Core Insights - NuMark Credit Union has partnered with Alkami Technology to enhance its digital banking experience for retail and business members, emphasizing a commitment to innovation and user-centric solutions [1][3]. Group 1: Partnership and Technology - The collaboration will utilize Alkami's Digital Banking Platform, which includes rich online banking and ACH capabilities, aimed at providing an intuitive and streamlined interface for NuMark's members [2][4]. - Alkami's Data & Marketing Solutions will enable NuMark to leverage advanced data analytics and personalization tools, allowing for tailored financial solutions and timely insights for members [2][4]. Group 2: Strategic Goals - NuMark's mission is to enrich the financial lives of its members by delivering seamless and personalized banking experiences, which is supported by the innovative technology from Alkami [3][5]. - The partnership is expected to enhance member engagement, support financial wellness, and expand business banking capabilities, ultimately benefiting the communities served by NuMark [3][5]. Group 3: Industry Recognition - Alkami has received certification from J.D. Power in 2024 and 2025 for providing an outstanding mobile banking platform experience, highlighting its commitment to quality in digital banking solutions [6].

Core Insights - AppTech Payments Corp. has launched its CoreBanking solution integrated with the FINZEO Platform, marking its entry into digital banking and retail financial services [1][2] - The CoreBanking solution aims to enhance operational efficiency for banks, allowing them to enter new markets and eliminate outdated technologies [2][4] - AppTech anticipates significant revenue growth, projecting $40,000 in revenue in its first week and monthly revenue exceeding $500,000 by the end of 2025 [4] Product Features - CoreBanking offers a range of services including Digital Onboarding, FedWire, FedACH, Compliance, Virtual Bank Accounts, Risk Management, Ledger, FedNow, and Physical and Virtual Cards [2][4] - The integration with the FINZEO platform allows banks to leverage AppTech's existing client base for transaction fees and deposits, facilitating faster realization of benefits [3][4] Growth Strategy - AppTech's management team has been restructured, and technology has been upgraded to drive revenue growth through the last three quarters of 2025 [4] - The company is focused on expanding its client base, particularly in community banking, and plans to roll out additional partnerships and product launches in April [4]

Financial Data and Key Metrics Changes - In Q4 2024, Alkami reported a revenue growth of 26% and generated over $10 million in adjusted EBITDA [8][30] - For the full year 2024, total revenue reached $333.8 million, also reflecting a 26% year-over-year growth, with adjusted EBITDA improving to $26.9 million from a loss of $1.6 million in 2023 [30][44] - The adjusted EBITDA margin for Q4 was 11.3%, achieving the Rule of 37 [42] Business Line Data and Key Metrics Changes - Subscription revenue grew by 26.5% in 2024, accounting for nearly 96% of total revenue [30] - The annual recurring revenue (ARR) increased by 22%, ending the quarter at $356 million [32] - Add-on sales represented 45% of new bookings in 2024, up from 24% in 2021 [12] Market Data and Key Metrics Changes - Alkami ended 2024 with 272 clients and 20 million registered users, marking a user growth of approximately 2.5 million or 14% compared to the previous year [33] - The company churned less than 1% of its digital banking ARR in 2024, with expectations of maintaining a churn rate of 2% to 3% per year in the long term [34] Company Strategy and Development Direction - Alkami aims to solidify its position as a premier digital banking platform through the acquisition of MANTL, which enhances its onboarding and account opening capabilities [22][45] - The company is focused on expanding its market share in both the bank and credit union sectors, with a long-term goal of generating half of its new logo wins from each market [11][19] - Alkami's strategy includes leveraging add-on sales and improving operational efficiency through platform investments [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's momentum heading into 2025, with expectations of continued growth and improved profitability [29][51] - The acquisition of MANTL is anticipated to be accretive to adjusted EBITDA starting in 2026, with an expected internal rate of return (IRR) of about 30% [48][50] - Management highlighted the competitive pressure from megabanks and fintechs, emphasizing the need for improved digital offerings among community banks and credit unions [19][20] Other Important Information - Alkami's gross margin for Q4 2024 was reported at 63.1%, with a target of reaching 65% by 2026 [39][114] - The company ended the quarter with nearly $116 million in cash and marketable securities, and produced operating cash flow of $18.6 million, an improvement of $36.1 million compared to 2023 [43][44] - Alkami announced an amendment to its credit facility, expanding its revolver from $125 million to $225 million [45] Q&A Session Summary Question: How does MANTL compare with existing account opening solutions? - Management noted that MANTL offers a comprehensive solution that supports various account types and channels, addressing gaps in Alkami's current offerings [56][58] Question: What is embedded in the 2025 outlook regarding user growth and ARPU expansion? - Management expects organic user growth in the 14% to 15% range and ARPU expansion of 6% to 8% for 2025, with MANTL's client base contributing additional users at a lower ARPU [60][63] Question: What is the competitive environment for MANTL? - Management indicated that MANTL faces competition from outdated core providers and smaller players, but its superior user experience and integration capabilities set it apart [70][72] Question: Will MANTL's EBITDA loss include any expense synergies? - Management clarified that while MANTL is expected to be EBITDA accretive in 2026, the focus will be on revenue synergies rather than immediate cost-cutting [73][100] Question: How will cross-selling opportunities be impacted? - Management expressed confidence in cross-selling opportunities between Alkami and MANTL's client bases, given their complementary nature [108][110] Question: What is the long-term margin trajectory for gross profit margin? - Management reiterated a target of 65% gross margin by 2026, with MANTL expected to contribute positively to this margin [114]

Alkami Technology Fourth Quarter 2024 Alkami Technology, Inc. Proprietary Information. Cautionary Statement Regarding Forward-Looking Statements This presentation contains "forward-looking" statements relating to Alkami Technology, Inc.'s strategy, goals, future focus areas, and expected, possible or assumed future results, including its future cash flows and its financial outlook. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to ma ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported non-GAAP revenue of $183 million, a 13% increase year-over-year and a 5% increase sequentially [6][18] - Adjusted EBITDA for Q4 was $37.6 million, representing 20.6% of non-GAAP revenue, an improvement of approximately 630 basis points year-over-year [6][26] - Total non-GAAP revenue for the full year was $696.5 million, up 11% from the prior year [18] - Subscription revenue for the full year grew by 16%, accounting for 79% of total revenue [18][20] - Total annualized recurring revenue (ARR) grew to $824 million, up 12% year-over-year [20] - The ending backlog increased to over $2.2 billion, representing a 21% growth year-over-year [21][22] Business Line Data and Key Metrics Changes - The company achieved a record year for renewals, with renewal bookings increasing by 80% year-over-year [22][23] - In Q4, the company renewed 10% of its entire digital banking customer base [22] - Subscription net revenue retention rate ended the year at approximately 114%, up from 112% in 2023 [23] Market Data and Key Metrics Changes - The company signed 25 Tier one and enterprise deals in 2024, the most in a single year [8] - The company signed nearly twice the number of digital banking deals in Tier two and three segments compared to the previous year [9] - The fraud solutions segment was highlighted as one of the fastest-growing areas, driven by increased demand for fraud mitigation [12] Company Strategy and Development Direction - The company is optimistic about the demand environment in 2025, with a focus on expanding its subscription revenue and operational efficiencies [11][29] - The company aims to achieve a subscription revenue rule of 40 as a long-term objective [28] - The addition of Andre Mintz to the Board of Directors is expected to enhance the company's expertise in global privacy and cybersecurity [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on a favorable demand environment and strong sales momentum [31] - The company anticipates continued healthy demand for its fraud solutions and expects expansion opportunities with existing customers [12][29] - Management noted that the deregulation in the banking sector could provide tailwinds for the company's growth [60] Other Important Information - The company ended the year with cash and investments totaling $447 million, up from $408 million in the previous quarter [26] - Free cash flow for the year was $107 million, representing an 85% conversion rate as a percentage of adjusted EBITDA [26] Q&A Session Summary Question: Can you discuss the relationship pricing with Wells Fargo and its significance? - Management highlighted the success of the relationship pricing model and its deployment with major banks, indicating strong potential for future growth [34][36] Question: How does the company view the reliance on large Tier one enterprise deals versus Tier two and three? - Management indicated a balanced pipeline for 2025, expecting continued success in both Tier one and Tier two/three deals [40][42] Question: What are the biggest drivers behind the increased Total Addressable Market (TAM)? - Management pointed to growth in fraud products and the Helix business as key drivers for the TAM increase [48][51] Question: How does deregulation impact the company's strategy? - Management noted that deregulation could enhance operational efficiency for clients, providing a positive environment for the company's offerings [60][61] Question: What are the expectations for professional services revenue? - Management indicated that they do not expect a rebound in professional services revenue in the near term, citing ongoing pressures in discretionary spending [100][102]