OFX Group Limited (OFX) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the OFX Group Limited 1H '24 Results Call. [Operator Instructions] I would now like to hand the conference over to Mr. Skander Malcolm, CEO and Managing Director. Please go ahead.

Thank you, Zach, and thank you, everyone, for joining the call. And as Zach mentioned, I'm joined by Selena Verth, our CFO; and Matt Gregorowski, who leads our Investor Relations program, Cidadel-MAGNUS. Selena and I will take you through the pages and then there'll be time for Q&A. The presentation will cover 4 things; half year result, what was achieved and what drove it; our financials in more detail; the strategy for the larger OFX, including why and how we'll be more valuable in the future and our fiscal year '24 outlook. Let's move to Slide 4 in the pack. Our first half '24 was a good performance with turnover at $19.2 billion, down 3.5% versus prior year, net operating income or NOI at $115.1 million, up 9.4% and underlying EBITDA of $31.8 million, up 1.6%, excluding our Paytron investment. Our fundamentals continue to improve with recurring revenue up just over 2 percentage points to 84% and NOI margin ex same currency, up 8 basis points to 70 basis points. We finished the half at $60.8 million net available cash, a very healthy position. There's no doubt the external environment has been an unusual and challenging one, high interest rates, inflation, geopolitical conflicts continuing to undermine business confidence. This was especially the case in Canada, where our Corporate portfolio saw a reduction in ATV and the penetration of forwards driven by soft Corporate confidence. However, we did not see a reduction in client engagement. In fact, we grew transactions. In the early part of the second half, we've seen ATVs in our Canadian Corporate segment improved considerably with other regional Corporate segments performing well. Against this backdrop, it's very reassuring that the resilience and diversity of our business shines through and to see OFX is globally continuing to execute well. The Firma integration is progressing very well, synergies ahead of our expectations, and our investments in marketing and commercial excellence are driving record growth in registrations as well as improvements in conversions and particularly in our Corporate segment. We closed the Paytron acquisition in July as a strong cultural fit. The product and technology road map is exciting and the opportunity of building stronger relationships with our clients is very clear. So, all in all, a good performance, which gives us confidence in the outlook second half is expected to be stronger than the first half for several reasons, which I'll get into. Moving to Slide 5. You'll see that we have maintained the lower end of our NOI and EBITDA guidance for fiscal year '24, but narrowed the top end to reflect the softer economy in North America, predominantly Canada in the first half. We expect NOI to be between $225 million to $238 million and underlying EBITDA to be between $63 million and $70 million, respectively, including Firma synergies, but excluding Paytron. We have included our second half '24 assumptions as well as the drivers for both the higher end and lower end of the range, which we've updated based on learnings from the first half. In the first half, we drove record NOI of $115. 1 million. This included margin actions in the first quarter to support the clients of a small group of departing traders as we previously reported, reducing NOI. This will not repeat in the second half and was covered by the one-off release of an associated escrow payment of $3.7 million. The record NOI was driven by strong pricing discipline by sound treasury management and through generating interest income on cash balances. All of these will continue in the second half. In the first half, we did see Corporate confidence dipped, particularly in Canada, which impacted Corporate ATVs, and these were down 23.3% in Canada, although we did grow Corporate revenue in both the U.S. and Canada as we grew transactions. We've seen margin improvements quarter-on-quarter and expect a stronger second half in America. I will talk to our Corporate segment in more detail in a moment, but we have seen another good half with active clients growing and particularly good growth in our new business assets, with registrations up 41.9% and conversions of prospects also improving. This, combined with our usual strength in retaining a growing plan has meant our active plant base returned to overall growth. I will also cover Enterprise in a moment, but part of the confidence we have in a stronger second half overall is the excellent progress we're seeing in Enterprise with revenue up 46%, a stronger pipeline and our first new clients signed in North America. Our high-value Consumer segment also had a good half, delivering just under $36 million in revenue, some of our popular high-value use cases returned after a subdued second half in '23. Therefore, our outlook includes confidence in the momentum we have, which has continued in the early part of the second half, balanced with the external uncertainty that persists. Turning to Slide 6. I'll share more detail on our main segment performance and their drivers, starting with B2B. B2B is our main focus and represents 2/3 of our revenue. So it was good to see 6.8% growth versus first half '23, even with the external conditions I've described affecting Corporate revenue in Canada, particularly. We grew B2B revenue in every region. We grew NOI margin, we grew transactions and transactions per active client and all very healthy signs for the portfolio and a testament to the strength of the client relationships. The decline in Corporate ATVs in Canada was higher than we anticipated. However, we saw that decline moderate in the second quarter versus the fourth -- first quarter and into the second half, and we expect the decline to moderate further as confidence returns. And I'll talk more about this when I cover our Corporate segment in a moment. Moving to Slide 7. As the title suggests, we see momentum building in our Corporate segment. Revenue terms, the decline we saw in the second half of fiscal year '23 was reversed in first quarter, and this was stable in the second quarter despite the margin action we took in Canada. We grew revenue in each of our major markets, including Canada, with especially strong performance in the U.K. and Europe, which demonstrates the benefits of having a diverse global business. We grew transactions and transactions per active clients globally as well as active clients. All these metrics confirm that we have very engaged clients who continue to see the value of working with our FX. What we're particularly delighted with though is the progress we're making in building our commercial and marketing program for Corporate. As you will recall, we pivoted our marketing program to be focused on Corporate around 3 years ago. And since then, we've continued to invest where the real breakthroughs are coming in our ability to convert that interest we generate into new dealing clients. We have done that through several investments in our platform but also through the improvements in our commercial teams and the efforts we're expanding into [ budding ] prospects. We've always been strong at growing existing relationships. So getting strong at winning new ones at scale is very exciting for future value creation. Moving to our Enterprise segment on Slide 8. It's wonderful to see the revenue growth at 46% given the investment and hard work our teams have agreed. We have learned a great deal here, particularly how to win and activate smaller clients, and it's terrific to see traction building, especially amongst recent wins. The pivot to focus on smaller opportunities and to activate them quickly is working. We have seen strong growth from our established clients also. The pipeline is healthy, and we're delighted to have our first new Enterprise client in North America with the second signed after the close of the first half. As we've previously said, this segment will grow in its contribution to OFX over time, generating EBITDA accretive returns. Moving to our high-value consumer segment on Slide 9. We drove a good first half, delivering $35.8 million in revenue, which is one of our best ever. And this was against an unusually strong first half of fiscal year '23, which in turn drove a very strong overall result. We see in Consumer that volatility has driven activity in some high-value use cases, particularly property and wealth transfers, and we've seen this activity continue in the early part of second half. The return of higher value use cases to the mix drove ATVs up to approximately [ $20,000 ], which is in line with our long-term mean. So in all, good execution and momentum intact for a stronger second half. Now let me hand over to Selena to walk us through the financials in more detail.

Thank you, Skander. Moving to Slide 11. We have delivered a strong financial result. Fee and trading income is up 3.3%, and strong growth from EMEA, up 16.1% and APAC up 2.7%. Skander has already taken through North America was softer down 3.4% due to short-term margin actions and Corporate confidence suppressing Canadian ATV, taking them down 23.3%. It is great to see strong underlying portfolio metrics in North America, with transactions up 13.4%, a healthy Corporate pipeline, a new Enterprise partner signed, additional new signings in the second half. Net operating income of $115.1 million is up 9.4% on the first half '23 and is our highest ever. This is more than fee and trading income due to strong interest income for the half of $4.3 million as we generate interest from our cash balances. NOI also includes the $3.7 million escrow release, which has offset the lower North American fee and trading income. These items, along with pricing increases have driven higher NOI margin up 7 basis points to 60 basis points. Underlying EBITDA is $31.8 million, slightly lower than the first half '23 at $32.3 million. Excluding this Paytron EBITDA of $0.9 million is at $32.7 million, up 1.6% on the first half of '23. We will take you through our operating expenses and while they are up 14.2%, the gross rate in expenses have slowed, up by only 5.9% on the second half of '23. Our tax rate in the first half of '24 was 15.1% and is lower than our guidance tax rate of 24%. This is due to 2 items. Firstly, the $3.7 million escrow release that is in other income is a nontaxable return of capital. Secondly, we had a R&D -- higher R&D plans than we anticipated for fiscal year '23, which has resulted in a large tax [ offset ]. As previously guided the OBU tax regime ratio seems to be end of last year and we no longer have any OBU tax benefit in the first half of '24. Statutory net profit after tax was $15.8 million, up 4.9%. This does include $1.1 million of one-off costs related to Firma integration of Paytron and Paytron integration costs. We have a strong balance sheet and our net cash held balance is $92.8 million. Moving to Slide 12. Our underlying operating expenses were $83.3 million. As we indicated at the full year results, our expense growth has slowed, up 5.9% in the second half of '23 from 14.2% in the first half of '23. This is most notable in employee and information technology. The employee expenses in the first half '24 reflects [ CPI ]and full year run rate of employees is [ $2.7 million ] and Paytron [ $0.7 million ] offset by productivity programs, which include Firma synergies. Promotional expenses were $9.7 million, up from $7.7 million in the second half of '23. We tend to have a higher first half spend as our branding campaigns are built and executed in the first half. In the first half of '24, we refreshed our OFXpert campaign globally and are really happy with the results. As Skander mentioned, Corporate registrations were up 41.9% on the first half of '23. Technology expenses of $6.5 million were up 4.9% in the second half of '23. This reflects our technology infrastructure costs currently running on 2 platforms, OFX and Firma which will be simplified once integration is complete. We have successfully completed Australia, U.K. and New Zealand migration and the Canadian migration is progressing well and should be completed in the second half of '24. Bad and doubtful debts are in line with our expectations of $1.2 million. We continue to remain vigilant and invest in technology to combat fraud while also ensuring we review our credit position and collect collateral from clients [indiscernible]. We continue to invest in our single global platform and are excited for Paytron as a platform for our Corporate clients. Our investment in the first half of '24 was $9.3 million, which is 8.1% of revenue. For the full year, we expect this to be at similar level of fiscal year '23 as we have guided. Our Firma migration continues to be a success. We've migrated clients from Australia, U.K. and New Zealand. Of the annual $5 million Firma synergies we are targeting by the end of [ Q3 ] '24, $3 million of these are cost synergies. We are pleased with how these initiatives are going and we're ahead of our expectations. Expense actions include closing duplicate offices, head count reductions where there is excess capacity, savings in our bank fees and platform consolidation. Moving to Slide 13. We continue to see margin expansion in the half. NOI margins of 60 basis points, up from 57 basis points at the end of fiscal year '23. And at same currency, 70 basis points up 68 basis points at the end of fiscal year '23. You can see from the margin, we increased pricing [indiscernible] basis points, which includes treasury management. We watch the market closely and have an excellent pricing engine that we can use to test price elasticity and if there is more or less elasticity for the service that we offer, we will command a higher price. We've worked hard to ensure the cash balances, we generate interest income with the rising interest rates. We generated $4.3 million of interest income in the half, up [ 64.7% ] on the second half of '23, which was [ $2.6 million ]. You may remember the AGM, when we provided 1Q '24 update that we unexpectedly had a handful [indiscernible] with the business. We continue to provide excellent service to clients across OFX and Firma and to mitigate the risk of clients leaving we took defensive actions short term, which impacted NOI margins. [indiscernible] deposits were allocated to service most experienced trade expect revenue to return to historical levels through the balance of the year. Therefore, we saw a temporary reduction in margins, which is offset by [ $3.7 ] million related to other income. The escrow release is accounted for in the third quarter of '24. As we continue in an inflationary environment [indiscernible] naturally concerned about the effect it may have on our growth [indiscernible]. We continue to manage margins and generate more prices we feel elasticity to ensure we get the right price on the fantastic service we offer. We'll also continue to work our cash balance to generate interest. It is a critical lever which we can generate excellent value when it is managed well. Turning to Slide 14. We continue to have a strong balance sheet. Our net cash held position is $92.8 million, which is both the cash held for own use and deposits due from financial institutions. For some of this cash collateral for our trading lines of bank guarantee. Collateral and bank guarantees was $32 million, resulting in a net available cash balance of $60.8 million. So our cash flow from operating activities in the first half of '24 generated a high cash conversion rate of $31.8 million, underlying EBITDA generated $33 million of net cash flow from operating activities. Tax payments of $7.4 million were offset by the $8.2 million change in the forward book declined forward maturity in the half. We funded the Firma acquisition using a $100 million 5-year debt facility. We've paid down a further $11 million with our loan balance now [ $55.8 ] million. And net debt is $11.8 million given our strong cash balance. We're on track to repay the debt facility within 4 years subject to no other value-accretive growth opportunities emerging which -- by funding. We announced our share buyback program at fiscal year '23 results in May. It's part of an active capital management strategy which returns value to shareholders, while also providing capital flexibility to execute on growth investment. In the first half of '24, we deployed $7 million on market to purchase 3.6 million shares. The buyback program continues to be active through the 12-month period. Skander will now take you through strategy and our fiscal year 2024 outlook.

Thank you, Selena, for that excellent detail on financials. And moving to Slide 16. And we've shared this slide before. It describes our ambition to grow and how we believe we can create a more valuable company. I won't spend too much time going through this again. So for those who aren't familiar with it, you can access the recording of our Investor Day in March of this year on our website. And I will highlight that we said back then that we knew we could, through the strength of our client relationships, generate revenue beyond the core spot transactions that we do today. We announced the acquisition of Paytron soon after. And that move was a very clear action to take us in that direction for our clients because the Paytron platform and team while supporting clients and cross-border payments was built to solve another pain point being AP automation, and that is what they have been doing, which we will bring to all OFX clients in the near future. Moving to Slide 17. This describes how and why this is valuable. We feel it's important for investors to understand this as you consider the value of OFX now and in the future. What is unassailable is our absolute focus on growing our revenues in a way that generates healthy returns. Firstly, our new platform will help us to win new clients and generate more earnings from existing clients by providing a richer client experience, more products and a better digital experience. Specifically, access to ATV automation cards and better risk management. In each area, our research and industry experience shows that clients value these products and services from reliable and trusted partners. And our very low lapse rates, our very high NPS scores and the growth in our transactions for active clients confirm we have very strong relationships. Our research tells us they want this and industry experience shows when it's done well, it works. You can see the investments we've already made in marketing, commercial as well as risk in helping us build a much more efficient and substantive growth engine to win new clients. We will continue to use the mix we have today across marketing, partnerships, alliances and direct sales. We will get better by targeting a lead management and commercial excellence with bigger and with stronger ROIs. I have shared one example and there are many of the kind of revenue growth that has been generated by competitors in cards. Paytron already issued cards, and we expect to start offering cards to OFX Australian Corporate clients in fiscal year '25. On the right-hand side is a breakdown of the indicative mix we'd generate across our products and services when these programs mature, as we've shared with you previously. That mix is more sustainable, generates more growth and is more engaging for clients over time, and that is what we're driving for and toward. So in closing, our fiscal year '24 outlook on Slide 18 is to produce a stronger second half. As I mentioned earlier, we expect fiscal year '24 to deliver NOI of between $225 million to $238 million and underlying EBITDA of between $63 million to $70 million, including Firma synergies and excluding the acquisition of Paytron. On the right hand side are the main second half assumptions as well as the drivers, which would see us in the year at the lower or upper end of the range and what impact these would have. As Selena mentioned, we have reaffirmed our guidance on intangible investments for the year. Overall, we believe we are well placed to achieve a stronger second half performance because we saw the momentum in our Corporate segment built through 2Q, and it has continued early in the second half because margins continue to improve because we expect a stable consumer contribution. Finally, we have strengthened our balance sheet and continue to generate cash to invest and the team is executing well. Thank you for your attention, and I'll now pass back to Zach to hand over to Q&A.

[Operator Instructions] Your first question comes from Owen from Canaccord.

First question, just around the -- obviously, a bit of a margin contraction during the period, revenue growth [indiscernible] and OpEx growth to 14%. Can you just kind of touch on the level of OpEx in the first half. Is that expected to stabilize in that -- at that level? Are you taking any cost rationalization programs? Or is it steady state there?

Yes. So as we said before, we are running productivity programs through the business. So we are limiting costs as much as we can. The other thing to take note of as well, which you would have seen on in our past results is promotional expenses tend to be a lot higher in the first half than the second. That's when we see our branding work. So I wouldn't expect promotional expenses to be that high in the second half, they have to come down. Information technology, professional fees, other expenses, I don't expect, very little growth there if at all [indiscernible] but we're really happy with where they are at.

[indiscernible].

It seems like there's some noise on the line. And then really the one there is employee expenses. We're not planning on adding employees in the second half. So it's really CPI run rate and also offset by any synergies that we can get or expect synergies. Otherwise, we get through the productivity program. So I would expect a lower growth rate on expenses in the second half.

Okay. Good one. And then just to understand the benefit of the flow here on the balance sheet, looking at [ $300 ] million, just to kind of understand how much you guys benefit from higher just right, is that -- do you guys get an interest income of the entire load there? Or is it a proportion of that?

Yes. It's a proportion of that. And what we do is the team, the treasury and operations team work absolute wonders to make sure we put the cash in best places possible, make some interest while they're not flowing on customer payments. In that first half result, there was $4.3 million of interest income in that first half result, which is excellent. Obviously, we've all just seen a rate rise last week that should further add benefit to [indiscernible] Do with that and we are pushing all our banks -- bank counter parties. When we do hold balances, what interest can we earn and how can they [indiscernible]. So I would expect a higher interest income in the second half than the first with everything that we know.

And then just the last question just around the Firma synergies. Obviously, that was going to be second half weighted. You guys have previously guided that obviously saying the exit run rate there is $5 million. How much has it changed in the first half? And how much do you expect to be achieved in the second half?

Yes. On the $5 million, 3-year expense into our revenue, as you may remember, a lot of expense synergies are playing through now, which is wonderful to see and actually are better than expected. So tracking [ $5 million and the 3 ] which is awesome. On the revenue side of the -- one of the big synergies there with -- giving the Firma Canadian trade access to our U.S. licenses. Now we have pockets of that happening now, but the full migration for the Canadian business. All other regions have done the full migration of Canada happened late in the fourth quarter. Once that happens, that will make that tracking better. So that is -- I'd say revenue is not in the [indiscernible] tiny in that first half number. Expense is decent amount in our first half number once they get better, revenue will really pick up by the end of the year.

Okay. Good one. And maybe just one little final one. Just understanding the Corporate acceleration you guys are talking about. Can you give us a bit of a snapshot of how you're tracking in the third quarter for the Corporate revenue. Have you seen back to within that trend growth of between 10% and 15% there.

Yes. So maybe I'll take that one. Yes, I mean, through the first half despite the softness up in Canada, every region was growing transactions, including Canada and transactions for active client very strongly. We saw that continue into the third quarter. But, I guess, the most encouraging statistic we've seen so far is that Canadian ATVs are right back up to the levels that we were experiencing when we initially acquired Firma. So that's very encouraging from a kind of an overall perspective because as Selena touched on, the NOI margins are coming back, including Canada and Canadian Corporate and they're very healthy everywhere else. So really more transactions ATV is returning, that's why the outlook is what it is.

Your next question comes from Lafitani Sotiriou from MST Financial.

Just a few questions for me, if I may. The first is in relation to the traders that left and that you guided to at the last result. Can you just give us a bit of color about how that's gone with a bit more detail? I think you said at the time that you're reallocating one of their clients, you were trying to win those? And was there any element of those traders leaving behind the weaker Canadian number?

Thanks, Laf. Maybe I'll take that one, too. Those traders that left in March. And since that time, we've reallocated accounts. We've actually seen some of the accounts that we were concerned with and volumes going away to come back, which is really encouraging. We've got examples of where clients have come back to us. The ATVs weren't impacted by that last -- we saw ATV across Canada, not just the Edmonton group, which was where that trader group was. We also saw ATVs in the OFX Corporate Canada dip a little, not as much, but the same sort of trend. And so what's been happening since then is really the North American team has reallocated those accounts where, like I said, we're seeing that business come back and the ATVs come back up in Canada. So that's really the extent of it.

Got it. And can we just move on to pricing. I've been a bit surprised to see pricing power still coming through. Can you just talk a little bit to your expectations around pricing power and what dynamics may be driving the strength over the last 2, 3 years?

Yes. What I'd say about that, Laf, is that in an inflationary world we certainly think about pricing and whether we can cover inflation and all the evidence suggests that we can. There's a couple of reasons for that. One, we're really a digital plus human business. So if you're just kind of straight out platform, you're kind of immediately substitutable and pricing is harder to get; two, we've been seeing an increase in penetration of forwards and generally, they're margin accretive; three, we're actually seeing that strength in difficult times, clients are hugely grateful for. So as you start to get those relationships and more transactions you actually see that support from clients. And I'd say for definitely the competitive situation very different from where we were a few years ago. And I've talked to you in the past about some competitive pricing and actions that have been very aggressive in some of the public companies you would be aware of last. So -- but as Selena said, you never take that for granted. You have to look at the relationship, you have to think about the sort of service and value equation that we're providing. But what they like is things like faster payments, lower fees. We've just recently, for example, in North America improved payment times. All of those things go to reassuring clients that they're with the right partner. And obviously, that includes generating a fair price for the service.

Yes. Got it. Can I just circle to Paytron for a little bit? I know it's only a relatively recent transaction. I was kind of expecting maybe a little bit more color on the road map, expectations, hurdles when we could expect revenue? I know you did mention financial year '25, but can you just talk more to the integration rollout and your ambitions with that business?

Sure, Laf. And look, we closed in July. And obviously, we've been sharing with the market and everyone kind of how we expect the financial profile. And I would say, obviously, on track for that. But I would say to you with a bit more color, I'd say we're more encouraged than we were even 3 months ago. And the reasons we're more encouraged, number one, we were working on various platform investments, which Selena has laid out over the last couple of years, which were producing good outcomes. And obviously, part of the Paytron rationale was one of the modules, particularly the client user interface looked very attractive to us relative to what we were building, and that appears to be both technically and operationally sound as an assumption. To the value proposition that the Paytron folks were working on was also something that we had been aware of and we're working towards. We've published strategically, we were moving towards more than spot by way of revenue sources. And the Paytron folks are really proving that out. And I would say, three, culturally, it had a really very positive effect on the OFX teams. When you're going through various platform investments and you're thinking about things that you want to do, oftentimes at this stage, just sort of fixing things and you're trying to introduce new things, but the Paytron folks have really brought a level of energy to the new products like cards, like AP automation to the broader OFX community. And I would say to you, there's a lot of kind of Firma around the group around when they can get access. And then the second part of your question, we're well advanced in terms of the integration, conversations and planning. In fact, we made one of our co-founders [ Francois ] our Global Head of Product. So he's looking at products across the group now. He and the team are working very hard with the group to work through the integration. And as we've highlighted, we expect to be able to start offering it to OFX Australia Corporate clients next year. We'll do some tests ideally this year, but definitely next year. So we feel pretty positive about what we've actually bought and the team and the culture and the kind of optionality that it provides for earnings and growth in the future.

Can I just follow-up on that? So in terms of timing of revenue and ramp-up, can you give us a bit of color? So is it started next financial year? Is it later on? How broad-based? And do they have some organic growth initially? Has that just all been put on hold while you work on the integration?

Yes. So they do have organic growth, but obviously, they're in a start -- a very early start-up phase and you can see in the footnotes actually on the second slide there, exactly how much that is. Revenue is about [ $200,000 ] orders worth now and it's growing ex one-off [indiscernible]. And we did highlight when we bought it that it would be EBITDA increasing in the short term because the cost -- because of where it is. The costs are higher than the revenues but we love what we see. And we also love what we see with others done this, which is a great point that our customers who want the product, have used the product and generate great returns. Within the consideration, you may remember, and you get back to our full year results presentation. The consideration is [indiscernible] based on migration also revenue milestone. So everyone is motivated to make sure that we make this in growth. We also make sure that our Corporate platform of the future, and we're all working in that direction and the full -- pretty much 100% of the consideration is that. So we haven't released what those often are in the market, but we're all running in the direction that we wanted to work. We see great revenue there. And you can also see in that presentation, we said that the current subscription should at least be 5% of our revenue stream in the future.

No, I got that. And just can you say a bit more color about how you execute that, I'm sure you said in the future. And just my final question is to do with Enterprise now. We've actually been waiting for a little while. You've had some big client wins in the last few years and you finally had a spike in the revenue. Could you just add a bit more color around, is it more your new wins that you've had recently that had contributed to that revenue growth? Or is it some of the wins that you've had previously finally starting to ramp-up? Or is it a mixture of both?

It's a mixture of both, which is the best answer I have. We've got a really healthy relationship with our existing clients, and we're continuing to see great support from them. And that's really encouraging. But then to your point, we talked about this about a year ago, where we said, look, the larger clients continue to be attractive to us. They're very encouraged by what they're seeing on their side, but getting larger clients activated quickly is challenging. So we really started pivoting to the smaller clients, and that's worked exceptionally well. So if you look that shift [indiscernible] so examples, you have both of them from signing to dealing clients at revenue less than 100 days. And also what I like is that the technology that we use with some of the larger clients has been reused and indeed, the North American win in the first half, the Toronto Stock Exchange. So that's a big, if you like, use case, we're obviously working with Link here in Australia and being able to have a great reference client, great technology that works can be exported globally, and it hasn't created a huge intangible investment to go build best solution. That's why we feel good about it Last, and I know you've always called that out as a big opportunity for the company and like you, we're delighted but starting to see that momentum really build over time.

[Operator Instructions] There are no further questions at this time. I will now hand back to Mr. Malcolm for closing remarks.

Thank you, Zach, and thank you, everyone, for joining today, and I look forward to catching up with you as we manage our roadshow over the next week or so. Thank you very much.

That does conclude our conference for today. Thank you for participating. You may now disconnect.