Unith Ltd (UNT) Earnings Call Transcript & Summary

The ticker code is UNT. As you may or may not know, we are conducting a roadshow across Australia this week and presenting an update to shareholders and interested parties. Today, I have on the Zoom with me, Chairman Sytze; and we also have Scott and Rakan, who are coming to us today from Sydney. [Operator Instructions] So over to you, gentlemen.

[indiscernible] Yes. Very warm welcome, everyone, from an early morning here in Europe. And I think I'd like to say on behalf of all the other colleagues in Unith, welcome. I think it's going to be interesting. It's exciting times at Unith. I think it's exciting times in the world of technology and artificial intelligence. So please do make use of the opportunity to ask as many questions as you want. And yes, enjoy the presentation. Over to you, Rakan and Scott.

Yes. Thank you, Sytze. So just quickly, just an overview of our leadership group. Obviously, Sytze Voulon, non-Exec Chairman based in the Netherlands. Myself -- he's been on for 3.5 years. Myself, Scott Mison, I've come on as a non-exec director about 4 years ago and just moved into an executive role in the last 6 months. . And we also have Antony Eaton, who has been our lawyer -- corporate lawyer for over 6 years, who has joined the Board just recently. Ivan is our General Manager of B2C Subscription Division; and Rakan here with me, the General Manager of Digital Human division. So I'll just give you a quick overview of what Unith do, and who we are. So Unith is a technology -- Australian technology company listed on the ASX. We specialize in AI Digital Humans and Conversational design. We've built interactive agents for customer engagement, education and entertainment and we'll go through that with the Subscription division, and we monetize the AI capabilities through diverse revenue streams. Currently, we've got 2 business divisions being the subscription B2C division, which is -- have our recurring revenue via the Digital Human and AI content access, which we have built our own in-house applications. We've built 5 of them, which we'll go through a little bit later, but they go to 36 different countries and in different languages. Then we've got our Digital Human division, which is really the end-to-end digital human design, development and deployment, which Rakan heads up. And the key offerings that we do have are the Digital Human, which are life like AI avatars for user interaction, which is a conversational AI. We have, as I mentioned before, the storytelling education applications through our Subscription division and then also Enterprise Solutions, which we'll touch on, which is a customized AI module, which we can touch on a little bit more. So handing over to Rakan.

Good afternoon. I think for once, I'm in the same time zone as most people. Good afternoon, everybody. Yes, I'll do a bit of an overview. Some of it would be repeat information for folks, who've seen this messaging before around Digital Humans, why we believe in them, what they are in some of the applications, some of the successes that we've had. I'll also give a bit of an update on recent updates that we've had from a product perspective that are complementing the successes that we're seeing with adoption from customers and partners. So I think it's -- I think everybody must see and feel this that there's a huge, huge shift happening where the whole expectation of people is moving towards conversational systems, conversational agents. And this is complemented by the fact that large language models or LLMs, as we all see, when we use tools like ChatGPT, Google Gemini, they're exploding, absolutely exploding in terms of their capabilities. What this means is that people have an expectation to have a beautiful or to have experiences as beautiful as what they get when they use those kinds of tools. And then what this means even more is that businesses are sitting there and realizing that they absolutely need to leverage this kind of technology. And they're all -- everybody we speak to, you can feel, you can see they tell you, they know they need to apply these types of technologies. What's the problem? The reality is making that thing that's so easy to speak to actually turns out to be very hard, especially when you're a business. It's hard on many levels. Building it is hard because the LLM, the large language model, to build something on top of it, you have to work with the API. These APIs are raw, like when you actually work with that, it doesn't -- it's not the same thing as speaking with the product that OpenAI are building or Google Gemini are building. On top of that, when you try and deploy something to your user base, your customers, your employees, whatever, nobody wants to interact with chatbots. They're outdated. So you immediately lose the trust of people, once you try and deploy something like that. And then finally, the reality is there are so many tools out there at the moment that it becomes very hard to actually choose what to use, right? So it's very fragmented. It's very inaccessible. So you're a business and you literally had like, I know I want to do something. I have an idea of what I want to do, but I have no idea how to get started. So businesses do not want infrastructure. They want outcomes. And these outcomes are typically directly correlated with their objectives and results that they expect. Our view of the world is that every business will have their own digital human or humans. These will be trained on their knowledge, tuned to their tone and deployed where their users are, whether it's on their website, whether it's in their application, whether it's in a kiosk in a shopping mall or an airport or whether it's at the front desk of a hotel, you will be able to deploy these where you wanted. I've shown this slide before, I always talk about this. We are hard -- as humans, we are hardwired for face-to-face. People like interacting with faces. First thing you see typically in life is a face. Hopefully, the last thing that you see as well is a face. We look to tap into that. We had a congress -- we've had a conversation. It always sticks with me. I will say the name because they're not a customer of ours, with Lidl, which is a very huge supermarket chain across Europe, and they were saying to us that like their engagement rate with chatbots, typically range between 1% to 5%, where they consider the norm to be 1% in a very, very good market, would be 5%, where their user base are younger and more willing to adopt technology is 5%. We see much higher engagement once you put a face on top of that. Our data shows between 15% and 20%, depending on how it's deployed. So yes, we absolutely look and intend and people we speak to, they realize that you can tap into this preference and benefit from it. There's a lot on this screen. I will try to simplify it a little bit, which is just a very first line under why Digital Humans. Yes, they're engaging; yes, they're scalable, but they have a purpose. The purpose is to connect you with, I call it your people and your people could be your -- to connect with internal employees, your audience, your customers, your prospective clients, to help them. And if the use case is to convert them, to convert them and that could be helping with sales, selling your product, et cetera. And one of the people that we spoke to yesterday, I think he actually said it to me in a beautiful way, which was, they're basically there when you are not, right? And this means that they are there any time, anywhere and in any language, and I've made this joke, I feel 3 times in the last 48 hours. Last week in Spain, I think now it was last week in Spain on Monday, all of Spain, all of Portugal, parts of France, parts of Germany, parts of Poland had a blackout. In Spain, it lasted almost 24 hours before the whole country was online. Everybody in my company, and Unith was having fun. I was panicking, because I thought this is problematic until I managed to get a little bit of signal logged in, and our Head of Platform and Engineering wrote, no problem, all Digital Humans are up. And these Digital Humans, while everybody was offline, were sitting there answering questions for Unith and answering questions for our customers. So we're quite proud about that. But it is kind of just reemphasizing the use case of they are available anytime; when you're sleeping, when you haven't got electricity and whatnot. And we are seeing the use cases, and I'll show a little bit about the types of customers that we're bringing on board or the breadth of customers across health care, across the health tech space, I should say, e-learning, onboarding, customer services, marketing knowledge. I am seeing Sytze's face on my screen. And Sytze and I very much -- and a lot of the people in our team, I think when we look across all use cases, there is one fundamental component, and it's actually on the front side, I should have mentioned that it's all about informing people, educating people, enabling people with information in the right way at the right time and in an innovative way. And we think and we believe that Digital Humans enable that. I will do this slide, and I'll probably skip the next one just in the interest of time. When people buy Unith, what do they buy? They buy our access to our platform. What does that give them? It gives -- and when I say people, it's typically companies, gives them the ability to create their own Digital Humans, to deploy them at scale. And what are these? They're smart because we -- our Digital Humans are smart, they're contextualized and they're personalized conversational agents available anywhere, any time, anywhere and in any language. What do we provide? There's 3 things. Everybody, regardless of how you want to consume Unith, get this thing like on the right side of my screen, if you see my mouse moving, which is a user interface, a web component of a user interface that we host that people can interact with the digital human and it's an embeddable component, which means you can put it on your website. As I mentioned earlier, you can put it in your application. You could put it wherever you want. These are the things when you sell to a business leader -- when you sell to a business leader, whether it's a customer experience leader, a sales leader, a marketing leader, this is the thing they actually care about. They care about the end product, like the digital human that's going to help them speak with their customers. But somebody needs to create these things. So when we sell to businesses, it's typically like do you want to build it yourself? Do you want somebody else to build it or would you like us to build it for you? And these people, these different personas, we call them internal builders or platform teams, they would typically use our creation tool, which is a no-code web application that lets anybody create and manage their own Digital Humans, or they would use our API layer, which lets them do things, I would say, at much higher scale and much more customized and personalizable. So we sell both of these. The API is something that I would say more premium users who are essentially buying access into more of our platform use, but it gives them a wider range of products to use. And just to share some of this because Scott will come on to this in a second. In many ways, our internal team, we were lucky enough to have customer zero in Unith, which is our B2C direct-to-consumer division. They do everything at the API level, so they test and validate everything, and they do them like at very, very significant scale. I'll skip this slide. It's something that most people have seen. The one thing I would maybe say, one of the great things about Digital Humans is the feedback loop. We put a digital human on our own website. We think we know what people want to ask the digital human about, but we don't always get it right. So sometimes people ask the digital human a question, and he doesn't have that information. He cannot answer it. And to us, that's really valuable information because it tells us that we have not thought through the things our audience are interested in. So we get that as a reporting feedback, and then we give the digital human this information so that he can then educate the next person that asks for it. And we get that through the analytics pipeline. This is a lower level of detail. We've seen the people who are actually interested in under the hood, how this happens. You speak to a Digital Human, everything is happening really fast. But behind the scenes, what's happening? You talked to it, you used your voice, your voice becomes text. In real time, we take this text, we pass it to a dialogue engine that is within our platform. This dialogue engine works with a large language model. We have a default one, but it's also at one of choice and works with external systems. So this thing goes about and says, based on what the user says, what's the next best thing -- what's the best thing to respond with, comes back with text, goes into a voice synthesis engine that generates a voice. The voice then goes into a facial synthesis engine. We call it [indiscernible] or people who are interested in that. And we call it Turbo[indiscernible] now because it keeps getting faster. And then we generate the face and then the face is given back to the user. And all of this has happened in real time. It looks very simple here. It's very sophisticated under the hood. And when you use our platform, you have the ability -- anybody has the ability to basically control the way these things happen. I like looking at these kinds of slides. There's a lot here. I won't go through half of them, and I think the slides have been shared. But this kind of just reminds us or reminds the team as well, like how much we've done within not even yet a full fiscal year. Standout events, I think everybody knows, we have interfaced a self-service platform, which is a major accomplishment for a company like ours. We launched that in September, the back end of September. We hired a very great -- we've hired a couple of great people, one on the growth side, who is really helping us ensure that we can get the commercial traction that we need and we need to continue doing. We hired a sales manager as well. I always forget the data around this, but it was post October, between November. We've -- yes, and with that and a lot of other stuff that's going on, we are setting ourselves up to continue moving in the right direction. And what does this moving in the right direction look like. I think we shared this through a progress report. In the end of February, we were -- we secured, I would say, finally secured a very significant customer, on a 1-year deal, at a valuation of $130,000. The pharmaceutical company where they're essentially -- and it comes back to what I said, they're essentially -- it's not only they're looking to, they believe that Digital Humans is a great way to inform and educate patients and health care professionals. So they have, let's say, different configurations that they're looking -- that they're looking to have set up, and they're looking to do this in 3 languages. So again, it's a great project. It started pretty well. I would say very well. It's a little bit different to the next bullet point in the sense that the monetary value that you see there is not a recurring revenue. It's almost -- you could think of it as a onetime fee. It's actually milestone-based of which I would argue we've delivered all of the milestones already. So the next piece that I talk about, as you can imagine, excluding this kind of onetime fee that we get, where, let's say, selling our platform to businesses, who are committing to use it on a month-to-month basis, we've consistently been growing the customer count as you see on the top chart on the right and the associated revenue with that. Monthly recurring revenue is such a interesting metric because if you keep growing it, then all of a sudden, when you look at things, when you take a step back and you look at things on a year-to-year basis, the number is immediately times 12. From our perspective, we assume every customer that comes on board is sticking with us, let's assume this because we don't have all of the data yet, stay for 10 months. That would be $250,000 that we've got right now from the customers that we have, we only see this growing. We don't know how long the customers will last. What we would say is that currently, they are sticking which basically means our churn is very low, which is good, which is a metric that we will look to continue measuring and we will lose customers. There's no two ways about it. As painful as it, is, we will lose customers. But in losing customers, we will learn why we lose them. We're building good relationships with these people. It will help us make better decisions. It will also help us choose where we focus because we do need -- we will essentially need to focus, and I'll come a little bit on to that in a second. How are we doing for time? I think it's okay. I had one more thing I wanted to mention on this. One of the -- sorry, I've got a few more things actually, but I only remember one of them. One of the fascinating things about this chart on the bottom right is it's growing. But if you look at our cost base, our cost base has not changed at all during this time. So we're winning new businesses, driving up recurring revenue. And ultimately, our cost, operational cost, marketing cost is not increasing at that same level. We know we can do more, right? And we will do more. But right now, we're very much focused on optimizing how we acquire customers, how we satisfy those customers and then helping us -- and helping us. I won't talk through the platform enhancements because I have a few other slides later about this. So yes, just one -- just to reiterate one more thing. These numbers do not count the number here. They do not count -- like any time we receive a one-off payment from a business, we're not including it in monthly recurring revenue. This slide is more pretty than anything else. I think it's pretty because 6 months ago, there was a very little on this slide, and now there's very much on it. I think what we want people to take away from this is -- we are selling to businesses. We're not selling to individuals. Individuals can use the platform. But when we think about where our team's energy is focused is in working with businesses, businesses who want to scale, businesses who want to grow. I won't go into the details with some of this, but some interesting things in here. Many of them come back to us and say, hey, can we actually resell what we are buying from you? Which is great. We like it a lot. And we say, of course, but we need to revisit like a little bit the commercial model that we have in place, and we're learning like what that would look like. There is also, in here, an interesting case where somebody who was using [ DID ], which is a company that does very good stuff similar to what we do, and they've decided to move away from them and come to us. We've never had this before. It's great. I'm actually trying to understand a bit deeper into some of the reasons behind that, but we also understand that our commercial model, which is very strongly associated with the fact that we can do things at good scale is one of the reasons for it. And then also -- and I have this at the end. And in case I forget it at the end, I'll say it now, the team is as good as the product. People buy -- like people buy people like -- we are strongly committed to building relationships with the people that we work with. And I -- and we can feel that as we -- I have faces, the team have faces to most of these businesses that you see here, and I stress they all want to grow. This is a highly simplified view of the world, but what's next? I think when you see this -- and really this slide, when we launched this didn't exist, it was a handful of very select customers before. It's growing quickly. We have to -- it makes no sense to stop doing that. So we want to continue driving that growth. We're calling it like build the core, internally, is the name. Yes, because we want to push up the revenue stream, but I mentioned we may lose customers. We will lose customers. What do we want? We want to use this to find high-growth segments so that we can focus a little bit. Everybody wants to do something. It doesn't actually make sense for everybody, right? We need to know who it doesn't make sense for a while. Let's not focus there. Let's focus where it makes sense. Product -- and then the product. We have -- I keep asking for more, I would say, but we have to be very selective in where we spend our R&D budget and getting this data directly from customers like what they need to grow, what they need to come on board and why they left us makes us take the right decision. So that data set is becoming more and more valuable, data set being the customers we have. We also will launch a new proprietary, let's say, we're calling it corporate AI product offering that we will use to penetrate larger businesses. Because we see a lot coming out of some of the businesses that we are working with that we think is reusable and packageable and distinct. And a lot of this -- Scott mentioned Antony Eaton, who -- sorry, Antony Eaton, who's joined the Board. Anton keeps pushing -- keeps pushing this element of truth, right? Like it needs to have an element of truth. And a lot of what businesses need at a corporate level, otherwise, they're getting a lot of trouble as Digital Humans delivering truthful information to people. Then we think we have a bit of a novel way on how we can manage that. And then finally, and we've already kicked this off, we are refining that while we're doing a lot of stuff here, let's say, at a corporate level, we're also speaking with potential partners that will help us capitalize on the demand and the readiness that we are seeing specifically penetrate and -- penetrate the Australian market because it's something that we want to do. And we can use partners to scale in a way that lets us have a nimble -- small, nimble and core team. I won't go into this detail, but I do -- the detail on this slide, I think, has been shared. This is a little bit of how we will do the previous stuff, but I do want to show -- I'm going to hope I click the right one. Because I know there's a lot of like we should have more of a presence to get partners to get an awareness in Australia, we are currently running some ads. This is a little bit of what they look like. I hope the voice will play. [Presentation]

So these are intended to basically get people's attention. We think they're cool. We think they're real. They're very authentic to what we do and how we can help some types of business. We have a few of these running. We have a few of them, just so people get this, like the bulk of what we do, getting this message out is similar ads in different language, in French and in Spanish. We have some in the Netherlands that we are using to help us build the customer acquisition. And what we would say is the feedback is good. We can measure the feedback because we know how much it costs every time somebody has a meeting with us at the end of that whole thing. Okay. These product updates, I can spend so long doing it, and I'm in 2 minds of how deep to go in this. I will whistle stop through this, which is, our Digital Humans are agentic. This is a buzzword in many ways. And what it essentially means is they can do things above and beyond speaking to you, that something could be booking a meeting with your sales team. It could be updating a spreadsheet for you. It could be creating a lead in your CRM system. In our case, it's HubSpot, and we are about to make it be able to create HubSpot records for us. What this means is your digital human can speak to people, understand them, realize what they want and then execute on that. And we can't build everything. As I mentioned, we have to be clever in where we spend our R&D budget. So we've built an integration with Unith. If you see here, if you go into HubSpot, and people search for Unith, they will not find Unith because it's a private app. If you can read here, it says by invite-only. So when our customers sign up to Unith and they want this, we will invite them to our app. They can then create a workflow with Unith inside it. And then the digital human they create using what we're calling open dialogue, is -- this is a new mode of Digital Humans is an agentic mode that lets people specify in here and say, when you realize somebody who works for a business that is bigger than 100 people and has a project that makes sense. At this point, I would like you to suggest that they have a meeting with your sales team, then it puts the record into the HubSpot. This whole flow is something that we are -- not only we, many people are excited about. We are still refining it. We're still understanding like different pieces of this. We're building templates here that people can reuse because not many people realize exactly how the workflow outside of the digital human needs to look like. This is a real customer. I should have had it on my screen already, but there is a little flag here, which is called widget mode equals false, which means the digital human is usually a full screen. The moment you flick it to true, seamlessly it comes in the bottom right in the screen like this. Why is this important? Because customers told us. We think it's easy, but for them, it's actually hard. So then we decided, let's make it easier for people to put it there, even though we don't always believe that's the best place for a Digital Human. We think it should be a bit more pronounced in some situations. Security is super, super important. You could imagine it was very important for the enterprise that we work with. So Digital Humans that you create now, you can essentially lock them down to your applications, secure them in many different ways that didn't exist before. It's a bit boring, but it's required in many ways. So we had to invest a bit in this. And then -- wait, wait -- and then next up, and there's a hidden feature update in this, let's see if people can spot it out. And I hope it plays. [Presentation]

That's an Aussie accent on me. Nobody likes hearing their own voice. I chose one that I thought was appropriate for this week. The last 2 bullets are also new, relatively interesting. The fact that we now can switch between a nonspeaking state and a speaking state so that they can bring in a few gestures into the conversation. Many people who said, after a while, we would like to shut the Digital Human up, so we put an interruption button in there as well. But I stress that video at the bottom right, I don't like promoting it because it's not what we do. After that, you want to say, tell me more about the Zapier Integration. Can you integrate with other because there's -- Zapier is one of many tools that allows you to integrate with other systems. The answer is yes, by the way. All right. I'll hand over to Scott to maybe just take things.

Thanks, Rakan. Okay. Just moving to the B2C division. That's our subscription division. Essentially, that is direct-to-consumer that distributes in-house apps that we have developed with products such as bed time stories, there's a history app, an astrology app and wellness app. So these customers, they pay either daily or weekly subscriptions through their phone bill, and they can be up to $20 per month. We've seen the customer base value growing with more active subscribers that we're getting. So we're up to about 900,000 subscribers at the moment. With those active subscribers, essentially, we stopped that the -- I guess, the marketing for getting active subscribers. That database will be worth about $4.5 million on stopping everything, and then it's up to the subscriber to opt out, and that customer value will be about $4.5 million over the 2 years. We're seeing the geological expansion going to 36 countries with 21 languages. So we're predominantly being in Europe, in the Middle East. We're now venturing into Africa. We've got people that have got experience in those jurisdictions, which we're pushing into those footprints. So as I mentioned, these are the apps that we have, the bedtime stories, the history app, the astrology app, a travel app and a wellness app. And as you'll see there, there's different verticals. I mean we've got children content. We've got e-learning, astrology, travel and they're available in different languages and as I mentioned, in different jurisdictions. So we're in about 36 different countries at the moment. So as Rakan mentioned before, our first customer really was the B2C Division, that really took charge on the technology that we have developed through the Digital Human division. We have customized that by getting -- creating these applications. And then we go out and we have in-house customer acquisition to grow that database, which we use -- we will create our own content being the unique AI Digital Humans. And that's highly localized in the areas of the jurisdictions that we want to go into to enable them to be highly personalized towards them. The subscription model is recurring revenue model. So as I mentioned before, you opt in to get one of the travel app or the bedtime stories app and you will get built on those services until you opt out and then you become -- no longer become a customer. So -- and as I said, we see that trial, if we stopped everything now, there's a trail there over 2 years of roughly a $4.5 million database. Moving on to what we're seeing for the future outlook for the B2C division, is, as I mentioned before, going to that geological expansion into Africa. We're seeing a lot that -- we've seen a lot in the Middle Eastern countries and Europe, and we're using those knowledge that we've got in those jurisdictions and moving into Africa. As I mentioned before, we've got an in-house buyer that helps us with our marketing, who's based in Morocco. So he understands the jurisdictions into Africa and what is needed to get into there. So that product diversification. As I mentioned before, we've got the gaming, we've got the wellness app and the travel app, things like that. We'll continue to do the in-house media buying for that customer acquisition to grow that customer base, which we see, as I mentioned, we were up around 900,000 at the moment. By the end of the financial year being June 2025, we see that to be up around 1 million active subscribers and the database roughly to be estimated be around $5 million. So just on that database, though, so that -- our annual recurring revenue for the subscription division is about $4.5 million. So that's the recurring revenue. So that's different to this customer-based lifetime value. So we get the $4.5 million obviously recurring, which we're growing, but we've still got that database, which will tail off if we stop doing everything now, that database would tail off and be worth, as I mentioned, about the $4.5 million. As I mentioned, the B2C, we're increasing the active Digital Human users across the 36 different countries, different languages. As I mentioned, we're now going into Serbia, Slovakia and Romania with those 5 applications that we've got. And we're seeing the continued growth on areas such in Africa, Gabon, Jordan and Uzbekistan. Coming into why investing in Unith? As Rakan was saying, we've got a strong sales momentum at the moment and client success. Obviously, we've signed up the -- a large pharmaceutical client, which were -- as Rakan mentioned, we've hit the milestones within a month of really doing that project. I mean, it was a long cycle to get those enterprise clients. The cycle is probably around 6 to 9 months to really get someone from when you're talking to them to signing them up. Where -- we've got rare AI exposure on the ASX. There's not many pure AI companies listed on the ASX and obviously, the high-growth marketing opportunity. With agentic AI, Digital Human, the market is getting bigger and bigger. You see research reports coming out pretty much every day with bigger numbers on them. I mean the GenAI, you're looking at $2.6 trillion to $4.5 trillion. So it's a growing industry, along with the Digital Human market, the agentic AI market. So we're in the right space at the right time to really push this thing forward. We've got a world-class team. It's highly committed, and it's got very, very deep expertise across the AI industry. Rakan himself, I guess, has got a PhD. There's a lot to do, and we have gotten very, very smart employees that are in the back doing all of these products. We believe our market is undervalued. As I mentioned, we've got a market value -- capitalize a market cap of $13.5 million. However, if you look at -- on our balance sheet, we probably haven't mentioned too much, but we've got investment on our balance sheet in AudioStack of $2.5 million, which we've got remaining, which we divested some in December, and we'll look to -- potentially look to divest when the opportunity comes up next with them. We've also got still an investment with Unith, which is valued at another $500,000, which we'll have some conversations to see if we can -- if we need to exit that, but also, what doesn't take into our balance sheet, I guess, is, as I mentioned, the long-time value of the subscription division, which is around $4.5 million. And then the last thing, the product-led growth. We're capitalizing on a very comprehensive scalable platform with the ongoing innovation and enhancement, driving the competitive edge. So we're really seeing the traction into the interface platform itself, which is leading to not just the smaller to medium-sized clients. But as Rakan mentioned, we're getting those enterprise clients. We're getting a lot of interest in those areas. As I mentioned, those sales process takes quite a long time, but we're getting better and better as we learn. We're getting more data, understanding of what people are looking for and to really move this -- the company and the product forward. So that's it from Rakan and I. And Julia, back to you.

Hello. Thank you, gentlemen. Does anyone have any questions? Feel free to pop them in the chat box. Quite a few moments. Okay. Let me refer to a few that I have had sent in via e-mail. Okay. So this is from a shareholder. Unith claims its Digital Humans platform is far superior to that offered by rivals and points to its recent wins in competitive contract bidding processes. What makes your Digital Humans offering a better mousetrap than other alternatives in the marketplace?

Can I take that? Can I go? Good question. Good question, and there's a lot there. So maybe it's worth starting with what is the reality that there isn't actually -- there is competition, but there is not -- the market is not full in many ways. So the vast majority of people who do what we do, don't focus their efforts on making conversational agents, right? So the biggest players, the ones with the largest valuation and the ones that are almost household names, their play is typically on creating video content for creatives. So that's typically where most of the competition lies. And in that case, we kind of just say, hey, but at the end of the video, you can't ask it a question, and that's a little bit of the, oh, now I see how Unith is different. The other part of it comes back to what I mentioned at the start, which is, there are so many tools out there at the moment. And having a platform that very neatly packages together a lot of different moving parts in itself is a lot of value. So we believe by being simple place to go to, to easily get started on your mission with AI, in itself, is valuable. We also know, and I touched on this earlier about us winning over a competition from a competition -- a client who was working with the competition. We also know that our commercial model has many advantages in it. And this comes from the fact that operating our system is significant -- we believe, is significantly cheaper. Ultimately, I wouldn't use the word cheaper. It's operationally way more efficient to run our Digital Humans compared to competitors. And then there's one more piece, and we're seeing more and more of this, which is some people have already started making investments in technologies to use. They may use their own voice provider or they may use their own large language model. The fact that we can accommodate that and say, that's fine. You want to use this LLM, bring it into our system. Do they need to be API user or you want to use this voice provider, bring it into our system itself is one of the places that we win. Also, and I have this on firsthand feedback, the fact -- the way we've set up our infrastructure on our side using AWS in a scaled -- in a globally distributed manner is a competitive advantage for us.

Fantastic. All right. We've got plenty of questions here now. So from Richard, what would you anticipate your 12-month revenue will be for this financial year?

For the next 12 months or this financial year. So the FY '25 or '26?

For this financial year that we're presently, and that my interpretation of the question. I think you gentlemen will be able to see the questions as well in the Q&A box in the center of your screen.

I'll get it.

So just with the Q&A box there with the #4. There's 4 questions written here, yes.

Yes. Okay. So I guess for this financial year that we're looking at, as I mentioned, the subscription division does about $4.5 million in revenue, annual recurring revenue. So that will -- we expect that to happen by the end of June. So we're on track for that. With the Digital Human division, obviously, we've got the annual recurring revenue at the moment of about $25,000 a month -- which is over $250,000 a year. So -- but that does not include -- as Rakan said, that does not include the 2 enterprise clients that we have. So we have obviously APH Alliance, who have renewed their contract. So we've got another $100,000 through them. And then we've also $120,000, and we've also got the new contract with the pharmaceutical company, who we see is another $130,000. So that will be about $250,000.

I'll slightly correct. The APH one is total value of the business. So it's not another.

No, that's right. Yes. But it's recognized during this financial year. So we're seeing probably in this financial year will be around about the $5 million mark, okay? Now what we're seeing, though, with going on to next financial year, obviously, we're seeing the -- we're very -- the platform itself, the interface platform was only launched 6 months ago. So as you can see with the presentation, our annual recurring revenues are going up and also the number of clients are going up. So we expect that to grow month-on-month. It will be -- I mean -- and also with the Subscription division, we see that growing as well. With the 1 million active users that we are expecting or hoping to get by the end of this financial year, we -- and considering we're going to more jurisdictions, we will expect that revenue to go up as well.

Excellent. And then we've got an anonymous participant. Cash on hand and your cash burn, I would say that my inference is monthly cash burn there, gentlemen.

Yes. So obviously, with the quarterly that we put out, we've got just under $1 million at the end of March. At the current cash burn, so that's not taken into new clients now or as Rakan mentioned, we billed for our new client -- we hit all the milestones. We billed them last night. But as at today, our cash burn would be about $250,000 a month. That's the net.

Good to know. Thank you so much. Gary has asked about your penetration in the United States market.

So we have, let's say, no direct sales into the U.S. market. But we have partners who are reselling into the U.S. market. So maybe this point didn't come across. So like currently, all of our go-to-market initiatives are focused purely on Spain, France, bit on the Netherlands and then most recently in Australia. But the people we sell to, it's in there -- they themselves push it wherever they want, right? So there's a little bit of us learning of Digital Humans being deployed in places that we didn't know about in many ways, which is great.

Very good. And Richard has asked what is the likelihood that some bigger players/competitors will try and buy your company?

Should I take that one, guys?

Yes, answer it.

That's an interesting question because what you see in the market actually is that if you look at competitors -- competitors are all sort of -- they're growing their business, they came from startups. So I wouldn't see the interest from that element. But if you call bigger players, people that are active in a changing world of data, artificial intelligence, applying data to your business processes, yes, there even are sort of open discussions with people in the market, could even be huge audit firms, the big ones even, that are looking to try to change their business model because as everybody may understand, audit companies will slowly disappear with the arrival of artificial intelligence. There is, however, interest of people that do talk to us or reach out are often portfolio businesses and sort of with our private equity backed usually and are interested in sort of expanding their whole suite of product offerings that add value in a complex world of artificial intelligence. I think Rakan said it very, very well. Big people are not looking for AI, they're looking to improve their business. So the problem you're trying to solve for your clients is not the same as the technology you need under the hood, as Rakan called it, to fix something. You are trying to improve business processes to make money for clients. So basically, you're adding value to them. And there are players out there, there are portfolio of businesses out there that tried to capture this complex world of data, and they are actually interested in us.

I have another question from a shareholder that submitted it prior to the meeting. How are the continual advances seen in AI going to benefit the evolution and financial viability of Unith's Digital Humans offering?

I think I'm still off mute. We have to be very selective in where we invest our R&D budget. We have to be very flexible and modular and willing to adapt. And actually, one of our company -- one of our company values is being agile and we promote this all the time within the team, because we know advances are going to keep happening. And in many ways, it's great when our product improves drastically without us doing anything because there is some major improvements at the large language model side or the voice quality side or it's become cheaper to operate the GPUs that we use sometimes to generate some of the faces, et cetera. So I think quality goes up, price goes down, as everybody else is investing very big in AI. So yes, I think it's just one of those things that we are -- not many people get to get their product, get better because other people are doing work for them. Yes. And then we focus our efforts, as I mentioned earlier, on the things that we know people we are trying to work with need.

And I've got one last question here that was submitted in advance. Clearly, your B2C subscriptions business has plenty of growth upside from here. How does this business identify what new countries and product verticals are worth penetrating?

Yes. So I'll take that. So with our Subscription division, as I mentioned before, we've got people in different jurisdictions have the experience on knowing what they need to go into those different jurisdictions. To move into a different jurisdiction, you need to have authorization by that particular area. You need to then work with a telecommunications company. So you need to get in the agreement with them to be able to then be able to go in and market our products into those areas. As I mentioned, we're seeing -- with our experienced team and where we've got guys, Ivan and another guy who's still there, who started the business, Track Concept itself, who's been there for 15 years. With the knowledge of those guys and the new guys that we're bringing on board for our media buying, where they are working through those different areas and really capturing those areas. So as I mentioned, we've got a guy in Morocco. We're going to move into Africa, which we see as a big market that we can capture. I mean a lot of people in Africa, they have a mobile phone, they can opt in to get any of these products in there. And then we also, with our experience on those different areas, we can work out which ones are most profitable as well. So with our marketing spend or really marketing our products, we can tell which areas, which jurisdictions are most profitable and it's a continually moving areas as well. So it's not just moving to somewhere and we just hold and we just wait and see what happens. You have to actively go in there and really promote your products in there. So -- and as I mentioned, we've got that team behind us doing those marketing campaigns into those different areas.

And just one more quick thing to add on that. What's behind -- so you saw the faces, there was like an Albert Einstein face and a few of those. Behind that is actually a face of a historical figure that you can choose and you can speak with them and part of penetrating these markets is taking to them what they perceive to be in-demand innovative solutions to that market. So in many ways, like we are so lucky to have like an ideal customer being ourselves, who are the first people to adopt our Digital Humans and take them to market and roll them out and push, and in many ways, help us make some of those decisions by how can we make it more effective because 1 million users is a lot of users. And there's not many -- on the competitor side, there's not many conversational Digital Human platforms out there who have 1 million people that can speak to them. Yes.

Thank you, Rakan. Gentlemen, thank you so much for sharing an update today. For anyone that's interested or has any further questions, you can see our e-mail is clearly displayed on the screen. And thank you so much for your attendance today. This webinar was also recorded. So if anyone is interested in accessing the recording, we will gladly provide it. And have a wonderful afternoon. Thank you for your attendance.

Thank you.

Thanks, everyone.

Bye.