Tern Plc (TERN.L) Earnings Call Transcript & Summary

Good afternoon, and welcome to the Tern investor webinar. My name is Tim Metcalfe, Managing Director of IFC Advisory, which is Tern's financial PR and Investor Relations adviser. With me this evening, I've got Ian Ritchie and Al Sisto from Tern; Darron Antill from Device Authority; Jo Halliday from Talking Medicines; and Alastair Williamson from Wyld Networks. Darron, Jo and Alastair are going to run through presentations on their businesses, and then we'll have the opportunity for question and answers. We can have specific questions on the 3 businesses and about Tern and its other portfolio companies more generally. I'd like to thank everybody who submitted questions in advance. They're really helpful, help shape the presentation, and we'll hope to address all of those either during the presentations or at the end. We do welcome further questions. [Operator Instructions] Although, we have had quite a lot of questions in advance, so apologies in advance if we don't get through everything, but we will try and cover everything we can. Okay. That's enough for me. I'm going to hand over to Darron to take you through the first presentation. Darron?

Thank you. Okay. Let's get going. Can you see my slides okay?

It looks good. Thanks, Darron.

Fantastic. Thanks, Tim. Right. We'll get cracking. Well, welcome, everyone. Good evening, and thank you for the invitation to participate today. I guess I've done a few of these, but I just wanted to give you, I guess, an update of some of the new things that's going on inside Device Authority, our customers and with our partners. So I guess at a high level, just to give you perspective of where we are, we're on track for doubling our revenues, which I think is excellent. We're seeing customers look to move from POC to deployment. We continue to win new logos, and we have the backdrop of some customers taking longer than we would like to move through the POC to pilot to production phase. But generally, customers are embarking on a forward journey now as they come out well beyond the COVID, I guess, downturn or stoppage that tended to happen around some of the POCs. And now we see people advancing their business around some form of digital transformation, which is very much where we operate. So let me just touch on, I guess, some of the things that we see. And I always think the latest market stats are encouraging, especially when they absolutely align with our business. And I think this Verizon report really picks out 2 things, just to pick out. One, that human error is clearly a significant issue with regards to breaches, and that plays very much into what we do for the Internet of Things in terms of replacing human intervention and automation. But also, that more than half of the issues come from credentials or credential management or identities, as people often talk about. So the market dynamics are absolutely there. You also see, and I'm sure you've seen this in the press if you follow the headlines and some of the public companies, compliance, regulatory compliance, Securities and Exchange Commission. For example, I was at a CISO event very recently, and this is a big topic of CISOs who are in the audience and actually on some of the panels: one, accepting jobs; two, their contracts and some of the liabilities around their contracts, the roles that they now need to play, and the significance of them and who their reporting line is, bearing in mind some of the Compliance Commission is effectively now evaluating. And you can see that they are coming down very much on people where there is some sort of fraudulent or a lack of or there's been some form of misleading behavior. So compliance drivers is always a big thing. I wanted to touch on Zero Trust as well. This is a big overused word, and there's a definition here, you can pick out the pieces. But the key point really, we talked about Zero Trust, and this is a big organization that really talks about best practices, frameworks. And North American companies, many that I've spoken to, all look at and talk about this framework. The point here, though, is it's all about outside of the network. It's not about trusting what's within your network, it's being able to trust what's outside of your network and to really enable that identity is becoming the new perimeter. So when you just dig into this and look in, I don't plan to go through the various pieces. But many people in the market talk about detect and respond. Some of our pseudo-competitors in the market talk about how they can respond or detect threats in regards to Zero Trust. But the challenge when you speak to customers and this whole framework isn't just about detecting and responding. It's making sure you can protect, you can identify and you can recover, and you have to have policies and practices in place. And many of those, we look to address again with our product KeyScaler as a Service. So let me talk about that because this whole framework is becoming very relevant. I was at a medical event the other week, and it was being talked about by customers. And this is really a framework, and that now is a governance rep, that's allowing large enterprises effectively to put something in place as they move forward and align accordingly. And of course, you've seen this slide before and then how we really address it. So when you look at that framework and you're really talking about identities, most companies have 3 identities they have to manage. Well, where we focus is on the right-hand side. We work with many organizations, like Venafi and like Entrust, who typically in the past have worked on the identity on the left-hand side here, so machines, servers, laptops and humans. But the right is all about things. Typically, they are outside of the network. They're often connected to some form of other device or gateway or some application. And typically, humans don't very often, if at all, ever interact, and their life cycle or lifespan is significantly longer than many of the things that appear on the left-hand side of this. So at a macro level, we focus on the right. But when you look at the challenges, and again, when you talk to customers and if you look at the market landscape, many people often start really talking about PKI or certificates or what certificate-based identity, the first port of call or the first conversation that people typically will have with us. There's other competitors in the field that deal with that solution, and really, that is almost the lowest common denominator. But the important thing and the secret sauce and the special value that we add at Device Authority, for those enterprises with the most or more complex use cases, are these things. And I'll just quickly unravel them to the right. One is end-to-end data security. That's really how do you secure data back and forth from an application to device and with some form of human consuming that data, if required. That's difficult to do when you've got devices that are either on and off-line in the wild. I talked about how identity is the new perimeter. So how do you manage that but outside of the firewall? Not inside your network, outside. Difficult to do. Applications need trust. It's very, very important as people are driving their digital transformations. Effectively, it's the applications that bring the value to the customers, so it's very important that you're able to trust the devices that interact with these applications. And most organizations have a whole plethora of devices with different hardware components, so it's not easy. There is not a one-size-fits-all. So a software solution that has the ability to be able to be retrofitted is going to be important. There isn't any universal method for secure updates. Almost every client we talk to, if they're looking to do secure updates, they have their solution, the various components, of which, one, we are able to be able to trust that update to an attested device. So we're part of that solution, and there is absolutely no universal method because, again, it's too complex for all the clients potentially to manage the plethora of devices and have one method. So building that into your solution is important. I've touched on the life cycle before. In IoT, most people we talk to are manufacturing devices for at least 10 years, and they'll be in the field for many, many years. Clearly, the warranty period is important for various devices, and then the lifespan becomes very important when you're looking at far more critical devices such as medical robots that may well be used for 10 to 15 years or diesel engines that may well run for 20, 30 or plus years. So the life cycle is very important. It's not a onetime thing only at manufacturing, it's how you do that through the life cycle of that device, again, without any recalls that could be expensive, but also where there's no human interaction. We talked about legislation. That is absolutely front and center and continues to gather momentum. You hear of the White House Executive Order. You've heard about SBOMs. You've heard about the EU Cyber Act. And SBOM's an interesting point. Again, a medical conference in Boston only last month, there were a number of device manufacturers there. But they were all talking about how a year ago SBOM was this sort of word they're always getting their head around. They really didn't think it would -- it was a big thing they needed to resolve or manage. And then 1 year later, it was almost a laughing joke how it was 99% of the conversation and then how they were looking to deploy solutions to enable them not only just to create but, again, manage through the life cycle of that device so they can attest and reach the various compliance. So it's a big topic. And again, I guess we saw that a year ago, and we have to put things in place. And now AI or AIoT, as sometimes it's called in our industry, but effectively, how the insights that people can get from those devices and the data and how they use them. And I'll touch on that in a bit more. And then you have the niche frameworks. So again, companies thinking out how they do it. So that is how you really go beyond and you solve the problem for this whole security challenge for IOT. And at Device Authority, we're looking to address, and we do address, all of those hexagons which really gives us that sort of end-to-end completeness, and that's why we win. So you've seen the picture of our platform. I don't want to go into any detail of this, but what I wanted to highlight to you is there's a big pivot in our business where we are absolutely focusing on the SaaS delivery engine for customers. It's easier for them to consume service. It reduces the friction. It reduces the sales cycle. Friction often is resources internally. That isn't just cloud. Often, it's people and skills. And so it's very important. And then we have our KeyScaler Edge product for those people that want to live in a hybrid world, where they have devices outside of their network that they want to connect back to their cloud service. So KSaaS has become important. And you probably saw last month or some of you would have, sorry, earlier this month where we announced our preview of KeyScaler AI, which effectively is our new offering that will come live in January onwards, and I'll just touch on that in a minute. But I just wanted to give you a view of how things are looking. So KSaaS is important. And then if you look at our product, because often people say, "Well, how do you license your product? How are you looking to grow your revenues? And how are you going to work with clients to sell this incremental value?" And effectively, we have licenses, the Central, Edge, and we will have the KeyScaler AI. And as I said before, the big play is KeyScaler is going to be delivered predominantly as a SaaS offering. We have customers now who are shifting over to SaaS. We have new logos who are signing up to SaaS. So traditionally, large enterprises would have always wanted to put it in their own private cloud. No longer is that the case. There's an absolute market shift and adoption to use a SaaS delivery model, and we see larger organizations who are now looking to use that first time. So it's very important that we resource and scale up for that accordingly. So again, internally, we've been going through some organizational changes to align to that as we see more customers looking to adopt that service. So let me just touch on AI and its relationship with Zero Trust, why it's important to us and why we came out with KeyScaler AI. I mean, clearly, the market is talking about how AI is important everywhere you go, and it has been talked about that for the last 9 to 12 months. Microsoft, probably first and foremost, and now you see Google, even AWS, I see a lot of activity this week talking about it. But in terms of advances of models, the availability of data and how you use that data, that's going to become very relevant. So how can people trust that data with the insights they're giving? So here's just a quick picture to give you an idea. So typically, people are looking to provide some sort of [ in-flight ], the data they're aggregating, which could be from various devices or things. Today, there is a link between that service and the data, which people refer to as implicit trust. The challenge about that is that it's counterproductive and doesn't really fly when you're looking at a Zero Trust framework, as we were talking about earlier, and the niche framework. So effectively, what people want to be able to do is bind and trust that data from that device, which is what we've always done. How can you trust the data if you can't trust the device? So that coupled relationship is very important. So what we focus on is how we bring that together effectively to supply that trust chain. So that's where you'll see KeyScaler AI evolve. So I just wanted to, I guess, share with you, and some of you have seen this before. So this is under embargo, not for distribution, so I wanted to enable this audience to at least see this. This isn't published yet, so you are privileged, first external party to see it. It's likely to be published with a full report in the next couple of weeks. So you've heard me talk about what we're doing, but this organization looks into what our customers are using us for. They look into our road map, our relevance, our ecosystem. And we've absolutely come out this time, front and center, as a technology leader and one of the absolute leaders in terms of customer impact. Clearly, there's some other movers on there. Some of them are very, very key important partners to us, such as Entrust. But when I look at Device Authority, where we've come from and where we're going, we're very much market leader position, and we're getting independent analysts. So this is a great recognition for the company and the team and indeed, our investors. So we're very proud of this. So I just thought I would share this with you. And hopefully, the full report will be made available. And I just wanted to touch on -- everyone likes to know logos, and I'm not going to go into the detail of the size of contracts. But I just want to give you a flavor. Typically, it's Global 2000, FTSE 2000-type organizations that are looking to engage and use Device Authority and our various KeyScaler offerings. And many of these are either in their land, as we call it, so it could be a trial or POC. Some have moved into pilot, and that does take time. And sometimes that's out of my control or our control, but we do our best because there's other ecosystem leaks. And then some of these are now moving into production. And some of these customers are our perfect friends as they just ring us up and add on more devices on a weekly basis. And one medical company was just sharing with us this week, now they're ramping up to 200 new medical devices per week, which is fabulous. So they want to focus their efforts on bringing their product to market, managing their customers, but not managing the security posture. So therefore, the KSaaS or the subscription model that I was talking about before or the SaaS model is becoming very, very relevant. So there's some good logos there. Some are new. But I also wanted to emphasize how important this is, we're part of an ecosystem. Yes, you can replace Entrust and you could put in other PKI vendors. Yes, you could not necessarily use PTC, and you might want to use AWS, you might want to use Microsoft. The point is, we invested heavily in those ecosystem relationships. We've built the connectors. We've built the value in our KeyScaler service offerings. And we're able to work with these people as customers look to make those decisions. And in Fujifilm's case, PTC, Axeda and ThingWorx were their primary application choices. Entrust was an important piece on the PKI vendor, which we brought to the table to help be part of that solution. And our cloud service is very important because they didn't want to consume their internal security resources, and they wanted to use the experts. So that's just a good example of an ecosystem win, albeit a cloud offering. And then if you look at -- just to give you a bit of flavor, I guess, we refer to them as false multipliers. And I talked about the ecosystem and some of those are more special than others. Some are integration points, but absolutely some are about building go-to-market to give us more reach, give us more access to market. And Microsoft and PTC clearly play an important role, and you can see some other names on there as well. But they're all important. But I just want to pick out, I guess, 3 new ones where CyberArk is coming to fruition. So they've been a big access management vendor on the enterprise side, and now they're building their connector back to KeyScaler after the work we did, and we hope to come to market with them next year for a whole PAM for IoT offering, which, again, I think will be excellent news for us. Finite State, and I know this is a company that's very visible in the whole SBOM theater in terms of partnership, and we're looking to do as many joint things with them next year in terms of being able to provide an SBOM, not just create but attest an SBOM, as that's becoming very relevant as part of the executive order that I referenced earlier. And then I guess a new one, Accenture. So clearly, Microsoft and PTC and then Accenture is a key partner and sits at the top table, as does Microsoft, in many C-level tables at many large enterprise organizations. And we've won now 2 great opportunities with Accenture where they pulled us in. We're part of the bake that they're offering, and we want to build on that relationship and again, a testament to organizations like that who wanted to deal with Device Authority. At one level, we're much smaller, but we've got excellent foundational technology that allows them to deliver secure solutions for their customers. And again, we're part of the offering, and it's critical we have those relationships in terms of getting access to market. And just to elaborate on one, I've talked about VIPC before, so this is the Virginia Innovation Partner Corporation, just to give you an example of why this is important. So this was, I guess, our first toe in the water to partner with Homeland Security funded in the States. We're working with their IAM project. That's now moving onto an integrated stock environment they're looking to offer. We've now got sponsorship over in the U.K. I went to a headline meeting last week, and we were one of the vendor cohorts with a number of advisers with MPs and defense officials all looking about how they look to solve some of these challenges with sponsorship for cyber companies in the U.K. And then if you look at VIPC, how that's expanded out. We're now touching other organizations, we're starting to talk to them, because of the opportunity that VIPC has given us. So I just want to give you a good example of a land and expand that builds out those type of conversations. So just as I wrap up and pass back to you, Tim, I guess, just for everyone's benefit, we've been in the news quite a lot recently. There's been a significant amount of coverage about various pieces we touched. I just thought for headlines, if you want to look at any of these, you can follow up, you could read them. They're either related in Tern's website or on Device Authority's website, but there's a number of key pieces. And we've also brought out a number of new assets that talk to some of the use cases. And again, we're a security solution. Very important how we address the verticals. And the best way to do that is we boil it down to the vertical market and the use case we're dealing with customers to make it more logical and rinse and repeatable for other people. So I just thought I'd share some of those new assets that we put together as well. So that's really the end of my update. I tried to give you a flavor, I guess, of a number of things going on and hopefully, it was insightful and beneficial to you all. And back to you, Tim. No, sorry. Over to you, Jo, I do apologize. Over to you, Jo.

Thank you, Darron. Jo?

Thank you very much. I'll just bring my presentation up. Tim, does that show?

It does.

Perfect. Thank you. So thank you to Tim, thank you to Darron, and thank you for the invite to speak to you all tonight. I'm Jo Halliday, CEO of Talking Medicines. We've had an amazing year. 2023, we've made big commercial steps forward, which I'm going to be talking about. And we are so excited about 2024. And I really want to talk to you about the market, about ourselves, about how we're really facing up to a big year ahead. So before I start on the '23, '24, just to remind you on why Talking Medicines is relevant to society and to commercial upside and health matters. Health matters to all of us is a problem that has to be solved. Patients, you, me, all of us, we deserve the best outcomes from our medicines. Commercially though, there's a big case in point. GBP 250 billion is lost by pharmaceutical companies through medicines that are not taken as directed. They're not taken by the right person at the right time, in the right way. So it's called the adherence problem. So the area we're working in at Talking Medicines is an advanced data science company, has got huge social but also commercial opportunities. In health care, there's a big paradox, and this is the age of connectivity. You're going to hear a lot about connectivity and tech tonight, and yet, health care is still pretty disconnected. If you Google any stats about people taking their medicines, just adherence, 50% of medicines are not taken. Whether that's in the U.S., the U.K., worldwide, 50% is a pretty consistent stat. So that means that the people who make the medicines, the pharmaceutical companies, and the people who take medicines, patients, the dots are just not joined up. After all of these years, despite this connectivity, it still fundamentally doesn't work. So the pharmaceutical companies who make the medicines turn to their advertising agencies of note. These are huge global corporations mainly based in the States to solve that problem, and that problem is sold effectively through marketing in its broader sense. And I'm going to talk to you a lot more about that tonight. So Talking Medicines, just to set the scene again, Talking Medicines are an advanced data science company with AI. We commercialize the power of data science to the health care vertical. It's the only sector we work in. We have got people who understand medicines. We've got people who understand the sector. And all of our data science models have been optimized only for this sector. And that's an important point that will come through quite a lot because we train our own data science in-house. We have our own annotators. This is a really, really different market. If we sold fizzy drinks and tried to sell our data science to pharma, we shouldn't be doing it. It doesn't work. It's got many, many nuances, much regulation, and you have to understand this sector to be in it. So in terms of what we actually do, we revolutionize marketing for the health care agencies I've just spoken about with strategic intelligence on conversational data, so I'm just going to spend a second on that. Strategic intelligence, unseen intelligence, people talk about their medicines. They talk about their medicines all the time. Health care professionals talk to each other all the time about medicines. These are medicines are launched. We're not talking about the clinical space where it's highly controlled, regulated, and few people are talking in great depth. That's needed to understand the safety of the drug. But we're talking about the conversations that happen when a medicine is either coming up to launch and once it's launched. And clearly, this has grown over time in the digital age, but it doesn't -- a year ago, I would have talked to you about social media. It happens on social media. It happens in research groups. It happens in advisory boards. There is a lot of conversation about medicines. And what we at Talking Medicines do is we are experts, identifying the authors in those conversations. So classifying to make sure we understand who the patient is, who the HCP is, the health care professional, or increasingly, there are a number of digital opinion leaders and key opinion leaders. So we can separate the authors out within that very messy, unstructured, huge amount of conversational data, and we can make sense of it. And we make sense of it now against all sorts of data, so text-based data. I'm going to talk about our AI, which is largely based on natural language processing. But if you think about a ball of data with lots and lots of people chattering, our data science makes sense of that. And the reason we do that is to drive efficiency and effectiveness for the health care agencies. So why do they care? Why do they turn to Talking Medicines? They turn to us because as an AI data science provider, we can improve their productivity. We've proven that we can improve their productivity by 80%. So the current state is when they are working with their pharmaceutical companies on brands or if they're pitching or they're growing the business, they want intelligence. They have to understand how patients are feeling, how they're acting, what they're saying, how they're talking to each other, what the health care professionals are saying. And largely, they're extracting that manually and looking for clues about what's going on. We can improve that productivity by 80% by using data science models. Those models are trained in-house, they were already built, and we can run different kinds of data through it. So we increased productivity, massive for us. We also powered them up to win fights faster. So if you're in an agency, again, global huge agencies, you're doing 200 pitches a year, that is a lot of data that you've got to ingest and understand. Each time a team starts on a brief, they need to quickly understand the therapy area. They need to quickly understand the medicines. They need to be able to read the market, to find that unseen strategic insight that they're going to put into their pitches or their strategic work. We power them up to do that faster. We also help them retain and grow value with their clients. They, just like us, want to increase value, commercial value over time, so there's a virtuous circle between us and our clients. The more they win, the more we win, the more we go on to the next brand because there's a number of brands, maybe 50 or 60 brands, within our pharmaceutical clients. So we work together, and the principle of land and expand works for us as well as it works for our clients in terms of the way that we bring more business in. The more successful we all are, we help each other. So you could ask, why do pharmaceutical companies care? We help the advertising agencies, but why does pharma care that we actually help them? And really, we're coming back to my first point, poor medical adherence. So people not taking their medicines is not in the interest of pharmaceutical companies. Pharmaceutical companies employ their agencies because they want to keep people on medicines. There's a lot of regulation around the prescriptions, the amount of time people spend on medicines, but they have to keep the scripts. They have to keep people on the medicines that they should be taking for their health benefit. It is a lot more expensive to go and find new patients than it is to service and, in an appropriate way, keep people on the right medicines. So pharma has a huge vested interest. They use agencies so they've got an arm's length and they've got complete control on the compliance, the safety and the legal aspects of marketing. Those agencies have a very, very tight relationship with pharma. And what I'm saying to you is they both care about the data we've got because we've got the hidden insights that neither of them can unlock. And you're going to hear a lot about this. It's not because of a lack of data. As you can imagine, there are heaps of data. There's too much data. You could say that all are drowning in data. What they can't do is make sense of. And it is really because of data science that we're able to work at scale to make sense of vast amounts of data that can come from different parts. It could be from social media. It could be research transcripts. But you can see the intelligence from combining them both and using data science models. It's not rows and columns anymore, it's about data science and the tagging of the data that reveals the clues. So agencies care and pharma companies care. Pharma companies care enough to spend GBP 30 billion on that marketing that I've just spoken about. Then with the agencies of note who are largely in North America, Manhattan, some in Philly, Philadelphia, they are spending GBP 30 billion on this problem, and it's the GBP 30 billion that we are addressing in this first market that we're servicing. We found a sweet spot with marketing agencies, midsized, where they're looking to be more aggressive and more competitive than some of the largest holding companies, and we found great traction in 2023 from becoming the AI partner for those companies. We found other markets within health care marketing agencies, so research. Ones with the research bank have been really, really interested because we can combine such vast data. They're sitting on so many reams of research scripts, but they can't bring them together. We can do that through data science and the same on data communities. They can work within the agencies or they can stand alone. We now have some significant partnerships with data communities where they mine vast amount of information, particularly about health care professionals, but they don't understand the intelligence that, that is actually telling us. Now remember, this is a very ethical sector. We do this legally. We do this ethically in terms of commissions, anonymization where we need to do that, particularly around patients, but we are able to decode this data that sits within the GBP 30 billion that pharma spends with agencies. And that makes us a catalyst for growth because we can actually help the agencies achieve higher margins than they would without our data science. And as the industry moves, and you're going to hear more about this, it's moving towards being data first. This is really, really important for 2024. So just talking about 2023, what's new from us in 2023. For us, everything is about curated data, so we take large volumes of data and we curate it. So through our data models, we effectively cleanse it, clean it, get the absolute gold dust. So we have a better curated data, and we have that because of our advanced data science models. I spoke about it a minute ago, we curate in-house, we annotate in-house, all of this is proprietary for us. So we believe that we've got the best curated data coming from the best data models. We added DrugGPT this year, which is a large language model that we fine-tuned, and it fits on the curated data. So whereas a ChatGPT will go off and search the web and come back, might hallucinate, might tell you the truth, might not, this is very, very different. For a sector that is so ingrained in regulation and inertia and trust, it's really, really important we got a walled garden around data, and DrugGPT sits on top as an easy way to interrogate it. And it's gone down an absolute treat with our clients because the agencies, because they're not data geeks, they're not data people, they just want to get the data insights quickly. And we're able to do that through our bespoke DrugGPT. So we've been working at really high levels of accuracy, 95% plus. We can find the voices amongst the authors I spoke to. So we've come away from only concentrating on the patient. The patient is at the center of the equation, but they are so influenced by health care professionals and opinion leaders, and this whole industry has really grown up around health care professionals and opinion leaders. So we commercially can really monetize our business by being able to read the data for the different authors and how they sit next to each other. And we've opened up new lines of business where our customers can bring our tech effectively into their solutions. And again, that really has significantly moved us forward in 2023. So in terms of customers and revenue, where have we got? We have moved forward significantly. In terms of our product, we deliver our product through PatientMetRx, which is an online platform. We have a SaaS sticky pricing metrics sitting behind it, and everything that we're looking for is rinse and repeat with our agency customers. It's been absolutely essential for us to be on the ground this year in the United States. We feel it is now our home. We feel that we are able to operate with all of our clients who are predominantly New York City, Manhattan, but also Philadelphia and the home of drug manufacturing, which is New Jersey. So we've made big, big inroads in terms of scaling that operation. We ourselves are spending a lot of time in the U.S., and our team are ideally placed back in Scotland, in Glasgow, where data science talent is very accessible, of a very, very high quality and of about 1/3 of the cost to hiring data scientists in the States. So we find this combination between our front office in the States and our back office in Glasgow, a 6-hour flight between, really, really efficient and effective. And we've made big inroads on making sure we're known within the U.S. We brought in a number of clients. We can't talk about client names from a confidentiality point, but we've bought in clients this year who have a significant turnover. So again, I mentioned land and expand. This is so important to us as we make inroads. GBP 13 million of that GBP 30 million is in the customers that we already have. Those clients are really, really hard to onboard. It takes us longer than we'd like, but we are bringing that time down because we've got data transfers in there, we've got legals in there, and we've got the whole pharma vigilance. So bringing a new agency customer onboard is very, very tight with the pharma company they work for. There's a lot of work on our end on the legal and compliance side, but we're good at it and we're bringing them all quicker than ever. So the more master service agreements we can get, the more we know that we can open up the gates for land and expand in 2024, and we're really happy in the sense we have really good momentum on this. We're also landing and expanding in the agency holding companies. They're the big companies. There's a number of them, about 10 of significance, where they can have between 60 and 100 agencies. So for us to make inroads into the holdcos, again, is evidence that we can hold around and we can grow with it. Agency hold companies have the option of building their own. Agencies are not good at building their own. They're not product builders, they tend to bring in super people, but those people will then move on. We go in and convince them that actually partnering is a far, far more efficient and effective way because they get our whole data science team that way, and we are their AI partners. So we're happy that this year is about growth. It's about SaaS stickiness, and it's really opened up for 2024. I just wanted to give you a sense of the scale of the data that we're curating. So we're curating data for our customers. We own the process from the ingestion of data. The data may come from customers. It may come from social media APIs. But the data is there. We're owning that ingestion. We're pulling it in. We're owning the curation, which I've talked about, through our data science models. And we're owning the intelligence in terms of the way that we can bring that together within PatientMetRx for our customers. So we have taken the whole thing and we're really scaling that now in terms of the data that we can bring through. From a U.S. data point of view, which is pretty much where all our customers are sitting, we've processed 103 million raw posts and pieces of conversation this year. Of that, about half of it has led to curated insights, so we don't always find insights just because we've ingested. The data models have found 56 million curated insights from what's come in, and that's across 15 million authors. Now those authors could be health care professionals, they could be patients, but we're being very specific about who we're looking for. We're not just giving them back everything that's out there, we're looking, we're hunting for certain people, certain therapy areas, certain insights. So 15 million authors is a huge number, and that means we work across a number of therapeutic areas. Just to give you a sense of the medicine areas we work across, cardiology, oncology, immunology, neurology and rare, are the buzz words really for 2024 in terms of the pharma industry, and that's where our strength is, not surprisingly, because the agencies come to us with those drugs. There's about 7,000 brands represented in this data. About 15 new medicines come to market each year. We absolutely have the big blockbuster and the specialty drugs within our data, and we'll continue to build this out as our clients bring us new challenges, new medicines and new therapy areas. I just wanted to try and bring this just to life for you with just a top line case study. This is a real case study, a paid piece of work that we've worked on and we're still working on. So a top 10 pharma company has briefed an agency, who is a top 15 agency in the U.S., about their drug, which is diabetes drug. So the problem that the pharma was facing, despite this drug being a lifesaving drug, it's still not taken as prescribed. And their challenge to the agency was to come up with why is it not being taken and how bad is the problem. So we applied our advanced data science and AI, specifically looking at what patients we're talking about and specifically putting in measures. So we are able to measure change over time. And what we found was the key topics that people were talking about, the most interesting part was that the adherence, the taking of medicines had got worse. So we measure agreement states over time, and what we could see is over 2 years, it had significantly got worse, and we could see exactly why that was. So what the agency then does is they develop their creative program, their solution for the pharma company based on our intelligence. So they've put a program together that addresses the points that we pulled out through the intelligence. You can see how we're working hand in hand. As a result, the agency has been retained by the client for their creative campaign, and they have a campaign that they're developing at the moment. And we, as their data intelligence partner, continued to track the change over time. We can test their creative, we can test their messaging and then we can see whether that messaging works. So this is a really good case study, just to give you a sense of it is a real partnership between us and it has commercial stickiness. We need to be around for the long term because they need to keep measuring what is happening in the conversational data. So looking ahead with 2024, important to hear what we think but also important to hear what customers are saying. So Publicis, one of the large holding companies, they've got 56 agencies. This is one of the thought leaders out there. There is many. And [ Andrea Palma ], what she is saying resonates because she's saying there's no shortage of data. She's basically saying we're drowning in data. It's exhausting. There's too much data, but we need to make sense of the data. And that's really, really powerful for us because we're in the right place doing the right thing for an industry that really needs to get to grip with what is in the conversational data, real-world data, about taking medicines. So that's come from Publicis. We then say, okay, what of analysts? This is an investment analyst saying in the public domain, "What's happening with data?" And what they're saying here again, data is plentiful, but informed decisions are actually quite rare. And that, again, is because of the drowning in data. The second point is really important. Data automation, you could argue, is really easy. Data automation for health care is hard. It's hard because there's compliance. There's regulation. There's an appropriate use. And that's what I was talking about with onboarding. If we weren't specifically designed for this sector, we would struggle with that second point because we wouldn't be able to process in a secure and appropriate manner. So all of the learnings that we have as a life science company are so, so important, and it gives us a big competitive advantage. It puts a moat around us because we can process it in an appropriate way because we totally understand the way it's used. And that makes us stand apart, makes us very, very different to others. Also, we have chosen to operate at the highest value of AI. So if we have a tech tool and we wanted to commoditize it, we could chuck it out there. We don't do that. We work with high-value clients. They've got very high value needs because it's coming from pharma and it's coming from very big programs, and we are delivering a high-value product. So this is all about us making sure that we keep our pricing up and that we monetize this market to its full. We've talked about the GBP 30 billion for health care marketing agencies. There are many other markets that we can then extend to, all within health care. But those are agencies, first of all, and we want to make sure our pricing is right at the top end and put that moat around us as a specialist. So this is a proof point for us on all we've been saying and during this year. The team have worked so, so hard. And on the 3rd of October, we won a major award for artificial intelligence and analytics. The publication is called PM360, Pharma Marketing 360, a leading publication. But the key here, the absolute key, is we did this in front of our customers and the pharma companies. They were all there, all the logos, and we beat IQVIA and [ Epson ], who are multimillion; in IQVIA's case, billion-pound companies. So what we've actually achieved is acceptance, acceptance in a group who deal with each other time. We've come over, we've landed in the States, and this is real validation for our team that we've made significant inroads. And what it means for us commercially is we want to drive the inbounds as much as we love doing the outbounds. And it has made a big, big difference, which is why we're so excited about 2024. So finally, my last slide. Just to summarize, we basically talked about pharma needing patients on drugs. There's that, GBP 250 billion at stake. There is a GBP 30 billion spend right now on marketing that is addressable for us in terms of the way that we work with agencies. We can see that customers, investors, the industry is recognizing the role of data and the role of AI and data science within that. But we are the solution. We are the solution for health care. And as we go into 2024, we will capitalize it by being the choice, the AI partner choice for health care agencies on conversational data. We're really excited by what's coming, and we know that 2024 is going to be a really, really significant year for us. Thank you. That is me, and I'll hand over to Alastair.

Right. Well, good evening, everybody. Hopefully, Tim, you can see my slides.

Yes. Great. Thanks, Alastair.

Fantastic. Well, to everyone who doesn't know me, my name is Alastair Williamson, and I'm the CEO of Wyld Networks. So I've got a small agenda here. I'm going to be talking about Wyld, what we do, but I'm going to do a big deep dive on Wyld Fusion and just talk about what Wyld Fusion is, how we use Wyld Fusion in our network and how that monetizes the offer that we put to the market and also talk about Wyld Fusion as a stand-alone IoT platform. So it's a slight digress from the presentations I've been doing before, the reason being is I'm putting out our quarterly reports in about 9 days' time which will go through Q3, what we've done in Q3, all the new wins we've had in Q3. So today, I just wanted to go reemphasize what is the Wyld Network and then do a deep dive on Wyld Fusion. So the Wyld Network, as you know, we're a virtual satellite operator for the Internet of Things. And if you look at our products that make up the solution, we've got Wyld Connect, which is our modules and terminals. And we talk a lot about Wyld Connect modules and Wyld Connect terminals and all the orders that we've built up over the last few months. But Wyld Connect, as you can see on the left-hand side, is a PCB that basically gets integrated into a sensor, and the Wyld Connect terminal is a stand-alone terminal. And both of those devices either send data to a terrestrial network, if a terrestrial network exists. And if there's no terrestrial network, those devices collect data from sensors and sends the data to satellites. Now the satellite obviously collects that data, sends that data back down to a grand station. A grand station passes that data into Wyld Fusion. Now Wyld Fusion is a satellite and terrestrial IoT platform and basically provides the device onboarding, the provisioning, the security, fracking, data management and payments. And then Wyld Fusion basically provides that data that we've collected from those sensors to our customers. Some of our customers have got analytics platforms so they can visualize that data. They have sensor apps, they can visualize the data on their apps, and then they take an action. And that action could be in agriculture to increase irrigation because there's not enough moisture in the soil that we've measured or to reduce irrigation or to go and inspect pipelines, if there's a view that there's potential corrosion coming along so they can go and fix the pipelines. But what I want to do today is focus on Wyld Fusion. So I think I said it back 2 years ago on a Tern presentation that Wyld Fusion is the platform that really turns sand into gold. And earlier on today, Darron was talking about IoT platforms and he referenced 2 of the large IoT platforms, one was from Microsoft and the other one was from PTC. But Wyld Fusion itself is an IoT platform, and I'll just explain to you why we developed it. So when we were putting together our complete end-to-end terrestrial and satellite IoT network, we needed an IoT platform. And so we looked around the market. Our intention was to go and basically just buy a platform, a third-party platform. But we went out and had a look, and there were no platforms that supported both terrestrial IoT connectivity and satellite IoT connectivity. So we basically developed the platform ourselves on the back end of a product called Fusion, which is a service bus that we actually own. So we've developed an IoT platform, and I do understand when we went to market why there was -- there wasn't a satellite and terrestrial IoT platform available. Mainly because in the terrestrial world, the gateways are static. The base stations are static, and the sensors send data to a static base station. So it's relatively simple. But when it comes to satellite connectivity, well then the base station is actually 700 kilometers up in the sky, and it's traveling at 24,000 kilometers an hour. So you've got a very fast-moving base station. So it's understandable why all of the IoT platforms that are out there in the market really just focus on terrestrial IoT, and no one had developed a combined satellite and terrestrial IoT platform until we did so. So I'm going to talk a bit about the fact that the product that we developed, and it's basically vendor agnostic. So we support all types of sensors, whether they come from Fujitsu, whether they come from Siemens or Schlumberger. We are totally agnostic to the type of sensor that's deployed in the field, and that was really important. A lot of these IoT platforms are specific for different types of sensors. Also, when we developed the platform, we developed it as a multi-operator platform. So we support all platforms, all operators. So in the satellite world, we support Lacuna, Astrocast, Omnispace. In the terrestrial world, we support all LoRaWAN, 5G [ and the IoT ] networks, whether it's Cellnex or American Tower. So our platform is multi-operator. And the 6 key things to the platform, and I'm going to go through them individually. And then I'm going to talk about the fact that we utilize Wyld Fusion as a platform for our own network, but it's also a platform that we can sell into the IoT platform market, which is a substantial market. So there's the use of Wyld Fusion in our own network, and there's also the ability to market Wyld Fusion as a combined satellite and terrestrial IoT platform in a much, much larger market. So if we look at the sort of the combined satellite and terrestrial connectivity piece, so we've developed a single platform for both terrestrial and satellite IoT connectivity. And that graphic there basically is a graphic that shows one of the satellites and its location and is used for tracking and prediction because obviously, it moves. But what we're seeing now is that we're engaging with a new set of customers that have already deployed terrestrial IoT devices. We're actually dealing with one company in Brazil that's got over 1 million terrestrial IoT devices already in the field. They have an IoT platform, but that platform doesn't support satellite connectivity, and they want to roll out Wyld's satellite solution. So what they're looking at doing is migrating all of their terrestrial IoT connectivity devices on to Wyld Fusion and then start to roll out the satellite piece, utilizing Wyld Networks and the offer we've got in the market at the moment. So we're seeing customers that have existing terrestrial networks looking to migrate their terrestrial networks on to Wyld Fusion to future-proof themselves and to give them the platform that supports their existing terrestrial networks and their future requirements that they're acquiring through Wyld for their satellite connectivity. But of course, they -- we will monetize that. They will pay to migrate all of their terrestrial IoT devices on to Wyld Fusion through a subscription plan. And the whole concept for them is to provide a quality of service to their end users. So their end users, they don't care whether the data comes over a terrestrial network or a satellite network, but they want one portal, one view, one window into collecting that data and then using that data to make informed decisions. And so one part of the end-to-end solution that we've developed is focused on security, and Darron talks a lot about security. And device authorities are a real world leader when it comes to security. So to give you an example, ExxonMobil put out an RFQ, and the first hurdle you've got to get over is demonstrating to them that you have an end-to-end secure solution. And that's from the sensor to Wyld Connect to the satellite to the grand station to Fusion and to the solution, which is basically the customer. So we've developed security from sensor all the way through to the solution, coupling Wyld Connect and Wyld Fusion from the physical layer all the way up to the application layer. And it's critically important in being able to demonstrate this to win some of these large RFQs that are currently out there at the moment that are demanding end-to-end security. Now the terrestrial space, this security is quite well defined. It's quite well known. We can implement it. I wouldn't say it's simple, but it's understood. But what we've noticed and understood is that when it comes to satellite connectivity, there are some real airgaps in the security that need to be fixed. So we've been developing and have now developed the security -- enhanced protocol security profiles to fix those airgaps so that we can now go to our customers, talk about providing a complete end-to-end secure solution for both terrestrial connectivity and satellite connectivity. Also talking about scalability and extensibility, and I'll get to the scalability bit first, which is critically important in being able to deliver an IoT platform that can scale. Now Fusion as a platform, as a service bus when it was first developed, was developed in conjunction with the U.K. government, the Home Office and also the police authorities and the railway infrastructure authorities. So we have developed Fusion with a lot of history of scalability. So our platform can scale up to the tens of millions of devices that can be provisioned and onboarded onto the platform. We've built in some real high availability, redundant service and clustering and data mining to ensure that we have a platform that's readily scalable and demonstrably scalable for the market. And when it comes to extensibility, one of the principles that we put in place in developing Wyld Fusion was extensibility. And extensibility, if I can use another word, it's about building a platform that you can actually commercialize as a stand-alone platform to a customer that wishes to build new applications on top of it. So it's a buy to build. So yes, we use Wyld Fusion as our own platform, but we built it with a view in mind that we could monetize Wyld Fusion as a stand-alone platform to sell it to customers as an IoT platform where they can actually buy our platform and then build upon it. So supporting multiple providers, multiple protocols, our micro service architecture and totally standards based. I think one of the key things about Wyld Fusion is the ability to monetize. And as you know, with the Wyld Network and our satellite IoT solution that we're delivering at the moment to our customers, we generate revenues from selling terminals and modules. We generate revenue from -- that's a fixed revenue, and we generate revenue from access to Fusion. But we also generate revenue from data where our customers are paying us up to $5 per device per month to actually use that data for us to deliver that data to them. So Fusion is very important in actually monetizing the offer that we put to the market. And so we've built into Fusion the ability to actually build your subscription plans. So as an example here, it's a standard plan of up to 10 users. They want satellite and terrestrial, including an organizational dashboard, satellite tracking and device configuration. They can choose what plan they want. They can choose a monthly plan, an annual subscription plan. And there are literally tens and tens of different types of subscription plans they can subscribe to. They can subscribe to it through Fusion, through Wyld Fusion itself. But also what we've built into it is not just a standard subscription build plan and payment plan, but we've also built into it the ability for some of our smaller customers and then actually, in fact, some of the larger customers to actually use a credit card facility. And so that allows them to basically build up individual plans. They can put add-on features. If they start to run out of data, they can actually start to request additional data. If they want to deploy more terminals or devices into the field, they can go through Wyld Fusion and actually pay for those features on top of their monthly subscription. So it's a very, very powerful tool to make sure that we can actually give our customers a clear way of ensuring they can actually build a subscription, pay for a subscription and commoditize that $5 per month per device that we've deployed into the field. Now device provisioning is really quite important because the platform is being built to allow our customers and users to rapidly deploy their devices into the market. So when I talk about deploy their devices into the market, to actually provision their devices once they're deployed into the fields. So we've built into the system the ability to basically provision your devices through Fusion and to provision your devices based on the profile of the device and be able to provision thousands of devices in a very short period of time. So I'm talking in minutes to be able to provision those devices. And so once these devices are provisioned, they can then start to send data. With a lot of the tools that we've seen out there, the device provisioning has been extremely painful. It takes an awful lot of time. So we've enhanced that to try and, a, reduce the amount of time it takes to provision a device so it's ready to send data, enhance the user experience but also ensure that we can actually get revenue from the data as quickly as possible. The second thing about doing this, our device provisioning piece, is supporting end-to-end security. So a lot of solutions out there, they provision the device in the field where we are actually provisioning the device through Fusion. So we're encompassing the whole provisioning piece within the whole end-to-end security piece. And my first point that I've got there about driving end-to-end connectivity ecosystem. As I said earlier, we are device agnostic. So we don't care if it's a Siemens sensor, a Fujitsu sensor, a Schlumberger sensor. What we're doing is we're building profiles for all of those sensors. So when you provision the device, you don't need to build a profile. That profile for that device already exists. And what we're going to do is to build that ecosystem into a developer forum so that all the manufacturers of sensors that want to see their sensors being sold will build their profile inside Wyld Fusion. So when the customer wants to provision that device in the field, you can just select a Fujitsu soil moisture sensor. The profile is already built into Wyld Fusion, and we'll be using the sensor manufacturers to build up that ecosystem, that huge database of devices and their profile. So you'd just be able to drag that device and profile of that device and deploy that device for this profile already embedded in Fusion. Now if we look at the deployment, we've got 3 types of deployment of Wyld Fusion. There's Groundlink. And Groundlink is mainly for small, medium-sized businesses. So it's a managed service. So we host Fusion. We host Fusion, and we've got a containerized platform that allows multiple customers to build their own instances of Wyld Fusion. Here's an example of a dashboard. This is an organization. What I see, it's got about 115 active devices on it. It's got about 5,788 messages left on its subscription plan. So this is the portal that the customer can actually see, and he can look at how much data he's got left. So if he starts to run out of data, he can order more data or change his plan. He can also look at actual passes so he can see the window in which he can actually deliver data. I think this device is probably in London. As you can see, there's a 4-minute window from where he can actually deliver data to the satellite before that satellite passes over. So that's a managed service instance of deployment. But when it comes to larger customers, they want to host both the Groundlink and Fusion on their own premise. So this is an on-premise deployment of Fusion. So our larger customers are really looking at deploying Fusion within their own infrastructure. So it's not a managed service. They're managing the service themselves. So exactly the same thing you can see from this customer. They got 4 departments. They got 54 active users. That's people on the network. And they've got about 10,145 devices in the field, and they've got about 12,765 messages left remaining from their subscription plan. So these better quickly start to get back on the network on to Fusion, start to order some more data. We also have developed a white label version of Fusion because we do have customers -- and this is one in Brazil. It's Constanta. It's a customer of ours. And they're a reseller. And so what they want to do is to be able to resell the Wyld Network solution, our products, hardware but also our data service to their customers. So we've white labeled the solution for them. So their customers see Constanta as their first -- as their provider of the service rather than Wyld Fusion. So there's 3 types of deployment: managed service through Groundlink, enterprise solution for some of our larger customers and a white label solution for our resellers. So in respect to the product road map, as you know, we were -- or we are using Wyld Fusion as an infrastructure, as a solution. And that's basically utilizing Wyld Fusion as our own platform to support our own network to provision, on board and charge our customers for using our service and our data. So we're using that platform ourselves as our own solution. But also, I talked a bit earlier about buy to build. We also have got another revenue stream that we're going to be launching, and that is basically launching Wyld Fusion as a platform to other companies that wish to build their own application on top of Wyld Fusion. And that will be a licensable product we will offer. It will be provider-agnostic, and it will be an extensible platform. That is that our customers can also build their own applications on top of Wyld Fusion for their own requirements. And the other thing we're doing, in one of the slides, you may have seen the output from one of the devices, which was basically just raw data. We're building into the solution our own business intelligence as an add-on, which we will then sell to our customers, which will visualize that data. So it will allow the customer that doesn't have his own analytics tool to build his own scripts within Fusion to do his own data analytics and visualization on the platform itself. So coming back to Wyld Fusion as an IoT platform, yes, we developed it for our own network. And we've started to deliver. As you know, we started to deliver products in October. And as you've seen from some of the slides, we've got a lot of data actually running through Wyld Fusion. So we're utilizing it as our own platform. But as I said, we're also looking to monetize Wyld Fusion as an IoT platform. And just to give you an idea of the size of the market, today, the size of the IoT platform market is about USD 8 billion and looking to grow to over USD 17 billion by 2028. It's a very large market. And when you look at that market, the top players in the market are Siemens, PTC, SAP, IBM and Microsoft. And that's why Darron mentioned PTC and Microsoft as IoT platform vendors. But they currently support terrestrial IoT solutions. They don't actually support satellite connectivity, satellite predictions, satellite monitoring, satellite collection. They don't support any open standards for satellite providers. At this time, there's only Wyld that's actually developed an IoT platform that addresses both satellite and terrestrial IoT connectivity. So in summary, we continue to use Wyld Fusion as a platform to support the Wyld Network. That's our terrestrial and satellite IoT solution. We started delivery of hardware products in October this year. We're delivering data through Fusion at this moment in time, and that's starting to grow quite significantly. But we're also looking at another revenue stream where we'll be monetizing Wyld Fusion as a buy-and-build IoT platform supporting satellite and terrestrial IoT connectivity. So hopefully, that's giving you an insight and an update on where we are and happy to take any questions.

Well, thank you very much, Alastair, and thank you very much, Darron and Jo. We'll now move on to the Q&A session. A number of people have been typing in questions. Thank you very much for those. I know that Ian and Darron have answered a couple of those. So you can see those on your Q&A button, hopefully. But I was also seeing quite a few questions in advance. So I'd like to go through some of those. I'm trying to get a bit of structure to it. So I'll go in the order of the presentations and come to you first, Darron, if you don't mind. A number of sort of specific questions on product and things that we can get to in a minute. But the question asks, can you give us an idea of how many -- what sort of proportion of sales are going directly to end users and what proportion of sales goes through partner channels?

Yes. Well, our priority is always to try and build them through partners. And so it's an increasing -- I think any start-up, when you -- in the early days, you look for product validation and most of the time you're handling a lot of those client relationships directly. But as we go forward, and indeed, this year and as we go forward, that diminishes quite significantly. So we have a number of partners, especially in North America. At one level, you need systems integrators. Another level, you have things like Microsoft Marketplace. And then we have also other PKI vendors like Entrust and other, [ often ] prime deals, [ Essentia ] prime deals. So all of those are good examples of different types of partners that own the customer relationship. And we are part of the technology solution.

Okay. You mentioned Microsoft. The questioner understands that there's -- Microsoft are promoting an automotive solution, which includes device authority and several others. Is that something that's already in commercial use?

Yes. So they're building a program that focuses on automotive, and actually, it's our technology using what's already available in the marketplace. So we don't have to do anything. So it is commercially available. But they're building effectively a whole go-to-market program as they see automotive as a growth sector. They're attending some high-profile events next year that they're planning for, and they're inviting us as part of their proposition. And that's really down to, one, the partnership that we've evolved to date, winning the award. That's got a significant higher profile with Microsoft. But also, I think we will -- in terms of automotive, we've got good use case and referenceability on that side, too.

Excellent. Excellent. You mentioned a lot about AI in your presentation. Is there a genuine market pull for AI functionality? Or is it something you feel you need to do to be ahead of the curve?

That's a really good question. Well, I would say there's absolutely a convergence of the AI market. It's almost all encompassing. I mean even you hear it from Jo's presentation. And so there's this fusion going on, as people refer to it, between IoT and AI. I think it's all encompassing. And being able to make use of the data and provide insights is just a logical extension really of the data people used to collect from the devices that we enable to be trusted.

Excellent. Next question asks, are you making good progress with U.S. government critical infrastructure protection and provision in the U.S.?

Yes. Well, I tried to highlight that in my part of my presentation. I think the [ VIPC ] program initiative was the first part of that. That's renewed. That's expanded. That's now taking us into other examples like Capital One Arena and other areas. And often, these are critical infrastructure projects. So it's not -- and some of them are commercial organizations. It's a long road working with some of these big defense contracts, if that's what really the question was asking. You need the right level of sponsorship and market access. And what was encouraging, as I mentioned last week, just having that now, we started on that road in the U.K. with the National Cybersecurity Centre being present. And it's another good avenue for us.

Excellent. I know a number of people on here look at the SPARK Matrix for IoT. The question was just wondering, do you know when the next one is going to be published?

In the next -- we are told over the next couple of weeks. They control it because it's their IP. They provide it to their paid for customers. They gave us an early sight of it, but they are in control of that. And they'll announce it when they're ready, but they've told us a couple of weeks.

Okay. A couple of general questions to finish off. What do you think is going to be the next exciting development? What's going to be the focus over the next few months that you might be talking to us about in the future?

Well, for me, I think the most exciting thing that we can do is continue to add new logos and get on our SaaS platform. That -- if we do that, our revenue grows. But more importantly, we all feel really good about it, and we get tremendous growth and referenceability. I mean we've got a great dashboard now internally, and I love the global view of what that looks like with the devices and the companies that are online. And just to see those numbers lock it with some of the new logos, that would be -- that would delight me because that would make a lot of people very happy in many ways.

Excellent. And then I think a lot of that came through in the presentation. But to finish off, the question asks, what do you perceive to be the biggest risk to this future success of Device Authority?

Well, that's good question. I noticed somebody asked -- I think there's definitely a market, and the market is evolving. We've talked about AI as being part of that. But somebody asked about Keyfactor. Are they a competitor? The market itself isn't just Device Authority. There are a number of other, what I would call traditional IAM players who on that SPARK Matrix are more bottom left who don't have our IP or our patented technology. But competition is one of the threats if we don't advance fast enough, stay ahead and have the level of funding that many of those organizations have. I mean Keyfactor is owned by Insight, and their valuation was huge. And a lot of that is off traditional legacy revenues, not of new revenues, which is what you would categorize us at. So the market -- the competition landscape and having the right level of funds and having the ability to execute, really a combination.

Well, thank you. And I know you've got a number of ideas in all of those areas. If we now move on to Jo. Interesting presentation. I think amongst the group, quite often the feedback I get is that there's a lack of understanding of Talking Medicines and what you're offering. Could you just sort of summarize very quickly how the industry take-up has been on what your sort of elevator pitches to them that you're offering something? A lot of that does come through in the presentation, but I know some people here do still struggle to get the USP of the business.

Okay. Yes, I mean, we make sense of data. That's the easiest thing. Very, very messy, unstructured data that's talked about, conversational data, we make sense of it. So our pitch is very much you have a lot of data, it's on a lot of silos, we make sense of it. And the reason we make sense of it is because you'll make money off of it because ultimately, it will either save you time in your agency or it will make you more money because you can add an AI dimension to your offering. So we make sense of data is probably the easiest way to describe it.

Absolutely. And I know that you've been obviously working with a large number of the big marketing companies, particularly in the U.S. How are you finding those relationships developing and the commercial traction? Is that going along the route that you expected? Is it taking less time or taking longer?

Yes, it's speeding up. That's definitely in a sector that isn't used to risk. So you can put the agencies and pharma in the same bucket because they work with each other. So it's easiest to say, let's just wait and see, than it is to say, let's be brave and be an innovator. But we've hooked innovators. So really, really important to our strategy was to get in with the innovators. The biggest thing that has happened this year is people's understanding of AI. So a year ago, is it going to be important? Are we going to need it? Do we really need to put machine learning in? Do we really need to understand this data? A year later, there is absolutely no doubt that every single customer has got to have an AI strategy. So the conversations are becoming easier. The momentum is becoming easier. And clearly, we need to sell very clearly to our role in it. But the market has changed substantially in terms of the underlying understanding of what AI is in its earliest stages.

No, I can appreciate that. The question I finished off with Darron, what do you think is the biggest risk going forward to the progression that we all want to see with Talking Medicines?

So our biggest risk has been exactly what we just outlined. Can customers come on board quickly enough? So in some ways, we've answered our biggest risk because the environment has changed, and our product has dialed up and got better. And we can move into prediction, which is the big, big frontier that we really want to move towards, which is really where AI comes into its own. So we really see that the biggest risk is the one that we're on top of right now. And that's why we look forward to 2024. Because we think we're riding on a big momentum with a very good product. So that's where we are.

Presumably, the platform and the product is very scalable without the need for particularly significant increase in resource?

Yes, absolutely. The models have been built in the learning. We continue to learn, so every time we put those millions of data points through, our machines learn. And it's all in-house. So yes, the scale is there and ready, and we can absolutely take that to multiple customers.

Excellent. Excellent. Okay. Alastair, a question here. The question says, Wyld Fusion looks great. Thank you. He has a slight concern that the direction has changed away from the core satellite modules business. I know that's not the case. Do you want to just explain? I know you wanted to explain about Fusion tonight.

Yes. It's not a change in direction. Clearly, our business is working as a virtual satellite operator. But as I say, we've had people come to us, terrestrial providers that have a terrestrial IoT platform but want the satellite connectivity piece from Wyld. So they're looking to take all their terrestrial connectivity that exists at the moment, migrate it to Wyld, which we can then make money from, and then basically deploy the satellite capability on the same platform. So they have one platform for both their terrestrial and satellite solution. There's no cannibalization in the business model. There's no defocus on what we're doing. We're basically upselling on what we've got.

Excellent. Just looking at a couple of specifics on products and things. How is the 5G element progressing?

5G elements, so we've got beta chipsets. So we're playing around with beta chipsets at the moment. The -- Qualcomm is really the guys that will commercialize the chipsets. And we talked about potentially chipsets being available in Q4 from Qualcomm. But I suspect the chipsets from Qualcomm will really be available sometime towards the end of Q1. So they're basically the long pole in the tent in respect to getting that connectivity solution out.

Okay. There was obviously a lot of interest in collaboration with SpaceX and things there. Is that progressing nicely?

Yes, it's progressing very well.

Excellent.

That's progressing very well. We have a clear path of where we want to get to. And we have significant ongoing discussions, both technically and commercially.

Okay. And going to an announcement that you put out recently, the work that you did for the European Space Agency in collaboration with Eutelsat and Thales. Can you just explain a little bit more as far as you can what that was all about?

That was really interesting project. So when we've delivered our part of the project to them, what these guys want to do is they want to -- so at the moment, we send data to a satellite. That satellite then travels, could be 30 minutes until it sees a ground station, then sends the data to the ground station. So there's latency. There's latency between when the satellite gets the data to when it can send the data back down to ground. So what they want to do is they want to create what is basically a mesh in space. So we send data to a satellite. There, we've basically developed a piece of hardware and software that's going to be put into the satellites. So data will go to those satellites. And our device will then basically send the data to another satellite that's very close to the ground station so that the data latency is reduced. So time between sending the data and collecting the data is reduced significantly. They're also using it for command and control so that they understand where each satellite actually is. So it's a command and control and a reduction in latency. So just to give you an understanding, you take SpaceX, they're sticking up thousands of satellites. So they're putting thousands of satellites up to get some real-time broadband. [indiscernible] broadband. But wouldn't it be great if they could reduce the number of satellites they stick up in space? It'd be fantastic. If we can have the mesh capability to reduce the number of satellites they need to get the latency they need for broadband, wouldn't that be great?

Well, it will be billions of dollars saved.

Yes.

Excellent. Thank you. It's often been claimed that Wyld has got first-mover advantage in what you're doing. Do you think that that's still the case and still that to exploit and you're still progressing commercially as you hoped?

I still believe so. We've got first-mover advantage. We started shipping product in October. Data flowing through Fusion. So we're really in a good place at this moment in time.

Excellent. We see that. A couple of questions asked, are you working with Device Authority? Is there any sort of synergy between the businesses and things you can do together?

Well, there's obviously synergies between the businesses. It's quite clear when you just -- when you listen to the Device Authority presentation, you listen to the Wyld presentation, particularly on Fusion, particularly on the end-to-end security piece. So yes, there are definite synergies. Interesting enough, we've got a number of common customers as well. If you have to look at the logos that Darron showed and read the press releases that I put out, we've got a lot of common customers. But what we have done is actually put together a little R&D plan to look at Wyld working together with DA. But there are obviously synergies across both businesses.

Excellent.

And I hope that became apparent in my discussion on Fusion.

I think it did. It was just -- I've had a couple of questions come through this evening, just people wanting to clarify that. But that's great. Thank you. And the final one, threats. What do you think is the biggest risk to the future for Wyld?

Well, I think in the short term, the things that keep us awake at night, I guess that's the question you're asking, and I think that really comes down to supply chain and production. So we've got a significant order backlog, and we need to be shipping product. We've started to ship products. But the big thing that sort of keeps us awake at night is supply chain and ensuring we can build enough product to ship that product to our customers and keeping them happy.

Excellent. Well, thank you very much, Alastair. I'm very conscious that we're now over 1.5 hours of this session, but we've got a few general Tern questions that I think people would like to have answered. Just looking at the list here, question says, is there a specific reason FVR are not presenting tonight? Yes, one of time. We wanted to keep you here for a manageable period of time, not put everybody in front of you so that we're here all night. But rest assured, I'm sure FVR will be presenting at a future event. A number of questions for Ian, Al on Konektio. Is there anything more you can say on why you decided not to invest further at this stage in Konektio?

We have to assess our investments at all times. And we've thought for quite some time that Konektio isn't a company with a venture scale return. It's very much equipping -- putting equipment into factories. And it's not a software solution. It's [ guys advance the things ]. And so we have -- and they've also not been meeting their forecasts and so forth. So we've come to a conclusion that we maybe just let that continue. We will still have a stake in the business. But we think that perhaps it's not the right place to put our limited resources right now.

Understood. A couple of questions regarding the mechanics of the loan that was announced. And GBP 500,000 has been drawn down. The question says, can you explain this in simple terms as possible? Because they don't understand the RNS language. Now I know that's a tough one, but could we have a quick overview from either Ian or Al?

I'll pass this to Al.

I'll give it a go here. The facility is -- as said in the RNS, it's a GBP 3 million facility. So there's up to GBP 3 million that we have the ability to borrow against. We've drawn down in the first instance GBP 500,000 from the facility, which the terms of the facility have been negotiated. And part of the process that we designed into the facility was to help Alastair -- to also forward protect the price of Wyld shares. So we use Wyld shares as collateral for the loan, and that they've been put into escrow. So those are shares that are static until the loan is paid off. So if we borrow again against the facility, which is available to us, we would put more Wyld shares into escrow and protect those shares by utilizing the facility to provide the capital to make an investment, for example, a follow-on investment in Talking Medicines or FVR or Device Authority. So the facility is sort of a revolving line of credit where we have the ability to borrow against it. We have to pay it back. There's a grace period for 6 months that we only pay the nominal interest on the amount drawn down. And then after 6 months, we start paying back the principal. So it's a good facility for us to use. And then the other feature that's in the loan is warrants. So we issued warrants to the loan provider at 1.5x the value of Tern shares at the time of the drawdown. And those warrants, if exercised, will generate capital for us because they're at a premium to what the warrant was issued at. So that premium, in fact, becomes a profit return when exercised. So that is, again, an interesting feature of this facility that has enabled us to stay in our corner when we needed to and provide us with a capability to look forward to potentially using it again if needed. So it's a good facility. It's revolving credit to an extent. The terms reflect the interest rates of today, which are onerous. But they are interest rates that -- our market. So we haven't gotten outside of market. So I hope that provides...

I think that sort of summarizes it. So with the first GBP 500,000 drawdown, I think the first repayment of principal is next month. And then it's over 12 months, I think.

Yes.

Okay. Thank you for that. A question for -- probably for you, Ian, given your background and experience. The Board in making a decision on further investment or the right time to exit, how do you actually judge that? What are the key things that you're looking at, particularly with an exit, in judging that now might be the right time to seek the exit?

Well, we can't control these things. We have to assess the information that we've got and the opportunities we would have and so forth. We certainly shouldn't be chasing fire sales to raise money. We should always be trying to improve the values of our portfolio or the values of the portfolio companies. So it's not an easy equation. We do get a lot of information. The Board, which now makes investment decisions, were advised by Bruce and by Al and by the executives in the portfolio companies of where they are. And we take a note of that. So as long as these companies are doing well -- and I think you've heard tonight, 3 of our portfolio companies are doing spectacularly well in terms of developing their businesses. Thus, we should be happy with that. I wish our share price reflected that. But our job is to basically increase the value of the portfolio. And when an exit happens, it happens. You can't -- you very rarely can foresee things.

Indeed. But when an exit does occur, and obviously, it is the strategy of the company to put exits in due course and at the right time, we see it on the bulletin boards, and there's lots of speculation about return of capital. Can you just reiterate in Board terms the Board's thinking on that?

Do you want to pick this up, Al, or shall I do it?

I think what we said before is still the feeling of the Board and the company is that if and when we have an exit, and just to add to Ian's discussion of exits, we also rely heavily on the British Venture Capital Association to provide us with the metrics that are currently in play with regard to values and multiples and hurdles to show a return to investors. So taking that into consideration, the view -- if the view was that we would reserve some for the business and the discussion with the shareholders was about 10% for the business, the rest operating capital. But from a return to the shareholders, the intention would be to have a onetime special dividend issued on those proceeds. Now if tax treatment changes, we'll reevaluate that. But the current...

Hopefully not.

Hopefully not, but who knows. But the current belief is we would provide a onetime dividend to distribute a large portion of the proceeds back to the shareholders.

thank you. Just to put to bed once and for all a recurring theme that I see in questions that have been asked, and I've had this from probably half a dozen people, management buyouts. Are you looking at a management buyout? I'd love to be explained to me, having done public company [indiscernible] for 30 years how you would achieve it. But...

I can honestly say this is not something we have ever, ever discussed. Apart from reacting to all the rumors and innuendos and so forth, that is not -- that's just not possible. It's not in the cards.

Well, people have got to recognize with a scheme arrangement, you do need 75% of shareholders to vote in favor to take the thing out entirely. So that would have to be at a price. A couple of very final questions because it's getting late. Ian, one for you. Are you happy that the restructured Board, management division of responsibilities is working well, is efficient and appropriate for the company going forward?

Yes, I think so. I mean this is something that I've been quite familiar with. My first in venture -- in venture capital was with a VCT. And the Board, the non-execs made the investment decisions. And the advisory -- the management team made their recommendations. And -- but the decisions to invest were made by the Board. And actually, I recall one particular occasion where I objected, and I won the day in terms of an investment decision. The company then went on to list. So I think that was quite a good decision. But that's -- I think this is quite a normal situation. So we've got non-execs now who do the investment decisions, advised. And we obviously take very, very, very much into account the experience of Bruce and Al.

Yes. Well, thank you very much. Look, I think these are very exciting times for Tern. I'd like to thank Darron, Alastair and Jo for fantastic presentation this evening. We rattled through the questions. I think we've gone through everything, and I did promise those who submitted questions that we would endeavor to do that. But if there is anything else, please get in touch, [email protected], or give me a call. Contact detail's on all of the announcements. And we'll try and answer them. So thank you very much to everybody for joining us this evening. And thank you very, very much for those who took the time to present. Thank you.