Getbusy (LSE:GETB) — 2022 Full Year Results

0:01 Good morning, and welcome to the GETBUSY PLC twenty twenty two full year results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the q and a tab situated in the right hand corner of your screen. 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. How however, the company will review all the questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to

0:31 Daniel Raby, CEO. Good morning, sir. Good morning, and thank you. Good morning, everyone, and, welcome to the GETBUSY introduction and 2022 results presentation. We thank you for your time. GETBUSY's mission is to build software that makes people productive and happy. And, our journey since IPO has been a very successful one. We've grown on average 18% recurring revenue CAGR. We've proven that we can create operational leverage and EBITDA positive businesses up to 40% gross, operational leverage. And, we've become cash generative over the last couple of years. We've been cash generative, and we've got, 5,000,000 of available cash headroom.

1:23 So what I hope to do today is explain how we've been so successful, what problems we solve, how we solve them, and more specifically, how we win with our products in what is a fairly competitive market. Our software are relatable. They're practical. They solve every single day to day challenges that professional service clients have. And it's these day to day practical problems that we solve that has created the scale in which, we now have today. And we truly have significant scale. We're we're up at 19,300,000 in in recurring revenue. That's 25% growth on last year.

2:10 We have we do over 3,000,000 esignatures through our platform, which for an esignature company alone would be a lot, and it's just part of our offering. We have 75,000 paying users which share documents with 3.1 collaborators. So that's our clients sharing documents with their clients to get those documents signed or communicated around or approved. We have over 1,000,000,000 in unique documents digitally stored, which saves over 300,000 trees, which is 13,920 tons of ozone. And even our digital signatures alone saves 107 tons of ozone. And so we're doing our bit for the environment as well.

2:57 So over the last couple of years, we've been very successful and created significant scale, which gives us a great base for future growth. And I think our strategic objective that we announced to the market where we wanted to double our revenue within five years, I think this year, we took a big step in the right direction and feel that we're very much on track to achieve that. So what what specifically do we solve? Hopefully, these problems don't resonate with all of you, but I'm considering that a lot of you spend time in professional services, I'm sure you're familiar with these problems. Our clients often have document chaos, specifically accounts as documents core to their workflow.

3:44 Their documents are generally saved in a folder in a folder in a folder in Windows Explorer or just on the desktop or, you know, in file storage. Documents are key part of their workflow. And if you don't have a well attached or integrated document system, then your workflow generally is gonna be inefficient. Emails are a mess. All of us sit there with thousands of emails within our email box, and being able to store a file or search around those is difficult. Security risk is becoming more prevalent within our target market, and compliance is becoming is increasing. And those who work a lot with the counselors will know the compliance pressure in which they're under. So these are familiar practical everyday challenges that our clients face. These challenges have real effect on their productivity.

4:33 And what we see is that there's very poor client satisfaction when they're not using applications like ours. So for example, when accounts are sending a tax return to their client, an old process of, creating a tax return in a tax system and then, you know, filing that in their own system somewhere and then sending it and the client having to print it and then sign it, give it to someone else to sign and scan and email back, then they go to update. All of that was the cumbersome and, challenging process, which didn't create a good client relationship. So, our system, which is very streamlined, wherein our document management integrates into their tax system and automatically sends the document through a cloud portal in which they can digitally log on to and then digitally sign the document and updates the tax record in both the document management and the tax system.

5:25 It's a much better client experience. Staff burnout and and retention issues is a big, big problem for counselors, say. And high value, good staff, especially younger generations, want to work with good tech. They want to be part of hybrid working. They want to be part of innovative firms. And if you're not using, the most modern technology to enable your team to be successful, you're not gonna get the best team. They're gonna have staff burnout, and you're gonna have retention issues. So our application is part of solving that. We've seen a massive increase in sanction and fines in the accounting market. And, again, we support a lot of the compliance burden in which accountants find themselves under.

6:10 And I think, everyone now is much more aware and, thoughtful around their carbon footprint. And as I showed in the previous slide, we support them in being doing the right thing for society as a whole. So, as I said, our our solutions really do solve these problems. They they solve the document. They solve the workflow, the email, the security, and the compliance challenges, and that's what's made us so successful. Specifically, how we do it is through, a group of products. We've got two established products, virtual cabinet and smartphone. They are document management solutions with work flow, client portal, and digital signatures. They sell to both SME and enterprise organizations. They're cloud hosted mobile and on premise, and they're in The UK, US, Australia, and New Zealand. So those are our core established products which, have been growing successful for many years.

7:06 We've got two emerging mark market products. Workhero is our next generation document management, task management, esignature, and tap chat solution. It is focused on the ERP market, and we're confident that through that market, we're gonna open greater addressable markets, and make us, more successful in the future. So our work here is very focused on solving the problems for accountants in in corporate that we've seen for accountants in practice. So they're very much similar problems, that need to be solved. No one is focusing on ERP users in the way in which we are focusing on accountants for the document workflow and the esignature requirements and their task requirements. So we believe that we found a gap in the market. And if we can fulfill the needs of those users, we can have a lot of growth coming through work here over the next couple of years.

7:58 Certified Vault is an extension of the SmartVault platform, and it's focused on secure custodian of digital collateral and, digital assets. So what we've seen in The US banking system is there's greater regulation around how they store and file and keep secure digital collateral. And there's a gap in the market for applications to be able to solve that problem for for banks. So we are it it's natural synergies to what we currently do with SmartVault, just at a more enterprise level. And so for us, this is an exciting opportunity to increase our addressable market for that product. We also got three new technologies which were acquisitions. Stockdown is a form fill application. Quotus is a quoting, so proposal and quote. And HelloPlan is a meeting scheduling applications.

8:50 And all of these will fold into our existing applications and our emerging applications increase our average sale price for new users, make sure we win greater percentage of our demos and prospects, keep the clients that we've got longer, so reduce churn, and then also the upsell option into our existing client base to help net revenue retention. So, we really do have a high quality customer base. We've got 30% of The UK top 100 accounting firms, which is over 75,000 users, over 8,000 customers. As you can see, we've got a very mix of different sized customers, which means we got low customer concentration. Not one customer makes up a huge percent of our revenue, so, we don't lose a lot of sleep over if we lose one customer.

9:38 And as you can see by the bottom of the slide, we've got some of the biggest and the best that have validated our applications and use them on daily basis. We've got a 144 rock stars that work for us across the globe. You can see that the split and the regions in which we're in. That adds up to about seven hundred and fifty years of collective software experience. So our our teams have been doing this for a long period of time. We have excellent staff retention rates, and they're very experienced in the problems they solve and the markets in which they support and sell into. So we've got an absolutely fantastic team that can drive growth well into the future. So that's broadly what we do. I think often we get questioned around, well, lots of people can lots of different applications can deal with these types of problems. How specifically do you win?

10:33 And the answer to that is through very deep integrations. So what we do is we deeply integrate into mission critical software. And, generally, in our target market, that's tax applications. So the workflow that I explained earlier in terms of creating a tax return and dealing with that and then sending it to a client, to do that in the most seamless way requires really deep integration into that tax application. The same exists for an ERP solution like NetSuite. If you wanna create the best value for your customers, then you need to deeply integrate into those applications. This is very much a unique proposition for us and creates the competitive advantage which enables us to be successful. So what is clear is that excuse me. What is clear is that, in these specific mission critical applications, we are the deepest integrators and therefore create and add the most value to those users. And as we'll go through later, those providers have large addressable markets for us to sell into.

11:43 A very specific into, example of that is SmartVault's integration into Lacertax. Lacertax is Intuit's tax product in The US. It's the largest tax provider, to The US accountants market. We are the only document management deeply integrated into the asset tax besides the legacy application. The cert resells us. So if you go into the cert or into its website, you will see that they promote us over anything else, including any of their legacy applications. So by having this deep integration, we have a a lot more data sync. We have single source of truth. We have, less clicks. We just have a much better user experience. And, what we've learned is not only do we win a greater percentage of prospects by being deeply integrated, once we've got them, we keep them at a very, very low gross churn rate. So these deep integrations improve customer retention by more than four times.

12:45 So this is a customer quote. Tracy, we were fortunate enough to have her at our Capital Markets Day last year. She's from, HFL accountants, and, I I think that the beginning of that quote is very telling When we saw the integration between GETBUSY and TAPscout, which was SmartVault in this case, we made the decision to switch switch overnight. So that's a perfect example of how, by the having this competitive manager in this proposition, we're constantly winning clients. So we've created this competitive, advantage in large addressable markets, which we can create substantial businesses. What we're very focused now on is making sure that we sell aggressively into those markets.

13:32 And we take two approaches to do that. The first being, a channel approach where we look at influencers or, other applications or system providers within the ecosystem around these mission critical software, and we get them to resell on our behalf. And complementing that, we got a very scalable customer acquisition inbound model. So we've got excellent teams and are very well versed in doing this, and we create, engaging content or webinars or influential pieces of material that engage with the prospect base. We then nurture them through an inbound funnel, and then they ultimately get to our highly skilled sales team for demos.

14:19 And our demos are converted at greater than 50%, which, shows how well intended the buyers are. So we've done a really good job through the consideration phase to make sure that they understand our value by the time they get to our sales team. The we are very capital efficient in the way in which we we had these inbound models work. So in a fully loaded CAC, there's twenty month four month payback period for sales and marketing expense. And if you look at the lifetime value of those customers, there's a four to one return on their spend. So I think this those 2 figures more so than anything else justifies why we continue to focus on, top level growth because, ultimately, those that are familiar with SaaS businesses know that they become very, very cash generative in the future. So the the more we can grow our top level top line growth, the more cash generative and, the bigger the prize is at the end of the the rainbow.

15:16 So I think for these reasons, we're very encouraged about the direction in which the organization is going in and believe that we can create, substantial stale scale in the future. Great stuff. So that customer acquisition model over the last four or five years has, landed us a base of what we consider to be very, valuable customers. So, typically, our churn rate, so that is the proportion of our revenue that disappears each month from existing customers leaving us is about nil point nine percent per month. That's down in 2022 from from 1% in 2021. And we expect that to continue to improve as we focus on, you know, core target customers in the right cohorts who are tremendously valuable to us over time where we bring most value to them.

16:10 Our customers tend to spend more with us over time. So in 2022, our net revenue retention, so that's how much does our revenue grow each month before the addition of new customers, was a 100.3% per month. And if you look on a, a larger scale, if you take the customers who are with us today, who are with us at the time of IPO, that customer base is worth 35% more to us than our entire customer base at IPO. So once you get our customers in through the door, they tend to be extremely sticky and extremely valuable over a long period of time. And that gives us excellent revenue visibility, as a business. So 95% of our revenue is recurring in nature. So that is it's a subscription contract that renews either every month or every year.

17:03 That helps us to forecast and to plan our investments very well. About 70% of our customer base pays us annually in advance. That helps enormously from a working capital point of view and helps us to reinvest that capital for more growth in the business. And the lifetime value of our existing customer base, that's a discounted, lifetime value at the gross profit level, is just over £200,000,000. The cash flows from these customers is tremendously valuable over time.

17:37 So our pricing model is a subscription pricing model. We we only sell subscription products. We we we, a long time ago, sold upfront perpetual licenses and consulting, but now we focus solely on subscription products. We've been through that transition. There's no more sort of pain remaining from any of that transition. Typically, we charge on a per user basis, and that cost is typically somewhere between £30, $40 per user per month. Exactly how much you pay will depend on whether you pay us monthly or annually, how large you are, the the extent of your integrations, whether you're an accountant versus being a general business. Typically, for enterprise customers, we bring those on on a three year initial term that then renews annually. But we do also offer pure monthly and pure annual subscriptions as well. Typically, our customers stay with us for about nine years. We've got customers who have been with us for well over fifteen, and we charge a little bit of implementation and training and onboarding. It's nice cash to have. It's not especially relevant to us in terms of KPIs or or or metrics, but it helps pay some bills.

18:49 Once we've got customers in through the door, we have opportunities to expand in that customer base as you saw from the the previous slide. And we could do that by selling additional users. So, ideally, we sell to growing customers or adopt a land and expand strategy where we might initially sell to one department or one office sort of accounting firm, then hopefully, over time, expand out into other departments also where our customers organically grow that additional users for us. And we also look to sell additional capabilities to the existing client base. So the dock down and quotas acquisitions that we made at the end of twenty twenty one, were made with precisely this in mind to help us to sell additional capabilities to the existing client base, get them further embedded in our technologies, and ultimately deliver more value, to us. And, of course, we also generate more revenue from existing customers through price progression, move them up through pricing plans onto high level plans and and that sort of thing. So all of that has generated us a £19,200,000 ARR position at the end of twenty twenty two.

20:02 So the markets we're in are very large. We size these markets in a really simple way, which is that if you work in an accounting firm, then you are almost certainly a potential user of our products because you will be handling documents in in some way. So we simply establish the number of people working in these industries in the territories we're in, and then we multiply by our average selling price. So a very simple way of sizing the market. But we approach these markets in a slightly more intelligent way than this. And as Dan talked about earlier, key to our value proposition are the deep integrations with other core mission critical back office software. An example of that on the bottom left there is Intuit's Lacerte tax product. We know there's a a user base of Lacerte and their their sister product pro series of about 200,000 people in The US.

20:55 Each of those is a potential user of SmartBot where we know we can deliver an excellent client experience. And so multiplying that by our typical selling price of SmartBot, that's a $100,000,000 ARR market. We currently have about 7% of that in The US. So you can still see there's a significant way to go in that business. And then we can apply a similar logic and methodology to other tax products in The US. For example, just to the right of that is Thomson Reuters, similar size in terms of user base to Intuit. We can create an integration, which ultimately will deliver an enhanced client experience and ultimately generate us great product market fit in another segment of that market. And we're applying exactly the same methodology to Work Hero in the ERP space starting initially with NetSuite, which has a client base of about 33,000 customers.

21:50 We estimate that's about $600,000,000 ARR potential for that market in NetSuite alone. And then after that, we'd look to expand similar capabilities and integrations into Sage's Intact, Acumatica, and then there's a long tail of other legacy ERP applications like SAP that we'd also look to do the same thing with. So looking at how we performed in 2022, we've had very good annual recurring revenue progression over the last five years. The volume of our recurring revenue has increased in a reasonably predictable way over that period of time. And we also reported our first, adjusted EBITDA profit in 2022, and our cash, has has increased about 15% and has been increasing for the last, three years year over year.

22:45 Diving into revenue in a bit more, detail. So our user base was up 2% in 2022, and our ARPU, that's the average revenue per user that we generate, was up about 16% to £256. There's some interesting dynamics hitting both of those numbers. Typically, we see user growth year on year of somewhere between 46%. We started a an exercise at the end of twenty twenty one to bring a lot of our older and smaller customer base onto minimum user number contracts and to current market pricing. And so we saw at the end of twenty twenty one a relatively artificially inflated user number count.

23:30 And as some of those users churned very low value users churned over the course of 2022, that caused a user number headwind, but it also increased our ARPU significantly. So that that exercise has been tremendously useful for us as a as a business. We now have a cohort of very committed customers who have made an active decision that the products we sell and the products that they use day in, day out create significant value to their business. At the same time, we've whittled away those customers who were perhaps less engaged and who were paying us very, very little, indeed. So that same, dynamic has impacted our average revenue per account. That's the bottom left number there number, which is, up 23% to just over £2,000.

24:15 We've already talked about churn rates, which has gone down, our net revenue retention, and our return on investment in customer acquisition spend, which is four to one.

24:28 How do we get to this ARR position at the end of twenty twenty two? We provide versions of this bridge, I think, at every results presentation, and we sort of live and breathe this segmented by different products and different customer profiles in our business every day. And in our business knows which of these columns in this bridge they are responsible for or have an influence over. So it's a great simplified way of running our business. Worth noting that in 2022, the two middle columns here, net expansion and the churned customers, have been slightly exaggerated, and that's a result of the monetization, the price increase exercises that we've been doing. That's inflated the net expansion number. Probably about two thirds of that comes from the price rise exercises we've been doing, the rest is from organic expansion into the existing customer base.

25:20 And churn is probably also exaggerated by maybe a quarter or something like that over what it would otherwise have been absent those price rise activities. Those activities are now largely complete. You wouldn't expect them into the into the future. So looking at our p and l, key thing is to look at the the functional spend here over on the right hand side. So we spend about a quarter of our operational expenditure on acquiring new customers. We're looking to increase that in 2023. Our product development, our operations, our sort of delivery mechanisms, and sort of the back office admin all reasonably stable. So we've got a stable platform that's capable, that's scalable. We don't need to invest significantly in any of those areas. So all future investment or a substantial part of future investment will will go into acquiring new customers at that very favorable four to one lifetime value to acquisition cost ratio.

26:20 Just looking at cash. So this is our third successive year of, cash generation. There are two areas that impact us significantly and are very helpful to us from a cash flow point of view. The first thing is that 70% of our customers pay us annually in advance. So as we continue to grow, creates very significant working capital upsides for us in that deferred revenue line there. And that's a fantastic dynamic of any growing SaaS business, and it's one which we benefited from for the last few years. In addition, addition, we're a recipient of UK r and d tax credits. By the time we've netted off taxes, we have to pay in other jurisdictions. That's delivered us about £750,000 in 2023. That regime is changing, and we'll start to see that reduce slightly over the next few years. But it's for us, it's a it's a very nice to have, but it's not something that we are reliant on.

27:15 So at the end of the year, we had £5,000,000 of cash facilities available. That's £3,000,000 of cash. And subsequent to the year end, we entered into a new loan facility, which I'd like to just take a little bit of time to talk through the rationale through now because I know there's been some questions. So December is pretty much our best time of the year for our net cash position. We have a significant volume of our customer renewals during the course of of q four. So we have cash fluctuations over the course of the year, and it's not unusual certain month ends during our our our year to have probably about 50% of our year end cash balance. So so those oscillations, as we grow, are becoming more significant.

28:01 So having a facility in place, even though we haven't needed to draw on it in the past, is absolutely fundamental for, our business. Now the market has tightened significantly, over the last six months. Our existing or preexisting facility with Silicon Valley Bank is up for renewal within the next six months. So we had to have that something renewed or replaced by the end of by the end of twenty twenty two. Where the market has tightened significantly, there are very few providers out there who are willing to lend to asset light and modestly cash generative businesses like ours. That's just a a fact of the market right now, and I'm regularly in contact with my colleagues at other software businesses. They experience exactly the same thing.

28:48 In addition, Silicon Valley's, facility Silicon Valley's facility comes with covenants that, in practice, are challenging to be able to use the cash in a meaningful way. And that's a theme which is repeated across other mainstream banks. And there's only two or three other banks that lend to our sorts of businesses in The UK. So we carried out an extensive exercise to look at the alternatives that are available. That's both with other banks, alternative lenders who tend to require, you know, very high cost money and sort of take your children as as security as well. And neither of they or none of those options were perfect for us. Workable, but certainly not ideal. And the cost of them all has been going up.

29:35 So we received an offer from one of our directors, Clive Ravi, for a 2,000,000 facility on the terms on the right hand side there. And versus all of the alternatives we had available, it was a very attractive offer. Overall, it will cost us about £30,000 more than our incumbent expired facility with Silicon Valley Bank. And bear in mind that that facility and any new facilities that we we entered into elsewhere would likely have cost significantly more than the expiring Silicon Valley facility. So we consider this to be good value for money. It's non dilutive to to to to the the business at a relatively modest cost over what we were paying in the past and probably highly competitive with what is available out there practically for software businesses like ours.

30:23 So just moving on to our outlook. Just worth flagging, FinCap initiated on us on Wednesday this week. You can get their research free of charge just by searching for ThinkApp research portal and signing up there, and you can download their research from the website. So what does the future look like for us? Well, first of all, just worth reiterating. You know, I think the markets that we're in are fantastic. They're buoyant. They're very resilient to economic challenges. They're relatively underpenetrated. And once we're in, we're very sticky. And that's because we have very relevant products solving really practical problems. And you can see that in our churn rates and the fact that we've been able to have an increase in our ARPU, the the amount we charge customers over a period of time.

31:14 So our customers are sticky. We think we've got great firepower on the balance sheet to invest for further growth. So you can expect from us sustained double digit ARR growth. We'll be reinvesting an incremental roughly million pounds in sales and marketing over the course of 2023, and that's off the back of that four to one LTV to cap ratio. A large portion of that will go into SmartVault, but we'll also be investing that into Work Hero virtual cabinet growth. And you can expect us to be, at the underlying level, cash flow neutral to slightly positive, which is very similar to what we've been in the last last few years. We announced at the end of twenty twenty one our ambition to double the size of the company within the next five years. We're well on track, to do that. And as an additional indicator of our, ambition, we announced a new incentive structure, at the beginning of this, this week that targets cash distributions to shareholders over the next seven years. The entry hurdle for that incentive structure is at £70,000,000 of cash distributed to shareholders over that period of time, ramping up to a target of a 120 and a stretch target of a £150,000,000.

32:27 So significantly in excess of where our overall market capitalization is right now. You can find more details of that structure in our annual report. And if anybody has any questions on it, please don't hesitate to get in touch with us at the usual investors' address. So with that in mind, I'll hand back to the host, and we'll move into some q and a. Daniel, Paul, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab, which is situated on the top right hand corner of your screen. We'll let the company take a few moments to review those questions submitted today. I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard.

33:12 As you can see, we received a number of questions throughout today's presentation. And, Paul, if I could just ask you to read out the questions where appropriate, I'll pick up from you at the end. Super. Thanks, Alessandro. So first question here, and thanks for all those that have been presubmitted. I know that some of the ones that have been submitted subsequently, I think we've answered in in the presentation. But, again, if anyone needs any clarification, just please don't hesitate to get in touch with us. So the first one here, smart vault and virtual cabinet have high customer retention rates, and these remain high during the recent monetization exercise. Given the cost savings these produce, I assume that's the products produced for our customers, do you think there is further scope to increase the price you charge for the current products current product offerings of SmartVault and virtual cabinet?

33:58 Do you wanna take that down? Yep. Of course. So the short answer is yes. I think that, it probably won't be as significant as what we went through the last twelve months as we won't have the opportunity to move everyone to current retail price. But I think before the additional capabilities that we're adding specifically around form fill proposals, meeting schedule, we can look at a price and packaging exercise, which gives us additional functionality, extra functionality to everyone at a high average sell price. So I think, over the next couple of years, we have we'll have, more opportunity to increase, the average user price and the average account size, through, these additional capabilities.

34:48 Thanks, Dan. Inflation in The UK and many other countries is close to 10%. We'll get busy by increasing their prices to adjust for that, and also what's the impact on inflation on the cost base. So you'll have seen over the last fifteen months or so that we have been putting in place price increases to our customers. Our contracts with our customers allow us to do that. Not formulaic, so we we take a a very careful targeted approach to look at certain cohorts and the value that we provide. But, hopefully, as you've seen through our ARPU progression, you know, we we very much do tend to see increases in prices over time with our customers. Yeah. We haven't been immune from the effects of inflation on our cost base, but, actually, I would say, overall, that's been pretty well controlled.

35:41 We tend to have a reasonable amount of variable cost in in the business that's based on performance targets and and that sort of thing. But I think more importantly, that inflationary environment actually increases the demand for our products because probably no one has seen that inflationary impact more than accounting firms who have some challenges with getting hold of staff in the first place, but also in terms of the amounts that their staff are commanding. So we're seeing accounting firms trying to become better at making their people people more productive, and we're a part of that solution. So, yeah, of course, we we can't be insulated from it as a business, but actually, net net, it's probably beneficial for us. So next question, can we get a clear update on progress at Work Hero, especially given the NetSuite deal?

36:30 It'll be helpful to get a feel for the medium term potential of Work Hero and also the annual r and d spending on it. So I think what was encouraging about the last twelve months was the progress we made with Workio specifically within the NetSuite prospect based, client based, and ecosystem as a whole. So those that follow us closely would have seen that we won international suite app of the of the year at the NetSuite conference in September in Las Vegas. I think that was just recognition from NetSuite itself that we are solving a problem that exists within their client base. Since then, we've had a significant amount of partners within the ecosystem sign up to resell our product. We've got a really strong pipeline in place of larger customers that are looking at our applications to solve these types of problems.

37:26 So I think what is clear for us is that there is an opportunity in this market, and we have, the right solution to solve that, those problems. To further strengthen that, what we've done is we've combined the virtual cabinet and work here at businesses into one business. And what that enables us to do is, first of all, find cost synergies between two. Second of all, leverage off the experience and the enterprise capabilities that the virtual cabin team has in this ERP space with Work Hero. And what I think you will see is that over the medium to long term, work here is starting to contribute significantly to our top line growth. And I believe that the opportunity within that NetSuite client base and the ERP space as a whole is the biggest opportunity that our business currently has.

38:19 Great stuff. Next question. Investors have been looking forward to faster growing US smart vault revenue becoming a more substantial part of the business and thus impacting company wide growth rates. Please comment on why ThinkApp are forecasting this to slow to 12 '23 and and 2024 from the recent high level. So first of all, that mechanic of the fastest growing part of our business business now now becoming the largest part of our business is is absolutely correct. We have a history of, yeah, of of providing fairly conservative guidance as a as a business. You know, we've never missed the market number. We've only ever upgraded. And so I think it's natural that FinCap would initiate with relatively conservative numbers. But, hopefully, the presentation today has given you an indication of, you know, certainly what our ambition is and where we can take the company to.

39:14 But certainly, as a CFO, you know, I I very much want the market to be in a, you know, relatively conservative position in terms of forecast than where that ambition lies. So next question, I think we've answered the one on Work Hero here. There's a question here around what percentage of development expenditure is spent maintaining an update updating integrations. That that fluctuates. So it will depend on the extent to which our integration partners are updating their products and whether those updates are trivial or or relatively substantial. Probably, overall, it's of the order of about 1515%, 15% of our expansion goes into maintaining those integrations.

40:01 Obviously, new integrations adds another layer to that as well, but I think the question is specifically around the maintenance of existing integrations. Question here from Alan. Given price rises can't be repeated and users are up 2%, what level future growth come from? So I think I touched earlier, Alan, on the on the 2% number. That's fairly sort of deflated versus what the the the trend tends to be, and that's a result of the exercise we went through during the course of 2022. Growth in the future comes from adding new customers, so very much user growth, but also expanding into the existing client base. So the acquisitions we brought brought in at the end of twenty twenty one, quotas and dock down, they were released into general release in January of this year. We expect them to form part of our expansion strategy into into the existing client base. So ARPU growth will still be part of our our growth plan as well user growth as well.

41:07 Another one from Alan here. Why is it taking so long to get certified vault security accreditations ready? I think yeah. Well, I think what's important about this market is the type of assets that we're dealing with are different to the type of assets that we deal with within the accounting market. And so the potential liability attached to those is is greater. So what we need to make sure is that when we move into this space, which clearly is a problem that we can solve, that we do it in a very safe way. There is no point in us risking the rest of the business, which is so successful and has such great growth potential on the liability that sits with these with these assets that we're holding as on behalf of the bank.

41:59 So we are heads down in the process of making sure that we are compliant with this application. Once we do become compliant, which we expect probably by the end of this year, then I think this, again, opens a great addressable market for us and helps with future smart vital US growth. So we're we're pretty clear that the opportunity exists there. I think the when we launched the product as a beta, we were, overwhelmed by the amount of, opportunity that came on the back of it. But once we got into the detail of what was required for these customers, we learned that we need to do this the right way and not the quick way. And, that's what we're in the process of building out now. And I think we're probably twelve twelve months odd away from it being correct and ready for complete general release.

42:50 Great stuff. There's a sort of follow on question to that from Christian, which I'll take, which is, is there any way to accelerate those certifications? I obviously, we're we're doing that as fast as we as we can. It's not something you want to shortcut. It's not a case of just throwing lots and lots of people at it. There's a lot of, you know, technical know how that that's required in in in these things. And you're also, to extend to the mercy of an auditing body as well. So whilst, you know, we are doing everything we can to make that process happen as quickly as possible, it's more important we get it right than we do it very quickly, I would say. A question here from Tim. It's good that you're now EBITDA positive and generate cash, but one thing I think the market would like to see is positive PBT. When do you envision that will be the case? So I feel this would be positive for the shares.

43:39 Certainly take your point in in in that, Tim. I'd reiterate that our focus is very much on reinvesting sensibly for growth at the top line because that's ultimately what we think will drive the value of this business. Fully appreciate that the the tendency of The UK small cap market is to, you know, prefer profitability all the way down through the the the p and l, but we don't believe that is the the right thing for the long term interest of the business at this point. Ultimately, that will flow through. We have no doubt about that. Question for you here, Dan. Sales strategy and mechanics for identifying and converting potential users to paying locked in customers? So, effectively, how do you how do you how do you convert customers, and how do you make sure they are engaged?

44:25 So we have a very scientific approach to how we market and sell to customers. Our primary sales strategies and income where, as I spoke to earlier, we create touch points, engagement points with the customers, and we monitor how each engagement point performs. So what are they engaging with? How how often? How long? If there's a video, how long did they watch it for? If there's a piece of content, how much of it did they read? If they're on our website, how long were they on our website? And then once we start to form an understanding around the prospect, then we nurture them in that way. So for example, if they're spending lots of time on the digital signature section within our website, we create lots of content for them around digital senior and nurture them down that consideration journey.

45:15 And then by the time they get to our inbound sales team, we understand them. We understand what their requirements are. We understand what their problems are, and that's why we have such a high conversion rate for our our sales team. We have a very thoughtful and scientific approach, and that's why it's been so successful. What we're focused on now is scaling that. So making sure that we continue to do more of that in a capital efficient way and continue as we invest more in sales and marketing to get the current return rates. And so there's a lot of focus going on, not just making it better, but how to doing much, much more of it in a scalable way, through all our applications. Great stuff. Thanks, Dan. Question here from Vienni.

46:01 When you have a an LTV to CAC ratio of of four to one where you where you're probably recording a loss in year one of signing up a customer and focusing on growing AR, isn't it a bit strange to be thinking about dividends? I think I'll answer that by saying don't necessarily read into what we're saying is we're, you know, we're not sort of constructing a dividend policy at at this this stage. Stage. We very much believe that ultimate growth and value comes from investing for growth in the top line and cash flow ultimately will will follow that. But we're certainly not looking to sort of pivot from 2023 to, you know, a a cash generative or highly cash generative dividend paying organization. Question here from Tim on set of goals. I assume this is around.

46:49 Are you in talks with potential banking clients already, and when do you expect the first customer? Well, yeah, I think we we are in talks with with banks. And for Certified Vault specifically, the ultimate goal for us is that they mandate for their clients that they have to use a certified vault to get a loan through that bank. That obviously is a very long sales cycle. And so we're in talks with the banks, understanding what their requirements are, understanding what their customer requirements are. And we've we've seen some we've seen customers come through those banks already and learning a lot from them. So the success has started, albeit very slowly and in a very light way.

47:38 But I think through that, we're learning how to do this at scale and what ultimate success within this market looks like. Excellent. So another question here. The message I received from the think app research is that the exit route may well be being taken over in a very significant increase on the current valuation. Comment, please. I I think, yeah, the think app notes makes it very clear, you know, and and emphasize essentially, you know, how much value we believe there is within this business. You know, as a public company, you know, there is always a reference point for your value. But I think what I would stress is that there is no way we would allow this business to be taken over at suboptimal valuation.

48:27 Unfortunately, that's been the fate of a lot of software businesses in the public markets in The UK over the last twelve months. We're fortunate that we have very supportive shareholders who will help defend any, if you like, low ball speculative opportunistic approach for the business. So I think the emphasis in the think app note is very clearly to emphasize that this business has a lot of intrinsic value as a whole, but also in its constituent parts. Question here from Nigel. Are there any opportunities in other channels such as law in that five year journey? Good question, Nigel. I think as I spoke to early in the presentation, the key to our success is deep integrations and submission critical software.

49:19 So if we were to move into any other vertical, for example, legal, we'd have to recreate that value proposition, which in itself is challenging and difficult. Within legal markets and several other markets, there are generally bespoke document management solutions that have created this similar type of competitive advantage. And therefore, for us to move into those markets is, becomes very competitive and and costly. We believe, and we're very strong in the fact that there's big enough addressable markets within the areas that we currently have competitive advantage. If we put our head down and focus on those, we're gonna create substantial shareholder value over the next couple of years. So we're in the fortunate position where the markets in which we are currently successful have enough buying demand and opportunity, to increase value. And so, in terms of return on investment, we're much better off focusing on our core markets and continue to make them successful than moving into any adjacent markets.

50:17 Excellent. I've just seen we're running over time then, but we'll perhaps answer one more question here. There was a big increase in capitalized development spend this year. Can you explain why and will this be the level going forward? I think the first thing I'd say to that is, you know, we we produced two profit or loss numbers, adjusted EBITDA, which capitalizes development spend. That's to help us become more comparable with other businesses that do the same. And our adjust adjusted loss number, which just expenses all that. We run the business on that adjusted loss number. That's as close as you can get to a sort of a a cash flow loss before working capital. So my my message would be, you know, ignore capitalization in any business. Don't read too much into it. There's so much judgments involved in in these things as to render them essentially meaningless.

51:09 The increase for us, however, was caused by our product met for the first time the criteria for capitalization, so around the commercial viability of it. So that's the key change in our capitalization this year. But, you know, I would strongly suggest that, you know, you you sort of ignore the levels of capitalization and look at the underlying cash spend of any business. With that, I think we're sorry. We are five minutes over, so my apologies. Daniel, Paul, thank you very much for that. I think you've addressed those questions you can. And for every question you answer, another one comes in. But, of course, the company will review all the questions submitted today, and we'll publish those responses on the investor meet company platform. But just before redirecting investors to provide you with their feedback when which I know is particularly important to you both.

51:57 Daniel, could I just ask you for a few closing comments? Yeah. First of all, thank you everyone for your time. We really appreciate it. We have been very successful over the last couple of years and created, scale within our business and additional opportunity, which we think will create significant shareholder value over the next, couple of years. So as a board, we're very aligned. We're very optimistic, and we're determined to realize the potential in which we have. Daniel, Paul, thanks once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete, but I'm sure be greatly valued by the company. On behalf of the management team of GETBUSY PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.