Raiz Invest Limited (5HK.F) Earnings Call Transcript & Summary

Good morning, and thank you for joining us today for our 2024 Annual General Meeting. My name is Kelly Humphreys, Chair of the company and of today's meeting. I begin by acknowledging the traditional owners of the land on which we meet, the Gadigal people of the Eora Nation and with the other lands from which people are joining the meeting today. We pay our respects to their elders past and present. It is now 11:00 a.m., and with a quorum present, I declare the meeting open. I also confirm that the meeting has been properly constituted. I'd like to introduce Jon Brett, Non-Executive Director; Brendan Malone, our Managing Director and CEO, Alex Gao, our CFO; Brad Edwards, our General Counsel; and Julie Foster, our Head of Marketing. We are also joined by Tim Aman and Jeshan Velupillai from BDO, the company's auditors and also Kamille Dietrich, the Company Secretary. We have an apology from Robert Hines, Non-executive Director. Extend rather our welcome to those shareholders who joined the meeting into and also those who are joining us online. This AGM is being held as a hybrid meeting. The virtual component is being held via the Computershare online meeting platform. This allows shareholders, proxy holders and guests to attend the meeting virtually. All attendees can listen to an audio webcast of the meeting. In addition, shareholders and proxy holders have the ability to ask questions and submit votes. [Operator Instructions] Please note that the questions will be addressed at the relevant time in the meeting and may be moderated or if we receive multiple questions on one topic, amalgamated together. Due to time constraints, we may run out of time to answer all of your questions. If this happens, we will answer them in due course via e-mail or by posting responses on our website. For shareholders and proxy holders present in person, you will also have opportunity to ask questions on the matters being considered today. All questions should be addressed to me as Chair. I will deal with the question personally or ask someone who is better placed to respond. We will do our best to respond to all relevant questions raised. Voting on all resolutions today will be conducted by poll. To allow shareholders time to log in, I now declare the poll open. Online voting will remain open until I declare it closed at the end of the formal business. Your votes must be submitted prior to the polls being closed for them to be included in the results. Our meeting will start with the Chair's address, followed by a presentation of our Managing Director and CEO, Brendan Malone. We will then move to the formal business to be considered for decision and at the end of the formal business, but prior to closing the polls, we will take questions. Moving to my address. On behalf of the Board, I'm very pleased to report that Raiz has made significant progress on key strategic priorities over the past year. We are excited about driving stronger performance outcomes and continuing to execute on our strategy as we move into 2025. In line with our vision to be Australia's leading direct retail wealth platform, the Board and management team remains focused on building a sustainable, more profitable business. By refocusing on our core Australian operations, Raiz achieved revenue growth delivered 4 consecutive quarters of positive operating cash flow and achieved a stable cost base whilst undertaking the move out of Southeast Asia. For FY '25, a primary focus of the Board will be to oversee the successful delivery of the key pillars of our strategy, both being building brand awareness and strengthening our reputation, growing the customer base and delivering a leading customer experience, developing new products and services that our customers value, building and enhancing the capability of our team to deliver results and managing the efficient use of capital while preparing for future opportunities. Raiz team adopts a continuous improvement approach to ensuring that the customer experience meets and exceeds expectations. In line with our commitment to ongoing innovation, we will continue to develop [indiscernible] that meet their needs across their lifetime and to enhance the look and feel and functionality of the Raiz App. On the marketing front, we implemented our new marketing strategy, focused on building brand awareness and improving customer acquisition, conversion and retention rates. The team has also worked hard to develop and implement AI-driven data analytics to support customer engagement and retention. In addition, we've established various partnerships targeting specific customer cohorts and working alongside our marketing campaigns. The combined impact of these activities saw an uplift in customer numbers for FY '24. As these marketing initiatives are further refined we are seeing customer numbers begin to accelerate, with customer numbers growing by over 8,500 so far in FY '25. The Seven West Media campaign comes to end in January 2025. With AI capabilities and digital marketing now driving much stronger growth as well as improving our customer conversion and retention rates, we're confident that Raiz is well positioned to meet our customer growth targets. In addition, a white label solution for the wealth management industry is at pilot stage and will promoted in 2025. I Simultaneously, we continue to identify and evaluate opportunities for strategic acquisitions that will deliver value to all shareholders. During the year, the Board has worked very closely together with the management team to reposition the business model. I thank my fellow directors for their ongoing efforts and strong contribution in supporting this work. We also acknowledge the contribution of Director Robert Hines, who joined Raiz as a casual appointee this time last year and has chosen not to stand for reelection today -- sorry, election today. Thank you, Robert, for your contributions. Your CEO and Managing Director, Brendan Malone, has worked incredibly hard leading the team to deliver on our strategy. We are proud of what was achieved in the financial year '24. The core fundamentals of the business provide us strong platforms to build on the positive results into 2025 and beyond. The Board and management team remain acutely aware of the expectations of our shareholders. Please rest assured that we're working hard to restore the value that we know Raiz and our shareholders deserve. We acknowledge the ongoing support of our shareholders and our people who work hard to deliver great outcomes for our customers. Thank you for your ongoing loyalty to Raiz. I now invite CEO and Managing Director, Brendan Malone to address the meeting.

Thank you, Kelly. Good morning, all, and welcome. This is my third AGM addressed to our shareholders as Managing Director and CEO of Raiz. At this time of year, it is rewarding to reflect on what we have achieved. Last financial year was particularly significant for the company. We hit major operational milestones, including improved profitability, we streamlined our operations with a focus on our core Australian business, and we see positive momentum across all key metrics. Last year, I outlined our 3 short-term goals focus on efficient capital deployment and restructure operations, execute on our growth strategy and also prioritize product development. I'm pleased to report that we delivered on all these 3 goals in FY '24. Before I get into the key milestones achieved, I want to zoom out a little and remind shareholders of the bigger picture, our vision and values. Raiz has always been customer-centric. Our purpose revolves around making it easier for our customers to save and invest. We listen to our customers. We prioritize customer service and earn great customer satisfaction results. We are continually innovating to give our customers what they want and need. Over the past year, we achieved high customer retention rates, driven in part by our focus on innovation and the launch of new products. A key highlight was the strong uptake of these new products by our existing customer base. However, new customer acquisition was below our expectations. The partnership with Seven West Media did not deliver the numbers we were expecting. That said, with the broader implementation of our marketing strategy in the second half of FY '24, which was focused on customized digital strategies, you can see we have early evidence that our strategy is now tracking closer to our customer growth expectations. Some key achievements in FY '24 include the Australian revenue up to $21 million, up 9% year-on-year. We delivered a positive EBITDA of $1.3 million from the Australian operations, and our Plus product through innovation into retail won the 2024 Finder Investment Innovation Award. The portfolios are doing well with SuperRatings having our #1 and #2 rate of funds for performance. We also have a strong balance sheet following the recent placement at a premium with over $12.3 million in cash at the end of the September 2020 quarter. Drilling down into the key metrics. You can see from the graph that all metrics are heading in the right direction, including customer numbers, FUM, revenue, gross margin and capital expenditure. Year-on-year and now quarter-on-quarter, day by day, we are deepening our relationship with our customers. Within each product portfolio or new feature, we have continued to increase customer engagement, we have increased cross promotion within the Raiz ecosystem and increased ARPU. Our product development is based on customer feedback and listening to what they want, and we can clearly see that this leads to a strong uptake of these new products. Raiz aims to build a long-term relationship with retail investors throughout their wealth creation journey, a value proposition to attract and retain customers continues to strengthen and the market opportunity for growth remains significantly huge. Raiz currently has over 315,000 active customers with a significant opportunity to increase the share of wallet. We also recognize a large pool of potential new customers is many times larger. Growing FUM is a strong indicator of positive customer sentiment. FUM has increased over 31.8% in FY '24, which is significantly greater than the market movement, demonstrating continued net inflows into the Raiz platform. It is pleasing to see the FUM growth across all products, we know that our customers saving have is improved over time and the longer customers remain on our platform, the more likely they are to increase both the frequency and the dollar amount of savings. The other benefit of increasing FUM is that it enables supply-side cost efficiencies in terms of lower input fees, and we also become a more attractive partner for new product development and partnerships. There are many potential partners and stakeholders out there who are interested in our retail consumer base of over 315,000 active customers and our $1.5 billion of funds under management, and we'll work together to leverage these assets. Our long-term vision is to help Australians to create wealth with a focus on sustainable earnings growth. Our 4 strategic pillars, as Kelly mentioned, revolve around brand and reputation, exceptional products, customer experience and building a sustainable operation. Over the past year, we continued to develop team capabilities, our systems and our know-how, all strong contributors to our positive momentum we have today. For FY '25 and beyond, we know existing opportunity, and we are focused on many initiatives to execute on our growth strategy, including building our brand and reputation. This is through new channels, targeted AI-driven engagement over various product touch points, which, and also the enhancement of financial education. Our exceptional products pillar with innovation like our white label solution, Raiz jars, super enhancements, also payment rails and our app design updates Kelly mentioned. The customer experience pillar. We just continue to maintain exceptional customer service and deepen our relationships. And the fourth, maintaining a sustainable organization. We have a strong team and a strong culture with resilient and secure systems, our low-cost model is scalable and well positioned for the years ahead, and we'll continue to manage our cost and capital as we have done over several years. New customer acquisition is critical for Raiz. We need to acknowledge that the economic environment for new customer acquisition was very challenging in FY '24, primarily due to the cost of living pressures and those extra dollars were spent on the mortgage or even at the supermarket. Our increased focus on reengagement and retention worked very well in this environment. We continue our highly successful digital marketing. This slide shows that we have refined our messaging and content for different audiences. We engage with partners right across the media landscape, including mainstream channels, commercial radio and big digital channels like YouTube, Meta and Instagram as well as niche influencers in fintech and podcasts. We have formed valuable working relationships with the Women's Agenda, Women's Network Australia, New South Wales Touch football and the Ladies Finance Club to name a few, and we have also performed strategic partnerships with the Australian Shareholders' Association, the Aussie Athlete Fund and the Future Generation fund. In FY '25, we remain absolutely focused on new customer acquisition, and we are very pleased to report in Q1 that there was an acceleration in the growth rate of new customers, reinforcing our confidence in our strategy. We welcome State Street Global Advisors to our register as a strategic shareholder. We are particularly pleased that they were able to complete the placement in August at a premium of 11.4%. State Street Global Advisors undertook extensive due diligence on our operations, including a detailed scoping of the market opportunity for a co-branded series of products. State Street is the fourth largest asset manager in the world, and we believe that their decision to invest in Raiz as part of their Australian growth strategy provides clear evidence that we are on the right path. We are at the early stages of this relationship, and there are multiple opportunities for collaboration, which include marketing, content, products, insights and collaboration. We look forward to updating the market over the coming months ahead as new initiatives are developed and launched. Raiz has a strong balance sheet and is well positioned for an industry consolidation. As you can see from the table on the slide, Raiz has a comprehensive product offering for retail clients and a unique subscription business model rather than a traditional brokerage transaction model, which is more common with retail brokers. We have a scalable technology platform with a low margin cost of trading. There are many retailers out there with a share portfolio of between $10,000 and $50,000 who trade less than once a week, who would be better served on our past portfolio, not only from a user experience point of view, but also from a low cost point of view. We'll continue to drive this message ahead. In summary, in FY '24, we made significant progress into a difficult environment for cash-constrained retail investors, and we are now in a strong position to continue to deliver on growth and innovation in FY '25 and beyond. We have a compelling investment thesis with our scalable model. We currently have solid traction. We have a customer-first model. We're opening up new markets with the launch of our white-label solutions. We're going to expand our resources with the strategic partnerships that we have in place, including States Street Global Advisors. And as mentioned, we are well funded. We'll continue to execute on our strategic initiatives to deliver shareholder value and an innovative secure product offering for our customers. I'm excited to move forward with our white label solution, which is generating strong interest across the wealth advisory and financial planning world. I would like to sincerely thank shareholders for your continued support. Thank you to the non-executive directors for their continued support. To our loyal customers, thank you. To our awesome and professional team, you have all supported me in many ways over these transition years, and we all see a significantly bright future ahead for Raiz. We continue to look after each other, our customers and drive for growth and improvement personally and in the business every second of every day. Thank you. Thank you once again for the opportunity to address you. I'll now hand back to our Chair Kelly for the formal items of business, and I look forward to shareholder questions later.

Thanks, Brendan. We now move to the formal business of the meeting. Notice of Annual General Meeting is provided to all registered shareholders. As previously advised, voting on all resolutions will be conducted by poll. For the purposes of the poll, I appoint Barry as party of Computershare, the company's share registry, who has examined and prepared summaries of the proxy forms received to act as returning officer and to conduct the poll. Please note that online voting will remain open until the poll is declared closed. Your votes must be submitted prior to the poll being closed for them to count. Both attending in person who are entitled to vote on the poll are all shareholders, representatives and attorneys of shareholders and proxy holders who hold green voting cards. If you're attending in more than one of those capacities, you may [use] with as many voting cards as you have separate capacities. If anyone believes they are entitled to vote on this poll in any capacity and does not have a green voting card, please raise your hand and a member of the share registry team will assist you. Those shareholders attending in person, at the appropriate time, I will ask that you mark your vote for the resolution on the green voting cards provided. If you're a shareholder and wish to cast all of your votes for resolution, please pass -- please place a mark in either the for, against or abstained box next to that resolution. If you wish to split your vote, please write the number or the portion of votes you wish to cast in the corresponding for, against or abstain boxes. Please note that the sum of the split votes must not exceed your total holdings. If your summary of votes does not have any discretionary votes, you do not need to mark your voting card, and will simply need to hand it to the retaining officer at the end of business of today's meeting. For those in attendance, after all resolutions have been considered and voted upon, please place voting cards in one of the ballot boxes that will be circulating the room. Are there any questions in relation to the voting process?

There's no online questions, chair, motion of the voting process.

Thank you, Brendan. Proxies have been inspected, and all those validly ballots have been accepted. Proxies have been received representing 54,435,746 shares or 52% of the issued capital of the company. For undirected proxy open votes that have been -- that have nominated the Chair of the meeting as their proxy will be cast in favor of each resolution being considered today, noting that resolution 6 has been [indiscernible]. First item of business is to receive and consider the company's annual financial report for the year ended 30th of June 2024. The financial report and the reports of the directors and the auditors or part of the annual financial report. This item is for discussion, and there will be a vote on this item. The company's auditor for the 2024 financial year. Jeshan Velupillai and Tim Aman of BDO Auditors are both present to take questions relevant to the conduct of the audit and the preparation and content of the independent auditor's report. Are there any questions or comments on the financial report or the reports of the directors and auditors?

No questions online in relation to this matter, Chair.

Thank you. Are there any questions relevant to the conduct of the audit and the preparation and content of the auditor's report to be put to the auditor from the room? Thank you. We will now proceed to the resolutions set out in the notice of the Annual General Meeting. Resolution 1 is to consider the adoption of the remuneration report as an ordinary resolution. The resolution and proxies received in relation to this resolution are shown on the screen now. Both physicallyand attendance, please mark your voting instruction on your voting card. Online shareholders can vote on this resolution via the online voting portal. Once you submit your vote, you should see a green tick confirming that the vote has been received. As the next resolution relates to my reelection, I will shortly hand the chair over to John Brett. I would firstly like to make a short address to the meeting. Noting that it's been a privilege to serve on the Board of Raiz since my appointment in 2020. My executive career in financial services encompass retail banking, general insurance, superannuation and lending, where I gained extensive experience in developing and executing successful strategies. I've been a full-time non-executive director since 2016. And in addition to my role with Raiz, I currently serve on the boards of ASX-Listed National Stock Exchange of Australia and Toys "R" Us as well as [Latrobe] Health Services, a private health insurance fund. Each of these boards have led or are leading significant transformation strategies. My executive and Board experience has proven crucial as we've navigated the challenges facing Raiz. In particular, since I was appointed Chair last year, our focused on supporting Brendan and the team in the development and execution of a clearly articulated strategic plan to advance our performance. Despite the significant challenges Raiz has faced, my commitment goes well beyond managing these challenges. I'm passionate about identifying and leveraging opportunities for growth, both organic and inorganic. With your support, I look forward to continuing this work, helping Raiz to lead the way in wealth management for all Australians. I believe that together, we can build a future that aligns with our vision and meet your expectations. Thank you. Over to you, Jon.

Thank you, Kelly. Resolution 2 is the reelection of Kelly Humphreys as Director. The resolution and proxies received in relation to this resolution to be on the screen -- are on the screen. I'd like to say a few words about Kelly if I may. She's an outstanding chair who works tirelessly for Raiz. She has shown incredible dedication and leadership always seeking ways to strengthen and improve the business. I've had the privilege of spending many hours with Kelly discussing the company's strategy, opportunities and challenges. Her availability and commitment are truly admirable and Raiz benefits greatly from her stewardship. Those physically in attendance, please mark your voting instructions on your voting com. Online shareholders can vote on this resolution via the online voting portal. Once you submit your vote, you should see a green tick confirming that the vote has been received. I'll now hand the chair back to Kelly.

Thank you, John. I move to resolution 3, which is to consider the election of Jonathan Brett. Jon, would you like to address the meeting first?

Yes, please. Thank you, Kelly. It's an honor to be nominated to the Raiz Board and have the opportunity to contribute to the future of this innovative company. I joined the Board on 28 November last year, and I currently serve as Chair of the Rem Committee and is a member of the Audit and Risk Committee. With over 12 years at invest [Audio Gap] I'd like to share my impression of Raiz and the voting for our appointments. Shareholder engagement. Since joining the Board, I've had the privilege of engaging with many of you, listening to your perspective and understanding your aspirations for Raiz. The feedback has been invaluable, and Kelly and I have carefully reviewed it. If possible, we have implemented changes without compromising the health of the business. We remain committed to ongoing dialogue and alignment to shareholder expectations. I understand the concerns reflected in the votes cast against Kelly and myself. Whilst the feedback is disappointing, it's also an opportunity to strengthen our engagement with shareholders. Kelly and I are committed to reaching out to those of you we had not yet connected with to better understand your concerns and meaningful ways to address them. Evolving Raiz for success. Building a strong management team has been challenging, requiring a careful balance between investor feedback and the specific needs of the business. Despite these challenges, I believe Raiz is a strong company with an excellent suite of products. Like all successful businesses, it must evolve to meet the demands of its environment. We are working diligently to refine our offerings, develop talent and establish a clear succession part for key leadership roles. These efforts are vital for driving Raiz's success in the years ahead. Remuneration and accountability. We also acknowledge shareholder concerns regarding recent performance and remuneration structures. These frustrations are shared, and we're taking decisive steps to address them. A revised short-term incentive program developed with Mercer's benchmarking [indiscernible] payouts to critical funding metrics, including cash profit generation, revenue per customer, funds under management and active customer growth. Importantly, STI payouts will only be made after achieving cash profit, ensuring strong accountability. The long-term incentive program is designed to drive total shareholder returns and earnings per share growth, aligning management incentives directly with the long-term interest of our shareholders. These revised programs aim to provide the right balance of motivation for the management team, while ensuring alignment with shareholder value creation. Closing. Raiz is uniquely positioned to make a meaningful impact in the way people grow their wealth for their future and that of their children and grandchildren. Together with my fellow Board members, management and all of you, I'm committed to helping Raiz achieve its goals and meet the aspiration of our stakeholders. Thank you for your trust and confidence. Back to you, Kelly.

Thank you, John. resolution and proxies received in relation to this resolution are now shown on the screen. Those specifically in attendance, please mark your voting instruction on your voting card. Online shareholders can vote on this resolution via the online voting portal. Once you submit your vote, you should see a green tick confirming that the vote has been received. Resolution 4 is to consider the ratification of prior issue of ordinary shares as an ordinary resolution. The resolution and proxies received in relation to this resolution are on the screen. Those physically in attendance, please mark your voting instructions on your voting card. Online shareholders can vote on this resolution via the online voting portal. Once you submit your vote, you should see a green tick confirming that the vote has been received. [Voting]

Move to resolution 5 to consider the approval of The CEO and Managing Director's FY 2025 long-term incentive grant of performance rights as an ordinary resolution. The resolution and proxies received in relation to this resolution are on the screens. Those specifically in attendance, please mark your voting instruction on his voting card. Online shareholders can vote on this resolution via the online voting portal. Once you submit your vote, you should see a green tick confirming that the vote has been received. [Voting]

Note again that resolution 6 has been withdrawn. So that concludes the resolutions that are to be voted on today. As noted, we are conducting a poll on all resolutions, and I confirm that the poll is already open. We will now move to addressing shareholder questions. Brad, do we have any [indiscernible].

Yes, we received a number of questions come through online. The first question, shareholder [indiscernible], could you provide further details or clarification on the Raiz jars and upgrades to payment rails referred to on Page 14 of [indiscernible].

Thank you for that question. I think we'll pass to Brendan for those 2 product initiatives.

Absolutely. Absolutely. So Raiz jars is a new product that we're launching in the new year. And what that's going to do is have subaccounts, a bit like the Raiz kids accounts because what we've noticed is people will set a savings goal, they will hit that savings goal and they may reach it. So they may go on a holiday, save up for holiday and they may take that $1,000 out. But what we're doing with our Raiz jars is having sub-accounts, so people can set them up as a rent account, a holiday account, a travel account, et cetera. So we'll increase the retention of our customers. So that's on the Raiz jars. It's been requested by customers. On the payment rails, we're currently on the OpEx system, direct credit. So we'll be moving to the NBP side of things to make more a quicker exercise and experience for our customers on both depositing money but also getting the money back to customers. The NBP is [indiscernible]. Yes.

Okay. Next question is in relation to remuneration matter. Given the remuneration report slated down last year and the company traded at a loss in FY '24, why did the Board see fit to increase total remuneration for the 2 senior staff from FY '23 to FY '24.

Okay. I think we might jointly answer that question, Jon. For us as a company, we want to make sure that we are rewarding people appropriately for the work that they do. And whilst that might not always be reflected in the results, particularly when you're managing a transformation of significance that as Raiz has been mentioning, those numbers may look a little mismatch. But for us, but the changes to both of those remuneration packages for our senior executives were more than fair in light of the effort and the loyalty and commitment that each of those individuals have shown and continues to show to Raiz. And is there anything that you would like to add [indiscernible] coming in as normal rem share?

[indiscernible]. Thank you.

Next question, Chair, is a remuneration question as well. Could the CEO summarize his past LTI grants as to whether they are vested or lapsed? And then the second part of the question has he ever sold any ordinary shares in the company or bought on market without relying on incentive schemes for your holding company?

So on the first question, it's in the annual report -- just the first question where they vest or lapses, we -- it's up to date. The annual report is pretty up to date about all of the incentives that have been granted that have lapped or that are still there. As far as Brendan selling any of these shares online, I don't remember any in my time, Brendan. Can I ask that?

Absolutely not. So Brendan has not sold any shares.

I think, too, Jon, just to jump. I also exercised my options early 1 year earlier. 30 months earlier and for $400,000 in February, March this year.

which is an annual report, yes.

The next question from Mr. Stephen Mayne. When disclosing the outcome of voting on all resolutions today, including the placement ratification proposal, could we please advise or consider advising the ASX how many shareholders voted for and against each item similar to what happens with disclosure in the scheme of arrangement, the number of shareholders?

It's not something we've done in the past, but we are happy to consider that. Just wanted to clarify, [indiscernible] the results will be announced after the Corporations Act, Thank you.

I have a couple of general questions. While Raiz has claimed positive operating cash flow for FY 2024, there was over $3.2 million in capitalized IP. When does Raiz expect to be cash flow positive basis? And there's a second question if you like to take that one first.

Brendan, would you want to respond to that?

That's a very good question. We are operationally cash flow positive, and I acknowledge the capital expenditure that we've had over the years. As you can see from 30 June '23 to '24 in the presentation, we have reduced those capital expenditures from $3.6 million down to $3.2 million. And we're continuing this current year to track that down to sort of $2.5 million, $2.7 million. And from a breakeven point of view as our modeling suggests and what we're working towards is that we should be breakeven at circa 330,000 active customers.

The second question is in two parts. The first part, can you provide some more detail regarding the proposed white label solution for the wealth management industry? And the second part, won't such solutions assist Raiz' competitors and cannibalize its own efforts to attract customers?

Look, that's a very good question as well. From a product point of view, the white label solution, we have both a full white label solution in the works, but also a semi white label solution and what will go live in the next couple of weeks is the semi sort of as a pilot, but it's all about giving access to financial planners in the wealth industry to the use of our technology. That's what this is driving. And not only Raiz will get revenue as in a per user revenue exactly like we have now, but also some more platform fees, et cetera. But it won't cannibalize what it will do is to bring customers onto our platform to allow them to trade in a better low-cost environment and much easier financial so a financial planner can create their approved product list or an APL and have those existing sort of ASX-listed equities, ETPs, and they can create their own portfolios from there.

The final question shares a general question from Mr. Stephen Mayne. The 5 most valuable U.S. big tech stocks, Microsoft, Apple, Amazon, Alphabet and NVDIA are together worth more than $20 trillion, largely because they have enormous pricing power and are overcharging customers the world over. Could the CEO comment on which of the big global technology companies are most reliant on? And what would we do if they suddenly put their price is up by 30%?

Okay, that's a good question. I think that for purchasing power point of view from a Raiz product and what we charge our customers. I think I'm very happy on the way that we delivered the price increase in August last year, and we didn't lose any customers. But if, obviously, with inflation, the costs going up, our biggest single provider at the moment with AWS, put up there for us.

Chair, there are no of questions. [indiscernible] make your question?

Yes, absolutely.

There's obviously a substantial group of shareholders who have been happy with in the last 12 months, effective of the share price, but it hasn't moved in the last 12 months. It's obviously part of the market that doesn't believe this growth strategy is correct and has worked or has not worked, and that's just reflective of the market it's exactly where it was 5 months ago, and it's 1/4 of what it was on listing. I'll give you one example of a product that is the exact example of that. The kids account, which I noticed has 48,000 accounts on it. It's free. It's not free. Accounts cost about $50 to operate. The account, that particular account is losing in excess of $2 million a year to the organization. That just seems ridiculous and not only per year for a child that joins at year 1, that could be 17 years of free loss-making venture. I don't know we need an organization that has accounts that people that the company can lose on for 17 years. So there has been a process, though there's a group of shareholders that are not happy. We see things like the child account is that, all of the presentation we see is all about growth, revenue growth, customer growth. But one mention of NPAT, not one mention of any of that. As a group of shareholders voted as they did, we made a statement probably leave it as that, but there's a huge amount of dissatisfaction with the way this company is being run.

So I might start in particular, on the kids situation, for the a few questions in there, [indiscernible]. So thank you for those. I think that if we look at Raiz and the comment that the strategy might not be working, I think that we also need to reflect and recognize that market conditions have been pretty challenging for microcaps, and recent transactions actually would indicate there's a potential mispricing of Raiz shares. We believe that our ongoing and relentless focus on Board, improving the [indiscernible] metrics of customer acquisition and ARPU with all of the cross promotion, the marketing strategies that we are now seeing emerging with much stronger results, as I said in my address, we've built that up over financial year '24, financial year '24 results were nowhere near what we expected or wanted. But what we're seeing emerge in the early stages of FY '24 is particularly pleasing. And we think that we can continue with the strategy that we now have in place to drive and accelerate that. So we do believe that the strategy is working. We've engaged with many of our shareholders, not all of them, but Jon and I have committed to follow up with every other shareholder that hasn't necessarily supported where we're at based on the voting and we will engage with them and make sure that everybody's concerns are addressed. But we are very confident in this strategy, and we're staying the course with our strategy. One thing I will say with that is that the team is very focused at the moment, which is something we've never done in the past on adapting, refining and enhancing our marketing strategy based on what the results are as each cohort. So once upon a time, we had a very simple product suite, we had a very simple message that went out to everybody regardless of whether they were may or female, 50 years old or 25 years old or wherever they were in the country. It was all one message to everybody. We're now tailoring messages and tapping into the sorts of things that drive those customers to our app and the sorts of things that mean that those customers once they come on the app, we can not only retain them, but we have a much broader range of products to offer them. So a massive opportunity for us is in superannuation, which you would have seen on Brendan's slide. There's been huge potential there for us to grow that. And when we look at the transactions that have been on the market recently with New South Wales and Span ship, clearly, the market will use that stronger retention product like Super, and our focus from there, I think, will be another factor that will help us to drive that underlying value. And we look forward to that. It's, again, we're at the very early stages of the kids -- Raiz kids program. And, along with the feeds for Raiz kids, the Board has got a live strategic discussion happening around what we do to drive revenues, not just with fee incentive, obviously, an enormous part of that, but what are the elements can we leverage and work to generate additional revenue streams for Raiz. So that's sort of #1 at the top of our strategic discussions at the moment.

That responds to part of your questions.

I'll ask Brendan to talk about the Raiz kids program.

Yes. Look, we, look, I acknowledge David's question, and it is. We built the product for Raiz kids in a way, including writing it in our PDS that we can turn fees on. It was more, let's get it up and running at a substantial customer base because it will create shares. The products that we have in place today are for engagement and reengagement for the lifetime value of the customers as they go through their journey. So we will be looking at it. As Kelly said, the management, the board, actively, and I mean very actively looking at the fees, how we can get higher revenues faster out of our customer base that is loyal and get deeper in those relationships, it's absolutely on the table.

Thank you for questions, David. Would all shareholders voting online, please now ensure that they have submitted their votes. I'll allow another minute before the poll is closed. If you have any questions in relation to the submission of online votes, please send them through the online Q&A functions. Those shareholders attending physically, I now invite Barry and [indiscernible] party to collect your voting cards. [Voting]

So Brad, are there are anymore questions on the Q&A.?

That's correct, Chair.

Thank you. I now declare the poll closed. Results of the fall will be announced to the ASX since they're available. That ends the formal part of the meeting, which I now declare closed. Thank you, everybody.

Thank you.

Thank you.