Enea AB (publ) (EED5.F) Earnings Call Transcript & Summary

Welcome to the Enea Investor Update. [Operator Instructions] Now I will hand the conference over to CEO, Teemu Salmi; CFO, Ulf Stigberg; and Osvaldo Aldao, Chief Technology, Product and Marketing Officer. Please go ahead.

Thank you so much, and a very warm welcome to this afternoon's update of our strategy for Enea. This is Teemu Salmi speaking. And in the room, like I was voiced over as well, I have the CTO, Osvaldo Aldao; and also Chief Financial Officer, Ulf Stigberg. During the next 40 minutes, we will give you a bit more deep insight into the strategy that we have launched on Tuesday this week. And then we are saving some 20 minutes for questions and answers at the end. And as usual, it's possible to connect with voice for questions at the end. And you can, at any time, of course, write any questions in the chat of the call. So let's get started. The world around us. Obviously, we see many things happening in the world, some good, but mostly negative at the moment. And many of these trends, even though they might not be so positive for the world, are actually paying Enea quite well in our hands. We see, of course, increasing security issues, and we see increasing warfare. We see increasing technical vulnerabilities from a security perspective out in the world. And in many discussions I have with our existing customers, predominantly in Europe at the moment, they are mentioning to me the question of trust. Am I able to trust my partners of today that they can deliver tomorrow like they are doing today as well? And I see an increased protectionism and a more local regional agenda is being built up. A little bit more discussion about made in Europe for Europe, et cetera. Of course, we see also increasing regulations happening globally and the investments in defense as a result of all this is increasing. And like I said in the beginning, many of these trends are actually paying Enea well in our favor in our hands, given the fact that we have both technology and solutions to tackle these challenges that we see around us in the world. And during this presentation, we will tell you a little bit more about how we see that and how we will position ourselves to tackle and support the world with these questions. On top of the geopolitical trends, of course, macroeconomics, we have that as well, impacting how development is going for Enea and how we predict the development and also where we see that we will invest for the future given the projected development of the economics and the financials in the world. In this slide, on the left-hand side, you can see the predicted GDP growth per region according to IMF. And we can see there that the euro area in this year and next year, which has the least growth is staggering around 1%. While if we move further on to the right side of the graph, you can see that Sub-Saharan Africa, Middle East, Central Africa and emerging and developing Asia are growing much, much faster and there's great potential -- for greater potential for business development. Also there, we see that the potential for Enea for the future to invest are good, and we're also going to cover that discussion later in the presentation, how we are looking and focusing on growing. Lastly, I would say that, of course, we are a company that reports in Swedish krona when it comes to NASDAQ and our results. And we see a continued stronger SEK relative to mainly U.S. dollar and the euro. And since we have a capital profile of having a big portion of our revenues in other currencies than SEK, it, of course, has hampered us this year only quite a lot when it comes to our growth, having the fact that dollar has declined over 15% towards the Swedish krona during 2025 year-to-date. But let's then get a little bit going with the content of our products and also the market view that we have as Enea. And to guide us through that, I will hand over the word to Osvaldo Aldao, the CTO of Enea. So Osvaldo, please.

Thank you, Teemu. As part of this strategy work, what we have done is to look at the market dynamics in the segments where we are present. And as you see here, when it comes to our embedded security software, we have 3 segments where we see growth. The first one is about networking vendors. And what we see is that there is a need for increasing the observability based on our DPIs and advanced analytics to understand in a proactive way artificial intelligence and also proactive anomaly detections. And as you see mark here in the slide, we see a good market size for those as well as with an attractive CAGR or growth in the coming 3 years. The next one is about cybersecurity vendors, and this is a subset where we are looking at the consolidation of both the security and connectivity in a common platform. There is one technology that will be predominant during this 3-year period time, which is this SASE, this security edge, where that will dominate the market and what we see is that Enea is very well positioned to serve that market through our observability tools or DPI and threat detection. And that also has a significant market size with a very attractive 2-digit growth. And finally, we see the governments. Governments due to the reasons that Teemu explained at the beginning, are increase of the need for new tools and to lift the security position when it comes to analyzing threats and attacks into their own country infrastructure, especially critical infrastructure and public service sector. And there, you see growth that we see in that sector and also the market size of that for the coming 3 years. So moving into the next market development or market dynamics on the sector that we are. And of course, you know Enea is a very strong player also in the sector of telecom and CPaaS, this is a communication platform as a service. And in that, we have identified these 4 groups where I think are important for us to describe or to look at where we see the pockets of growth in this. And the first one is about mobile core. Mobile core has an interesting challenge in the coming years, which is that in the coming 3 years, the traffic is predicted to double. Video is still the -- more than 80% of the traffic, the mobile traffic is video. And what we see is that, that traffic didn't peak yet. So that means that, that will keep growing as to the -- as I mentioned, with the outlook to double the capacity. [indiscernible] we have a challenge here, which is that the revenues are not in line to that kind of growth. So there is a need for being more effective when it comes to how to optimize the traffic, how to optimize the delivery of video especially. And for that, the tools that we have in Enea are well suited to serve that. And here, you see 2 different market analysis in terms of the growth that they see. So most likely what we see is that it will be something in between these 2 reference point. On the CPaaS side, we see that there is still a high demand for enterprises or brands to communicate to end users via messaging services and that what will be predominant in that part of the business is this omnichannel, so the capabilities to be able to deliver message through all the possible communication connections, including also RCS and OTTs. Here, again, Enea is well positioned with our firewall to be able to provide CPaaS the possibility to monetize this traffic and also to make sure that it's secure for the user in terms of scam and end user protection. And then if we move into the lower part of the slide, on the left side, you see here the MVNOs and MVNEs that stand for Mobile Virtual Network Operators and Mobile Virtual Network Equipment Providers. And basically, it's a subsegment of the telecom operators vertical. And this one is a quite interesting growth of opportunities because there are quite favorable legislations and in different markets to open up for a very large number of operators that can provide -- can get a license for connectivity or communication services without having to invest in the radio. And our capabilities are fitting very well with them when it comes to how to differentiate the offering, how to improve quality of experience and also how to have quite advanced bidding capabilities or data plans that could make it more attractive than the incumbent operators. And then finally, the fourth segment that we have been looking at from a strategy point of view is the governments. Governments, they have a need to increase the security in the borders of the countries when it comes to incoming communications. And for that reason, I think we have -- we see a number of engagements and opportunities for us to provide some of our technologies to protect those communications in the country in the coming years as well. With that, I hand over back to you, Teemu.

Thank you so much, Osvaldo. And Osvaldo we’ll come back a little bit later on in this presentation and talk about our product fits into these different domains as well. So stay tuned for that. And I just want to also say that, I mean, many of these sectors we have targeted as a strategic growth area. Many of these sectors, we are already strong in, and we are already incumbent and we want to leverage that. And also government, you will see and hear us focus much more on the government sector. It's not a new sector for us. We are already in the government sector with many deployments but we want to accelerate and amplify our presence in the government sector and also ensuring that it's clearly understood what value we bring with the different offerings we have in that specific segment. So thanks, Osvaldo. And moving on from this now, a little bit of the background, a little bit about the market and product and then where do we stand today as Enea, what is our position today and what is our performance? So if you start to look at some of the areas that are important for us to execute on our strategic objectives is, of course, that we need competent and motivated people. Enea is, of course, built as technology company, but the technology is built, supported and evolved by people. So we need to have highly skilled technical people, and we have to have also very motivated people. We have there, we measure on a regular basis how our people feel and how they think about working for Enea. And one of the key performance indicators we have for that is our employee Net Promoter Score that stands at 30 right now with an improving trend. We're happy for that result, but we're not satisfied with it. So we're going to continue to ensure that we give our employees a good platform for growth and to be able to prosper in their work as well. When it comes of customer relationship and global footprint, we are truly strong. We have -- like you also said -- seen on the slide, we have already over 240 customers, very much global. We are present in over 100 countries with our customer footprint. And we have also a Net Promoter Score on 44 with a growing trend. We actually started measuring Net Promoter Score to this year. So we're actually also fairly new with this measurement, but it is continuously growing as we interview more and more customers for the base of the result. Then last but not least, here, of course, financial strength, and we have a strong balance sheet as well. We have the possibility to invest. We have the possibility to accelerate our growth. Looking at the equity ratio right now standing at 71%, we are happy with that, and it gives us also a leverage to invest for the future. Now all the investments that we are talking about is not only going to be a hit on the balance sheet. We have also activities. We'll come back to that when we look at operational efficiencies, where we are also taking out some costs in order to invest that for the future. I said last but not least, the customers. However, we have also a strong portfolio, which we're going to focus a little bit more from the -- on the coming slides. And our key value drivers for our customers is like Osvaldo talked about in the beginning, it circles around security, optimization and monetization. We have to make sure our customers ask for increased security. There's many new regulations putting pressure on our customer segments that they have to live up to. Obviously, spectrum is very expensive for the telco operators. They need to optimize the usage of the spectrum and the cost per byte that they're delivering in their networks. So we have the solutions for that. And then last but not least, the monetization, which we also touched about earlier, how can our customers differentiate to create more revenue and growth for themselves. And there, with the network insights that we can deliver and also other tools we have to offer our customers the possibility to differentiate, we will also give them a possibility to monetize their investments. So when we look at our portfolio, now when we start going into the portfolio and how we see that for the future, we have divided our portfolio in 5 different portfolio areas. It's the network performance and intelligence, it's signaling and messaging security, it's embedded network insights and security. That's part of our portfolio we call our growth portfolio. And the focus for our growth portfolio will be to accelerate our net sales. That's where we will see the growth -- accelerated growth coming. Then we have something we call the classic portfolio, where we have 2 product areas, that's the network access control and our operating systems. Very important part of our product offering. We don't see the high growth in that area, but we have very good and high profitability, which we will focus on maintaining as well for the future. So this is how we will talk about our portfolio moving ahead. And then I will actually give back the word to Osvaldo, who will take us through our product portfolio and our offerings in a bit more detail. So please, Osvaldo, I leave it back to you.

Thank you, Teemu. As Teemu mentioned, we continuously streamlined and find synergies in our portfolio. These are the 5 portfolio areas that we have in our cybersecurity and telecom software portfolio. So if I start from the top left part here, network performance and intelligence, the main value that we provide in our offering here is to help customers to improve quality of experience to deliver a better experience to the end users as well as to make sure that those networks run as efficient as possible in terms of optimization. And finally, to – to provide the intelligence, the visibility of what is going on in the network, what is the traffic, where, as you probably know, more than 90% of the traffic today is encrypted. We provide the intelligence to be able to describe what is that traffic about for operators to take the small decisions in terms of how to prioritize this. On the lower part on the left side, we can follow with that one is -- its very related. We call it embedded network insight and security. And it's basically our DPI ixEngine that is doing the foundation work to classify the traffic and to -- also to connect it to our threat detection capabilities to provide the visibility of the network plus the security and threat alerts to cybersecurity vendors and networking and governments, as I mentioned before. Then if I move to the north part of the slide up in the middle, you’ll see signaling and messaging security. Our offering here for telcos and CPaaS is to provide security when it comes to the communications via messages, any type of text messages from SMS to MMS or RCS and including now the -- from the CPaaS, all the -- what is called over-the-top, like applications like signal, WhatsApp and so on. So what we do is we make sure that we provide compliance to regulations in the different countries for the delivery of the message. We make sure that the players or customers can monetize this service and to avoid bypass or fraud. We also provide security to the end users from scams like malicious link in real time. Then moving to the lower part, you see here network access control. So we also provide security mechanisms in the network to make sure that only authorized users are connected to the network and have access to services, which at the end of the day will be built and charged to -- from our customers. So we provide the security mechanisms to make sure that only allowed users can connect to those networks. And then finally, but not least, we have the operating systems. This is a very traditional part of the portfolio that -- where we provide embedded operating systems and to very large enterprises and technology vendors as well. So just for clarity and transparency here, we have included in this portfolio streamlined mapping, we have included all the products which are part of these different portfolio areas. And if you have -- if you are familiar with our portfolio, what you have seen here is that we have streamlined and combined certain products in order to realize some of the synergies that we see are needed in the market. And Teemu mentioned that the classification of our portfolio between classic and growth. And as you have in this slide, that is also showing in color what is under -- which of the areas is under the growth portfolio, which is all the 3 ones here, network performance intelligence, embedded network insight and security, and the signaling and messaging security. Those are those 3 portfolio areas which are in growth. And then we also have the classic portfolio, which is the network access control and operating systems. With that, I will now hand over to Ulf.

Thank you, Osvaldo. So how is our financial performance on group level and within those different groups. Looking at the past 5 years, we have made 2 acquisitions in 2020 with Aptilo and 2021 in Adaptive. And we can see the growth in those years related to the acquisitions. We also had one divestment, which is excluded in these numbers in 2022. So looking at 2023, 2024 growth numbers here, we can see actually that we had a decline in 2023 with 1.6% and a decline in 2024 of 0.9%. Also, if we look at the EBITDA figures in the other bar down in the slide, we can see an EBITDA level of between SEK 215 million and SEK 353 million. And the year 2023, we have a little bit of a lower EBITDA related to the customer contract termination in 2023. But in 2024, we rebound back on the 300 level. So how do the different parts of the portfolio perform? With this selection of portfolio -- parts of the portfolio within classic and growth, we can see these growth rates in 2024. The growth portfolio has reported a growth of 8%, whilst the classic portfolio have a decline of 15%. And as you have been following Enea in the past, we have reported the OS portfolio as a separate group, and we have a planned decline within that product. But also looking at this classic with this new definition, we have a decline of the whole classic portfolio of minus 50. So how do we perform when it comes to profitability? The different parts of the portfolio show this pattern, and we can clearly see that we have a classic portfolio where we have a high profitability. And based on that, the products in these portfolios are mature and we are having less cost in R&D and we in our revenues on that level. So it's an important part of the portfolio. The other part, the growth part is reporting a lower EBITDA, but with a positive trend. And of course, we invest more, we spend more money on R&D in this portfolio to make sure that we plan for growth in the future. So with that, I hand over to Teemu.

Thank you, Ulf. Thank you, Osvaldo. Moving ahead, we will now slowly start to get into our winning strategy. What will we now do? Then you have heard about a little bit more about the background, about our product offering, our verticals that we are targeting to work with. And we have also earlier this week on Tuesday, then launched our new financial objectives. We have now as an ambition, the focus on growing the company with an average CAGR of over 10% for the 3-year period of '26 to '28. So I have to stress the fact that this is going to be an average CAGR for the 3-year period, right? So this is what we are looking at. And we are also looking at the profitability and adjusted EBITDA over 35% at the end of the period 2028. So this is definitely we are leveling up our ambition for Enea compared to the previous guidance that we have made. How are we going to do about this then? We have -- we are building then our strategy on 3 pillars moving ahead. One pillar is about market acceleration, second pillar about vertical expansion and the third and final pillar about offering evolution. You can also see in this slide how much value we have put in growth perspective in these 3 different pillars, and it's fairly evenly spread between the 4 of them. We will now take you through these 3 pillars one by one. I will start with the market acceleration and Osvaldo will cover the vertical expansion offering evolution. But let's get into it then. If we look at it from the sales perspective, where we stand today and where we see that we have good potential to leverage and to grow, we start on the top left corner with Latin America. Today, we have a good installed base of solutions with telco operators in Latin America. We have over 20 deployments done there with parts of our portfolio. And we have not been successful in cross-selling our portfolio enough in Latin America. So now we are investing in ensuring that this great customer footprint that we already have in place that we're going to leverage to sell the full portfolio to the same customer base, while we also are looking at expanding and acquiring new customers in Latin America. So Latin America will be a focus for our telco portfolio to grow. Then on the right-hand side, we have North America. Also there today, we are very proud to serve most of the Tier 1 operators in North America, both Canada and U.S. And we have a good base and a good foundation of our business coming from this region already today. In North America, we still have opportunities with the Tier 1 operators to grow further and to expand our portfolio footprint with them. But there is also a good existing base of mobile virtual network operators, as Osvaldo was talking about earlier on. There's over 100 different MVNOs in North America only where we see a huge potential for our offerings moving ahead. So that's also a vertical that we will definitely look into in North America to expand, and North American expansion is predominantly in the telco portfolio as well. Moving to the bottom, you see Asia Pacific twice, and that is done on purpose, just to be sure because if you look at the bottom of these squares, you see that one part is for embedded security investment and the other part is for our telco portfolio investments. So we are already having our embedded security portfolio deployed in different parts of Asia Pacific, and we see good traction in that region for more growth, especially in the embedded security part. So we are focusing on Japan, Taiwan and South Korea to expand our existing presence there and to deepen our customer engagement to even further sell a broader portfolio of ours there. And then on the right bottom side -- sorry, this was hard to get. Right bottom side, we have the second Asia Pacific about the telco portfolio there, where we are looking at adding some sales leadership across South Korea, Japan, Taiwan, Singapore and [ANSA]. Obviously, we want to focus on fewer regions and countries to get most out of this with the least effort, obviously. So that is going to be our market acceleration where we will invest in our sales capabilities. Now moving over to our vertical expansion and handing that over to Osvaldo.

Very good. Thank you, Teemu. So when it comes to our vertical expansion, as you see here, for us, government has twofold. One is our embedded capabilities in the form of probes and advanced threat detection that are needed for governments to increase the security posture when it comes to securing critical public and critical infrastructure. As you see here, what we intend is to bring our technology together with established partners in different countries. As you understand, this is a very local business with a lot of relationships in the domestic markets that we want to leverage on. So that's why our go-to-market, it will have a combination of having a focus from a sales point of view, but also with a strong partnership relationship. The second fold in government is our traffic management capabilities where what we can provide here, the value is the network observability and classification to make sure that legitimate and calls and communications are coming into the country. So the responsibility for governments and telecom operators here is to make sure that those public communication networks are safe and secure. And for that, I think our capabilities play a key role. The go-to-market is similar based on that what we see is that there is a need for a dedicated focus on this, but also we believe that partnership is crucial for us to be successful in this vertical. Then the last but not least here is this what we call small-scale mobile virtual network operators. And this is, as we mentioned before, this is a subsegment of the telecom operators work. They focus very much on providing differentiation from the incumbent vendors based on the quality of experience and having more attractive data plans for users. And our capabilities allowed exactly that to be able to reduce the consumption, what -- basically what they pay to the incumbent for the use of the radio access, but also we also can provide the insights for how much service and which applications have been used with the purpose to be able to have a more attractive billing charging systems. What we think is important for us to think in that go-to-market is to create brand awareness as this is a very specific segment that we haven't really tapped into in full extent yet. We have achieved, if you have followed Enea some interesting reference in that space, but we believe we can do much more. Then when it comes to our product offering evolution, the -- our strategy is based on 3 steps. The first one is what we call enhance, and that is basically to target the existing customers with the existing products and to make sure that we keep improving what the value we deliver to customers. And this is around, as you see, the areas of traffic management, where we are extending the functionality and we are extending the use cases to also to help telcos to fight against. We also see that our messaging firewalls are getting additional functionality when it comes to the analytics and also the voice fraud features needed in order to protect end users. And also, we see that our data management applications are -- we are investing in -- even if this is a part of the classic portfolio, we are doing a important investments to make sure that these are fully automated with the purpose of reducing costs for our customers. And finally, quality experience. This is a super important topic in our customer conversations when it comes to the Wi-Fi service and the Wi-Fi offloading. Moving to the middle part here, where you see expand. This is what we mean is to expand into adjacent areas. So basically to look at -- to take the portfolio we have and to position this in some of the new verticals and the market acceleration that we want to have. And that's why you see here examples are in order to target in an effective way this mobile virtual operators, we need to repackage our traffic management solution to make it cost efficient and something that we call TM in a box, so traffic management in a box. This is a very -- this will be a very small footprint, super-efficient from delivery point of view in order to target these MVNOs and also Tier 2 operators. We also see that as an expansion that DPI in traffic management will be used for governments to make sure that for national communications agencies to secure that the communications into the countries are safe and legitimate. We also see that we are -- we have the possibility to target the CPaaS market, the long tail, especially with a more effective offering when it comes to this, we call it messaging firewall as a service. So instead of having operators to deploy their own network or the software in their own network, what we would like to do here is to provide this as a full -- as-a-service offering in order to target a very large number of CPaaS that -- with a smaller scale, so beyond the Tier 1s that we are serving today. And then you also see Enea Qosmos Pro. This is part of the government vertical expansion we mentioned before about using threat detection capability for cyber defense. And last but not least, in that expand, I think I would like to call out the Stratum. We are having very good traction in our customer in the U.S. and also our customer here in Europe, where I think we are now in the position to scale up sales of Stratum and to bring this cost-efficient user data consolidation to the rest of the market. Finally, on the evolve part of the portfolio, basically, what we are looking here is not only the investment needed in the short term, but also to look ahead what is -- how -- where we should bring our offering and what we see based on conversations with customers is a lot around how we complement the human knowledge we have with AI machine learning capabilities for fighting threats and in our firewalls, both in the messaging and the signaling part. Also, we see that there is machine learning mechanism that we will protect the value that we deliver in the future when it comes to traffic classification when the traffic gets completely encrypted or blinded. And finally, we see also that our threat detection capabilities or DPI and threat detection capabilities most likely will evolve into some AI-based NDR or network detection and response. So basically, we will continue moving up in the value chain of the offering on that part of the portfolio as well. With that, I give it back to Teemu.

Thank you, Osvaldo. And by that, we're actually moving into the final part of the presentation before we will open up for questions at the end. So starting to wrap up all of the things that you have now heard in this last 39 minutes, the future we are building. If we look at the customer verticals that we will serve, you will recognize this by large from before, a very important vertical for us will continue to be the telco operators or the CSPs, communication service providers definitely. And on top of that, we are already strong and present with the CPaaS players. We will -- it will be continuously important customer segment for us, as well as the network security vendors segment as well with our embedded solutions that we're selling. What we are calling out a bit stronger that we haven't really been seeing equally before from an Enea perspective is the government intelligence and security agencies. This is an area that is growing rapidly. There's a huge need for communications and security solutions where we already have proven that we are relevant, and we see a growing ask of these services in this segment as well. So we are also now calling out that as a strategic important customer segment for us to develop. On top of this, when we look at our key values, from a portfolio perspective, Osvaldo will round up with that, and then we will open up for Q&As at the end.

Very good. So I meet customers on weekly basis. And when I meet them, basically, one of the things that I hear is that security for many of our customers is critical for having a sustainable business growth. And at the same time, I see that many of our customers are struggle to prioritize or to invest enough when it comes to security. So the -- and that's why what you see in this slide, the value proposition from our offering is an integral approach where it's looking at 3 things. The first one is, of course, how to help customers to improve the security posture. But we believe that we have to do it in the combination of how we help them to reduce costs through optimization in the network and also how to help them on maximizing revenues with the monetization features and the capabilities that we provide. That is what is setting our portfolio apart of competition that we can play in this integral approach with those 3 pillars in mind. And this is exactly what it comes into our portfolio areas that we have covered before. So those -- in those 5 areas, we have these 3 components, these 3 key values are present, and I think we've delivered this in a number of more details that we can probably provide or come back to you later on.

Thank you, Osvaldo. Last but not least, Enea is built on acquired companies. M&A is for us a super important topic as well moving ahead. This is something that is continuous. And I can say I've been now 7 months with Enea myself, and during that 7-month period, this has been an ongoing very active activity, and it will continue as well. Today, we will not disclose any more information around M&A more than in our strategy, it continues to be an important pillar as well. So summarizing before opening up for Q&A, our vision to make the world's communications safer and more efficient is still very much relevant. Our strategic financial targets is an annual average revenue growth of over 10% for the period of '26 to '28 and our adjusted EBITDA by the end of 2028 should be over 35%, and we build that on those pillars that we have just walked through with you in this presentation, the market acceleration, the vertical expansion and the offering evolution. That concludes the presentation, and I hand the word over to you, operator.

[Operator Instructions] The next question comes from Simon Granath from ABG.

Initially, would it be possible to give any more color on the anticipated trajectory in terms of growth rates until 2028 because you target more than 10% CAGR over the coming 3 years. So there are, of course, multiple different scenarios we can play around with here, including flat growth in the near term and a real step-up in 2028, et cetera. So any help here would be much appreciated.

I think that when it comes to the strategic pillars that we were showing here, we have put an ambition on those. So we have the market acceleration. We have the vertical expansion and the offering evolution as well. And when we look at the growth for those 3 pillars, I think that we say that they are fairly equally split. We think that from the market acceleration perspective, we will achieve another SEK 150 million and there are -- we went through the regions and the portfolios where we will accelerate our market activities, right? In the vertical expansion, we think that we will -- we have a potential of grasping SEK 140 million of growth, predominantly coming from government. We see a huge acceleration in that vertical. So we have both our embedded security that Osvaldo went through with the probe solution and the increased visibility of network traffic coming in and going out of a country and complemented by also the traffic management solution in the government sector, which is super relevant. And the third part in the vertical is then the small scales or the MVNOs where we have an untapped potential. They basically require the same kind of traffic management as the Tier 1s, but in a different shape. In order to differentiate and utilize the subscription, if you may, of the infrastructure that they buy from the Tier 1 operator who owns the networks. And then finally the offering evolution, Simon, I think that we are looking at SEK 120 million coming from how we develop our products, how we bring new capabilities to the market and also how we bring our existing capabilities to adjacent customers as well. So that's kind of how we are building up the growth plan for the coming years. Did that answer your question, Simon?