Alkami (ALKT) 53rd Annual JPMorgan Global Technology, Media and Communications Conference summary

Market positioning and customer base

• Focuses on enabling regional banks and credit unions to compete with large institutions by providing white-labeled digital banking technology.

• Serves about 20.5 million live seats out of a 250 million seat addressable market, indicating significant growth potential.

• Most new customers are displacing legacy digital banking solutions, not in-house builds, ensuring budgeted demand.

• Aims for balanced growth between new logos (banks and credit unions) and expanding product sales to existing clients.

• Largest competitive challenge is customer inertia, not rival vendors.

Growth strategy and financial outlook

• Targets mid to high teens growth in customer additions and mid to high single digit growth in fees per user.

• User base growth is slowing as the base expands, but ARPU (average revenue per user) growth is accelerating through cross-selling more products.

• Exited Q1 with just under $405 million live ARR and $68 million ARR in backlog, with higher ARPU in new bank clients.

• RPO (remaining performance obligations) grew 20% organically in Q1, with high revenue visibility due to long-term contracts and backlog.

• 96% of revenue is subscription-based, supporting predictability and strategic investment.

Profitability and operational efficiency

• Gross margin improvement driven by more efficient implementation and cloud technology investments.

• Achieved 64.3% gross margin in Q1, nearing the 65% target a year ahead of plan.

• Maintains top-tier go-to-market efficiency, generating $1.20–$1.50 net new ARR per $1 spent on sales and marketing.

• Forecasts reaching $1 billion revenue in 4–5 years, with 65–70% gross margin and 30%+ Adjusted EBITDA margin.

• Free cash flow conversion expected to reach 92% of Adjusted EBITDA at scale.