Alkami (ALKT) 46th Annual William Blair Growth Stock Conference summary

Market overview and business model

• Serves regional and community financial institutions with a cloud-native digital banking platform, targeting those with legacy systems and complex integration needs.

• Contracts average five to seven years, providing predictable new logo opportunities and revenue streams.

• Market demand is driven by the need to match digital capabilities of large banks, with innovation from major players fueling product expansion.

• Integrated digital sales and service platform, including recent acquisition of MANTL, differentiates the offering and supports deposit origination.

• Focus areas for growth include expanding into the bank market, increasing product capabilities, growing customer spend, and scaling platform economics.

Financial performance and growth drivers

• Q1 highlights: six new logos signed, seven clients implemented, and 307 clients on the platform.

• Backlog includes 40 customers representing 1.4 million digital users, with most expected to go live within 12 months.

• ARR grew 22% year-over-year to nearly $500 million, with remaining performance obligations at $1.7 billion.

• Churn remains below 1% of ARR, with growth driven by new logos, user base expansion, and ARPU increases.

• Revenue reached $126 million in Q1, with full-year guidance near $530 million and adjusted EBITDA approaching $100 million.

Product strategy and innovation

• Product suite has expanded from basic digital banking to include AI chatbots, fraud detection, FICO score monitoring, and payments integration.

• Integration of MANTL has led to a significant increase in customers using the full suite, from 11 to nearly 50 in one year.

• Currently offers about 35 products, with ARPU growth expected to drive 50% of overall growth in coming years.

• Customers typically double in size over four to five years and quadruple over ten years, supporting long-term upsell and cross-sell strategies.

• Long-term vision includes expanding from 1.5 to 2 of the five core banking systems, with future product additions likely in payments or fraud management.