85.0 million (the “Term Loan”) was borrowed on April 29, 2022, the proceeds of which were used to replenish cash used to fund the acquisition of Segmint, which closed on April 25, 2022. On December 29, 2023, the Company paid the remaining outstanding principal balance of its term loan of $82.9 million. •Accordion Feature: The Amended Credit Agreement also permits the Company, subject to certain conditions, to request additional revolving loan commitments in an aggregate principal amount of up to $50.0 million, of which there were no outstanding borrowings as of June 30, 2024. Revolving Facility loans under the Amended Credit Agreement may be voluntarily prepaid and re-borrowed. Principal payments on the Term Loan are due in quarterly installments equal to an initial amount of approximately $1.1 million, beginning on June 30, 2023 and continuing through March 31, 2024, and increasing to approximately $2.1 million beginning on June 30, 2024 through the Amended Credit Agreement maturity date. Once repaid or prepaid, the Term Loan may not be re-borrowed. The First Amendment added additional covenants that begin each fiscal quarter ending on or after April 29, 2025 (the “Financial Covenant Trigger Date”). Before the Financial Covenant Trigger Date, borrowings under the Amended Credit Agreement bear interest at a variable rate based upon the Secured Overnight Financing Rate (the “SOFR”) plus a margin of 3.00% to 3.50% per annum depending on the applicable recurring revenue leverage ratio. After the Financial Covenant Trigger Date, borrowings under the Amended Credit Agreement bear interest at a variable rate based upon the SOFR plus a margin of 1.50%, 2.00%, 2.50% or 3.00% per annum depending on the applicable consolidated total leverage ratio. If the SOFR is ever less than 0%, then the SOFR shall be deemed to be 0%. The Amended Credit Agreement is subject to certain liquidity and operating covenants and includes customary representations and warranties, affirmative and negative covenants and events of default. The Company is required to pay a commitment fee of 0.25% per annum on the undrawn portion available under the Revolving Facility and variable fees on outstanding letters of credit. The Company has a standby letter of credit in the amount of $0.3 million, which serves as security under the lease relating to the Company’s office space that expires in 2033. Obligations under the Amended Credit Agreement are guaranteed by the Company’s subsidiaries and secured by all or substantially all of the assets of the Company and its subsidiaries pursuant to an Amended and Restated Guarantee and Collateral Agreement. The Amended Credit Agreement contains customary affirmative and negative covenants. Before the Financial Covenant Trigger Date, the following covenants are applicable: (i) an annual recurring revenue growth covenant requiring the loan parties to have recurring revenues in any four consecutive fiscal quarter period in an amount that is 10% greater than the recurring revenues for the corresponding four consecutive quarter period in the previous year; and (ii) a liquidity (defined as the aggregate amount of cash in bank accounts subject to a control agreement plus availability under the Revolving Facility) covenant, requiring the loan parties to have liquidity, tested on the last day of each calendar month, of $20.0 million or more. After the Financial Covenant Trigger Date, the existing annual recurring revenue growth and liquidity financial covenants are no longer applicable, and the following covenants take effect: (i) a consolidated total leverage ratio requiring the ratio, as calculated at the last day of such fiscal quarter for the period of 12 consecutive months then ending, to be less than 3.50:1.00; and (ii) a consolidated fixed charge ratio requiring the ratio, for any fiscal quarter ending as calculated at the last day of such fiscal quarter for the period of 12 consecutive months then ending, to be more than 1.25:1.00. The First Amendment also added, applicable beginning June 30, 2023, a free cash flow covenant requiring, as calculated at the last day of such fiscal quarter for the period of 12 consecutive months then ending, free cash flow to be not less than $(75.0) million for the fiscal quarters ended June 30, 2023 and September 30, 2023, respectively, and $(50.0) million for the fiscal quarter ended December 31, 2023 and each fiscal quarter ending thereafter. The Amended Credit Agreement also contains customary events of default, which if they occur, could result in the termination of commitments under the Amended Credit Agreement, the declaration that all outstanding loans are immediately due and payable in whole or in part, and the requirement to maintain cash collateral deposits in respect of outstanding letters of credit. The Company was in compliance with all covenants as of June 30, 2024.

Stockholders' Equity

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stockholders' Equity

Equity Compensation Plans

Stock-based compensation expense was included in the condensed consolidated statements of operations as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenues	$	1,347	$	1,487	$	2,525	$	2,633
Research and development	4,256		3,963		8,254		7,738
Sales and marketing	2,291		1,813		4,322		3,403
General and administrative	7,119		5,489		13,464		10,222
Total stock-based compensation expenses	$	15,013	$	12,752	$	28,565	$	23,996

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded income tax expense of $0.2 million and $0.4 million for the three and six months ended June 30, 2024, respectively, resulting in an effective tax rate of (1.5)% and (1.6)%, respectively, compared to income tax expense of $0.1 million and $0.3 million for the three and six months ended June 30, 2023, respectively, resulting in an effective tax rate of (0.5)% and (0.8)%, respectively. The Company’s effective tax rate for the three and six months ended June 30, 2024 and 2023 differs from the statutory tax rate primarily due to the impact of the valuation allowance against its deferred tax assets and state tax expense. The Company recognizes deferred tax assets and liabilities based on the estimated future tax effects of temporary differences between the financial statement basis and tax basis of assets and liabilities given the provisions of enacted tax law. Management reviews deferred tax assets to assess their future realization by considering all available evidence, both positive and negative, to determine whether a valuation allowance is needed for all or some portion of the deferred tax assets, using a “more likely than not” standard. The assessment considers, among other matters: historical losses, future reversals of taxable temporary differences, the duration of statutory carryback and carryforward periods, and ongoing prudent and feasible tax planning strategies. As a result, the Company has established a valuation allowance against most of its deferred tax assets as realization is not reasonably assured based upon a “more likely than not” threshold. The Company reassesses the realizability of deferred tax assets regularly, and it will adjust the valuation allowance as sufficient objective positive evidence becomes available.

Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:

Level 1. Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2. Significant other inputs that are directly or indirectly observable in the marketplace.

Level 3. Significant unobservable inputs that are supported by little or no market activity.


			Fair Value at Reporting Date Using
(in thousands)	June 30, 2024		Level 1		Level 2		Level 3
Assets:
Cash equivalents(1)	$	47,424	$	47,424	$	—	$	—
Marketable securities:
Corporate bonds	5,166		—		5,166		—
Commercial paper	3,265		—		3,265		—
U.S. Treasury debt securities	15,335		15,335		—		—
International debt securities	2,196		—		2,196		—
Total marketable securities	25,962		15,335		10,627		—
Total Assets	$	73,386	$	62,759	$	10,627	$	—


			Fair Value at Reporting Date Using
(in thousands)	December 31, 2023		Level 1		Level 2		Level 3
Assets:
Cash equivalents(1)	$	34,463	$	34,463	$	—	$	—
Marketable securities:
Corporate bonds	16,206		—		16,206		—
Commercial paper	7,279		—		7,279		—
U.S. government-sponsored enterprise securities	3,500		—		3,500		—
U.S. Treasury debt securities	22,067		22,067		—		—
International debt securities	2,144		—		2,144		—
Total marketable securities	51,196		22,067		29,129		—
Total Assets	$	85,659	$	56,530	$	29,129	$	—

(1) Includes insured cash sweep account, cash sweep account, money market account and money market funds that have investments primarily in U.S. Government Agency debt, U.S. Treasury debt, U.S. Treasury Repurchase Agreements, U.S. Government Agency Repurchase Agreements and corporate bonds that have a maturity of three months or less from the original acquisition date.

Earnings Per Share

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

The computation of basic and diluted net loss per share attributable to common stockholders is as follows for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
(in thousands, except shares and per share amounts)	2024		2023		2024		2023
Net loss	$	(12,317)	$	(17,761)	$	(23,750)	$	(34,724)
Weighted-average shares of common stock outstanding - basic and diluted	98,103,527		93,334,725		97,524,379		92,868,623
Net loss per common share - basic and diluted	$	(0.13)	$	(0.19)	$	(0.24)	$	(0.37)

The following potential shares of common stock were excluded from diluted net loss per share as the Company had a net loss in each of the periods presented:


	As of June 30,
	2024	2023
Stock options	2,860,009	5,364,567
Restricted Stock Units	7,347,640	8,621,907
ESPP	28,748	36,768
Total anti-dilutive common share equivalents	10,236,397	14,023,242

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Proceedings The Company may become party to various legal actions during the ordinary course of business. Defending such proceedings is costly and can impose a significant burden on management and employees, it may receive unfavorable preliminary or interim rulings during litigation, and there can be no assurances that favorable final outcomes will be obtained. In addition, the Company’s industry is characterized by the existence of a large number of patents, copyrights, trademarks, trade secrets and other intellectual property and proprietary rights. Companies in our industry are often required to defend against litigation claims based on allegations of infringement or other violations of intellectual property rights. Furthermore, client agreements typically require the Company to indemnify clients against liabilities incurred in connection with claims alleging its solutions infringe the intellectual property rights of a third party. From time to time, the Company has been involved in disputes related to patent and other intellectual property rights of third parties, none of which has resulted in material liabilities. The Company expects these types of disputes may continue to arise in the future. Based upon present information, the Company believes that its liability, if any, arising from such pending legal proceedings, asserted legal claims and known potential legal claims, which are likely to be asserted, is not reasonably likely to be material to the Company’s financial position, results of operations, or cash flows, taking into account established accruals for estimated liabilities.

Leases

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Leases

Operating lease expense consisted of:


(in thousands)	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Operating lease expense	$	674	$	784	$	1,343	$	1,568
Short-term lease expense and other (1)	129		229		432		547
Total lease expense	$	803	$	1,013	$	1,775	$	2,115
(1) Other lease expense includes variable lease expense and sublease income.

Supplemental Cash Flow Information


	Six months ended June 30,
Cash flow information (in thousands)	2024		2023
Cash paid for operating lease liabilities	$	1,324	$	1,877

The future maturities of operating lease liabilities are as follows:


(in thousands)	June 30, 2024
2024 (six months remaining)	$	1,341
2025	2,707
2026	2,648
2027	2,620
2028	2,777
Thereafter	14,981
Total minimum lease payments	27,074
Less: present value discount	(8,063)
Total lease liability balance	$	19,011

Goodwill and Other Intangibles

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Total intangibles, net, consisted of the following as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(3,502)	$	16,968
Developed Technology	27,700		(12,827)		14,873
Tradenames	750		(202)		548
Subtotal amortizable intangible assets	48,920		(16,531)		32,389
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(16,531)	$	32,414


	As of December 31, 2023
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(2,820)	$	17,650
Developed Technology	27,700		(10,151)		17,549
Tradenames	750		(167)		583
Subtotal amortizable intangible assets	48,920		(13,138)		35,782
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(13,138)	$	35,807

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in thousands):


2024 (six months remaining)	$	3,393
2025	6,786
2026	6,554
2027	3,162
2028	1,435
Thereafter	11,059
	$	32,389

Subsequent Event	6 Months Ended
Subsequent Event	Jun. 30, 2024
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On July 1, 2024, the Company entered into a Second Amendment (the “Second Amendment”) to the Amended Credit Agreement. Among other changes, the Second Amendment (i) extends the maturity date of the revolving commitment from April 29, 2026 to April 29, 2027, (ii) increases the amount of the revolving loan commitment by $65.0 million, for a total commitment of $125.0 million, (iii) increases the accordion feature from $50.0 million to $100.0 million of funds available to request, (iv) modifies certain existing covenants, including increasing the minimum trailing four quarters free cash flow requirement to $(25.0) million, and (v) for any fiscal quarter ending after the Financial Covenant Trigger Date (which has been extended to April 28, 2026 or such earlier date as designated by the Company), replaces compliance with a fixed charge coverage ratio with compliance of a minimum interest coverage ratio of 3.0x. The Second Amendment is not expected to have a material impact on the condensed consolidated financial statements.

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (12,317)	$ (17,761)	$ (23,750)	$ (34,724)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The interim unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. All intercompany accounts and transactions are eliminated. In the Company's opinion, the accompanying interim unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. Certain information and disclosures normally included in the notes to the annual consolidated financial statements prepared in accordance with GAAP have been omitted from these interim unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2023, which are included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 29, 2024. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of results that may be expected for any other interim period or for the year ending December 31, 2024. The Company has no sources of other comprehensive income, and accordingly, net loss presented each period is the same as comprehensive loss.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates and assumptions include determining the timing and amount of revenue recognition and business combinations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. ASU No. 2023-07 amended the existing segment reporting requirements by requiring disclosure of the significant segment expenses based on how management internally views segment information and by allowing the disclosure of more than one measure of segment profit or loss, as well as by expanding the interim period segment requirements. The ASU also requires single-reportable segment entities to report the disclosures required under ASC Topic 280, Segment Reporting. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impact the updated standard will have on its financial statement disclosures. In December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 expands disclosures in the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. ASU 2023-09 should be applied prospectively; however, retrospective application is permitted. The Company is currently evaluating the impact the updated standard will have on its financial statement disclosures.

Property and Equipment, Net (Tables)

6 Months Ended

Jun. 30, 2024

Property, Plant and Equipment [Abstract]

Schedule of Property and Equipment, Net

Property and equipment, net, includes the following amounts at June 30, 2024 and December 31, 2023:


(in thousands)	Useful Life	June 30, 2024		December 31, 2023
Software	2 to 5 years	$	920	$	920
Capitalized software development costs	5 years	15,663		12,263
Computers and equipment	3 years	6,847		6,359
Furniture and fixtures	5 years	3,965		3,988
Leasehold improvements	3 to 10 years	12,858		12,312
		$	40,253	$	35,842
Less: accumulated depreciation and amortization		(20,714)		(18,896)
Property and equipment, net		$	19,539	$	16,946

Revenues and Deferred Costs (Tables)

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue

The following table disaggregates the Company's revenue by major source for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
SaaS subscription services	$	78,371	$	61,169	$	151,383	$	118,688
Implementation services	2,110		3,214		3,958		4,884
Other services	1,679		1,380		2,946		2,187
Total revenues	$	82,160	$	65,763	$	158,287	$	125,759

Accounts Receivable (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Accounts Receivable, Net

Accounts receivable includes the following amounts at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in thousands)	2024		2023
Trade accounts receivable	$	31,695	$	30,111
Unbilled receivables	7,686		5,975
Total receivables	39,381		36,086
Allowance for credit losses	(54)		(59)
Reserve for estimated credits	(375)		(528)
	$	38,952	$	35,499

Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consisted of the following at June 30, 2024 and December 31, 2023:


	June 30,		December 31,
(in thousands)	2024		2023
Bonus accrual	$	6,807	$	7,798
Accrued vendor purchases	76		174
Commissions accrual	436		2,026
Accrued hosting services	2,038		428
Client refund liability	452		660
Accrued consulting and professional fees	518		713
Accrued tax liabilities	483		1,166
ESPP liability	638		682
Other accrued liabilities	9,431		6,116
Total accrued liabilities	$	20,879	$	19,763

Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Compensation Expense

Stock-based compensation expense was included in the condensed consolidated statements of operations as follows:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2024		2023		2024		2023
Cost of revenues	$	1,347	$	1,487	$	2,525	$	2,633
Research and development	4,256		3,963		8,254		7,738
Sales and marketing	2,291		1,813		4,322		3,403
General and administrative	7,119		5,489		13,464		10,222
Total stock-based compensation expenses	$	15,013	$	12,752	$	28,565	$	23,996

Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Financial Assets Measured at Fair Value

The following tables summarize the Company’s financial assets measured at fair value as of June 30, 2024 and December 31, 2023 and indicate the fair value hierarchy of the valuation:


			Fair Value at Reporting Date Using
(in thousands)	June 30, 2024		Level 1		Level 2		Level 3
Assets:
Cash equivalents(1)	$	47,424	$	47,424	$	—	$	—
Marketable securities:
Corporate bonds	5,166		—		5,166		—
Commercial paper	3,265		—		3,265		—
U.S. Treasury debt securities	15,335		15,335		—		—
International debt securities	2,196		—		2,196		—
Total marketable securities	25,962		15,335		10,627		—
Total Assets	$	73,386	$	62,759	$	10,627	$	—


			Fair Value at Reporting Date Using
(in thousands)	December 31, 2023		Level 1		Level 2		Level 3
Assets:
Cash equivalents(1)	$	34,463	$	34,463	$	—	$	—
Marketable securities:
Corporate bonds	16,206		—		16,206		—
Commercial paper	7,279		—		7,279		—
U.S. government-sponsored enterprise securities	3,500		—		3,500		—
U.S. Treasury debt securities	22,067		22,067		—		—
International debt securities	2,144		—		2,144		—
Total marketable securities	51,196		22,067		29,129		—
Total Assets	$	85,659	$	56,530	$	29,129	$	—

(1) Includes insured cash sweep account, cash sweep account, money market account and money market funds that have investments primarily in U.S. Government Agency debt, U.S. Treasury debt, U.S. Treasury Repurchase Agreements, U.S. Government Agency Repurchase Agreements and corporate bonds that have a maturity of three months or less from the original acquisition date.

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Net Loss Per Share, Basic and Diluted

The computation of basic and diluted net loss per share attributable to common stockholders is as follows for the three and six months ended June 30, 2024 and 2023:


	Three months ended June 30,				Six months ended June 30,
(in thousands, except shares and per share amounts)	2024		2023		2024		2023
Net loss	$	(12,317)	$	(17,761)	$	(23,750)	$	(34,724)
Weighted-average shares of common stock outstanding - basic and diluted	98,103,527		93,334,725		97,524,379		92,868,623
Net loss per common share - basic and diluted	$	(0.13)	$	(0.19)	$	(0.24)	$	(0.37)

Schedule of Antidilutive Securities

The following potential shares of common stock were excluded from diluted net loss per share as the Company had a net loss in each of the periods presented:


	As of June 30,
	2024	2023
Stock options	2,860,009	5,364,567
Restricted Stock Units	7,347,640	8,621,907
ESPP	28,748	36,768
Total anti-dilutive common share equivalents	10,236,397	14,023,242

Leases (Tables)

6 Months Ended

Jun. 30, 2024

Leases [Abstract]

Schedule of Operating Lease Expense

Operating lease expense consisted of:


(in thousands)	Three months ended June 30,				Six months ended June 30,
	2024		2023		2024		2023
Operating lease expense	$	674	$	784	$	1,343	$	1,568
Short-term lease expense and other (1)	129		229		432		547
Total lease expense	$	803	$	1,013	$	1,775	$	2,115
(1) Other lease expense includes variable lease expense and sublease income.

Supplemental Cash Flow Information


	Six months ended June 30,
Cash flow information (in thousands)	2024		2023
Cash paid for operating lease liabilities	$	1,324	$	1,877

Schedule of Lessee, Operating Lease, Liability, Maturity

The future maturities of operating lease liabilities are as follows:


(in thousands)	June 30, 2024
2024 (six months remaining)	$	1,341
2025	2,707
2026	2,648
2027	2,620
2028	2,777
Thereafter	14,981
Total minimum lease payments	27,074
Less: present value discount	(8,063)
Total lease liability balance	$	19,011

Goodwill and Other Intangibles (Tables)

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Total intangibles, net, consisted of the following as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(3,502)	$	16,968
Developed Technology	27,700		(12,827)		14,873
Tradenames	750		(202)		548
Subtotal amortizable intangible assets	48,920		(16,531)		32,389
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(16,531)	$	32,414


	As of December 31, 2023
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(2,820)	$	17,650
Developed Technology	27,700		(10,151)		17,549
Tradenames	750		(167)		583
Subtotal amortizable intangible assets	48,920		(13,138)		35,782
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(13,138)	$	35,807

Schedule of Indefinite-Lived Intangible Assets

Total intangibles, net, consisted of the following as of June 30, 2024 and December 31, 2023:


	As of June 30, 2024
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(3,502)	$	16,968
Developed Technology	27,700		(12,827)		14,873
Tradenames	750		(202)		548
Subtotal amortizable intangible assets	48,920		(16,531)		32,389
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(16,531)	$	32,414


	As of December 31, 2023
(in thousands)	Carrying Value		Accumulated Amortization		Net Carrying Value
Finite-lived:
Customer Relationships	$	20,470	$	(2,820)	$	17,650
Developed Technology	27,700		(10,151)		17,549
Tradenames	750		(167)		583
Subtotal amortizable intangible assets	48,920		(13,138)		35,782
Website domain name	25		—		25
Total intangible assets	$	48,945	$	(13,138)	$	35,807

Schedule of Definite-Lived Intangible Assets, Future Amortization Expense

The following table shows the estimated annual amortization expense of the definite-lived intangible assets for the next five years and thereafter (in thousands):


2024 (six months remaining)	$	3,393
2025	6,786
2026	6,554
2027	3,162
2028	1,435
Thereafter	11,059
	$	32,389

Property and Equipment, Net - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 900,000	$ 1,800,000	$ 900,000	$ 1,800,000
Amortization of stock-based compensation	15,013,000	12,752,000	28,565,000	23,996,000
Software Development Costs
Property, Plant and Equipment [Line Items]
Stock based compensation capitalized			400,000	400,000
Amortization of stock-based compensation	$ 100,000	$ 0	$ 100,000	$ 0

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 40,253	$ 35,842
Less: accumulated depreciation and amortization	(20,714)	(18,896)
Property and equipment, net	19,539	16,946
Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 920	920
Software \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	2 years
Software \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Property and equipment, gross	$ 15,663	12,263
Computers and equipment
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Property and equipment, gross	$ 6,847	6,359
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful life (in years)	5 years
Property and equipment, gross	$ 3,965	3,988
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,858	$ 12,312
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	10 years

Revenues and Deferred Costs - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenues	$ 82,160	$ 65,763	$ 158,287	$ 125,759
SaaS subscription services
Disaggregation of Revenue [Line Items]
Total revenues	78,371	61,169	151,383	118,688
Implementation services
Disaggregation of Revenue [Line Items]
Total revenues	2,110	3,214	3,958	4,884
Other services
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,679	$ 1,380	$ 2,946	$ 2,187

Revenues and Deferred Costs - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized during period			$ 4,700,000
Remaining performance obligation, amount	$ 1,200,000,000		1,200,000,000
Contract assets	1,300,000		1,300,000		$ 1,500,000
Impairment loss on deferred costs	0	$ 0	0	$ 0
Deferred Commissions Costs
Disaggregation of Revenue [Line Items]
Capitalized cost during period	1,700,000	2,000,000.0	2,900,000	2,800,000
Amortization of capitalized costs	1,300,000	800,000	2,500,000	1,700,000
Deferred commissions	21,600,000		21,600,000		21,200,000
Deferred Implementation Costs
Disaggregation of Revenue [Line Items]
Capitalized cost during period	2,300,000	2,000,000.0	5,200,000	4,100,000
Amortization of capitalized costs	1,300,000	$ 1,200,000	2,700,000	$ 2,300,000
Deferred commissions	$ 22,400,000		$ 22,400,000		$ 19,800,000
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation (as a percent)	47.20%		47.20%
Remaining performance obligation, period	24 months		24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Disaggregation of Revenue [Line Items]
Remaining performance obligation (as a percent)	35.40%		35.40%
Remaining performance obligation, period	24 months		24 months

Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	$ 39,381	$ 36,086
Allowance for credit losses	(54)	(59)
Reserve for estimated credits	(375)	(528)
Accounts receivable, net	38,952	35,499
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	31,695	30,111
Unbilled receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total receivables	$ 7,686	$ 5,975

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Bonus accrual	$ 6,807	$ 7,798
Accrued vendor purchases	76	174
Commissions accrual	436	2,026
Accrued hosting services	2,038	428
Client refund liability	452	660
Accrued consulting and professional fees	518	713
Accrued tax liabilities	483	1,166
ESPP liability	638	682
Other accrued liabilities	9,431	6,116
Total accrued liabilities	$ 20,879	$ 19,763

Debt (Details)					3 Months Ended
Debt (Details)	Apr. 30, 2025	Dec. 29, 2023 USD ($)	Jun. 27, 2023 USD ($)	Apr. 29, 2022 USD ($)	Dec. 31, 2023 USD ($)	Sep. 30, 2023 USD ($)	Jun. 30, 2023 USD ($)	Apr. 29, 2025	Jun. 30, 2024 USD ($)
Line of Credit \| Amended Credit Agreement
Debt Instrument [Line Items]
Revenue growth requirement (as a percent)				10.00%
Liquidity requirement				$ 20,000,000
Covenant, required free cash flow					$ (50,000,000)
Line of Credit \| Amended Credit Agreement \| Forecast
Debt Instrument [Line Items]
Maximum consolidated total leverage ratio								3.50
Minimum consolidated fixed charge ratio								1.25
Line of Credit \| Amended Credit Agreement \| Minimum
Debt Instrument [Line Items]
Covenant, required free cash flow						$ (75,000,000)	$ (75,000,000)
Revolving Credit Facility \| Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			0.00%
Basis spread on variable rate, maximum (as a percent)			0.00%
Line of credit, unused capacity, commitment fee (as a percent)			0.25%
Revolving Credit Facility \| Line of Credit \| Component One \| Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.50%
Revolving Credit Facility \| Line of Credit \| Component Two \| Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.00%
Revolving Credit Facility \| Line of Credit \| Component Three \| Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Revolving Credit Facility \| Line of Credit \| Component Four \| Forecast
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.00%
Revolving Credit Facility \| Line of Credit \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			3.00%
Revolving Credit Facility \| Line of Credit \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			3.50%
Revolving Credit Facility \| Line of Credit \| Amended Credit Agreement
Debt Instrument [Line Items]
Increase to maximum borrowing capacity			$ 20,000,000
Line of credit, maximum borrowing capacity			60,000,000
Long term debt									$ 0
Accordion feature			$ 50,000,000
Term Loan \| Line of Credit \| Amended Credit Agreement
Debt Instrument [Line Items]
Proceeds from borrowings of term loan				85,000,000
Outstanding principal balance		$ 82,900,000
Quarterly installment payments				1,100,000
Increase in quarterly installment payments				$ 2,100,000
Standby Letters of Credit
Debt Instrument [Line Items]
Long term debt									$ 300,000

Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	$ 15,013	$ 12,752	$ 28,565	$ 23,996
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	1,347	1,487	2,525	2,633
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	4,256	3,963	8,254	7,738
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	2,291	1,813	4,322	3,403
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expenses	$ 7,119	$ 5,489	$ 13,464	$ 10,222

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense	$ 185	$ 88	$ 374	$ 284
Effective income tax rate (as a percent)	(1.50%)	(0.50%)	(1.60%)	(0.80%)

Fair Value of Financial Instruments (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets:
Marketable securities:	$ 25,962	$ 51,196
Total Assets	73,386	85,659
Corporate bonds
Assets:
Marketable securities:	5,166	16,206
Commercial paper
Assets:
Marketable securities:	3,265	7,279
U.S. government-sponsored enterprise securities
Assets:
Marketable securities:		3,500
U.S. Treasury debt securities
Assets:
Marketable securities:	15,335	22,067
International debt securities
Assets:
Marketable securities:	2,196	2,144
Level 1
Assets:
Marketable securities:	15,335	22,067
Total Assets	62,759	56,530
Level 1 \| Corporate bonds
Assets:
Marketable securities:	0	0
Level 1 \| Commercial paper
Assets:
Marketable securities:	0	0
Level 1 \| U.S. government-sponsored enterprise securities
Assets:
Marketable securities:		0
Level 1 \| U.S. Treasury debt securities
Assets:
Marketable securities:	15,335	22,067
Level 1 \| International debt securities
Assets:
Marketable securities:	0	0
Level 2
Assets:
Marketable securities:	10,627	29,129
Total Assets	10,627	29,129
Level 2 \| Corporate bonds
Assets:
Marketable securities:	5,166	16,206
Level 2 \| Commercial paper
Assets:
Marketable securities:	3,265	7,279
Level 2 \| U.S. government-sponsored enterprise securities
Assets:
Marketable securities:		3,500
Level 2 \| U.S. Treasury debt securities
Assets:
Marketable securities:	0	0
Level 2 \| International debt securities
Assets:
Marketable securities:	2,196	2,144
Level 3
Assets:
Marketable securities:	0	0
Total Assets	0	0
Level 3 \| Corporate bonds
Assets:
Marketable securities:	0	0
Level 3 \| Commercial paper
Assets:
Marketable securities:	0	0
Level 3 \| U.S. government-sponsored enterprise securities
Assets:
Marketable securities:		0
Level 3 \| U.S. Treasury debt securities
Assets:
Marketable securities:	0	0
Level 3 \| International debt securities
Assets:
Marketable securities:	0	0
Cash Equivalents
Assets:
Cash equivalents	47,424	34,463
Cash Equivalents \| Level 1
Assets:
Cash equivalents	47,424	34,463
Cash Equivalents \| Level 2
Assets:
Cash equivalents	0	0
Cash Equivalents \| Level 3
Assets:
Cash equivalents	$ 0	$ 0

Earnings Per Share - Computation of Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net loss	$ (12,317)	$ (17,761)	$ (23,750)	$ (34,724)
Weighted-average shares of common stock outstanding - basic (in shares)	98,103,527	93,334,725	97,524,379	92,868,623
Weighted-average shares of common stock outstanding - diluted (in shares)	98,103,527	93,334,725	97,524,379	92,868,623
Net loss per common share - basic (in dollars per share)	$ (0.13)	$ (0.19)	$ (0.24)	$ (0.37)
Net loss per common share - diluted (in dollars per share)	$ (0.13)	$ (0.19)	$ (0.24)	$ (0.37)

Earnings Per Share - Schedule of Antidilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents (in shares)	10,236,397	14,023,242
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents (in shares)	2,860,009	5,364,567
Restricted Stock Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents (in shares)	7,347,640	8,621,907
ESPP
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total anti-dilutive common share equivalents (in shares)	28,748	36,768

Leases - Narrative (Details) $ in Millions		3 Months Ended	6 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($) ft²	Dec. 31, 2023 USD ($) ft²	Jun. 30, 2024 ft² additional_term	Dec. 30, 2023 ft²
Lessee, Lease, Description [Line Items]
Operating lease, term (in years)			10 years
Office space (in square feet) \| ft²	83,939	83,939	125,468	125,468
Increase in right of use assets	$ 3.1
Increase in lease liability	$ 2.7
Gain on lease modification		$ 0.4
Office Space Lease, Five Year Additional Term
Lessee, Lease, Description [Line Items]
Operating lease, number of additional terms \| additional_term			2
Operating lease, additional term (in years)			5 years
Office Space Lease, Ten Year Additional Term
Lessee, Lease, Description [Line Items]
Operating lease, number of additional terms \| additional_term			1
Operating lease, additional term (in years)			10 years

Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Leases [Abstract]
Operating lease expense	$ 674	$ 784	$ 1,343	$ 1,568
Short-term lease expense and other	129	229	432	547
Total lease expense	$ 803	$ 1,013	1,775	2,115
Cash paid for operating lease liabilities			$ 1,324	$ 1,877

Leases - Schedule of Future Maturities of Operating Leases (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
2024 (six months remaining)	$ 1,341
2025	2,707
2026	2,648
2027	2,620
2028	2,777
Thereafter	14,981
Total minimum lease payments	27,074
Less: present value discount	(8,063)
Total lease liability balance	$ 19,011

Goodwill and Other Intangibles - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 148,050		$ 148,050		$ 148,050
Amortization of acquired intangibles	$ 1,700	$ 1,700	$ 3,400	$ 3,400

Goodwill and Other Intangibles - Schedule of Total Intangibles, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Carrying Value	$ 48,920	$ 48,920
Accumulated Amortization	(16,531)	(13,138)
Net Carrying Value	32,389	35,782
Website domain name	25	25
Total carrying value, gross	48,945	48,945
Total net carrying value	32,414	35,807
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Carrying Value	20,470	20,470
Accumulated Amortization	(3,502)	(2,820)
Net Carrying Value	16,968	17,650
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Carrying Value	27,700	27,700
Accumulated Amortization	(12,827)	(10,151)
Net Carrying Value	14,873	17,549
Tradenames
Finite-Lived Intangible Assets [Line Items]
Carrying Value	750	750
Accumulated Amortization	(202)	(167)
Net Carrying Value	$ 548	$ 583

Goodwill and Other Intangibles - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (six months remaining)	$ 3,393
2025	6,786
2026	6,554
2027	3,162
2028	1,435
Thereafter	11,059
Net Carrying Value	$ 32,389	$ 35,782

Subsequent Event (Details) - Revolving Credit Facility - Credit Agreement - Line of Credit - Subsequent Event	Jul. 01, 2024 USD ($)
Subsequent Event [Line Items]
Increase to maximum borrowing capacity	$ 65,000,000.0
Line of credit, maximum borrowing capacity	125,000,000.0
Increasing minimum trailing free cash flow requirement	$ (25,000,000)
Fixed charge coverage ratio	3.0
Minimum
Subsequent Event [Line Items]
Accordion feature	$ 50,000,000.0
Maximum
Subsequent Event [Line Items]
Accordion feature	$ 100,000,000.0