MPS Limited (MPSLTD) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the MPS Limited Q2 FY '22 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Arora, Chairman, CEO and Managing Director of MPS Limited. Thank you, and over to you, Mr. Arora.

Good morning, everyone, from New York. I just arrived yesterday after spending the last 3 weeks with our teams in Noida, India. Our Noida city center is gradually becoming one of our most strategic centers. In the past 12 months, we've added over 120 talented professionals in the region to support the growth across all lines of business: Content, Platforms and eLearning solutions. In our opening segment today, I will discuss our consolidated performance in the first half of FY '22 and Q2 FY '22. Then Sukhwant Singh, Senior Vice President, will update us on the Content and eLearning business. Finally, I will provide updates on the Platform business, hence also share strategic updates from our recent board meeting before we open the call to questions. Our FX adjusted revenues in the first half of the year grew by 18.5% above previous year. At revenues of INR 228 crores and an EPS of INR 23.86, MPS has great history here as the levels have been unprecedented in our rich history of over 50 years. A true reflection that MPS has indeed entered a thriving phase and FY '22 is turning out to be our first year of the significant expansion. And while O2 was modest in revenues, this was expected due to the seasonality in our business. And I'm extremely pleased to see EBITDA margins at 29% even at this pace. This was also reflected in an unprecedented Q2 EPS of INR 12. Our business has tremendous operating leverage. And as revenue expands further, our margins will only continue to expand. I would now like to hand it over to Sukhwant.

Thank you, Rahul, and hello, everyone. So the momentum carried forward from quarter 1 to quarter 2 of the FY '22 in the core Content Solutions business. Revenue was ahead by 15.4% against previous year, and the segment profit was ahead by as much as 24.3%, given the operating leverage available in this business. The educational business practice continue to lead the charge. Our global delivery model enabled 24% growth of this practice in quarter 2 of the current financial year compared to the quarter 2 of FY '21. We continue to be awarded projects across a more comprehensive array of content area and clients. Our Journals business is also shaping well. Except for one customer, we had increased business from all key customers. And we have firm commitments from the one customer that I mentioned and other customers that volume inflow will pick up by end of 2021, resulting in an expected growth spurt in this business in the next financial year that is FY '23. Shifting focus to our eLearning business. MPS Interactive, which is the largest business interest in this segment, grew by over 20% in revenues in quarter 2 of FY '22 compared to the same quarter last year. Again, EBITDA margins improved from 3% to 20% at MPSi due to high operating leverage available in this business. Revenue was up due to addition of several new customers and growth in key accounts as well. All sales metrics look great in this business right now as we have a pipeline order book and a conversion rate at their highest in the past 2 years. Thank you. And back to you, Rahul.

Thanks, Sukhwant. Moving to our Platform business. While revenues in our platform business was soft in Q2 compared to the same period last year, PBT margins were better than expected and ahead of last year. The softness in revenue was due to the expected customer off-boarding in HighWire that I've been discussing in the past earnings calls. As shared previously, we expect this trend to continue into Q3 and arriving at a more stable revenue base for this business in Q4, albeit lower but at great margins. Product leadership is a value proposition that unifies our platform strategy. We have built a product team from the ground up that includes 2 product directors, 3 product managers, 3 junior product managers and 4 business analysts. The team is global and spread across the U.S., U.K. and India, and is led by an experienced veteran in the academic publishing space. We have begun to consolidate products between MPS and HighWire. Also there's an increased focus on innovation with a new generation publishing platform under the works. This new platform will be a modular system connected by APIs, allow HighWire and MPS products to interact, and assume that publishers don't just want to publish research, they want to help authors improve the research. There are also several key growth initiatives in the Platform business underway that are showing early signs of success. And I'll be happy to get into them if there's interest later in the call when we will open up for questions. And finally, some key updates on our Board meeting. First, subject to shareholder approval, the Board has recommended buyback of up to 944,444 equity shares at a price of INR 900 or in aggregate not exceeding INR 85 crore, excluding taxes and expenses. The proposed buyback is subject to approval of shareholders by a way of a special resolution through a postal ballot. The process, time lines and other equity details with regard to the postal ballot will be separately communicated in due course. The Board has constituted the buyback committee and have authorized the committee do all such acts these matters and things as it may as there is absolute discretion, the necessary experience usually a proper in connection with the buyback. Second, subject to shareholder approval, the Board has recommended the reappointment of Ms. Dave, Ms. Khanna and Mr. Mankotia as independent directors for a period of 3 years each. Third, Ratish Sharma has been appointed as CFO of MPS. Sunit Malhotra continues as company secretary. At our new scale, dedicated leadership of finance and legal operations is extremely important and these changes reflect that. Let's now open the call to some questions that can help us be better at what we do.

The first question is from the line of Keshav Garg from CPIPL.

So thank you very much for the share buyback on behalf of all the shareholders. Sir, I just wanted to get an idea about what kind of growth can we expect going forward. Sir, any ballpark number that you would like to give on the top line?

Yes. I can give. Thanks, Keshav. Thank you for your question. So I can share with you the growth that we expect across the various lines of business. So Content Solutions, which is our largest business segment, about 55% of our revenue, we expect -- for the past couple of years, we've been growing at about 12%. We expect that level of growth, maybe even 15%, to continue over the next couple of years. As I've explained in prior calls, this is of course the highest margin business. The pandemic has created strong lines of differentiation between us and our competition. And we expect to capitalize on that differentiation over the next couple of years as we build a new scale in the content business. Moving on to the eLearning business, which we entered through the acquisition of Tata Interactive back in 2018, we expect growth. And as you've seen in the first half of the year, the business is going through a rebuild, and we are seeing both a revenue growth and margin expansion. So we again expect -- in the eLearning business, we expect a growth north of 15% going forward for the next couple of years. And our -- in our third segment, which is our Platform segment, which is the second largest segment, we have basically expanded this business segment through the acquisition of HighWire last year. Before the acquisition of HighWire, this was a very small business segment for us. We've -- as we've done previously, we've obviously acquired a business at a competitive purchase price. It's a declining business that we're looking to turn around. So the first year is really about -- has been about stabilization. We've reported every month, every quarter as profitable in the last 12 months. Now we're looking to stabilize revenue. That revenue we expect to stabilize into Q4 of this year. We'll have to see at what level that revenue bottoms out. After Q4, we expect -- after Q4 of this year, we expect that, that business again to grow at a clip of 10% to 15% from there. So I hope that answers your question.

Yes, and it is very encouraging. And sir, and any idea about the margin, sir? Are they expected to stay at this level or is there a possibility of margins moving higher?

Yes. So as we were describing in our opening remarks, our business has tremendous operating leverage. There's significant economies of scale in our business. So as Sukhwant was talking about how the Content business has grown, the top line has grown about 15% -- and I'm giving you ballpark numbers here -- but the Content business has grown at 15%, but the PBT margins have grown at 25%. So we can expect the same trend to continue across all lines of business. Margins will obviously expand faster than revenue because of the tremendous operating coverage.

[Operator Instructions] The next question is from the line of [ CA Arun Maroti ].

I would like to know any organic or inorganic opportunity we are looking for?

Thanks, Arun. So like I said organic, I covered already that on the Content side, the pandemic has created serious lines of depreciation between some of the larger players, the top 3 players, and the rest of the market, the next 100, 150 vendor partners. So we'll be looking forward to capitalize on that differentiation. So in terms of growth, we're expecting definitely volume growth, so more of what we do. But also some scope growth, there are some new areas of outsourcing in the Content space that we're examining in consultation with our publishing customers. In the last couple of years, we've seen an increase in volume of revenue in the areas of accessibility as well as in the areas of interactive learning. So those are the kind of levers in the Content business. On the eLearning business, we're seeing tremendous organic opportunities as digital learning is becoming the standard. Traditionally, you had classroom learning and digital learning as a blend. But increasingly, coming out of the pandemic digital learning is -- most organizations are going 100% digital. So we're seeing volume growth from our existing customers, with established customers that we've been working with for over 2 decades. But we've also been acquiring a lot of new logos gradually. These customers, while they're starting small, we're seeing very quickly they're ramping up because the quality and delivery of deliverables that we presented. On the Platform segment as well, we expect growth from a new line of products that we are launching next year. But also there are certain lines of products that we expect more growth from, specifically on the content management side. On the inorganic space, we continue to pursue active opportunities in the eLearning and Platforms again. Those are the 2 areas where we are having active conversations. Our goal, as always, is when we're looking at an acquisition, looking at expansion of capabilities rather than expansion of only customers. So that offer us a significant competitive advantage. So we're looking at such acquisitions, both within the eLearning space and the Platform space, and looking at capability expansion as well as some geographic expansion.

And whether anything in pipeline, sir, regarding these acquisitions?

So acquisitions have been core to our business strategy. We acquired 8 companies in the last 10 years. So we are always in active conversation. As you've seen -- you've probably seen from our track record, we are -- we tend to acquire businesses that were #1 and #2 in the space at some point in the journey, and we help them find their core mission again. So we're very selective in what we acquire. Having said that, we're always highly active in conversing with opportunities.

[Operator Instructions] The next question is from the line of [ Ajay Kapadia ] from Motilal Oswal.

It's very good that you have started giving some sort of guidance in the con call because I properly remember that you didn't usually -- you don't give any guidance before.

Yes. So I think what we are sharing is more broad level type of guidance, what we expect to see in the next 2 or 3 years, and that's consistent with our overall approach.

So I just wanted to know, whatever functions we've acquired in last couple of years, and let you at the AGM, at that time we have difference that all these resources, so first target is we should reach a turnover of INR 450 crores. That is the big minimum target which we could achieve with whatever we have. Then there onwards, we have stretched a bit more and get more out of this resources. So this year, it looks like the base target will surely hit. I just wanted to know from that level, how much more we can grow with the same resources?

Yes. So like I was explaining, this business has significant operating leverage. There's at least 20% to 30% growth that can be arrived at from the same level of resources.

Okay. Understood. And I just missed the opening comments from -- after the percentage growth after -- you just said that the next year will be a good year for which segment? From the fourth quarter, some new clients will be giving business. I just missed that part.

Yes, sure. So what we spoke about was that the question was around how do you expect the business to grow. And I commented that the Content Solutions business has been growing at a clip of 12% over the last couple of years. We expect that to continue. eLearning business, we expect growth to be between 15% and 20%. And the last comment was on platforms where we are seeing a revenue slide because we acquired a business that was going through revenue slide. That business is stabilized by Q4, and we expect that business to bounce back growth 10% to 15% for next year. That's the Platform business, that's in predominantly HighWire.

The next question is from the line of Sachit Motwani from Param Capital.

Yes. So my first question is I wanted to understand, you mentioned about offboarding a few clients in HighWire, which impacted your Platform business. So are they -- like what is the size of those clients? Are they really big clients and have they moved to competitors?

Yes. So Sachit -- so this -- a lot of this information was, in fact, available to us right at due diligence. We were presented with customers that had already served notice, customers that were at risk and customers that are dissatisfied. So those serving notice, of course, they are offboarding typically in the Platform business. It can take anything from 6 months to 18 months for a customer to offboard. What that typically means is that we keep accruing revenue till they offboard. The second type of customer that I talked about was basically customers that were kind of at risk. We've seen some of them move on in the first 3 months of the acquisition. So October of 2020, we've received notice. And then the third category, which is a dissatisfied customer category, I'm pleased to report that in 2021 we really haven't lost any customers. It's really been what we carried forward from the previous ownership. So we've gotten support in delivery in great shape in terms of there was strong issue with capacity in the HighWire operations, and we scaled that up and been able to solve for that. In terms of the type of customers, it's a pretty unique mix. We have lost -- HighWire has lost some big customers pre-acquisition, which was shared with us during due diligence of HighWire. And then we also lost some midsized and small-sized customers right after the acquisition in the first 3 months that were kind of at-risk. In terms of where they are moving, again mostly it's a combination of moving to competitors as well as moving to publishers. So often the -- what the value proposition that we provide is we offer a platform that allows for midsized publishers to be independent, so not-for-profit type of organizations that have a mission. The platform allows them to be independent. But if their business model is not doing well, they also look at the opportunity to entirely outsourcing their publishing program. So if I'm a society of physics, I could choose to outsource my entire publishing program for commercial publisher like an Elsevier or Springer Nature. So there are some customers who have chosen that route where they outsource their entire publishing program to a commercial publisher. Of course, then there's an opportunity to work with a commercial publisher directly from our perspective. But that's the dynamic, either moving to competitors, or aligning them or outsourcing the entire program to a commercial publisher.

Okay. And how's been the performance of Platform business ex of HighWire?

Yes. So that business is doing very well. In fact, our THINK business is growing, and other products are going as well. So minus of HighWire, the business is doing well.

So approximately, what would be the growth run rate like ex of HighWire?

About 10%.

Okay. Understood. And in the eLearning business, the quarter-on-quarter decline that we've seen, this is also driven by seasonality, is it?

So the eLearning business is in fact growing. So having said that, the 2 lines of -- in fact, all lines of business we have some seasonality. Of course, the degrees are exaggerated within Content and eLearning. So our strongest quarter for both these lines of business tends to be Q3. It's a combination of customers trying to meet year-end budgets and customers also trying to launch new products for the New Year. So Q3 tends to be our strongest quarter, followed by Q1 because that's more inward because as a management team, we like to get off to a good start. So Q1 tends to be a strong quarter for us. And then Q3 and Q4 tend to be -- sorry, Q2 and Q4 tend to be similar. So there's definitely seasonality, but different degrees depending on which business segment, the most exaggerated in the Content and eLearning business.

Okay. And lastly are they, like in terms of inorganic, like are there enough opportunities out there in the eLearning or platform place to scale the verticals up further?

Absolutely. There's lots and lots of opportunities. Our space, we've seen lots of transactions being closed. So yes, this is a hot space right now for M&A activity.

[Operator Instructions] The next question is from the line of Rahul Jain from Dolat Capital.

Rahul, I would appreciate if you -- if you could share your long-term strategy in the learning side of the business. As we see the industry growth rate has been quite robust for the last several years. But somehow, the way we have kind of realigned our business, we are yet to see that. So what part of the pieces within your existing thing are doing well? How the overall portfolio when we can see there and match up to 10% to 15% kind of a growth rate on a sustainable basis? And what would drive that?

So I think -- so thanks for your question, Rahul. So as you actually pointed over the last 5 years, we've really been trying to build a more diverse and complete business. We've moved on from being an India-based content services provider, where the fundamentals were driven on wage arbitrage to an end-to-end global learning and platform solutions provider, where our value is really focused on creating value for our customers rather than just providing cost efficiencies. So from our perspective, this year is the first year of that where we grew from -- so last year was kind of a year of a kind of an inflection point. During the pandemic, we were able to click significantly differentiate our Content business from other providers. We -- while our eLearning business was soft, we were able to add lots of new logos, diversifying our customer base. And on the Platform side, we had this opportunity to acquire HighWire Press, which was incubated at Stanford University 25 years ago. So a lot of great IP and brand equity with that brand. So we finally ended up with a very rich business mix of Content, eLearning and Platform Solutions. And we feel that this mix in its current form is optimal, which -- where we were able to provide our customers with a complete product and services side. Of course, our mission as a company is to help make learning smarter. How we help make learning smarter changes from business segment to business segment. On the Content side, we enable smarter learning through more unique product, but also with unprecedented cycle times, so helping publishers improve their good -- their time to market. On the eLearning side, we help make learning smarter by providing experiential and immersive learning experiences. And on the Platform side, we really allow our customers to provide customized experiences to each of their learners as they go through the learner journey. So to answer your question, I think we're in the year where we'll start to start now seeing stable year-on-year revenue growth. And given the operating leverage, significant margin expansion as well. So FY '22 is our first year of that phase; we're calling it the time to trial phase. And with all of your support, we've been able to achieve this over the last 5 years. Like the last 5 years has really been about building an organization that can unlock the opportunities available and we believe that they're yet already.

Right. So, since somehow these things are now finally coming into place, so -- and also if you see, although IT services would not be very apples-to-apple, but as you see, there is an overall thought process of acceleration in the growth. So what kind of opportunity, what kind of growth rates we could chase FY '23 onwards on a on a longer chart? And does -- is that kind of an acceleration thought process also somewhere coming with your client portfolio?

Yes. So the acceleration thought process for us is really strategically finding ways to reduce the distance between us and the end learner. And we're doing that now through an increased revenue coming directly from -- having said that, we want to do it in a B2B way because that's our DNA. So we're trying to reduce the distance between MPS and the end learner through a B2B model. We've have had now at least 3 universities that we've on boarded in the last couple of years that have revenues above $500,000 and growing. So that's one level. The other level, of course, is publishers are also now becoming more hands-off allowing us to work with the end customer more directly. So that's where we see the acceleration coming in from where strategically we're stepping forward in the value chain, reducing the distance between us and the end learner. From a growth perspective, I already shared on the Content side. We've been growing at a clip of 12% for about -- for last couple of years. We expect that to maybe continue or get better. On the eLearning side, I think we will see some significant growth till we get to INR 150 crores, so -- which is the level at which we will then start to see more normal growth at 10%. But till we get to INR 150 crores, we'll probably see higher clip of growth in the eLearning business. And on the Platform side, while growth will be slower 10% to 15% because it takes time for customers to switch from one platform to another platform, from a long-term perspective and a customer lifetime value perspective, it's very high quality of revenue. So that's kind of our expectation.

Yes. Just a very small clarification on the Platform side. So when you say Platform growth can be upwards of 10% this year saying on the social platform business, and it will also take care of any unforeseen or maybe client kind of an issue, which may be there possibly in HighWire or you think that is behind us now?

Yes. So most of the HighWire issues are behind us. We already know which customers had to leave, who had to leave, who's about to leave, they've served us notice. So those issues are kind of behind us. Like I said, Q4 FY '22 platform business has stabilized and then grow from there.

And lastly, on the supply side, are you facing any challenges per se where attrition is now getting difficult to kind of filled in since we are probably should, in my view could be much lesser for you, but the talent available in those markets also be of a different talent. So that is one. And secondly, what could be the impact on the profitability because of that? And since we -- all this business will come back to a more stable growth trajectory, can we see our long-term aspiration of segmental profitability can be achieved at least in second half of FY '23. not in first half?

So to answer your first question on talent, I think we are in a very unique space in the sense that we've chosen a fairly different strategy where we have about 2,600, 2,700 employees across the globe, 2,500 odd from India. And in India, we are present in 7 different cities. So normally in our space, with a company of our headcount, you'd find maybe 2, maybe 3 centers at most. You rarely find companies that operate across 7 cities just for 2,500 people. So that's a strategy that has come to us that we've inherited because we've grown through acquisitions. But we sustained because it's always helped us in environments where there could be talent spikes or shortages. So in terms of attrition, I think what we have seen is that last year in 2020 during the pandemic, we almost had no attrition. And this year, we are going back to the pre-pandemic attrition level. So no significant change from pre-pandemic. Because of this sort of unique setup where we have 7 centers in India, we have 3 centers in Europe, 5 in the U.S., so we're fairly spread out which allows us to deal with local challenges. Of course, in India, Dehradun continues to be a unique level for us where our Dehradun headcount is slowly -- continues to grow as a proportion of the total headcount, which helps us maintain our operating expenses. And in terms of, like I was describing on the margins, given the operating leverage available in the business, as if the business keeps growing at 10% to 15% as we are visualizing, we will see margin expansion step-up in a better proportion than the revenue.

[Operator Instructions] The next question is from the line of [ Arjun Goyal ], an individual investor.

Congratulations on a very, very strong set g numbers. My first question is regarding the payout policy. So if you can talk a little bit about what is the Board or your line of thinking on this -- on the size of the buyback, which are INR 85 crores? I mean, it's more than that we've ever made. So if you can talk a little bit about how you arrived at this figure of INR 85 crores as a payout? That would be very helpful first.

Good question. So just to give you overall thought process, we want to make sure that our business is focused on our core competency, which is to help make learning smarter. On the cash side, we've accumulated -- as our margins are growing, we're accumulating cash which quite honestly for us is a -- cash management is a significant distraction. We want to focus on our core business. What we have projected out through some math is that what we need really is INR 100 crores to INR 250 crores in the business, which enables us to grow. So if we look at our acquisition strategy, our largest acquisition was at a size of INR 74 crores back in 2018 of Tata Interactive. Going forward as well, I think we can expect this number to grow by 30%, 40%, but nothing more significant than that. And so given that our needs really are in the INR 100 crore to INR 150 crore range, we basically -- cost buyback will be closer to the top end of that range. And that's how we decided to conduct a buyback of the size that's been recommended. So that's the overall thought process that we want to have the management team focus on the core business. This INR 150 crore level of cash kind of allows us to pursue both our inorganic growth aspirations, but also continue to reinvest into the business. And also if you do have an opportunistic play where we can pursue an acquisition of a larger size, there's -- there are many different sources of capital given our strong balance sheet that we can use. But currently, we are looking more at acquisitions no more than INR 100 crores from an acquisition price perspective.

Okay. That's very, very encouraging. My second question is that -- I don't know if you've already answered it in some form. But if you can talk a little bit about the cross-sell opportunities between the different line segments because I mean I believe that the rationale for these various acquisitions was we get a larger client base. So I mean if you can talk maybe in the last 3 months or 6 months that of what sort of headroom have we made, being able to or what has been the success rate in cross selling one product to another client, et cetera?

Yes, I think -- so a lot of the revenue -- so if you look at whatever revenue growth we're achieving in the Content and the eLearning business, half of that is coming through new customers where we are acquiring new customers and half of that is actually coming from cross selling where what we've, over the years, done is -- so every time we acquire a business the -- there are certain sequence of events. First, the business settles down, we start making MPS level margins in the business, we consolidate the business into our operations. Second, we are able to sell the newly acquired capabilities because what we acquire -- we don't look to acquire customers, we acquire -- look to acquire capabilities and customers of course -- we end up getting more customers as well. So we are able to market and sell those capabilities to our established mature customer base; that's the second phase. And the third phase is when we are able to take our incumbent capabilities and sell it to the acquired customer base. So I think what we're seeing in the last couple of years is -- in terms of cross selling is we've been able to sell MPS services to the interactive customers. We are now also slowly seeing we are able to sell the interactive -- attractive service to the MPS customers. And then the growth that we are really seeing or expecting in HighWire is where we're able to sell HighWire capabilities to existing MPS customers. So I would say on the organics growth side, bulk of it over the next 2 or 3 years is going to be through cross selling as you -- as you describe. Strategically, we also are trying to invest in partnerships where we have at least 4 lines of engagement with our customers, where we are selling at least 4 different products or services because we believe that, that number, the number of 4 really enables a very strategic partnership between us and the customer, it creates some mutual dependency. So that's an avenue that we are -- and a number that we're watching is that how many customers today consume at least 4 different products or services from MPS.

So I mean, in your opinion, how much -- is the relationship -- other relationships with your customer, have they reached like, what level of maturity have they reached? Is there significant headroom still available to cross-sell as you say or do you think that it's pretty much tapped out?

No, I think there's a lot of headroom predominantly because every year we acquire new capabilities. So if I look at our top -- our top 5 customers over the years, every time we have acquired a business in the next 12 to 18 months, they have consumed the newly acquired product or service. So there's definitely -- so fundamentally, these are -- there's a strong level of trust between us and our core customer base. And we only acquire businesses that expand our capability set and that will be valuable to our customer base. So there's a lot of headroom. The way I think of it whenever someone asked me a question where do you see this business growing, is this a growth business, is it a mature business, my answer is think about 20 years later, is there going to be more content or less content. And that kind of answers the question, because at the end of the day as long as more content keeps getting produced, MPS is going to be front and center of that content development and production.

The next question is from the line of [ G. G. Wright ], an individual investor. I am sorry to interrupt you, Mr. [ Wright ]. You are not very clearly audible. May I request you to speak on the handset receiver and come closer to the phone, please.

Is this better?

Your audio is quite low, sir.

Okay. Now?

Yes, this is better.

Okay. So I think most for revenues are coming from the publishing segment. Is there a plan to get into non-publishing segments sectors in future?

Yes, absolutely. Thank you for that question. We started that drive back in 2018 when we acquired Tata Interactive where we were looking at -- like I said, we've been diversifying our business over the past 5 years, both in lines of business and type of customers that we work with. So through the acquisition of Tata Interactive, we got into the whole corporate learning and development space. So we work with some -- we work with over 100 of the Fortune 500 companies in the learning sphere where we enable creation of learning experiences, both from a content perspective but also from a technology perspective. So that was the first level of diversification where we are -- was now working with corporates. So now we work -- so our sectors are traditionally -- like in most professional services firms, the corporate sector that we work with include BFSI, healthcare, travel, and so on and so forth. And then the other area where we are looking to expand our portfolio, we've pretty much been doing this organically. There are also inorganic options that we are pursuing. But we've had some success organically as well as working directly with universities that offer continuing education of professional development. So we've on boarded over the last -- like was mentioned earlier, over the last couple of years the 3 customers, not a $500,000 in revenue analyzed, where we are working to help them create custom learning programs for these professional development courses or professional learners. So absolutely diversification has been a core theme for us and will continue to be the core theme for us. The 2 adjacent markets that we've kind of already gotten deep into is, like I mentioned, the corporate space as well as the continuing education market.

Is it possible to give a breakup of the non-publishing revenue percentage currently and what do you aspire to be like maybe 3 years down the line?

I would say still we continue to be about 80%, 85% publishing and aspiration, of course, would be to have it become 50-50 in the next 5 years. That's the goal.

[Operator Instructions] The next question is from the line of Nilesh Shah from Envision Capital.

My question is a bit more strategic. I think you've been successfully in a way steered the company during some really tough times. I'm just wondering that is there any potential or scope for MPS to kind of look at the entire SaaS space. I mean, I believe, of course, our current platforms business is a bit of an overlap with the overall SaaS space. But given that we are an enterprise solutions company and with the Tata Interactive acquisition, we also have an expanding scope of enterprises as our client segment, but I'm just wondering that any thoughts which you and the senior leadership are in a way looking at this space of SaaS and is it like kind of relevant not relevant for us right now? And I'm asking this question in context that a lot of successful Indian companies have been hugely successful in this space of late, especially including the listing of Freshworks on the NASDAQ. So my question is in context of the current environment.

Absolutely our -- if we look at our Platform business, 70% of the revenue is SaaS. What's unique there is, we have about 8 different products in this space. Our highest revenue generator is at $8 million in revenue. And so you can see how scattered we are in terms of our revenue from each of these offerings. Our largest competitor for any of these offerings is not a 50 million in revenue. So there's a lot of opportunity available. What we've done really is we've created -- as I was mentioning at the top of the call, we've created these pods of teams where each of the products are led by a combination of a business leader, a product leader, an engineering leader. And between the 3 of them, they are really are focused on making these small SaaS based offerings into large offerings. We do not today know -- so we have 8 different bets. We don't know which of these bets is going to be the $100 million type of revenue, but they're definitely putting -- placing a lot of engineering, product management and marketing focus to at least pursue these opportunities independently. And ultimately, even if one of these bets pays off, it's going to be pretty significant for our organization. So it's something we're actively pursuing because we feel this is going to be ultimately the future of the business because on the content and learning side, once we get someone on a platform, they tend to very quickly consume the content and learning services simply because we are so integral to them, because again they are like the retail store, right. The platform is through which they distribute the content to their end customer. So if someone is switched on to a platform, then for us to market content learning services is very straightforward to them. So for us, this is a very important piece of our growth strategy. Like I said, we have 8 bets in the space. And we'll be fingers crossed that more than 1 or 2 convert in the next couple of years.

[Operator Instructions] As there are no further questions in the participants, I now hand the conference over to Mr. Rahul Arora for closing comments.

Thank you, everyone, for your thoughtful questions. We always enjoy these questions because it keeps us honest and keeps us humble, and also allows us to pause and reflect on our progress both on growth but also on strategy. So again a very big thank you to each of you for the thoughtfulness that's gone into these questions and I look forward to interacting with all of you on the next earnings call in NSE. Thank you so much.

Thank you. On behalf of MPS Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.