Shareholders might have noticed that Alkami Technology, Inc. (NASDAQ:ALKT) filed its second-quarter result this time last week. The early response was not positive, with shares down 3.6% to US$32.24 in the past week. Revenues came in at US$82m, in line with forecasts and the company reported a statutory loss of US$0.13 per share, roughly in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Following the latest results, Alkami Technology's ten analysts are now forecasting revenues of US$332.7m in 2024. This would be a notable 12% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 17% from last year to US$0.43. Before this earnings announcement, the analysts had been modelling revenues of US$331.7m and losses of US$0.46 per share in 2024. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

These new estimates led to the consensus price target rising 6.5% to US$32.60, with lower forecast losses suggesting things could be looking up for Alkami Technology. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Alkami Technology, with the most bullish analyst valuing it at US$38.00 and the most bearish at US$26.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Alkami Technology'shistorical trends, as the 25% annualised revenue growth to the end of 2024 is roughly in line with the 27% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Alkami Technology is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Alkami Technology going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Alkami Technology , and understanding this should be part of your investment process.

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

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