Alkami Technology (ALKT) 24 Feb 222021 Q4 Earnings call transcript

Hello and welcome to Alkami's Fourth Quarter 2021 Financial Results Conference Call. My name is Adriana and I'll be your Operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session.

During the question-and-answer session, if you have a question [Operator Instructions] Please note this conference call is being recorded. call Steve the turn I'll over Calk. to And you may begin. Steve,

today's Operator, Bryan Alex Officer. with you call Hill, me Financial and Thank Officer on are Executive Shootman, Chief Chief

and make statements These based uncertainties. subject on and statements may to future views are we current and call, regarding our today's about During guidance expectations other management's various matters performance. and forward-looking are risks

discussed forward-looking results. will release refer in SEC. associated the to be the reconciliation useful in a stated, Also, press otherwise Our be And measures Where believe factors made over statements release, forward-looking with different. are obligation press financial will the this to today, our statements. investors comparable of may in now forward-looking entitled our and made we We in call financial call financial being risk materially factors with can call quarterly unless actual and Alex. to to undertake statements, XX-K please results our turn any the on A of summary these our no filings during of and or measures be basis. the non-GAAP update found measures and our as today's The sections risk statements. are earnings GAAP I to the understanding on revise

we a me and fourth Fourth XX.X Thank the and you, that discuss platform. nearly XXXX. Steve. our We which performance X.X the of users you registered XXXX on but million strong the to exited up few Earnings sequentially quarter, XXXX compared million up Quarter Alkami us grew we our full-year. I some XX%, of nearly end And minutes, revenue expectations. is XXX,XXX the was the live users let nearly with for Call. This pleased numbers the for all ahead highlights. will by In fourth thank report delivered you both today Bryan am to in give joining quarter for

XX excited that with job. during was our sales, quarter well Since be and our team logos clients, a huge A a to investors, renewed I'm our innovative conversations new and done. a a for and most In terms culture. support, November, and I've our to We and technology successful quarter clients. at sound. the in out fourth to the is Alkami's prospects, grateful here I testament Very with great of strategy Alkami. and time spent early quality, technology, existing employees, stakeholders with the closed vibrant XX-year confirm these history. shout five and joined

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embedded And experience expertise app ratings. product teams. in engineering is is user design independent and integration validated and that this reflects principles and by mobile store testimonials, Our the our research,

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will focus growth several drive the of on aspects business to over Alkami next five years. such, our As

banking quality and the community providers. with become a digital maintaining will banks Regional position while banking leadership we want of among choice First, provider credit digital a alternative banks unions. for market

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we on Second, add-on increase growing sales. will our focus

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a in no FinTech the billion alone. of predict winter As raised XXXX $XXX industry that has can market, given company innovators in many their every a in that

almost innovation digital we evidenced received SDK by in which in platform what is submissions for a a customers. And X. enables Cloud our the want envision as XXXX. ranging origin. with we of platform that wide the customers nearly which XXXX, double we're We future integrates that Alkami X,XXX Our in received regardless innovation building banking

and The retain marketplace on across focus talent. are is is our We talent. strengthening pressure increasing And to there industry attract competitive. the

to Gavita a is Hoagland the Julie acquisition in a company Resource like experience QX, companies As that to HBO. Chief years investment taken I'm in talent is and She the over market as view young in effective team necessary highly our and to we already as and digital effectively Human can our core has cultures that in on we the transformation, we culture forefront happy the compete Officer. and the to achieving at near Yes. next HR level. and success executive believe announce long-term added of XX market talent objectives. thriving building talent Julie of

strategy. on We will our execute MNA

to accelerate unlimited have and We opportunities portfolio our expertise. virtually our expand

critical our for of third-parties to connect There where our circumstances to of are it be extensibility development is shape acquire the companies strategy to with allowing their makes our to platform able underlying us of for clients functionality to the choosing. the Although clients. of sense more of benefit

out support as agile be is the enhancing here by succeed and talent, and a an we for to M&A portfolio, and a attractive I'm our regular must-have developing to right excited to improve our As we in to digital is technology. talent, banking the me over capital, will closing, call be on our front. modern confident building investing let platform profile. marketing remaining our will and I'm sales Bryan. that And FIs. turn feature market of In Alkami that, growth capabilities, strategist, the With banking in grow to continue business component our M&A add-on-sales, We're and access

good Thanks, everyone. Alex. afternoon, And

XXX,XXX by last nearly our strong last we quarter, million, We implemented growth million million quarter of fourth strong almost platform execution live months. start compared in at by $X.X the drivers. was XX% revenue areas driven prior with more XXXX. X XX the This bringing primary digital platform the over has performance of We fourth XXX continued Our users to to client the Third achieved was operational growth all year, with and compared Digital financial logos or the X.X on nearly our and prior in across In which exited driven been users our represented year. registered the $XX.X by quarter, of outperformed to and million across users XX% the the revenue. XXXX XXX compared to user year. in revenue guidance two financial XX.X new the Quarter board. I'll count

by users. within user XX% First, implemented the client nearly adoption base we increased institutions we adoption digital supporting users, our their financial have million increased and implemented X.X million fourth digital user or And users our XXX,XXX XX users. quarter, XXX,XXX have second, For over X.X clients digital

We over grew XXXX and digital user, or annual openings to revenue revenue, blended This to up revenue $XXX we X.X% compares for million. accounts. and client exited quarter, to quarter. of ARR, Subscription account the We RPU, know. revenue. year deposit represented our higher loan of per continue XX% important the and to by total to compared drive a inclusive XX% growing prior XX% compared opportunity to user the new at per per $XX market $XX.XX and recurring cross-sell live increased year year-ago It's

implementation to XX $XX XX ARR over next the possess also We months. million over backlog in for

quarter fourth and continue client for year. Our and the quarter drove cross-sell clients team five the sales full the to year. on full of XX% renewed their also the during for success sales new team build XX XX% This fourth and in

be early additional we excited addressable sales and success billion client increased We expect with are to performance contribution. Decision very market pleased very an and with revenue team related this to XXXX area of the acquisition. an our continued our Overall, the investment with and in from and are $X.X MK

and of We a operating TAM $XX Turning margin XX% non-GAAP target profitability, our is are our model serving billion revenue. as we nearly margin of to XX% scale now to gross gross

expect XXX basis expansion margin of year. a gross to average at on We this of per to XXX achieve pace points

M&A expansion For resulting our average basis progress points to expansion, average Conversely, other gross exceed might On from operating XXX XXXX, example, to as such expect model. target and lower may margin years years objective. our balance, of investment, we we as to XXX expansion possess activity. some

in XXXX, margin the non-GAAP For of gross to the year-ago the XX% XX% was quarter. quarter fourth compared

primary for unpack Let the me drivers you.

margin. decision [Indiscernible] XX was diluted non-GAAP our to basis XXXX points gross Our acquisition QX,

for In XXXX, Normalizing quarter margin buyout basis would for of have margin been addition, items, gross $X.X during QX, expansion from client non-GAAP non-GAAP approximately both points XXX gross one-time million fourth XXXX. a the of benefited revenue.

our support, For the was higher scale, XXXX. by and client relationships. associated and somewhat was in implementation, driven XX% functions, with cost utilization, success year for revenue by full year, non-GAAP revenue offset Expansion primarily the in client full compared greater XX% our to third-party gross costs margin client efficiencies

to Moving expense. operating

revenue occur expect which a trade-off we our growth for address opportunity cycle As with profitability, reminder, is investment EBITDA to share market towards our maintain adjusted and of have market a good positive, goal sacrifice the creating line to to recognize exit as we opportunities value. large correct at XXXX, sight of to we point the shareholder gaining in near-term a balance this and is at life

human areas represented A expense XX% ago, activities of R&D incremental year of addition primarily $XX.X of expense of growth, investments Last XX% as general pre support Sales non-GAAP increase investor uptick administrative The $XX.X as XX% marketing revenue. strategic was return in and of expansion insurance revenue non-GAAP was such is sales revenue. driven is driver revenue. revenue. adding attributable resulting headcount For XX% was sales the million The personnel. costs was to costs -pandemic primary XX% higher our resource relations, approximately or revenue the and by sales of G&A XXXX, primarily public non-GAAP scale. year, the million our company new business a expense and client legal, revenue. or and the was marketing fourth team. such to of and accounting, ago. The or of R&D million quarter year $X.X for represented XX% and margin to

was Our adjusted end our expectations. the than million high the $X.X quarter EBITDA better fourth loss of for

adjusted XXXX. For to our million in compared million $XX EBITDA full-year was loss $XX.X XXXX,

on just cash of on sheet, quarter $XXX Moving the balance quarter. use to cash during we net ended balance $X over the million of the representing with a million sheet,

We accelerate growth expect approach to addressable sheet to technology we deal return to see conservative with We integration. guidelines our portfolio going And market investment, approach M&A forward. around to our M&A. expand through on and this continue balance size, continue use opportunities and

Our acquisition QX most MK line in with performed expectations. recent Decision our

to see single products institutions both loan offer growth MK platform applications We ability and and on-boarding deposit gives Decision strong decisioning additional digital continue to enhance experience. financial in both for on the and the supports a cloud-based accounts.

adjusted will added XXXX. million MK discussed last And $X view investment the $X future to million I a fourth Decision should approximately XXXX. approximately technology we As requiring in as adjusted XXXX as you address the purchase expect Decision loss quarter, opportunity, to quarter EBITDA loss of of our in during we market our EBITDA the contribute MK

in Now, $X.X million. providing of guidance turning and are of for the the guidance, XXXX, $XX to $XX million we to million to revenue first For loss EBITDA million Xuarter of adjusted range $X.X

market note full-year the For range adjusted million. and providing $XXX Decision million full-year $XXX million from discussed, a EBITDA XX-year Nearly guidance $XX signing Revenue loss position moderate and of wages questions. MK The new XXXX, I'll human and adjusted for significant we successful implementation to pressure revenue are the our previously infrastructure, an million hand already our focus the EBITDA our subscription shorter $XX and It's XX and in To beyond. the call key includes expected in impact to which sales, of revenue and on of XXXX closed quarter. for in-year our resulting TAM new during while expanding possesses guidance the our velocity retaining talent. revenue our add-on made from recognition. logo to and timing based accelerating summarize, and area logos is competitive an that of XXXX cycle. operator implementations, most for With environment was success is variability to since An fourth-quarter place. primarily in results revenue a technology, We capital, XX% there the increasingly the much the in strides history. recruiting implementation competitive to and of in sales, that, We XX-month is important from between under contract. to X implementation cycle all

Citi. [Operator session. begin Instructions] now question Smith And We'll comes the question-and-answer you. first from Andrew Thank from our

open. Your line is

have everyone. Alex Hey, and my welcome Thanks question Good again, Steve. and for taking you. to

your think areas double fresh can you get you forward. areas on and remarks, -- ask from you I on portfolio you could prepared into you approach think this the from product as think I you just board. is about curious, down little are that bit there you product that Just eyes, new a mentioned can -- on Alex. coming of if about going the question First this think about but for in the a know perspective? -- how And just platform today the If Thanks. business the

exciting portfolio that This is answer remarks, of Alex. Thank much. as you tripled what mentioned couple over my product your prepared the the years. question, I An just in very to thing last to has is itself me, is

will our sales base. the area bring we an effort so to increase marketing existing customer those And that to is and in products investment

of investment. for me, that's, So an clear area

Got Could we to those then should you one from it. the Bryan. Thank base you for the And maybe when if the Thanks. for into us come The that. user then of out? quarter. Sorry help And backlog missed this. timing perspective? at a expect I end

That's Andrew, the thanks question. And great. for

comments. little mean, And million mentioned I logos fly. -- Alex represent the his new new As users. than and we XX logos have X.X XX prepared in more X.X

XXXX, took but a will in logo with throughout expect year, of back the you have place, majority the very rhythm we that implement, the new sales concentration XX we're During of half sales in of given QX. think those and to the the high year

back Given very trend cycle. similar we 'XX ahead see the you with type in more will year successful implementations half had the of of a a QX, a FY implementation of

So of the more quarter. implementations be users than in each quarter XXXX, terms there'll previous of sequential

All you right, you. back Thank quarter, very I'll guys. jump Good with much.

William comes Napoli Your from question from next Bob Blair.

line open. is Your

banks higher new you I afternoon. to If user color the the the unions. again, I for than that -- the Bryan. added? you bank revenue additions. user just to good your call The really logos you Then on mix around much Thank What's of per you've last for X backlog? give discussed would, the key What users mix think had to some or Steve, the Nice focus. of if in the was that. mix you credit the talk being Alex, know see themes, one Alex, talked you about areas of and Good was

would color helpful. as well, some that it give could you be around If

our bank that business going competitive answer Bryan into, offering. the we of product continue And product me increasingly go are bit I'm got the What's also business to to to to seeing to market, what is customers what's well. pretty making we're in investments but nature about credit specifics. great Alex. is the market ask let can of a the This banking the as neat out trying attract we've -- little banking is we're build unions

us investment for the in our then then of strong some answer the the in So historic credit terms competitiveness I'll of helps also the both Bryan, specifics product and in in the you in let position unions market. bank helps And us it question.

talking good again, Bob appreciate Yeah. question. to you the

have banks So XX presently And those XX we nine those are under live. banks, contract. of of

So we when supported have now we is XX% backlog. of XX pipeline, -- bank sales new you four by in But have to opportunities. logo look sales importantly, our our pipeline close new implementation more that at to our

core motion. Also encouraged with new know, you that as very we're very banks that. in the what's we're you we're a opens So so the again, Several in for those in--implementation cycle new or making terms are on in progress up banks market the -- once of And the Bob, to excited that are by underway. integrations. of core in -- a have we new integrate that key integrations full implementation that are about that core you

long-term and stock model business per -- growth on model, through just growth. next the users then on you're you years, few user, for of And and the user the you. the revenue the that revenue over Thank per the just growth of focused Bryan went --

is growth basis. XX% organic objective above So our on a growth staying long-term long-term

it's a users, our from expect users or to whether user average. come when than XX% much our logo clients our clients their they are users expansion. overall and new Keep about it's from grew adding at We mind, RPU coming then that RPU lower X% growth, their existing whether growing in from of

total a RPU amount results activity, originated we're couple we've different that increasing of a expansion areas, activity. that so of an And a bit coming expansion. and headwind contract seeing from value ARPU in of cross-sell one comes from cross-sell is which our of which

sales secondly, and also for individual with cohort we're the So more for that's associated years products higher an cohort. Then us. ARPU three each seeing as last encouraging new that year

-- averaged and example, $XX in new clients clients ARPU. XXXX, XX our For products of our average around

Great. Thank you.

Our Sterling from next comes question from Auty JP Morgan.

Hi, Thanks. guys. Yes.

interest points look the be strength face looking look quarter, level, -- So a see very in durable that that out especially rates? the course high in seeing you in the customers how wondering do to you you demand what's pain key when the demand at in you over of solve rising as the XXXX, from are and of

Yes. to customers sit When D. who for is and customers they're that the are decision, accomplish brand to down platform is more Alex thing to new making digitally speak a a with end trying use. have Thanks. This we their friendly

BXC type experience experience. their customers give end are Their much And their end type they used -- their digital the the rest so increasingly younger. of lives. end-user of bank their to are that getting of And want in having customers to same more a

a And one of we experiences that best, have like so one reliably the continue reasons we not we is why from successful the user perspective. best be if of to product feel the

look testimonials. you at you app ratings, at look If if

And so partner. way a have to really be starts banking to our company a experience, the deliver their to Alkami user-friendly they're market our more like financial more going pick come modern, as perspective, to institutions from

experienced particularly the in sales additional color which terms And add-on traction towards talked about that sale. as the you most modules end Got Bryan, the skewed that to year. of time of had renewal what then you Any you. the and add-on

is go sale presently digital match there being over happens bank Those another with pushed bank a common we generally add-on products typically mean, or there from products Sterling, eight a additional capability. one different. that that banking account. depending added And the on always obtaining to what be will are union group particular to of is are platform, theme the core I then experienced just existing nine every are there low strategy their and the what on is new on isn't and credit

each do hard by the out thing. new when that, are motion financial single product. it's having pull of And what we out so we to individual the needs institution, it's said roll a see add-on But driven a so traction, when typically is sale

we're example, product new a demand For our product around security we've crypto around generation demand some BioCatch, being seeing seen is of a we NYDIG. offered. with that partnered built where generation which We've lot

six rolling there's we're marketing something But to and it of so team. creating whenever nature buzz trying the strategy just Outside our because financial drops quite client space on sales some us expand that, new seven institution. the increase see bit, putting of of out top highly-adopted of we're plans continued and highly-adopted And for typically ARPU products, products. the a go of it things large success adoption as that goals outside those we'll very that the to our depends to white after behind pushing rate and a the and

is -- And them now. advisory things are up to board. little that. come business commentary to alternatives we or that on now will what later. three pay the dataset. what top their got just them, company right One advisory interesting a not a things ask that We've most customer one This board have Maybe buy in color XX,XXX across of they BNPL, a customer is are can and

can perspective. platform more continue to -- innovations are different second to is we market. then And extensible and innovations what coming create they that from are what investments is play that a a that are coming third The new can plug into fraud make

for from our interest an hear And an advisory of of them. fraud board we platform. our that is them, continued area for or area that is investment interest three in BNPL, So things

Thank Great. you.

Tandon next our from Needham. And from comes question Mayank

Your line is open.

better I you you. logo is you terms would evening. competition that that's something be very really helpful. where in it seeing Thank Alex win you rates? Bryan, XX Is was the curious, quarter. in wins, talk the sort which impressive just of dynamic competition fourth-quarter trends context new that underlying this mentioned around sales? Good market of and are just Could Maybe as the boosted about

little resulted before color me part new our the during a for this and I Yeah. how our in what they we were earlier we new mentioned let the just of came answer sales. opportunity wanting work and their in provide months which call the through sales as of call had we of new they What is year. way question, mean, QX that lower softer resulted then bit in QX the cycle the competition the And sales expecting in pandemic in also recovered some the XXXX. The we we the the was good opportunities marketplace. you quarter the we build in But It's very logos that mentioned we company what and felt quarter in in half a first result third demand in And we XX seeing approaching first of third new strong the history. half even respects a as QX the as recovered. as XXXX, in largest mentioned, of of were as and new were that's were impressive. creations,

XX% Our year. prior fourth quarter new over than sales more were up about bit XX%, a the little

of the lot a fourth-quarter. success So in

you have in of the years, as that you a new and in is your that of level sales. sales very, albeit to we're terms QX XXXX, rebuild what other there would into same quarter us shouldn't high fourth the very we've from quarter. drop-off the be had row seeing we success pipeline, experienced as in QX expect, you in for feeling Now was But

demand. we through as that, each what proceed new as still suggesting year type XXXX, not growth the is strong through XX logos So experience tracking expecting we're with sales. And putting in new should we're similar we of year-over-year, quarter, of suggesting I'm up terms I'm we're

one clients competitive rate in of together. Plano a spend of our opportunity and I of to was our an headquarters is great what it, these years. to I to couple came and got almost the best -- it many got would maybe add airplanes And part we two win days flying again

it's I situations, prospects to And lot a competitive. we spend that time There that's pretty Alkami so able consistent. these get every one in a situation was the single be of became And not clients competitive. fortunate not the quarter. for into is of to with are themes And win

best First wins. product the

is Alkami. experience we the the product reasons make the why in buy create we customer customers investment to so one investment And of -- make great the main that that a

changing, The release second the are can very customers company build on lot where get this that software a a quickly, there's that is for door and market looking is dynamic technology out a a and continuous basis. can

the so then entire to brand organization, that finally, And in success experience I Alkami do our be investment banks just they're is organization, confidence their that help them also with stay company. buying competitive that second the we business client they're heard the product, has to organization. industry. realize had buying that allow industry got they in desire and And a had reason They or and significant in the the we've the from customers a they that the the client not with ability success that FinTechs new to to a wanted them the culture And successful. customers organization of larger

that competitive, best the the were all that me, for so And have customers the they reason with, got product. I we is, why chose to Alkami visit

live We have product. that support to the get helps really market have anybody the organization. good ability to them And get on a else. product we than service faster

very a helpful perspective. That's much. so Thank you

I'm question next Willis sorry. Pat from from comes Walravens our And JMP Securities.

and you any in think groth guys filling pressure XXXX the in is did easing? you wage more trade-off in between about can for mentioned talk and about see started you Pat. particular, the you intern This profitability of an How to signs if

Appreciate Han. Pat's question the absence. in Hey,

mentioned is on the is opportunity Our significant. thoughts call, today, market the we as

that we by in more operating the our suggests more And believe to three which revenue. and to we share market that create over target can model that growing significant contributes user with the at margin on gaining revenue value adjusted longer a of base, years, model. But to an XX% that. bit have one And be approach We companies over also eye our that we are next makes growing directly therefore, a believe successful time top-line with we two our balanced that, XX% margin, most XX% the gross than we'll plus a sense. EBITDA shareholder

plus view gross XXXX or margin towards in and future. a investment XX%. EBITDA investment current reaching becoming north future we rather, adjusted as XX% continuing the to a positive balancing we're So with top-line then And point of exit and an the grow of adjusted some EBITDA at eye with

months then understand it. can you're your XXXX. you top for personal Alex, remainder us you your priorities two strategic CEO, the And into much. Thank now that time Got as very of help three

on to on we're investment our sales. Yeah, banking more they and the focus product add-on more out stated our grow platform going basically as of banking having We're talented to We're business a there. We're customers their to our sales because to going clear build want continue upon to telling running be company. which their help to application We're us most going us capability going to business. software I are best marketing the platform out broader areas. in pretty have they're and invest that digital our

are And so range amazing a reach lot to that to and in talent the there out organization, the of we're of going company. we have pretty and invest our in M&A opportunity the build

So those areas for are the focus us.

it. you. Thank Got

KeyBanc. from question And Josh comes the from next Beck

a little growth financial growth out maybe of revenue maybe AR had some for driving and between and taking how we for trends about remind question. Delta the the as really on question XXXX. But I we Bryan. bit of Thank more model us should you what's you, think just a those

we implementation. we such primary And XXXX, in is timing of the what really growth It's have items focus. had as revenue ARR QX one-time our of if

which by part year of at to XX% the through bit implements That's a quicker of during an of ahead is guidance add-on of that being can ARR much new look what our logo. would is the large end that growth. the for it's implementation timing motion the sale. end to range, a in XXXX And be add-on our sales sale guidance, of an and low half influence high will you the because suggest growth the add-on logo Typically, for revenue in year a XX% than If driven the the new back XX implementation. XXX-day concentration cycle

if you about points I product some said years, the some through Very there, went of and around in best you color finer the of obviously there. for of win in you helpful. Thank differentiation. you the and the believe And couple your a Alex, talked rate

that have you're I'm for do being in vendors Has way? that with. high they being brand work a helpful bit you like of little from boost They that, transparency. the get process bar of public The they feel just public, great with you maybe dealing want a very other just thing banks about, curious obviously, any just and has

doesn't several in look, been companies, it software Having company. doesn't be to a hurt, right? hurt It public software

decision end customers, to And based making represent customers more the best some to you day, gives going pick amount upon them how product best their they ample but and competitive. gives they brand, of so to want are themselves you that the what's that company. make I a of And think certainly the their a credibility, the

And else. battle, than got so to anything we've more win that

to win we little product So best the us have a more best and to the best may bit the have it but and credibility, still service culture give

to $XXXmillion wins, of of CFO necessary our about Yeah. response. has greater $XX important we flow s capital capital, balance versus institutions. we with best cash spoken is end-market, more had Alex s I'd with it's on sheet reach conversations we balance capital on because to product million I sufficient -IPO on I clients sheet, cash what's have best about the with different million institutions. the prospects And what the financial product of them now We're financial comments couple $XXX of CFO conversations positive, financial balance the have to add And Alex's to mean, very million free that's or outside and have sheet. dealing a which access pre and post-IPO, our profile. of The to to $XX

prospects the greater -- different. that clients, like And having us very to CFOs are believe business. into of the fund the reach of or they I markets conversations capital our of those aspect So even

Great. you, Thank team.

comes question Blair. Bob from last William our from Napoli And

is line Your open.

Thank you for the follow-up.

You those provide that are had products? I with customers those firms you Alex, you Are and are other buy-now-pay-later you or organically products. couple on -- that are asking of planning for mentioned, products third partnering building products think, times, a your

their got answer The intends MK see early technology is both. we've one Decision of I And that to just some as BNPL an version there the use around our other of offering. product the created to customers day,

Okay.

on product, the organically [Indiscernible] in fraud that So product

with I and I saying, was the other as as well. partner day But will people got to We early see versions.

that an version something our we in a customers. of take BNPL and our So foundation offering early where one Decision this but we've is it's Technology the taken MK not for for market, serving the as

out it organic through is And winner also acquisition, that build to platform for we in Bob, and a we We use. product we necessarily But always our clients, very clients and us. then through in a don't one either product, even that partnering is extensible build core competitive market. to huge is want flexible desire a that strategies. organically to to the class And which the able of solution choose to market best that's have obviously each our want to we want the that platform to a quickly, to We allows want bring development. or then for though be really they when of our pick our think differentiator

areas larger? you should is are the or you M&A What guess most you're expect could technology to and primarily. looking front, be what primarily see forward what transactions could we for ons? that I they Thank it it the you're technology guess -- you. do active. And be on of similar correct very sounds And looking to the -- like I'd add But in? M&A - much products size interest Decision, And would've then MK

Yes.

Illuminade to fits either going and or products to the how our product into Again, deliver buy, market. partner, strategy So we organically develop. we're just can

to specific driven area look It's our So we focus. road for any don't of by more Illuminade product map.

contracts, a for install wouldn't a without acquisition say if that's or was, accretive financial all either we great. we to they needs of areas more security and to bring come the one Decision Then MK in those within our by with base financial marketing our installed can solution automation But of desirable an the of solution, I MK of typical fits to In of best-in-breed again, profile, terms to into our market. base, meet But in objectives And of end growth if margin point to can Decision gross it size, that's a point say we clients. meaning that market types it large one interest accretive because quickly. the buy technology a that's or fits long-term of that purchase have. rate, us. great very terms

it. Appreciate you. Thank

you Thank and next forward for us joining updating Alex. quarter. is all this look to you well, Okay,

this today's and participating. you ladies conference. you, concludes Thank Thank gentlemen, for

may disconnect. You now