Dubber (ASX:DUB) Q1 2027 Earnings Call

0:00 Okay, it looks like we're stabilizing so we might get started. Welcome to the quarter one FY27 quarterly activities update. I'm the CEO Matthew Bellizia. I'll be giving the presentation along with the CFO Prasad Kazi. Prasad, if you can move us along to the key messages please. All right, our cash flow positive for the quarter, which you can see through the 4C. We finished the quarter with $11.2 million of cash, as well as our further undrawn $5 million facility, giving us a total liquidity of around $16.2 million, again with a debt-free strong balance sheet. Our revenue was up marginally to $7.7 million.

0:46 We've maintained our cost discipline. We're continually doing substantial R&D in this place, which I'll talk about in a minute, which we fully expense. We're not capitalising the R&D, so all the R&D we've done over the last 12 months is expensed into the numbers. I continually talk about broadening the revenue streams to four revenue streams. We have the call recording business. I think we all know now that Verizon's due now. I know it keeps pushing back, but they're doing more and more piloting right now, so we're expecting that to go live in the first quarter of... calendar year 27 in the next three, four months. So we're making good progress with them. Second revenue stream is our payments revenue stream.

1:32 We're spending a lot more time on investing in payments. We've built it into the AWS cloud. We're now spending more money on marketing and selling the payments business, promoting the payments products. The third product stream is our Dubber Notes. We've invested heavily in this product. We have a good product. People that are piloting love it but we have not generated any substantial revenue off it yet because it's taken the most of the year to build. We've had to update contracts with partners. Partners are updating the contracts but people love the product and we hope that investment is going to start turning into real revenue very soon. and similarly we've invested substantially in our AI development. So we've got a lot of voice AI that we've built, a lot of us being piloted.

2:18 We continue to get positive customer feedback but again in an R&D business we've got to build the IP, we've got to change the partners contracts, the partners then have to change their SKUs in their business with the ability to sell it and most of that's happened. So we're expecting to start to see the fruits of our labour coming through in revenue shortly. It's been a year of investment but we're hoping to start seeing some of these broader revenue streams start to feed on top of our existing revenue streams to broaden the business and pivot us in the growth into next year. Next slide please Prasad. And one more please. We did a deal to acquire Daisy. Daisy has some fantastic customers, MLC, Ampol, Woolworths, some massive brands throughout Australia and New Zealand. Some really good companies. They're very strong in insurance and financial AI. Quite a sticky business. The deal is we're paying $400,000 upfront, which has already been disclosed to the market.

3:27 and then a further 300k at the 6 and 12 month milestones, anniversaries and you've got 1.7 million ARRs retained after 12 months, a further 250k in shares which will have to get shareholder approval. Completion is progressing fast and is likely to happen very soon. and again this plays into our four verticals. We said we've got call recording, we've got payments, we've got notes to go to market and voice AI. This again strengthens our AI offering which sits on top of our voice recording platform. There's a lot set in conversations. We're now untapping a lot more information to give the market to tell you what actually has been discussed in your business and things that you can actually improve your business.

4:17 Real Solutions. So as we get this stuff to market, we hope to get pretty good acceleration through next year on sales. Next slide, Prince Prasad. To give you an idea of some of the things we've built, we've built sales playbooks. If you ring any organisation, any company, and you speak to a salesperson, they ought to pick up certain questions. So if you ring Dubba, who's your current provider, how many licences are you interested in, If you ring up to buy a car, who's the car for? Do you have budget? Do you need finance for the vehicle? Sales playbooks allows you to find questions so you can start to measure, have your sales team ask the right questions. It gives them instant feedback. Objections are then raised in the sales cycle.

5:03 You're too expensive. Well this is the best response as the company thinks that you should give to objections. There's two responses you did use. There's two or three you could have also used to help do it. You ought to pitch it. You should sell the benefits of your company or the benefits of your products. We measure whether you actually pitched and you should be outcomes achieved at a sales meeting such as Did you get an appointment? Did you get a test drive? Did you get people to a presentation? What is the next outcome?

5:48 So that's what a sales playbook is. We've built that. That's getting close to release. It's in pilot. Sales process looks at all the please look, sales process looks at all the particular ways you try to close a deal. A direct close which is Would you buy this? An assumptive close. Can I have the name for the reservation? A temperature check, which might be, or a conditional close. If I match the price, would you buy? We measure the close techniques the sales people try to use. The customer's reaction, did the customer react positively or negatively to that sales close technique, and which ones are working more effectively in your business, which of your sales team are using which sales close technique, and what results are resulting from it, so you can coach your lesser sales team into improving based on the best sales team's performances.

6:49 The affiliate service and support workflow, that tracks you through a service course, different flows that happen in service, Did you achieve the milestones through a service and support to satisfy the customer? Did the customer get satisfied? Was he reacting well? Did he leave the call dissatisfied? If you leave dissatisfied, let's flag the service manager. Let's engage before you lose that customer. And a training centre. So you can actually take the best sales processes, the best sales books, put the best calls in a training centre. Your junior staff can learn by listening to the calls of the best sales staff. and that's the Dubber Training Centre. All this stuff is new. This is the stuff that's going to market. We're changing customers' contracts to support AI and these new SKUs so we can sell this stuff into next year.

7:39 Next slide please, Prasad. We have a new iPhone and Android app that lets you record. So if you want to record in-person meetings, you can pick them up. You can review summaries. You can see basic information about your last calls with those customers. So before you call them back, you can say, what did I discuss with them last time? What was their main objections? How did I overcome them? Were they satisfied? We've built business intelligence modules which gives you graphs and stats. You can see which staff are talking over other staff. You can see talk to listen ratios. You can see who's making outbound calls, how many people are making external calls versus internal calls versus personal calls. Are people driving the KPIs they ought to be doing in their businesses?

8:27 We have email and app reporting modules. that send straight to your email information pertaining to what you've been doing based on each of the things I just talked about. So people are getting live coaching at the end of a call. This is what you said. This is what you could have said. If there's escalations, we email managers so they can get involved. And we have our inside agent, which is ask AI any question you want across your voice. How many people rang up? How many of my customers were dissatisfied last week? If you like that query, you can then schedule and say each week, I want to know all the complaints in the business. Send me an email of all the complaints. I hope this is making sense. Next slide.

9:14 And Daisy's obviously going to bring us some strong insurance and finance stuff, so that's another plug into our AI capability. And I've talked about a lot of stuff being post-call, where we send you an alert. Next year we want to coach the people live in the call, so... If you get an objection, we're going to flag up, here's some of the answers you can actually provide to the customer as and when it occurs. So that's some of the stuff we've built, which we haven't seen the fruits of our labour. I say to some of our investors, it's kind of like planting a field. We've planted the field, we've put all the seeds in, we've fertilised it, we've spent 12 months paying for all this R&D. Little seedlings are growing. People look at what we've built. All our partners and early customers say we love what you're doing, but we get to harvest and see the fruits flow into the revenue. So there's a bit of process, but that's where the business is heading. I obviously believe in it because I kept buying our shares and have so again. So that's where the business will go, which is full revenue streams.

10:19 A voice AI is a boom market. and that's what I think is going to re-rate this place as we get this stuff to market. Next slide, please, Prasad. Some of the projects that we're currently working on, we're still moving Vodafone in the UK, our biggest customer, across to the Dubba platform, so that'll rationalise that. They're launching new SKUs and new products in November, which will give us then more revenues, more opportunity to give us revenues. Verizon still wants to go live now in Q3. They are making substantial headway now. We are hooking up more and more, more and more live testings going on. So now it's getting more and more real. The delays weren't at our end.

11:05 They've been network-based and telco, but we're looking in good place to go live with that. We're migrating out of the UK data centre continuously, moving our payments customers from a data centre into the AWS cloud, which we've invested in. That's going to drive savings, plus it gives better security and a better product that we can then take around the world because we're in AWS, which can be globalised rather than setting up data centres around the world. There's still more direct cost optimisation to be found. We're still finding more things in AWS and Azure where we can save costs. So there's more work going on to drive down our direct costs. Dubber notes a new AI launch I've talked about and the recovery of funds is going on. We're doing a little bit of discovery at the moment with the BDO case over the next month or two. Then the case will be staged.

11:56 There'll be no more to spend in this business until the ASIC case goes ahead and the ASIC case might take 18 months before they get BDO to court. But the good news for us is we get to sit behind that case, spend zero for that 18 months and see what the outcome. If ASIC beat BDO, you would think BDO ought to want to settle with us. And across to Prasad for the CFO update.

12:26 Thanks, Matt. Hi, everyone. I'll take you through the numbers for the quarter now. Overall, we are pleased with where we have landed. Costs are down again. We have delivered another quarter of positive normalized EBITDA, and importantly, the business generated 1.3 million in operating cash flow. Let's start with revenue. We finished the quarter at 7.7 million, slightly up on 7.6 million last quarter. Recruiting revenue grew around 3% to 7.3 million, and the exit ARR health study at 29 million. After the changes we've been through over the past year, it's good to see revenue stabilizing. From here, the job is to get to growing again. And the new first managers spoke about are a big part of that.

13:16 Now to our operating run rate, which is probably the result I'm very pleased with for the quarter. Revenue of 7.7 million came in ahead of our cash-based cost of 7.2 million. That gives us a positive operating run rate of around half a million dollars, up from break-even last quarter. Our annualized cost base is now around 28.6 million. That is a further 1.9 million of annualized savings from last quarter. So the cost work we have been doing is now clearly showing up in the numbers. Direct costs didn't move much this quarter. They were around two and a half million. in line with last quarter. The gross margin is held at 68%. There was a small uptick in AI compute cost, which is about 21K.

14:06 And this is due to the new trials products, which we are trying right now for our double nodes and other AI products. And we are continuously optimizing our cloud space. Operating cash costs are where most of our savings have come from. They fell 10%. from 5.2 million to 4.7 million, which takes our annualized operating cash cost base to around 18.8 million. That's the restructuring, supply renegotiations, automation work, all coming through. And also we have identified further savings in the coming quarters. On EBITDA, normal EBITDA was positive half a million, which is up from 100K last quarter. That is three quarters in a row of positive normalized EBITDA.

14:59 For context, if you look at Q1-FI28, we made a normalized loss of 3.8 million. That is a 4.3 million turnaround compared to Q1-FI25. It shows how far we have come in putting the business on a sustainable footing. Now to cash. We have ended the September with $11.2 million cash in the bank, which is about $1 million more than at the end of June. On top of that, we have $5 million loan facility that remains completely on drawing. So the total available funding for the quarter is at $16.2 million, which is very strong. Coming to the actual cash flow, this slide shows the actual cash that came in and went out during the quarter. Operating cash flow was positive, 1.3 million, compared to a small outflow of 100K last quarter.

15:55 Customer receipts were strong at 9.8 million, which is up from 8.1 from last quarter. Operating payments were around 8.5 million, which is slightly higher than last quarter. This is due to some timing of annual prepaid expenses. What we can see is that better operating performance is now turning into cash in the bank. This is about normalized cash flow. If this records the 90k for a one-off restructuring and recovery cost, the normalized cash flow is about 1.4 million, up from 200k last quarter. So the underlying cash performance of the business keeps improving all the time. So to wrap up, it's been a solid quarter. Revenue has skipped last.

16:40 Costs were down again. Normalized EBITDA has been positive for the last three quarters, and the business is generating cash. A lot of work has gone in getting the cost base where we are today. The next step is bringing revenue while keeping the same cost to supply. With that, I'll hand over back to Matt. Thanks Matt.

17:01 Yeah, so pushing forward, next slide please Prasad. Our new model, and as we've updated all the contracts, we're moving to a token-based model. In fact, we got a good compliment from the head of product at Verizon who said, we think you've actually got one of the best models we've ever seen. but that means as we go forward and once we've done all these contract changes with all these customers and put all the SKUs in place, updated all the marketplaces people can buy through our token products, we can continually build more AI, continually put it in the platform. We've come up with a model where people can self configure the options, they can turn stuff on, they can turn it off, they can consume our tokens and they can they can spend more with us by buying value from our products.

17:46 So our challenge going forward as a business is continually building purposeful AI, stuff that's going to drive real value for business, going out to market, understanding what the customers want, building stuff that people want to consume, putting in the platform and then it's easy to continue to build the business because people can just buy more and more tokens and enable more and more features. So it really helps us scale globally as we go through this transition from fixed SKUs to tokens and just continually consuming more tokens, which is the AI market. Importantly, we also talked our partners into a much lower margin on tokens. They've agreed to that. Their margins were much higher, which was pricing cover out of the market a little bit on previous AI, and they've gone to much skinnier margins.

18:32 Understanding that the AI market is more competitive, but we do have reach into 224,000 people getting voice recordings off Dubber, who's readily available that can take our Dubber Notes products and our AI products as we go live. So focusing the next year, we'll continue to have cost discipline, we'll continue to drive down our direct costs. Once we see growth, once we get fully enabled and our notes and products are going to market and our AI is getting consumed, we have a good cash reserve to fuel the fire. We all throw the petrol on the fire once we see it starting to take off, which is more marketing, more sales team, and absolutely try and boost this business once we start to fuel the fire. We've gone through the process of R&D.

19:19 We've built a lot of stuff. It's in positive feedback. We're going through the contractual updates right now. and the SKUs and the system to system changes so that they can order stuff automatically through our products. And hopefully next year as we go through, this stuff turns into a real growth market coupled with Vodafone backselling and the Verizon products coming on. So let's now go to questions. That's the end of the presentation. I'll ask the first question. Why is your share price in the bin? I assume everyone wants to know that. Our enterprise value at the moment is about $5 million, isn't it, roughly speaking. Obviously we have one of the institutions that are selling off our stock. You guys can guess who it is. They're selling off a lot of stocks around the world.

20:06 Sorry, a lot of stocks in the small and medium cap. They were in the AFR yesterday selling off hard. But until they're washed out, we've just got to continue to absorb that sell-off. and it's just a particularly cheap stock. Our company's worth $5 million with $30 million revenue trading in the black enterprise value at the moment. So that's probably all I can talk about in the valuation stakes at the minute. Any other questions? I'm not seeing any unless my system's not putting them up. Are there questions coming through?

21:05 Matt, can you hear them?

21:07 I can't see any questions. Hang on, Eric's just coming to pick some up. Sorry, there are 15 questions, sorry. I've now got the questions. Has Dubber either directly or through ASICS investigations identified any significant assets held by the former CEO including property investments, company interest trusts or assets held through associated entities against which Dubber could potentially enforce successful judgment? Has the report received any investment of the approximate value of those assets? Whether they encumber and what portion of the real estate could be recovered for Dubber shareholders? The answer is no, not really.

21:55 The ASIC process we're fairly blind to. ASIC don't communicate with us. We don't really know where their investigation is on investigating where the money went or who took the money. ASIC do not communicate with us at all. The only thing we're aware of is what ASIC is pursuing BDO. In terms of the assets by the former CEO and others, well we obviously know they've got some but we've got a legal case against them but until you win that you can't freeze them and ASIC haven't proven any wrongdoing on those people just yet so it's a difficult situation. I know it's frustrating for people but We don't really have a lot of answers on that.

22:52 Has Dubber commissioned a forensic asset tracing investigation, including examining transfer to associate entities and third parties? ASIC's done all that. ASIC has been through, ASIC's had a massive investigation. Again, we're blind to what they've done, but they've had meeting after meeting. They've dragged everyone in. This is around 18 months ago, two years ago. Again, we're not really privy to what they've found. Now we obviously, our former board commissioned KPMG to investigate that. We're privy to a chunk of information which is forming some of the basis of our legal case, so we can't talk about it much more. But again, we don't really know where this is up to. Right, does your system offer 2FA or MFA security for client accounts and systems?

23:42 Absolutely. We're very secure. we have a lot of the big telcos that use us around the world push our security standards extremely hard and we've got a lot of certifications so certainly 2FA, MFA and all that stuff's flowing through as part of that. Has Dover sought freezing orders or other asset preservation measures about the recoverable assets? If not, why not? Again, We did have a look at that, the former board had a look at that and decided not to proceed on the basis that ASIC was involved and we didn't again have enough, the guy's not been charged so it's a difficult one. Based on information available to the board, is there a realistic prospect of recovering a proportional amount of the $26 million of the former CEO and associated parties?

24:33 There's another one. Is there annual revenue? Okay, this is the last question I'll answer on this one because I kept repeating myself. Again, we are pursuing BDO for $26 million. So is ASIC. We're going to be stayed after we do discovery over the next month or two and we'll wait to sell with ASIC. ASIC have a ton more information than us. ASIC have pulled through. They have powers that we don't have. We have access to information like any civil litigation would. They have a ton more power, so we need to sit behind their case and see what they find and hope your regulator does that. So maybe write to the regulator and see if they'll give you something, but certainly they're not giving us anything.

25:19 At what annual revenue can Dover generate a sustainable statutory net profit of $5 million assuming its current operating structure? Well, right now, I'd assume... With growth, we would probably flow 30-40% of the bottom line from here. We're running a 60-70% gross margin, but as you grow, you've got to hire more salespeople, more support people, more engineers. So I'd say the answer to that is probably to get 5 million of the bottom line is probably 45 million turnover. The European business now stabilized, mostly stabilized. That was the one that was the hardest hit. Obviously, we lost Virgin Media. It's fascinating. We told the market we lost Virgin Media. Our share price went from 3.7 cents to 1.8 cents overnight.

26:06 to factor in that we lost 10 million revenue. Of course, that revenue rolled off progressively over the next five quarters and our share price kept getting punished as it went down on what we'd already told the market. But yes, it's substantially stabilising now and hopefully we're starting to pivot more into growth as we launch more products and we go from defensive and call recording and suffering the pain from the shit of the past to launching new entrepreneurial products that the market should consume and the market's starting to say, hey, we like what you've got. How much revenue is currently generated specifically from AI products, excluding traditional? The business has not been great at measuring that historically, the difference between AI revenue and what's on revenue. Certainly our new SKUs are geared to measure AI growth, notes growth, and I talk about the full revenue streams.

27:01 As we bring them on next year, we're going to be able to report that on a lot more distinctively. I won't name the company but has they finished selling off their holdings? How many do they have left? This is the Insta that's selling off. I probably shouldn't answer what I'm guessing they have left. I don't really know because they hold their holdings in other companies. I have a back of the envelope guess of what I think they're holding off. Myself and others have got buy orders in today. We're continually absorbing them. I think it's a fire sale. So I'm not just buying double stock. I'm buying the other stuff they're selling off as well, to be honest. When does North America Carrier go live?

27:46 It should be in the first quarter. Of the $4.6 million up front, how much is refundable or deferred? It's not refundable or deferred. Dover's network's been standing up. We've been drawing down on a proper accounting basis. This place is going to be run squeaky clean. It's no bullshit anymore. We're drawing that down over 60 months. It started from last January. They started paying us, I think it was, on a five-year term. They pay us for the network and the services. Our network and services are standing up, so we're drawing that down into revenue on a monthly basis. The services that they sell go on top of that, and that's the flow on when they go live.

28:31 so it's not refundable nor deferred it's a contract for five years to hook up and supply network services don't forget the investment they made in their network to support this is substantive millions and millions well above I'm going to guess well in excess of 10 million or more they would have had to put into their own network to be able to hook up the double call recording so a substantial project for them massive investment and they're starting to turn that on hopefully in the first quarter next year. But the signs are good. They're certainly doing a lot of trialling now. Do you have any key contracts expiring in the next 12 months? Contracts do expire all the time. So yes, they do come up, like any business.

29:16 And I guess you're asking me what I expect exposure to be. There's probably one that I sit there and think April, May next year that I'm hoping will renew. There's certainly nothing of substantial nature like we lost in VMO2. The biggest customer partner we have right now is Vodafone. Vodafone's launching more SKUs. They've moved a chunk of their stuff onto our cloud. They're moving the rest of the stuff onto our cloud. They're going forward with us. In the April webinar you announced Teams Phone Mobile, what has been the uptake of that developed product. That hasn't been well taken up anywhere to be honest, not just call recording. Teams Phone Mobile has not taken up anywhere in the world. That was a year ago that Vodafone presented that at Mobile World Congress, Teams Phone Mobile and Dubber.

30:15 But Teamstone Mobile is not booming anywhere in the world. I haven't seen a takeoff in anywhere in the world right now. Any guidance for FY27 revenue? No, we're not providing guidance at this point. Again, we have a lot of products going to market. I'd love to get excited about it. I'd love to go and spend recklessly on growth. and I hope that they went to market. But as I said to you, what I want to see as a CEO, I've invested in these products, we believe in these products, I want to see the sales start to take off. And when I start sensing certain sectors picking up these products, we will fuel the fire. We have plenty of cash reserves sitting here that we will fuel when the time is right to drive that acceleration. So if you were to grow by say 20% over the next couple of years, what would you expect profit to look like? I think I've answered that one.

31:03 I would expect 30, 40 cents to flow to the bottom line of our growth now that we've reset this cost base. So it was 60, 70% margin, but assume 30 or 40 cents in the dollar would go to more sales team, more marketing, more support staff, more engineering to continue to invest and continue the growth. When do you expect revenue to come from Verizon? I've covered that. Say revenue is $40 million, I'd expect EBIT to be around $3 or $4. Can you estimate the R&D costs absorbed in the P&L for the new product development? Yeah, I'd say we've probably spent, I don't know if I get in trouble for these guesses, but I'd say we've spent a couple of million dollars this year in R&D on these new products.

31:55 What are your expectations for the magnitude and growth from revenue from Verizon? I know what they're forecasting. What's positive is we're signing a change to their contract right now to support the AI SKUs. So that could be even greater. Do I really want to turn up? One thing I've not done to you in two years. is turn up and promise to market anything. I've been pretty straight. I've been pretty honest. I haven't really given any false promises. I haven't really pumped the share price. In fact, I don't even have investor relation companies at the moment. But as we go into next year and we can start to really see the growth, I think then when I can actually not just go on promises, which this company used to bullshit you guys with promises, when I really see real traction, I can actually start to put my hand on it and say, I can trust that trajectory.

32:44 I'll give you forecasts. and I'll give you a forecast that you can trust and believe at that point. Other than that I'll keep credibility. Next year I'll probably bring a lot of investment relations back. When I start to believe that we've gone from suffering the pain of the shit of the past to seeing the fruits of our labour and the investments of our R&D turn. We'll bring back investor relations. We'll promote the share price. We'll promote the business to investors and that'll be the time that we do it. We do it with credibility because we haven't bullshitted you to date. We've kept ourselves credible and we'll continue to do that. Thank you for your transparency. Looking forward to the next year. Can you talk to the share consolidation? Yes. Our shares, I mean, listen, what looks stupid is our share prices are cent, they're half a cent, 0.6, 0.07. People look at that and don't understand that we've got 2.7 billion shares on offer. How did we have 2.7 billion?

33:42 We did an emergency 25 million capital raise in around April 24. We then did another 25 million emergency capital raise, or maybe not emergency, in October 24, where we issued another... 1.6 billion shares I reckon we issued. I mean I'm guessing this guys but they don't hold me to it. And that pushed us out to 2.7 billion shares when we raised 50 million in 2024. It's crazy. So a 50 to 1 share consolidation pulls us back to around 55 million shares. It'll bring the share price back to what right now it's going to be about 30 cents, 35, 40 cents depends when that company's been washed out It's flogging off hard and there's some opportunities around the market right now based on their sell-offs and I think that just re-rates out, puts our share back to more credible things because customers look at that share and say, well, hang on, do I want to do business with a share that's under one cent? They have penny stocks. It's not the right credibility.

34:50 In hindsight, I wish we had it consolidated a year ago. I was probably talked out of at the time. They said, why are you losing money you don't share? Consolidate because you'll drift backwards again. But I think from a credibility point of view and a cleanup point of view, it's neater and tidier that we actually brought ourselves back to a rational amount of shares that a company like us should have. Is your average recurring revenue of existing clients a concern for you and you're working towards improving old existing clients? We're continually working on confidence with the clients. I've spent six of the last eight weeks abroad. I turn up to the clients. I tell them the vision. I tell them where we're going. They know we've been honest. You know what they keep saying? You keep doing what you say you're going to do.

35:35 Your results keep coming like you say you're going to be. I've told them we're going to be stable. I've told them we're going to retain at least eight plus million in the bank. We keep beating expectations. they keep on believing that we are delivering on what we promised and that creates a lot of stability over the 12 months that we've done what we've done and the customers say well and you're investing in product, you're investing in R&D and you're taking us on a journey. We're not stuck in the past, you are taking us forward. Yes we had shutters that happened in 2024 and it takes a year to do a tender and a year for us to lose customers which we've We all know about and we've suffered. Notwithstanding, we've suffered nearly 10% losses through FX as well because we're 94% offshore revenue. Now, that's not helping us that our interest rates go up Tuesday and the US holds constant on interest rates, but that's sickly cool and hopefully it swings back the other way and we pick up our 10% revenue loss on FX at some point.

36:36 Are you looking for a new board member following John Sielak's resignation? Are you able to summarise your senior leadership and their roles? Rob, Ben, Giles, etc. Rightio, so right now, because I'm a scumbag, I'm happy to stay with four directors. At some point, if we had a strategic person that could help us grow the business, we would look at them. So if we found someone strategic around the world that could join our board, or someone that was going to take a material stake, I think it'd be interesting. But right now, I'm happy with the savings and so forth. Senior leadership, we obviously have a leader of each region that runs each region and tries to grow each region. We have a head of marketing, we have a CFO and we have a CTO. They're my main sets of reports through the business.

37:28 What markets are you seeing the most growth in the US and what is leading that? Traditional recording. The US is having a pretty good month this month to be honest. Probably the best I've seen. and right now, yes, they're selling mostly on recording revenues because right now we're doing free trials on AI and notes. People are loving it but we can't transact it so our direct costs are a little higher than they should be because we're paying for the free trials and hopefully as we start to get the contracts on and systems hooked up so they can automatically provision notes and our new AI, that'll come on but the US is our main growth market at the minute. The UK, funnily enough, It's funny when you look what happened in this business in 2024.

38:16 The US market didn't seem to give a shit. They're just like, well, we've seen companies go broke. They go into Chapter 11, they come out the other side. What's the big deal? The UK is the one where we suffered greater pain through and more shudders around, well, what does it mean that you went into trading halls for a couple of months? Are you going to be stable? Are you going to get out of it? Should we take some of your business away and have two vendors? The US seemed to be pretty unfazed about it all, but we are mostly through all those woods because for the last 12 or 18 months, two years that I've been here, I've talked to the market, I've talked to the customers, we continue to deliver. So I don't see people that haven't made a decision to leave us, leaving us now. I think we're suffering from what happened in the past that's now onwards and upwards about where we go.

39:06 Can you disclose how many employees you currently have compared to two years ago? Software, engineering, product maintenance and support? The answer to that is I love engineering. So we've stripped back a lot of people in HR, in product. We've reduced our finance team because we automated a lot of the invoicing to go straight automated invoicing processes. We've done a lot of internal automation in our business. Engineering When I Touch. For an engineering company, you've got to build bloody good product, you've got to have good customer support, you've got to deliver it, and you've got to sell it. And we stripped back our sales team as well, because we sell through indirect channels. I thought it was stupid that we're paying indirect sales channels, and we're paying for sales people. Why are you paying two lots of sales channels?

39:53 If you're using indirect, run them efficiently. If you're going to sell direct, have KPIs on your direct team. And I thought there was too many people. What flushed that out for me is I put double notes, our own product on our own people. And I found most of our sales staff around the world doing calls, external calls for one hour a day. So if they're working at home and only doing one hour a day, what are they doing for the other six hours? and that's what I started to pull apart. Why do we have so many people? Which is great because our story of how we rationalise our business by using Dubba's own products shows the return on investment we got and this is what our customers are going to experience too. can double realistically maintain support, continually improve commercially developed, absolutely can continue to maintain and invest in product and we're going to continue investing in new engineers and better engineers.

40:47 And don't forget, a lot of your software is now built by cloud and AI and more automation. So companies like us can build more faster, produce more software using cloud code, other software techniques, AI, and build it more efficiently and effectively. If we're going to compete in the AI space, we have to build AI and do AI more effectively than everyone else as well. We're in competition. Just a comment. You aren't a scumbag for keeping a lean board. Well... I like to keep our costs in and I like to keep value and invest in the areas that create growth and value for this business. We invest in IP, we'll invest in the right sales team, we'll invest in results, we'll invest in accountability and growth. And a team, I'm a big believer that people do business with people. I want a sales team that people like, people want to do business with, people can trust, honest, ethics and good product.

41:43 You win business, you win technology by having the best product, the best IP. having the best people selling it and then evolving it. The fact that our model allows you to enable and disable features means we continue to build features, push them into the product and our customers will just continually see new products. We complement that with good marketing and sales engagement and that's our model for growth next year. I think that is the whole list of questions. I hope I answered them Clearly for everyone, I thought this was going to be a short presentation because we put the 4C out earlier, but we're already 45 minutes in. Are there any further questions? I'll give it another 30 seconds. If there's no further questions, we will wrap up.

42:42 Good stuff, thanks both. Thanks, very good Prezzo. Time frame for share consolidation, the AGM's on the 25th or 26th of November and that should happen around mid-December, assuming the vote goes through on the share consolidation. Any further questions? or if there's nothing further we'll wrap up. Thank you for everyone for attending and we'll continue to work hard for you, push hard with this vision and hopefully all the fruits of our labour will be harvesting all the stuff that we've been seeding for the last 12 months and hopefully this IP goes out and can turn us into voice AI companies and look at the valuation of these voice AI companies that we're going head to head with. Incredible versus our valuation.

43:40 Thanks everyone and have a good day.

43:42 Thank you.