NowVertical Group Inc. (NOW) Earnings Call Transcript & Summary

My name is Glen Akselrod with Bristol Capital Investor Relations representative for the company. I'd like to thank everyone on the call for joining the webcast this morning. Before we get started, I'd like to remind everyone to read the company disclaimer and forward-looking statements that you could find on Page 2 and 3 of today's presentation and on the presentation materials related to today's earnings press release and financial statements that are available on the company's website, Investor Relations section at www.nowvertical.com. and in the sedar.com website at sedar.com. All figures discussed on today's call are in U.S. dollars and will be on an IFRS basis, unless otherwise noted and we will refer to specific non-IFRS such as EBITDA, please refer to the cautionary notes in our presentation and to non-IFRS and other financial measures section in our MD&A for more detail. Today's presentation will be led by Sandeep Mendiratta, the company Chief Executive Officer, is also joined by Christine Nelson, the company Chief Financial Officer; and Andre Garber, the company's Chief Development Officer. We'll break for questions at the end of management's formal remarks. During the question-and-answer session, we're going to take questions from our covering analysts over the phone or on video and all of the questions from our listeners through the webinar portal Q&A chat box. Thank you for joining us. And now I'll turn the call over to Sandeep to begin this earnings call. Everyone just stand by, Sandeep disconnected. Again, if you're joining us, Sandeep's line disconnected, he'll be joining us shortly. Everybody who's on the call, please stand by. We have Sandeep back with us.

My apologies. This was just my laptop I think, wanted to install something on Zoom. I'm back here? Give me one second. Yes. Welcome, again, to the quarterly results of NowVertical and just as we do for the refresher for our existing investors and for any of the potential investors joining us for the very first time, just a refresher on what we do for our clients, who we are and then we will dive into the quarterly results as well as Christine is going to take you through some of the details of our quarterly results. And then I will talk about some of the business updates as well as how our strategy is evolving and developing. But first and foremost, why we exist in the market? We help our clients transform data into tangible business value with data and AI technologies, and we do it really fast. Now let me break this down for you. Data, as we all know, is a very vast subject. We focus on the areas that have the greatest impact on the enterprises and businesses and that's customer and finance data. The power that we bring by extracting value of the customer and finance data is just phenomenal for these enterprises. This customer and finance data combination is the engine for the marketing campaigns that you may be seeing, the sales operations, customer services, finance departments, and we help them unlock that value in their data. What do we mean by business value? Let me give you an example. So for the economist, we help them increase the subscriber retention by 9%. And this is what we call as tangible business value, which you can tie down very nicely and easily and directly to the revenue or the cost savings. So that's the tangible business value we deliver and how we work with the data and AI technologies is some of these hyperscalers, the likes of Google Cloud, Microsoft Azure, AWS and we also then bring in our own proprietary software at the appropriate times that really unlocks the value and delivers the ROI with data and AI technologies. That's what we do for our clients. Who we are is we are a global data and AI company and we are making the enterprise AI possible. This is a rapidly growing cloud market and this rapidly growing cloud market is heavily influenced by the data and AI technologies. We are structured in two markets, and that's how we span across the globe. The two markets are North America and EMEA market and the LatAm market. This way, we are able to support so many of these global clients and wherever they are operating from very nicely. We serve as of today, more than 250 clients that are on our portfolio. But interestingly, out of those 250-plus clients, we have got more than 100 clients that are of enterprise grade. These are the multibillion dollar revenue businesses, FTSE 500 very large enterprises, household names that are on our portfolio. And we support these clients, these enterprise clients and all of our other clients with the 500-plus strong team of data and AI professionals that are again spread across the globe. What we really bring to life is by delivering the right kind of technologies that you see on the screen on the right side on the screen, like I said these are the -- they are hyperscalers, the Microsoft Azure, GCP, AWS that we work with and we combine the scale and power of these hyperscalers. But at the same time, we're also growing in some of these data platforms like Snowflake and Qlik that are the right software in certain situations and to deliver certain use cases for our clients. Anaplan is another finance specific forecasting model software that has got really high value for large complex enterprises and especially is driven by the CFOs in the business with the connected planning approach. These 6 technologies bring in majority of our revenue, and we are strengthening this power even further. We are really proud to be working with some of these client logos that you see here, the likes of say Adobe, Sky, Naranja X, AstraZeneca, Bayer in LatAm also. So these are some of the clients that have got really global footprint and have got very complex landscape where we can bring in a lot of value over a very long period of time for these clients. Just getting into the revenue performance of our quarter. Of course, you may have seen the published press release already. There is a decline in our Q2 2025 quarter as compared to our Q2 2024. Our revenue in quarter 2 2025 is USD 8.3 million. This decline reflects the planned actions rather than any kind of demand weakness for our solutions and services in the market. And that's one thing I just wanted to clarify upfront. I'll take you through all of these 3 factors that have influenced so called decline in the revenue in Q2, 2025. But before we discuss that, it's important to remember that roughly 20% of our revenue comes from our own proprietary software license or the license of reselling activities. And these license reselling activities, which are primarily with say the likes of Qlik or Google and whatnot, they are concentrated primary in the LatAm market for us and specifically in Brazil and Chile within the LatAm market. This part of the business behaves quite differently towards solutions and services business, which affects the quarterly comparisons at times. So just giving you the context that this -- the reason I'm giving you in the context of that 20% of our revenue side is because all of these 3 factors are coming from that side of the business, which is within LatAm and Brazil and Chile specifically. So going into the first aspect that had the impact on the revenue, last year, we began signing multiyear license deals. And just to give you an example, a 3-year licensing deal $1.5 million of a 3-year licensing deal which is invoiced at $500,000 per year is recognized upfront under IFRS. So what that means is the $1.5 million of the revenue and the associated cost, all of that will hit our 2024 results even though we receive the cash in annual installments from the multiyear deals. These long-term deals are really positive for our business because they bring in that predictable cash flow. However, in the accounting treatment, what that means is that revenue comparison in 2025 reflects that hangover from the upfront recognition of that revenue in 2024. So the multiyear contracts, although they are really positive for the business, but right now because we started signing them up in the last year for the very fist time in any meaningful ways we are just having that hangover 2025 comparison. And this kind of effect is going to be normalized in the next few quarters, absolutely, as we sign more and more of these multiyear deals every year. So this was a $1 million impact on our revenue for Q2 2025. The second part is coming from Chile. You may remember last year, we restructured our lot of LatAm business, and Chile was one of the key areas that we restructured the business in. This business was incurring losses and had very poor cash management as well. What we have done is we have brought in the new management team there and a new commercial team which is now rebuilding all of that revenue and streamlining our P&L and the cash flow as well. So while we are rebuilding all of the revenue there, we have an impact on the 2025 revenue so far. The positive thing is we have reestablished our relationship with Qlik and Qlik was the only relationship or the most primary relationship that we were dealing with within Chile. We are also now building our relationship with Google Cloud and expanding and enhancing our footprint within Chile. So the revenue that has been in Chile is a lot more meaningful. It's a lot more strategic revenue and it's profitable revenue in Chile. But we will see this revenue being rebuild in the next few quarters as well, and we are very confident that we will be able to replace all of that restructuring revenue impact that we have. One of the things that we do is we sell to the public sector or the government bodies also. And this part of our business is now only concentrated in Brazil. Some of the contracts that we were dealing with in the government side. Again, these are all licensing contracts. They got deferred from Q2 to the future months. And sometimes these government procurement cycles could be very unpredictable. However, our teams are very confident -- we are very confident that we will be closing these deals in the coming months. This impact was about $760,000 to be very precise. Now overall, that is more than $2 million or $2.2 million impact that we had on Q2. But like I said, this decline is very planned actions coming from the planned actions rather than any kind of market weakness from -- for the demand for our solutions and services. So we are really confident that this is not really an ongoing impact. This is an impact just we are seeing in Q2 because of these factors. Just to give you a snapshot of how our H1 looks like against the results for Q2. Of course, the revenue dropped in Q2 2025, which is $8.2 million, and that's a drop of 13% year-over-year as compared to '24. The EBITDA, again, had the same reflection, majority of the licensing deals because it's net revenue as we register under IFRS would have an impact, it will be translated into our EBITDA as well. Because of that $2.2 million impact on our revenue that is coming from primarily the licensing deals or the reselling of the licensing deals, the EBITDA also had an impact, which is down 29% year-over-year. However, the positive news here is that all of the efforts that have been going in restructuring and really cost management and bringing that efficiency into the cost management, we have got very positive operating income from the operations. So that's really positive. But if you look at the H1 numbers, we are looking really positive. Of course, the revenue is just a soft increase year-over-year to $18.6 million. The EBITDA is massively positive at $3.6 million as compared to last year H1. And at the same time, the operating income has got a phenomenal impact, which is 622% increase over the last year H1. So $2.2 million of the operating income is a very fundamental KPI for us, and that's looking very positive, which kind of bakes in all of the fundamental KPIs in the right place for us. So although Q2 performance, we are completely mindful of that what really has occurred in Q2, we are very excited about the results we have delivered overall in H1. And that gives us a very strong outlook for the rest of the year, and we are very confident that we will be closing the whole year on a very strong KPIs. I will now hand it over to Christine to take you through some details of our finance updates, but I will then come back and talk to you about some really interesting insights about how we are shaping our strategic accounts program and how that's translating into our strategic revenue mix and more sustainable growth. Over to you Christine.

Thanks, Sandeep. So I'll walk you through the adjusted EBITDA and income from operations performance. So adjusted EBITDA was $1 million in Q2 2025 compared to $1.5 million in Q2 '24. And then year-to-date performance is incredibly strong, leasing by 36% to $3.6 million from $2.6 million in the prior year. Also, income from operations has increased by 41% to $0.6 million in Q2 2025 compared to $0.4 million in 2024. And another actually incredibly huge improvements on our year-to-date performance, which has increased by 622% which is $1.8 million compared to $2.2 million -- compared to $0.3 million sorry, in 2024. So huge improvement here. In both of these KPIs we've seen incredible improvements. This is really driven by management's concerted effort to manage costs, our move to an operator-first model, and also to drive our growth within our strategic accounts. And now while it's not shown on the slide, and I know Sandeep mentioned it, our managing cost has been a huge piece for us to be sustainable going forward. And admin costs are not on the slide, but they have decreased if we were looking quarter-over-quarter by $1.4 million or 31%. And then year-to-date, we've actually been able to reduce our costs by $2.4 million or 22%. So these efforts that set the company up for sustainable success and -- and while we're continuing to grow our strategic accounts, we're also continuing to find more efficiencies and more cost efficiencies in the business. Next, I'm going to talk about the big deal that we did in Q2 that we're incredibly proud of. So this quarter, we completed a massive debt recapitalization with HSBC. This has been truly like transformational for the business on multiple levels, and I'll walk you through those. But it's also just set us on a very strong foundation for scalable strategic growth going forward. So right now, as of Q2, we have a $6 million term loan that's amortized over 5 years, and we have an $8.7 million draw on our revolver, which leaves us with another $11.3 million available of capital for us to grow the business, whether that's organically, inorganically. So one of the big things for us, just from a finance accounting side, it's really simplified our balance sheet, simplified our debt structure. Previously, we were spread across multiple lenders. Now we have one major lender, simplified balance sheet, improved working capital position and also significantly improved terms. So the actual cost of our capital has decreased significantly. Under our previous structure, cost of capital was around 11%, now it's closer to 7%. In addition to that, our payment structure has improved as well. The revolver is in interest only, so with the principal due in 3 years. And then we also have an option to extend that for another 2 years as well. So the reduction in cost of capital improved quarterly debt payments, has freed up even more funds in addition to that $11.3 million and the $26 million line to drive our strategic growth. Furthermore, this deal has given us additional flexibility. As we know, we have a convertible note that's due in October. This HSBC deal gives us the flexibility to fully retire that now. Overall, this debt recap has just put us in an incredible position to fuel our organic and inorganic growth under our One Brand, One Business strategy. And we're incredibly excited to work with such a fantastic global supportive of partner in HSBC. Back, to you, Sandeep.

Wonderful. Thanks very much, Christine. We cannot be happier with a partner like HSBC on board with us right now. And like Christine said, it really gives us the power and fuel to now not only take care of our balance sheet properly, simplify everything, reduce the cost of capital but also now invest in the future growth, which we never had in the past. So now we have the means to really point the real accelerators in our business. And that's -- that point brings us to this thing about our strategic accounts. Before I talk about the strategic accounts, what we mean, first of all, by the strategic cuts or how we define the strategic accounts is two things. First of all, these are very large enterprises, typically multimillion dollar enterprises, global businesses with revenues of at least USD 500 million. That's how we typically define these enterprise clients from the size perspective. But the second part is we also want to assess what's the headroom for us to grow by bringing the value to these businesses. When these 2 things match, it's not just about the size, it's also about the partnership that we could have to offer the right value to these enterprises and how much of a problem we can solve. When we spot these 2 things, these accounts go into our strategic account part. Now the interesting part is, if you remember, we had the growth in the strategic accounts as one of the core pillars of our strategy when we published that in early 2024. So strategic accounts growth is one of the key drivers of our strategy if you like. What we are really pleased to announce is this strategy is gaining traction. It's generating the right results, it's working. So what you can see on this slide is the top 30 strategic accounts that we have been talking all along 2024, we had $6 million of revenue from them in H1 2023. In the last 2 years, if you compare the first half, in the last 2 years, we have almost doubled our revenue in those 30 strategic accounts. And this is coming from the focus that we have brought into these accounts by bringing the right mindsets, bringing the right people. And also when we have integrated our business, bringing in all of the cross-sell and up-sell of the solutions and high-value services that we offer to our clients. Why this also matters is if you look at the lifetime value of some of these strategic accounts, they could go upwards of $5 million easy. Majority of them have got a lifetime value for us of more than $5 million. In fact, many of them have got more than $10 million of the lifetime value. One of our largest strategic accounts and long-running strategic count has got more than USD 20 million of lifetime value. That's how valuable these relationships are. So one of the key points there is we don't need to have many of these strategic accounts or we don't need to even go and win many of these strategic accounts. Even if we go and focus on 2 things, One is expanding our presence and are offering our value to these existing strategic accounts and just adding a handful of those strategic accounts to our part, that will really deliver phenomenal rate of growth to our business. What we have done in terms of growing that strategic account part is we have also added another 10 strategic accounts to this part of 30 strategic accounts. So overall, now we have got 40 strategic accounts that we are focused on. And these 10 additional accounts have now brought in an impact of $1.6 million of revenue to our H1 alone in 2025. And you can see how we have also focused on these new strategic accounts to bring in that meaningful revenue and that sustainable revenue growth from these strategic accounts. That's the key value that we have. One of the key factors that had impact in the revenue mix that you look at in the business now and the impact of that revenue mix is that we now have got 70% of our revenue coming from these strategic accounts, more than 70%, which was only 45% of the revenue. This is high value, this is more realtering, recurring kind of revenue. This is more profitable revenue, and that's what we are really excited about. So what we have been able to prove is that the strategy that we laid out is working really, really well for our business. It's growing our profitability really in nice pace, but at the same time, bringing in the right revenue mix. What we'd like to do is amplify this strategy now further and what we have got with HSBC as a partner is the availability of the capital to invest in the right areas. And at the same time, if you combine that with our positive operating income, we now have all the means to accelerate our growth and amplify the strategy even further. This is exactly what we have been waiting for and now that we have got these means and the capital to invest, what you would see is in the next few quarters, the rate of our growth will be a lot more aggressive. And this is where I just wanted to bring in to your attention, how the strategy is beginning to work and deliver tangible results for us. Our goal is really clear. We want to reach in our short-term milestone that we have defined is the $50 million of the revenue run rate and the $10 billion of the EBITDA run rate And I believe we would like to see 10% of this overall revenue coming from our integration activities by consolidating all of our acquisitions and running as One Business, One Brand. How are we activating this is by bringing in our strategy of the accounting division or the strategic account and the headroom that we have in all of those strategic accounts that I just talked about. And this is then supported or enabled by the critical partnerships, the technology partnerships that we are weaving and nurturing really nicely, for example, we are premier partners with GCP, not only in LatAm now, we are also premier partners in the U.K. We are Channel Growth Partner of the Year with Qlik as well. These are the partnerships that we are nurturing that then enable us to bring in some really good, really meaningful strategic accounts, the net new strategic accounts to us by offering the right technology solutions to them. The capability integration comes from all of the integrations that we are doing. There are so many examples that we have. We have brought in so much of efficiencies in our delivery model. We have brought in so much of collaboration of picking up one part of the business that is really strong in delivering one particular service or solution, bringing them to the other parts of our business. And that's the capability integration that we have. We have also bought the global center of excellence going on now, which are now also not only bringing in the efficiencies but also driving the innovation with our clients and keeping us 2 steps ahead of our clients in the market. At the same time, we have these growth levers, which I talked about, we have got massive headroom within our strategic accounts or the enterprise accounts. And we are, at the same time, embedded in key growth markets, both in the North America and EMEA market as well as LatAm. And the contracts that we deliver, the solutions that we deliver are really high value, some of them even more than $1 million for a year of our solutions and services to a particular client. We have also embedded our operational scalability with hyper-elastic delivery model and our delivery powerhouse is sitting between Argentina and India, and there's a seamless integration going on there with operational KPIs now being measured for the whole of the delivery model. And like I said, all of the strategy is then enabled with these critical technology partnerships, which are the key enablers of growing our strategic account part. So that's where our strategy is and how the growth levers are working. What we are -- what we see ourselves as positioned in the market is for that scalable strategic revenue that I talked about, which is more profitable, which is more sustainable and more reoccurring and recurring in nature, which we are already doing. Sustainable cash generating operations. We have brought about massive changes as we have seen, our operating income is really, really positive, and it has come a long way in the last 6 quarters. So this is one of the KPIs we will hold very strong on to, and we are latching onto it in a way that it really has become a very sustainable operating income. And we have got multiple growth drivers. But primarily, it's from -- it's coming from our operational scalability that we have baked into the business as well as the technology partnerships that we are nurturing. These are the growth drivers that we are looking at. What we have also primed the business for very nicely now is for inorganic growth. And now that we have got the capital available for us to demonstrate growth in the organic side, we are also going to be opening up our taps on the inorganic growth in the future. With that, I will stop here and open it up for any questions from the audience.

Super. Thank you, Sandeep. [Operator Instructions] Our first question comes from Suthan Sukumar with Stifel Securities.

For my first one, I wanted to touch on the reseller accounting changes here. Just kind of curious what drove the sudden shift in the accounting treatment or the accounting -- the guidance here on the treatment of these multiyear reseller deals. Is this related to maybe the makeup of deals whether it's software versus hardware contribution or something else? Just looking for some more color there.

I'll take the initial part of this, Christine, and then you can go into the depth of it. But nothing has shifted as such Suthan. The primary shift there was a positive shift, which is we started signing multiyear contracts last year, which is a positive thing for us because it gives us the predictable revenue and the cash flow in the business. However, like I was saying, the accounting treatment of it means if it is a $1.5 million contract for a 3-year period, then all of that revenue and the associated cost is accounted for in 2024. We, of course, get the cash flow in the subsequent years, but the accounting within IFRS is in the year where we sign the deal. And the only change there was that we started signing those deals in 2024. That's why we are just seeing that impact right now. But as we sign more and more of those multiyear deals, this effect is going to disappear. But Christine, anything you want to add more to it?

Yes, yes. Just to clarify, there has been no accounting change. The only thing was under IFRS with these reseller arrangements, you have to recognize 100% of the revenue at all of the cost on the point of delivery. So say it's a 3-year deal. That's a new deal that we've got a client to sign up for 3 years. 100% is recognized in the day of delivery, where under like a normal subscription revenue, you would expect it to be amortized over that 3 years. So you get revenue in year 1, year 2, year 3. Well, we're having to recognize 3 years of revenue on 1 day. And so normally, if it was a 1-year subscription, you'd see that revenue the same quarter the following year and then the following year, where for these, say, it's a 3-year multiyear deal, we won't see revenue again in our income statement from that particular client for 3 more years. And so just with that huge change of more of these material multiyear contracts being signed it's causing a bit of a timing thing. But as Sandeep says, the cash flow is still the same. So we're still kind of billing on an annual basis.and so the cash flow timing doesn't change. And that's also why you guys have seen an increase in accrued AR and accrued expenses. It's because of those big multiyear deals that we've been closing.

Okay. Great. That's helpful. Second question is on the public sector delays. Can you speak a little bit about how meaningful the public sector is to your business? Like what percentage of revenue does that account for today? What the delays are largely tied to. And from where I sit, it's not something I've looked at as a key driver for your business, but just curious if given your expertise in Brazil and with public sector opportunities is this -- could this be an opportunity as you think about your global footprint?

So our public sector or the government contracts are concentrated only in Brazil first of all now. So the rest of the business hasn't got any meaningful presence or revenue stream from the public sector. In Brazil and the overall revenue from the public sector is less than 8% right now. And majority of that is coming from the licensing deals. It's got the services as well. But a lot of that comes in from the licensing of the software. And this was also primarily tied with Qlik relationship that we have. So public sector only in Brazil, majority licensing deal, less than 10% of our revenue, for sure, and they are trying tied to Qlik. So you're absolutely right in one sense that it is very specific part of our business. However, we do deliver some really tangible business value to these government bodies in Brazil. And there are some phenomenal business outcomes that we have seen, which are also repeatable and reusable in the other parts of the Brazilian government bodies. So the only problem there was that the procurement cycle because of the unpredictability there in these deals just got moved to the future months. Like I said, we are very confident the team on the ground as well as very confident. That's why I'm sharing this confidence on their behalf that we will be closing those deals in the coming months. .

Okay. Great. Last question for me guys, just on the strategic accounts. Obviously, good validation there with this continued expansion with those key customer relationships and it sounds like you guys continue to keep the foot on the pedal with respect to investments here. Can you speak a little bit about the type of investments that you're making to help you grow that share of wallet, grow those relationships? And how are you thinking about balancing that with the operating leverage and margin expansion in the quarters ahead?

So first of all, last year, that's where -- that's the strategy that we communicated, and these are the assets that we saw in the business and the potential of growth -- in that growth lever that we have in the strategic accounts was just massive. We wanted to prove it, first of all. So what we did was brought in first of all, identifying what are those strategic accounts based on those 2 criteria that I mentioned earlier and then brought in the right team, the right account managers, the right technology people in there so that we can really bring in the right cross-sell and upsell potential into those strategic accounts. Also bringing in the right focus. If we were delivering only one part of our solution or a service to that client, how can we bring in the other solutions and services to them. We also leveraged the technology partnerships like Qlik and GCP to penetrate even further into these accounts. So there was the focus and the investment that was brought in. But initially, the idea was to really prove this strategy that we believe we can grow these strategic accounts. And if you now see last 18 months, we have proven that strategy is the right strategy. It's working and it's delivering tangible results for us. So the investments that we are doing now needs to bring is to bring in the wider account management teams there, the wider very senior consulting teams who can understand the pain points of the business who have the right visibility on those accounts and they create the right visibilities in not only one geography, but across the globe that the account may be operating in, create the right visibility there and then position the right solutions and services that are really high value and very profitable solutions and services for us. That's where the investment is going to go and creating that commercial engine for the accounts growth and the expansion, if you like. So call it the account management, very senior consultants type people who understand not only our business, but they understand how to traverse through the industry and a specific account and then bring in the right technology team and the right use cases to expand our value to those clients. But you will see that it's not just one type of individual or one type of role, the commercial engine is going to have, say, pre-sales type of consultants. It will have the consultants who can go and prove the value really fast with a proof of concept or a minimal viable product, which then sets the tone for a larger transformation within those accounts. And we have seen this grow from, say, an initial account where we went in with a $75,000 initial contract for 6 weeks, we have been able to then grow it to $0.5 million to $2 million in the next 12 months and one of the larger accounts even went up to $3 million in the same year. We want to bring in more of those multimillion dollar accounts and we want to expand in those accounts nicely in the future. This is where the investment is going to go. Now one point that you had about the profitability, they -- these accounts, of course, are more profitable because we can see the partnership is over many years. Some of these accounts we have been working with them for more than 5 years, more than 8 years, even 10 years. Now when you look at the longevity of these accounts and if you look at the lifetime value that we get as our revenue, it's really high. And because we are not having to spend on a net new win as much our cost of sales and marketing is lowered. And hence, these accounts are more profitable.

That's perfect. Maybe I'll squeeze in one last one for you and maybe Christine as well. Just kind of curious on what are your priorities here around capital allocation going forward with respect to managing leverage and working capital and so forth.

Our key focus is really Suthan on really accelerating the organic growth, which is right now already proving that we are proving the tangible results from there. So the first aspect for us is going to be to amplify and accelerate all of that organic revenue growth with that capital that's available to us. And where exactly we will do that first, it's going to be in North America and EMEA business because we just know the sophistication of the solutions and the services we have there and the type of strategic accounts we have got in North America and EMEA, we can expand very rapidly. And the value creation that we are going to have for the business by onboarding more of these strategic accounts in North America and EMEA business is going to be higher. That doesn't mean we are not investing in the LatAm business at all. But the LatAm business already has bid on that commercial engine to deliver the organic growth. We will strengthen that further and specifically focusing on the technology partnership channel to bring in new business to enhance our footprint into the existing accounts as well. So those are the 2 areas that you would have where the investment would go from the strategic accounts perspective. But the third area is the nurturing and the core selling and co-marketing with the technology partners like Google Cloud. This is where we are investing quite heavily across the business. There are certain events that are already scheduled in the U.K., where we have now recently received the premier partnership relationship. In September, there are a couple of events already happening where we are jointly going to certain industries and certain type of clients that we want to showcase our solutions to and then see how we can add value. But this particular technology partnership channel, again, has proven to be very profitable and it's proven to be bringing the right strategic accounts to us, and this is why we will be investing more into this third category of our growth lever.

Andre, there are no current questions in the queue from the phone, if you could take the questions through the Q&A chat.

Sure. Thanks. Thanks, Glen. So just building on the strategic accounts, there was a question about how strategic accounts grew 44% in H1 2025 and accounted for over 70% of revenue. So what exactly are this -- or what exactly is the strategic account category and perhaps, and this is for you, Sandeep, if you can elaborate just to club a few questions together in the interest of time. Is this the top 30 accounts that you discussed previously? Or is it a varying set of accounts just trying to compare apples-to-apples.

Yes, they are initially the numbers that I showed you on the slide, I can bring that slide up again, if you like. The growth that we have seen initially what we demonstrated was from the 30 strategic accounts, the top 30 strategic accounts that we have been talking about all of 2024. And that's where the growth came from. We have almost doubled our revenue from those top 30 accounts between 2023, end of 2023 and the H1 of 2025. That's really the massive growth. That's the reason I then showed another 10 strategic accounts was the add-on. These were the 10 -- first of all, I just wanted to compare apples-to-apples between the 3 years. And then I added those 10 strategic accounts. I'm just going to bring in that slide one more time, so that really paints the right picture, let me know if you can see my screen.

Yes.

Yes. So the -- what I then showed was this 10 additional strategic accounts that we added in H1 of 2025 that have brought another $1.6 million of revenue for us. And if you look at the same strategic -- 10 strategic accounts, as we -- over the top 30, it was really minimal revenue in 2023 and even in 2024. We brought in that focus and have been able to grow those 10 strategic accounts to $1.6 million in 2025. So this is where that growth is coming from, and that's what we are really positive and excited about because the strategy that we brought on the paper and we said we think it's going to work, is actually working. So that's where the growth is and just to give the breakdown of those 30 and 10.

And when you think about it from a geography perspective, what's the geographic concentration or a split in LatAm, U.S., U.K., et cetera.