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]