Spacetalk Limited (SPA) Earnings Call Transcript & Summary

Thank you, everybody, for joining us. We had today to give you the H1 update from Spacetalk. But a couple of people on the call, today. Obviously, myself, I'm the Outgoing Acting CEO now sitting back on to the board. But we got Georg Chmiel, Brandon; from our Board; and Simon Crowther, our new CEO and MD. And obviously, we've got Geoff, as well, the Head of Finance. What we're going to do today is probably maybe a pretty short presentation, 15, 20 minutes or so. Feel free to ask questions as you go. You can either input them in the chat during the session or if you want, we'll have plenty of time for questions, you can save them for the end or whatever you prefer. So why don't we get better the slide, the next slide, please. Okay, our standard disclaimers. Next slide. So look at up with the financial highlights. So just a couple of things to point out here is, as we've said before, revenue is down. I'll talk to why that occurred and why that's probably quite a good thing. We've taken the opportunity as well to have a look at some of the assets that we have on our book. And we do actually to impair some of our historical assets and issuing some of the development formative cycle and what we've amortized there to write that up -- on to the next slide. You can see kind of half and half, look, we are down about 26%. The main reason there is that we stopped our unprofitable Kids watch. Now that's going to be a market as previously said, they're going to reenter into towards the end of Q4, and we're going to really, really excited with our product offering in that kind of base. We've also had really strong revenue contribution with JumpySIM. So just to recap JumpySIM is one that we have to really drive up our average revenue per user. So now you're going to find almost every box that we send out has a SIM card in it. People can activate it right away, so it reduces some of the friction for them on boarding and then it really increases the revenue for us. With an average customer staying for about 4 years, there's a good extra margin for us all. Next slide, please. So some of the most critical things that I looked at when I looked at during my time as CEO is the ARR. So the ARR is up 29% across the group. PCP for the wearables side, that's been up 43%. And -- at ARR, that's the real kind of metric to have a look out. That's what is getting off the shop and into people and the people activating those watches and staying with us. Look, it's been a fantastic growth there. A lot of it was that prescriptions and a lot of was actually JumpySIM contributing as well. The other advantage which have been contributions as we go to the next slide, is that it really helps with the cash flow side because often users will prepay for a unit back about half the users do. But all in all, we ended our December 31 with $4.2 million pack in the bank. It was a major turnaround of $3.3 million earn as we went from a minus 2.9% in the first half to a positive $400,000 in the second half. The other really thing to make sure we touched on this in our accounts is that we've had significant improvement in operating cash flow for H1. So it was minus 3,000 versus minus 3.6% for the PCP. One of these that I really focus on sure same focus on to period is the continual focus on cash management, just to make sure that we've got plenty of cash in the bank and we're using our working capital very effectively. So one of the changes that we've made there is sort of be like a large orders once every 6 months for our hardware, we've got to really try to reduce the brain and try to get to more kind of monthly or by a monthly audit of a smaller amount that we can get back to our various retailers. [indiscernible] was the $2 million cost reduction. So that's all done by a completed our impression and our savings from that program is coming into Q3. Just a couple of things to point out as well that $4.2 million cash doesn't equally be tested with the capital injections that we've had. And I'll talk through some of them as we think right now, the savings and the cash balance is even more healthy. And probably the greatest thing now is we've got a space that could make us quite sustainable. So really, we're now looking forward to the time of kind of pushing the growth on the business as well. Go to the next slide, let me just talk through the capital raise. For that $4.2 million, we included $1.15 million. So that was a non-renounceable entitlement that was just pre-Christmas. After about the added $1.23 million was from directors, which was committed back in November 1. So the total rate of pre-cost $2.4 million. Since that is that time as well, and Pure that headline warrants upon the original debt deal because those warrants, that gave us another cash injection of $396,000. It's been great from a capital perspective. We've got about $2.8 million extra in the back. Then the next part is on the Pure debt restructure. So we followed that pre-Christmas. What that result was the reduction of the interest rate, almost half than it was before. Reduced the maturity of second tranche and we push that out to July 24, just to give the organization a bit more kind of breathing time between now and the debt repayment. I want to make to that we made it sure that we're very, very supportive as we renegotiated the covenants to be a lot more in line with the organizational performance. And as part of this restructure, we gave Pure 90 million warrants that we proved in the EGM on 15th of Feb. By the margin, what those warrants do we want to do if Pure, that actually generates enough cash to pay back the debt, and they will price it at $0.06 and that was back when the share price was 2.7 in -- so that was it for me on the historical side. But what I might do now, I might hand it over to Simon and he will talk about the future and to talk about what he had planned for us.

Thanks, Saurabh. Thank you, and good morning, everyone. My name is Simon Crowther, and I'm the newly appointed CEO and MD of Spacetalk. Before I provide you some background about myself and initial priorities, I'd like to thank the Spacetalk for the opportunity to lead the business and for their hard work, making some difficult but necessary calls over the last couple of months. Also my thanks to Saurabh for stabilizing operations and support and assistance he's provided during my onboarding over these last few weeks. The deciding factor when taking the role was the determination of the Board to tackle the short-term issues while setting the business on a better path. We have a great and highly experienced team on the board. I'm looking forward to collaborating effectively with them going forward. As Saurabh said, my job now is to fully realize the potential of the Spacetalk business. But before I get on with that job today, let me first tell you a little bit about my background. I'm originally from the U.K., but a proud Australian, and I'm genuinely thrilled to have the opportunity to help build another successful Australian technology business. I've got some prior experience leading an ASX-listed tech company, as you see, I've been with Nearmap for 5.5 years, taking over from the founder in 2010 and building that business from very humble origins and a tiny office in West Curve and establishing the core strategic focus and subscription model underpin the growth of that company. That experience informs my decision-making and approach now on Spacetalk. It's all about high-performing people, discipline, focus, execution, and results are key. These are going to be a reoccurring team you're going to hear from me. I'll come on to discuss some of these themes in a few minutes. I joined Spacetalk as I believe that generally unrealized potential, and I'm very excited about the opportunity to grow the business and deliver a great outcome for shareholders. I mentioned high-performing people. Craig Boshier also joined Spacetalk as COO. This reflects my commitment to building a highly capable executive team with domain experts because they also adapt to the changing needs of the small business. Craig is a former partner of Boston Consulting Group Digital Ventures, former venture capitalist at Yamaha Ventures, and COO with me previously at AirMap in California. Craig is working with me on strategic vision and plans for Spacetalk, which are mainly to socialize in the coming month or 2 as we lay out a clear pathway to growth. In addition, Craig will focus on all aspects of our operations, driving efficiencies throughout the business. For example, we recently kicked off an internal work stream for doing the basics well, which, in my experience, is easy to say but very hard to implement. And this work stream focuses primarily on the setup of the operations in the business and optimizes all our processes and systems to support not only day-to-day operations but also future scaling. Yesterday, I announced that [ Chris Neary ] joined us as Chief Marketing and Digital Officer. This is a really key hire as we establish marketing as a profit center inside the company and drive our digital revenue and engagement, which is to maintain expert and it's as optimizing how we show up and when. You will start to see the results of this over the coming months, not only in terms of our enhanced design and communications, but also in how we communicate the performance of our digital products for the market and future updates. I'm also currently focused on hiring experienced CFO, which are you'll be pleased to hear with staff and public company experience, which again supports our objective for upgraded performance internally in terms of access to business intelligence to support our operations and commercial efforts, but also to partner with me in terms of how we communicate with our shareholders going forward. I take this aspect really seriously, and my commitment is to provide you with updates that give you a good understanding of our progress, our priorities and our decision-making. This all flows from good strategy and tight operational control, which is currently enhanced. However, we will need some time to be able to make progress and give you those updates. I mentioned strategy a few times. As you can appreciate, my first couple of months in the role, is focused on delivering a growth plan for the company. I'm not yet in a position to discuss the specifics with you today, I would like to give you some initial comments about my thinking and priorities going forward. Next slide, please. Generally, it's an emphasis on focused goals and execution. This will permeate through the entire business as our strategy anchor priorities that allow us to set monthly quarterly goal for the team. For a business that does not spend much money comparatively speaking on branding, it's pleasing to see that we occupy a trusted position with our customer prospect. This is definitely something we'll build on the leverage going forward. You will start to see the harmonization of our different brands as we move to a uniform approach as Spacetalk, optimize our digital presence, and simplify our marketing engagement. Whilst we have increased emphasis on our digital channels, I mentioned a few moments ago with hiring digital expertise of [ Chris Neary ], and this reflects our desire to enhance and grow our digital products and more importantly, our reoccurring revenue. We want to own the customer relationship and activate customer success and inside sales opportunities within our subscription base. This is an exciting opportunity area for us, and I look forward to update you more going forward. Next slide, please. Our stores business is a really intriguing opportunity area for growth. Not only are we focused on growing the number of schools to utilize our core service. As I mentioned earlier, we're also a trusted partner for many parents and families. We provide peace of mind of security of the parents with kids on a school on a daily basis. We've got a really good opportunity to build on this and how we can effectively establish an ongoing relationship with kind of a whole family view going forward and continue to offer them valuable products and services. As Saurabh mentioned, there's an ongoing commitment to cost management. We need to balance the focus on our growth plan with managing our costs effectively. I'm a small business person by nature. I'm across literally every dollar being spent inside the business, and we'll be diligent on all our Spacetalk business while making important decisions but importantly, will be based on detailed use cases and in-depth market analysis. [indiscernible] In terms of growth focus, I believe it's important to demonstrate a path to profitability in our domestic market. While as [indiscernible] in nature, we'll focus on establishing a successful business in Australia and modeling regularly generating free cash, effectively monetizing the focus needed and reflecting, as I just mentioned, our whole of family product view, whereby we can partner with families at very flash stages for years to come. Next slide, please. So in summary, just some brief comments to over my tenure as CEO. I've mentioned, we've made some difficult but necessary decisions in the first half. And as a result, we achieved have a positive position in Q2. We haven't a started a new proper launch this year. We continue to build a strong management team with some key people already hired. Our ARR is increasing which is very pleasing. We will have a clear road, which I'll lay out for you next month or 2. Our costs are and will remain under control. And overall, I'd like to reiterate today how positive I feel about the opportunity to build a great business. And with that, I'll pass back to Saurabh and will now [indiscernible] up for questions. Thank you.

Great. Thanks, Simon. Now if you have questions, I can either raise your hand. Great. We're comfortable with the questions if it was working, is it?

We are. We have one question in chat at the moment, Saurabh.

Cool, perfect. Sorry, I about all the commentary. So what I'll about to do is to put up [ Eric. Eric ] can you unmute yourself?

Hello, guys. Can you hear me okay?

Yes, sure.

What's the latest update with the CFO role at the moment?

We started a search a couple of weeks ago. We were quite overwhelmed with a number of applications that we have by the basic hosting on LinkedIn. Contrary to commentary in the press. We had nearly 100 applications. We have now continuing to search. We started to refine the applications that we've had. And it's a priority type of business to be able to appoint somebody in the near future. My experience is though that we need to hire slowly for this role. I don't mean taking months when we need to take the appropriate time to make sure we get the right candidate with the right blend of experience and someone's going to be a genuine business parlor, not only for me, but can also drive the initiatives I kind of alluded to in my comments during the call as well. So I'm satisfied. We're on track, and I'm looking forward to be able to make that announcement in due for.

Thanks for the question, [ Eric ]. – now I'll just ask Michael to unmute, [ Michael Morris ].

Very good. I'm just wondering where the products manufactured well demographically.

Simon, do you want to take that one? Or should I take that one?

If you don't mind leading off that, that's a great thing.

Yes, totally. So we designed the products ourselves. So probably 3 parts of the product. So the design we do ourselves, so we do get some consult from [indiscernible] they're the firm that do a lot of Apple designs for them as well. The software we design ourselves, and we've drilled our bill. Most of that build happens in Adelaide and the physical hardware that gets made out of China. Now I might ask Tom. I'll just quickly find you on the list here. [ Tom Addison ] I'll just ask you to unmute.

I'm just wondering where you see the focus for the business? What you're seeing is it a gross company or by focusing on turning a profit, realizing, obviously, you can't have both the trade-off either way, but what do you see is the direction going forward?

Tom. A couple of thoughts on that. I think it's always a focus to try and get to a situation where we're developing a model that is cash generative. That would be a priority for me. And I think then that gives us options about how we decide to grow the business. I think it's important, though, in the first instance to put that model in place. I think what you'll hear from me, I don't want to preempt kind of get ahead of the strategy piece that we're doing at the moment, though I think what you're going to see is a focus on how we have more of this whole family view. So at the moment, I think a lot of our marketing, a lot of people perceive us as a primarily a kid or intake business, that's an extremely important market for us. But I believe the folks who was ratio be more about how do we become more family or intake and in particular, how do we activate good revenue and good growth in the seniors' market as well, which is I think has been underutilized to this point. So I think we're going to be able to demonstrate that we've got products and services that we can effectively build revenue from different life stages, and that's yet to be announced to the market, and that's currently what I'm working at the moment, and that's primarily the reason why I came on board. But I think now given the situation of the business, I'd like to be in a position where we all start to generate cash and then decide how we're going to fund future scaling aspirations as the result of that.

Now James Tracey, I might ask you to unmute now as well.

Thanks, Saurabh. Simon, I just got a question around the goals, the 6 points you put up there. The final one being growth focus, talking about renewing focus and executing a positive growth model within the ANZ market. I just wanted to ask why -- and specifically, it seems like Spacetalk is over indexing in Australia with the biggest customer being an Australian retailer, and you've also got distribution in O2 in the U.K. and just by the U.S. who are potentially much bigger markets. Yes. So just really interested as to why ANZ is the key focus as it seems like you're doing really well here already.

Well, I think we've done okay in our Australian market, but I think we have a bigger can. And I think we're going to break that down as part of the planning process, I think we haven't been as effective as we could have been in terms of monetizing different segments of the Australian market, and that's where really where our focus is going to be. I think having run a business that successfully scaled offshore. I think what you do first is you put the basic building blocks in place effectively in terms of systems, processes, people, practice, that allow us a good cost-effective execution. I think there's plenty of business in the Australian market. I think it also gives us the opportunity to bet down from those systems and processes and people. And then it gives us the opportunity to be able to grow our international business in a very thoughtful and simplest way. Building on digital channels, for example, as you have me mentioned several times on my comments is important, well, primarily because LRs is at a high level, retain more margin on our sales. It's very data driven to expand plan in terms of what works, what doesn't work, and what's a bit mediocre. And I think also it's easier to set offshore into other markets as well. So we're looking to ramp up those capabilities and that expertise inside the business. But I'm convinced that the data will show that we've still got lane business that we've been leaving on the table in our own domestic market.

Essentially building the right model here and then exporting it overseas rather than trying to go overseas without necessarily affecting here.

Well, we -- as you know, we are already overseas, and I think that's part of the strategic review. It's about given that the reset of business is going through and gone through, what we do next really matters and then how we're seeking that for growth over the coming next couple of years and show all our shareholders are clears to success. And I don't think you open up multiple fronts all in one go internationally. I think you do it in a sequenced way. So I'm talking about maybe simplifying things on one level, doing the basics well, which is what I've already talked about, and then growing the business now as we experience success. But my previous success and my previous experience indicates on the success I had with Nearmap for example, was that you get the business really humming in your domestic market, it gives you options in terms of the speed and scale in which you want to expand offshore. At the moment, I would say our focus is on the set of our Australian operation, making sure that's working well, making sure we have a clear strategy, making sure we're fully monetizing the segments and the niches that we want to focus on going forward. And as I said, generally, one of the reasons I came on board with Spacetalk, really, is a find the senior space appealing. Not only from a product perspective but also from doing the right thing perspective as well and in such a growth area in terms of need, particularly for people aging at home. I think we've got a great opportunity there, not only to build a good business, but also to do the right thing in our community as well. And that's something that we haven't actually executed identify well at all at this point, something that we're really focused on doing as well. It comes back to my earlier point about taking the whole of family view -- so not just about kids and there's plenty of business there for us, it's about how do we scale up and build deep and enduring relationships with family. And that's really going to be the focus of our strategy going forward.

Thank you, Simon.

Thank you. [ John ] [indiscernible] , I'll just unmute you. Do you want to ask your question.

Yes. Thank you, Saurabh, and welcome, Simon. I'm a recent shareholder. So I come on board in recent times, and I'm very excited about what is being planned. In terms of approach, I guess my question is, Saurabh has started an interesting journey very quickly getting the business back into cash positive position. I guess the question is, are we able to continue that realistically through '23? Or are you thinking that at some point, the Board may need to go back to the market for additional capital to execute your full plan.

Well, thanks, John, and thanks for coming on board. I appreciate the question as well. It's early days for me. I'm literally a few weeks in. And I think laying out that kind of strategic plan and strategic view for the business is really, really important that will inform a lot of our thinking around the growth plans for the company and also the likely capital needs for the business as well. So, it's too early really to give a definitive answer on that. What I would say is, as I commented earlier, my focus goal is to generate cash and to build a model that continues to generate cash. I don't want to do that simply through cutting costs. I want to do that because we've developed a suite of products and services that people really find compelling and appealing. And I think cutting cost gets to a point, and I think that's what we've done so is a fantastic job to go to this point. But now the job is for us and for me is to build out our product suite and to see our ARR increase our engagement levels in creator customers and our ability to be able to monetize those relationships effectively going forward. I don't rule out anything at this stage, but I'd like to make sure it's riveting from good strategy, that at will be communicated to the market and for our shareholders, and we have a clearance tally about what we're doing, why and when, and then we can give you further updates along the way. But cash preservation, cash management, optimize them. These are all rigorously now applied inside our organization and will do going forward.

Ben, I'm just going to unmute you, do you want to ask your question?

Yes. My question is a simple one. It's just around display of the Spacetalk watch at retail shops. There is a clear explanation of the advantages of buying a Spacetalk watch. Yet, obviously, the price is higher for that product than the competitors. So I'm just wondering, can you clarify what the advantages are of buying a Spacetalk watch...

Simon, why don't you take that one?

Well, maybe I'll start and if everyone just -- based with me a few weeks in, I've got my own views on this, but it's kind of constantly evolving. So maybe, sorry, if you can throw a few comments on the way as well. I think that anecdotally, what we hear from our customers is a high degree of satisfaction with the overall design and quality and build of the product. So I think overall, we have an excellent product, which we constantly receive positive kind of reviews and feedback about. I think what's exciting about the future is though is we've now taken into the next step in terms of iteration of that product and also focused on the cost to produce that product as well. And so the next generation of our entry-level product will allow us to be able to operate that supply that much more effectively from a cost and margin perspective going forward, which is without necessarily sacrificing any of the qualities that go to this point now in terms of durability and kind of user satisfaction. So I think overall, I think we're known in the market for quality product. And I think we all feel comfortable with that. I think the challenge for us as a business now is to make deliver those same qualities with a better margin to us as a business and more contribution going forward. I think how we articulate that externally in the market is a good question. I think, again, one of the things I'm doing by bringing on Board Chris and his focused role from a marketing perspective is how we unify our funds, how we link it back to specific commercial outcomes, and how we have much more effective kind of feedback loop inside our business in terms of what we're doing, what we're planning what monthly and quarterly plans look like, and how we're relating every single dollar of marketing that we allocate back in terms of the ROI we get for it, which is a very specific and considered process. So I think how we articulate our products, how we stipulate ourselves going forward will change quite fundamentally over the coming months. I've already kind of zeroed in on that internally and allocating more ad or specialist resources. So I think I feel comfortable we're making some good progress there. You'll start to see the benefits of that flow through over the coming months. So if you got anything to add to that... Or?

I'll go, I think you did a good job explaining that, it's a lot about the market and the messaging. The second point I'd say that is there's kind of 3 main categories when it comes to [indiscernible] -- you've got the category of [indiscernible], which there'll be Kid. There'll be $100, $150, and then you've got the one which is out is more like a Kid safety and communication device. So when you've got a kids safety device, you don't want the battery run at noon, right? You want to make sure you've got amazing phone service all the time. So that quality is just a better party experience when they do want to talk to their Kids or they want to track the Kids they're able to. But totally agree, I think that there's a lot more work on the sales and marketing side their results.

So just one final comment on that in terms of targeting and how we show up. I mean to give you a good example. So I'm a big fan of the Life Watch you geared towards being [indiscernible]. I think it's a great product. And I think it's completely understood at the moment in terms of how we've gone to market with it. So I think there's an opportunity there. But I think originally ones being a smartwatch for seniors. I think that wasn't a mistake. I think it deters what. I think it has a more focused category and a focused niche. I think what you'll see is in the plan is more of a focus about how we're showing up in a very specific targeted way as opposed to competing in a more of a generic way with lots of -- deliver a red ocean out there in that regard. So where we can find more valuation for ourselves in terms of being more specific, more target and more focused. I think that's what you're going to see from a marking perspective as well.

Thank you. I'm just going to unmute you and ask you to introduce yourself as well.

It's [ Stuart Macrae ]. I've just got a question about the quality of the kids watches, where customers and obviously, shareholders of Spacetalk. And so we went out and did the right thing and bought Spacetalk watches for our kids, but we've noticed that the quality in -- this is probably 12 months ago. The quality and the casing of the smart watch we've noticed the crack coming down the side as well as my son's band snapped off. I'm just wondering, with this 4-to-4 releases of new watches that are coming to the market for kids, is just going to address any of the issues in the quality of the hardware?

There's probably 2 things I'd like to take this bit more -- probably 2 things to the first thing, we've got 2 new watches coming out in the next couple of months. We've got Adventurer 2 and one of the major changes there was just the way the band holds on to the watch. So that will fix a model like the bands snapping in those kind of things as well. And the better quality material that we have for the inventory to, we compare to that across to our branch matches. Well touch wood, we shouldn't have those issues in the future. anything you wanted to add to that?

I'd say that any problems with the watches, feel free to reach out to us and our customer support team. We're always really happy to help our customers, and we like the feedback. And we'll see what we can do in helping out with the refurbish. No problem.

Now, [ Tim ] I might ask you to just unmute.

Thanks. Congratulations, guys, and what's been achieved in a pretty short space of time, but just seem to unpack a little bit with regards to the budget, what would you've been generated lease in the back half of FY '23. Obviously, the budget watch was a reason for sales slowing down in third quarter is half '23. And that was a broadly legacy product. And then on the other side, we've got potential, which is a much higher price point and higher spec with mostly out of the affordability range for a lot of buyers. But just where you see this new watch sitting in the market, how it looks from a feature perspective and just how you would characterize that opportunity against the competitive set currently out there.

Would you like to lead with that one?

Yes, totally. So with that -- so just take a step back. So we had the Kids watch was made about 2 or 3 years ago, and that's one that we could continue during the half. The Kid Watches more like a $179 or $199. Then we had Adventurer, which is the $349 watch, and that's going to be updated within the next couple of months. And then finally, the budget watch. The budget, what will be a very similar price point to the kind of the sub-200, I'm sure kind of subject to the final work that side. A couple of things about that. What that will be locked to Jumpy. So it's great. got a whole untraditional revenue that way as well. But it is really the next direction of hardware. So the kind of thing or more only for the final expected, but you find on battery life to be kind of 3 days, you want a much better quality screen, probably better quality housing. And hopefully, we'll have a lot of the features that in Adventurer 2, will have except be done in a much more economic sale. Simon, anything you wanted to add that?

No. Sorry.

And also in the face...

In terms of the competitive landscape and Bixby and those brands, how does this stack up against their product from a spec perspective and just opening up that broader range of potential buyers, affordability wise.

Totally. So I mean one of the big reason people buy us is because of the software. Because if you look at the outdoor range [indiscernible] will be like at 4.8, 4.9, there'll be like 4, 3 stars and various touchstones. So that's why we were able to pull people into a much, much higher price point. But now what you'll get with our budget watch is how to expect there'll probably one that will above, especially around back 3-day battery life, not kind of one day by low, but the same Spacetalk batteries. You kind of have something that will have almost price parity, if not be slightly cheaper than some of those sites, but much, much better user experience. So we're quite excited about is this. I reckon this will be that a mass market product that we hope to really push out and a lot of kids will use. And I think this is the last question, if you may have questions, just to the chat – Sorry, unfortunately there is one. The question for you, Simon, was can you clearly explain what you excited are you the most about joining a Spacetalk and what makes you sign up?

Happy too. I spent quite a bit of time meeting with companies prior to joining Spacetalk, but I was looking for an opportunity that instinctively felt could be significant at a particular kind of life stage facing certain types of problems. And I think it's all about timing and opportunity and just instinctively feeling it's an area that I could add value to and to be excited about the growth opportunity. When I met with the Board, I was really in fact I was impressed by the determination and enthusiasm and passion to build a great company and to make some tough calls, which, as you've seen, have been done. And I think we're now in a position where we can really start to fully realize the potential of the business. I've got some specific ideas about what I'd like to see and do and they are the things that are going to anchor our future conversation. I think how do we look at building our software side of our business, the subscription side of our business, I think the new hardware that's coming out is really exciting for me as well. But I think overall, the opportunity to have this whole family view and to really understand how we can effectively -- we have a really trusted role in that relationship at the moment. And I think how we leverage that in a positive way to build a great business, while also delivering a great service and a great product is really appealing to me. I think the seniors market, it was a really key driver for me. I think that's something that I'm quite passionate about. I've got elderly parents, myself, facing some of these challenges in the future. I know many of you have as well. And I think we can position ourselves to provide a great dependable service there for people in need, and fortunately, a growing part of our community in the future as well. Yes, I think there's a great business here that we built, and I'm really excited and I'm feel challenged about what lies ahead. But overall, I believe it's a great business to be built here. That's the reason for joining. Thanks.

There's no other questions. Well, I think thank you, everybody, for joining and thanks for your support. One final words.

No. Thanks very much, everybody. I'm not too forward to going to know you all. I'm always available. Everyone could like to reach out to me. And if I can, I will give you an update, and what you'll see more and more going forward is kind of nonmaterial estate from the company using our social channels, giving you face about product releases, new hires, those kinds of initiatives inside the business that kind of demonstrate the velocity that's going on. Inside our organization, some of the changes that are underway. So all good talking to you about strategy. It's now also about execution going forward as well, and I hope to be able to demonstrate that consistently, continuously as we kind of develop our relationship together going forward. So thanks very much for your time today, and I look forward to driving the next update in the future. Thank you.

Thanks, guys.