Teneo AI AB (publ) (TENEO) Earnings Call Transcript & Summary

Okay. I'm going to start right now. So welcome all to the Q1 2024 results from Artificial Solutions, ticker symbol ASAI. Of course, you'll find the presentation also on investors.artificial-solutions.com. And of course, some of you may or may not have been with us before and know that we go to market as Teneo.ai. So if you go to artificial solutions.com, you are actually redirected to teneo.ai, which is our product, our registered trademark, which is how we go to market. So Artificial Solutions is, of course, the company where you'll find the investors presentation. So investors.artificialsolutions.com. Without further ado, okay, you're going to be seeing me and Fredrik today. I, of course, have been there now for -- both of us have been about 3 years. It's a company that had a management haul over 3 years ago. And since then we've been working hard to provide value to you shareholders. And thank you all that participated in our rights issue in Q1, and we'll show you a bit of what the results that come out of our continued focus forward here. So I'll go to a business update first and then we'll go to the numbers. And just a quick brief for anybody who has not been with us before ASAI in a nutshell. It's a company that's been around for a long time. We've been in the space of natural language understanding since 2001. This means that we have some of the foundational patents in this space. And this space has, of course, heated up a lot because natural language understanding is exactly what LLMs or ChatGPT or everything else that you hear about in the AI space is all about. So the generative AI space is actually generating text. So that's also first understanding and then generating text related to that. So we've been in the space for a long time. That gives us an advantage in several areas. And one of the areas is that we have the largest implementations of such technology with natural language today in live. So quite interesting background from the company. We started the journey about 3 years ago. I'll go in a bit further into that journey. You see some of the stats here on the side. I'd like to highlight the one at the bottom right, 40% containment is something we reached in Q1 at 2 of our customers, meaning that 40% -- over 40% obviously, it's a round number, but over 40% of all phone calls that come into these companies are understood. You understand why the customer is calling, you can also help the customer, and you can close the call without involving a human. So that's a very, very strong step. It's compared to anything else in the industry, it's outsized, right? So there's a few places with 5%, maybe 10%, but those are small volumes. This is big volume, 40% containment. So very, very interesting results coming from our customers during Q1. Of course, that's a big saving, but it's also great for customers since they're happier if you're served by the bot than by a human because it's much, much faster. I'll show you an example of that of a contained call. But before that, just quickly, again, reiterate our story, started out in 2021 with the new management team. We rebuilt the customer to -- the company to a SaaS company, divested professional services. So all our revenue today is related to the software, not related to services that we provide. And so there's no project or anything else delivered by us. Sold to some very large customers took them live and started prioritizing our product development and seeing what main use case was it that these customers were using. These are very large customers, Microsoft, AT&T, Swisscom, Telefonica, et cetera. And we saw what they wanted to do is use this technology to answer the phone, understand why the customer is calling, take action on it. And if they can't solve it then route it through to a human. We call that OpenQuestion. So that's a product we launched beginning of last year. And then we've got our customers on to that. Again, that 40% containment that we just spoke about. And now we've been focused on growth in those customers, partnering up with tech firms. We're part of the GCP, AWS and Microsoft Azure ecosystem, very in line to Azure and Microsoft. We run on Azure. So when we make deals, Microsoft salespeople make money. We're now also, since this quarter, we are on the Microsoft what's called -- if you have a big agreement with Microsoft called MACC Agreement, which all enterprises do, they can actually draw down from that agreement, so they commit to certain volume. They can draw down our technology from that without negotiating a contract with us. So that's going to help us a lot in the sales cycle. And of course, now the focus this year is new logo hunting and getting to cash flow positive on an EBITDA level. So we are positioned to cater large-scale enterprises. We have, during this quarter, found a way to also provide to certain niches or certain categories of small medium business that had other benefit effects for us. The first such this quarter was Medhelp, which, of course, is in the same space as one of our very large customers, NHS, which is moving quite slowly. So Medhelp, hopefully, which is a very quick moving company. Is going to be able to show NHS away a bit too, apart from the fact that they themselves would benefit, of course, from the technology. So in all the ecosystems, as I mentioned, some very, very strong customers. AT&T's and Swisscom. This is in quotes here from the CEO of Swisscom. But we are also the only game in town that has millions of phone calls that are answered on the phone and understood by our technology. So very strong position. I'm going to play just a little bit of this. Some of you have heard it before. This is a traditional IVR or a traditional way to call a company. 62% of enterprises today have this. I have still not met a single enterprise that does not want to replace this. However, there's many things in play when you are trying to replace this. Not the least that you need to also replace your contact center to -- in a large likelihood, and that's something that takes time for these large companies. But let me play this very quickly first, just so you can feel the pain of -- I actually need to stop sharing. I need to reshare with sound. Sorry, my fault, that I didn't include the sound here. I'll do that again, and there we go. And this is then, again, a traditional IVR, 62% of enterprises have something like this. I'll just play a short part of it. [Presentation]

And I'll stop it there. So this takes about 1 minute 35 seconds. And at the end of that, you are connected to a queue, which in this particular phone call. Of course, that depends on when you call. It was a 45-minute wait time. I was asking for technical support because I have a broken device. Now let's listen to the future. [Presentation]

So that was also 1 minute 35 seconds. The only difference was that it was totally end-to-end managed by the system. And again, this quarter has been the quarter of what's called containment in this industry. And these use cases are extremely powerful. This question -- this customer questionnaire was also rolled out during the quarter into Japan and also does this in Japanese, which is incredibly powerful. And there's not another one that has this. Google introduced something like this in 2018. You may have remember how you book a barber shop or you book a salon, as they call it in the U.S., but it's still not working in the Google space. Microsoft introduced it, they've retired theirs and now, obviously, working with ours. The only question is what's the pace of replacing these old keypad IVRs? It's not a question of do people want it or not. And what's the reason behind this? So we've done testing with the BANKING77 test set with that's something you can download from Hugging Face as test data. It's a real live calls that you can then submit into the system. And then those are graded by humans and then you can grade you awards as humans. So these are -- basically they're regraded by humans as well. So they're 100% accurate on the human side. And here's what it looks like on the -- when you submit it to the different systems that are out there. So Amazon Lex is, of course, Amazon system. There's a few others here, Microsoft CLU, IBM Watson, et cetera, Google Dialogflow. And what you see is the percentage, so it's 74% on Dialogflow of the phone calls are actually correctly understood. To really have a conversation, you need to be above 90%. The threshold for a good call center is around 92%. So when humans pick up the phone, 95% is the reason why our solution works. And these are patented solutions, which is part of the reason why our patents are valued at SEK 1.6 billion. We have another thing that we've introduced during this quarter, and this is totally new. You also see that it's a different background. It's a different -- so it's a different look and feel. It's because it's not an enterprise product that you sell on the business benefit per se. I'll explain a bit more about this. And we're now looking how we're going to be taking this to market and what the next steps are for this product. It started out with ourselves needing to understand the -- if you look on the cloud on the right, this says Anthropic, Bard, you have Azure, OpenAI, et cetera, on there. There's so many different models now. There is Mistral. I don't -- you're probably not following all of this, but there's probably like 100 different models and some are good for some things, and some are good for other things, which means that if you're building a solution today, you need to communicate the different models. You need to understand which one to choose, but you also need to make sure that you're compliant. You need to be efficient, so make it cost effective. You need to be able to optimize. So for example, things that are faster, need to go to a small language model sort of things that need faster responses, there's different SLAs on different models. You need transparencies. You need to know which -- what data is sent where and what data came back. That's for EU compliance and soon also U.S. compliance. And you also need it for risk management purposes to know where your data has been and what data has gone back and forth from your company. So we started developing a platform like this, showed it to the Microsoft AI Inner Circle partners. They were very, very -- they really liked this product. We started implementing within -- so it's a SaaS product. Then we found the companies were not interested in having this as a SaaS product. And there's many reasons for that because this sits in the middle of their compliance efforts. So we've done -- rebuilt this. We took a small team. It's 2 people that rebuilt this into a stand-alone product. So it's now a package, which has nothing to do with Teneo. It's not related to our code base, and it can be implemented in anybody's environment. So it's a different sales motion working to look at it, but it takes -- whatever comes from the application and it's a gateway that sits in between that and the LLMs, very interesting development. And there's several reasons why businesses would like this. And we're now looking at how we're going to be taking this to market. But really, another stellar product, we needed it ourselves. And now we're able to productize it in just a few months in something that's totally unrelated to Teneo and can be sold in a totally different sales motion. This is sold to engineers, so the people that develop. Okay. So just a quick background on the business. So we're a very strong player with strong industrial backing. You saw the case here from Microsoft, and we have the largest references in the high-growth AI market. Answering the phone or natural language understanding applications is viewed as the growth market within AI. And just this morning spoke to an investment banker in the U.S. that commented on our report. And before he went to bed, I suspect, this is in California. And he said it's very interesting to see that, yes, this AI market still hasn't really taken off. A lot of people are still in the poke and pilot phase, but it's interesting to see that you have some really, really solid use cases. So really good -- really good interest among large enterprise customers for this. We have an NRR today of 141%. That means net revenue retention, meaning we increase our revenue on existing customers, which means customers really like what we're doing. They're really satisfied with our products. So that's also very, very strong. So our gross margin climbed up this quarter. If we have a fully deployed customer like we showed here, we're about 95% margin on the customer like that. So definitely going to really enterprise SaaS margin here. It's very difficult to replace us, first of all, because customers are happy with what we do. But also there's very strong costs in replacing us because TLML also -- the things that model this is patented by us. It's not something that you can export and use in a different system. So it is our technology, it's our patents. And of course, our platform lets customers use any model, including GPT or any other LLM model. I want to show this, the market is on fire. Like I said, this morning investment banker from the U.S. that has told us everybody is talking about this. You guys have the best references here. It's really heating up with new entrants. The LLMs are slowing down adoption a bit. I was hoping to close out 2 of the large ones last quarter. We're still working on those. We haven't lost any deals, but we are still -- it is a lot of fear, uncertainty and doubt around the LLM space. We're still the only solution in town with live large-scale references. Investors are scrambling to find where to move. You see LimeChain landed 25 million core AI, which is basically what Teneo was 3 years ago, that type of platform. They got a $150 million investment this week from FTD, which by the way, which is backed by NVIDIA. That's why the -- it's not NVIDIA itself. But very interesting, $150 million on about $20 million of revenue, and obviously, they didn't sell the company, so this is an investment. So very high valuation in that space. So very interesting and also some very -- some established players are very much in the threat, and that will be Genesys, for example, which was going to IPO last year, did not IPO because people are seeing now it's moving more towards AI and less towards the core routing technology in the contact center. So very interesting industry, lots of stuff happening. And that sort of leads me into this, which is not something I am running, but on behalf of the Board of Directors. I share this message. You can also find it, of course, on the website there. It's still ongoing. It's just a lot of different things happening. And the Board doesn't want to sit with any sort of inside information. There are discussions, but there's nothing concrete at this point. But just to make sure that this message is out there, there are still the strategic review by the Board of Directors, and this has to do with I would say, the U.S. market, which is really boiling at this point. Okay, let's move to financials. A quick summary here. I'm not going to go through that. We'll go through it in detail as we come along. But really just want to highlight the SEK 67 million ARR in Q1 2024. It's -- if you compare that to where we were with about 45% PS back in 2020, we've added in the region of 4x the software revenue, which obviously is impacting gross margin. But then, of course, we also worked on the OpEx side. So we're getting better and better on the EBITDA. And we're tracking our internal target for the financial goals. So we're right on there on -- from a budgetary perspective, we still need to grow in the coming quarters, and there's hard work on that. But definitely tracking on the right track for that. So operational highlights, record quarter. We had 40% year-on-year growth in SaaS, API calls, very, very strong. I mentioned already that Microsoft also went to Japan. We call them the global American tech company outside the investment community. Microsoft has themself presented this in investment conferences as well. So a number of renewal agreements signed, actually a lot, and also very happy to have a new logo and that was Medhelp, which was after the quarter, but still very, very important for us and a very important space for us. That's one of the key niches where we want to go with the smaller offering where we can provide a cheaper platform to these companies. So that means we can still make money even though it's a lower price point. Teneo 7.4 + Copilot released in January 2024. Copilot like you would imagine Copilot in office helps you create your solutions, very strong offering using the AI space. That, together with Gecholog and the SMB just shows that our R&D is also on fire. We're in the back of the Azure Marketplace. Like I mentioned, you can buy us on your on MACC agreement. And we also unveiled the RAG Solutions for Enterprise AI. I'm not going to go into a RAG in this call, but if anybody wants to know more, they can call me. The problem with RAG is that you get about 10% hallucinations, even in very large companies with lots of resources. We help you with that with input/output filtering and also helping them with the Gecholog gateway to route to the right LLM. We also, of course, thank you very much for the rights issue that we closed at the tail end of Q4, beginning of Q1 2024. So with that, I'm going to give it over to our friend, Fredrik, our CFO.

Thank you, Per. So let's kick off. Per mentioned a lot already. But I mean, let's just reiterate a bit on the numbers in the quarter. And for the full year 2023 and also continuing into Q1 '24, we experienced a solid growth in recurring revenues. And also, as you also can see in the numbers, right, we also significantly improved our EBITDA, which is very satisfying. And in the first quarter, we reported 99% recurring revenues, and this is also coming back to what we have had as a target to -- that it's manifesting that we are a pure SaaS company, a software company now. And our recurring revenues experienced a growth from SEK 13.4 million in Q1 2023 versus SEK 17 million in Q1 2024. So a growth of 27%. And Per mentioned this as well. The growth is primarily driven by our existing accounts. So our existing customers are growing with us, and that's a bit how we want to continue to grow on these large accounts since the potential is significant, I would say. And this is also evidenced in our NRR number of 141%, coming back to that a bit later as well. Our gross margin also improved from 56% in Q1 2023 to 79% in Q1 2024. So a very satisfying number there as well. As I also mentioned, EBITDA improved to minus SEK 8.5 million, and that is obviously a consequence of higher sales volumes and low -- I mean also the fact that we also increased our API core revenues, which is the really high-margin revenues for us. And also the fact that we also have reduced our OpEx versus Q1 2023. Solid cash position, SEK 25 million and also a bit higher if we also adjust for collected accounts receivable in the beginning of April. So very -- I mean, to summarize, I mean, a very satisfying quarter. Best quarter ever for us in terms of numbers, sales numbers, EBITDA numbers, et cetera. So a very satisfying quarter, I would say. Next slide, please, Per. Coming back a bit on NRR, a new metric that we introduced last quarter, and it's also kind of measuring how well we are growing our existing accounts. And obviously, for those that are not vary into SaaS companies. So a number exceeding 100% means that we are growing in this respect, simplified. So -- and during 2023, our strategy was basically to grow on existing accounts, and that has somewhat now tuned into also focusing more on new logos as well. But for 2023 and now also in 2024, beginning of 2024, we have a very solid development on our existing accounts. And also to put some perspective on this NRR number of 141%. When we compare with similar type or other type of B2B enterprise software companies reporting 141%, and that's quite rare, I would say. So we are ranked #1 in Redeye universe for SaaS companies in Q4 2023. And I think we would be surprised if we are surpassed by anyone else in that record in Q1 as well. So a very, very, very strong development from our existing accounts in Q1 the 2024. Next slide, please, Per. API call volumes, particularly on the SaaS side is a key indication of how our business is developing and growing. And it's basically an indicator of how our customer application and the usage of them are growing with our revenue models where we have a significant part of the revenues coming from the variable piece which is linked to the volume. This is a key KPI for us. So you can simplify, say that the more application solutions, covered regions, languages, et cetera, the higher API call volumes. So high volumes is a good thing for us. And in Q1, 2024, we reported the highest API call volumes ever. So we had an average of 24 million calls per month in the quarter. So it clearly shows that we are back on the growth trajectory, and we also look forward for continuing growing even better than the market also in the rest of 2024. Next slide, please, Per. SaaS and total ARR, obviously, strong API call volumes also translated into strong ARR growth numbers. So the SaaS ARR grew with 32% year-over-year Q1 2023 versus Q1 2024. And the total ARR had a growth of 25%. So overall, a very, very strong growth in the quarter. Next slide, please, Per. And this is even more numbers and some of them we already communicated during the call here. But just to reiterate, so recurring revenues grew from SEK 13 million in Q1 2023 to SEK 17 million in Q1 2024 and a growth of 27%. And also here, I mean, the fact that we are growing the valuable recurring revenues. That's very encouraging, right? And as I already mentioned, I mean, we do see significant further volume potential in our existing accounts. And where we also see potential, I mean, to continue to grow SaaS ARR multifold with a number of those customers going forward as well. And coming back again on our NRR of 141%. It's a clear signal that we are delivering a very, very attractive software platform for our customers. And we also see strong continued commitment and high interest in our SaaS offering from new customers, as Per mentioned, but also on our existing accounts. And we anticipate that we will continue to grow stronger than the market and the growth rate in the market kind of communicated by Gartner is estimated to 38% per annum until 2031. So we see a lot of potential going forward as well. So with that, we can go to the next slide, Per. Recurring revenues by type. In this one, I want to highlight the boxed part of the graph. Basically, API call revenues now constituting 60% of our sales. And as you can see, I mean, the growth, if we look then, I mean, Q1 2023 versus Q1 2024 is primarily coming from the fact that we are growing our volumes both on SaaS, but also on our non-SaaS customers as well. So a very strong development year-over-year. And this also ties back into our revenue model, which has significant operational leverage. A lot of SaaS companies have their model built on number of seats and how many users you are deploying in your SaaS solution. But for us, it's more -- I mean, how much volume our customers' customers drive in the platform. That's the key metric. So the fact that we can grow based on volume is very attractive for our shareholders in the long term. So next slide, please, Per. And this is also -- I mean, the volume aspect is also tying back into our gross margin, where we also can see that we are improving our gross margin, and this is related to the fact that we are growing the SaaS API call volumes. And that's also driving our profitability. So when we have customers at high volumes, we are seeing gross margins exceeding 95% on those customers. And this is also tying back to that we also see the effect in our gross margin. And with continued growth in API call volumes, we will also continue to see improved gross margins. So with that, next slide, Per. And on our OpEx, we are more or less on par with our OpEx in Q4 2023 and we are significantly lower than in Q1 2023. And during 2023, we have done some simplification actions, and that means basically that we are streamlining our operations, and we have also reduced our headcount during the year as well. So that's one effect of the reduced costs. And then in Q1, we have also had a salary review and that also caused us to somewhat increase our salary base for our employees since it is very attractive staff that we have in our company given what is happening also in the rest of the market, right? We foresee going forward, a slight increase in OpEx, not anything dramatic, but run rate wise, it could be SEK 1 million, SEK 2 million, SEK 3 million in the quarters, and that's primarily linked to the fact that we are increasing our investments in marketing and sales activities due to also the fact that we see a very strong pipeline, and that's something we want to capitalize on going forward. Next slide, Per. Cash position of SEK 25 million in the quarter. And also beginning of April, we also collected close to SEK 5 million in accounts receivable from customers that we were expecting to have been paid by the end of quarter, but we received them beginning of quarter, which can be the case sometimes with large customers, which we are primarily working with. So adjusted cash and bank position of SEK 29 million when we are ending the quarter. Over to you, Per.

Thank you, Fredrik. So in summary, before we start the Q&A, let me just mention some stuff while you guys get ready. So in order to ask your question, you need to first, raise your hand, I'll unmute you and then you unmute you, So it's a double unmute. So I'm just going to summarize very quickly. Obviously, the numbers you've seen here I still want to highlight that SEK 67 million ARR, it's a very high number in our nascent industry. I also want to highlight that we have now the possibility of sort of a new product to go to SMB in certain niches, very important for us. I want to highlight the new logo, Medhelp, very interesting for us. And the fact that we have now 2 strong products in this hot AI space is Gecholog, but then also, of course, the OpenQuestion which already has all the references. The big focus, I have 12 key performance indicators that I follow in the organization. The one that we really need to work on this quarter is sales in the large enterprise. We have the pipeline still. We haven't lost anything. We just need to get these customers to close. So there's a few tweaks we're going to do on the marketing side, messaging side and try to get around this constant waiting for the contact center project to be ready, which is the big stopping block in the organization. A bit of LLM here, I certainly doubt that most of the time, the problem is the slow pace of the large contact center project. That's going to be my focus for this quarter.

So let me now open up for questions, and let's do -- I'll actually stop sharing -- sorry, I'm on my PC today only. So I can see we have [ Mark ]. Let's see [ Mark ], how do I unmute you? Do I need to push people? That's how I do it, sorry. And now [ Mark ], now you can do the same.

Hello, can you hear me?

We hear you.

So can we start on the -- some more insights into the sales cycle for these larger customers. So like are there any indications that this might change in the near future? Or do you just have to work around it?

We're going to need to work around it, we're going to need to find a way. And I think the really important one is this, it's called Microsoft Transact, is the technical term for it. This basically means that -- and we're talking large customers like Microsoft of these type of customers. That's what we are working on in the pipeline. And we need to get around it. And I think we can get around it with this MACC agreement. So essentially, all these customers have a lot of Microsoft consumption. Let's say that typical customer has $250 million committed consumption from Microsoft. They draw down with Office, with Copilot, with OpenAI, and they need to fill that. And of course, Microsoft's quarter ends now in or year ends now in July, end of July. So we're going to use that momentum for anybody who has MACC left to try to push these deals in further. And then the other thing is we're trying to develop a product. So like you saw, we came up with quite a lot last quarter, but this product would make it possible to first implement in the old contact center platform, which usually is Genesys on-prem, I would say, 95% Genesys on-prem. And keep the implementation and just change a small piece of integration into the Amazon Connect, Sprinklr or whatever the customer is moving to. So that's another thing that we are doing to try to remove the obstacle of first having to finish off the project.

All right. And you stated that you decided to quickly focus on creating a SaaS delivery at a lower price point. So can you talk a little bit about this and the pipeline you see there?

Yes. So this is quite new for us. And the thinking here is that if we can show in certain verticals that it works very well to do this and get really good references. So if we can show that Medhelp can use this in the health care space. We're going to be able to use that. Also push to the larger customers to show that it works very well and maybe get a bit more momentum on that. So we have a very large customer in the U.K. It's the NHS and the NHS are still, they've actually now stopped the contact center project and now looking to replace the technology with a different one. But these type of niche can actually push, I think, in that direction. There's also the retail space where HelloFresh is -- HelloFresh signed. It was a new contract in August, where HelloFresh decided to also go voice. That's also been quite slow in adoption. So therefore, if we take a smaller retailer, then we can probably push a little bit more than that too. We also have a partner that's going to be able to use this platform to sell to several smaller not necessarily smaller customers but smaller engagements in the customers as well. So that's also something that's in pipeline.

All right. And how is the sales reorganization progressing? Do you get the benefits you're looking for? Or is it too early to say at this point in time?

We're definitely getting that. So I don't know, Fredrik, you also follow the pipeline discussions here. Maybe you can give a thumbs up if you would say that, that's improved quite a lot without, obviously closely tracked number, right, the pipeline development. And that's a totally different world from where we were in Q3, Q4, where it was sort of a bit on Friday afternoon, we would focus on pipeline and the rest of it, we will focus on existing customers. Now it's a full focus.

Okay. And my last question. So are you actively seeking to establish new partnerships in the upcoming months or quarters? Or are you primarily -- is your primary focus on optimizing existing partnerships? Like how much support do they need from you? And how much can you handle with your current organization?

So we are very focused this quarter. We're going to be very focused on Amazon, Microsoft as technology partners or ecosystem partners and then Tech Mahindra. So Tech Mahindra is going to be the big focus for this quarter. So Tech Mahindra has a new CEO with a very, very strong vision to replace humans with technology because he thinks that, that's his way of winning, which I'm quite sure it is because they are lagging in gross margin versus the other integrators, the large SIs. So very much focused on them this quarter. Okay. Any other questions, raise your hand. We have a question from Forbes. I am allowing your mic, and now you can unmute yourself.

Yes, I wanted to follow up on this. New segment that you talked about at the lower price point and how much we should read into that? I mean, is it a bit of a here and now thing to support the larger deals or is this really a new segment that you're hoping to build on the coming years? And also a bit more, if you could quantify like the ARR potential, the margin difference versus large customers and so on?

Yes. So we estimate that these type of customers were going to generate about EUR 15,000 a month with a EUR 4,000 costs. So that's sort of where we sit on those. So that's not really to build big ARR numbers. It is really to push more margin. However, it lays the foundation for potentially having partners selling to smaller customers. So there's a lot of small customers in like -- a country like Sweden, who would love to be able to answer the phone instead of pushing customers to chat and e-mail and messaging. So we want to go there as well, but we're not quite there. We need to then reduce additionally, which we're not doing this quarter, but maybe towards the tail end of next year of this year, we might be pushing also to make it even smaller solution from a cost standpoint. But yes, it's not -- so far, it's not a focus on SMB. It's a focus on certain niches that provide benefits to the larger enterprise hunting still. So still -- enterprise is still the main focus. And that's where the ARR buildup is going to come. But also Forbes, you, of course, know that the customers we sell this year don't have a big impact on our goals, our financial goals. They have a big impact on other goals, but not the financial goals.

Yes. Great. And then also on the media coverage that you're getting with awards and so forth. Just wanting to hear like how that's converting for you guys like traction wise, is it leading to a lot of trials with new customers that want to try you out or like what is the media coverage generating for Teneo.

It's difficult to measure just the media, but the revamp of the website and the media has generated -- generates about 3 to 4 leads a week. And about half of those are really good and about 1 of them actually progress into the pipeline. So it's large customers that come in into the web. So the media and the website have contributed to, if you today, Google conversation IVR, if you're on the U.S. Google site, we will be the #1 nonpaid. The problem in our space is that there's a lot of paid ads first. So actually, the first sort of half page is actually paid because it's a very lucrative market for Google to sell these. So the clicks are very expensive. But we're looking now to see should we maybe spend a bit more and maybe target to, let's say, a company that's in our pipeline. Should we then target also ads into there to get more people engaged in that company, apart from the people we already talked to. So it's -- we have a lot of attention now. We get a very good ranking on Google generically. The question is then, do we need to maybe, now that the market is red hot, also spend a bit more on the ads. But yes, media and the website. And it's really this revamped Teneo.ai. Artificial Solutions, in all its pride and glory, is a very long name. And if you're going to just type it in after reading it in a newspaper article, the chance of making a mistake is actually quite high. So you can try it yourself to type it quickly with dash in the middle. So Teneo.ai has helped a lot. And of course, our website is a different message platform.

All right. Great. And then my final question is if you if you have any predictions this year for customer intake, big customers, that is. I know it's difficult to say, but anyway.

We're still thinking -- so we have the same pipeline. We were just hoping to kill them off quarter-by-quarter. But maybe now it's going to be a bit more that they come in during Q2, Q3, Q4 than in Q1, but we're still expecting the same amount of new customers. So the pipeline is still there. We just need to close these out. So we have business people who want the benefit and then we have technical people who have other priorities, let's put it that way. Okay I don't see any other questions. Yes, I do see [ Casper ]. [ Casper ], I am unmuting you. And now you can unmute yourself. Good morning, [ Casper ].

So just a quick one for me on the new customer you have won. Do you have any numbers on how much revenue you expect to generate from that customer in '24?

In '24, so I would say fully deployed, such customer would be 1 of those SMB EUR 15,000 a month type customers. But in '24,, I think that -- I don't know what you say, Fredrik, maybe EUR 60,000 in total, something like that. So new customers, [ Casper ], are not a big revenue generator. It's still -- next year, those start generating more of that. The first year is always a bit slow in revenue terms.

And do we have any idea of the total potential for this new customer? Is it more or less in line with the existing 1 you have? Or is it better or worse?

No, no. So these smaller customers are going to be a lot less revenue than the Microsoft, Swisscom, Telefonica type customers. Since it's all driven by the amount of calls. So our hope is that this is going to have a lot of impact on a customer like NHS and a customer like Medtronic, which are the really large ones in our portfolio. So it's very much that -- I mean Medhelp is a very strong tech company in the health care space. So if they can build solutions which are -- which we can then promote as references across larger entities that's very, very powerful for us. And of course, it contributes to our development. We're getting feedback on product features and so forth. But I think these SMB customers are going to land in the EUR 15,000 space per month. So ARRs in 180 type -- EUR 180,000 type ARRs. Okay. If there's no further questions, I will close the call. Available for any of you, if you want to talk more next week. I'm actually heading out to a training now. So Monday, I'm back in [ Shapes ], if you can just ping me and I'll catch you all then. So thank you very much. Stellar quarter, very hot market and some very interesting new product developments as well. So really, really good, really happy with the team, really happy with the delivery. 12 -- 11 out of 12 KPIs fully delivered, the one [ Casper ], as you're alluding to, getting some of those larger customers in, we're still working on them. But this quarter, we're going to put a lot of focus on that. So thank you all, and see you all. Bye.

Thank you.