Financial Data and Key Metrics Changes - In Q2 2025, the company achieved total revenue of $112.1 million, representing a year-over-year growth of 36% and organic growth of 28% [16][17] - Adjusted EBITDA improved to $11.9 million compared to $4.6 million in the same quarter last year [17] - Annual Recurring Revenue (ARR) increased by 32%, exiting the quarter at $424 million [18] - The company ended the quarter with a registered user growth of approximately 2.3 million, or 12% year-over-year, totaling 20.9 million registered users [18] Business Line Data and Key Metrics Changes - Subscription revenue grew by 35% in Q2, accounting for 95% of total revenue [17] - The Mantle acquisition added 39 new clients in 2025, with 14 being Alchemy digital banking clients, indicating successful cross-selling opportunities [7][8] - The company signed nine new digital banking platform clients and renewed six existing clients during the quarter [21] Market Data and Key Metrics Changes - The company reported a remaining performance obligation of approximately $1.6 billion, representing 3.7 times the live ARR and up 30% compared to the previous year [22] - The company expects to net over 300,000 users from financial institution consolidations in 2025 [20] Company Strategy and Development Direction - The company aims to integrate account opening with online banking and data marketing to enhance user experience and drive cross-sell opportunities [11][13] - The Mantle acquisition is seen as a strategic platform to create new logo relationships, with a focus on onboarding and account opening as essential innovations for attracting core deposits [10][14] - The company plans to manage the Alchemy and Mantle sales teams under one leader to leverage integrated platform capabilities [14][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment for their products, driven by the necessity for digital transformation in financial institutions [5][14] - The company anticipates continued growth in ARR and user base, with a focus on maintaining low churn rates despite M&A activities within their client base [19][20] - Management remains optimistic about achieving long-term financial objectives and driving shareholder value [28] Other Important Information - The company ended the quarter with $87 million in cash and marketable securities, having reduced its revolver by $10 million [27] - The Mantle acquisition is expected to contribute positively to adjusted EBITDA in 2026, despite being dilutive in the short term [26] Q&A Session Summary Question: What kind of starting ARPU for new logos are you seeing compared to the blended average? - Mantle adds 30% to 40% of ARR to a new logo deal, with new logos averaging around $800,000 of ARR [32][33] Question: How did the new user growth break down between new customers and existing ones? - In Q2, 25% of the 400,000 new digital users were from new implementations, while 75% were from existing clients [36] Question: Can you provide an update on the bank channel and how Mantle can improve that opportunity? - Banks under contract represent 13% of total clients, with plans to implement 16 banks on the online banking platform [39][40] Question: Can you quantify the term fees that were pulled forward? - Term fees during the quarter represented about 70% of the revenue beat, with approximately $1 million pulled forward [42] Question: What customer types are most attracted to Mantle? - The buyer for Mantle is almost any financial institution, driven by the need to attract core deposits [48] Question: How does M&A activity impact the company? - The company has benefited from M&A activity, gaining close to 500,000 net digital users over the last four years [91] Question: What is the contribution of Mantle to the backlog this quarter? - Mantle contributed just over $10 million of revenue in the quarter, slightly ahead of expectations [93]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported total revenue of $97.8 million, representing a year-over-year growth of 28.5% [23] - Adjusted EBITDA improved to $12.1 million compared to $3.8 million in the same quarter last year, marking a significant increase [23] - The company exited the quarter with an Annual Recurring Revenue (ARR) of approximately $400 million, reflecting a 33% increase year-over-year [23][24] Business Line Data and Key Metrics Changes - Subscription revenue grew by 27% in Q1 2025, accounting for 95% of total revenue [23] - The company added 36 new digital banking clients, contributing to a total of 278 live clients and 20.5 million registered users, which is a 13% increase year-over-year [24] - The revenue per user (RPU) increased by 18% to $19.74, driven by the Mantle acquisition and successful add-on sales [25] Market Data and Key Metrics Changes - The company reported a strong demand environment for digital banking, with no observed decline in demand despite macroeconomic uncertainties [6][10] - The company’s sales pipeline remains robust, with a healthy mix of new client acquisitions and renewals [25] - The Mantle acquisition is expected to enhance the company's competitive position in both bank and credit union markets, with balanced demand observed in both segments [50] Company Strategy and Development Direction - The company is focused on enhancing its product offerings in onboarding and account opening, retail and commercial functionality, user experience, and personalization [13] - A strategic development center is being established in India to increase product and engineering capacity while maintaining profitability commitments [16] - The company aims to leverage its unique financial model to strengthen its competitive position in the SaaS market [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2026 financial objectives, citing a strong implementation backlog and sales pipeline [6] - The demand for digital banking is viewed as essential for regional and community financial institutions to compete effectively [6][10] - Management remains optimistic about the future, indicating that digital banking projects are prioritized by clients despite economic uncertainties [96][100] Other Important Information - The Mantle acquisition, valued at $400 million, was completed earlier than expected and is anticipated to be accretive to adjusted EBITDA in 2026 [31][33] - The company has expanded its credit facility from $125 million to $225 million, enhancing its financial flexibility [30] Q&A Session Summary Question: Was the $5 million spend for the offshore initiative still a lighter expense in Q1? - Yes, it was a lighter expense in Q1, with the majority of the expense expected to concentrate in the third and fourth quarters of 2025 [36][37] Question: How much did Mantle contribute to the growth in revenue per user? - Mantle contributed about 1.8 to RPU this quarter, with a more normalized growth rate expected going forward [39][40] Question: What is the opportunity for cross-selling Mantle into the existing base? - Initial success has been seen with five transactions sold into the Alchemy base, and there is confidence in the cross-selling opportunity [42][43] Question: Where is the most traction being seen with the Mantle acquisition? - Balanced demand is observed in both banks and credit unions, with a focus on enhancing account opening experiences [50] Question: What would it take for banks to slow spending on digital banking projects? - It would require extraordinary dislocation for banks to halt their digital banking projects, as these are often budgeted line items [96][100]