Alkami and BioCatch halt $54 million in fraud in 2024

PLANO, Texas - Alkami Technology, Inc. (NASDAQ: ALKT), a prominent cloud-based digital banking solutions provider with a market capitalization of $2.65 billion, has reported that its collaboration with BioCatch, a behavioral biometrics company, has successfully prevented over $54 million in fraudulent transactions in 2024. This milestone underscores the effectiveness of their integrated fraud prevention strategies within the financial sector. According to InvestingPro data, the company has demonstrated strong revenue growth of 26% in the last twelve months, positioning it well in the digital banking space.

The partnership, which embeds BioCatch’s Account Takeover Protection into Alkami’s Digital Banking Platform, offers a behavior-based fraud detection system that operates in real-time, analyzing unique user interactions like mouse movements and typing patterns to identify and thwart potential fraud. With a healthy current ratio of 3.98 and moderate debt levels, InvestingPro analysis shows Alkami maintains strong operational flexibility to invest in such security innovations. Discover 10+ additional exclusive insights about ALKT with an InvestingPro subscription.

Brad Cranford, Alkami’s director of product management, emphasized the strategic importance of the multi-layered approach to fraud prevention, highlighting BioCatch’s seamless operation that bolsters security without interrupting the user experience.

Gate City Bank, one of Alkami’s clients, has experienced firsthand the benefits of this technology. Jessica Ebeling, executive vice president and chief digital and payment officer at the bank, praised BioCatch for enhancing their defenses and protecting customers’ identities effectively.

BioCatch’s technology is designed to catch subtle indicators of fraudulent activity, such as unusual keyboard shortcuts or remote access tool usage, which conventional security measures might overlook. Jay Whoriskey, north america director at BioCatch, stated that the significant amount of fraud prevented in the previous year demonstrates the value of their real-time behavioral, device, and network signal analysis.

Alkami, certified by J.D. Power for providing an outstanding mobile banking experience, continues to support financial institutions in their growth and adaptation to digital challenges through its suite of banking and security solutions.

This report is based on a press release statement from Alkami Technology, Inc. Looking ahead, analysts tracked by InvestingPro expect the company to achieve profitability in 2025, with projected earnings per share of $0.46. The company’s next earnings report is scheduled for April 30, 2025, where investors will be watching for continued progress in both security initiatives and financial performance. Access the comprehensive Pro Research Report for deeper insights into ALKT’s business model and growth trajectory.

In other recent news, Alkami Technology Inc. reported its fourth-quarter 2024 earnings, revealing a notable miss on earnings per share (EPS) expectations, with an EPS of -0.08 compared to the forecasted 0.08. Despite this, the company’s revenue for the quarter slightly exceeded expectations, reaching $89.66 million, marking a 26% year-over-year increase. The company also announced a $300 million convertible notes offering, with net proceeds primarily intended for the acquisition of Fin Technologies, Inc., also known as MANTL. This acquisition is expected to enhance Alkami’s product offerings and drive revenue synergies, although the completion of the acquisition is not contingent on the offering’s closure.

Analyst firm KeyBanc Capital Markets revised Alkami’s stock price target downward to $45 from $50, maintaining an Overweight rating. The adjustment follows a slight deceleration in the company’s Annual Recurring Revenue (ARR) growth. Alkami’s fiscal year 2025 guidance for organic revenue was slightly below analyst expectations, with adjusted EBITDA margins aligning more closely. The MANTL acquisition is expected to be accretive to adjusted EBITDA by 2026, despite its initial dilutive effect.

Additionally, Alkami plans to enter into capped call transactions to minimize potential stock dilution upon note conversion. The company anticipates the MANTL acquisition to contribute $30 million in revenue for 2025, with its ARR expected to reach $60 million by the end of that year. These developments reflect Alkami’s strategic efforts to expand its product offerings and financial performance, despite current challenges in meeting earnings expectations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.