Alkami (ALKT) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Market opportunity and competitive landscape

• Over 2,000 regional banks and credit unions remain on legacy technology, with contract cycles of 5–7 years and about 300 potential client renewals annually, keeping the addressable market steady.

• The main barrier to switching is the perceived pain of conversion versus the value gained, which recent acquisitions aim to address by increasing value for clients.

• Product-market fit in the bank segment has been achieved, shifting focus to operationalizing growth and expanding presence among banks.

• Win rates have improved, especially after integrating acquired products, with conversion risk still the top reason for lost deals.

• Demographic shifts in bank customers, especially generational transitions, are driving increased demand for digital upgrades.

Growth strategy and financial outlook

• Growth is driven by consistent new client wins, strong cross-sell momentum, and expansion within existing accounts, with 40% of ARR growth from new logos and 60% from expansion.

• Clients typically expand their platform investment significantly over time, with some cohorts spending up to 4x their initial ARR.

• Cross-sell success is attributed to a broad product suite, hundreds of integrations, and a platform that enables rapid adoption of new technologies.

• ARR is the primary internal metric, growing 22% in Q1, and is less affected by timing noise than revenue.

• Long-term guidance assumes steady cross-sell, high single-digit ARPU growth, and moderate user growth, with implementation timing as the main variable.

Product innovation and AI integration

• The Digital Sales & Service Platform (DSSP) is gaining traction, with DSSP clients seeing a 30% uplift in ARR and longer contract durations.

• Seamless digital experiences, enabled by integrating acquisitions, are key to winning new business as banks seek to match large competitors.

• AI is being piloted for code generation and operational efficiency, but pricing and cost models are still being refined with customers.

• AI's initial impact is expected on the revenue side, with productivity gains and efficiency improvements anticipated over the next 12–18 months.

• Regulatory and integration complexity remains a significant moat, as clients focus on leveraging AI for business outcomes rather than rebuilding core systems.