The following is a summary of the Alkami Technology, Inc. (ALKT) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Alkami Technology exhibited strong Q1 2024 performance with a revenue growth of 27%, and total revenue of $76.1 million.

• An increase of 26% to a $303 million annual recurring revenue (ARR) was noted.

• The non-GAAP Q1 gross margin posted at 61.7%, marking significant growth from Q1 2023.

• Operating expenses for the quarter were at $43.6 million.

• Alkami anticipates an expansion of 200 basis points per year in gross margin, targeting a 65% gross margin by 2026.

Business Progress:

• Throughout Q1 2024, Alkami expanded its user base to 18.1 million - a growth of 3 million users compared to the previous year.

• The company is focusing on operational improvements and significant technological investments, making strides in application performance and broad-based observability, among others.

• Plans are underway to widen their product portfolio beyond digital banking, with various product categories leading client adoption.

• The company reported higher sales efficiencies and plans to renew more than 30 client relationships in 2024.

• Aiming to become a premier digital banking provider, Alkami is also actively competing in commercial bank RFPs and has set goals related to new client acquisitions.

• The acquisition of Segmint, Inc. has also positively influenced their sales bookings.

• Sweet spots for growth have been identified, prominently in product adoption where a wide opportunity for upselling exists, as clients are currently using only 13 out of 32 offered products.

More details: Alkami Technology IR

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