Alkami Technology Inc (ALKT) 2023 Q3 法說會逐字稿

Hello, and welcome to the Alkami Third Quarter 2023 Financial Results Conference Call. My name is Betsy, and I will be your operator for today's call. (Operator Instructions) please note this event is being recorded. I would now like to turn the conference over to Steve Calk. Steve, you may begin.

您好，歡迎參加 Alkami 2023 年第三季財務業績電話會議。我叫貝特西，我將擔任您今天通話的接線生。 （操作員說明）請注意此事件正在被記錄。我現在想把會議交給史蒂夫·卡爾克。史蒂夫，你可以開始了。

Thank you, Betsy. With me on today's call are Alex Shootman, Chief Executive Officer; and Bryan Hill, Chief Financial Officer. During today's call, we may make forward-looking statements about guidance and other matters regarding our future performance. These statements are based on management's current views and expectations and are subject to various risks and uncertainties. Our actual results may be materially different.

謝謝你，貝特西。與我一起參加今天電話會議的是執行長 Alex Shootman；和財務長 Bryan Hill。在今天的電話會議中，我們可能會就有關我們未來業績的指導和其他事項發表前瞻性聲明。這些陳述是基於管理層目前的觀點和預期，並受到各種風險和不確定性的影響。我們的實際結果可能會大不相同。

For a summary of risk factors associated with our forward-looking statements, please refer to today's press release and the sections in our latest Form 10-K entitled Risk Factors and Forward-Looking Statements. The statements made during the call today are being made as of today, and we undertake no obligation to update or revise any forward-looking statements, also unless otherwise stated, financial measures discussed on this call will be on a non-GAAP basis. We believe these measures are useful to investors in the understanding of our financial results. A reconciliation of the comparable GAAP financial measures can be found in our earnings press release and in our filings with the SEC. I'd like to now turn the call over to Alex.

有關與我們的前瞻性陳述相關的風險因素的摘要，請參閱今天的新聞稿以及我們最新的 10-K 表格中題為「風險因素和前瞻性陳述」的部分。今天電話會議中所做的聲明截至今天為止，我們不承擔更新或修改任何前瞻性聲明的義務，而且除非另有說明，本次電話會議中討論的財務措施將基於非公認會計原則。我們相信這些措施有助於投資者了解我們的財務表現。可在我們的收益新聞稿和向 SEC 提交的文件中找到可比較 GAAP 財務指標的調整表。我現在想把電話轉給亞歷克斯。

Thank you, Steve, and good afternoon, everyone. The third quarter was another good quarter for Alkami as we grew revenue 27% once again ahead of our expectations. In addition, we achieved positive adjusted EBITDA 1 quarter sooner than we committed, and we are adding and keeping users at a better pace than any other digital banking provider. Over the last 12 months, we added 3.2 million Digital users to our platform. And as we approach the end of 2023, we do not expect to lose a single client off of our digital banking platform this year.

謝謝史蒂夫，大家下午好。第三季度對 Alkami 來說又是一個好季度，我們的營收成長了 27%，再次超出了我們的預期。此外，我們比我們承諾的提前 1 個季度實現了正調整 EBITDA，並且我們以比任何其他數位銀行提供者更快的速度增加和留住用戶。在過去 12 個月中，我們的平台新增了 320 萬數位用戶。隨著 2023 年底的臨近，我們預計今年不會從我們的數位銀行平台上失去任何一個客戶。

Q3 marks another quarter of progress in our plan to build Alkami into a primary provider of digital technology to banks and credit unions with healthy growth, solid profitability, a strong culture, and satisfied clients. One of the questions many of you asked me is how our clients are navigating a very dynamic macro environment. During September and the first week of October, I slept in 18 different beds as I traveled the country meeting with clients and prospects and gained a perspective on how regional banks and credit unions are thriving in today's environment.

第三季標誌著我們的計劃又取得了四分之一的進展，該計劃旨在將Alkami 打造成銀行和信用合作社數位技術的主要提供商，實現健康增長、穩健的盈利能力、強大的文化和滿意的客戶。你們中的許多人問我的問題之一是我們的客戶如何應對一個非常動態的宏觀環境。 9 月和 10 月的第一周，我在全國各地與客戶和潛在客戶會面時睡在 18 張不同的床上，了解了地區銀行和信用合作社如何在當今環境中蓬勃發展。

In addition, last week, we hosted a dozen prospects at our headquarters for exchange with members of our client advisory board and got to listen to those executives discuss their current strategies and tactics. Every conversation on the (inaudible) and in our headquarters started with some variation of the following narrative. Alex, in all my years in this business, I have never seen such a rapid change in monetary and fiscal policy.

此外，上週，我們在總部接待了十幾位潛在客戶，與我們的客戶顧問委員會成員進行交流，並聽取了這些高階主管討論他們當前的策略和策略。在（聽不清楚）和我們總部的每次談話都是從以下敘述的一些變化開始的。亞歷克斯，在我從事這個行業的這些年裡，我從未見過貨幣和財政政策如此迅速的變化。

The meetings evolved into discussions on the volatility in interest rates, the rising cost of deposits, the speed at which they're rebalancing deposits and loans, and most interestingly, the need to dust off playbooks they've not used since the mid-2000s. I had one CEO tell me, Alex, we have always talked about driving card usage and attracting direct deposits, but we really hadn't focused too much on it. She went on to say none of my staff were here the last time we had to drive deposits and we were having to teach strategies and tactics we have not used in years. I asked each CEO if this changed the way they thought about digital banking. And to a person, they told me that digital banking is a mandatory innovation in this environment.

這些會議演變成了關於利率波動、存款成本上升、存款和貸款再平衡速度的討論，最有趣的是，需要重新審視自 2000 年代中期以來就沒有使用過的策略。 。一位執行長告訴我，亞歷克斯，我們一直在談論推動信用卡使用和吸引直接存款，但我們確實沒有太多關注它。她接著說，上次我們不得不推動存款時，我的員工都不在這裡，我們必須教導我們多年來沒有使用過的策略和戰術。我問每位執行長這是否改變了他們對數位銀行的看法。他們告訴我，數位銀行是這種環境下的強制性創新。

From digital onboarding to analytics to drive card usage to tactics to encourage direct deposits and technology to fight fraud. They were continuing to invest in digital banking and even something as routine as CD rollovers is on their mind. One CEO told me Alex, we all offered short-term CDs and these products will roll over in 2024. We don't have enough people to handle them manually. We have to use digital capabilities to meet the demand. In addition to the personal meetings I conducted, we surveyed 215 FIs in September to assess their overall digital maturity by asking a series of questions related to digital adoption and investment priorities.

從數位入職到分析以推動卡片的使用，再到鼓勵直接存款的策略和打擊詐欺的技術。他們繼續投資數位銀行業務，甚至連存單展期這樣的例行公事都在他們的考慮之中。一位執行長告訴我 Alex，我們都提供短期 CD，這些產品將在 2024 年到期。我們沒有足夠的人員來手動處理它們。我們必須利用數位能力來滿足需求。除了我舉行的個人會議之外，我們還在 9 月對 215 家金融機構進行了調查，透過提出一系列與數位化採用和投資優先事項相關的問題來評估他們的整體數位成熟度。

We found the most digitally mature organizations, which also reported higher revenue growth than their peers are much more likely to say that digital banking is more important than branches or call centers. In addition, they are also much more likely to say that their top investment priority is improving customer experience technology. As one bank responded put it, from the top of the organization all the way down to the lowest levels, there's a constant reminder if there's an opportunity, digitize it.

我們發現，數位化最成熟的組織（收入成長也高於同業）更有可能表示數位銀行比分行或呼叫中心更重要。此外，他們也更有可能表示，他們的首要投資重點是改善客戶體驗技術。正如一家銀行的回應所述，從組織高層一直到最低層，都會不斷提醒您是否有機會，將其數位化。

Amidst all this change, our clients are proving to be resilient. The U.S. banking industry deposits contracted 4.8% year-over-year as the FDIC reported in June, when we evaluate our clients' data, we've seen almost a 1% increase in deposits since early July. Also since July, their user counts have increased and the percentage of users with uninsured deposits remains virtually unchanged. Our clients' strategic use of digital banking and their ability to compete in this environment mirror the demand we are seeing in our new client wins and additional products being purchased by our current clients. For example, as part of one renewal in Q3, the client added 12 new products, including data and analytics, advanced business capabilities, biometric security and card capabilities that allow them to provision digital cards.

在所有這些變化中，我們的客戶被證明具有彈性。根據 FDIC 6 月報告，美國銀行業存款年減 4.8%，當我們評估客戶數據時，我們發現自 7 月初以來存款增加了近 1%。同樣自 7 月以來，他們的用戶數量有所增加，而未投保存款的用戶比例幾乎保持不變。我們的客戶對數位銀行的策略性使用以及他們在這種環境中的競爭能力反映了我們在新客戶贏得和現有客戶購買的其他產品中看到的需求。例如，作為第三季更新的一部分，該客戶添加了 12 種新產品，包括數據和分析、高級業務功能、生物識別安全性以及允許他們配置數位卡的卡片功能。

They're not alone. We continue to see earlier client cohorts add functionality. Our 2018 and 2019 cohorts are now at 2x their initial ARR, and our 2020 cohort is already at 1.8x initial ARR. In addition to adding products, our clients continue to grow digital users faster than the overall market. In 2023, we will add more new clients and digital users to our platform than any year in our history. Our pipeline going into 2024 is the strongest ever, and we continue to deliver on the commitments we made to our clients and our investors. To our clients, we committed to invest in expanding our product portfolio so they can compete with the digital capabilities of mega banks.

他們並不孤單。我們繼續看到早期的客戶群添加了功能。我們 2018 年和 2019 年的隊列現在的 ARR 是初始 ARR 的 2 倍，而我們 2020 年的隊列已經是初始 ARR 的 1.8 倍。除了增加產品外，我們的客戶還以比整體市場更快的速度成長數位用戶。 2023 年，我們平台上新增的新客戶和數位用戶將比歷史上任何一年都要多。我們進入 2024 年的管道是有史以來最強大的，我們將繼續履行對客戶和投資者的承諾。對於我們的客戶，我們致力於投資擴大我們的產品組合，以便他們能夠與大型銀行的數位能力競爭。

Over the last 6 years, we've invested over $0.25 billion in R&D. And Alkami has consistently spent the most on R&D as a percent of revenue compared to other large companies in our market. While this percentage will moderate as revenue grows, we will continue to grow R&D to keep our platform modern and competitive. The technology we deliver today includes fraud protection, digital account opening, advanced card services, commercial business banking capabilities, and payment solutions.

在過去 6 年裡，我們在研發方面的投資超過 2.5 億美元。與我們市場上的其他大公司相比，Alkami 在研發上的支出佔收入的比例一直最高。雖然這一比例會隨著收入的成長而放緩，但我們將繼續加強研發力度，以保持我們平台的現代化和競爭力。我們今天提供的技術包括詐欺防護、數位帳戶開設、高級卡服務、商業銀行功能和支付解決方案。

At the time of our IPO in 2021, our new clients on average used 34% of our product portfolio. And today, new clients on board with over 50% of our product portfolio. This demonstrates we are not just delivering new products, but also developing the right new products. We committed to our clients that we would continuously deliver a world-class user experience for their end users. Today, we consistently hold one of the highest ratings in the App Store that may be more importantly by far the app that is most rated in our space.

2021 年我們首次公開募股時，我們的新客戶平均使用了我們產品組合的 34%。如今，新客戶使用了我們超過 50% 的產品組合。這表明我們不僅在提供新產品，而且還在開發合適的新產品。我們向客戶承諾，我們將持續為他們的最終用戶提供世界級的用戶體驗。如今，我們一直是 App Store 中評分最高的應用程式之一，更重要的是，我們是迄今為止在我們的領域中評分最高的應用程式。

One of the biggest commitments we make to our client is when we convert them from their legacy system to Alkami. This is nontrivial, as there are integrations to their back-office core systems, dozens of connections to third parties and thousands of customer accounts to convert. And usually, the entire user base moves to the Alkami platform on launch date. Our experience in launching new clients is a significant and sustainable competitive advantage. Among the many clients we launched in Q3, we accomplished a first for Alkami. We launched 3 clients in a single day. So it's not just about launching the client. It also has to be a great experience for our clients and their end users.

我們對客戶的最大承諾之一就是將他們從遺留系統轉換為 Alkami。這並非易事，因為需要與其後台核心系統整合、與第三方的數十個連接以及數千個需要轉換的客戶帳戶。通常，整個用戶群會在發布之日轉移到 Alkami 平台。我們在開拓新客戶方面的經驗是一項重要且可持續的競爭優勢。在我們第三季推出的眾多客戶中，我們為 Alkami 實現了第一名。我們一天之內就推出了 3 位客戶。所以這不僅僅是啟動客戶端。對於我們的客戶及其最終用戶來說，它也必須是一種很棒的體驗。

Gerry Agnes, who's the President and CEO of Elevations Credit Union told me, Alex implementing Alkami for our new digital banking platform has been better than any other conversion I've experienced. Over 88% of our members converted to Alkami with no assistance or intervention from our staff and our members are thrilled with the new platform. A digital banking platform must have trusted availability and performance because our clients and users rely on it for -- during critical life moments. We committed to continuously evolving our digital platform, and over the last 6 months, have made great progress in transitioning to an event-driven architecture with advanced tools for observability and automation.

Elevations Credit Union 總裁兼執行長 Gerry Agnes 告訴我，Alex 為我們新的數位銀行平台實施 Alkami 的效果比我經歷過的任何其他轉換都要好。超過 88% 的會員在沒有員工幫助或乾預的情況下轉換為 Alkami，我們的會員對新平台感到非常興奮。數位銀行平台必須具有值得信賴的可用性和效能，因為我們的客戶和用戶在生命的關鍵時刻依賴它。我們致力於不斷發展我們的數位平台，在過去 6 個月裡，我們在向具有先進可觀察性和自動化工具的事件驅動架構的過渡方面取得了巨大進展。

We are now using auto scaling, and we support 0 downtime upgrades. All of this while driving efficiency through transitioning to technologies such as PostgreSQL and Linux. Keeping our commitments to our clients has allowed us to keep our commitments to shareholders. We have consistently delivered on our growth targets while being prudent with our investments and expenses. We have delivered on a commitment to be adjusted EBITDA positive, and we have confidence in the longer-term revenue gross margin and adjusted EBITDA guidance we have provided.

我們現在使用的是自動伸縮，並且支援0停機升級。所有這些同時透過過渡到 PostgreSQL 和 Linux 等技術來提高效率。信守對客戶的承諾使我們能夠信守對股東的承諾。我們始終如一地實現了成長目標，同時對投資和支出持謹慎態度。我們已經兌現了調整後 EBITDA 為正值的承諾，並且對我們提供的長期收入毛利率和調整後 EBITDA 指導充滿信心。

In closing, we are proud of the results we delivered in the quarter and pleased with the progress we've made in 2023. I am confident in the long-term prospects for Alkami to be an indispensable technology platform for the financial services industry, a great place to work, and a reliable partner for the investment community. And now I'll hand the call to Brian to take us through the numbers.

最後，我們對本季度所取得的成果感到自豪，並對 2023 年的進展感到滿意。我對 Alkami 成為金融服務業不可或缺的技術平台的長期前景充滿信心。理想的工作場所，投資界可靠的合作夥伴。現在我將把電話轉給布萊恩，讓他帶我們了解這些數字。

Thanks, Alex, and good afternoon, everyone. During the third quarter of 2023, Alkami crossed several major milestones. First, we achieved our first quarter of positive adjusted EBITDA. This occurred 1 quarter earlier than originally expected at the beginning of 2023. Second, we increased the digital users on our digital banking platform by 1 million during the quarter. This represents the largest quarterly increase in company history, bringing us to just under 17 million digital users. And third, Alkami's remaining purchase obligation or contract backlog reached $987 million, representing 3.6x our live ARR and 31% higher than a year ago.

謝謝，亞歷克斯，大家下午好。 2023 年第三季度，Alkami 跨越了幾個重大里程碑。首先，我們第一季實現了正向調整 EBITDA。這比 2023 年初的最初預期提前了 1 個季度。其次，本季我們的數位銀行平台上的數位用戶增加了 100 萬。這是該公司歷史上最大的季度成長，使我們的數位用戶數量接近 1700 萬。第三，Alkami 的剩餘採購義務或積壓合約達到 9.87 億美元，相當於我們即時 ARR 的 3.6 倍，比一年前高出 31%。

These achievements, combined with our 2023 financial performance, evidence Alkami's success and unique position to capitalize upon the strong secular trend of digitization in the banking industry. Let me unpack an impressive quarter for you. For the third quarter of 2023, we achieved revenue of $67.7 million, representing growth of 27%, which is slightly above the high end of our financial guidance. This was driven by balanced performance across our primary revenue drivers. We implemented 11 new clients in the quarter, bringing our digital platform client count to 229. So far in 2023, we have implemented 1.3 million users at just under $23 million of ARR, both which exceed the full year of 2022.

這些成就與我們 2023 年的財務業績相結合，證明了 Alkami 的成功以及利用銀行業數位化強勁長期趨勢的獨特地位。讓我為您揭秘一個令人印象深刻的季度。 2023 年第三季度，我們實現營收 6,770 萬美元，成長 27%，略高於我們財務指導的上限。這是由我們主要收入驅動因素的平衡表現所推動的。我們在本季引進了 11 個新客戶，使我們的數位平台客戶數量達到 229 個。截至 2023 年，我們已經實現了 130 萬用戶，ARR 略低於 2,300 萬美元，均超過 2022 年全年。

Based on our near-term visibility, we expect to exceed last year's implementation production by 35% and 30% for digital users and ARR. We now have 35 new clients in our implementation backlog representing 1.1 million digital users. We exited the quarter with 16.9 million registered users live on our digital banking platform of 3.2 million or 23% compared to last year. Over the last 12 months, digital user growth continues to be driven by 2 areas. First, we implemented 39 financial institutions supporting 1.7 million digital users.

根據我們的近期能見度，我們預計數位用戶和 ARR 的實施產量將分別比去年分別增加 35% 和 30%。現在，我們的實施待辦事項中有 35 個新客戶，代表 110 萬數位使用者。本季結束時，我們的數位銀行平台上的註冊用戶數量為 1,690 萬，與去年相比，註冊用戶數量為 320 萬，即 23%。在過去 12 個月中，數位用戶的成長繼續由兩個領域推動。首先，我們建立了 39 家金融機構，支援 170 萬數位用戶。

Second, our existing clients increased their digital user accounts by 1.4 million users, demonstrating an ability to drive client growth and digital adoption during a more challenging economic environment. This underscores the importance of the digital channel. Over the last 12 months, we have not experienced any client churn from our digital banking platform, and we expect the same for the full year 2023.

其次，我們現有客戶的數位用戶帳戶增加了 140 萬用戶，這表明我們有能力在更具挑戰性的經濟環境中推動客戶成長和數位化採用。這凸顯了數位管道的重要性。在過去 12 個月裡，我們的數位銀行平台沒有任何客戶流失，我們預計 2023 年全年也會出現同樣的情況。

We ended the quarter with an RPU of $16.28, which is 5% higher than last year, driven by add-on sales success and the addition of new clients who tend to onboard with a higher average RPU. Subscription revenue grew 28% compared to the prior year quarter and represents approximately 96% of total revenue. We increased ARR by 29% and exited the third quarter at $275 million. In addition, we currently have approximately $42 million of ARR in backlog for implementation, most likely to occur over the next 12 months. We continue to see healthy demand across our product portfolio. So far in 2023, we have signed 23 new digital banking platform clients, of which 7 were signed during the third quarter.

本季末，我們的 RPU 為 16.28 美元，比去年高出 5%，這得益於附加銷售的成功以及傾向於平均 RPU 更高的新客戶的增加。訂閱收入比去年同期成長 28%，約佔總營收的 96%。我們將 ARR 提高了 29%，第三季達到 2.75 億美元。此外，我們目前還有大約 4,200 萬美元的 ARR 待實施積壓，很可能在未來 12 個月內發生。我們繼續看到我們的產品組合的健康需求。 2023年迄今，我們已簽約23家新的數位銀行平台客戶，其中7家是在第三季簽約的。

Our new client wins reflect solid representation from banks with 7 signed so far in 2023. We Presently, based on the strength of our sales pipeline and visibility into Q4 digital banking platform decisions, we expect the fourth quarter to be a strong quarter for new client wins. Our add-on sales success continues to yield results, representing 33% of total new sales for the first 3 quarters of 2023. In addition to add-on sales, our client sales team is responsible for client contract renewals.

我們贏得的新客戶反映了銀行的堅實代表性，截至2023 年已簽署了7 個客戶。目前，根據我們銷售管道的實力和對第四季度數位銀行平台決策的了解，我們預計第四季度將是新客戶的強勁季度獲勝。我們的附加銷售成功持續取得成果，佔 2023 年前 3 季新銷售總額的 33%。除了附加銷售之外，我們的客戶銷售團隊還負責客戶合約續約。

During the first 3 quarters of 2023, we renewed 11 client relationships where we raised the ARR run rate 9% through a combination of new product sales and committed client growth. In total, we expect to renew over 20 clients during 2023.

在 2023 年前 3 季度，我們續簽了 11 個客戶關係，透過新產品銷售和承諾的客戶成長相結合，我們將 ARR 運行率提高了 9%。總的來說，我們預計 2023 年將續約 20 多個客戶。

Now turning to gross margin and profitability. For the third quarter of 2023, non-GAAP gross margin was 59%, representing 190 basis points of expansion when compared to the prior year quarter. Improvement in our gross margin results from operating leverage across our post-sale operations, such as our implementation, client success, and site reliability engineering teams, offset by a higher mix of revenue from our third-party IP partners. We are scaling post-sale operations while delivering the previously mentioned higher level of output. As a reminder, our 2026 target operating model is a non-GAAP gross margin of 65% as we continue to scale our revenue.

現在轉向毛利率和獲利能力。 2023 年第三季度，非 GAAP 毛利率為 59%，較上年同期成長 190 個基點。我們毛利率的提高得益於我們售後業務的營運槓桿，例如我們的實施、客戶成功和站點可靠性工程團隊，但被我們第三方 IP 合作夥伴更高的收入組合所抵消。我們正在擴大售後業務，同時提供前面提到的更高水準的產出。提醒一下，隨著我們繼續擴大收入，我們 2026 年的目標營運模式是非 GAAP 毛利率為 65%。

Moving to operating expenses. For the third quarter of 2023, non-GAAP R&D expense was $17.6 million or 26% of revenue, 240 basis points lower than the year ago quarter. Margin expansion was primarily driven by revenue scale as we've increased R&D expenses at a slower pace than our revenue growth. However, we are achieving operational scale while investing in our platform to drive future efficiency, best-in-class reliability, and innovate new products and functionality. Our target operating model is to leverage R&D to 20% of revenue, while we continue to invest and expand our platform.

轉向營運費用。 2023 年第三季度，非 GAAP 研發費用為 1,760 萬美元，佔營收的 26%，比去年同期下降 240 個基點。利潤率擴張主要是由收入規模推動的，因為我們增加研發費用的速度低於收入成長的速度。然而，我們正在實現營運規模，同時投資我們的平台，以提高未來的效率、一流的可靠性以及創新新產品和功能。我們的目標營運模式是將研發佔營收的 20%，同時繼續投資並擴展我們的平台。

Non-GAAP sales and marketing expenses were $10 million or 15% of revenue, approximately 130 basis points lower than the prior year. We continue to achieve a high level of sales team productivity and go-to-market efficiency and matched by many high-growth SaaS companies. we expect to maintain or slightly improve our go-to-market efficiency as we scale the business and gain market share. Non-GAAP general and administrative expense was $11.9 million or 18% of revenue.

非 GAAP 銷售和行銷費用為 1,000 萬美元，佔收入的 15%，比前一年減少約 130 個基點。我們繼續實現高水準的銷售團隊生產力和進入市場效率，並與許多高成長的 SaaS 公司相媲美。隨著我們擴大業務並獲得市場份額，我們預計將保持或略微提高我們的上市效率。非 GAAP 一般及管理費用為 1,190 萬美元，佔營收的 18%。

In the prior year quarter, G&A was approximately 22% of revenue. The margin expansion is primarily attributable to revenue scale, as we closely manage G&A expenses, we expect to achieve further leverage as a percentage of revenue as we move towards our profitability objectives. Our adjusted EBITDA for the third quarter was $826,000, which is over $1 million better than the high end of our expectations and over a $5 million improvement when compared to the prior year quarter. We are very pleased to have crossed adjusted EBITDA positive a quarter earlier than originally expected at the beginning of the year. We believe this demonstrates the leverage afforded by our financial model as well as the trajectory of our business. And as a reminder, we have established a 2026 adjusted EBITDA margin objective of 20%. We expect our path to 20% will occur at a pace of roughly 700 basis points of adjusted EBITDA margin expansion each year.

去年同期，G&A 約佔營收的 22%。利潤率的擴張主要歸因於收入規模，因為我們密切管理一般及行政費用，我們預計在實現盈利目標的過程中，槓桿率將進一步達到收入的百分比。我們第三季調整後的 EBITDA 為 826,000 美元，比我們預期的上限高出 100 萬美元以上，與去年同期相比增加了 500 萬美元以上。我們很高興能夠比年初的最初預期提前一個季度實現調整後 EBITDA 正值。我們相信，這證明了我們的財務模式以及我們業務軌跡所提供的槓桿作用。謹此提醒，我們已將 2026 年調整後 EBITDA 利潤率目標定為 20%。我們預計，每年調整後的 EBITDA 利潤率將擴張約 700 個基點，達到 20%。

Now moving on to the balance sheet. We ended the quarter with just over $178 million of cash and marketable securities and just under $83 million of debt. One final item on our third quarter results. In addition to crossing into positive adjusted EBITDA, we are reporting positive operating cash flow of approximately $3 million and free cash flow of $1.5 million.

現在轉向資產負債表。本季末，我們的現金和有價證券略高於 1.78 億美元，債務略低於 8,300 萬美元。關於我們第三季業績的最後一項。除了調整後的正 EBITDA 之外，我們還報告了約 300 萬美元的正營運現金流和 150 萬美元的自由現金流。

Now turning to guidance. For the fourth quarter of 2023, we are providing guidance for revenue in the range of $70.5 million to $71.5 million, representing growth of 27% to 29%. And adjusted EBITDA of $2.5 million to $3.0 million. For full year 2023, we are raising our revenue guidance to a range of $264 million to $265 million, representing growth of 29% to 30% and an adjusted EBITDA loss of $2.1 million to $1.6 million. This compares to an adjusted EBITDA loss of $17.6 million for the full year of 2022.

現在轉向指導。對於 2023 年第四季度，我們預計營收在 7,050 萬美元至 7,150 萬美元之間，成長 27% 至 29%。調整後的 EBITDA 為 250 萬美元至 300 萬美元。對於 2023 年全年，我們將營收指引提高至 2.64 億美元至 2.65 億美元，成長 29% 至 30%，調整後 EBITDA 損失為 210 萬美元至 160 萬美元。相較之下，2022 年全年調整後 EBITDA 虧損為 1,760 萬美元。

In closing, we remain confident that we are well positioned to continue on the growth path we laid out over 2 years ago. During the last year, the resiliency of our model has been tested by industry and macroeconomic factors, and we have continued to deliver both for our clients and our shareholders. We are carrying strong momentum into the fourth quarter, and we look forward to delivering another great year in 2024. With that, I'll hand the call to the operator for questions.

最後，我們仍然相信，我們有能力繼續沿著兩年多前規劃的成長道路前進。去年，我們模型的彈性受到了行業和宏觀經濟因素的考驗，我們繼續為客戶和股東提供服務。我們在第四季保持強勁勢頭，並期待在 2024 年再創輝煌。接下來，我會將電話轉交給營運商詢問問題。

(Operator Instructions) The first question today comes from Bob Napoli with William Blair.

（操作員說明）今天的第一個問題來自鮑勃·納波利（Bob Napoli）和威廉·布萊爾（William Blair）。

Thank you. Impressive momentum. Appreciate the guidance and the trends and EBITDA margin expansion, which obviously begs the question to get the kind of growth that you have and the momentum you have while driving that operating leverage. What are you giving up on the growth side or on the technology development side expanding 700 basis points a year is pretty dramatic. So appreciate any color around that. .

謝謝。氣勢令人印象深刻。感謝指導、趨勢以及 EBITDA 利潤率擴張，這顯然引出了一個問題，在推動營運槓桿的同時獲得什麼樣的成長和動力。你在成長方面或技術開發方面放棄了什麼，每年擴張 700 個基點是相當戲劇性的。所以欣賞周圍的任何顏色。 。

Bob, this is Alex. I don't feel like we're giving anything up in terms of our ability to grow the business in the future. We are -- we're pleased with a lot of the investments that we're making in the platform, and we've got a lot of visibility on how those investments turn into leverage as the company grows. And we're also pleased with the leverage that we're beginning to get out of the implementation teams and the productivity that we're getting out of the implementation teams. So we don't feel like we're giving anything up in terms of our ability to serve our customers and grow with the guidance that we've provided with to you all.

鮑勃，這是亞歷克斯。我不認為我們會放棄任何未來發展業務的能力。我們對在該平台上進行的大量投資感到滿意，並且隨著公司的發展，我們對這些投資如何轉化為槓桿有很多了解。我們也對我們開始從實施團隊中獲得的影響力以及我們從實施團隊中獲得的生產力感到滿意。因此，我們不認為我們會放棄任何服務客戶的能力，並在我們為大家提供的指導下成長。

And Bob, I'll just add a couple of more comments to Alex's statement. I mean the beauty of our financial model is it provides visibility that allows us to invest and know when to invest and where to invest. So what I mean by that is we can grow our research and developments, our engineering team, our product management teams, just at the same pace as revenue, and we'll scale that organization. Sales and marketing. Again, we really have a best-in-class sales efficiency. We deliver about $1.60 in ARR for every dollar of sales and marketing spend. there are very few SaaS companies that you'll find that are delivering a sales efficiency at that level.

鮑勃，我將在亞歷克斯的聲明中添加一些評論。我的意思是，我們的財務模型的美妙之處在於它提供了可見性，使我們能夠投資並知道何時投資以及在哪裡投資。所以我的意思是，我們可以以與收入相同的速度發展我們的研發、工程團隊、產品管理團隊，並且我們將擴大組織的規模。銷售和行銷。再說一次，我們確實擁有一流的銷售效率。每 1 美元的銷售和行銷支出，我們帶來約 1.60 美元的 ARR。您會發現很少有 SaaS 公司能夠提供如此程度的銷售效率。

And then when you look at G&A, coming out of our IPO now, it's been a couple of years. We've really made the necessary investments within G&A. So now you'll see some reasonable growth with the business between 7% to 9% a year over the next 3 to 4 years. And so we'll continue to scale G&A at the level that we've been scaling it during 2023. I mean for the quarter, we are 10 percentage points or 1,000 basis points of adjusted EBITDA margin expansion, which, again, that just speaks to the leverage in the model, the visibility that we have that allows us to invest where necessary.

然後當你看看 G&A 時，我們的 IPO 已經過去了幾年了。我們確實在 G&A 方面進行了必要的投資。因此，現在您將看到業務在未來 3 到 4 年內實現每年 7% 到 9% 的合理成長。因此，我們將繼續按照 2023 年期間的水平擴大 G&A。我的意思是，在本季度，我們調整後 EBITDA 利潤率擴張了 10 個百分點或 1,000 個基點，這再次說明了這一點模型中的槓桿作用，我們擁有的可見性，使我們能夠在必要時進行投資。

Appreciate that. And then just a follow-up on the number of new customers that you're adding, maybe has the win rate -- I mean, obviously, you haven't lost any customers. So has the win rate improved, what's driving the, I guess, the acceleration in the customer additions? And what kind of success are you having with banks.

感謝。然後，只要追蹤您添加的新客戶數量，也許就有獲勝率——我的意思是，顯然，您沒有失去任何客戶。那麼，贏率是否有所提高？我猜是什麼推動了客戶增加的加速？您在銀行方面取得了哪些成功？

Yes. Our win rate remains steady. We were pleased with the 7 new customers that we signed in the quarter and then the additional 4 new customers that we signed in the week or so after the quarter 2 credit unions and 2 banks. So we're pleased with the new logos that we're winning and our win rates remain high in the credit union space. I'll say we've got a mixed blessing in the bank space.

是的。我們的勝率保持穩定。我們對本季簽署的 7 位新客戶以及在第 2 季信用合作社和 2 家銀行之後的一周左右簽署的另外 4 位新客戶感到滿意。因此，我們對我們贏得的新徽標感到滿意，並且我們在信用合作社領域的獲勝率仍然很高。我想說，我們在銀行領域的發展可謂是喜憂參半。

We are -- the good news for us is that we are being invited to more opportunities and I think we may have mentioned this in the past earnings call, where we had high win rates in banks, but we weren't being invited to that many opportunities. So we are being invited to more opportunities that results for us right now is our win rate being slightly less in banks than it is in credit unions. But for us, that's really a bit of good news because we wanted our participation rate in banks to go up.

對我們來說，好消息是我們被邀請獲得更多機會，我想我們可能在過去的財報電話會議上提到過這一點，當時我們在銀行的勝率很高，但我們沒有被邀請參加。很多機會。因此，我們被邀請獲得更多機會，目前我們在銀行的勝率略低於信用合作社。但對我們來說，這確實是個好消息，因為我們希望提高銀行參與率。

The next question comes from Andrew Schmidt with Citi Global.

下一個問題來自花旗全球的安德魯·施密特。

This is [David Bailin] for Andrew Schmidt. Can you guys speak in more detail regarding the cross-sell progress, what products you're seeing the most strength right now?

我是安德魯·施密特的[大衛·貝林]。可以更詳細地談談交叉銷售的進度嗎？你們現在看到哪些產品最有實力？

Yes. So we've mentioned this a couple of times, but we created our client sales team in 2019. And once we created that team, they're responsible for 2 primary functions. One is cross-sell into the base and second is to renew new clients. When we renew a client at least in 2023, what we're seeing is 3 to 4 additional products that are being taken upon renewal. So, that is a great opportunity to cross-sell into the bases when renewal occurs.

是的。我們已經多次提到這一點，但我們在 2019 年創建了客戶銷售團隊。一旦我們創建了該團隊，他們就負責 2 個主要職能。一是對基礎進行交叉銷售，二是更新新客戶。當我們至少在 2023 年續約客戶時，我們會看到續約時會額外購買 3 到 4 個產品。因此，這是在續訂時向基地進行交叉銷售的絕佳機會。

But we're not just dependent upon the renewal cycle. And what we're seeing from our client sales team is we're seeing a lot of progress in cross-selling our fraud and security products, our money movement products and our client service products. That's where we're seeing the most traction from that team. In 2023, that team has represented 33%, 34% of total sales last year, that was a comparable amount as a percentage of total sales. 2 years ago, it was less than 15% of total sales. So we're seeing a lot of momentum in progress within that function.

但我們不僅僅依賴更新周期。我們從客戶銷售團隊看到的是，我們在交叉銷售詐欺和安全產品、資金流動產品和客戶服務產品方面取得了很大進展。這就是我們看到該團隊最具吸引力的地方。到 2023 年，該團隊分別佔去年總銷售額的 33%、34%，與佔總銷售額的百分比相當。 2年前，它還不到總銷售額的15%。因此，我們看到該職能部門正在取得巨大進展。

What I would just add is we've seen some -- it's nice to have the product portfolio that we have because given the dynamics of the market, we've seen some shift in what the customers are buying based upon their shifting strategies and tactics. So as Brian mentioned, right now, for example, anything around fraud management and advanced card capabilities, which gives people the ability to provision and issue digital cards. That is -- got a lot of interest, whereas if you think about maybe a couple of years ago, some things around financial wellness might have strong interest. So that's the nice thing about our product portfolio is the customers change their strategies and tactics to manage the big shift in interest rates and fiscal policy that's occurred with the federal government, we've got a product portfolio that allows us to shift and sell them what they need.

我想補充的是，我們已經看到了一些——很高興擁有我們擁有的產品組合，因為考慮到市場的動態，我們已經看到客戶根據他們不斷變化的戰略和戰術而購買的東西發生了一些變化。正如布萊恩所提到的，例如，現在圍繞詐欺管理和高級卡功能的任何事情，使人們能夠提供和發行數位卡。也就是說——引起了極大的興趣，而如果你想想幾年前，圍繞財務健康的一些事情可能會引起強烈的興趣。因此，我們的產品組合的好處是客戶可以改變他們的策略和策略來管理聯邦政府發生的利率和財政政策的重大轉變，我們擁有一個產品組合，允許我們轉移和銷售它們他們需要什麼。

The next question comes from Sam Salvas with Needham & Co.

下一個問題來自 Needham & Co. 的 Sam Salvas。

Congrats on the adjusted EBITDA positive this quarter. Could you guys just talk a little bit about how customer conversations have changed from last quarter, if they have at all? And maybe just talk about the broader demand environment a little bit more and how you guys feel as we start heading into 2024 soon?

恭喜本季調整後 EBITDA 為正值。你們能否簡單談談客戶對話與上季相比有何變化（如果有的話）？也許只是多談談更廣泛的需求環境，以及當我們即將進入 2024 年時你們有何感受？

This is Alex. As I mentioned in my prepared remarks, personally, I've spent a lot of time with customers and prospects during Q3 because I wanted to understand the same thing that you're asking. And they're having to change their business strategies and tactics because of the shift in the interest rate environment and really the need to attract more deposits. And so the conversation has moved to what can we do digitally to attract deposits. What can we do digitally to do things like promote direct deposits? What can we do digitally to market CDs to market, money market accounts?

這是亞歷克斯。正如我在準備好的演講中提到的，就我個人而言，我在第三季度花了很多時間與客戶和潛在客戶打交道，因為我想了解您所問的相同的事情。由於利率環境的變化以及吸引更多存款的真正需要，他們必須改變其業務策略和策略。因此，話題轉向了我們可以採取哪些數位化措施來吸引存款。我們可以透過數位方式做些什麼來促進直接存款等？我們可以採取哪些措施以數位方式將 CD 推銷到市場、貨幣市場帳戶？

So all of that has shifted. What really hasn't shifted is the commitment to the digital channel. In most of our customers, it's the most important channel that they have, and they are leveraging it to try to attack some of the things that I just talked about. So there's no discussion where people are saying, I'm not going to invest in a digital banking channel. That would be like airlines saying, I'm not going to have pilots or flight attendants or mechanics. It's just -- it's part of doing business. What's changed is how can I use digital to work on the business challenges that I have right now.

所以所有這一切都改變了。真正沒有改變的是對數位管道的承諾。對於我們的大多數客戶來說，這是他們擁有的最重要的管道，他們正在利用它來嘗試攻擊我剛才談到的一些事情。因此，沒有人說我不會投資數位銀行管道。這就像航空公司說的那樣，我不會擁有飛行員、空服員或機械師。這只是——這是做生意的一部分。改變的是我如何利用數位技術來應對目前面臨的業務挑戰。

Got it. That's helpful. And then just a quick follow-up. Good to see the 7 new logos signed this quarter. Could you guys just talk a little bit more about those wins you guys had and maybe any commentary into the size of these companies? Just trying to get a sense for, are you guys starting to try and go after some larger FIs out there? Or is it more just playing in your sweet spot right now?

知道了。這很有幫助。然後進行快速跟進。很高興看到本季簽署了 7 個新徽標。你們能多談談你們所取得的勝利以及對這些公司規模的任何評論嗎？只是想了解一下，你們是否開始嘗試追隨一些較大的金融機構？或者現在只是在你的最佳位置上玩耍？

Well, we continue to play in our sweet spot that tends to be the larger FIs in terms of average user per FI. Keep in mind what feeds our revenue model is the number of digital users. And so we average 72,000 digital users per FI for the 229 live clients that we have and the next closest competitor to us is in kind of the high 50s, low 60s than thousands in terms of per average. So we're already focused, we believe, on the top 2,000 financial institutions lends us to the larger financial institutions. What we've seen so far this year is very similar sized FIs. We've had a few over 100,000 digital users. Last quarter, we signed our largest bank to date. So we're pleased with the success. We're pleased with the demand that (technical difficulty).

好吧，我們繼續在我們的最佳位置發揮作用，就每個金融機構的平均用戶數而言，往往是較大的金融機構。請記住，數位用戶的數量是我們收入模式的基礎。因此，我們擁有 229 個即時客戶，每個 FI 平均有 72,000 名數位用戶，而距離我們最近的競爭對手的平均數位用戶數量為 50 多歲，60 多歲。因此，我們相信，我們已經將重點放在了 2,000 家頂級金融機構上，這為我們提供了向大型金融機構提供的貸款。今年到目前為止，我們所看到的金融機構規模非常相似。我們已經擁有超過 10 萬名數位用戶。上季度，我們簽署了迄今為止最大的銀行。所以我們對成功感到高興。我們對這個需求（技術難度）感到滿意。

Looks like we've lost connection with our speakers. Please hold while we reconnect. Ladies and gentlemen, thank you very much for your patience. We've reconnected with our speakers.

看起來我們與揚聲器失去了連接。請稍候，我們將重新連線。女士們先生們，非常感謝你們的耐心等待。我們已與揚聲器重新建立聯繫。

Operator, we can move to the next question in the queue.

接線員，我們可以轉到佇列中的下一個問題。

Unless there was a follow-up on that.

除非有後續行動。

The next question comes from Adam Hotchkiss with Goldman Sachs.

下一個問題來自高盛的 Adam Hotchkiss。

I guess when you think about where you are today versus the beginning of the year, how much momentum would you say has been driven by an inflecting top of funnel versus an improved pipeline conversion rate. I think we're just trying to get a sense for whether this is more an influx of interest on the back of the rate environment and some of the tech investments you've made versus the historical top up on a just converting at a higher rate than you've seen historically. Any color on that would be helpful.

我想，當您考慮今天與年初的情況時，您會說有多少動力是由漏斗頂部的彎曲與渠道轉換率的提高所驅動的。我認為我們只是想了解這是否更多是利率環境和您所做的一些技術投資背後的利息湧入，而不是歷史上僅以更高利率轉換的充值比你在歷史上看到的還要多。任何顏色都會有幫助。

Yes. This is Alex. What I would say is we -- the demand from the credit union side of the market is in line with what we consistently experience. And then if we think about layering on top of that, the demand from the bank side of the market has picked up compared to the same time last year. So if I just drew a graph of pipeline interest, if I just used something like that, pretty consistent on the credit union market, and then add to that higher demand from the bank market than this time last year.

是的。這是亞歷克斯。我想說的是，我們——市場信用合作社方面的需求與我們一貫的經驗是一致的。如果我們考慮到這一點，那麼與去年同期相比，市場銀行的需求有所回升。因此，如果我只是畫一張管道利息圖，如果我只是使用類似的東西，在信用合作社市場上非常一致，然後加上銀行市場比去年同期更高的需求。

And Adam, the demand on the bank side of the market is really from us being more active in the bank market being -- our product being more prepared our road map around the core integrations that are necessary for us to be competitive in the bank market and then a deliberate strategy around creating more market awareness. And that has resulted in a sales pipeline now that's 40% of our total sales pipeline related to banks.

亞當，市場銀行方面的需求實際上來自於我們在銀行市場上更加活躍——我們的產品正在為我們圍繞核心集成的路線圖做好準備，這對於我們在銀行市場上具有競爭力是必要的然後圍繞提高市場意識制定深思熟慮的策略。現在，我們的銷售管道中有 40% 與銀行相關。

Got it. That's really helpful. And I guess just to follow up on that point. When you think about being invited more bank RFP's point, would you say that's a function of just relative awareness? Is that folks from referenceability getting a sense for your capabilities versus some of your competitors? I know some of them call out having done many conversions off of some of the legacy core providers before. Just curious what in that RFP process with banks, some of the core differentiators you hear from customers on the Alkami value proposition and how that's changed?

知道了。這真的很有幫助。我想只是為了跟進這一點。當您想到被邀請更多銀行 RFP 的觀點時，您會說這只是相對意識的作用嗎？那些通過參考資料的人是否了解您與某些競爭對手的能力？我知道他們中的一些人聲稱之前已經對一些遺留核心提供者進行了許多轉換。只是好奇在與銀行的 RFP 流程中，您從客戶那裡聽到的關於 Alkami 價值主張的一些核心差異化因素是什麼，以及這是如何改變的？

This is Alex. I think it's 2 things. First of all, banks are realizing that their commercial customers are made up of people and that as the pressure has, as the pressure has increased for anybody that serves a consumer market to deliver a really great digital experience, they're realizing that their commercial accounts, once again being made up of people they have to deliver a really great digital experience, and that's what Alkami is known for. So that certainly is wind at our back. We are getting more customer -- more bank customers live on our platform. So that helps from a referenceability standpoint. And then those 2 things together create awareness that Alkami is an option that people should look at if they're a bank and they're considering making a digital transformation.

這是亞歷克斯。我認為這是兩件事。首先，銀行意識到他們的商業客戶是由人組成的，隨著壓力的增加，隨著服務於消費市場的任何人提供真正出色的數位體驗的壓力的增加，他們意識到他們的商業客戶帳戶再次由人員組成，他們必須提供真正出色的數位體驗，這就是Alkami 的出名之處。所以這肯定是我們背後的風。我們正在吸引更多的客戶—更多的銀行客戶居住在我們的平台上。因此，從參考性的角度來看，這很有幫助。然後這兩件事一起讓人們意識到，如果人們是一家銀行並且正在考慮數位轉型，那麼 Alkami 是一個應該考慮的選擇。

The next question comes from Pat Walravens with JMP.

下一個問題來自 JMP 的 Pat Walravens。

Great. And let me add my congratulations. And so I know you're not at the point yet where you're ready to give guidance for 2024. But Bryan, any key points you want us to keep in mind as we think about that?

偉大的。讓我表達我的祝賀。所以我知道你還沒有準備好為 2024 年提供指導。但 Bryan，你希望我們在考慮這個問題時牢記任何關鍵點嗎？

Pat, we'll provide guidance for 2024 official guidance in February, late February, when we announced Q4. I think the key point, though, is based on the guidance that we provided for Q4 of 2023, what you can what you can derive from that is an accelerating revenue growth rate from Q3 of 2023. So a growth rate in the 28%, 29% range versus us delivering at 27%. And in Q3 of this year. Second, what we have stated throughout the year is an expectation of being just right at 60% gross margin in Q4 of 2023.

帕特，我們將在 2 月、2 月底宣布第四季時提供 2024 年官方指引。不過，我認為關鍵點是基於我們為 2023 年第四季提供的指導，您可以從中得到什麼，即從 2023 年第三季開始營收成長率加快。因此，成長率為 28%， 29% 的範圍，而我們的交付範圍為27%。今年第三季。其次，我們全年所表示的是，預計 2023 年第四季毛利率將達到 60%。

So you can see us building our gross margin from that as we move towards 2024. And in terms of visibility, I would expect once we exit Q4 of this year, we'll still have the same level of visibility in terms of a backlog of about 12 months of ARR to be implemented over the next year.

因此，隨著我們邁向 2024 年，您可以看到我們的毛利率不斷提高。就可見性而言，我預計一旦我們退出今年第四季度，我們在積壓訂單方面仍將具有相同水平的可見性明年將實施約12 個月的ARR。

All right. That's super helpful. And then Alex, for you sort of the same themes. So what are the sort of the top 2 or 3 things that you're going to be most focused on for 2024?

好的。這非常有幫助。然後亞歷克斯，給你一些相同的主題。那麼 2024 年您最關注的前 2 或 3 件事是什麼？

Well, certainly continuing the progress that we're making in the bank market that's pretty critical for us. And so that is the continued build-out of the product capabilities, the skills in the organization, the number of cores that we're integrating -- integrated into getting the signed bank customers live with an excellent experience and referenceability. So that's pretty key. The -- creating capabilities in the platform itself that start to create distance between us and any other digital banking competitor in terms of the flexibility of the platform in terms of the telemetry that we have coming out of the platform in terms of the extensibility of the platform, that will clearly be a priority for us.

嗯，當然要繼續我們在銀行市場的進展，這對我們來說非常重要。因此，這就是我們正在整合的產品功能、組織技能和核心數量的持續建構——整合到讓簽約銀行客戶獲得卓越的體驗和參考性。所以這是非常關鍵的。 - 在平臺本身中創建的功能開始在我們和任何其他數位銀行競爭對手之間拉開距離，在平台的靈活性方面，在我們從平台中得出的遙測方面，在可擴展性方面。平台，這顯然將是我們的首要任務。

And then really, Pat, we're successful because we got a bunch of people that like working at Alkami and like serving our clients and doing a good job for them. And so we have to continue to build Alkami into a place that people want to come to, and people want to work and they want to be proud of their work and be passionate about what they're doing.

事實上，帕特，我們之所以成功，是因為我們有一群喜歡在 Alkami 工作、喜歡為我們的客戶服務並為他們做好工作的人。因此，我們必須繼續將阿爾卡米打造成一個人們想要來的地方，人們想要工作，他們想要為自己的工作感到自豪，並對他們正在做的事情充滿熱情。

The next question comes from Jacob Stephan with Lake Street Capital Markets.

下一個問題來自 Lake Street Capital Markets 的 Jacob Stephan。

I just want to add my congrats on the quarter as well here. Maybe help me kind of understand the implementation backlog here. So 35 new clients and add on sales orders. So the 35 new clients at down quarter-over-quarter, but ARR is not down as much as a percentage. So basically, is there a higher mix of kind of bank customers in there, versus the credit union side?

我也想在此對本季表示祝賀。也許可以幫助我理解這裡的實施積壓。新增 35 位客戶並增加銷售訂單。因此，35 個新客戶季減，但 ARR 下降幅度並不大。那麼基本上，與信用合作社方面相比，那裡的銀行客戶類型是否更高？

No. I mean, in our new logo or client win backlog of the 35, we have roughly 14 of those are banks, the banks carry an RPU of $30. So as we've always indicated banks tend to carry a higher RPU, the 21 credit unions that are included in the backlog are around $23 of RPU. The ARR is split fairly evenly between the 2 cohorts within the backlog. So it's very similar. Nothing -- I would not look at our backlog and suggest that the mix is significantly different than what it's been over the last several quarters.

不，我的意思是，在我們的新標誌或贏得的 35 個客戶積壓中，我們大約有 14 個是銀行，這些銀行的 RPU 為 30 美元。因此，正如我們一直指出的那樣，銀行往往持有較高的 RPU，積壓訂單中包含的 21 家信用合作社的 RPU 約為 23 美元。 ARR 在待辦事項中的 2 個群組之間相當平均地分配。所以它非常相似。沒什麼——我不會在查看我們的積壓訂單後認為，這種組合與過去幾季的情況有很大不同。

Okay. That's helpful. And then maybe just kind of talk about the kind of technological upgrade cycle of banks versus credit unions. Do you see banks upgrading quicker, adding new solutions quicker than credit union side? Or how can we think about that?

好的。這很有幫助。然後也許只是談論銀行與信用合作社的技術升級週期。您是否認為銀行升級速度更快，增加新解決方案的速度比信用合作社更快？或者說我們該如何思考這個問題呢？

Yes. There's really -- it's not a materially different cycle. They're in -- they're both in long-term contracts. They both start evaluating different options a couple of years before the -- I mean if you think about a decision process. If you are ending a contract, you'd want to give yourself some cushion of making sure you're live on something new before you end that contract. Then you probably build yourself a 9- to 12-month implementation cycle and then you build yourself, I don't know, 6-, 9-month decision cycle. And so that's not materially different between a bank and a credit union.

是的。這確實是一個本質上不同的周期。他們都簽訂了長期合約。他們都在幾年前開始評估不同的選擇——我的意思是如果你考慮決策過程。如果您要終止合同，您需要給自己一些緩衝，以確保在終止合同之前您可以依靠新的東西生活。然後你可能會為自己建立一個 9 到 12 個月的實施週期，然後你自己建立一個（我不知道）6、9 個月的決策週期。因此，銀行和信用合作社之間並沒有本質上的差異。

I think the difference -- you didn't really ask this, but there's a difference in the implementation cycle because on a credit union, it's predominantly retail. And so the credit union would be thinking about, okay, I'm going to go through the launch and then just have my customers individually move themselves to the new platform by downloading the new application from the App Store. But in a banking situation, particularly if they've got some large commercial customers, they're going to want to help their customers move to the new platform. And so I don't -- it's not really too much of a difference in the decision cycle or the decision timing. There is a difference in terms of motion in which we're implementing a customer.

我認為區別在於——你並沒有真正問過這個問題，但實施週期有差異，因為在信用社，它主要是零售。因此，信用合作社會考慮，好吧，我將完成發布，然後讓我的客戶透過從應用程式商店下載新應用程式來單獨將自己轉移到新平台。但在銀行業情況下，特別是如果他們擁有一些大型商業客戶，他們將希望幫助客戶遷移到新平台。所以我不認為——決策週期或決策時間實際上並沒有太大差異。我們實施客戶的動作方面有差異。

That's all I had. Best of luck going forward here, guys.

這就是我所擁有的一切。祝大家好運。

And our final question comes from Daniel Hibshman with Craig Hallum.

我們的最後一個問題來自 Daniel Hibshman 和 Craig Hallum。

This is Daniel on for Jeff Van Rhee. Yes, excellent quarter, the acceleration on user adds is looking very impressive. Maybe if you could just help us with at a high level what the driver of that is in terms of -- is that logo size? Is that the lack of churn? Is that the number of logos coming on? It looks like the live digital platform client count that's up 10 or so it looks like year-over-year, that's up at a sort of significant record. I assume the primary driver is the number of new logos coming on. Is that a maintainable pace? Is that a sort of recent surge in implementation? Just help us think through the recent acceleration in user adds?

我是傑夫·範·李 (Jeff Van Rhee) 的丹尼爾。是的，這是一個出色的季度，用戶添加的加速看起來非常令人印象深刻。也許您可以在高水平上幫助我們了解其驅動因素是什麼——徽標大小嗎？這就是缺乏流失嗎？這是即將出現的標誌數量嗎？看起來即時數位平台客戶數量比去年同期增加了 10 個左右，這是一個重要的記錄。我認為主要驅動因素是新徽標的數量。這是一個可以維持的速度嗎？這是最近實施的激增嗎？請幫助我們思考最近用戶加入的加速？

So what's really driving our user adds, as we mentioned in the prepared comments is, first, implementation of new clients onto our platform, we added 1.7 million, 1.8 million digital users over the last 12 months. We have that visibility at any given time during the year, and that comes from our backlog of implementations. And then our clients are growing themselves. Our clients are growing at a rate of about 10% and that 10% over the last 12 months resulted in 1.4 million digital users only for 2023. So the 3 quarters of 2023, our clients have grown a million digital users. So what we find is, since we focus on the top 2,000 financial institutions in the market, those financial institutions tend to be the more technology leaning in financial institutions. And as a result of that, they grow their digital platform communities at a fairly nice rate.

因此，正如我們在準備好的評論中提到的，真正推動我們的用戶增加的是，首先，在我們的平台上實施新客戶，在過去12 個月裡，我們增加了170 萬、180 萬數字用戶。我們在一年中的任何特定時間都具有這種可見性，這來自我們積壓的實施工作。然後我們的客戶也在不斷成長。我們的客戶以約 10% 的速度成長，過去 12 個月的 10% 導致 2023 年數位用戶數量達到 140 萬。因此，到 2023 年的 3 個季度，我們的客戶已經成長了 100 萬數位用戶。所以我們發現，由於我們關注市場上排名前2000的金融機構，這些金融機構往往是金融機構中更偏向技術性的。因此，他們的數位平台社群以相當不錯的速度發展。

And certainly, I mean, to be in a position where we're not going to lose a single customer on our digital banking platform this year, that certainly helps. We may not be able to do that every year for the next 20 years, but that's a great result of our ability to take care of our customers.

當然，我的意思是，今年我們不會在數位銀行平台上失去任何一個客戶，這肯定會有所幫助。我們可能無法在接下來的 20 年裡每年都這樣做，但這是我們有能力照顧客戶的偉大成果。

Yes. I mean, we believe that there is no other provider in the space, adding 3 million or more users over a 12-month period.

是的。我的意思是，我們相信該領域沒有其他提供者能夠在 12 個月內增加 300 萬或更多用戶。

And then maybe just 1 follow-on for me. Looking at the ARPU up about 5% year-over-year. I think the commentary was that our 2 new customers in the backlog is around 24% versus the current ARPU around 16%. Just on a weighted average with all those new customers coming on at a high ARPU, I would have thought that you'd be able to get a little bit higher than the 5%, which I know is how it's traditionally grown around that current 5%. Is there any other sort of mix shift or pricing element that plays into the ARPU in the way that, that's trending?

然後也許對我來說只是 1 個後續。 ARPU 年增約 5%。我認為評論是我們積壓的 2 個新客戶約為 24%，而目前 ARPU 約為 16%。僅以加權平均計算，所有這些新客戶的 ARPU 值都很高，我本以為您能夠獲得比 5% 高一點的收入，我知道這就是傳統上圍繞當前 5% 增長的方式%。是否有任何其他類型的組合轉變或定價因素以這種趨勢的方式影響 ARPU？

Well, we -- so again, our clients added 1.4 million digital users over the last 12 months. And the way our pricing model works is the more scale, the more users that a financial institution brings to our platform the incremental cost per user goes down. So when we grow 5%, that's overcoming the headwind of the 1.4 million digital users that are coming in at below $10 per user. So the gross ARPU expansion is in the 7% to 8% range. And then you have the dilution that comes from the incremental users added by our financial institutions.

嗯，我們——再說一次，我們的客戶在過去 12 個月裡增加了 140 萬數位用戶。我們的定價模型的運作方式是規模越大，金融機構為我們的平台帶來的用戶越多，每個用戶的增量成本就會下降。因此，當我們成長 5% 時，我們就克服了 140 萬數位用戶的阻力，每個用戶的收入低於 10 美元。因此，總 ARPU 擴張在 7% 至 8% 範圍內。然後，我們的金融機構增加的增量用戶帶來了稀釋。

This concludes our question-and-answer session and concludes the conference call. Thank you for attending today's presentation. You may now disconnect.

我們的問答環節和電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。