Celebrus Technologies plc (CLBS.L) Earnings Call Transcript & Summary

Good afternoon, and welcome to the Celebrus Technologies plc Final Results Investor Presentation. [Operator Instructions] Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Bill Bruno. Good afternoon to you.

Good afternoon to you as well, and thank you, everybody, for taking some time today to hear our results from the prior year ending on the 31st of March. Ash and I will be spending quite a bit of time today largely spent by Ash walking through all of the various financial changes in addition to the results from the previous year, but during the trading update in April, we also walked through an extensive list of adjustments that we're making going forward to the business with regards to things like our revenue recognition, this previous financial year being the first year fully in U.S. dollars and several other elements that we'll walk through today in depth and help you understand the differences and the changes and what that means and where to focus on from a business perspective to align with what we view as being both strategic to the business, but also what we view as being the most value generating for shareholders going forward. So with that, I will turn things over to Ash, and we will start with some financial highlights and walk through some of these accounting changes. As mentioned, the Q&A tab is open. I'm keeping an eye on that on my screen here. So as you do have questions, feel free to throw them in there, and we'll address them either in the moment if it makes sense or we'll wait until the end, and there will be ample time at the end as well for you to submit a variety of questions, for those of you that have attended these before, we usually try to make sure that there's way more time to answer your questions than there is for us to do the speaking. So with that, Ash, I'll turn it over to you, sir, and you can give it a go.

Thanks, Bill. So let me just run through the financial highlights, and I'll go into some of these points in a bit more detail in the subsequent slides. Also the key point as we kick off is really about the accounts being presented in U.S. dollars for the first time. I'll talk about why that is. And I'll also talk about the changes we have already made in the current year that we're reporting and the changes we'll be making from the year that just started the first of April 2025. But on a historic basis, the key points are that ARR was up almost 14% to $18.8 million. This is under the new definition, and I'll come and talk about that new definition and why we changed that definition. Total revenue in the year was $38.7 million compared to $40.9 million last year. The headline revenue is really kind of -- there is the degree of lumpiness to it, and that's because of hardware sales that we made historically where we recognize the revenue on those hardware sales, but then we have a very small profit margin. So what we tend to focus on is the software revenue, and that was up to $30.3 million, up from $27.7 million the year before. So a 9.4% increase. The gross profit margin, again, is affected by the low margin on hardware. That's why we tend to focus on the software revenue gross margin, That has gone up this year to 75% from 72.8% last year and from around 68% a few years ago. So the work we were doing in terms of making the business scalable and getting the efficiencies within the business is kind of paying off in the software margin. That also is going to change in this current financial year, and I'll talk about what that change is and why it's important for you to understand. The PBT of the year was $8.7 million and the statutory profit before tax after all the noncash charges was $7.3 million, both of those up on last year. And that gave us an adjusted diluted earnings per share of $0.1824. So all of these numbers, if you remember, are in U.S. dollars, we are now reporting EPS in cents although when you see the annual report, you will see the EPS also in pence if you want to look at it that way compared to the share price, that may make sense. The share price obviously is still in pence. And the dividend also, we will continue to pay as a GBP amount. So the amount we're proposing for the final dividend this year is 2.32p, and that makes a total for the year of 3.27p and that's an increase of 3.8% compared to last year. And if you follow the company for the last few years, you'll know we have a very healthy balance sheet. Our year-end cash position was $31.5 million. That's down from last year, and that's basically due to an unwinding of the debtor and creditor position, again, related to third-party hardware which again distorts our cash flows and our working capital. And I'll talk again a bit later about why that's important to kind of flush out, if you like, in terms of how we view the business and how we report it. So 10, 15 minutes on accounting and reporting changes. The driver behind these has been the increased visibility and transparency we want to give to investors to be able to understand the business better, to be able to see the growth and the changes in the business more clearly. And I think it's fair to say in the past where we've had some of this reporting, we've had buckets of revenue or ARR aggregated between the Celebrus business and the non-Celebrus business, as we call it. So some of the historic customers that we've had for some time, that has perhaps been a little bit confusing. So now we're going to split all of that out. So let's just touch on the USD reporting first. So that's effective in terms of our reporting from this round, effectively, but in full from first of April 2025. And there are 2 drivers for this. Firstly, as the business grows and most of our customers were there in the U.S. or whether they're in Europe or in Asia Pac even prefer to contract in U.S. dollars. And that's probably because for the large part, they also report their numbers in U.S. dollars. So every time we win a new contract, we need to set up a forward FX contracts to hedge the risk if we're reporting in GBP. But of course, as the business grows, that becomes very unmanageable, in that every time we sign a new deal or an upsell or even a renewal, we then have to put in place the 3 FX hedges effectively. So...

And the reason for that -- sorry to interrupt, Ash, I just want to -- just in case others are unfamiliar to reinforce this point. Our standard commercial model with the customer, whether it's a new customer or a renewal of an existing customer or even an upsell in an existing customer is on a 3-year commitment basis, noncancelable. So that is any time we're signing on the customer, it's a 3-year deal that comes into play, hence Ash's point about having 3 forward-looking contracts.

So by reporting in U.S. dollars, we effectively negate that FX risk. Obviously, internally, what we've done at the start of last year was converted our GBP cash holding to a USD cash holding for the large part, obviously, we retain an amount of GBP for our U.K. cost base. But that cost base is now effectively hedged. So at the start of every year, what we're doing is rather than putting in place USD FX contracts for every single customer contract. We're now putting in place 12 GBP contracts, knowing the amount of GBP we're going to spend every month because it's basically our staff and our office expenses in the U.K. With hindsight, this is the right time to make this change. Obviously, the volatility of the USD against GBP over the last 6 to 12 months has been pretty shaky, very volatile. So we effectively avoid early risk around that by changing to USD reporting. The second change, which you will have seen in the announcement is our definition of ARR. So as I said earlier previously, we've shown a single metric, which related to all of the group's recurring activities, both the Celebrus platform activities and the non-Celebrus. And that has been a bit confusing. So what we're doing now is we're breaking it down not only to a narrower definition of ARR. But even within that, we're going to split down the ARR. And there are 2 main components to it. One of the components is the Celebrus software licenses, but that also includes the support and maintenance, the Celebrus cloud. And the reason for that change is that for the last 18 to 24 months, when we've issued quotes to potential customers, we've issued them as a single number. So rather than previously having had licenses and support maintenance and Celebrus Cloud as separate lines, we view this now as being a single offering and so for that reason, we're issuing a single number, which also speeds up the sales process somewhat. And it's more understandable where the customer in terms of their budgeting and allocation of costs. So everything Celebrus-related is 1 segment of our ARR and then the other segment is managed services, and this could be sort of -- it's mostly non-Celebrus. So that gives you a clear definition as you're looking at the core of the business that we're growing, the Celebrus business, you can then see not only has total ARR growth, but how much has the Celebrus ARR grown because that really is the value creator for shareholders in the long term. Okay. So that's the definition of ARR. So these are changes already in place in the announcement you've seen today. Let me just go on and talk a little bit about the changes in future reporting. So our revenue recognition is changing. Historically, we have recognized each component of the items I described. So whether it's license or support maintenance or Celebrus Cloud in slightly different ways. So support and maintenance and Celebrus Cloud were recognized month-by-month because that's effectively how the service is delivered. But the license was recognized in a lump sum each year. So in a 3-year contract, when we signed a contract, we recognize the whole of the license fee for the first year in that month. And then we would recognize year 2 a year down the line and year 3 in a lump sum, 2 years down the line. That gives an element of lumpiness and that's part of the reason why we've had a bias between the first half and the second half revenues. And by going down this approach, we negate that sort of bias over a period of time. There's a transition period as described to you. And basically, it's more reflective of what we're doing, which is effectively a SaaS-like service and not splitting down the different components of what we're saying to our customers. So the impact of that is that for this current year, we will see revenues lower than they would otherwise have been. And I'll give you an example of why that is. We have a number of our renewals coming up in December, and that was the reason for the first half, second half weighting. Historically, we would have recognized 12 months of revenue from those contracts in December for the months of January, February and March. Under this new basis, we'll -- sorry, we would have recognized the full year. Under the new basis, we will just recognize 3 months. So the impact on this year's revenues is taking those contracts down by 9 months or depending on when they renew. So that has quite a material impact on our revenues. That will happen also in the following year and it will happen in the year after that. But because we have 3-year contracts, it takes 3 years effectively for it to flush through. The biggest impact is in this current financial year, and then we'll see a slightly lesser impact in the next year and a lesser impact still. And that's why when you look at the analyst numbers, you all see numbers going out to FY '28 because FY '28 effectively is the most kind of normalized income statement with all of these sort of revenue recognition transitions having passed through. An important point around this is that our contractual terms with our customers don't change. This is just a revrec matter. So the customers will still contract for 3 years, it will still be noncancelable. They will still pay annually in advance. So in that sense, it's not like what some people might consider as a SaaS contract. This isn't a month-by-month payment or a month-by-month commitment, everything stays the same. And so our cash flows will generally be positive because we'll always get cash upfront compared to the revenue recognition. Okay. Right, cost of sales. Let's talk about that. Historically, the company had allocated a portion of OpEx into cost of sales. And the reason it did that was under the old business where we had a lot of on-premise customers, and there were a lot of staff connected with those customers, our professional services teams and our managed services teams costs were transferred into cost of sales. So whatever OpEx base we had an amount of that many millions was then transferred into cost of sales. What that meant is that it gives us a margin in the region of 75%, as I described in the previous slides. That doesn't look like a software company, and it's very confusing for investors. So what we'll now do is that we'll keep all of our OpEx in the OpEx bucket, we will not be allocating costs to cost of sales. And the impact of that is to give a cost of sales and a gross margin, which is more reflective of us being now a software company. So margins in the region are 90% plus, which is what you'd expect. That's one benefit. The other benefit is that it will be much easier with all of the OpEx in a single bucket for you as an investor to be able to track our growth in OpEx. And obviously that's something that we keep a close eye on, but it wasn't apparent to investors when you didn't know how much was being allocated from OpEx into cost of sales. So it's going to be a lot clearer. And so what will go into cost of sales now is there are only going to be software costs, related to customer delivery. So these could be AWS costs, out costs, some of the particular software that we might use in terms of some kind of customer delivery. So that will make our income statement look more like a software business, and it will allow investors to track our OpEx growth over time. Hope everyone is still with me. Okay. This is the first slide on the reporting changes, the final slide. Before I move on to something else. And this is really showing how we used to report and have reported for the prior year, the revenue categories. So if you look at the notes to the announcement, you will see the breakdown of revenues is breaking down into licenses, Celebrus Cloud hosting, support and maintenance services. That gives a subtotal of software revenues, which is what we tend to focus on. And then below that, you've got third-party products and revenue. The confusion, I think, for investors was that the licenses category included Celebrus licenses and also some non-Celebrus licenses and the same for the other categories as well. So you couldn't really discern what the underlying growth in the valuable Celebrus business was. So we've clarified that alongside clarifying the ARR. So the new categories we'll have will be a Celebrus software line and that will include, of course, the licenses. It will also include the cloud. It will also include the support maintenance, but anything related to Celebrus product and delivery will be in a single category and then we'll have a second category of managed services, which are principally non-Celebrus. So you'll be able to see the difference between those 2 services, there might be some Celebrus and there might be some non-Celebrus in that category, but the Celebrus amount is reducing. And the reason for that is that increasingly, we are including a services element in our overall quote to customers. So rather than if they need extra work done during the year on going back every time for a segment of work to be signed and approved, we will just have a budget within the Celebrus software line that we can use for small projects like that. Third-party products always was non-Celebrus. So this will give you much greater clarity in terms of what the service revenues are, how they're growing. And you'll also then be able to link that line into ARR because these pretty much map to each other. What you should note in future is that the revenues on Celebrus software will always lag behind the Celebrus ARR because, of course, if we signed something in month 12 of the year, we'll have the ARR in our numbers for that contract, but we'll only have 1 month of revenue, for example. So this is like a lagging sort of indicator. But again, this clarity allows you to see what the underlying growth in the core business is. Right. Let's talk about last year's results. I think I've talked about most of the numbers on this slide actually. And of course, some of them aren't going to be that relevant going forward because we're going to be changing them. The GP percentage will change. It'll be more up in the 90s for the software revenues. The OpEx is going to change because we won't be doing a reallocation into cost of sales. The one point to draw out on here is our interest income. We have a healthy cash balance. We proactively manage our cash very well. We put money down for interest on an overnight 7-day, 2 week and 1 month, and occasionally 3-month basis depending on our cash flow forecasts. And that allows us to effectively arbitrage between the different periods and that has then resulted in an interest income in the year of $1 million. That, depending on interest rates, going forward, will probably reduce. But we maintain a healthy cash balance, not necessarily interest income, but also for the kind of perception of vendor risk. And what I mean by that is that large companies will look at us as a relatively small company and as they sign the 3-year contracts, someone in procurement will talk about vendor risk that it is coming going to be around in 3 years, having the healthy balance sheet we've got with lots of cash and no debt gives our customers reassurance. And that's evidenced by some of the customers we have, large names who have been with us for 5 to 10 years. Moving down below the adjusted PBT, I think the main point to draw out here is the tax line. So you'll see a tax charge of just over 14%. Last year, I told you about the rate of 28%. That was higher than the corporation tax rate of 25%. It was higher because we had some nondeductibles in the U.S. We've done a lot of work in the last year in terms of refreshing our transfer pricing agreements. But the most important thing we've done is a lot of work into the utilization of the patent box regime. So for people who don't know, there's a regime in the U.K., which basically allows us to use our patents and our IP for a tax deduction. And that tax deduction is connected to the amount of revenue we derive from that IP. And the more revenue there is, the bigger deduction we get. So we have now having done that work. we have utilized that for FY '24 and FY '25, and that's why we have a low tax charge this year of 14%. In future years, you should expect the tax rate, ordinarily, obviously, will be around 25% because that's a corporation tax rate, maybe with nondeductibles it will get a bit higher. But with the patent box regime, we're looking at a tax rate which is probably around the 20% level. That's what we're targeting. And the other point on here, I think I've talked about the EPS and the dividend. Just a final point on the dividend. We don't anticipate growing it strongly. It will grow typically 3% to 4% per annum. We think that's a fair balance between investors we have who like the dividend, who think it's a good discipline, perhaps we rely on it for some part in terms of their sort of outflows to investors. But we don't anticipate growing that any faster or do we anticipate paying any special dividend anytime soon. And on that point, let me just talk about balance sheet because the most important point in the balance sheet, if I can get there, is our cash balance, as I said, $31.5 million at the year-end. In terms of the rest of the balance sheet, there's not a whole lot of change. It's a pretty stable and a pretty clean balance sheet actually. The receivables come in and go out, the cash comes in. We don't have any bad debts. Customers pay us within 60 to 90 days, depending on whether it's direct or indirect. The one notable line you do see there is that this time last year, we had inventories those have now moved out and we've got, in fact, in April of last year. That just happened to be some inventory we had on the balance sheet. So that was part of the reason why we had high level of trade and other payables as well to pay for that inventory and that's gone down to a normalized level. That was also part of the reason why we had deferred income as well because we had been paid for that inventory, but we haven't paid for it. And then the other noticeable item on the balance sheet is the assets held for sale. So you remember we had got our property up in the U.K., up for sale and that has generated around $4 million, a bit less net after costs. That's broadly book value. So this doesn't affect our adjusted profit before tax, but it does mean there's another $3.8 million of cash on our balance sheet. And on the cash flow, so the key point here is the working capital movements. I described those just in the previous slide. So we had the deferred income because we've been paid for the inventory, but we haven't paid for it. So it's kind of like a duck whammy, if you like. So we recognize the revenue from the deferred income, that's an outflow effectively. And then we've also actually we paid for the inventory, which we haven't paid for. So we're double whammy there. Going forward, we should see that normalize. So with the hardware that we have for customers, we buy it and then we sell it. We're now looking at moving at some point to an agency model where we would still take the margin on that hardware. And typically, it's around 15% but we would not recognize the revenue nor have the costs because we wouldn't really be buying the hardware and selling it, it would be on an agency basis. We get the margin still, but we wouldn't have the cash flows going in and out, which distort our cash flows as well. Other items in the cash flow, obviously, in the sale of freehold property, I talked about. Capitalized development costs you will see have gone up. So typically, historically, they've been about $0.4 million. They've gone up to $0.6 million this year. We anticipate those going up further in the future, perhaps to $0.8 million or beyond. And the reason for that is that much stricter now on capitalized development costs. So we've resisted up to now. But I think we have to accept that we're going to have to capitalize more. Obviously, that's slightly sort of flattering to our income statement, but not a whole lot. It's not very material in that respect. But that will be growing in the coming periods. On the financing activities, our dividend typically $1.6 million a year. Last year, we did a buyback. That cost us $400,000, we've just announced earlier today that we're doing a further buyback this year, and that's effective as of today. And then there are some other items on the financing activities. But the net result of all of that is as expected the cash has gone down. And so we started the year at $38.8 million. We've come down to $31.5 million. And if you look at the level of the correct debtors and the creditors, that is now a normalized balance without the strange movements related to buying or selling the hardware. And the group remains debt free. We don't anticipate any on any debt in the near future. Okay. Annual recurring revenue. So again, this is on a new basis. So you can see more clearly now how much of the ARR is Celebrus and how much is not. And when you look at this slide, pretty much this is -- these movements are Celebrus movements. The non-Celebrus part, we split it out because we're not focusing on it, we're not intending to grow it although it might grow as a result of inflation or other small upsells. But our focus is solely on the Celebrus ARR. So the movements here, as I said, largely Celebrus ARR, you'll see that opening balance of $16.5 million. We have some good new wins during the period. That added $1.7 million. We had some good upsells, that added $1 million. But then we've had a few small downsides as well. So some customers, end customers, we've lost, they were through partners, principally in Asia Pac, and South America, where we haven't got as close sort of contact with the partners or rather with the end customers, but these are relatively small amounts. We did have 1 loss during the year of our own customer base. This is coming through restructuring and basically the team that was working with us basically downsized and that resulted in our loss. And as we've done in previous years, although this is probably the last part of it, there have been customers where we've tried to renegotiate and increase the price of moving to a cloud model and we haven't been able to. And we feel we're not making enough profit on that customer. So again, we'd rather be putting our resources, where they're going to get the best returns. And these customers are often the smaller customers, are the most kind of time consuming in terms of support as well because they don't have that sort of internal support themselves. So some small losses, but that takes us at the end of the year to $18.8 million in terms of ARR. $5.2 million of that is non-Celebrus and $13.6 million is Celebrus. And you may have seen this morning the second announcement where we talked about 2 new wins in the first quarter. Those were a contract value of $4 million, that's $4 million over 3 years, but the immediate impact on ARR is $1.1 million and that takes us up to about $20 million. And the significance of the difference, i.e., 1.1x 3 is 3.3 not 4, is that increasingly, we're building in a growth element into our contracts. So in the first year, there might be a lower ARR, but there will already be a contractual agreement that the ARR will go up to a certain amount in year 2 and a higher amount in year 3. So that's ARR, we already have kind of banked, if you like, in the contract. We don't disclose it. Obviously, we disclose it at the point where it kicks in.

Thank you, Ash, for that. And I see a bunch of questions coming through. We will get to these, so stay with us here. Hopefully, what you've gathered from that though is how much work is coming in from Ash and team, and the Board in making the company as transparent and easy to understand is possible. Our primary focus is to grow the Celebrus software business. We've now provided hopefully, what you've seen from here and what you'll see in the interims for this current financial year that we're now in, is a much cleaner breakdown of that to be able to understand where the growth is coming from, what's really driving shareholder value and where we're focusing our efforts. From an operational standpoint, I'll cover off some of the things that we did in this past year and give a little bit of a story around that. And then I'll also talk a little bit about the contract win announcement as well on the following slides. So we had a couple of key wins that we did announce throughout the period. One was a global airline adding to our list of airlines that we work with now around the globe. This is a top 2 global airline, where ultimately, we were able to deliver data to them in a structured way that they've been unable to do with any of our competitors for many years. That airline is now exploring several upsell opportunities with us. And we've been doing with many customers, what we've been doing now that we've invested more heavily in our customer success team globally is we've been doing a lot more sort of guided art of the possible type discussions with every single customer. It doesn't matter if you decide to deal with us yesterday, signed the deal with us a year ago. What we're trying to do on a regular cadence, given that we're putting out 2 updates to our software platform every year, is having an art of the possible where we're sort of helping clients understand what they're using now, what they've paid for in terms of license and features, what they're utilizing, what they're doing or not doing that other customers are doing and then ultimately helping to educate them on what's new in the platform as well. And then we wrap that up with kind of a final sort of feedback session that we can then incorporate into our own road map as well. Both this airline and the Fintech business have contributed not only in those what I just outlined, but also to the road map and some things that we've been working on for both businesses that has turned into commercial opportunities for us that sit in the pipeline today that we're working to close. Our customer success team, we brought on a VP of Global Customer Strategy to oversee not only the customer success team, but to really bridge the gap between what sales is doing in landing a client and what delivery is doing in terms of delivering what that client needs for that initial project and making sure that we have -- we use the term North Star a lot internally to make sure that we have a North Star for every single one of our clients, it helps align the whole team so that every team knows when they're in a conversation with X client, what it is we're trying to achieve, what it is we're pushing for or what it is that client is looking to achieve this year in line with their strategies. And that's what's led to several of the upsells that are listed here across the financial services and airline as well as another APAC financial institution as well. As a business, we talk about the business very simplistically now. And from a marketing perspective, if you've sort of navigated around our site and at any point in time, even the investor content in the last, I'd say, 3 months, you've probably noticed a major facelift and a much more close alignment of the investors' pages with our traditional, I'll call it, marketing-facing pages of the site and all of the content that we're creating on a daily basis. The reason I bring that up is because that contributes to 1 of our 3 main pipelines in terms of how we look at the business. The first is obviously our marketing. We revamped and brought on a new Head of Marketing about a year ago to help up level how we were marketing the business and really bring a good level of background and maturity to how we do things. That's allowed us to launch several campaigns, both of the advertising and e-mail variety as well as rebuild our social presence, if you're not following us on LinkedIn, as a company then candidly you're missing out of a lot of great content, a lot of updates every single week. We've gotten very consistent with that. And what that's turning into is people reaching out to us, wanting to learn more about our software. And that's one of our key pipelines is utilizing everything that we're doing from a marketing standpoint to find new leads that can be handed over to sales and ideally turned into new customers. Obviously, from a sales perspective, we've stood up our direct sales team. We continue to fine-tune that. We continue to make adjustments and learnings along the way. We've stood this up from scratch over the last few years, and that's another core pipeline for the business. And then the third pipeline is partner sourced and influenced leads. And this is both from our technology partners as well as our consulting partners. I'll talk a little bit about that as well as we get into some of the stories here. As Ash mentioned, the revenue transition and switching to monthly recognition of the software licenses was something that we chose as a Board to do this year with those renewals coming in. And candidly, it's something we would have been forced to do in the next year or 2 anyways because we have fully transitioned the Celebrus Cloud as our primary deployment model for the platform, no longer offer on-premise. We don't even want to offer the customers choosing to host our software. Candidly, it's better for us and for our customers if we're utilizing the IP and the automation that we've built in partnership with AWS to deploy our software quickly. One of the wins that was in a contract win announcement that I'll come on to in a moment, is a good example of this, and I'll talk through some of the deployment time lines there. We do continue to invest in the Celebrus platform. We are continuing to launch 2 updates a year. In many cases, that's 2 more than our competitors are doing in a given year, and that is driven by 3 factors, and will always be driven by 3 factors. One will be what we're seeing in the industry. We have a lot of people and we're blessed to have a very strong team internally of people that have been in the industry, understand the industry and understand where the industry is going and that is a great driver for where we innovate our platform. A good example of this would be us launching specific support for 2 mobile frameworks and SwiftUI and Jetpack Compose that make up a large part of mobile development these days that other marketing technologies struggle with, and we're now able to bring our auto instrumentation or what we call frictionless data capture into those modules for customers that have developed their mobile apps in those platforms. And we also -- one of the comments that Ash made earlier with regards to some of the transition of the business. We had an opportunity for some of our on-premise customers to restructure and transition away from reselling third-party software. There's been a lot of good discussion with this with our investors that we've been face-to-face with even this morning ahead of this. But the main driver of this is quite simple. It's not our software from a valuation perspective of the business as we're looking to march towards $0.5 billion in market cap as our next sort of strategic valuation. That's not going to come from the selling of hardware. It's not going to come from the selling of our people's software. There's no intellectual property in that. It's going to come from growing our Celebrus software license revenue. And that's our core strategy. That's why we've broken out the finances and the revenue reporting. And then you have new categories that Ash walked through is to focus everyone on what matters, which is that Celebrus software line item and ultimately the ARR associated with that. Move to the next slide there. So from a key win perspective, I've talked a little bit about FY '25. We had some really great upsells. We had some really great new logos. What I'll focus on now is the new wins that we announced in tandem to the RNS this morning about our results. We have a U.S. fintech, very cool use case actually. And one that has really allowed us to innovate our analytics platform investments, specifically the digital analytics and the Meta-based investments that we mentioned in previous releases of the product and it was geared towards helping them optimize their paid media spend in terms of the advertising, ensuring that they're putting the right ads in front of people, but also that they're not paying for ads for people that don't need to be advertised to. So there's -- in any paid meeting optimization project, there's always sort of a cost benefit of doing things more wisely, if you will. As well as an optimization of getting the right messages in front of people as well. And it's been a really strong feature of the product. We brought some innovation into the product to be able to support this customer, by way of being able to build audiences in our analytics platform that can be immediately sent from Celebrus to things like Meta or Google or any advertising platform that you're choosing. European Bank is another strong win, but highlights a very key element of our platform, and that's our security and our compliance. This bank heavily regulated, very strict when it comes to GDPR and our competitors were unable to meet their needs from a security and compliance standpoint. And we met them -- we met those needs out of the mods without having to do any tweaking, without having to do any innovation. That bank having since signed on and executing the contract is now live across all their websites and mobile apps. It was a very quick deployment, it was a deployment where we were able to get out in front of it because we were able to stand up the Celebrus Cloud environment for them. So where all they have to worry about is putting our libraries live and then starting to utilize the data. We also have a significant amount of pipeline in a variety of different verticals. We've done a very good job of diversifying that from U.K. banks, obviously, U.S. financial services, health care in the U.S., travel and leisure as well. And we're even exploring at the moment, the gambling and gaming spaces as well and are showing some comments there. And that diversification is great. It's allowing us to build better revenue streams from a new business perspective. It's allowing us to explore really interesting targeted offerings with some of our partners. So for example, in the auto sector, we've been doing some work with one of our consulting partners around taking what you do. It's a very -- it sounds very simple, but it's very complicated to actually implement on the Internet. Taking where you're building, if you're on, let's say, a car configurator on a website here in the U.K. And you build a car with a specific color and specific features. But then maybe a week from now, you're on a website that has an ad for that car, and it doesn't match what you looked at. Well, we're utilizing Celebrus to change that, so that when the data from Celebrus would then better inform what ad you see. So that ad is actually the vehicle make and model that you care about, that you just custom built on the website or built recently and the color that you like, et cetera. And it's all about just building relevancy. So that tends to be what a lot of our time is spent on from a marketing and personalization perspective anyways, with regards to use cases. I already covered off most of this, but I would a couple of reminders here. One is as we stand up environments for customers, these are single-tenant private cloud environments dedicated to each customer. It's not -- there's no shared tendency. We don't have multiple clients in the same deployment. We're building these for customers. They're linking this to their own environment. They have full ownership and control of the data. And that deployment model is allowing the customer to get more value more quickly, which is great for all parties, right? It keeps customer happy. But more importantly, it gets them thinking more quickly about all the other things they could do with Celebrus, which is where we -- why we engage our customer success team on day 1 of contract signature, so that we can be engaged with those customers, make sure they're getting value and then more importantly, help them understand all the other places that they could get value so that we can build that North Star for each customer and ultimately drive better revenue. On the go-to-market side of things, we talked a bit about this in the RNS as well, and you'll see some more of this in the annual report when that goes live. But I touched on our restructuring of the marketing team. I am consistently impressed with this marketing team that we've been fortunate to build under Malini's leadership. Malini is based in the states with me. And she has done a phenomenal job with her team in taking on a heck of a lot of work in a very short period of time and doing most of it themselves. It's a small but mighty team, they completely revamped the entire website. They've built a whole new brand identity. They've launched advertising campaigns, things that we've never done as a company at the level that we're doing now. From a partner perspective, we've really done a great job of leveraging consulting partners. That bank in Europe that I was just talking about in the new wins from the win announcement earlier today. We're actually secondary on the implementation. It's actually being led from a prime perspective by one of our consulting partners. And that doesn't happen very often. So that's a model that we want to put in place, and it's one that we're seeing some really great success with this particular partner in that engagement. And we have a few others in the pipeline with other partners that will take that same model. Obviously, that helps us to focus on what we want to do, which is just simply sell software and deliver value without having to scale a delivery team on a like-for-like basis as we close those engagements. We always continue to refine our direct sales team. I mentioned how we've expanded our customer success team and ultimately, how we focused on building and optimizing these pipelines so that we can produce better growth, focused on the ARR that matters and get things moving in the right direction for marketing, from a sales and from a partner perspective. Talked a bit about product development. We've brought quite a bit in, in the past year. We invest each year over GBP 2 million in development costs across the team. Obviously, a small amount of that is capitalized to Ash's point in terms of what we're forced to do in line with IFRS and the audits. But we brought a variety of compliance capabilities to the platform that has helped shine a light in areas where most marketing technologies are unable to stay functional. And as a result, it's really created some interesting differentiators for us in the space. I mean we're live now in about 35 different countries and every vertical is getting more and more security conscious. It's not just the financial services and insurance verticals and health care in the States. It's every vertical and every sales cycle now is talking about compliance, is talking about data, data security, governance, et cetera, and they should be. And that will continue to be something on the forefront of our product. It's something that every client is always surprised by how willing we are to have conversations with compliance teams. It's because we put that as a priority in our platform, and we know that we've invested the right level of time and detail and candidly, the certifications that we get each year around the platform, the code base, et cetera, from independent audits that we pay for has really put us in a great position for that. And finally, there were some questions in here around the platform and the growth of the fraud platform and announcements around the fraud perspective. This is how we view the platform now. We talk about it as one environment. And it's because it is. It was quite confusing to customers years ago that it was all kind of like Celebrus marketing, Celebrus fraud. If you go to our website now, it's all focused around solutions and use cases because that's how we sell it. And we continue to innovate in both marketing and fraud from a use case perspective with some of the models and machine learning that we've put out around bot detection. If you go to our blog or our press releases, you'll see quite a bit there, including in the case study section, that sort of outlines quite a bit that we've brought in terms of features and functionality. And so clients when they're investing in us or their upsells or even new customers, we're just packaging up the features that they need to deliver the value that they're looking for. We don't even really talk about it internally anymore in terms of is this a fraud use case or a marketing use case. We obviously keep track of feature usage and utilization so that we can do the art of the possible discussions that I mentioned before, but we've seen quite a bit of growth, particularly the data science and data modeling side from a fraud perspective across our customer base as well as the bot detection models. With that, I think the final comments are around outlook. We obviously didn't get to where we wanted to in this previous financial year in terms of new business. There's no high from that. We didn't hit the mark from a sales perspective. We didn't optimize the pipelines, the 3 pipelines that I've talked about today in the way that we wish we had. We've now put corrections in place to do that. We started this year -- this current year strong with some good wins. There's quite a few more behind that, that we're currently working through. So we're quite happy with the momentum that we've taken into this year despite the slowdowns that we saw in Q4. We've got a strong pipeline. We've got ARR now with -- as a result of those new wins just shy of $20 million. We know the numbers that we have to hit. We've got the teams aligned on that and incentivized on that, and we've got a strong pipeline to help us get there. So from a Board perspective, from my perspective and the leadership team's perspective in the business running at day-to-day, we feel pretty good about where we're at and where we're going with the sole focus on growing Celebrus software revenues in the coming year and in the 3 years that you've seen in the analyst write-ups that have been published today as well. So with that, I think, Ash, unless there's any clarifiers you wanted to throw out there, I think we'll throw things over to questions and come back.

It's just kind of all you said, Bill, and there's a question on the notice board as well, which is how do we know what the analyst forecasts are. Well, actually, if you go to our website, you obviously one of this forecast on that. So you can access that free. So we have 2 analyst write about us, Canaccord and and one of those at least is available. And of course, these are very tightly controlled in terms of what they can publish and can't. But you will see one of the brokers analysts reports on our website, if you look for it.

Thank you, Ash. So with that, please utilize -- there's quite a few questions here. So we're going to kind of rapid fire through this year with the final 12 minutes or so that we have, but please continue to submit them. We've answered a few of them as we go. Probably just start at the top here just in the essence of fairness, first in first answered, so to speak. But we've got a question around ARR you expect the growth rate to change going forward with the impressive ARR growth that we've shown. I think Ash you might be good if you want to -- maybe just talk a little bit about how to think about the forecast and kind of how to think about the ARR growth that we're looking at, if you don't mind?

Yes, sure. Well, let me just say historically, management have been incentivized on delivering ARR growth in the region of 15% to 25% per annum over a 3-year period. That's how the LTIPs are vested or not or to what degree. So that's the kind of range we talked about historically. If you look at the analyst forecasts, you can see what the revenues are in 3 years' time. And you know also if you look at the ARR, what is -- what the breakdown is in terms of Celebrus and non-Celebrus. You can see the non-Celebrus revenue within that. That's a revenue, as I said, we're not going to be focusing on growing. So you could effectively take that or a little bit more than that, take it out of the 3-year forecast for FY '28 from the analyst's forecast. And then the balance is basically the Celebrus revenue. Of course, we're going to be pushing hardware through on an agency basis. And if you were to take that number, that will give you a sense of what's the Celebrus revenue now, what's the ARR now? And what's the Celebrus revenue in 3 years' time. And you can kind of do a broad sum of the ARR growth over that period. But it's within or slightly above the range that has been in our historic LTIP vesting.

Excellent. Thank you, Ash. Got a question here on what are the compelling solutions and benefits that persuade clients to buy your products? So a good question. I think the -- there's a laundry list of them. In the essence of time, there's sort of 3 areas where frustrations come out at a client when we're talking to them. One is around getting the digital data that they need to act upon whatever use cases they care about for their consumers regardless of whether it's for marketing or for fraud. Usually, we find organizations that are frustrated because the platforms that they have aren't able to deliver the data without a bunch of custom code or they've never been able to trust the data or candidly, the platform is unable to capture what it is that they want to capture. And that's been the case for many of the wins last year and even the 2 wins this year, that's been a key driver. The second area is around context and understanding the consumers. We've invested a lot of time and product development into building compliant consumer profiles for when consumers are interacting with the brand's websites and mobile apps. The ability to be able to do that and also make it available instantly is what powers a lot of our integrations with things like Pega, Salesforce and other platforms. It's what helps clients sort of take -- it's the engine that powers the cars in many ways for their technology stack. It's an area that we excel in. The other is structure. When you get into digital data and you read any study, any analysts will talk about how difficult it is to bring digital data together with other data sets. That's not the case at Celebrus. So I've been working with the Celebrus platform for over 20 years now. And before they paid me to say it, it's the only platform that I've never run into an issue of trying to integrate digital data with something else. And it's an area that we're quite confident in, and it's an area that delivers for customers. And so those 3 buckets, if you knock out those 3 buckets from a digital perspective as a brand, it's going to give you, not only -- it's going to give you a head and shoulders above all of your competition that is still continuing to struggle with perhaps the older technologies in the old ways of thinking. And that's -- those are the customers we look for is people that know that there's got to be a better way, they're frustrated and they know what good would look like if they had a technology like ours, and we show them what it can do.