Urbanise.com Limited (UBN) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by, and welcome to the Urbanise.com Limited full year 2023 Results Call. I would now like to turn the call over to Simon Lee, CEO. Please go ahead.

Good morning, everyone, and thank you for joining us for the presentation of Urbanise's FY 2023 results. With me today is Dave Goldbach, our CFO. Turning to Slide 2. Urbanise is a leading provider of cloud-based platforms to Strata and facilities managers in Australia, New Zealand and parts of the Middle East and Asia. As of June 2023, the business had AUD 12.4 million in contracted annual recurring revenue, or CARR and 87% of total revenue came from recurring license fees. Both our Strata and FM platforms are extremely sticky with the combined customer retention rate of over 95%. We have an extensive global footprint with a presence in 17 countries, with our core markets being APAC and the Middle East. Turning to Slide 3. FY 2023 has been an important year for the company as we laid the foundations for future growth and continue to make good progress on key priorities. Our sales strategy delivered $1 million in additional license revenue through a growing portfolio of reference customers and product improvements. We continue to focus on conversion of our strong pipeline, organic growth and retention of existing customers. In June 2023, we completed an institutional placement with net proceeds of AUD 3.3 million, to accelerate our implementations, support working capital and increase balance sheet strength. Our sales strategy in the Middle East is strengthened through our investment into the Urbanise Strata product and integrations into Dubai's real estate regulatory authority or RERA. This enhances our competitive position and is on track for completion for full integration by September 2023. We were pleased to deliver the Colliers project go-live in April 2023. This key contract leverages Urbanise FM into the commercial property space as well as extending our functionality of national portfolio property managers. The customer rollout has been positively received. During Q4, we completed an organizational restructure into the 2 business lines, Urbanise FM and Urbanise Strata to better align our sector expertise to the performance of the businesses. We have commenced an operational and cost review, which is expected to deliver reductions in cash burn ahead of an anticipated ramp down in development. This follows significant investment for Colliers and integrations into RERA. The review is expected to complete in Q1 FY 2024. Slide 4 provides a summary of the key metrics for FY 2023 against pcp. License revenue increased by 1.5% with underlying license revenue growth of $1 million partly offset by AUD 800,000 in revenue reductions. Underlying license fee growth of $1 million came from new wins in FY 2023, the implementation of the 1 July 2022 backlog and organic growth, half of which related to price increases. New wins came from small-to-medium Strata managers in Australia, pure-play Strata managers in the Middle East and small to medium FM customers in the Middle East and APAC. The AUD 800,000 in revenue reductions related to the loss of 3 Ventia contracts in Q4 FY 2022 as reported last financial year, some small customer churn and a reduction in license requirements from the 2 APAC customers. We continue to work closely with these customers and expect them to replace lost business in the future. Total revenue was up 1.5% on pcp, reflecting not only the license fee growth I just mentioned, but also a 1.3% increase in professional fees. ARR was 6.5% higher versus pcp and totaled AUD 11.56 million. New customer and organic growth across Strata and FM more than offset the loss of customers and license reductions. Colliers Australia and a leading Strata manager in the Middle East contributed over AUD 400,000 in additional ARR in June 2023. The remaining ARR for Colliers Australia is expected to be recognized as the rollout continues in the first half of FY 2024. I would like to highlight that customers like Colliers and large Strata managers in the Middle East provide Urbanise with excellent use cases and also have extensive portfolios that create further opportunities for Urbanise. This is illustrated by the recent go-live for Colliers New Zealand, which was an internal reference. Contracted ARR was 2.5% higher on pcp at AUD 12.4 million with -- $12.4 million with backlog related to part of the Colliers portfolio and strong lots of PICA. The closing cash position was $4.25 million and included $3.3 million in net proceeds raised from the recent institutional placement. Urbanise has no material debt. Underlying average monthly cash used, which excludes the institutional placement, one-off items and late receipts, was AUD 223,000 compared to AUD 241,000 in FY 2022. The customer retention rate for the half was 95.1%. This is based on the number of unique customers using our FM and Strata platforms. The ARR retention rate was 97.1% with Strata and 89.4% for FM. The average contract value for the customers lost was AUD 26,000. Before handing over to Dave to cover the FY '23 result in more detail, I would like to discuss our progress in relation to Urbanise's market and growth strategy. We'll then go through the FY 2024 outlook before opening up for questions. Slide 7 shows our current footprint with our Strata and FM platforms very much focused on APAC and MENA. We will consider other geographical markets but believe we can achieve profitability from operating primarily in these markets. Our software is considered mission critical to our markets due to the compliance aspect, the scalability through deployment to multiple users, how integration ready they are, and of course, the cost savings and efficiencies they bring to customer P&Ls. Turning to Slide 8. Urbanise Strata has been established for over 15 years in the Australian Strata market and over 10 years in the UAE market. Strata managers will generally require a technology solution once they achieve scale. Perhaps 10 buildings or more with managing required buildings within legislative requirements, the banking transactions and reporting can be onerous without software. Urbanise can help solve this problem. We have a cloud-based platform, which is a result of significant development over the past 5 years. We have designed a modern user interface and experience with Strata managers. Slide 9 shows what we view as our immediate market opportunities for Strata. Our total obtainable markets in Strata are defined by where the Strata legislation is prevalent, that is Australia and New Zealand, Southeast Asia, Canada, parts of Europe and expanding through the Middle East. Our immediate market focus represents an estimated $80 million to $90 million based on the UAE and ANZ, where Urbanise has a strong foothold. In the UAE, the real estate regulators are playing an important role in ensuring Strata managers are compliant. This is driving the use of technology and integrations to manage the extensive property and financial data. Our integration with Urbanise FM also puts us in a unique position. We estimate that based on the market combined for Strata and FM, our enterprise level solution and the growing number of units under construction, the immediate market opportunity sits at around AUD 35 million to AUD 40 million. We have over 250 customers in Australia and New Zealand, including PICA, the largest Strata manager in the region. Australia alone has 2.8 million Strata titles and recent industry analysis points towards the use of cloud software like us to ensure Strata managers remain competitive and keep their margins under control. Accordingly, our primary targets are customers who are using on-premise solutions. We estimate between the heavy targeting of the on-prem market and the reasonable share of the cloud market, this sits at around AUD 45 million to AUD 50 million. Turning to Slide 10. Urbanise FM has been operating for around 10 years with a significant boost in its functionality over the past 5 years. Facilities managers are generally responsible for the maintenance of property assets and the coordination of skilled trade. Facilities managers with scale cannot manage without a system. And our platform helps reduce the admin cost of work, order management and eliminate manual paper processes. Compliance reporting is also critical for facilities managers to ensure maintenances are completed on time. The complexity of managing multiple vendors or contractors can be achieved via our platform. Facilities management follows the direct sales model, which is supported by marketing and network of relationships with facilities managers. In APAC, the Colliers project went live, as mentioned earlier. And we are pleased with the level of functionality our platform now has for the markets we're targeting. The recent feedback from current customers in our target pipeline has been positive as our product provides end-to-end coverage to manage the maintenance and the trades contracted to do the work. Turning to Slide 11. The total attainable markets in FM are very wide and in long term, could expand globally as there's limited regionalization required. The main consideration from region to region is how deep the need to drive efficiencies add to trade management. Generally, regions that have good real estate markets will be a priority. And we already have small footprints in Singapore, Malaysia, Thailand and U.K. Our immediate market opportunities are estimated between $225 million to $265 million and are focused on the following: FM outsources or service providers are professional facilities managers engaged by property managers and owners to provide maintenance. Their operating model is to engage contractors to service the buildings. Our platform is well designed to services and originates from this market. We will continue to seek Tier 1 and Tier 2 customers in this space. Tier 2 FMs tend to be state-based players where Tier 1 FMs maybe like Colliers, who have a national footprint. We have several use cases of our platform with the retirement village, aged care sector. Over the last few years, our FM outsources have deployed the platform into the sector. And in the last year or so, we've secured 2 customers directly cost effective, which provides us with good reference cases. The retirement village sector is experiencing change with legislation introduced to improve asset management planning and New South Wales is undergoing improvements now, and it is expected that other larger states will follow. In the Middle East, our FM platform is gaining momentum with trades to service the residential property industry. We continue to target these businesses across Dubai, Abu Dhabi and Saudi Arabia. Slide 7 shows our management process from winning work to post-sale support. Our direct sales model is reliant on subject-matter experts selling to Strata and facilities managers. We have found that in both sectors are most effective salespeople, are those who have a deep understanding of Strata and FM world. Our investment in marketing over the last 12 months into various trade shows and social media and digital channels has improved inbound inquiries. Several go-lives of large reference customers have also been helpful to increase brand awareness. The implementation process can involve the migration of customer data from the legacy systems. We have invested in more automation in recent months to reduce the time required to map and load data into our system. It is a strategic priority to optimize the migration process to reduce the time taken to convert our backlog to ARR. Turning to Slide 13, our sales team is focused on opportunities relating to the aged, care retirement villages, commercial retail, FM outsources and Strata managers, as mentioned before. Although we don't disclose our pipeline, the development we have undertaken for Colliers and RERA has resulted in several large opportunities, which are still under review by prospective customers. As I mentioned, it also creates opportunities with these large organizations, whether it is in another market or another portfolio. The average contract value of our pipeline is now between AUD 300,000 to AUD 350,000, highlighting the use of our platform by larger customers, especially in the FM and Middle East Strata space, as the size of potential customers increases, the complexity of the sales process has increased along with the time to complete final decisions to buy. Urbanise is also strengthening its relationships with other software providers and industry partners to broaden our reach into target markets. We have invested significantly into the marketing content to highlight relevant use cases and develop a better understanding of the value of our platforms. I'll now hand over to our CFO, Dave Goldbach, who will go through the results in more detail.

Thanks, Simon, and good morning, everyone. Slide 15 shows our contracted ARR growth on the first graph and the relationship between ARR and license revenue on the second graph. CARR increased by 2.5% versus pcp to $12.4 million at June 2023. The business has consistently carried backlog since the metric was first reported in June 2019. The value of the backlog across this period includes large projects that take time to [indiscernible], such as PICA and Colliers. The 6.5% increase in ARR in June 2023 compared to June 2022 was largely driven by the partial implementation of Colliers Australia in Q4 FY '23, the implementation of a large Middle East Strata customer at the end of March, other -- and other new and backlog contracts and organic growth. Slide 16 provides a breakdown of ARR between Strata and facilities management. Strata ARR increased by 6.2% versus pcp and FM ARR by 7.1%. The backlog includes Strata lots acquired by PICA and the FM backlog includes the remainder of the Colliers contract, which is expected to complete the stage rollout of the FM platform in H1 FY '24. Both FM and Strata include other small customers in the backlog. We are focused on implementing our backlog with revenue recognition dependent on reaching project milestones and customer readiness. Slide 17 shows our ARR mix by product, region, size and type of customer across our FM and Strata portfolios as at June 2023. Strata is currently the larger part of our business with Australia, our biggest revenue base. Within our FM portfolio, FM outsourcers contribute almost half of our revenues. Strata asset managers such as Nakheel and Dubai Asset Management in the Middle East, these are integrated Strata and FM platforms. The Strata portfolio in Australia and the Middle East includes customers that range in size from small to large customers. However, smaller customers make up a good proportion of our portfolio. The ongoing development and integration with RERA are creating new opportunities in this region as highlighted by the implementation of a leading Strata manager in Q3 FY '23. Slide 18 shows the cash burn over the past 4 years on the first graph and net working capital on the second graph. Net cash used reduced by $453,000 in FY '23 versus pcp. Net working capital remains negative and continues to progress due to the sales growth and cash-in-advance initiatives. As Simon mentioned, we have commenced a review of the operations and cost base of the business, which is expected to deliver a reduction in cash used. We continue to take a disciplined approach to costs and working capital management. Managing cash flow remains a key priority, and the Board believes that Urbanise has the resources to achieve a sustainable cash position. The financial summary on Slide 19 shows the headline figures for FY '23. License fees were up 1.5% with underlying revenue growth of $1 million, partly offset by revenue reductions of $0.8 million. Professional fees were up by 1.3% and total revenue increased by 1.5% on pcp. Operating expenses of $17 million were 6.8% higher on pcp, which was mainly due to the expensing of Strata development costs from 1 July 23. In FY '22, Urbanise capitalized $930,000 in Strata development costs. All development costs are now expensed. Excluding this, adjusted operating expenses rose marginally by 1%. This contributed to an EBITDA loss of $4.2 million, which, as I just mentioned, was a $900,000 decline compared to FY '22. Urbanise' net loss of AUD 5.67 million was a $231,000 improvement compared to pcp. The waterfall bridge on Slide 20 shows the growth in license fees between FY '22 and FY '23. Underlying license fee growth of $1 million versus pcp came from new wins in FY '23, the implementation of the 1 July '22 backlog and organic growth, half of which relates to price increases. The $800,000 reduction in license revenue was due to the reduction in licenses by Ventia, small customer churn and the loss of a contract or lot under management by 2 APAC customers, 1 in Strata and 1 in FM. FM license fees were 2.7% lower versus pcp as the conversion of backlog, including Colliers from Q4 FY '23, new contracts and growth from existing customers was offset by the reduction in Ventia license fees, contract loss by an APAC customer and some small customer churn. Strata license fees increased by 4.3% due to new customers, including a large Middle East Strata manager as well as small customers in APAC and the Middle East. This was offset by a reduction in license fees from 1 APAC customer and some other smaller customer churn. The waterfall bridge on Slide 21 shows the movement in expenses between FY '22 and FY '23. The AUD 1.08 million increase in operating expenses was largely due to the discontinuation of the capitalization of Strata development costs from 1 July '22. Excluding this, the adjusted operating expenses increased marginally by 1% or $152,000 despite the additional development spend on Colliers in the Middle East. The 1% increase reflected the following: Contractors and travel costs associated with development for the Middle East and Colliers projects, an increase in cost of sales related to third-party integration and hosting costs, one-off tax compliance and subsidiary company setup costs. These were partially offset by FY '22 nonrecurring termination costs and net employee cost savings during FY '23. Slide 22 shows the performance of the facilities management platform for FY '23. Facilities management revenue was 7.8% lower on pcp. License fees decreased by 2.7% with growth in new and existing customers, including Colliers offset by the loss of $491,000 in revenue from Ventia, the loss of a contract by an APAC customer and small customer churn. The decrease in professional fees reflects the inclusion of a significant amount of development costs relating to Colliers in FY '22. There are around 2,610 facilities users billed for the month of June '23. The backlog at 1 July '23 includes 3 contracts and is valued at around $400,000. It includes the remainder of the Colliers Australia project, which is expected to complete the rollout in H1 FY '24. Turning to Slide 23. The Strata platform's performance for the year showed solid revenue growth from existing customers and the rollout of backlog customers. Strata license fees increased by 4.3% and professional fees were 47.3% higher due to a major project with a Middle Eastern customer. The Strata revenue increased by 7.9%. The number of lots billed was around 684,000 for the month of June '23. The backlog of AUD 400,000 largely reflects additional Strata lots for PICA. Our cash flow statement on Slide 24 shows our closing cash position of $4.25 million at 30 June '23. This includes net proceeds of AUD 3.31 million from an institutional placement, which was completed in June. Underlying average monthly cash used was $223,000 in FY '23 versus AUD 241,000 in pcp. Cash receipts were AUD 13.7 million, an increase of 1.1% compared to pcp driven by revenue growth and our advanced billing strategy. Slide 25 shows our progress to managing cash over the past 6 years with the dotted line depicting the average monthly cash used excluding capital raises. Underlying average monthly cash used was AUD 223,000 in FY '23. We are currently reviewing the cost base to reduce the monthly cash burn, as previously mentioned. The balance sheet slide on 26 shows a closing cash position of AUD 4.25 million with no material debt. Debtors increased by AUD 1.24 million since last June, but this is largely due to a significant level of billing at the end of June '23 and some late receipts in the Middle East. We continue to work closely with RERA on a solution for earlier collection of invoices from Dubai Strata managers. Development relates to the capitalization of development costs. The reduction from June '22 reflects the change in accounting treatment as the development costs no longer meet the accounting requirements to capitalization due to the maturity of the Strata product. I will now hand back to Simon.

Thanks, Dave, and I'll now briefly address the FY 2024 outlook, which is summarized on Slide 28. Over the past 12 months, the Urbanise team has focused on executing key platform improvements and researching future product enhancements that is critical for our target markets. As a result, we believe we are well placed to leverage immediate sales opportunities for Strata and FM. During the first half of FY 2024, we expect to complete the integration into RERA in the Middle East and a contract renewal process with a key APAC Strata customer. We have also commenced an operational and cost review that is expected to drive a reduction in cash used in FY 2024. And we continue to drive improvement in working capital, as Dave mentioned, and we'll closely monitor our cash requirements as we make further progress towards our target of getting to cash flow breakeven in FY 2025. I'll now hand back to the operator to open it up for any questions.

[Operator Instructions] Our first question comes from the line of Sam Pittman from Taylor Collison.

Just a quick one. Could you talk or expand a little bit more on the operational and cost review? And I suppose what prompted it? And what are you hoping to achieve per this review?

Yes. Thanks, Sam. The cost review and operational review are a natural point for us to review our cost base. We've -- as you might have followed over the past 18 months, we've invested quite heavily into both platforms, 1 for Colliers or Colliers related to Urbanise FM and the other being the Urbanise Strata investment, particularly related to the Middle East and RERA. And as the development starts to ramp down, and this is as per our -- I guess, our product road map in both -- for both Urbanise FM and Strata, we've got some work left to complete up to September 2023 as mentioned. It's a natural time for us to review our cost base. Included in our cost base -- and if you track back through some of our announcements almost a year or so ago, we have taken on some contractors to accelerate the development. So it's really anticipating that heavy drive or significant drive in development to start to ramp down. And for us, the review our cost base, number one. And then also to look at our efficiencies of development generally to see if there are opportunities for us to do it more cost effectively. I will emphasize it's -- and whilst it will, of course, help the cash burn situation. It's not a sort of drive just to cost save. It is a natural time for us to review our development in the wake of a ramp down.

Our next question comes from the line of [ Roderick de Abertis ] from [ Sirius ].

I just got a handful of questions. What is the path to break -- what's the path to breakeven? When do you think you'll be cash flow neutral?

Yes. There are several points for us to execute in terms of cash flow breakeven. Firstly, sales and executing our sales strategy. In our -- we have outlined to the market that our target markets in Strata and FM span across the Middle East and Australia, which are our core markets right now. We have existing customer base, and we have generated a strong pipeline of opportunities in both those markets across both our platforms. In terms of -- as I mentioned in answer to Sam's question, we are undertaking a cost review, which will help to the cash flow breakeven situation and also managing our working capital as well. So we do have a negative working capital strategy. But it's really the license fee revenue, the professional fee revenue that we generate out of the implementations, retaining our customers. So at the end of the period, we have a reported ARR number of AUD 11.56 million, CARR number AUD 12.4 million, implementing the backlog that relates to -- includes Colliers, some backlog relating to a large APAC Strata manager, ensuring that gets completed this year. And the new sales, as I mentioned. So it's -- the path to cash flow breakeven is reviewed very, very closely by obviously, the senior management team and the Board. We forecast that out based on all those assumptions around the pipeline, our cost base review and we're of the view that by FY 2025, that the business will reach cash flow breakeven.

Okay. So FY '25. Can you give us a bit more color on some Colliers joint venture or the partnership that you've got, like, it seems like it could be an interesting catalyst for growth in the FM vertical, but I just couldn't really gather its potential from the slide deck.

So we secured a contract with Colliers Australia, I think in FY 2021, so almost 18 months plus. And the contract was to -- eventually to roll out our platform across their Australian portfolio, which is a national portfolio. But in doing that, we have worked closely with Colliers. That contract included development of our platform. And it is a contract that we have as a vendor to them, but the relationship we have is very much a partnership. Leveraging our expertise in development and our existing platform and also their expertise in servicing national portfolios of property, as well as commercial property at that. It has been a good relationship for us. It has led to Colliers New Zealand. And within the Colliers stable, particularly the APAC region, there is a close relationship between the different businesses within Asia, so Singapore and other parts of APAC. So it has been good for us. We've benefited greatly from their expertise and how to take our platform from where it was, which was a work order management -- a strong work order management platform but really adding that layer of building locations, risk management, supplier compliance that really should resonate through the commercial real estate space. But the added benefit I would say is that our platform now can really appeal to customers who are managing national portfolios. So that's 1 reason why what we're seeing as far as our sales pipeline is concerned is that the average value -- contract value of those pipeline opportunities is increasing. I think a lot of our pipeline, if you go back 2 years ago was, we had some larger ones, but also a lot of smaller ones where you've got customers who are managing portfolios on a state-by-state basis. This is more -- we've certainly got functionality now to lock down trades, lock down buildings for a specific facilities managers, so we can breakdown portfolios within the customer group.

So if you had to sort of pin it around -- to properly understand the growth opportunity, what would you say that the USP, unique servicing proposition or competitive advantage of your -- of the Urbanise FM offer is relative to other players. What would you say in addition to...

The #1 USP that we outline to customers is our speed to mobilize. If you look through our backlog and I will make an important point, the backlog has always sort of set for fertilizing around $900,000 to $1 million. And that's not reflective actually of how quickly we can mobilize the FM platform. One of the important things, particularly for FM outsources is they tend to have upstream contracts themselves. It's -- if they're servicing their own customers, they may have a 3-year contract and the 1 plus 1. So the mobilization of the platform across the portfolio is key, so that customers can execute and start making profit. Our platform is fast to mobilize. And over the years, that's supported by our integration strategy. So we -- as I mentioned earlier, we are very, very strong on the work-order management side. And over the last year, we have invested in our APIs. We've brought on a third-party integration partner that allows customers to bring in other technologies as well. So you do tend to find from service provider to service provider from sector to sector, aged care to retail, but different customers will want to mix and match different technologies, and we are now able to do that. So we have a [ reintegration ] strategy. And also our analytics -- sorry, there's 1 more, our analytics, particularly in the aged-care sector, we invested into the asset management planning requirements for that industry, and that's what we believe will help us leverage through New South Wales legislation. Those are 3 key areas. I guess also, the other thing I would add is that generally, on a more global aspect, the regionalization required for Urbanise FM is far less than Urbanise Strata. And so we can take the functionality from region to region quite easily.

Got it. Just 2 quick final questions. When I look at the balance sheet slide, it said that you raised like $100 million of capital. That can't be right. What's -- in Urbanise' current form it's only a 10-year history or so of the business, what's just the amount of capital that Urbanise as a business in its current form has raised so far?

I mean, obviously, accumulated losses represent in its name, in its very essence, the accumulation of capital deployed. And just very, very brief history here. Obviously, the business IPO-ed 7 years ago, I believe, in 2014. And obviously, that balance sheet at that time would have inherited accumulated losses. So you're right. I mean it's not -- I suppose if your question is, is there another significant amount of capital losses to accumulate in relationship that's equivalent to that...

My question is [indiscernible] in the last 10 years, I'm just saying like -- it's probably dumb math, but not helpful. In the last 10 years, how much has the business raised to get to this point?

It's not that...

Your market cap is AUD 35 million, has it raised AUD 35 million to get to this point. I'm just trying to work out market cap versus funds invested. So what's the cost to get to this point?

I don't have that exactly in hand, but it's -- I can tell you it's not that AUD 104 million. There's a lot of -- I can come back to the exact figure. I think obviously, we can track back through.

Yes, it's interesting to see like yes, look, if you're sort of doing like a buy versus build analysis, what's it taken to create this platform at this point? I just [indiscernible] has it been from...

What I will point to is that if you do track back earlier, there are some technologies there that the business no longer has, and that's a different -- represents a different history for the business. So I [indiscernible] history out there.

Yes, yes. If there's a way to sort of normalize that equity line, so that we could sort of work out the before and after of what's relevant, that just would be helpful, unless [indiscernible].

I mean [indiscernible] basis, obviously, we're very focused on cash flow breakeven. We've made quite a significant investment in the platforms over the last 18 months. And so when we look at the balance sheet, when we're looking at the cash flow breakeven, we're really looking at, obviously, fund the R&D through our cash flows. We don't -- we no longer capitalize that. So I think we're looking forward, I understand your question in relation to the historical accumulated losses. But I don't think that's reflective of where we're going.

No, I'm just wondering what it's taken, just for the current, say, Strata and FM, like what's the capital that's been sunk into it to get to this point, but I'm happy to learn about it later. And then, I guess, are you able to give a forecast for FY '24? Or is it premature to do that now?

Look, in terms of the outlook, we are targeting cash flow breakeven by FY 2025. We're not forecasting revenue or -- not for the market, we're not forecasting that.

I would now like to turn the call over to Simon Lee for closing remarks.

Thank you. Thank you all again for your time this morning. I do believe that Urbanise is well placed to deliver long-term sustainable growth, which reflects our highly recurring revenue base, our innovative platforms and our growing sales pipeline. The Board and the management team will continue to work hard to execute on our strategy and progress towards the sustainable cash flow position. We look forward to updating you on the business at the next quarterly results. Thanks again, and good morning.

Thank you, ladies and gentlemen. This does conclude today's call. Thank you for your participation. You may now disconnect.