myprosperity Pty Ltd (HUB) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the HUB24 Limited Analyst Briefing. [Operator Instructions]. I would now like to turn the conference over to Mr. Andrew Alcock, Managing Director. Please go ahead.

Good morning, everyone. Thank you so much for joining us at short notice on what we believe is a very exciting day for HUB24 to announce an acquisition that we've undertaken, the acquisition of myprosperity. I'm updating to you from Perth. I'm actually currently on an adviser roadshow. And having spoken to a number of advisers last night about what makes HUB24 tick and our DNA in empowering better financial futures together, I wish I would have been able to share this with advisers yesterday evening in Perth, but certainly keen to share it this morning because it had been very relevant to the discussion we're having yesterday. So HUB24 this morning is announcing the acquisition of myprosperity. Effectively, it's an online client digital portal that are doing really well in the market and really helping -- will help us accelerate our strategy. But absolutely, it's about who we are and in terms of empowering better financial futures for Australians and helping advisers and accountants reduce friction in the advice process. A great acquisition for HUB24, a very strategic acquisition for us in terms of progressing on that strategy. So I've got Jason Entwistle; and Kitrina Shanahan here with me today. They're in Sydney. I'm in Perth, but looking forward to giving you a short presentation and opening up for Q&A. We might move on to the next slide, which is about the acquisition of myprosperity. As I said, the acquisition is about accelerating our strategy. We talked quite often about Platform of the Future, that as a business, the disruption -- that doesn't want to be disrupted. We want to continue to lead change in this great industry and really unlock value for customers and advisers through the use of great technology in the advice and wealth management space. So this acquisition helps underpin that. It strengthens our value proposition and certainly aims to create further growth opportunities for us and the businesses inside the HUB24 group being HUB, Class, NowInfinity and now myprosperity as well. As I said, it's a highly -- high-value strategic asset with established capability and client base. Jason Entwistle will talk a bit more about the history and the heritage and the functionality in myprosperity, a market-leading client wealth portal that's really positioned for growth moving ahead. And in the HUB24 stable, we hope to accelerate that growth for both them and for our businesses as well. Increasingly, financial professionals are looking for digital client engagement portals as opposed to having to go through multiple different front ends or different systems for different providers with the clients. It's headed all in one place. But increasingly, let's make it -- be digital and secure in terms of cybersecurity and not the e-mailing sensitive documents around the marketplace. So it really resonates in terms of that demand there. So sort of accelerates our Platform of the Future strategy. Over time, it will provide a single client front-end access to the HUB24 platform offers, both custody, noncustody, Class, NowInfinity and HubConnect as one way of accessing -- one way of doing business with our stable of businesses really giving you an integrated ecosystem, if you like, across the value chain and across the services we have for clients and financial professionals. The acquisition we expect is going to reinforce our current #1 position and support our current growth trajectory. It's great for advisers to see and the customers to see us continuing to invest and continuing to think about the future and what we can do to create more value moving forward, and strengthens our competitive advantage across our business to support further market share growth, and correct some new opportunities where we can use myprosperity with other businesses inside the HUB group, to look at ways of accessing different parts of the market with different clients and product mixes, as well as creating a better value proposition for end clients. Moving on to the next slide, a bit of an overview of the transaction. As I said, we've agreed to acquire all the shares of myprosperity. Just waiting for the slide to -- sorry, I can't see the slides moving. There you go. Sorry, folks. We're acquiring 100% of myprosperity; $40 million of HUB Limited ordinary shares at the 30-day VWAP being last night of $26.73 (sic) [ $27.63 ]. So that's about 1.4 million shares being issued with up to $11.5 million in ordinary shares or out of the 400-odd thousand shares to be issued subject to conditions and performance hurdles over the next 3 years being progressively met. And that includes integration of myprosperity fully into the HUB24 platform, a line integration, followed by a deep integration across HUB, Class, NowInfinity and all offers and some revenue synergy targets are between $7.2 and $21.2 million by FY '26, which will be the measures we'll use in terms of determining how much further consideration is paid for the acquisition. In terms of our financial impact, it's a really strategic transaction for us supporting our current value proposition and future growth. Expected to be EBITDA positive in '25, EPS neutral in '26 and EPS accretive in '27 of about 4% to 5%, with moderate transaction costs of about $400,000 in this financial year and minimal implementation costs. The CEO of myprosperity, Mr. Peter McCarthy, delighted to have him joining our team, will remain a core part of the business. We are buying the business and wanting to operate as a wholly-owned subsidiary, but allow the business to retain its own corporate identity, brand, Melbourne-based team to really continue to execute on their own growth strategy looking after their existing clients and pursuing further growth as a stand-alone portal, as well as the opportunities that arise for both of us with integrating -- or further integrating myprosperity into HUB24. You might not be aware that HUB24 and Class currently do provide data feeds to myprosperity as third-party data providers. We've done that for a number of years. But our plans, and Jason will talk a bit more about this to do some further integration and have some of the functionality myprosperity coming to the HUB24 platform to accelerate that single view of wealth strategy and platform of the future. We're targeting completion prior to June 30, '23, and we'll keep you posted on that as well. So a bit of an overview of the transaction there. Moving on to the next slide. Just a little bit about myprosperity. And just starting on the right-hand side of the slide there in terms of their current business profile, they have about 440 relationships with accounting or financial advisory firms. They are able to report and service about 60,000 households. The word household is really interesting there because if we think about a single view of wealth for a client, that single view of wealth might include their family trust, it might include their SMSF, it might include their spouse or their children or extended family members' wealth in terms of how they invest and where they're investing. And so getting a holistic view of household wealth is really key for advisers to have great insight and deliver great outcomes for their customers. It's about 16,000 premium subscribers. So that's a software subscription service model. There's 2 models of delivery for myprosperity currently. And there's a premium subscriber level where subscribers pay a higher fee. About $4 million of revenue for the business estimated for FY '23. And interestingly, the assets and liabilities that they're tracking to help financial professionals are in the realms of $135 billion of household assets being tracked and $22 billion of liabilities. The portal has a whole lot of key features in terms of digital document signing, consent, task automation, helping accountants and financial advisers get approvals to proceed with work from clients' virtual rooms. I know Jason will talk a little bit about virtual rooms and collaboration that creates. It integrates really well with leading accounting and financial planning practice management systems to help with onboarding, digital forms, tax checklists and so forth and portfolio reporting. On the left-hand side, look, myprosperity is a leading provider of secure client portals, connecting clients and their advisers together. The company is Melbourne-based, in 11 -- 2011 established. So leveraging from some development that's been going on for over a decade and we're really delighted to be able to bring that to the HUB24 stable and go to market with that fairly rapidly. 33 employees, as I said, it's a leading portal that increases efficiency and streamlines engagement. Jason will touch on that in the next few minutes. It combines their proprietary technology with an ecosystem of third-party integrations. We'll give you a snapshot of those in a few minutes as well. So that's the usual SaaS-based accounting platforms and other feeds. And as I said, software subscription model uniquely positioned for the next phase of growth. Myprosperity has done a great job being a software subscription service in the marketplace with some take-up occurring -- some broad take-up occurring. And the business really at the next phase of its growth and should benefit very much from being integrated with the HUB24 family and stable as well. Okay. Moving on to the next slide. I'll hand over to Jason Entwistle, who is our Director of Strategic Development, to give you an outline of the strategy, the rationale and how it fits in the broader market. Over to you, Jason.

Thanks, Andrew. Good morning, all. So HUB already sits in the advice and the accounting industries. And obviously, some of those firms are multidisciplinary doing both. So that's a big market, and we have significant relationships across that market. We really believe that myprosperity allows us to broaden and deepen our relationships into that market, providing new ways we can engage with our existing clients and allowing us to recruit new firms -- new accounting firms, new financial advice firms into the group with myprosperity as the sort of entry point for their new relationship with HUB. We're really excited about the technology and what it can deliver us. Obviously, those financial professionals that will use myprosperity, they serve a very significant number of Australians. So around 6 million Australians have a relationship with an accounting firm and about 1.8 million Australians receive financial advice through an adviser. So there's actually been quite low adoption of portal technologies to help financial planners and accountants service that market. Now why is that? Our view is that there's been relatively low adoption because the functionality historically hasn't really been there. So the big tech providers and I'm talking of financial planning tools and platforms, et cetera. Yes, we have portals, but it's very much being focused on just our little part of the woods, if you like, without delivering the full solution that advisers and accountants need for their whole business. So there hasn't been significant investment in the portal technology historically. Myprosperity is an outlier. 11 years of sunk development, a business that's absolutely poised for growth and has the functionality to deliver into this market. I think another part of that has been the low confidence of the financial planning professionals in the underlying data that is serving through the portal. If you don't trust the underlying data, you're not going to give real-time access to your clients. And with our Class acquisition, our data service initiative, we really believe we can deliver trusted data, secure data through the portal and through the financial planning business, through the accounting business to those end clients in a way that the adviser and accounting firm, they'll be proud of it. They want their clients to have access to the portal and deliver a great experience. And I think the old habit of e-mailing information around has also been dying hard. Today, accountants and adviser's are still asking clients to send really sensitive information by e-mail. And we know with the cyber attacks, the global cyber attacks that are occurring, that, that has a limited life span. And so with myprosperity having built the functionality, HUB can underpin the data quality. And with the risk of the cyber attacks forcing groups to change because the data is too [ feeble ], too sensitive for licensees and insurers to accept that -- the old practice of e-mailing things around can live on. So we think the whole industry is on the edge of a big change in how we interact with our end clients and adopting a secure client portal is going to be a necessity going forward. So that's a massive opportunity for us. It's a massive opportunity for myprosperity. But we also see it's a real opportunity for advisers and accountants to engage clients in a new way to improve engagement through digital means. It's mobile, means it will increase their efficiency and delight clients with the new mobile experience. So hence, we're so excited about where we think this can go. We can go to the next slide, please. So just on that, so it really is changing and transforming the engagement. As I said, clients have 2 big problems in managing their wealth where they're dealing with advisers, accountants and sometimes lawyers for estate planning. At the moment, those interactions are quite binary one-off. I'm dealing with my accountant today, I'd like to deal with my adviser next month, et cetera. And they're very manual in the way we transfer data and often by e-mail. So for the client to get a single view of their household wealth for their balance sheet and for the client to have those financial professionals collaborating with each other rather than a client having to manage the relationships, it's been difficult. And that's what we think myprosperity solves. Andrew mentioned the concept of rooms. So myprosperity has a digital environment in which those financial professionals with the permission of the client can collaborate with each other, they can share the data, they can see the same data and they can manage to do these tasks for each other, et cetera, in a way that it takes the burden off the client from managing those interactions. And they can also see all the data in one place. So it really is that household view of wealth. So again, coming back to it, we think this is for a whole bunch of reasons, there's being the cybersecurity angle, the need for advisers to engage in different ways and delight clients and take the burden off the client in managing their relationships. We think the client portal kind of current industry is about to take off, and hence, we've acted with this acquisition. Moving on to the next slide. One of the unique things about myprosperity is the fact that not only does it service the needs of advisers in delivering a client portal to that part of the industry, but it also deals equally with accountants. And given that we have the Class business, NowInfinity and a lot of accounting clients, we have the platform with a lot of advice clients. Myprosperity sits very snugly in the middle servicing both. And it's done the work to integrate to the practice management systems or the tech ecosystems of both third parties. So it integrates with software like Xero and APS, GreatSoft and MYOB for the accounting practice management, integrates with Iress, with Xplan, Midwinter and AdviserLogic on the financial planning practice management. So in signing up as a new user of myprosperity, those data interfaces are turned on. The client data is absorbed by myprosperity, the adviser or accountant then manages the aggregation of that data at a household level and delivers it to the client. It's a very easy setup. We think the barrier to adoption is really low. So we're really excited about how quickly this can get rolled out. On the -- we've talked about our platform and the purpose of platforms for the last 30 years being the delivery of a single view of wealth for the client that the adviser can manage, one way of doing business. So the advisers' back office is far more efficient. And things like giving advisers and licensees visibility and reporting and insights on all the data that they effectively hold. And you've seen these diagrams before. So we really see myprosperity as the core of our platform of the future that we've been talking about for a while. So this is really giving us a much faster entry to market for the capability that we've been on a path of building. We've done a lot of work through acquisitions, through development of building the underlying data capability that will underpin this. We've got a lot of functionality. I think you've all seen our [indiscernible] functionality that we've built on top of that market-leading the way we report on the portfolios. And so with all of the data that we have from the platform assets, other platform data we have through our Data-as-a-Service, which Class underpins, things like open banking is coming through. Other assets like investment properties that myprosperity tracks, they can track cards, you name it, they can track any asset. And then we have our significant noncustody administration, which has given us a lot of broker fees for shares that are held on [indiscernible]. So with all of that data coming into the myprosperity ecosystem and being delivered through the portal, we really think it fast tracks how --- our strategy of delivering that Platform of the Future for our clients. Again, you've probably seen this diagram before or parts of it. So picking up on that theme, our HUBConnect infrastructure with all the data interfaces that we have underneath is driving not only our platform but the other parts of that business, HUBConnect, Class and NowInfinity. And we're increasingly integrating all of that capabilities together. The great thing about myprosperity acquisition is this will be our face to the world. So this will be the single portal in which we're able to deliver all of that capability to our clients and their end clients. And the functionality of myprosperity with the document vault, for instance, we have a document vault sitting within HUB24. We have one sitting within NowInfinity and Class. But myprosperity will be the expression to the world of a single vault that the adviser and the client can access at one point to get all that information. myprosperity has a Task Tracker to keep the financial professional and the client on track with whose next action is -- whose job is -- who's on the hook for the next section in trying to keep the advice process or the accounting, the tax process on track. It has significant e-signing capability. And I mentioned the virtual rooms before, it has the Fact Finds and really importantly, it has the interfaces to the ecosystem of the financial professional, being accounting software or the financial planning software. So it's all in that one place. But we definitely intend to deliver Class, NowInfinity, HUB24 and HUBConnect capability through myprosperity to the market. We will also incorporate some of the myprosperity functionality within those solutions. So when you buy a HUB24 platform, over time, some of the myprosperity capability will be living within the platform and delivered as part of that solution. The same for Class, the same for NowInfinity. So it will go 2 ways. myprosperity will continue as its own business with great tool that it is. We really want it to grow. We're going to invest in that growth, get it to market. But increasingly, the capability that they've built over the last 11 years, some of that capability will start to live within the platform, within Class and be packaged up as part of our solutions. Andrew, I want to hand back to you.

Thank you, Jason, great. That's really good -- a good explanation there of how myprosperity fits in the world of wealth value chain, but also integrated with HUB24. And as Jason touched on, continuity for the business itself. So if we move on to the next slide, as being part of our business or the HUB24 business, myprosperity is going to benefit from a long-term committed partner that really is wanting to invest and continue to invest in myprosperity and the overall HUB24 offer to the marketplace to accelerate growth for both businesses. As Jason said, continuity for myprosperity, so yes, the functionality will gradually move into -- some will move into HUB24. But in and of itself, myprosperity will continue to operate as a stand-alone entity as a portal with software subscription revenue in the broader marketplace to its existing clients, continue to invest and change and grow, and it has the functionality offered and seek new clients on that basis, as well as being integrated into the HUB24 ecosystem. So as part of HUB24, there's the benefits of continuity for the team, the strategy of current clients, as well as the opportunity to grow linked with HUB24, backed by a committed partner and backed with some investments to drive that growth. Over the longer term, myprosperity customers will benefit from a deeper integration between HUB, Class, NowInfinity and obviously have access to HUB24 group relationships to help that business grow even further provide opportunities. So benefits for myprosperity. It is on the cusp of a great business that's leveraged or positioned really well for ongoing growth, and in the HUB24 group, us leveraging each other's capability to do that will accelerate that growth and accelerate our execution of the platform of the future. So a win-win for everyone. If we move on to the next slide, I've got one more before we open up for questions, but the acquisition in summary on the right-hand side there, and I won't repeat that, you've got the financial details, as said earlier, with the consideration, the EBITDA impacts and the EPS impacts expected to be accretive in FY '27 to about 4% to 5%. With the acquisition in summary, it's a highly complementary business. And I hope you can see from the presentation this morning how that fits and works with our current vision and so forth. It's complementary in terms of culture and values as well, really aiming at challenging the marketplace and creating a much better outcome for clients and advisers, which builds a sustainable business and helps us extend our lead and our competitive advantage. All-in-one secure portal, really important to have security and data sharing capability in today's modern world, delivering a household view of wealth. We talked about our strategy in accelerating that, increasing efficiencies for advisers and accountants is really key for us to help this industry lower the cost of advice to make advice more accessible. It not only helps our business grow and create a market for our business, but it actually delivers on the promise that we make to Australians and a real challenge for all of us to deliver. And HUB24 intends to keep leading in that space. Strengthening our value prop driving customer advocacy, which is growth and retention of existing clients is underpinning our current flow trajectory but also aiming to deliver greater flows in the future and deliver revenue synergies in terms of software subscription revenue to myprosperity and growth of the HUB24 platform and other businesses as well. So thank you very much, everyone, for taking the time this morning at short notice and for allowing us to win through this acquisition for you. I'm happy and delighted to be able to open up for questions. And I'm challenged a little bit. I'm in Perth and the team in Sydney, but happy to open up for questions. And over to you guys in the audience.

[Operator Instructions] Your first question comes from Brendan Carrig with Macquarie.

Andrew, just maybe starting on the myprosperity revenue of $4 million [indiscernible] of that revenue, is that all subscription or is a component of that from the 16,000 premium subscriptions and then the rest is from other sources?

Thanks, Brendan. I'm going to let Jason and Kit answer that, although I'm not sure we've got -- we heard the question clearly.

I think your question, Brendan, was the $4 million all from the subscriptions, you broke up at the beginning.

Yes, it was, $4 million of subscriptions.

Yes, so the $4 million that's in myprosperity at the moment is all subscription revenue coming from the myprosperity business.

Okay. And then just over the sort of medium term, can you just talk through composition of the revenue synergies in a little bit more detail, please? And sort of how they sit within those sort of FY '25, FY '26 EBITDA assumptions that you've provided to us.

Yes, yes, so I'll kick off and then maybe Jason will jump in towards the end. But the revenue synergies, in particular, the ones that we've given you at the front of the pack, the $7.2 million and growing o $21.2 million. That's all subscription revenue coming into HUB24. And as you would have seen, there's $4 million in myprosperity today, the $7.2 million and the $21.2 million includes that $4 million, but there's clearly quite a significant growth in there in volumes and revenue. There is -- when you look at the underlying EBITDA calcs towards the back of the pack and the EPS calc, there is a small amount of additional revenue that comes in, in particular in the sort of later years, is more related to new business HUB24, broader client base using more of HUB24's products et cetera. But just to give you a bit of a dimension on that, when you look at full year '24, round about 90% is coming from subscriptions, and that's probably inclusive to 70% to 80% in -- by the time you get to full year '26.

Okay. That's helpful. And then the last one for me and then I'll jump back in the queue. Just in terms of the integration, you called out the sort of $400,000 transaction-related costs. Are there costs that are going to be incurred on an ongoing basis to do with integrating the platform or myprosperity in this HUB? Or are they just going to be included into BAU costs going forward?

They'll be included in the BAU costs. So they won't be material. There will be obviously costs that's associated with the myprosperity business in growing that business, and that will grow in line with the volumes and the revenue. But then from an implementation perspective, we said that there'll be some delivery of HUB24 portals. There will be some development side on the myprosperity side, which is included in the underlying EBITDA and the EPS numbers. But there will also be some development on the HUB24 side. But that's not going to be overly material, and you'll see that in our BAU numbers.

Your next question comes from Kieren Chidgey with Jarden.

I might have missed the numbers somewhere, but just the -- I was just wondering if you could detail the current cost base. Obviously, that will grow in line with some of the additional subscription revenue growth you just talked about. But broadly, where do you envisage that sitting for FY '23?

Yes. So I think -- so we've given you the $4 million of revenue in myprosperity. From an underlying EBITDA perspective, it will probably be somewhere around the $1 to $1.5 million loss in full year '23. So from that you can do [indiscernible] probably the expenses are going to be about $5 million, $5.5 million in full year '23.

Okay. And Kitrina, the previous question from Brendan just around sort of the revenue synergy growth being mostly subscription related, just wondering if you can sort of talk -- it implies, obviously, quite strong growth in the business, almost doubling next year from a revenue point of view, from a subscription point of view. Just your confidence in terms of what needs to be done. You only get the keys, I think, around 30th of June. So how confident are you in the ability to get those clients on board quite rapidly?

Yes, thanks, Jason. I'll take that question. We've obviously done [ DD ] on the business. We're really comfortable with where they're at today and the pipeline they have. But when we add HUB'S reach, if you like, across the accounting and financial planning space, and the ease in which this solution can be adopted because of its snug fit within those ecosystems, we're confident that it can roll out really quickly. And so that software revenues, as Kitrina said, they are obviously ambitious numbers. But we really believe in the solution. It is all software revenue what we've -- software subscription revenue, what we've put in the pack, [ $7-point million ] whatever it was, and $21.2 million. It's not just the portal subscription, we are also considering and they have plans for new products. There might be products that HUB has that could be packaged up through myprosperity and deliver its increasing functionality and capability that would also get a software subscription fee.

Okay. And this is all fees that the end client, the customer is actually paying, or is any of that being is being paid by advisers or accountants?

Yes, the 440 practices that currently subscribe, they pay the fee on behalf of their clients. So those 16,000 odd premium subscriptions, that is a part of a solution that the accountant or the adviser is delivering to their client and they're absorbing the cost.

Your next question comes from Siraj Ahmed with Citi.

I have 3 things. Maybe first one, Andrew, just thinking about you paid sort of 10x revenue [indiscernible] outside next year for this business. You had HUB24, HUBConnect for this which is part of the single view of wealth previously. So can you help us understand why now and the multiple that you have paid for this business?

Yes, Siraj. It's -- yes, you're right. We've been on a journey of single view wealth for some time. Our business is a big, busy business with a platform that's growing strongly. And for us to get the capacity to continue to focus on that single view of wealth, delivering [indiscernible] to our clients has been a challenge for us. And some of the dynamics I mentioned earlier about improving the digital engagement with clients, covering off the cybersecurity risks that exist and the fact that myprosperity has 11 years of some development in this space, has learned a lot of lessons along that journey in our view is a clear market leader in the space. All of those dynamics led us to believe that speed to market was really important. To deliver this to our clients, the accountants and the advisers in the time frame that we think this market really is poised for growth and in a time frame that we could capture that growth, we felt we had to act now. And so that underpinned our decision to win myprosperity really put their hand up was having discussions with a number of parties. We circumvented a competitive process with moving to an acquisition conversation with them.

Okay. And Jason, previously...

I'll add to that. Look, there's functionality and capability here that wasn't necessarily on our agenda in terms of single view of wealth that extends beyond that. And I think, as Jason said, look, there's a marketplace here where we, as a business, are growing market share. And we want to continue to lead and extend our competitive advantage to underpin that growth and achieve further growth. So the strategy is, hey, there's an asset here that plays into the picture and the mix that's more enhanced than where we were. So speed to market is absolutely critical. We think it's a great strategic asset to actually secure it.

Perfect. That actually leads me to my second question, Andrew. Just in terms of market share and thinking of the core custody business, I mean, clearly, the value prop of myprosperity is that it's integrated to all platforms, a single view of wealth. How do you reckon this improves HUB24's custody offering? Because it seems like Kitrina saying there's a bit of additional revenue. Just keen to understand how this can drive more flows into HUB24 custody.

I'll start and maybe Jason will finish. The ability to actually deeply integrate with our portfolio of assets being beyond just HUB24, Class and others and actually include some of the functionality of the portal into the platform, i.e., digital consents and approvals to proceed and secure document sharing and secure reporting. I think it enables us to concentrate on what -- where we're really good at. And not that we're not good at the other piece but that actually integrate some of the reporting and the HUB24 present functionality that we've got, which really is cutting-edge HUBConnect base single view of wealth, implementing that into the myprosperity portal, which already caters for a single sign on, security and document sharing. it enabled us to play to our strengths and actually extend that utility such that it will reduce friction and reduce costs and create a much better client experience. In doing that with that integration as opposed to just HUB being another platform in the ecosystem of myprosperity, it will allow us to achieve that goal of empowering better financial futures together and create advocacy and takeup. So we expect that we'll actually over time, Siraj, in our business cases based on this pick up more flows from existing HUB24 advisers if we have a better proposition. That's our aim here in a competitive market that's not sitting still, to pick up more flows and create new adviser relationships because the end-to-end outcome is superior to what platforms are offering today. And that, to an extent, has been our journey to date in terms of growing HUB24. It's about providing a better solution, and this is continuing that journey.

And just last one for Kitrina. Can I just clarify -- the numbers you mentioned $7.2 million and $21 million is that just for myprosperity? And if it is, I mean that implies -- Jason sort of mentioned is higher revenue per subscriber, but I think it's a pretty large subscriber growth. It seems larger than the addressable market. So if you can just break it down to subscribers versus our average revenue per subscriber, that would be quite helpful.

So the -- just to confirm, the $7.2 million and the $21.2 million that is attached to the additional sort of the $11.5 million potential additional earn-out there is purely subscription revenue and doesn't include the additional flows that Andrew was talking about there around additional flows, et cetera. And you're absolutely right that from a volume perspective, I think, we've called out the number of partners, roughly 440 at the moment. You're absolutely right that, that will -- by the time you get to full year '26, roughly 2x to 3x that number in order to drive that revenue in full year '26. Does that answer your question?

Yes. Okay. I'm just -- I guess the question is you've 16,000 advisers now. I think the addressable market you're pointing out to is 26,000, 10,000. That's actually for split. Yes, that's what I was going Yes. But that's helpful.

Siraj, these numbers are hard to come by. There's no definitive measurement of the number of accounting practices in Australia. We derived that data from sources and some really old ABS data. And the number of financial planning practices is much more clear. But the estimate we have is about 15,000 practices in the market when you take out the duplicates for multidisciplinary. And so we believe myprosperity is sitting at about 3% of market share. So significant upside in an environment where there's pretty much a void. So there are solutions delivered by platforms, by financial planning tools, and by accounting software to do a part of the puzzle. But having the whole solution with accounting data feeds, financial planning data feeds and all the platform data and the investment data coming through, that's a rare beast. And so myprosperity sitting in that space, and in our view, with the right investment capital, the investment for growth, and the ability to leverage HUB24, we can get really significant growth out of -- within the software subscriptions and the number of practices using the technology.

Your next question comes from Scott Hudson with MST.

Just a couple of quick questions. Firstly, are there any other, I guess, relevant competitors in the client portal space that you potentially looked at or if we should be aware of?

Yes. Look, as I said before, the main competitors, a portal that hangs off the back of another solution, whether it's a financial planning software solution or it's a platform, there are not many pure focused portal solutions. And so there are a couple around, but there was nothing that we saw that had in our analysis, had a proven ability to convert the interest in the technology to a revenue stream. There's not many around anything like the revenue stream that myprosperity does and the possibility that we can convert that to a much wider audience.

Okay. That's helpful. Is there any risk of revenue dissynergies as a result of the transaction?

We haven't identified any in our acquisition of other businesses where, obviously, there can be some sensitive points where we're dealing where that business had a competitor as a customer. Historically, we haven't lost that. We have an open architecture approach. We're quite happy for competitors who continue to use the software. There's not a material amount of revenue that we've identified in the $4 million that we think is at risk.

And lastly, does this help advisers lower the cost of delivering statements of advice?

Not directly. It's not an advice solution. It integrates into advice solutions. So part of myprosperity's capability is a digital fact find. So having all of that information for the household already, the ability to move that into a fact find and then integrate that into, for instance, Xplan. So there's the ability to not have to double into that data, so that creates efficiency. It doesn't -- once it's in Xplan, it doesn't really get involved in the advice process. So around the edge, I'd say at the moment.

Sorry, can I jump in? It certainly doesn't make the generation of the device document faster. But the job of understanding the clients' needs and getting the insights and having the information available and not having to scramble and wait and play table tennis to get the full set of information, I believe, could greatly reduce the time taken to formulate advice before you generate the statement. So certainly, there's benefits there definitely around the edges. But that engagement will streamline that significantly in my view.

Just the last one I had, is there a direct-to-consumer potential out of myprosperity product?