Alkami(US:ALKT)2022-05-07 03:50Financial Data and Key Metrics Changes - Alkami reported Q1 2022 revenue of $44.8 million, representing a 35% growth year-over-year, exceeding guidance by $800,000 [16] - Annual recurring revenue (ARR) increased by 32% to $177 million, with $37 million in backlog for implementation over the next 12 months [18] - Non-GAAP gross margin improved to 58% from 55% in the prior year, driven by revenue scale and cost efficiencies [20] Business Line Data and Key Metrics Changes - The company added five new logos and renewed four existing clients, with a total of 179 digital platform clients [16] - Revenue per user (RPU) grew to $13.80, up 3% compared to the prior year [17] - Subscription revenue accounted for 96% of total revenue, growing 36% year-over-year [18] Market Data and Key Metrics Changes - The total addressable market (TAM) is now nearly $11 billion, including $1 billion from the Segmint acquisition [19] - Digital user growth was driven by the implementation of financial institutions supporting 1.3 million users and an increase in client digital user adoption by 1.5 million users [17] Company Strategy and Development Direction - Alkami aims to be the digital banking provider of choice for banks while maintaining leadership with credit unions [13] - The company is focused on growing add-on sales and enhancing its platform to support clients' digital banking infrastructure [14] - Alkami plans to remain agile in M&A activities, as demonstrated by the recent acquisition of Segmint [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of loan demand and the importance of continued innovation for client success [12] - The company anticipates strong demand for digital banking innovation, which is seen as a core strategy for financial institutions [13] - Guidance for Q2 2022 includes revenue expectations of $47.5 million to $48.5 million, with a full-year revenue forecast raised to $198 million to $201 million [25][26] Other Important Information - The company ended the quarter with over $209 million in cash and marketable securities, with a net use of cash of $9 million during the quarter [23] - The Segmint acquisition was closed for $135.5 million, funded through a combination of cash and incremental term debt [24] Q&A Session Summary Question: Can you elaborate on the Segmint acquisition and cross-selling expectations? - Management highlighted the attractiveness of Segmint as a standalone product and the potential for cross-selling within the Alkami customer base, emphasizing strong interest from clients during the recent conference [28][30] Question: What was the mix of new business wins and renewals between banks and credit unions? - The majority of new logos were banks, with four out of five new clients being banks, and the client sales team contributed significantly to total contract value [31][32]