Shares of Alkami Technology, Inc. (NASDAQ: ALKT) tumbled 9.05% in after-hours trading on Thursday following the release of its third-quarter financial results that fell short of analyst expectations and provided weaker-than-anticipated guidance.

The digital banking software provider reported Q3 revenue of $112.954 million, representing a 31.5% year-over-year growth but missing the analyst consensus estimate of $114.3 million. The company's GAAP net loss widened to $14.804 million from $9.4 million in the same period last year. Alkami's gross margin for the quarter stood at 56.8%, with an adjusted gross margin of 63.7%.

Despite the revenue miss, Alkami highlighted some positive developments, including the successful launch of 13 new financial institutions and continued strong demand among regional and community financial institutions. The company also noted early momentum in demand for holistic solutions like its Digital Sales & Service Platform.

However, investors seemed more focused on the company's guidance. For the fourth quarter, Alkami expects revenue between $119.6 million and $121.1 million, with adjusted EBITDA of $16.1 million to $17.1 million. The full-year outlook was also adjusted, with revenue now projected between $442.5 million and $444.0 million, and adjusted EBITDA forecasted at $56.0 million to $57.0 million.

The after-hours stock plunge suggests that investors were expecting stronger performance and guidance from Alkami, especially given the high growth expectations typically associated with software companies in the fintech sector. The company will need to address investor concerns and demonstrate its ability to accelerate growth and improve profitability in the coming quarters to regain market confidence.