Checkit (LSE:CKT) — Interim Results

0:01 Good afternoon, ladies and gentlemen. Welcome to the CHECKIT PLC Half Year Results Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today, and we'll publish those responses where it's appropriate to do so. Before we begin, as usual, we would just

0:31 like to submit the following poll. And if you'd give that your kind attention, I'm sure the company would be most grateful. And I would now like to hand you over to CEO, Kit Kite. Kit, good afternoon, sir. Good afternoon. Thank you very much, and thank you everybody for attending CHECKIT's half year results for the financial year '25.

1:01 So the presentation team today is obviously myself, Kit Kite, the CEO, and Greg Price, CFO, COO. This will be Greg's last presentation with CHECKIT. We wish him all the best with the future and and his his endeavors, and we thank him for the time and effort he's invested with CHECKIT over the last few years. So by way of agenda, there's a fair bit of work and ground to cover today. I will bring us up to speed with the first half highlights for '25. And then for those that are new to the story, and indeed those who are existing holders, I will remind, the CHECKIT story, the value proposition, the points of difference before covering off on to keep it as our strategy. And then we will do a double click into our product r and d and innovation efforts before handing over to Greg for financials, and then we'll finish with the outlook and open for questions.

1:55 So we're very happy with some solid progress on all key company goals and criteria in the half. This is our first time that we've mentioned the group bookings, and those group bookings, that's net new ARR sales, have grown 38% year on year from the prior half of of FY twenty four to £1,200,000 of ARR, reflecting a number of strong contract wins that we did announce to the market during the first half. Just as a reminder for those of the new, CHECKIT contracts on three year minimum terms. So, actually, that £1,200,000 of ARR translates into £3,600,000 of total contract value. Talking of ARR, the flow through to ARR growth was at 9% to £13,800,000.

2:41 That somewhat dampened from the strong sales performance as we saw a bit of managed churn on a a couple of low margin noncore contracts to the business, which we consider to be exceptional in the first half of the year. Total revenue grew consistently up to 16% at £6,700,000, and our net revenue rent, retention rate of a 109% continues to be top quarter, and evidence of a consistent land and expand strategy being executed. We also were pleased to announce the release of our asset intelligence ML AI module in April with first contracts secured in the last couple of months of the half. Whilst on the bottom line, adjusted OIBDAR has improved by a further 24% to 1,400,000, and cash remains healthy at 7,000,000 at the half.

3:35 So a quick reminder of eyes on the CHECKIT strategy, indeed, what CHECKIT is, and where what the value proposition looks like. So CHECKIT is, in its simplest form, an operational excellence platform serving the deskless industry, and that would be large blue chip multinational organizations with tens of thousands of workers conducting similar types of task and activity across distributed operations. It is an operational excellence platform that is provided primarily by two distinct products. On the one hand, we have an automated monitoring solution, so that is Internet of Things sensors, which are integrated across an organization's critical asset base providing automated monitoring in real time and data collation.

4:22 And on the other hand, we have a task management workflow tool that provides a digital solution for the workers that are working on the front line and helps guide them through their tasks and checks, and is integrated, end to end with that automated monitoring solution, thus providing a seamless end to end set of data back up to management. Increasingly, as the company evolves its go to market and indeed its product footprint, we're seeking to then build ML AI modules that sit on that data in order to further enhance the ROI that customers get, and we'll talk more about that, later. So for those that would be considering investing in CHECKIT and those that are new, it's worth double clicking on what the investment case and story looks like. CHECKIT is is targeting the operational efficiency agenda for large blue chip multinational organizations.

5:19 Typically, organizations are are trying to solve for a revenue, a cost, and a risk imperative. Increasingly in today's market, it's cost and risk that is a priority, and this is something that CHECKIT can bring using automation and using digital. In what is a very underserved and fragmented market, we're seeking to take a leadership position in that market. We consistently are demonstrating an execution capability around what we call a land and expand strategy. So we selectively target which net new customers we bring on board, and then we seek to grow them over multiple years into very healthy $6.07 figure ARR customers into the business. This is backed up by our top quartile NRR rates that we keep and consistent report.

6:05 We're very focused where we want to play and where we want to sell. This is a company that's grown out of The UK. It is is is well developed within The UK market and indeed Western Europe. And more recently, we've entered the North American market, particularly The US as another core geography that we want to do business in. And as I said, we keep investing very specifically in innovation that seeks to monetize and take advantage of the vast amounts of data that our products are providing to customers. It's the first set the first order of data that they would have received. And, again, for final point on this, this is a business that's built around a recurring revenue subscription model. And as we'll see, that's a vast majority of our revenues. And this, again, given the three year minimum terms of our contracts, provides a lot of visibility around future earnings streams.

6:57 So what's that market opportunity if I break it down a bit further? So, again, there's two key a confluence of two key trends on the macro side that are working in our favor. One, the workforce management market and how organizations bring digital to that is growing at a CAGR of about 12%, whilst at the same time, the global smart sensor market is growing at a CAGR of about 18%. CHECKIT solves both of these problems in an end to end fashion. We often come across endpoint competitors that might provide a aspect of a task management solution or an aspect of an Internet of Things solution. CHECKIT actually seeks to bring those two together because we see the end to end offering as the key to driving operational excellence. Let's not forget that 80% of the global workforce is categorized as a deskless worker.

7:45 K? That's, like, 2,700,000,000 people, and yet 73% of those workers are still using pen and paper to do their work. So the automation and the digital opportunity is apparent, and it's now starting to be invested in quite significantly by large blue chip organizations. In terms of where CHECKIT plays currently, we're

8:03 primarily focused on the health care, the retail, and the hospitality industries. So when we say health care, that means hospitals, be they the NHS where we're heavily penetrated or private hospitals. It means care homes. It means blood plasma providers. That's about 50% of our ARR base. The retail vertical primarily means food retail. So think of food operation solutions. So think of the likes of Waitrose, John Lewis. Think of someone like BP and all their service stations, not just across The UK, but in in other locations as well. This is about 30% of our IRR base and is a consistent and sticky part of our part of our land and expand structure. And then hospitality, think of well known customers such as, you know, or Pret or Itsu, these types of customer here.

8:53 We would also include in that the large global contract caterers such as Compass Group or Selecto Group, which are also customer results. That's about 20% of our ARR base. And as we continue to scale, we're seeking to incorporate adjacent sub subverticals such as food manufacturing and biotech, which we consider to be high margin industries where our use cases are already well proven that we can continue to to sell and upsell. And as I mentioned, The US market for us is is highly attractive, and we'll talk about how we're performing there, shortly given that it represents five times more tech spend than you'd see in Europe. Okay. So the key pillars of our growth strategy. How how how are performing? What are we doing? So accelerating The US, and The US our US footprint in in in the market is a key priority for the business, and I'll there's a slide which will talk you through how that's performing.

9:46 Continuing to drive industry leading or top quartile net revenue retention rates through upsell, cross sell across the existing customer rates whilst bringing in targeted net new customers is the organic growth model that we're looking to apply. I mentioned the sub verticals that we're now looking to to expand into where we see high margin fit across existing use cases that's something you want to target as well as becoming a business that's built around a recurring revenue subscription based model that becomes sticky into the future. And as Greg will show you in a bit, we we're doing all of these whilst continuing to drive operational efficiency and accelerate and bring forward that path to profitability and beyond at the same time.

10:28 So how are we performing against that strategy? Well, in terms of The US, ARR has grown a a further 13% in h one, and actual revenues are up 20% year on year and a half. From a subscription revenue or sort of recurring revenue base that I keep mentioning, that's now 94% of the total revenue base. So one could consider that almost complete from a pure recurring revenue perspective. Product innovation, we've mentioned asset intelligence. We have a a section on this where I'll talk to you about how that use case is being used. We're very pleased with the stickiness of that product. Net revenue retention remains at a 109%. And as I said, there are a number of of mid to large sized contracts that we announced in the half that have supported what is was a 38% growth in sales bookings in half. So overall, in h one, we continue to execute against our expectations.

11:23 So The US, this is a market we entered, just over three years ago, maybe three and a half years ago now. And as you can see, we've now scaled it to being 27% of total group ARR. You know, a lot of UK companies, will struggle to establish a bridgehead in The US. It's a very competitive market. So we're pleased with the performance, given given how lean the team is over there to to now have a well established bridgehead. We are actually in all but two states in The US in terms of a customer profile. So we spread our customers across The US. The majority sit within the health care space, which is a high margin industry, and, certainly, we have a very proven use case for. Clearly, the nonhealth care space and nonhealth care opportunity represents something significant for CHECKIT. And as a result of this, we've been expanding in the go to market team on an organic basis.

12:13 And I myself have actually spent a number of months at the start of the year in US, and I'll go and spend some more months at the back end of this year in a bid to continue to spearhead the growth effort there. The expectation around The

12:24 US is quite significant, and we we think that in the midterm, more than 50% of revenues should come from The US to CHECKIT. So, again, just double clicking on the subscription revenue base. As I mentioned, ARR is now up at 13.8. Recurring revenue grew 14 to 6.3, and then total revenues have grown 16, percent to 6.7. And that that's that really ref is reflecting the two core metrics that we track, that being net revenue retention of a 109% and

12:55 gross revenue retention of 95%. As I mentioned, the, managed churn of a couple of low margin noncore contracts that we took advantage of in the first half is is the reason why GRR is at 95% as opposed to a sort of more traditional ninety eight, ninety nine percent, but that's well within management's expectations. So couple of customers stories to bring this to life for you. We announced a significant new contract with Octopharma in the first half. Octopharma is a US company. It's our second largest customer. We're in over a 170 different plasma locations across The US with this customer. This is a customer that we've tripled ARR with over the last three years, and it's just it's representing somewhere around 800 k of ARR GBP to the business.

13:45 And there's a good good example of land and expand at work. CHECKIT provides a a fully fledged end to end automated monitoring solution for Optipharma. And the new deal we signed, which was for a new product range called TTMU tactical temperature monitoring units, enables Optipharma to get a mobility solution, but more importantly, a redundancy solution that sits alongside our core automated monitoring platform. It won't, have escaped people's notice that the NHS suffered a ransomware or cyber attack or a number of NHS customers suffer one of those attacks a few months ago. The similar attacks have been going on in The US around health care customers. Obviously, the the threat is around patient data. The automated monitoring that CHECKIT provides acts as a mission critical sort of final, line of defense for these organizations and has been proven in action over the course of this year.

14:39 Equally, BP is one of our largest customers and is, for good reason, one we continue to invest and expand with. This is an organization where we've currently scaled our full product suite, task management, automated monitoring, ML, AI algorithmic data reporting to over 850 company owned locations over the last four, five years. So that's the whole of The UK, Netherlands, Luxembourg, and pleasingly, Australia and New Zealand where we've actually recently just completed the full rollout of another 430 locations there. What's been very exciting about the BP story is that in the first half of this year, we made two different contracts for another 200 franchise locations with BP. Now what's exciting about the franchise opportunity is that it represents three times the size of the company owned footprint on a global basis.

15:31 So able to prove the commercial structure and the use case on the franchise side of the house is very exciting for us, and we continue to look forward to the future with confidence with this key customer of ours. And then I'm just gonna finish off here before I hand over to Greg by spending a little bit of time double clicking on the product and indeed what's the point of difference here and where are we seeking to invest by way of innovation going forwards. So as I mentioned, the the key point of difference for CHECKIT is that we provide an automated monitoring, Internet of Things driven solution, and a task management solution integrated together end to end. This is the is the basis of an operational excellence platform in the services and the and the use cases that we we currently play in. That

16:15 data feeds seamlessly between assets and people, people back to assets, and that is the operating environment that the majority is large blue chip organizations actually work in. Of course, what's then happening is we're generating a vast amount of data. The data never existed. It was analog in the first place. By having digitized it, we can then do manipulate it in order to provide much stronger ROI opportunities for our customers, and this is where, asset intelligence as our first module in this space came came to bear. Effectively, asset intelligence is taking all of the data that was already being driven by our Internet of Things automation solution, running it through our algorithm, and providing three core ROI led benefits for an organization. Firstly, predictive maintenance.

17:02 This is a high probability ratings on which assets are going to fail and when before they fail. That way, you can minimize the loss, the potential stock loss or inventory loss or revenue loss associated with such failures. The second one, and this is a really interesting one when we consider

17:18 the more Morrison's most recent announcement around project minus 15 degrees c. This is around energy consumption. So organizations are realizing that if they've got thousands of assets running colder than they need to be or running hotter than need to be, they're burning through energy at a rate that when you sum it up becomes a meaningful p and l effect. This is something that asset intelligence specifically helps organizations to predict and then manage and then control around. And the final one is around capital allocation. So on an annual basis,

17:49 which assets do I actually need to replace versus taking a guess and having a blanket a blanket approach to this kind of investment. Asset intelligence will will help you predict specifically which asset will go down and therefore be much more granular around what you need to do about replacement. So this has been a very sticky bit of product r and d, and indeed, we had a couple of contracts, one in the first half. The majority of the pipeline going forwards has some form of asset intelligence baked in, either as an upsell cross sell or as a point of difference in that pursuits. And with that, I'm gonna hand over to Greg to talk us through the financials. Thanks, Kit. I'm pleased to be able to take you through my last set of results as CHECKIT CFO. These results continue to show that CHECKIT is well placed to achieve its strategic goals.

18:39 And I'll start with some financial highlights before I go through some detail. And as a reminder, if anyone has any questions, please put them on the site and we'll answer them at the end.

18:51 So in terms of financial highlights, let's start there. And what we're aiming for is a balance of top line growth, achieving profitability, and maintaining sufficient cash. And our results this half year meet that aim. So with growth of 16% year on year in revenue, improving gross margins, and then adjusted EBITDA improving by 24% with cash of £7,000,000, that certainly feels like it achieves those aims that I was talking about just then.

19:25 And if I start with revenue, of the total group revenue of 6,700,000, £6,300,000 or 94% is recurring revenue. And this shows the quality of our revenue. Our revenue has been increasing by around £1,000,000 per half year for the each first half across the last three years as you can see on this slide. And that shows the sustainability of our growth. It reflects our land and expand strategy, as Kit has said, where we start with a small sale to a customer and develop our footprint over time. And our top line growth is only one driver of our performance. So let's talk about our margins.

20:10 Gross margins have continued to increase from 54% in FY 2022 to now stand at 68%. And that's, course, an increase that's in spite of an increase in our cost of sales as we set up the

20:27 infrastructure in Australia and New Zealand to support our biggest contract to date. And I expect our margins to continue to increase in future periods. So our top line growth with revenue of 16% and gross margin performance that I've just talked about results in gross profit growing by 12%.

20:52 And with operating costs held flat during the period, that means our EBITDA has improved by 24% to a loss of £1,400,000 in the half. And that's on top of the 46% improvement that we had last year. So when we talk about the path to profitability, which is on this next slide, we're confident that we're heading on the right track. The growth in revenue, margin expansion and careful cost management show that we will achieve profitability, and we're confident in the guidance that's been released today, that's been reiterated today, that we will see further improvements in EBITDA in the second half, and that will result in EBITDA being positive in the year ending 01/31/2027.

21:40 So that's effectively the calendar year 2026.

21:49 And this is supported by our cash position. So cash at the end of July was £7,000,000 and that's compared to £9,000,000 at the start of the year. That represents an improvement in our cash burn of nearly 30%, and we expect this to continue in H2. We manage our cash very carefully so we can maintain the balance between growth and profitability with sufficient cash to reach breakeven. And with that, I'll hand you back to KIT for some closing messages. Thanks, Greg. Look. We're we're gonna continue to drive growth for a pure subscription based model that provides good visibility of future revenue streams.

22:34 At the same time, we're gonna continue to invest in the development of CHECKIT platform to create an industry leading product that is differentiated around innovation and the use of data. And as I mentioned and as Greg has also mentioned, the board remains confident that CHECKIT will make further progress to achieving its goal of profitability in calendar year 2026, and we remain on track to meet market revenue and EBITDA expectations for the current year. And with that, I will pause, and I will open up the floor for questions. Perfect, Kit. Great. If I may just jump back in there, and thank you very much indeed for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's situated on the right hand corner of your screen. But just while the company take a few moments to review those questions that were submitted already, I would just like to remind you that a recording of this presentation, along with a copy of the slides and the published Q and A, can all be accessed via your investor dashboard.

23:30 Guys, as you can see there, we have received a number of questions throughout your presentation this afternoon. And thank you to all of those on the call for taking the time to submit their questions. Alex, at this point, sir, if I may hand over to you just to chair the Q and A with the team. And if I pick up from you at the end, that would be great. Many thanks, Jake. So let's go to the first question, and it's on group bookings. So a couple of questions here. Group bookings is a first time reported KPI. Will this be continually reported going forward? And then connected to this group, bookings look very healthy at plus 38% year on year to 1,200,000 over the last six months. Do bookings equal customer contracts signed, but billing has not yet started? Is my understanding correct?

24:16 And how long does CHECKIT think the bookings can be billed and become ARR? Will it convert to ARR in the second half of the calendar year? Thanks. Thanks, Alex. Look. I'll take the majority of that, and I'll let Greg talk about the how how how bookings and ARR convert through to billings at the end of it. So, yes, short answer, yes. We will continue to report bookings going forwards. Yes. We're very pleased with the bookings performance in the half, and I think this really is one of the most important measures for our future prospects. And as I mentioned before, you know, the we shouldn't lose sight to the fact that these are three year minimum terms that we're booking on. So not only we get sticky visibility down the down the line, but, obviously, it it gives us a lot of confidence around the future year's planning as well.

25:07 Yeah. So, Greg, do is it do you wanna just articulate any more on how we relate our ARR bookings to billings? Yeah. Sure, Kit. So just to cover off the definition, bookings are essentially the sales wins that we've had in the period. So to give the full definition, they're defined as the ARR of new sales wins that we contract during the period. So in terms of the question around billings, billings aren't as relevant at this point with with bookings. Bookings are the contracts that we've signed rather than having a customer live or billing. Typically, we look to bill a customer. Our standard terms are to bill a customer at the start of a contract, so there shouldn't be a delay. We do have some larger customers where we do we do have a slight lag. I would say it's typically three months, so we would expect to convert any bookings into ARR on most of our contracts in the year.

26:08 Thank you, Greg. And, Kit, a related question on bookings in terms of, I think, definitions. Say, in today's announcement, you talk about total group bookings grew by 38 to 1,200,000 versus h one FY 24 of naught 800,000. Isn't that 50%, or how do you get to the 38% figure? I think I'll I'll let Greg handle that. I mean, I think I think the short answer is it's a rounding answer. Yeah. That's absolutely right, Kit. So $1,200,000.08 800 k last year, that's obviously 50%, but we calculate all of the percentages in our announcements on based on exact numbers. That's how you get to 38%. Thank you.

26:55 Question here on asset intelligence. Regarding the launch of the new asset intelligence module, can you comment on the expected impact of this product on future revenue growth? Are there early indications of customer adoption or interest? Yeah. So as I as I mentioned in the presentation, we're we're we're very pleased with what asset intelligence represents. Wow. There were also a number of there were a couple of contracts that were signed off the back of the that launch. So we only launched at the end of April. We got, I think, two contracts signed over June and July, which was very encouraging given, you know, sometimes there's a lag between an innovation release and then and then contracts signed off the back of it.

27:42 In terms of future revenue impact and future revenue growth, I mean, this is a very high margin product for us, exceptionally high margin. The way the way we see it going, and it's obviously early days, and we have to experiment between, how it's sold to existing customers and net new, but I think it's it's considered as an upsell cross sell across the existing customer base. So, effectively, does a customer want to pay a certain amount? And and and we're estimating somewhere between, you know, 10 to 20% of their total ARR base for the for the module to be sold switched on effectively and give them those insights. So that can give you an indication of the upsell capability, and it may be more or less depending on the type of customer. On the net new side, I think it's offered either as a, an additional module as part of the product stack.

28:32 But in in in in some instances as well, it's it's also acting just as a point of difference because we don't see any competition with anything like this capability. So when you're when you're speaking to decision makers and buyers who are looking to drive operational excellence in their stack, when you then show them this capability, it becomes very interesting for them. We've seen a very positive response amongst health care customers where obviously the cost of the inventory and the cost of their critical assets themselves are very high, and indeed on the food operations side of the house where again the cost of missed revenue to the business because assets go down becomes quite punitive. So this is this is this is proving very sticky. And as I said, when I we were talking about the presentation, the vast majority of our opportunities, net new opportunities coming into the pipeline, have asset intelligence involved. So it's it it it continues to be quite it's quite sticky for us.

29:28 Next question here. Which sector was the lost lower margin client in? Why did you lose it, and what contract value was it? Yes. So, yeah, I I mentioned what we what we called the managed churn or the nonrenewal of a low margin noncore business. I mean, that that loosely speaking, we would consider that nonrevertible churn to our business. It was in the food retail sector, and it was a sent ostensibly a legacy piece of business, a a sort of managed service as it were that involved, you know, humans doing, you know, energy insights, and and and and it was it was very low margin to our business. We consider it to be noncore to our product set. The customer agreed, and, you know, we agreed not to renew that. That was about 50% of the churn actually that we experienced in the half, related to that contract.

30:22 And then, you know, 30% of the churn in the half or the slightly outsized churn was then associated with a number of very, small, very low margin, hospitality customers who, frankly, given the cost of living crisis and the market conditions, are ill afford ill able to afford any price rises or even any investment in technology solutions. Some of them, in fact, go under. And so for for us, that's just not our core customer target. They're not large blue chip organizations. They're not even midsize enterprise, so we don't put any additional effort cost into trying to retain those customers. If they stay with us, that's great. But if they can't make it, we unfortunately have to let them go. Next question here is on the cash position.

31:09 Cash reserves look very healthy at 7,000,000 given the path of profitability. My estimates are that minimum cash balance will be 2 to 3,000,000 in my worst case scenario, but more in my base case. What are the plans for the excess liquidity, especially given the risk free rate of 5%, and what type of m and a? Yeah. I was I'm gonna I will let Greg answer this ultimately, but I think it's it's actually worth touching on the m and a bit at the end because, again, for for those that may not be aware, in the first half, CHECKIT was involved in a in a in a bid, and I and the the results of that bid are are public. And, look, the point on m and a is that we would consider to we will keep keep an open mind around what we consider to be accretive m and a bolt on acquisition, something that gives us a strategic capability in terms of either customers or product. So that is the that inorganic aspect of growth is something we will continue to focus on.

32:13 And that but, look, I'll hand over to Greg if, Greg, you want to make any more comments on the cash position. Yeah. Thanks, Kit. So I think you've covered the second half of the question, so let me go back to the first half. So the question was around an estimate that our minimum cash balance will be 2,000,000 to 3,000,000. Obviously, that's, as you said, Alex, in a worst case scenario. What the analyst guidance has said today is that they expect our cash flow point to be 3,500,000 and I would be supportive of that comment. We manage our cash very carefully. The guidance is for us to finish the year at £5,000,000 Obviously, as I referred to in the path to profitability slide, as we see growth in our top line, that then supports us seeing an improvement in our profitability.

33:02 And we are confident that we have enough cash to get us to that profitability point. Thank you both. Next question here. How much of the increase in ARR was due to price increases? Very, very little, actually. More than 50% of the ARR that was added in the half came from upsell cross also a fair bit more than 50%, and there's a small amount, I think less than 10% or so, that was related to price increases. Yeah. So if I just build on that question, what I would want to add would be that over the last few years, as inflation has been higher, we have been putting inflationary increases through on our customers.

33:53 This year, we've been conscious of the fact that inflation has come back down, and we've been careful to manage that against the, I guess, challenging market environment that our customers are seeing. Thank you. I've got one more question here. So just a reminder, if you do want to ask a question, please have it into the q and a box at the bottom of your screen. This question is about the, Australia, New Zealand contract. The infrastructure costs for the New Zealand and Australia contracts had a near term impact on margins. How do you anticipate the long term profitability of these contracts? And are there similar large scale contracts in the pipeline? I'll let Craig answer that one. Yeah. Sure. So what it's important to make clear is that when we take these larger contracts, we take the cost of installment upfront in our p and l, but we spread the revenue across the life of the contract, so generally three or four years. So the long term profitability of a contract like New Zealand and Australia is quite quite quite decent for us.

35:04 But the first year of that contract is less profitable than the second and the third years. In terms of the pipeline, I'll let Kit talk more about the pipeline, but there are other large scale contracts in it. We don't typically talk about specific contracts that we're chasing, but we would be confident that there are further contracts to come. Yeah. Thanks, Greg. And I'll and I'll just I'll just I guess we'll finish on that. Yeah. So in terms of pipeline, if if we remind ourselves, the goal here is is is effectively to land quite quite specific types of customers. So, preferably, those customers themselves are reasonably high margin or they're in and or in high margin industries, and they want to be midsized enterprise or large. So midsize being well well north of 1,000,000,000 in revenues or very large multinational enterprises like like BP and others who are in the in the tens of billions of revenue. Those are the kind of customer we seek to grow with because we know given the kind of customers we have, that over two, three, four, five years, we can turn them into 7 figure ARR customers or indeed more than 7 figure ARR customers and build a very sticky business with them.

36:17 So, yes, the goal is to is to seek to get customers for whom we can actually roll out those large scale contracts and projects, not only because the investment from our side makes that quite a sticky, product, but also when customers themselves are investing into a product suite like that, it tends to drive good NRR over time, as the customer seeks more and more downstream benefit and the contract overall becomes higher and higher margin for us. Thank you, Greg. Thank you, Kit. There are no further questions on the platform, so I'm going to hand back to CHECK. Perfect. That's great. Alex, Kit, Greg, thank you very much indeed for addressing all of those questions that came in, from investors this afternoon. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended, just for you to review to then add any additional responses, of course, where it's appropriate to do so. And we'll publish all those responses out on the platform. But, Kit, perhaps before really just looking to redirect those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments to wrap up with, that'd be great.

37:27 Yes. Indeed. I mean, look. The message remains the same. We have very clear goals that we're executing against on the growth side and profitability side. We we we're enjoying what we're doing. The customers seem to get the benefit. Our net revenue retention rates remain where we want them to be, and we look forward to the second half with excitement and confidence. And, yeah, look forward to speaking to you all soon. Perfect, Kit. That's great. And thank you once again for updating investors this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of CHECKIT PLC, we would like to thank you for attending today's presentation.

38:15 That now concludes today's session. So good afternoon to you all.