Q1 2024 Alkami Technology Inc Earnings Call Transcript
Key Points
- Alkami Technology Inc (ALKT) reported a 27% year-over-year revenue growth, achieving $76.1 million in the first quarter of 2024.
- Adjusted EBITDA for the quarter was $3.8 million, surpassing the high end of company expectations.
- The company saw an increase in live registered users to 18.1 million, a 20% increase compared to the previous year.
- Alkami Technology Inc (ALKT) successfully implemented eight new clients in the quarter, bringing the total digital banking platform client count to 244.
- The company has a strong sales pipeline with a 50% increase in qualified prospect pipeline at their annual conference compared to last year.
- Alkami Technology Inc (ALKT) anticipates losing three clients in 2024, representing less than 1% of ARR, although this is below the expected long-term average churn of 2% to 3%.
- Despite strong growth metrics, the company faces challenges in the banking sector with a win rate in the mid-teens for commercial bank RFPs.
- The company noted that increased digital account openings have led to a rise in fraudulent account activities, posing a challenge to maintaining security while enhancing user convenience.
- While there is significant room for product upsell, with clients currently adopting 13 out of 32 available products, converting this potential into actual sales remains a challenge.
- Alkami Technology Inc (ALKT) is still working towards achieving a 65% gross margin by 2026, indicating ongoing pressure to improve cost efficiency and operational scalability.
Good afternoon, ladies and gentlemen, and welcome to the Alkami Technology first-quarter 2024 financial results conference call. (Operator Instructions) I'd like to turn the conference over to Steve Calk, Vice President of Investor Relations. Steve, go ahead.
Thank you, operator. With me on today's call are Alex Shootman, Chief Executive Officer; and Bryan Hill, Chief Financial Officer.
During today's call, we may make forward-looking statements about guidance and other matters regarding our future performance. These statements are based on management's current views and expectations and are subject to various risks and uncertainties. Our actual results may be materially different.
For a summary of risk factors associated with our forward-looking statements, please refer to today's press release and the sections in our latest 10-K entitled Risk Factors and Forward-looking Statements. Statements made during the call are being made as of today, and we undertake no
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