Activeops (LSE:AOM) — Full Year Results

0:00 Good morning, and welcome to the ACTIVEOPS PLC Final Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just simply type in your questions and press send. Before we begin, I would like to submit the following poll. I would now like to hand you over to executive chair, Richard Jeffrey. Good morning to you. Good morning. Thank you, and good morning. Welcome to everyone on this web webinar. I look forward to taking you through what has been, by any stretch, a a really strong year. So Emma and I, hopefully, between us can can describe some of that, and and and perhaps there'll be some questions at the end. So let's get started.

0:48 So firstly, for those of you who don't know ACTIVEOPS, a very brief overview of the company. We're a SaaS software company. We provide decision intelligence software for enterprises, particularly banks, insurance companies, and organizations who have large numbers of people doing, let's call it, administrative tasks, processing paperwork in in in its myriad and variety of forms. We're very global. We operate in around the world with, three regions, EMEA, and North America, and APAC. And, essentially, associate we're we're primarily a SaaS company, which brings all sorts of virtuous things we can talk about around recurrent revenue. But associated with it, we we do the services for installation, and that varies from from from sort of project to project and and and profile to profile.

1:33 So we have three products which you see on screen there. We have a desktop analytics product, which essentially sits on people's desktops for seeing and and the applications they use. And And we have our Control IQ product, which helps people manage work and time. It's it's the core system that that that is used globally for for balancing work and resources across teams. And then in this increasingly complicated word world with more and more automation, we have CaseworkIQ, which which is provides a similar sort of control system, if you will, over the the over the the the the complexity of exception handling and complaints handling and the things that don't lend themselves to easy easy counting, of which and we will talk more. So what's ACTIVEOPS about? We we want to we are all about enabling organizations to deliver more successfully, ultimately managing within the constraints they have, their investments in resources, technologies, and systems, and play their particular piano really, really well.

2:34 We help them with the information it takes to make the allocation of work and resources. And, historically, that's not necessarily been done terribly well. It tends to be very localized. ACTIVEOPS brings a level of system and structure to how that's done with all sorts of virtues that arises from that. Your your your managers operate, if you like, to a common road rhythm. Your metrics are more consistent so you could have conversations about this. And in this increasing world of agents, robots, and and other forms of sort of automation coming through, it's not just about how you do it. It's the precision with which you do it. And ACTIVEOPS is, I think, we can justify the claim being world leaders in this particular space, in this sort of complex world of operations where where processes and systems are so myriad and diverse, but at the same time, we have to better optimize the whole thing.

3:24 And on the screen there, you can see some of the sort of feature ways in which we present it. Now the ACTIVEOPS products essentially is now moving from, if if you like, that balancing of of a human capital against work to in in in an increasingly age an agent AI world to there's a new there's a new game in tag, which, of course, is it's not the the use of AI per se, which is the challenge. It's the blending. It's the balance between the allocation and use of AI amongst human activities. And, of course, whilst every organization is rushing towards AI, it's a transformation journey. It's not an end state. You can't wish it that way. You have to manage it. And so for ACTIVEOPS, it's a very exciting time right now because what organizations, I think, are really beginning to appreciate, and I'll talk more about this, is is that that the control they have over that was human processes and systems doesn't really cut it in terms of actually being able to give the precision of control that they need to be able to really exploit AI. So we're we're we are presenting ourselves very much in that kind of three step journey you see on the right there, which is the ability to make the right choices. There's so much to go at. Where do you go first? And I'll talk a bit about that. It's about actually then executing, actually, if you like, delivering the processes to to plan. I mean, a transformation that goes to plan would be unusual in most of our clients' basis, so you're actually releasing that full potential of what you think you can achieve. And then, of course, securing it. So many programs at the end of the day when when when changes

4:55 occur, you know, history reinvents itself and and some of those benefits get get get sort of lost. And so ACTIVEOPS is all about helping you secure and sustain that that release of potential. So it's a very exciting time for us at the moment. And in the in the results in a moment, Emma will talk to you some of the figures. But we've got a couple of case studies here of examples which have been well publicized, and there's much more details on the web about this. One of our big customers in in Canada is a is a fund administrator, and and they're a really good example of they introduced ACTIVEOPS to help them run their operations better, delivered all the productivity gain that we would normally expect because so much time does get lost. But what they particularly have what's been transformational for them is that as part of their automation journey, they are able to use the ACTIVEOPS data to direct what processes were changed and ultimately cash that check.

5:47 So that's a whole choose release protect cycle is is in that case study, and and and and the management team there would would tell anybody who wants to hear about it that it has been such a fantastic success in their professional experience of actually delivering on what they thought they could do. The second one is a a well established customer of ours. We talked about it before in these meetings at our conference in Nedbank. But, again, it's the same sort of context of the support for transformation. So so Princely here was was was a operations leader, but the data he had in his in his system to actually focus on the areas of of of change that could make the greatest impact through the use of robots automation and other levers he had was for him absolutely, you know, foundational the progress they've made. Much more information on our website. I direct anybody to some of the the super video clips and talking to leaders there to to get a flavor at different levels of what ACTIVEOPS does, but I just wanted to kick off a little bit.

6:46 I've got context. So let's talk about the year. Essentially, it, by any stretch, has been the best year for ACTIVEOPS ever. We have it's the growth the fundamental growth of the business has has been outstanding. New customers, we sustained nine new logos in last year, which which is, again, is is just a symptom to I mean, an enterprise customer level. You know, that that's a lot of work and a lot of a lot of sales activity. But but more importantly, the underlying growth. I mean, yes, we've made an acquisition, which is added to it, but I wanna make a clear distinction between these sort of mergers and acquisitions growth, but from the organic growth. The fact that we're we're growing at the rate we are from the core business we have is fantastic. That NRR statistic, So the amount of revenue we get from our existing customers year on year going up to a 119%, and that's a massive growth driver.

7:38 And we'll talk later about our target addressable, but, again, that just expands in front of us. There's so much more with the power of the product to to do it to to to do more with our software as as our customers appreciate the value of it. So we're really using our functionality to extend the use of ACTIVEOPS across expanding our TAM. And then as it's been a real important part of the of the year's success, that that acquisition in Lighten in July last year or beginning of August, you know, obviously, we're we're well down the tracks now, and effectively, it's fully assimilated into the into the business. Behind that, and Emma will have us talk about this, the this this success, let's say, of incorporating to the portfolio, but also achieving the savings, I think, is another neat notable achievement. Along the bottom there, you can see how it's distributed across our our different regions.

8:26 The key point is it's it's consistent across the regions. Canada, South Africa all stand out, but, fundamentally, this is a symptom of a problem we serve. We provide a solution to a problem that's that's that's a that's a global one for our type of customers, which speaks to the growth and consistency. So all in all year that I think we've got a a lot to lot to be pleased with, but also is is incredibly foundational for the momentum we're already enjoying in the in the current year. So enough for me. Emma, change your voice. Over to you. Perfect. Thank you very much, Richard. So this year, I'm very proud to report another set of strong results for ACTIVEOPS. So on this slide, we've got a number of just the key highlights from a finance point of view. So in terms of organic growth on SaaS, we delivered a 23% uplift on SaaS, revenues on an organic basis.

9:15 We've closed the year with, 41, point 5,000,000 of ARR, of which GBP 4,900,000 of that has been derived from the acquisition of Enlighten. We've seen an improvement on the adjusted EBITDA margin. So last year, we reported an EBITDA margin of 8%. This year, that's increased up to 10%. That does exclude, exceptional items for the acquisition of Enlighten, which were £3,000,000. And then from a cash point of view, we ended the year with 23,800,000 of cash, which give us a healthy cash conversion of 295 percent. Just going into the p and l performance in a little bit more detail. So the total full year revenue recognized was 45,000,000.

10:00 The split between SaaS revenue training and implementation services is an 85% weighting towards SaaS and a 15% weighting towards training and implementation. In terms of the definition of training implementation, that is very much as going on-site and implementing the licenses to customers. And in terms of the gross margin, we've maintained a stable gross margin of 84%. That rate has been reported, and we've delivered that for a number of years now. From an operating cost point of view, you'll see on here that there is a significant increase. The main driver behind that is now the inclusion of the Enlighten OpEx. So around GBP 6,000,000 of additional OpEx was recognized in the year directly related to nine months of trading for Enlighten.

10:47 In terms of adjusted EBITDA, we reported 4,300,000 versus 2.5 in the previous year. In terms of capitalization, so we do capitalize r and d. So we capitalize capitalize 2,200,000 in the year. That was an increase to the prior year where we capitalized a million. And the main drivers behind that is we actually ran two significant developments during the year. So the first one was the next in this series called series five, and then also the WorkIQ convergence as well. In terms of the SaaS model, so one of the key, metrics around SaaS that we report is our NRR, so our net revenue retention rate. So we have historically reported a rate anywhere between a 108, and a 110.

11:36 This year, we had an exceptional year. We reported a net revenue retention of a 119%. And it is worth just flagging that does not include the Enlighten net revenue retention. We've excluded that. So this is purely an organic NRR rate. As you can see from the chart in the middle, the column on the very far right, you'll see a breakdown. So the total annual recurring revenue increased by 46%, of which you can see the orange box at the top represents Enlighten. And then the other two boxes represent what has come from existing customers, and then also what the growth has come from from the new logos that we've acquired during the year. So as you can see, 19% of that came from existing customers. Just on this next slide, this is the ARR walk across. So to give just a little bit more flavor around where the growth came from, so if you look at the 19% of growth that came from the existing, so the first box on here, that will that has come from a mixture of a number of things. So firstly, annual price increase. We've also got the upsell and to the multiple series that we have. We'll also have cross sell, and then also we we will have your more traditional just standard seat expansion.

12:46 In the pink box, what we've got here is the growth in ARR that we've got from new logos during the year. We reported, nine new customer wins during the year, which is consistent with the year before and was quite a significant step up from the year before that where we had three. So we've made so we've delivered a consistent result there. And then finally, in the blue box, you'll see the uplift that we've had from the Enlighten acquisition. In in terms of to give you a real life, case study from a finance point of view around one of our North America tier one banking customers. And what you can see here is how the ARRs, the blue bars on this chart, how that has changed over the last ten years. And what you can see is a real pivotal change in the last five. So in f y twenty two, we actually introduced WorkIQ, and we cross sold WorkIQ within this existing customer. And you can see quite significant expansion.

13:39 And then the following year, we actually did an expansion to a new country, in which this customer operated within. So we saw an expansion of Control IQ. And then over the next two years, we also cross sold Casework IQ. So really what this story here is showing you is our ability within an existing customer to cross sell and upsell within an existing customer base. We've got some statistics across the bottom. So very much, I've talked about what this means to us financially, what this customer means to us. What we've got across the bottom is what do the customers gain from using our software. So within this particular customer, they've seen an increase in productivity of around 18%. They've identified annual savings in one particular area that we've looked at of around $2,000,000 per year. And they see a reduction in the case backlogs, and they also see a reduction in the cost to serve.

14:34 We've also included another case study this year. So this is one of our UK tier one banks. This with this particular customer, we reported two years ago that they gave us notice of a partial termination. So what we wanted to do this year was sort of to show you how this customer has evolved since since that announcement. And so as you can see over the last four years, we had a large expansion across multiple areas and geographies within this particular customer. And then last, in f y twenty five, they gave us a partial termination. That didn't work out. And what we have seen is we're able to reverse that termination. And actually, the real success in this account is actually they are now back to being a growth customer with us. And over the last two years, their NRR rate exceeds a 110%.

15:24 Richard has already sort of touched on how the integration has been going with Enlighten. And so where we are at the end of the financial year, we already taken out £3,000,000 of annualized cost. That cost has come out at different parts during that financial year. So when you do look at our OpEx cost at the end of FY twenty six, it will be overflated, depending on at which point we execute. But most of that cost saving actually happens towards the back end of the financial year. And and we've already identified and actually executed, a further £1,000,000 of savings that will be coming out in this financial year. We now operate as an overall group. So and what I mean by that is Enlighten is very much integrated in the operations of ACTIVEOPS. There is no distinction between the two.

16:10 We've completed a formal review of the software platform, and the outcome is that Control IQ, was the strongest fit. So there are a number of features, that we had within the Enlighten software that we're in the process of building within Control IQ. So the plan very much is to migrate the Enlighten customer base across our Control IQ, software. And I will give a bit of an update just on the deal financials. So we we did announce as part of the trading update that one of the customers of enlightened have has terminated. When we scoped the deal and when we shut the deal initially, there was always particular risk around this customer. The deal was structured that if that customer did terminate, earn out would would reduce so and such that we actually wouldn't pay for that canceled contract.

16:59 So we have seen a reduction in the deferred consideration that we currently have in the accounts by £3,500,000. And in terms of the post synergy EPS, accretion, we're very much on track, with where we thought we would be at the time of the acquisition. Just to touch upon the updated numbers of the TAM that we report. So when we did the Capital Markets Day at the back end of the last calendar year, we very much talked around our ambitions to be a 100,000,000 ARR business in the medium term. What gives us comfort and reassurance around how achievable that number is is the TAM. If you look, at the existing customers that we have today and you look at the growth potential within the existing, we believe that there is a 150,000,000 of incremental ARR from where we are today within the existing customer portfolio.

17:52 That has increased from a 130,000,000 last year, directly driven by the, inclusion of the enlightened customer base. If you then look at the TAM across the top two fifty target accounts, that's actually increases our TAM to 1,400,000,000. So that is looking at just purely the target two fifty accounts within the sectors in which we currently already operate into the financial services, health care and BPO sectors. In terms of the cash and capital allocation, so here we have a chart that shows you the movement from a cash point of view in the year. So as I already mentioned, we've had a really healthy cash conversion of 295% in the year. We also paid out 6,400,000, for the for the initial consideration of Enlighten.

18:40 We are due to pay part of the earn out, the first stage of the, contingent consideration in August. So that will be 5,400,000. And then we are due to pay the remaining balance, which will be around 700 k in August next year, all of which we'll be funding within our cash current reserves. We did also flag as part of the trading updates that we've sold, our trademark WorkIQ to Microsoft, for 10,000,000 US dollars. That completed at the very start of April. So that cash inflow hasn't been is not represented in these numbers and will be part of this year's, cash position. In terms of where we are from a capital allocation, so in and this is in order priority. So our first priority is to use our, the capital that we have as business on organic growth. So that's investing in our current sales and marketing strategies, looking at the partner channel, and continuing to invest in the product.

19:36 And then secondly, the second priority is m and a. So very much looking at businesses that would be EPS accretive to us as an organization. And then finally, would be return to shareholders looking at different options around share buybacks or a change to dividend policy. But that's sort of the order, of preference as it stands at the moment. So what are the key takeaways from that from my point of view? So we are expecting ARR to grow in line with the current market forecast that we have out there. We have an incredibly strong balance sheet and we've got no debt. As a business, we'll continue to be strongly cash generative. And our vision to be a 100,000,000 and a 25 percent EBITDA margin business still very much remains in our sights and in our ambitions and expectations for the group.

20:27 And that is all from me. So back to you, Richard. Thank you very much for that. So, really, when I'll pick up the story, because, obviously, it's about where we go from here as much as where we are, and picking up the picture that we were used before. So we now have this kind of what we call the hat framework, which is effectively the way in which we support our customers customers to to manage manage that that human automation and increasingly token based pricing. Because just to give some color on this, many people on this call may well have had the same experience of of slightly sticker shock in the last couple of months as as as firstly, the Anthropic and then and now Microsoft as well have moved away from that kind of flat fee to a a variable consumption based charging model. Suddenly, it's a that's a that's a huge new issue that has to be managed. So suddenly, the the if you like, the management of of of this type of input resource is is like a as as as an acute problem. How do I manage that? So ACTIVEOPS is positioned to apply the the effectively the standard we already have to help our customers manage what what and potentially, of new customers as well, manage a a really burning issue is is is very exciting.

21:38 So that what what that means in practice is is configuring our products. So firstly, to operate in on an enterprise platform basis so that we can actually provide support for all sorts of work across the organization. Interesting example last year that came out was was using our WorkIQ pro program to help have visibility of a sales agency within a large organization. They have a lot of relationship directors in this particular organization, and they used our information system to be able to work out how just how much time was being consumed, if you like, in the in the non value adding activities and the and the and the type what we would call diverted activities, not customer facing. And just by having visible data across the whole dataset, the peak number of people was had had a hugely positive effect on, firstly, identifying where time should be spent and then, you you know, focusing attention to the right places to have it.

22:31 And, of course, that that came through not in productivity, but in sales effectiveness. So it's a really nice example of use of ACTIVEOPS in in in in in in in a broadening broadening way. I think that speaks to that expansion in the TAM that Emma's mentioned already. We're looking at how we we we change our pricing model reflecting the variability of human and and and AI. Increasingly, think we'll be moving to more of a platform based fee, but but with elements of of those sort of variability associated with size. I I mean, we've mentioned about series five coming out. Series five is is aimed very much about transformation agenda. It's helping customers to firstly plan, manage, and then execute the the that that the combination of the things they needed to move and change all the time because that is the challenge for our organizations that we serve. They are such complicated, multithreaded activity, you know, organizations with simultaneous change happening.

23:27 And and the kind of data and the process we provide does does give them such such improved level of granularity and visibility over how to make that those changes work rather than if you like travel and hope. So there's a lot of really good market drivers for us, which is stimulating the the the interest in the need for better control at an operational level, which which, you know, when we're market leading in, gives some traffic towards us. We spoke a lot last year, and I'm giving some feedback here on on we we've we've been growing our sales team. So so part of the the investment that we're we're seeing in the last year last year is in this. This slide just gives you some some scale on that, 12 new senior sales hired, and and just reflecting the the broad growth in the business, how that's distributed across the world.

24:13 Now ACTIVEOPS is a is a sells to enterprise is long lead times, but but in terms of the sort of symptoms of success, when when we measure our sales cycle in in in it's certainly in in in multiple months of years and so on. We've had sales and this new card of professional sales, we've had some conspicuous success in accelerating some deals through, so deals that we already had that have moved more quickly. And in against one case, a nice, a project that came in less scale remarkably quickly that we probably wouldn't have got before. So I think that card is really making an impact. But, really, the real difference is now in the pipeline and seeing that pipeline both in size and volume build around the block. So so it's it's it's a journey. I mean, I'm reporting on results of revenue we earned last year on deals that were probably, actually, it worked the year before that and probably sold the year before that. So it's very important to understand that dynamic. And ACTIVEOPS is a massive flywheel in terms of that recurrent revenue, and the new projects coming onto that flywheel, you know, the lead time to get them into revenue is is is is lag. So this investment will pay off, and it is already paying off, but it's really will come through in the next, you know, two to two to three years.

25:23 What we're now doing and where the focus is for the current year is building out and addressing that TAM in our customer base. So what at the note there, it says we're investing in our customer success function. And that, again, is raising the caliber, more executive level speakers to represent us and be contributing to our clients' transformation journeys because we want that NRR. We want that growth. We want to expand to regions where we know we can add value, but you've gotta be at the right table to have the right conversation. So so as a company, we're really investing in that customer success function. And that's a great example where, to Emma's point earlier on, our use of capital, we're just being very deliberate about where we do spend. I mean, there's an element of our business as it grows, obviously, obviously, that that scales proportionately, but also making those deliberate investments in areas where we know there'll be a payoff. Because that investment in customer success improves the outcomes of projects, but it also builds that relationship to farming and and growing the NRR over years to come.

26:19 The other thing I spoke about at the Capital Markets Day and is well underway now is our our moving more towards, working through partners. And, again, this is a this is a payoff that will happen, and this is the thing that will not only towards support us towards a 100,000,000, but, frankly, is the thing that will accelerate way beyond that. Because, obviously, what we want to be able to do is distribute with with with other parties and not rely on our own sales capacity. So we appointed a group head of partners earlier in this year, and I think where we are today is is is exactly where I want to be. We've we've got some really strong developing relationships with some tier one and tier two consultancies with specialists in this field who can take us to markets we've just never been to. It's a co sell function. We just it's not a wholesale resale arrangement. We're with them at the table, and takes an education process to join, and there's lots of really good progress there. So that represents newer projects in the pipeline, and it and it represents new entries into areas we probably wouldn't wouldn't have done done before.

27:15 I think another exciting area for me is also in in in software related partners. So we have a number of customers of ours who also sell their software, so business process, ad sources, where they're that alongside alongside delivering with people and set technology product to customers, they sell the platform technologies that they they they use themselves to other people who self administer. And we've got two particular examples developing where they where they've already wrapped ACTIVEOPS around that production system, and now their software arm is taking ACTIVEOPS to go to market in conjunction, you know, as part of the bundle. And I think those sorts of things are really interesting because that's organization set up to sell software, and and and and that that makes a lot of things sort of aligned with our business model very well. So I think where we're where we're where we're getting to with our plan for the '27 is, let's keep going and do what we currently do very well indeed. So we're really making sure we're at the heart of automation. We're really trying to think about the problems our enterprise customers have in terms of man not only using exploiting AI, but controlling the beast.

28:21 This business about metering it. Just because you meter something, they'll get the bill, but it's too late. We've gotta have a we we're helping our customers manage the problem. How do they allocate AI resources? How do they make the it actually worth having Claw do something, or is it still worth doing that project, that work activity in Manila? So providing the instrumentation to have that kind of choice, whether it's what we're gonna do today and how can we and can we have do we have the token budget through to what is the right place to do that work, even at that operational, tactical, and strategic level is a really, really burning issue for so many organizations right now. We do create create scaling our demand engine, which is the marketing support. Because if we have got that kind of external driven demand of a problem that needs solving, our marketing function actually changes quite significantly because we've got to manage and support and attract that attention.

29:16 It's a very different sort of opportunity. And clearly, building on the scalable foundations of business because I don't want ACTIVEOPS' reputation to depend on single heroic activities of a particularly good implementation team. This is a this is a global company that's operating very successfully internationally, and we've restructured internally to create a kind of delivery function now, which I think is both efficient, interacts with partners very well, so we build their capability and ultimately deliver some, you know, capable of delivering some very, very large projects indeed. We've had a a sound first first quarter. You know, momentum continues to build. I think there's been another sale in the course of the time since we went to print on this, which is a UK, but globally operating insurance broker, and and just the sort of momentum of the business is continuing. I mean, the global context for, you know, the world is is not making decision making in our customers any easier, but there's nothing like having a burning problem to make people focus. And so to some extent, I think that the control of the relevance of our stuff to helping people manage something that they know they need to get on with in terms of, yeah, use of AI, safe use of AI, meeting constraints, meeting the expectations of their shareholders, and and and and keeping the keeping the lights on. Because at the end of the day, if you if you run an ATM network, you can't you can't afford for it to go down. And so they always have that sort of paradox of sort of six impossible constraints, all of which had to be done simultaneously.

30:39 So so overall, we're trading in in line with expectations. I think there's one point Emma alluded to, and it's worth noting. Our exit, if you like, overhead cost had all the overhead of of enlightenment and other things as well in train. I think the half year will be a much better guide to, if you like, the underlying operational gearing that's flowing through the business right now. I Emma told you we'd sold we've already saved 3,000,000 and coming on to the 4,000,000 of the inline cost. But by context, that's on the original cost base when we took it on at 8,000,000. So that's the scale of difference and the absorption and, ultimately, the gearing that will flow through to the business. So a lot to be excited about. The the the fundamentals of the business and for the you've seen me before talk about ACTIVEOPS on the screen now are the things that we absolutely are are are cornerstones of our success. You know, we sell to blue chip customers with a large problem or an ongoing chronic issue around productivity management, which they always need help with. The market's expanding.

31:36 The fundamentals of a business model are pretty simple. You know, recurrent software revenue on an annual advanced basis. It's it's and with a high gross margin. But the nice thing is with the headroom and the cash we have on hand, we are making these selective investments to really accelerate. And as the enlighten opportunity demonstrated this year, we have the opportunity, and we can take the opportunity to the business is strong and resilient enough to take on something like an enlightenment and effectively not miss a beat. So, you know, this isn't this isn't easy. It's, you know, another time to be complacent. I think it's just absolutely a great place to be right now, as well as, frankly, you know, being on the the being a a UK tech company listed on on the London Stock Market. I think it's, it's been the right place for us. And as ACTIVEOPS as an organization, I think we're going going from strength to strength.

32:27 So that's it. Happily take any questions. If there are any on the chats, Over to you. That's great, guys. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you the recording of this presentation along with a copy of the slides and the published q and a can be accessed via our investor dashboard. And Richard, MF, I may now hand back to you to take us through the q and a, and I'll pick up from you at the end. Thank you. Thank you. The question on screen is from James. How do you see a platform and variable fee impacting margins in ARR? We're doing a lot of work right now. We have a firm called Simon Kucher Associates, which is a specialist SaaS software pricing advisory, and we've used them very successfully in the past to help us with this.

33:22 And ACTIVEOPS, I don't think will ever be a kind of innovator in the pricing model with with with the other other bigger fish than us will will be wrestling with this this this move. But I think there's no question, you know, the fundamentals of of being in control are gonna be there. They've just got if they've almost got more instruments than the orchestra to manage with AI. And so are the the need for tools to help with that. The the the first you then go into pricing, as you say, about how do you charge for that if there's number lower numbers. Ultimately, I I I can only see the it's a it's a value driven argument. The value of having active having ACTIVEOPS if we sustain that, like, that 25% or so efficiency gain by simply optimizing your resources, You know, that's an ongoing value. And as long as we can maintain that linkage and the effect for the risk of not having us in that context, I think our price point is very, very strong.

34:16 It's not a direct answer to the variability of of volumes. What it will do, I think, ultimately is make our our gross margins probably more stable. Not that it hasn't been stable because it's a lot of big numbers. But I I I think the the fundamental economics of the business don't don't go away. You can charge linked to value, and the cost of production is very low. And then it ultimately is a business decision between Emma and I about how much resources we carry to, you know, to grow and sustain. Thank you, Richard. I'll just give it a couple of seconds. And if there are no further questions, Richard, if I may just ask you for some closing comments to wrap up, if that's okay. Thank you very much. Well, I think everyone's probably heard it, but it's been a cracking year for ACTIVEOPS. But in anyways, and the message internally as much as externally is is that, you know, the best is yet to come. So so let's let's, you know, let let's be grateful for where we are relative to a lot of companies and and make the most of the opportunity because we certainly have the opportunity.

35:19 Thank you very much. Fantastic, Richard. Emma, thank you once again for updating investors today. Could I please ask investors not to close this session? As you know, we'll be automatically redirected to provide you feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you.