Operator: The next question comes from Pat Walravens with JMP.
Patrick 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?
Bryan Hill: 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. 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.
Patrick Walravens: All right. That’s super helpful. And then Alex, for you sort of the same theme. So what are the sort of the top 2 or 3 things that you’re going to be most focused on for 2024?
Alex Shootman: 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 [indiscernible] 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. 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.
Operator: The next question comes from Jacob Stephan with Lake Street Capital Markets.
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?
Bryan Hill: No. I mean, in our new logo or client win backlog of the 35 [ph], 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 AR 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.
Jacob Stephan: 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?
