Beonic Limited (BEO) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Andrew Johnson, and I'm the Chairman of Skyfii Limited. On behalf of the Board of Directors, I'm pleased to welcome you to the 2021 Annual General Meeting, the seventh AGM for Skyfii as a listed company. I'm advised by the Company Secretary that this meeting has been validly convened and that we have a quorum of shareholders present. It is just after 10 a.m., so I declare this 2021 Annual General Meeting of Skyfii Limited open. I would like to start by acknowledging my fellow directors who are joining the meeting today. With us are our CEO and Managing Director, Wayne Arthur; Executive Director and COO, John Rankin; and Non-Executive Directors, Kirsty Rankin and Sue O'Malley. We have a talented and experienced Board that brings a very broad range of complementary skills and governance capability to our company. I propose to give a brief address on what we, as an organization, have achieved during an extremely challenging year and identify what the Board regard as the critical current and future challenges we must focus on. After that, I will ask Wayne and John to give you some more insights into our business, financial performance in FY '21 and the outlook for FY '22 and beyond. As I mentioned, the 2021 financial year was a challenging period as the impacts of COVID-19 pandemic were felt across our organization and the global economy. Despite the challenges presented to us, the team has done an exemplary job in continuing to grow and improve our business. We have developed new products to help our clients address the challenges of COVID. We've also significantly strengthened our Board and the senior management team to ensure we have the right capacity and capability in place to support growth and achieve increasingly profitable operations. I firmly believe the challenges we have successfully managed over the past 12 months, and the actions we have taken as a company, places us in a significantly better position to grow and deliver value for our shareholders going forward. Whilst our current share price and trading multiples do not reflect the view of the Board, the strength of our core business, I firmly believe that the company remains on track to be the world's most trusted partner for responsibly using technology and data to positively measure, manage and influence relationships between people and the places they visit. As Wayne will cover later, the company is confidently investing for growth. We have the expertise, experience, detailed plans and, importantly, the people and products to deliver strong future revenue growth. We are on track to meet research analysts' expectations to deliver $20 million in annualized recurring revenue by the end of the 2022 financial year and are well positioned to grow that considerably in the coming years. Whilst we have identified a planned reduction in operational EBITDA in FY '22, this is an intentional strategy based on proven investments. We have available cash and are investing in growth and strengthening the business. We confidently plan on a return to our trajectory of positive EBITDA growth from FY '23 onwards. We have achieved a considerable amount as a business in FY '21, and we are on track to achieving our planned path of continued growth and evolution of our company in FY '22. Skyfii continued to grow significantly as a company during FY '21 despite the pandemic, reporting record revenues, delivering significant contract wins and executing 2 highly complementary acquisitions that saw the company expand its leading suite of omnidata intelligence products and services. Skyfii's product offering has become ever more relevant to physical venues and public spaces around the world as they continue to navigate the ongoing challenges posed by COVID-19 and the way in which the public engage in physical spaces. Skyfii data analytics and venue monitoring tools have enabled businesses to provide a safer environment for customers and staff and to achieve an improved understanding of their customers' behavior, enabling better informed decision-making on operational matters. In addition, Skyfii's products are provided the public with confidence to return to safe, clean and effectively managed public spaces. In April 2021, Skyfii acquired CrowdVision, a computer vision and AI-driven video analytics company, with operations in the U.S. and Europe, focused on airports, stadiums, transportation hubs and large-scale resort hotels and casinos. The acquisition strengthened Skyfii's position as the market-leading provider of data-driven venue analytics. Additionally, it reinforces our strategic focus on delivering recurring revenue growth via a combination of organic growth and accretive and highly complementary targeted acquisitions. CrowdVision's technology solutions significantly enhance Skyfii's capabilities and extend our presence in the large and lucrative global airport vertical. Our ability to leverage the CrowdVision platform to drive and execute on a range of new business development opportunities will deliver significant upside to existing revenue levels, underpinning the strategic rationale for the acquisition. Our second acquisition during the financial year was Blix, an Australian business specializing in cost-effective venue analytics to small- and medium-sized retail businesses. Blix comes with an impressive list of existing customers, ranging from auto dealerships such as Porsche and Volkswagen to fashion and jewelry labels, Chanel, Swarovski, Country Road Group and Watches of Switzerland. There is a significant opportunity for Skyfii to roll out Blix' technology globally as well as an opportunity to upsell Skyfii's full suite of services for Blix' customers. Both acquisitions extend our products and geographic footprint and deliver significant growth opportunities strengthen Skyfii's position as a leader in omnidata intelligence products and services. To move to our people. Our company offers more than just data. Our people in technology ensure that our solutions are customized to allow physical venues to optimize the experience of the venue for their customers. Following the acquisitions, Skyfii has focused on integrating the CrowdVision and Blix' technologies and people into our company. We have grown to over 100 people located across Australia, North America and the EMEA regions. Our team's skills covers the fields of IT and AI technologies, data security, marketing, commercial and property. As a business, we must ensure that we can attract and retain key talent in a highly competitive global landscape. As an organization, we've built an ambitious, progressive and agile culture and the Board is confident that this will enable us to continue to attract the leading exponents in the fields in which we operate. We have established a dedicated senior team and expanded our Board to ensure that we have the right skill set and support in place to ensure the company can execute on our growth ambitions. I would like to take this opportunity to thank all of our staff for their efforts over the past 12 months as well as to welcome new members to our growing team. So on the Board. As we continue to grow via organic and acquisitive growth, the ongoing realignment of the company's Board allows us ensures we have the right skill set, diverse experience, corporate governance capability to execute successfully on this ongoing program of growth. We've added to our Board of Directors during the year with the appointment of Kirsty Rankin as a Non-Executive Director; and John Rankin, and I do note in passing, has no relation to Kirsty Rankin, as Executive Director. Kirsty's deep skill set in digital marketing and recent extensive offshore employment experience in the U.S., broadens the already wide range of skills and experience exhibited by our current directors. John, as part of the executive leadership team, has deep experience in our business and customers. His inclusion on the Board ensures we retain the right balance of executive and nonexecutive capabilities. I note that previous long-term directors, Lincoln Brown and Jon Adgemis have chosen to step down as nonexecutive directors of the company. Both Lincoln and Jon have provided valuable capabilities and experience to the company and I, on half of our shareholders, would like to thank them both for their efforts over the years and wish them well in their future endeavors. Our focus as a Board in this and coming years includes, firstly, hitting our financial targets, of which the key KPIs are ARR and data management and cash management; secondly, ensuring we have the right strategy for growth which balances acquisition and organic expansion; thirdly, delivering shareholder value consistent with the previous 2 items; fourth, building a business that recognizes the challenges of creating increasingly sustainable society. Skyfii's essential value contribution is enhanced operational efficiencies for large entities, cities, stadiums, malls, and this will be recognized and valued as a fundamental contributor to creating a more sustainable world; finally, building a more resilient business, recognizing the ever present and very real threat of cyber and ransomware attacks. As a company, Skyfii processes over 11 billion data points every day from 90,000 devices across 11,000 global venues. Data is at the core of our business. Cyber security and data protection is a key global threat and an area which Skyfii takes seriously. I'd like to expand upon this. How data is collected, stored and used is of the utmost importance to our business, including supporting our customers' compliance with relevant jurisdictional privacy legislation, such as the General Data Protection Regulation, GDPR, within the EU; or California Consumer Privacy Act, CCPA, within the U.S.A. Skyfii does take the required steps to ensure our data remains secure at every stage. This includes storing data security in fully internationally certified data centers. Our ability to safeguard the data we capture and analyze for our venues is the key to what we do and ensures we maintain our long-standing relationship with our customers. Further, we need to ensure we are capable of both resisting and surviving in the very unlikely circumstance that an attack was successful, a ransomware or cyber attack. We are confident this is so but continue to test and strengthen our capabilities. So going forward, Skyfii remains in a strong position to continue to benefit from an ongoing focus on safe operation of venues and public spaces around the world. With the increasingly supportive macro tailwinds we're starting to see globally, we are making a conscious and concerted effort to invest into our business in FY '23 to continue our growth trajectory. We'll be investing in all sectors of our business: sales, marketing, operations, engineering and human resources. These investments will see the company deliver negative operating cash flow and an EBITDA loss during this year. However, we're confident that these investments will be rewarded by providing long-term operating leverage and fast track our recurring revenue growth. Whilst Wayne will touch more on this growth in the CEO presentation, I wanted to highlight that we as a company will continue to focus on investment and growth. Importantly, we remain well funded to make the investment, and we will do so in a manner that does not put our strong balance sheet position at risk. A final outlook. As we continue to invest for growth, the positive market conditions, a growing business development pipeline, upside from our recent acquisitions and a strong baseline recurring revenue position the company to deliver meaningful and rapid revenue growth in FY '23 and beyond. I would like to thank the entire Skyfii team for their commitment and hard work during another challenging period. I would also like to thank our shareholders for your continued support. I will now hand you over to Wayne and John take you to the FY '21 financial year and the operational outlook for the coming period. Thank you.

Thank you, Andrew, and good morning to everyone joining the Skyfii 2021 AGM presentation. My name is Wayne Arthur, CEO of Skyfii, and I'm excited to take, you all through a summary of the financial and operating performance of the business during FY '21. As Andrew highlighted in his note, despite the global challenges that FY '21 presented due to the impacts of COVID, it was still a very solid year of growth and operating performance by the business. We continue to launch new products, secure new customers, retain the majority of our existing customers and also completed on 2 strategic acquisitions to further augment our core product and services offering and also expand our operations internationally. Despite challenging macroeconomic conditions, we delivered another year of double-digit and positive growth. Today, I look forward to taking you all through a brief recap of who we are, what we do and how we generate revenues. I'll then spend time articulating the various products and services that we launched during FY '21 with a focus on some of the key outcomes these products and services deliver for our customers. This will help to explain why Skyfii continues to grow and remain a critical product during even the most uncertain times and why we continue to maintain an extremely high customer retention rates. Finally, I'll spend some time recapping on the 2 acquisitions completed during the year and finish today's presentation with what is a very promising outlook for the FY '22 year and beyond. Moving to Slide #2. So Skyfii is, first and foremost, a data services company, and we're focused on applying the methodology of omnidata intelligence to help venue operators improve their operations and the experience of their customers. Our mission is to be the world's most trusted partner for responsibly using technology and data to positively measure, manage and influence relationships between people and the places they visit. Our vision is to help our customers use data to create a complete understanding of experiences across both the physical and digital world. Some key stats about Skyfii today. We process over 11 billion different data points every day. We support in excess of 90,000 Internet of Things devices globally. We actively work with and ingest data from over 200 different data sources, and we have our technology deployed across more than 11,000 venues in 11 verticals and across 35 countries. So moving to Slide #3. So what are the data sets that we typically collect and analyze? Well, the answer is any platform that has the capability to transmit data is a possible data source that we can collect. The data sources that we work with most often include data gathered from cameras, people-counting sensors, WiFi networks, beacons, mobile data and device applications, social media platforms, IoT sensors and point-of-sale systems, to name a few. What we do with all of these data sources is we stitch them together to form actionable insights on customer behavior. In today's world, as venues have shifted their focus to facilitate structural and operational changes as well as customer experience management, a great deal of our services are being used to help venues manage occupancy levels, monitor crowd density, optimize staffing levels and improve customer safety and security. Moving to Slide #4. So the Skyfii business provides venues with a complete turnkey end-to-end solution for all of their technology needs. Our products and services offering is summarized in 3 key areas: number one, technology solutions, which refers to the design, procurement, delivery and implementation of infrastructure to deliver people counting, wireless, camera detection or LiDAR-based solutions where required; this is then supported by the delivery of our Software-as-a-Service solutions of Connect, Insight and Engage and also remote management and support services for the infrastructure, all of which are built on a recurring revenue basis and today makes up approximately 70% of our revenues; and finally, our professional services offering, a really important part of the revenue mix, which refers to fixed retainer consulting services in the areas of digital and data strategy, data science projects and digital marketing projects, all of which really help to solidify the Software-as-a-Service revenues and entrench our services further. To date, we have successfully deployed resources to capably sell across all 3 areas in our ANZ market and are currently resourcing our U.K. and U.S. operations to be able to deliver all 3 product and services offerings during the current FY '22 year. So moving to Slide #5 where I will talk about some of the key and more typical use cases that we deliver on through our solution set. So here, we have highlighted some of the key use cases across 5 of the 11 industry verticals that we specifically focus on today. These use cases are the reason Skyfii is a critical component of the technology and data strategy for these customers. For example, in the commercial property industry, venue operators use Skyfii to understand and manage occupancy levels across floors, buildings and tenancies. They use the data insights to understand space utilization and optimize the layout, design and tenant mix in their venues. During Q4 of FY '20, we announced a partnership with BrainBox AI who do HVAC usage monitoring. And now as a combined offering, we help large venues predict and optimize their HVAC usage to drive better cost efficiencies across their portfolios. Retail properties use Skyfii to understand their audience by age, gender, behavior and trade area and use these insights to better engage with and service customers both in and out of their venues. Transport hubs use Skyfii for queue management, occupancy monitoring and to optimize passenger throughput from curb to gate lounge to drive more traffic and revenue within the restaurants and retail tenancy areas. For stadiums and events, the use cases center around fan engagement, event attribution, sponsorship and advertising monetization and to drive more ROI through the concession areas. And finally, in cultural institutions like museums and galleries, the key driver for engaging with Skyfii is to manage occupancy, understand what drives engagement and for event attribution so that they continue to deliver exhibitions that drive footfall and maximize customer engagement. Moving to Slide #8 where I will talk specifically about the FY '21 year in review, starting with a review of our core products and services and calling out some of the new solutions that we have integrated by the acquisitions of Blix and CrowdVision. During the latter part of FY '20, we announced and launched a product toolkit off of our existing technology, which we called OccupancyNow, which focuses on real-time occupancy counts and alerting as well as social distancing monitoring and contact tracing facilitation. We utilize either WiFi or camera infrastructure to deliver this toolkit, which is core to the existing Skyfii platform offering, and continues to be sold effectively as a people counting and occupancy monitoring solution, particularly in grocery and fashion retail environments. On Slide #9. During the first quarter of FY '21, we launched a suite of artificial intelligence-driven video analytics applications, which utilize algorithms to detect, classify and track people, vehicles and objects in both indoor and outdoor environments. Unlike the vast majority of camera infrastructure solutions in the market today, ours utilizes AI to perform accurate object classification, including being able to determine trucks from vans, cars from bikes, pedestrians and even electric scooters. And whilst we launched these solutions prior to the CrowdVision acquisition, which I'll talk about a bit later on, its technology is a very strong complement to our existing stack and our teams are working hard to completely integrate the 2 solutions within the current financial year. During third quarter of FY '21, we announced a partnership with BrainBox AI and subsequently completed an integration with BrainBox' HVAC solutions, which allows us to deliver proactive and predictive analytics to optimize HVAC energy consumption based on customer traffic and real-time customer behavior. This was a predetermined move for us into more IoT-based applications to assist us in delivering more value to our existing customer base. Moving to Slide #10. Slide 10 depicts some of the imagery we capture and visualize using our computer vision and LiDAR technologies, respectively. We've taken the opportunity to showcase how the artificial intelligence is applied to the various use cases that we are delivering for customers across some of these key verticals: number one, inside train carriages and on train station platforms, helping venues understand occupancy and also to detect any threats or public disturbances; at taxi ranks, we help to monitor queue volumes and taxi frequency and to assist in understanding curb-to-gate or gate-to-curb throughput; and at various security checkpoints, which is a common use case for the technology, where we help to provide analytics to understand queue wait times, passenger volume and passenger throughput. Moving to Slide #12 where I'll run through some of the notable contract wins and key renewals delivered during FY '21. As I've done at the beginning of the presentation today, despite challenging macroeconomic conditions globally during FY '21, Skyfii still grew its organic business. Some of the notable new customer contract wins secured during FY '21 included a 5-year contract with the Metro Washington Airports Authority here in the U.S., which was delivered in partnership with NASDAQ-listed wireless company, Boingo, who are a strategic partner of Skyfii. We also announced a 3-year deal with Henry Doorly's Omaha Zoo also in the United States, the first of a series of zoo opportunities in the current pipeline and also a deal which has seen delivery of our OccupancyNow solution. We converted an initial 18-month contract with Retail Business Services, the technology arm of Ahold Delhaize, one of the largest grocery chain conglomerates in the world, where we have deployed across 26 grocery outsets initially using our OccupancyNow solution. The total Ahold portfolio is over 5,000 supermarkets, so a lot of potential growth opportunity with that particular account. We signed Trent University in Canada. We signed a 12-month initial contract for our OccupancyNow solution across their entire campus. And we also secured another hotel chain during FY '21, signing a 2-year deal with Virgin Hotels here in North America across an initial 4 properties. After a lengthy courting process, we were pleased to secure a 3-year contract with Land Securities, a large property REIT in the United Kingdom, and we expect to deliver further growth within this account in the current financial year. South Africa delivered its second largest contract win behind Woolworths Group, signing a 5-year deal with Pareto Group, one of the premier shopping center operators in South Africa. We also added to our portfolio of cultural spend to customers where we inked a deal with National Gallery of Australia. And finally, we began our penetration into the large and growing winery vertical, securing a deal with Mark Anthony Wineries here in North America. On Slide 13, we've outlined some of the key renewals secured during FY '21. Some of the key renewals included: David Jones in Australia where we signed a 3-year contract renewal for our people counting solution; Nuffield Health in the United Kingdom where we signed again a 3-year contract renewal for our WiFi and [ Blix ] solution. We signed GPT Group, one of our first ever customers, who continue to partner with us across our Connect Insight, Engage and our data and marketing services offerings. And we also renewed for 3 more years with McArthur Glen across their entire estate of shopping centers throughout Europe. Additionally, we signed multiyear renewals with The Kooples retailer in France; Nando's restaurants across the United Kingdom; San Francisco Museum of Modern Art in the U.S.; JCPM, the mall operator in Brazil; and AB Nordiska in the Nordic region. Moving to Slide #15 and some discussion on the 2 key acquisitions, which we completed on during FY '21. So in September of 2020, we announced the acquisition of a local Australian-based WiFi people counting business called Blix. Blix has developed a plug-and-play device solution, which delivers accurate in-store analytics and sales conversion metrics for fashion retail and automotive venues and is a very, very complementary fit to Skyfii's overall technology offering, specifically in the mid-market enterprise sector. Blix brought over 50 new clients to the Skyfii portfolio, including the likes of Porsche, Volkswagen, Toyota and Swarovski. Skyfii acquired Blix for a total of $617,000, paid in cash in 2 tranches, which represented approximately 0.77x the Blix annualized recurring revenue contribution in FY '21. Moving to Slide 16. During April of 2021, Skyfii announced the acquisition of CrowdVision and a subsequent placement of $10 million to new and existing shareholders. CrowdVision is a U.S. and U.K.-based computer vision and LiDAR technology company focused on delivering highly accurate queue monitoring and management analytics in public spaces such as airports, stadiums and in entertainment venues. Some of the key investment highlights included their advanced technology, particularly the LiDAR solution; a very strong customer base and strong recurring revenue base; the fact that they have key partnerships in place with the likes of the Transport Security Administration, or the TSA, and also a recently conducted partnership with Verizon; and ultimately, a very, very strong outlook and pipeline of prospects in what was a countercyclical investment opportunity for Skyfii. We acquired CrowdVision for a total of AUD 10 million with $1.3 million paid upfront in cash; $3.1 million, which was paid via the settlement of outstanding debt owed by CrowdVision; and $5.6 million, which was issued by way of shares at an issue price of $0.209 per share. So moving to Slide #18 where I'll hand over to John Rankin to talk through the company's financial performance in FY '21.

Thanks, Wayne, and thanks to all our shareholders who have joined the call today or indeed are listening to the recording. Moving to Slide 19. As mentioned by Wayne, FY '21 was a transformative year for Skyfii. Despite the ongoing challenges the world faced from the impact of COVID, the company delivered a strong result for the year. Before I take you through the results, I would like to provide some context and background to the events that transpired in the year. The company maintained a strong cash balance throughout the year, both pre and post the capital raise. The company made 2 acquisitions in Blix in September 2020 and CrowdVision in April 2021, both have provided meaningful revenue contributions as well as a broader base of products and services to sell into our target verticals and markets. Customer churn and contraction was managed well. This was achieved by working closely alongside our venue partners, in some cases, providing assistance by reducing our services through periods of lockdown. In most cases, the accounts have since recovered. If we break down our performance into a first half and second half review, the company maintained a prudent approach to operating expenditure, particularly in the first half where the company maintained a low expense growth rate. If we consider our response to the initial shock of COVID-19, the company did respond very quickly in Q4 FY '20, having reduced operating expenditure on an annualized basis in excess of $1 million, which we carried forward into the first half of FY '21. By the end of the first half of FY '21, the company delivered strong quarter-on-quarter growth where we witnessed improving market conditions, which led us to adopt a more expansive strategy resulting in the acquisition of CrowdVision and the capital raise, both completed in April 2021. Both the capital raise and the acquisition were the catalysts to address much needed investment in our American and EMEA operations, which was accelerated by the acquisition of CrowdVision, a company which carries a strong U.K. and U.S. operational base. I'll provide more detail on our headcount strategy on Slide 21. So if we look to the FY '21 financial results, total operating revenues of $15.9 million represented an 18% increase year-on-year, which included an $800,000 contribution from CrowdVision from April 2021. Recurring revenues of $11.3 million represented a 28% increase year-on-year, which included a $540,000 contribution from CrowdVision, which represented 4% of recurring revenues. The company delivered an operating EBITDA of $1.6 million, which was down when compared to FY '20 but was in line with the company's expectations and taking into consideration the inclusion of CrowdVision from the 6th of April and notable one-off transaction costs linked to the acquisition and the capital raise. And finally, the company finished the year with an annual recurring revenue run rate of $14 million, a 40% increase on a year-on-year basis. So in summary, a strong result despite challenging and uncertain market conditions. Moving to Slide 20, Q1 financial results. If we move into the current financial year, the company delivered our revenue result in the first quarter that was in line with our internal budgets. By the end of Q1, we had been operating the CrowdVision business for just under 6 months. We've been very pleased with the integration of the business and sales outlook. Total operating revenues of $5.1 million represented a 48% increase year-on-year and a 4% increase quarter-on-quarter. If we break out the CrowdVision contribution of $800,000, this represented 16% of total revenues generated in the quarter. Recurring revenues of $3.5 million represented a 54% increase year-on-year and a 3% increase quarter-on-quarter. This included a $600,000 contribution from CrowdVision, which was 17% of recurring revenues booked into the quarter. Moving to cash. We ended the quarter with cash at bank of $5.8 million, which was a decline from Q4 of $8.6 million but was in line with our expectations. I would like to expand on the movements in cash during the quarter and, in particular, the cash outflows for the company as published in our Q1 4C reporting. The cash outflows for the quarter was $2.9 million, of which $1.3 million or 44% was utilized to repay CrowdVision finance debt and aged payables, which are onetime payments, noting these amounts paid were factored into the purchase price, which Wayne has already touched on in the transaction highlights for CrowdVision in previous slides. On the next slide, I will provide some more context around where the investment in the combined Skyfii, CrowdVision business has been made since announcing the acquisition in April this year. So to round out, the company continues to have access to a $2 million debt facility, which remains completely undrawn. And finally, the company carries forward an annual recurring revenue run rate of $14.2 million, which was a moderate increase quarter-on-quarter. So in summary, the Q1 results were in line with our expectations. We are pleased to confirm that we are successfully executing on our plans for revenue growth. The company is well positioned with sufficient headroom to integrate the CrowdVision business, and we have set us up for a strong FY '22 result. So let's move to Slide 21, headcount analysis. I would like to round out the discussion by providing more color on our investment for growth strategy with a particular focus on headcount. Presented on the screen today is a breakdown of the company's headcount allocation by region and by function, both prior to acquiring CrowdVision and the current headcount to date. Prior to the acquisition, the company had 63 employees across 3 regions of APAC, EMEA and North America. 31 employees were welcomed into the business when we acquired CrowdVision with headcount concentrated in management, engineering, operations and service delivery across the U.K. and North America. Prior to the acquisition, Skyfii core business was underrepresented in the functions of sales, operations and service delivery in the EMEA and North American region. The acquisition provided the company with a neat acquihire strategy to bolster our presence in both EMEA and North America. However, both businesses were underrepresented in sales and marketing. So since April, Skyfii has invested in 11 new headcount, largely focused in sales, marketing and operations. And by merging the business operations and the new investment in 11 new headcount, the company is now well positioned to deliver against its growth targets. Whilst our hiring strategy for FY '22 is not fully delivered, the business remains focused on incrementally investing for growth to maintain a strong cash balance. A strong cash balance will be supported with improved revenue growth performance, which we expect to deliver in the remaining 3 quarters of the year. So I'd like to thank you all for joining our AGM presentation today, and I will now hand you back to Wayne to close out the presentation. Thank you.

Thanks very much, John, and huge congratulations to you and our team on a very successful year, one which saw the company grow 18% year-on-year, successfully renew all of its expiring contracts and also a successful conclusion of 2 complementary acquisitions. Moving to Slide 22. Our 12-month rolling pipeline remains extremely strong, and we are consistently moving deals through the advanced stages. Currently, we have approximately $3.4 million worth of new revenue deals sitting in either contracting or committed stages; and then a very sizable pool of $11.5 million of deals that are one stage back from being committed or contracted. With the market still operating on a fairly short turnaround and with 8 full months to trade in FY '22, our outlook for the full year remains very strong. Moving to Slide #23. As Andrew stated in his Chairman's address, FY '21 has been a strong year of growth and operating activity despite a challenging global climate. To echo some of Andrew's comments, we launched a series of new products and services to complement our core offering. We onboarded 2 new teams as part of the acquisitions, which has seen our global employee base swell to over 100 people. We have delivered significant growth into the international markets, which will contribute estimated 50% of our FY '22 revenues. We successfully concluded and largely integrated 2 company acquisitions on favorable commercial terms, and we delivered these results whilst continuing to grow our core revenue base on profitable returns. So as we look ahead to FY '22, the current year, our outlook is extremely positive. We have stated our intention to invest for growth in order to deliver operating leverage in FY '23 and beyond and are actively investing into the areas of sales, marketing, operations, engineering and human resources as part of an approved and carefully managed plan which sees our investment pace in line with our expected growth. We will not be raising further capital in FY '22 and possibly not for a very long time, if at all. The business will deliver its goals and growth aspirations on its existing capital reserves. And whilst we are forecasting a negative EBITDA performance in FY '22, we see this returning to profitability in FY '23 and beyond but, importantly, with continued accelerated revenue and ARR growth moving forward. Our core focus in FY '22 is investing in order to deliver ARR growth in line with the analyst estimates of reaching $20 million annualized recurring revenues by year-end. We're asking investors to continue to support us. We thank you for your continued patience. We are on track and are executing successfully against our plans, with the expectation of a significantly higher revenue growth being delivered in the second quarter and throughout the year. So with that, I thank you for your time today, for your ongoing support of Skyfii as we look to deliver a record year in financial year '22. I will now hand you back to our Chairman, Andrew Johnson.

Thank you, Wayne and John, for your presentation, and we will now move to the formal part of the meeting. The Notice of this Meeting has been circulated to shareholders as required by the Australian Corporations Act of 2001. And unless there are any objections, I will take the notice as read. During the meeting, online attendees can submit questions at any time. [Operator Instructions] Please note that while you can submit questions from now on, I will not address them until a relevant time in the meeting. Please also note that your questions may be moderated or, if we receive multiple questions on one topic, amalgamated together. Finally, due to time constraints, we may run out of time to answer all of your questions. If this happens, we'll answer them properly by e-mail or posting responses on our website. I would like to mention at this time that all Skyfii directors as well as our audit partner, Graham Webb from Hall Chadwick; and legal adviser, Rick Narev from Narev Advisory, are available to speak today if you have any specific questions for these individuals. Voting today will be conducted by way of a poll on all items of business in order to provide you with enough time to vote, I will shortly open voting for all resolutions. At this time, if you are eligible to vote at this meeting, a new voting tab will appear. Selecting the tab will bring up a list of resolutions and present you with voting options. To cast your vote, simply select one of the options. There is no need to hit a submit or enter button as the vote is automatically recorded. You do, however, have the ability to change your vote up until the time I declare voting closed. I now declare voting open on all items of business. The voting tab will soon appear, so please submit your votes at any time. I will give you a warning before I move to close voting. I will now move to the voting on resolutions. As I move through the resolutions, if you have questions, please type your questions into the Lumi platform, and we'll try to answer all questions as they relate to the resolutions or at the end, prior to the close of the meeting. The 2021 annual financial statements to noting no resolutions. Skyfii accounts for the year 30 June 2021, and the reports of the directors and auditors thereon, have been electronically distributed to members. I'll now table these documents and note that a resolution is not required. Are there any questions in relation to the accounts or the reports? Thank you. Resolution 1, remuneration report. The Corporations Act 2001 requires a resolution to put to the members to adopt the remuneration report as disclosed in the annual report. The vote on the resolution is advisory only and nonbinding. The resolution gives the members the opportunity to ask questions or make comments concerning the remuneration report during the meeting. Are there any questions in relation to the remuneration report? Whilst I'm prevented by changes to the company's Corporation Act 2001, and including any votes cast on this resolution by any director or member of the company's key management personnel or their related entities, I am allowed and will be casting any undirected proxies by all other parties in favor of the resolution as is permitted and was noted by the shareholders in the Notice of Meeting and proxy form. I propose the resolution. Is there any discussion or questions? So the proxies received for resolution 1 are onscreen. So I put the resolution to those who have not already voted, so please put your votes via the Lumi platform. I declare the motion carried. So I'll now hand the meeting the Chair of the meeting over to Mr. Arthur as the next resolution relates to myself. Wayne?

Thank you, Andrew. Resolution 2, reelection of a Director, Mr. Andrew Johnson. Resolution 2 deals with the proposed reelection of Mr. Andrew Johnson as a Director of Skyfii. I highly recommend to shareholders that they support this resolution. Andrew has been an integral part of the Skyfii Board of Directors since the company listed in 2014 and, over the past 3 years, as Chairman. His strategic guidance and strong governance are critical in the execution of the company's current 3-year plan and as a shareholder who shares a strong belief in the company's current trajectory. Is there any discussion or questions? The proxies received for resolution 2 are onscreen as follows. I put the resolution for those who have not already voted, please put your votes through via the Lumi platform. I'm delighted to declare the motion carried as an ordinary resolution and congratulate Andrew on his reelection to the Board of Directors. I'll now hand back to Mr. Andrew Johnson.

Thank you, Wayne. We'll now move on to resolution 3, election of a Director, Ms. Kirsty Rankin. Resolution 3 deals with the proposed election of Ms. Kirsty Rankin as a Director of Skyfii. I highly recommend to shareholders that they support this resolution. The company conducted a wide ranging and, let me say, exhaustive search activity for a new nonexecutive director, and we're delighted when we found Kirsty. Kirsty is a proven CEO and public company executive, having recently returned from a 6-year stint in the U.S. as a senior global executive at Mastercard. Kirsty spent 16 years as CEO of a 500 full-time equivalent loyalty marketing company with revenue of $500 million and 6 regional offices in Asia Pacific. The company was acquired by Mastercard in 2014. Kirsty brings a great deal of energy and enthusiasm to Skyfii together with global experience in data-driven insights, digital transformation, loyalty, customer engagement and new product development across multiple industries, organizations and geographies in both B2B and B2C; a deeper understanding of governance together with significant expertise in data governance, including data security, privacy, integrity and database management. Is there any discussion or questions? The proxies received for resolution 3 are onscreen. I put the resolution to those who have not already voted, and so please put your votes through via the Lumi platform. I'm delighted to declare the motion carried as an ordinary resolution and congratulate Kirsty on her election into the Board of Directors. Resolution 4 deals with the proposed election of Mr. John Rankin as a Director of Skyfii. I highly recommend to shareholders that they support this resolution. John has, for some years, played a senior executive role as COO and done an excellent job in what is always a most demanding role. He has displayed both great commitment to the company and demonstrated a very significant ability in sales, managing acquisitions and generally operating the business. His elevation to becoming a director is well earned, noting that, for some years, he has attended Board meetings as a senior executive, always displaying a tight understanding of all aspects of the business and sound judgment on a very wide range of subjects. Is there any discussion or questions? The proxies received for resolution are shown onscreen. I put the resolution for those who have not already voted, so please put your votes through via the Lumi platform. I'm delighted to declare the motion carried as an ordinary resolution and congratulate John on his election to the Board of Directors. Well done, John. So resolution 5 deals with the proposed refresh of the executive option plan, or EOP, that was adopted by the company initially in 2018. Let me make some relevant observations. Very ably led by Director Sue O'Malley as Chairperson of the Remuneration and Nomination Subcommittee of the Board and well supported by Tanya Menzel, our newly appointed Head of People, we have recently executed the most thorough review of executive compensation ever done in this company. A confident piece of work has been completed and has been reviewed in detail by the full Board. In my judgment, we now have an excellent way forward, ably balancing the interest of shareholders with what is required to attract, retain and motivate top level talent in what is increasingly becoming a most demanding employment environment. Skyfii can only achieve world leadership, which is very much our plan, with the best people in each of the disciplines we require. To do this, we must have an appropriate remuneration system while recognizing the need to conserve company funds and minimize dilution. I believe Sue and Tanya and their team have achieved this. Is there any discussion or questions? The proxies received for resolution 5 are onscreen and shown. I put the resolution for those who have not already voted, please put your votes through via the Lumi platform. I declare the motion carried as an ordinary resolution. Resolution 6 deals with the proposed refresh of the employee share plan, or ESP, that was last refreshed by the company in 2018. My comments related to the previous resolution apply here. We fully recognize the need that all companies have of attracting, retaining and motivating top talent, from my experience, relevant in all companies, that's absolutely critical in a high-tech entity operating worldwide against very competent competitors. So we need to get our remuneration arrangements right while respecting the rights and expectations of shareholders. I believe we have the right balance here and, accordingly, can fully recommend the acceptance of this resolution. Is there any discussion or questions? The proxies received for resolution 6 are onscreen and shown. I put the resolution for those who have not already voted, please put your votes through via the Lumi platform. I declared the motion carried as an ordinary resolution. Resolution 7 deals with a proposed issue of executive option plan shares up to a maximum of 2.5 million shares over 12 months to Managing Director and CEO, Mr. Wayne Arthur. The nonexecutive directors are of the view that it is appropriate that the Chief Executive Officer and Executive Director be entitled to be granted EOP options as part of the company's remuneration strategy for the CEO. I highly recommend to shareholders that they support this resolution. Wayne continues to deservedly receive the full support of the Board in doing a great job as our CEO. I've never seen, in a long corporate career, such dedicated effort. Also, more importantly, he's leading the team to get the results we need. Is there any discussion or questions? The proxies received for resolution 7 are shown. I put the resolution for those who have not already voted, so please put your votes through via the Lumi platform. I declare the motion carried as an ordinary resolution. Resolution 8 deals or the proposed issue of executive option plan shares up to a maximum of 2.5 million shares over 12 months to Executive Director and COO, Mr. John Rankin. The nonexecutive directors are of the view that it is appropriate that the Chief Operating Officer and Executive Director are entitled to granted EOP options. I highly recommend to shareholders that they support this resolution. I spoke earlier in recommending John for appointment as a director and my comments apply equally here. John is a talented individual and it is, in my judgment, very much in shareholders' interest to ensure he is fully motivated to achieve what we all want as shareholders, a growing, profitable business with a share price that properly reflects the true company value, and he's also fairly rewarded for his efforts in what is a most demanding role as COO. Is there any discussion or questions? The proxies received for resolution 8 are shown onscreen. I put the resolution for those who have not already voted to please put your votes through on the Lumi platform. I declare the motion carried as an ordinary resolution. Finally, Resolution 9, shareholder approval for the directors to issue new securities up to 10% of the company's existing shares on issue without the need for shareholder approval. Now the directors can already issue up to 15% of the company's existing shares on issue, so the approval of this resolution 9 will, in effect, give the Board approval to issue up to an aggregate 25% of shares on issue. The argument for supporting this resolution is based in delivering the Board the maximum flexibility it can achieve to raise working capital in a timely responsive fashion. Rest assured, the Board exercises its decisions in this regard extremely carefully. There is a lot of detail about this resolution in the Notice of Meeting, and I note, in particular, that a special resolution that is greater than 75% of votes cast must be achieved for the resolution to be successful. Is there any discussion or questions? The proxies received for resolution 9 are onscreen and shown. I put the resolution for those who have not already voted to please put your votes through via the Lumi platform. I declare the motion not carried as a special resolution. Let's move to other business. That concludes the official business of the meeting. Prior to closing the meeting, I would welcome other business or questions from shareholders. Does anyone have any further questions to the Board? We'll also pick up any ones that have been provided. Okay. That concludes the business of the meeting. I thank you all for your attendance, and we'll close the meeting at this point.