Unith Ltd (UNT.AX) Earnings Call Transcript & Summary

[Audio Gap] On the Zoom today, we have Executive Director, Scott Mison; Chairman, Sytze Voulon; Rakan Sleiman, who is General Manager of Digital Humans and Product; and Ivan Dumancic, who is GM of B2B. The webinar should run for about 45 minutes depending on questions. And I will pass the floor now to the gentlemen to walk you through the story and the latest achievements. Sytze will start the slide pack.

Sytze, do you see this?

Good day, everybody. Also on behalf of everyone here at UNITH, a very warm welcome at this Q4 webinar. And thanks for taking the time and effort to join. During the last webinar, I think I said exciting times. I think I can reiterate that statement, not only exciting times here at UNITH, but I think globally in the markets that we are active in. I think today, more than ever, companies are looking at how can we integrate artificial intelligence in our day-to-day operations. And I think the real change in the past, sort of in the past quarter is that where earlier companies were looking at how can we make use of artificial intelligence, Digital Humans, how can we use them on top of our existing processes. Businesses are changing. Businesses are realizing that the vast amount of large language models that are available means that they can reiterate the way they work. UNITH takes a very specific place in that. We try to still with all that smart data that companies now have at their fingertips. They can do something with all the data, they can change their processes. And we try to still deliver the personalized and the human touch to the interaction with either, it can be employees, it can be clients. So anybody that needs information from the company. I don't think I need to go into very deep understanding what UNITH is. I think most of you, long-term investors, know what we are doing. Our newer investors, I think must have had a good look at well. So where we are really is the conversational part of anything to do with artificial intelligence. We're building these agents and we try to sort of drive or ride to the wave of artificial intelligence that is now developing in the world. The Conversational AI with the Large Language Models, you've see that exploding as well. Just look at ChatGPT, look at Google Gemini, I mean, quite impressive what these large language models can do. We're just tapping in to all that available technologies. And you see sometime in sectors education. Obviously, education is interaction, interaction is what we do. Healthcare, healthcare because that's where we have some very large launch in customers. But entertainment, finance, but actually any business from small size businesses to large enterprises have a need for improving the way they work with use of artificial intelligence. We do that through basically 2 divisions, the consumer business, the B2C, our subscription business and our Digital Human business, which is sort of the design of digital humans and develop the right characters. With that, I'm happy to hand over to Scott.

I'll just go quickly over the corporate overview of UNITH. Currently, our market cap is sitting around $10.36 million with a share price of $0.007. As probably most are aware, we recently did a capital raising of $1.85 million, which obviously increased the shares on issue. We also have some listed options, some current listed options that expire on the 31st of March and some performance rights, which mainly go to or they all go to our employees at UNITH. Now part of that capital raising that we've just completed, there are some options and some shares that will be put to resolution to shareholders for some unlisted options and a group of listed options, which we need to comply once -- if they're approved and we will apply for listing on the ASX. And then also the Directors will participate in that placement as well, which is part of the resolution, which the Directors are putting in $100,000. As you'll see, there's a top 5 shareholders there. For those that are aware, we've just released our new website where there's a new top 20 on there, post the capital raising. So that will give more of a detail on who participated and what the top 20 looks like at this point in time. But the top 20 holds around about 36% of this issued capital. Next slide. Thanks, Rakan. So Q4 '25 financial highlights. So this quarter was the best quarter that UNITH has had for the last 3 years. Our cash receipt, our total cash receipts for the quarter amounted to $1.6 million, which was 19% up from -- compared to last quarter. And if you compare that with the quarter this time last year in Q4 financial '24, it's up 31%. So you can really see that the drive in what we're doing is increasing in the sales in both the subscription division and the Digital Human division. With that, we've had a total for the financial year of 2025 of $5.3 million, which again is up 7.6% on those from last year. As I mentioned, this is the highest quarter that we've had for the last 3 years since the Digital Human technology has been deployed. So I just want to reiterate that although we have 2 distinct divisions being the Digital Human division and the subscription division, about 60% to 70% of the revenue derived from the subscription division is used with the Digital Human technology. So with that, it's a growing trend. So post the capital raising, we've got a pro forma cash balance of around $2.2 million before costs. And as you will see, the net operating outflows have decreased down to $140,000 for the quarter. Now we've taken George, who has just been announced as the CFO. George and I have worked hard in the last 6 to 9 months to really look at what cost savings we can look at throughout the whole business to really drive not just the revenues, but on the cost side to deliver and really focus towards cash flow positive. So overall, the 2025 was a great financial year. And '26, we're going to extend that, increasing the revenues, and we're really looking at that cost savings on the operating side. So I hand over to Rakan now.

Thank you, Scott. So I'll spend -- hi, everybody, first of all. I'll spend a bit of time talking through a lot of the work that we've done throughout the previous quarter from a Digital Human platform perspective in a way that really justifies and in many ways, fuels some of the successes that Scott has just shown. So as Scott mentioned, I think -- and even going beyond just the previous quarter, a lot of the work that we have been doing in many ways, while it's giving us traction now is really setting the foundations for us to have a much better fiscal year '26. So what I'll spend some time talking through are specifically some of the product initiatives that we've been working on throughout just the previous quarter, which have, let's say, the objective of, one, securing new business, new customers that we work with; two, making existing customers that are already using and paying for the digital human platform, making them successful and growing with them; three, and this is very key to our growth strategy for fiscal year '26, enabling partners to be able to extend our arm and grow with us as well. And then finally, and Scott just touched on this, but a lot of the product work that we do actually intends to reduce our operational overhead so that we can grow with partners, make businesses successful, win new businesses without adding too much technical overhead on us as people, which naturally are the most expensive resource that we have and valuable resource. And then we've also spent quite -- and I'll spend quite some time talking through this, but we've -- we undertook some quite foundational changes from a more brand and go-to-market side. So you'll see a very new fresh look as it relates to our brand, and this is reflected on our website, and I'll do a quick walk-through of the website, if I can navigate the slides well enough. But like brand and brand infrastructure. And then we've also spent a lot of time thinking about, and this goes back with operating very effectively, how can we build in a lot of automations that connect to our Digital Humans that allow us to go to market much more effectively than we've done in the past. And then finally, we spent a lot of time in enabling our partners, and I'll speak a little bit to this. We obviously have a lot of this that feels a bit internal, but a significant amount of effort, and I'll talk through this in the following slides, is supporting some of our more strategic customers. And one of those strategic, I don't like to call them as customers because they're an internal customer, is the fact that we do have direct-to-consumer Digital Human apps that Ivan will talk through it a bit. And we do spend time making sure that the Digital Human platform fuels their growth because at the end of the day, as Scott mentioned, the revenue effectively you can count -- you can bring it all the way through to the Digital Humans effectively driving some of that or a significant amount of that. And then finally, I probably had more meetings in the last quarter with partners, prospective customers and also our team with people in Australia. And this is intentional. We've been running some campaigns in Australia. We've been doing some networking coming back from when I visited Australia about 2 months ago. So we've been investing a lot in actually building our brand in the Australian market. So I'll start with the overview from a platform perspective, literally features functionality that are now available that were not available 4 months ago. Our audio synthesis pipeline is significantly more rich at the moment. We've made it much more modular, which means that people and many people do, when I say people, customers already work with ElevenLabs, which is, let's say, the gold standard in audio synthesis. People can bring their own ElevenLabs voices into our platform. You can even choose from ElevenLabs voices if you're creating your own Digital Human. We also -- and part of this is related to our large corporate that we work with, the large corporate that we work with. We've, let's say, brought in real enterprise-grade audio stability and security through a direct integration with Azure. This also fuels a lot of the Digital Humans that our direct-to-consumer apps are using. And this is because our direct-to-consumer apps are globally, they have usage from all over the world, and we need a very stable, very fast way of delivering audio to the users. And then also more and more, you see people building their own audio synthesis engines, and they want to be able to use their own audio synthesis engines. So we've made it able for anybody to basically bring in literally and connect to work they've already done from an audio AI perspective. And I look at this as it complements this ability to bring your own face, to bring your own knowledge, to bring your own workflows, you can bring your own voices very easily in the platform. Time and time again, we've seen people using Digital Humans quite happy, but kind of saying we have a bit of a problem, like I don't actually know. It feels like a black box. What are people talking to the Digital Human about. We've launched an alpha version of our Conversational Logs app, which means anybody can find a Digital Human and go to a specific moment in time and see literally word for word, what the conversation looks like in a way that is protecting the privacy of the user speaking to the Digital Human. I say anybody, this is a premium feature. So let's say, our customers actually have access to this, paying customers have access to this. We've also introduced conversational prompt templates a lot of the feedback that we've had is not everybody is as skillful as you guys when it comes to designing the conversation in Conversational AI. So we've made it very easy now that when people get started, they can select from a drop-down, I want this Digital Human to act as a sales specialist and you get an out-of-the-box ready to go Digital Human that can act as a sales specialist for your product. We also -- and this is very much connected with a lot of the stuff on our current website, but our Digital Humans are now very well connected to third-party applications. We support any third parties that have MCP servers, which basically means that a Digital Human can -- you could say, hey, Hal, which is the guy in the bottom right, can you please e-mail Sytze telling him that we've just done the investor presentation and went really well and perhaps summarize some of the questions that came from it. And Hal would basically pick up that, summarize this meeting and then send an e-mail to Sytze summarizing everything that happened. So they become really actionable Digital Humans that can perform actions. Again, it might seem simple, but it was one of the things that lots of people were asking us about is like we would like to be able to easily change the background of a Digital Human to put it more in character and make it more represent the role of the Digital Human. So we've added this functionality. Again, it's a premium feature that's available for API users to easily change the background. And then finally, and this is something Ivan will mention a little bit before, but we've now, let's say, properly productized the ability to make Digital Humans extremely operationally efficient by leveraging what's called a semantic cash. In simple words, this means the Digital Human has lots of conversation. It gets very, very cheap to actually operate the Digital Human and very, very fast. Switching away from what we've done to what we are doing and plan to do. In many ways, when I look at our platform that we have now, it really does feel, I would call it like feature complete, right? It covers 80% of the stuff that we see time and time again. And the Digital Humans can do all of the things that people want them to do. We're switching our focus to what we call internally more foundational components. And what this means is we want to be the fastest, most commercially viable and stable Digital Human product in the market. Those 3 bold items, fastest, commercially viable and stable is where we believe you will win. Why? Because anybody who comes into this space, the feedback we have is it's not stable enough. It always falls offline, it always breaks, not ours, other people that are coming into the space. It's way too expensive to get some early traction on it. So it's not commercially viable, and there's always latency issues. We believe we have -- and I'll show a brief demonstration of what it looks like. We believe we have the solution to this, and we believe it's quite imminent. We are also going to make a push to really go through a bit more of a product-led growth initiative. For people who maybe don't know the makeup of our team, we have 2 salespeople. They're great salespeople. We would love to grow without needing to significantly change the sales footprint. So we want to ensure that the product is much better at actually converting users who come on to the platform for free through a trial period and then it kind of self-drives them to upgrade. We've also -- and I've just seen -- I spent a lot of time reading some of the research and development work that we do that is much more low level, but we are wrapping up a lot of this stuff because we're planning to give our Digital Humans a facelift so that they look better, just really just to bring us up a notch on that front. And then finally, and this is something we plan to launch soon, is a stand-alone enterprise-ready solution that really intends to target higher compliance use cases. So the big focus here is on truth. The big focus is on when a Digital Human says something, you can believe it. And this is the byproduct of some of the work we've done with some of our larger, more strategic customers to date. Finally, I'll try and play this missing audio because I wanted to do some voice overlay on it. This is one of our favorite Digital Humans. Internally, we call her [ Ico ]. This is me talking with her in this new proprietary streaming engine, you'll see that I type in. And you will see that when she responds, it's extremely, extremely fast. So here, I'm saying, wow, you're really fast. She responds almost immediately, "Frankly, I'm proficient in providing fast and accurate responses." Here, I say, you're the fastest in the world, and you could see she's almost immediately responding back with anything that I type in. You sound cool. "Thanks. I'm able to maintain a friendly tone." In this -- this is a 30-second video, there's like 6 turns of conversation. It's almost immediately, and we are doing it in a way that's proprietary to UNITH. So all of this is actually our technology. And I go back with intended to be extremely fast and commercially viable, which means operationally efficient, which means a huge competitive advantage for us. And it's something that, as I say, it's imminent. We have internal demos. We're using it. We're testing it. Our select customers that we are working with are getting early insights into what this looks like, and we're getting feedback from them. We've just launched a new website. I think we announced this -- if we haven't announced this overnight on my side, we will announce it today. We soft launched it on Monday just to get some early feedback on it, iron out some wrinkles. When I look at the new website, I see something much fresher, much brighter, much more calling to people to actually use UNITH. I see something that's much more aggressive on a product standpoint. I will quickly come over here. You're hopefully seeing this. You will see that the Digital Human in many ways, front and center in pretty much all of the pages that you go to. There's a Digital Human that is really there to drive usage. And what's really great about these Digital Humans. So for example, in the solutions page on the lead generation, Zoe is sitting here. She's calling you to speak to her. But Zoe is actually there to do what it says over here, turn conversations into conversions with interactive avatars. What that means is Zoe's job is basically to understand who she's speaking to, why she's speaking to them, capture their information and ask them if she would like to connect them with us at UNITH. So she bridges that gap between people who come to UNITH and actually our team over here. So she's fully, fully connected. There's a very extensive, let's say, AI-generated workflow that sits behind that. We also want to give a lot more flavor to our product. We want to push on things like it's actually quite fun to clone people. We want to push on this personalized element of what it means to make a Digital Human on the basis of Sytze said right at the start that we really do focus on this personalized element on top of all these AI solutions that exist. So new website is live. I would encourage everybody here to use it. It's new. There will be a few little glitches here and there. We're always looking for feedback, e-mail in that feedback directly to us, and we will make sure the right people pick it up. Just a few things that I want to make sure I don't forget to say. It did feel like with our existing websites, people land there and leave and don't really know what UNITH do. Like one of the things we want people to get out of it is they stay 10 seconds, 20 seconds, they at least know clearly what UNITH do. It's very difficult to find UNITH if you don't know who UNITH are. This is a major problem. The website has been designed in a way that makes it much easier to enter into the UNITH universe. We've used -- we've done a lot of work on how people look for these kinds of solutions, and it's subtly embedded throughout the whole website. As I mentioned already, it's intended to be a conversion tool for us to bring business to us. And then finally, and I didn't touch on this, when people go through this website, the messaging is different. We are strategically positioning ourselves in the -- positioning UNITH in the no-code AI automation ecosystem, which is huge and continues to grow. I won't go into a lot of this stuff. You guys can use it. It's publicly facing, but a huge, huge kudos to our teams who've put a lot of effort into this work and specifically our growth lead, Paul, who has really driven a lot of this initiative. Touching on a lot of this stuff. We've spent a lot of time outside of the website even building out those fully automated, fully connected Digital Humans that intend to activate inbound opportunities that come to us. So the avatars, the Digital Humans, these interactive avatars on our website. They're live and they're also live via e-mail outbound workflows, and I'll talk a little bit about this in a second. But we have integrations with Zapier, make.com, n8n. If you don't know what these are, I encourage you to look into them, but these are the leading automation building tools out there in the market, and we very, very, very seamlessly integrate with these tools. And again, just to reiterate, what this means is if we run ads on LinkedIn, Meta, any other channels, they can be the landing where people land on the ads will be a digital human that is essentially they're having a conversation with and it's doing this early triaging. Just to paint the picture a bit, if I was to speak with Zoe, once you speak with her a little bit, you give her some contact information, what happens is this contact information could go to HubSpot, which is our CRM, could go to other CRMs, or Google Sheets or wherever you want to store your customer database, goes into HubSpot. And then right after that, you get a notification in our internal tool, which is Slack, which says, hey, this person from this company has just registered after speaking with the Digital Human and it notifies us internally. And then this person gets an automatic e-mail that's created with a Digital Human inside it that they could then interact with. So it's a beautiful workflow, and it's really intended to showcase a lot of our functionality as well. Quickly moving on client projects. We continue to work very closely. I highlight these 2 because they're the bigger ones more strategically, much very good visibility around it. Alliance for Public Health. They've been out. They've been promoting Digital Humans pretty much everywhere, very high-profile places, including the European Parliament, showcasing our Digital Humans. We got great feedback from them. We spend time supporting them, but they are primarily now self-sufficient, which is great, validates a lot of our platform. There is -- the primary challenge ahead remains distribution, how do you take these Digital Humans and give them to people in need so that they can actually speak with them and how do you make visibility of that. The large pharmaceutical that we've been working with, this project has been very, very successful. The first phase is completed. One of the anecdotes was them saying that this is the quickest project that they've ever experienced in any pharmaceutical environment. Their team are extremely surprised about that. We are now planning for Phase 2 of the project. While there's no formal approval, we have verbal go-ahead to say that based on what's been delivered so far, we will be looking to move into the second phase of this project. So we're extremely excited about this. I'm extremely wary of the fact that it's not going to be fast. In many ways, they said this was the fastest project we've done, and we were there saying, this feels slow for us because they move at a very different pace than what we can move at. So like this is something that we will continue to work throughout fiscal year '26. Finally, strategically, we've mentioned this before, we really want to grow through partners. We've spent a lot of time expanding our partner ecosystem. We want to do this because it lets us enter into new verticals, new niches without adding, let's say, capital on our side, capital expenses on our side, but leveraging and not -- and the fact that we lack the in-house domain knowledge and leveraging theirs to grow. We have active partnerships across different use cases, some work with a partner who specialize really in airport solutions. We have in logistics, human resources and talent automation. We've got a lot of -- we've got -- and this is actually the partner highlight on the right. Specia AI, they focus a lot on back-end enterprise automation. We've started working with them as of end of June. And really, they are -- I think this link -- when this deck gets lodged, you'll be able to click on it and look at their website, but they really do intend to integrate a human touch on top of their automations that sit behind in well-established enterprises already. And I think just to recap what I said, this just highlights the fact that we could go into quite niche verticals, working with trusted local operators, while we focus our efforts on the core platform that I mentioned earlier, making it the fastest, making it commercially viable and making sure that it remains stable while making it that fast. Yes. And then just a few things to highlight, like we launched the partner program maybe 3, 4 months ago, not too long ago. So it's early. A lot of these collaborations are early -- are just starting right now. And we expect the commercial impact on this to progressively materialize throughout the upcoming fiscal year. With that, Ivan, I've gone a bit longer than we expected, but I'll hand over to my colleague, Ivan, who spends his time taking Digital Humans to consumers.

Thanks, Rakan. I'll try to save up a little bit time for everyone going quickly through the UNITH B2C division update. So yes, first of all, good morning, good afternoon, everyone. As many of you know already, the UNITH B2C division focuses on building the consumer applications. And we are the ones that are monetizing these consumer applications in the first place. So how do we do this? How do we build all of these applications? So we have -- to date, we have 5 different applications in 5 different content verticals, which are built on top of the UNITH Digital Human platform. This is done in a way that we leverage the UNITH API connection between the Digital Human platform and our own B2C content management system. This, in a way, enables us to create and manage over 1,700 Digital Humans, which we have in service today. At present, the B2C division operates, as I said, 5 different applications, which are available in 21 different languages and right now are live in 36 different territories. All of these applications are being brought directly in front of the customer through our in-house Google marketing activity. We often emphasize on this as owning this Google marketing activity in-house gives us both speed, but also very importantly, gives us control in the marketing execution. Over the last year, we have definitely seen a very strong traction with these Digital Human applications. In the last quarter, the Digital Human applications were responsible for 65% of the B2C revenue, which is quite a strong growth indicator. If we know that in the previous year, the participation of the Digital Human applications was about 45%. And a year before that, it was just 9%. So we do see quite a strong traction, and we do recognize the potential of the Digital Human applications, which are taking over a bigger and bigger chunk of the revenue that the B2C division is generating. Rakan has spent some time talking about the platform development. So I would like us also to take a few minutes and to look at how these improvements on the platform level are actually impacting the UNITH -- the B2C products that we offer. So Rakan, next slide, please. Over the last quarter, especially, some of these new functionalities became available to us. And I will use the opportunity to give you 3 examples of how we are using these functionalities in order to directly impact the user experience and the product capabilities. The first one being the Zapier integration. Rakan mentioned Zapier. It's one of the leading automation tools out there, which enables which enables Digital Human to connect to, I believe, it's now over 7,000 different third-party applications out there. What it does for us, it basically enables our product. It enables our digital humans to go beyond simply answering the questions. With this, by using the APR tool, we are now able to give the Digital Human ability to take performed actions. When we look at how we use it in the product sense, well, a very good example is that we are now able to give additional more meaningful and measurable user journey for the user. A good example is our kids' stories product, which now supports measuring, for example, a progress. It supports unlocking personal achievements. So we can give a Digital Human control over things that are happening outside of the simple conversation answering the questions, which a user is asking to Digital Human. Another good example is the upgrade of the voice providers library, which also Rakan mentioned. We have also implemented this functionality into the B2C products. And we are primarily using the new multilingual options, which are -- at least in our experience, they are much better aligned with the regional languages, regional accents. And based on the consumer feedback, we believe that they provide much better cultural fit. As I mentioned before, our products are available in more than 20 languages across more than 30 countries. So this kind of localization is especially important in these international markets that we operate in. And finally, I would mention the last one, the semantic cache. Though it's a very technical word, it's actually a functionality that directly impacts the user experience, especially for the B2C products, which are offering the user kind of a repetitive content. So if you look at the e-learning application or we look at the, again, children's stories application, a lot of times, the answers that Digital Human gives to the user are repetitive. Peter Penn or Cinderella, the stories that Digital Human is speaking are always the same and they don't change a lot. This functionality enables us both to save on the resources, save on the cost, being more cost effective when we are delivering the service, but it also directly impacts the user experience because the answer that the customer is going to get from the Digital Human is going to be significantly faster than before. Next slide, please, Rakan. So lastly, what I would like us to give you an update on is our ads agency expansion and maybe a highlight of some of the future prospects that we are looking at in the B2C division. I believe in the last quarterly or even the quarterly before, we also mentioned that alongside our product work, we are also exploring the expansion through different service models. The first one that came the most natural to us was the ads agency or the marketing agency as a service offer. We have recognized the potential that our in-house marketing team has over the last 2 years, more than 60% of the marketing activity that we do has been brought in-house. And we have recognized the quality, but also the external partners or even the competitors have recognized the success that we do have with our in-house marketing. So basically, we talk to ourselves, why not to offer the marketing services that we anyway do in-house also to the third parties or to external clients. It's very important, I believe, to mention that this ad agency as a service that we are running, we are now running it completely within our existing B2C team, meaning no extra overheads are being needed to be introduced in order to offer this additional service. In the last quarter, the agency actually already started generating pretty significant revenues. Q4, I believe we have reported that we have generated over AUD 30,000 in revenue. And this, particularly, we see as quite a positive signal that there is a demand for this type of services and for this type of expertise. So we are looking to expand this activity even further. We already actually have additional products and additional clients in the pipeline with who we are working on launching marketing campaigns in countries like Oman and Bahrain. So you can recognize here, there is a bit of overlap with the countries where we also have our own campaigns. We have our own marketing activity. So we are leveraging this expertise and this experience that we gain from our own activities in order to build this additional revenue stream for us, but also deliver the value for the clients. And finally, to conclude, I would like to emphasize maybe once again that what you believe -- what I believe you also have seen throughout the presentation multiple times is that all of these B2C activities and all of these digital human applications that we create and that we bring directly to the consumer are heavily underpinned by the UNITH Digital Human platform. We see this as a strong advantage if we look at -- if you compare ourselves with -- especially with the competitors inside of the B2C domain because we are pretty much the only one who has our own products. Majority of our competitors are licensing the content and licensing the products which they bring to the consumer. We, thanks to the Digital Human platform, are able to build and own our own products, which I believe is very important. And it gives us the capability to basically turn this technology of our own into the measurable revenue and measurable and positive business outcomes. Thank you. I think that's all from my side. So we go back to, I believe, it's Scott now.

All right. Gentlemen, are we ready for some questions?

Yes. I was going to say we had one summary slide, but it's a bit of a recap. And I think to be fair, it's worth perhaps just jump in straight through to the questions.

Fantastic. All right. There's a few here directed to you, Rakan. So Mark has asked, Rakan, have the updates to our platform increased the sales conversion rate to existing and new customers?

The simple answer is yes. I think in general, one of the pains with anything from a product development standpoint is what you do today, you realize the benefit in a few months time. So a lot of the new things that come out, we are lucky our direct-to-consumer division get to immediately recognize the value, and then we spend time getting it adopted across our customers. So we expect to see the impact from now essentially.

Thank you. Secondly, what is our unique selling point of our TH platform compared to our competitors? How are we selling this in the marketplace?

Very good question. I think we have this discussion almost every day. I would summarize where we win threefold. One is scale, the ability to create Digital Humans on demand. Second is connectivity. Most people who have -- who try and bring in live interactive avatars don't have them able to action and actually perform tasks. And then three, and this is a big one, and it comes back down to our operational efficiency is that our pricing model is extremely, extremely commercially viable and competitive. And the reason why I say that is because of the way our system is set up, we really don't care how long a conversation is. And many use cases that our customers have, think of it like as training or an interview with, let's say, a Digital Human conducting an interview. They don't want to worry about the conversation being 5 minutes or 10 minutes, which is how everybody bus. The way we are set up, we say have a 1-minute conversation and have a 20-minute conversation is perfectly fine. We don't care about that. And that is a huge, huge competitive advantage that we have.

Thank you. Third question from Mark. Rakan, how do you intend to drive traffic to our new website?

We have many, many ideas and many plans. One, we are going to -- one, we're going to run some ads, which we have from a lot of our learnings, a much better idea of who we will be targeting and with what message. And the website is driven so we can drive people to specific solutions on the website. So we will use ads. We will also do a big push for bringing much more organic traffic to UNITH. We have an SEO strategy that we are working with. And we also have a strategy so that LLMs out there start to reference UNITH. If people ask like what's a leading digital human technology out there that the actual LLM would recommend UNITH. And then finally, and this is a little bit something that I was in 2 minds whether I should put in the slides or not is we are going to put a lot of effort on building a UNITH community that will let us outsource not only how we manage our interactions with users, but how we enable users to promote UNITH and ask questions about UNITH without us being involved. Yes. So it's -- yes, I think we have like a 3 or 4-pronged approach, and a lot of this will become evident over the next few months.

Thank you. We have a comment here from [ Avey ]. Excellent work, guys. We are certainly moving in the right direction. Thank you, Avey. I will pivot now to the questions that were submitted in advance. Can you tell us more about the progress with ISO 27001 implementation?

Yes. I was also not sure if I should put that in the slides. It's progressing. It's not as fast as we would like because it's not as simple as you would -- as we would hope. We have a weekly meeting. We have objectives that we work towards every week. We dedicate about 2 hours, which is not -- we would love to dedicate much more on it, but we dedicate about 2 hours a week working on it. And we are looking to start next calendar year in a place that we can start considering getting the audit done. I would say that it is in parallel. It's related to the Phase 2 of the large corporate that I mentioned earlier, right? So it's kind of following a time line that in many ways is influenced by what's coming out of the work that we are doing with the large pharmaceutical that we're working with.

Fantastic. Thank you. UNITH seems to be employing more automations. Could you give me some examples?

I'll reiterate it. I think going through our website now, we'll show a lot of examples of the automations in place because the Digital Humans there are intended to be -- to have an automation behind them. But maybe I will give one story because I think it's a great story, is we obviously have sales opportunities, and we obviously lose some, more than we would like in general, feels that way anyways. But these opportunities, when they get lost, they go into a closed loss bucket and there's reasons for why we didn't close the opportunity or why they didn't choose us, et cetera. But we ran a full automation that basically went through that. It's not a huge list -- went through that and automatically crafted an e-mail, created a digital human and sent the digital human to the people that were -- that we lost. And in there, we ended up converting a couple of customers because they were blown away that a Digital Human could be sent to them automatically. They click on it. They have a conversation. The conversation is basically like, hi, Ivan, last time we spoke, you were talking when we spoke about these few things, you didn't feel the technology was right, whatever it was. And then it basically drove through a full conversion with them requesting a meeting with us and then saying, if we can do this, we want to be able to do this. So that's an example of like a real tangible true story that was a success, and we're happy about it internally.

Fabulous. Thank you. A stated focus of UNITH has been the formation of partnerships like that just announced with Spectar. Are these genuine partnerships or are the UNITH client relationships? What sort of revenue streams could flow from these partnerships?

They are genuine partnerships in that there is paperwork and an agreement in place between both organizations. We've invested time. This is where the time gets invested in making sure that both businesses share in many ways, similar goals. And then it's on a case-by-case basis, how we structure the revenue that will be generated through it. But I see, let's say, where we discuss strategic partnerships, the way I see it is that there will be at least about $30,000 per client that's like generated per client that is added to -- that they have brought in to the customer -- to the UNITH ecosystem, okay? So we see significant revenue associated with partners.

Thank you. Your presentation mentioned that recurring revenue is now being achieved -- rather. Your presentation mentioned the recurring revenues now being achieved by UNITH's B2C division. Can they be grown from here? And if so, what CapEx spend is required to realize this growth?

I can take this one. So yes, definitely, in short, the answer is yes. We do expect the B2C revenues to continue progressing. And our goal for this year is to diversify the B2C revenues. So we spoke about the ads agency as a service, which we definitely see as a growth vector and the revenue contributor for this year. And next to it, obviously, we continue the monetization of the Digital Humans applications within our subscription business model that we have been doing so far as well. Speaking about the necessary investment, already in the March quarter last year, we have invested over, I believe it was AUD 50,000 into the infrastructure, to be able to basically support this growth. So any further investment that is needed to keep the revenues increasing is primarily going to be the marketing investment, which is necessary in order to bring these products in front of the customer.

Thank you. Last question here. Your FY '26 priorities include an expansion into key verticals like airports, HR and entertainment. Can you provide some color around your CapEx requirement to deliver this priority? And what geographic regions are being targeted?

Yes, I'll take that one. So our expansion plan, like we don't plan -- we, as UNITH ourselves, don't plan to specifically focus on any specific vertical or niche. We plan to do that by working with partners. And the reason for doing this is largely because, one, we don't have the domain knowledge in-house. And two, we want to remain focused on our core, which is the Digital Human technology itself. What that means is there should be little to minimal expenditure required for us to move into those example verticals and use cases that you mentioned. Where the investment goes is finding the right partners and building a great relationship with them and enabling them to grow. And this is -- we are already operating in this way. So there shouldn't be any additional spend needed there.

Thank you, Rakan. I'll just check that we don't have -- I know that we're almost at the hour. Okay. Just one last question here from Robert. What do you anticipate revenue to be for FY '26? Is this expected to substantially increase from this point onwards?

Yes, I'll take that one. Yes. So we've just gone through, obviously, our budgeting process. With the growth of obviously, the Digital Human division and those initiatives that we've put into the subscription division, we're looking at a growth, I would suggest, well, going from this year, it was about $5.4 million in revenue. We're expecting that to be in the range of between $7.5 million to $7.7 million in revenue for the next financial year. That's been very conservative on the basis of not winning thousands of clients. We've been very, very conservative on what we're budgeting for.

Thank you, Scott. Thank you so much, everyone, for attending. If you have any further questions, e-mail me at [email protected]. Thank you so much for your support and your interest in UNITH. We will now conclude the webinar.

Thanks, everyone.

Thank you.

Thank you. Bye.

Thanks.

Ceryl, can you conclude the webinar, please? Gentlemen, I think we can exit now. Thank you for your time and have a great day in Europe. Thank you.

Thank you.