Celebrus Technologies plc

Good afternoon and welcome to the Celibris Technologies PLC final results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and they can be submitted at any time using the Q&A tab situated on the right-hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today on published responses, which is appropriate to do so. Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO Bill Bruno. Good afternoon to you.

Hi there. Good afternoon to you as well. And thank you, everybody, for taking some time today to hear our results from the prior year ending on the 31st of March. Ash and I will be spending quite a bit of time today, largely spent by Ash, walking through all of the various financial changes in addition to the results from the previous year. But during the trading update in April, we also walked through an extensive list of adjustments that we were making going forward to the business with regards to things like our revenue recognition, this previous financial year being the first year fully in US dollars. and several other elements that we'll walk through today in depth and help you understand the differences and the changes and what that means and where to focus on from a business perspective to align with what we view as being both strategic to the business, but also what we view as being the most value generating for shareholders. going forward. So with that, I will turn things over to Ash and we will start with some financial highlights and walk through some of these accounting changes. As mentioned, the Q&A tab is open. I'm keeping an eye on that on my screen here. So as you do have questions, feel free to throw them in there and we'll address them either in the moment if it makes sense or we'll we'll wait until the end and there will be ample time at the end as well for you to submit a variety of questions for those of you that have attended these before we usually try to make sure that there's way more time to answer your questions than there is for us to to do the speaking um so with that ash i'll throw it over to you sir and you can give it a go

Thanks, Will. So let me just run through the financial highlights and I'll go into some of these points in a bit more detail in the subsequent slides. Obviously, the key point as we kick off is really about the accounts being presented in US dollars for the first time. I'll talk about why that is. And I'll also talk about the changes we have already made in the current year that we're reporting and the changes we will be making from the year that April 2025. But on a historic basis, the key points are that ARR was up almost 14% to 18.8 million. This is under the new definition, and I'll come and talk about that new definition and why we changed that definition. Total revenue in the year was 38.7 compared to 40.9 million last year. The headline revenue is really kind of There is a degree of lumpiness to it, and that's because of hardware sales that we've made historically where we recognize the revenue on those hardware sales, but only have a very small profit margin. So what we tend to focus on is the software revenue, and that was up to 30.3 million up from 20.7 million. 27.7 million the year before, so a 9.4% increase. The gross profit margin, again, is affected by the low margin on hardware. That's why we tend to focus on the software revenue gross margin. That has gone up this year to 75% from 72.8% last year and from around 68% a few years ago. So the work we've been doing in terms of making the business scalable um and getting the efficiencies within the businesses kind of paying off in the software margin that also is going to change in this current financial year and i'll talk about what that changes and why it's important for you to understand the pbt of the year was 8.7 million and the statutory profit before tax so after all the non-cash charges were 7.3 million both of those up on last year And that gave us an adjusted diluted earnings per share of 18.24 cents. So all of these numbers, if you remember, are US dollars. We're now reporting EPS in cents. Although when you see the annual report, you will see the EPS also in pence if you want to look at it that way. Compared to the share price, that may make sense. The share price is obviously still in pence. And the dividend also we will continue to pay as a GBP amount. So the amount we're proposing for the final dividend of this year is 2.32 pence. and that's an increase of 3.8% compared to last year. And if you follow the company for the last few years, you'll know we have a very healthy balance sheet. Our year-end cash position was 31.5. That's down from last year, and that's basically due to an unwinding of the debtor and creditor position, again related to third-party hardware, which again distorts our cash flows and our working capital. And I'll talk again a bit later about why that's important to kind of flush out if you like in terms of how we view the business and how we report it. So 10, 15 minutes on accounting and reporting changes. The driver behind these has been the increased visibility and transparency we want to give to investors to be able to understand the business better, to be able to see the growth and the changes in the business more clearly. And I think it's fair to say in the past, where we've had some of this reporting we've had buckets of revenue or ARR aggregated between the celebrist business and the non-celebrist business as we call it so some of the historic customers that we've had for some time and that has perhaps been a little bit confusing so now we're going to split all of that out so let's just touch on the USD reporting first so that's effective in terms of our reporting from this round, effectively, but it fall from 1st of April 2025. And there are two drivers for this. Firstly, as the business grows and most of our customers, whether they're in the US or whether they're in Europe or in Asia-Pac even, prefer to contract in US dollars. And that's probably because for the large part, they also report their numbers in US dollars. So Every time we win a new contract, we need to set up a forward FX contract to hedge the risk if we're reporting in GBP. But of course, as the business grows, that becomes very unmanageable in that every time we sign a new deal or an upsell or even a renewal, we then have to put in place three FX hedges effectively.

And the reason for that, sorry to interrupt, Ash, I just want to, just in case others are unfamiliar and to reinforce this point, our standard commercial model with a customer, whether it's a new customer or a renewal of an existing customer or even an upsell, So that is any time we're signing on a customer, it's a three-year deal that comes into play, hence Ash's point about having three forward-looking contracts.

So by reporting US dollars, we effectively negate that FX risk. Obviously internally what we've done at the start of last year was converted our GBP cash holding to a USD cash holding for the large part. Obviously we retain an amount of GBP for our UK cost base, but that cost base is now effectively hedged. So at the start of every year, what we're doing is rather than putting in place USDFX contracts for every single customer contract. We're now putting in place 12 GBP contracts, knowing the amount of GBP we're going to spend every month, because it's basically our staff and our office expenses in the UK. With hindsight, this was the right time to make this change. Obviously the volatility of the USD against GBP over the last six to 12 months has been pretty shaky, very volatile. So we've effectively avoided any risk around that by changing to USD reporting. The second change which you'll have seen in the announcement is our definition of ARR. So as I said earlier, previously, we've shown a single metric which related to all of the group's recurring activities, both the celebrous platform activities and the non-celebrous. And that has been a bit confusing. So what we're doing now, is we're breaking it down not only to a narrower definition of ARR but even within that we're going to split down the ARR and there are two main components to it one of the components is the cellular software licenses but that also includes the support maintenance the cellular cloud and the reason for that change is that for the last 18 to 24 months when we've issued quote to potential customers, we've issued them as a single number. So rather than previously having had licenses and support and maintenance and Celeros Cloud as separate lines, we view this now as being a single offering. And so for that reason, we're issuing a single number, which also speeds up the sales process somewhat and is more understandable by the customer in terms of their budgeting and allocation of costs. So everything Celeros related is one segment of our ARR. And then the other segment is managed services. And this could be sort of, it's mostly non-celerous. So that gives you a clear definition as you're looking at the core of the business that we're growing, the celerous business. You can then see not only how's the total ARR grown, but how much is the celerous ARR grown? Because that really is the value creator for shareholders in the long term. OK, so that's the definition of AR. So these are changes already in place in the announcement you see today. Let me just go on and talk a little bit about the changes in future reporting. So. Our revenue recognition is changing. Historically, we have recognized each component of the items I described. So whether it's license or support and maintenance or Seller's Cloud in slightly different ways. So support and maintenance and Seller's Cloud were recognized month by month because that's effectively how the service is delivered. But the license was recognized in a lump sum. each year so in a three-year contract when we sign a contract we'd recognize the whole of the license fee for the first year in that month and they would recognize year two a year down the line and year three in a lump sum two years down the line That gives an element of lumpiness, and that's part of the reason why we've had a bias between the first half and the second half revenues. By going down this approach, we negate that sort of bias over a period of time. There's a transition period I'll describe to you. And basically, it's more reflective of what we're doing, which is effectively a SaaS-like service and not splitting down the different components of what we're selling to our customers. So the impact of that is that for this current year, we will see revenues lower than they would otherwise have been. And I'll give you an example of why that is. We have a number of our renewals coming up in December, and that was a reason for the first half, second half waiting. Historically, we would have recognised 12 months of revenue from those contracts in December for the months of January, February and March. Under this new basis, we'll, sorry, we'll recognise the whole year. Under the new basis, we'll just recognise three months. So the impact on this year's revenues is taking those contracts down by nine months or depending on when they're renewed. So that has quite a material impact on our revenues. That will happen also in the following year and it'll happen in the year after that. But because we have three-year contracts, it takes three years effectively for it to flush through. The biggest impact is in this current financial year, and then we'll see a slightly lesser impact in the next year and a lesser impact still. And that's why when you look at the analyst numbers, you will see numbers going out to FY28, because FY28 effectively is the most kind of normalised income statement with all of these sort of revenue recognition transitions having passed through. An important point around this is that our contractual terms with our customers don't change. This is just a rev rec matter. So customers will still contract for three years. It will still be non-cancellable. They will still pay annually in advance. So in that sense, it's not like what some people might consider as a SAS contract. This isn't a month-by-month payment or a month-by-month commitment. Everything stays the same. And so our cash flows will generally be positive because we'll always get cash up front compared to the revenue recognitions. Okay. Right. Cost of sales. Let's talk about that. Historically, the company had allocated a portion of OPEX into cost of sales. And the reason it did that was under the old business where we had a lot of on-premise customers and there were a lot of staff connected with those customers. our professional services teams and our managed services teams costs were transferred into cost of sales so whatever opex space we had an amount of that many millions was then transferred into cost of sales what that meant is that it gives us a margin in the region of 75 doesn't look like a software company and it's very confusing for investors. So what we'll now do is that we'll keep all of our OPEX in the OPEX bucket. We will not be allocating costs to cost of sales. And the impact of that is to give a cost of sales and a gross margin, which is more reflective of us being now a software company. So margins in the region are 90% plus, which is what you'd expect. That's one benefit. The other benefit is It'll be much easier with all of the OPEX in a single bucket for you as an investor to be able to track our growth in OPEX. And obviously that's something that we keep a close eye on. But it wasn't apparent to investors when you didn't know how much was being allocated from OPEX into cost of sales. So it's going to be a lot clearer. And so what will go into cost of sales now is only going to be software costs. related to customer delivery. So these could be AWS costs, cloud costs, some of the particular software that we might use in terms of some of our customer delivery. So that will make our income statement look more like a software business and it'll allow investors to track our ROBEX growth over time. Hope everyone's still with me. OK, this is the third slide on the reporting changes, the final slide before I move on to something else. And this is really showing how we used to report or have reported for the prior year, the revenue categories. So if you look in the notes to the announcement, you'll see the breakdown of revenues is broken down into licenses, seller's cloud hosting, support and maintenance services. That gives a subtotal of software revenues, which is what we tend to focus on. And then below that, you've got third party products and revenue. The confusion, I think, for investors was that the licenses category included seller's licenses and also some non-seller's licenses and the same for the other categories as well. so you couldn't really discern um what the underlying growth in the valuable sellers business was so we've clarified that alongside clarifying the arr so the new categories we'll have will be a cellular software line and that will include of course the licenses it will also include the cloud it will also include the support maintenance but anything related to celebrous product and delivery will be in a single category. And then we'll have a second category of managed services, which are principally non-celebrous. So you'll be able to see the difference between those two services. There might be some celebrous and there might be some non-celebrous in that category, but the celebrous amount is reducing. And the reason for that is that increasingly we are including a services element in our overall quote to customers. no time for a statement of work to be signed and approved. We will just have a budget within the Celibra software line that we can use for small projects like that. Third party products always was non-Celibra. So this will give you much greater clarity in terms of what the Cerberus revenues are, how they're growing, and you'll also then be able to link that line into ARR because these pretty much map to each other. What you should note in future is that the revenues on Cerberus software will always lag behind the Cerberus ARR because of course, if we sign something in month 12 of the year, we'll have the ARR in our numbers for that contract, but we'll only have one month of revenue, for example. So this is like a lagging sort of indicator. But again, this clarity allows you to see what the underlying growth in the core business is. Right, let's talk about last year's results. I think I've talked about most of the numbers on this slide, actually. And of course, some of them aren't going to be that relevant going forward because we're going to be changing them. The GP percentage will change. It'll be more up in the 90s for the software revenues. The OPEX is going to change because we won't be doing a reallocation into cost of sales. The one point to draw out on here is our interest income. Obviously, we have a healthy cash balance. We proactively manage our cash very well. We put money down for interest on an overnight, seven-day, two-week, and one-month, and occasionally three-month basis, depending on our cash flow forecasts. And that allows us to effectively arbitrage between the different periods. And that has then resulted in an interest income in the year of a million dollars. That, depending on interest rates going forward, will probably reduce. But we maintain a healthy cash balance, not just for the interest income, but also for the kind of perception of vendor risk and what I mean by that. is that large companies will look at us as a relatively small company and as they're signing a three-year contract someone in procurement will talk about vendor risk and is this company going to be around in three years. Having the healthy balance sheet we've got with lots of cash and no debt gives our customers reassurance and that's evident by some of the customers we have large blue check names who've been with us for five to ten years. Moving down below the adjusted PBT, I think the main point to draw out here is the tax line. So you'll see a tax charge of just over 14%. Last year, I told you about the rate of 28%. That was higher than the corporation tax rate of 25%. It was higher because we had some non-deductibles in the US. We've done a lot of work in the last year in terms of refreshing our transfer pricing agreements. But the most important thing we've done is a lot of work into the utilization of the patent box regime. So for people who don't know, there's a regime in the UK which basically allows us to use our patents and our IP for a tax deduction. And that tax deduction is connected to the amount of revenue we derive from that IP. And the more revenue there is, the bigger deduction we get. So we have now, having done that work, We have utilised that for FY24 and FY25, and that's why we have a low tax charge this year of 14%. In future years, you should expect the tax rate, ordinarily, obviously, will be around 25% because that's a corporation tax rate. Maybe with non-deductibles, it may be a bit higher. But with a patent box regime, we're looking at a tax rate which is probably around the 20% level. That's what we're targeting. And the other points on here, I think I've talked about the EPS and the dividend. Just a final point on the dividend, we don't anticipate growing it strongly. It will grow at typically 3% to 4% per annum. We think that's a fair balance between investors we have who like the dividend, who think it's a good discipline, perhaps rely on it for some part in terms of their sort of outflows to investors. But we don't anticipate growing that any fast. nor do we anticipate paying any special dividend at any time soon. And on that point, let me just talk about balance sheets, because the most important point in the balance sheet, if I can get there, is our cash balance. As I said, 31.5 million at the year end. In terms of the rest of the balance sheet, there's not a whole lot of change. It's a pretty stable and a pretty clean balance sheet, actually. The receivables come in and go out The cash comes in. We don't have any bad debts. Customers pay us within 60 to 90 days, depending on whether it's direct or indirect. The one notable line you do see there is that this time last year we had inventories. Those have now moved out. They moved out, in fact, in April of last year. That just happened to be some inventory we had on the balance sheet. And that was part of the reason why we had high inventory. level of trade and other payables as well to pay for that inventory and that's gone down to a normalised level. That was also part of the reason why we had a deferred income as well because we had been paid for that inventory but we hadn't paid for it. And then the other noticeable item on the balance sheet is the assets held for sale. So you remember we had put our property up in the UK up for sale and that has generated around $4 million, a bit less net after costs. That's broadly booked for value. So this doesn't affect our adjusted profit before tax, but it does mean there's another 3.8 million of cash on our balance sheet. And on the cash flow, the key point here is the working capital movements. I described those just in the previous slide. So we had The deferred income because we've been paid for the inventory, but we hadn't paid for it. So there's a kind of like a double whammy, if you like. So we recognize the revenue from the deferred income. That's an outflow effectively. And then we've also actually literally paid for the inventory, which we hadn't paid for. So a double whammy there. Going forward, we should see that normalize. So with the hardware that we have for customers, we buy it and then we sell it. We're now looking at moving at some point to an agency model where we would still take the margins. on that hardware and typically it's around 15% but we would not recognise the revenue nor have the costs and because we wouldn't be buying the hardware and selling it, it would be on an agency basis, we'd get the margin still but we wouldn't have the cash flows going in and out which can be troublesome and obviously distort our cash flows as well. Other items in the cash flow, obviously the sale of the freehold property I talked about. Capitalised development costs you'll see have gone up. So typically, historically, they've been about 0.4 million. They've gone up to 0.6 million this year. We anticipate those going up further in future, perhaps to 0.8 or beyond. And the reason for that is that auditors are much stricter now on capitalised development costs. So we've resisted up to now But I think we have to accept that we're going to have to capitalise more. Obviously, that's slightly sort of flattering to our income statement, but not a whole lot. It's not very material in that respect. But that will be growing in the coming periods. On the financing activities, our dividend, typically 1.6 million a year. Last year, we did a buyback that cost us $400,000. We've just announced earlier today that we're doing a further buyback this year, and that's effective as of today. And then there's some other items on the financing activities. But the net result of all of that is as expected, is that the cash has gone down. And so we started the year at 38.8 million. We've come down to 31.5. And if you look at the level of the debtors and the creditors, that is now a normalized balance without the strange movements related to buying or selling the hardware. And the group remains debt free. We don't anticipate taking on any debt in the near future. Okay, annual recurring revenue. So again, this is on a new basis. So you can see more clearly now how much of the ARR is celebrous and how much is not. And when you look at this slide, pretty much these movements are celebrous movements. The non-celebrous part, we split it out because we're not focusing on it. We're not intending to grow it, although it might grow as a result of inflation or other small upsells. But our focus is solely on the celebrous ARR. So the movements here, as I said, largely celebrous ARR. You'll see that opening balance of 16.5. We had some good new wins during the period that added 1.7. We had some good upsells that added a million dollars. And then we've had a few small downsides as well. So some customers, end customers we've lost, they were through partners, principally in Asia-Pac, South America, where we haven't got as close sort of contact with the partners or rather with the end customers. But these are relatively small amounts. We did have one loss during the year of our own customer base. This was a company which was restructuring and basically the team that was working with us basically downsized and that resulted in our loss. And as we've done in previous years, although this is probably the last part of it, There have been customers where we've tried to renegotiate and increase the price and move to a cloud model. And we haven't been able to. And we feel we're not making enough profit on that customer. So again, we'd rather be putting our resources where they're going to get the best returns. And these customers are often the smaller customers. are the most kind of time consuming in terms of support as well, because they don't have that sort of internal support themselves. So some small losses, but that takes us at the end of the year to 18.8 million in terms of ARR. 5.2 of that is non-celebrous and 13.6 is celebrous. And you may have seen this morning the second announcement where we talked about two new wins in the first quarter. Those were a contract value of 4 million. That's 4 million over three years. But the immediate impact on ARR is 1.1 million. And that takes us up to about 20 million. And the significance of the difference, i.e. 1.1 times 3 is 3.3, not 4. is that increasingly we're building in a growth element into our contracts. So in the first year, there might be a lower ARR, but there will already be a contractual agreement that the ARR will go up to a certain amount in year two and a higher amount in year three. So that's ARR we already have kind of banked, if you like, in the contract. We don't disclose it. Obviously, we disclose it at the point where it kicks in.

Awesome. Thank you, Ash, for that. And I see a bunch of questions coming through. We will get to these, so stay with us here. Hopefully, what you've gathered from that, though, is how much work has gone in from Ash and team and the board in making the company as transparent and easy to understand as possible. Our primary focus is to grow the cellular software business. We've now provided Hopefully what you've seen from here and what you'll see in the interims for this current financial year that we're now in is a much cleaner breakdown of that to be able to understand where the growth is coming from, what's really driving shareholder value and where we're focusing our efforts. From an operational standpoint, I'll cover off some of the things that we did in this past year and give a little bit of story around that. And then I'll also talk a little bit about the contract win announcement as well on the following slides. So we had a couple of key wins that we did announce throughout the period. One was a global airline adding to our list of airlines that we work with now. around the globe. This was a top two global airline where ultimately we were able to deliver data to them in a structured way that they'd been unable to do with any of our competitors for many years. That airline is now exploring several upsell opportunities with us. And we've been doing with many customers what we've been doing now that we've invested more heavily in our customer success team globally is we've been doing a lot more sort of guided art of the possible type discussions with every single customer. Doesn't matter if you signed a deal with us yesterday, signed a deal with us a year ago. What we're trying to do on a regular cadence, given that we're putting out two updates to our software platform every year, is having an art of the possible where we're sort of helping clients understand what they're using now, what they've paid for in terms of license and features, what they're utilizing, what they're doing or not doing that other customers are doing, and then ultimately helping to educate them on what's new in the platform as well. And then we wrap that up with kind of a final sort of feedback session that we can then incorporate into our own roadmap as well. Both this airline and the FinTech business have contributed not only in those, what I just outlined, but also to the roadmap and some things that we've been working on for both businesses that has turned into commercial opportunities for us that sit in the pipeline today that we're working to close. Our customer success team, we brought on a VP of global customer strategy to oversee not only the customer success team, but to really bridge the gap between what sales is doing and landing a client and what delivery is doing in terms of delivering what that client needs for that initial project. And making sure that we have, we use the term North Star a lot internally to make sure that we have a North Star for every single one of our clients. It helps align the whole team. So that every team knows when they're in a conversation with X client, what it is we're trying to achieve, what it is we're pushing for, what it is that clients looking to achieve this year in line with their strategies. And that's what's led to several of the upsells that are listed here across the financial services and airline, as well as another APAC financial institution as well. As a business, we. We talk about the business very simplistically now. And from a marketing perspective, if you've sort of navigated around our site and at any point in time, even the investor content in the last, let's say three months, you've probably noticed a major facelift and a much more close alignment of the investors pages with our traditional, I'll call them marketing facing pages of the site and all of the content that we're creating on a daily basis. The reason I bring that up is because that contributes to one of our three main pipelines in terms of how we look at the business. The first is obviously our marketing. We revamped and brought on a new head of marketing about a year ago. to help up level how we were marketing the business and really bring a good level of background and maturity to how we do things. That's allowed us to launch several campaigns, both of the advertising and email variety, as well as rebuild our social presence. If you're not following us on LinkedIn, um as a company then then candidly you're missing out uh of a lot of great content um a lot of updates every single week we've gotten very consistent with that and what that's turning into is people reaching out to us wanting to learn more about our software and that's one of our key pipelines is utilizing everything that we're doing from a marketing standpoint to find new leads that can be handed over to sales and ideally turned into new customers Obviously, from a sales perspective, we've stood up our direct sales team. We continue to fine tune that. We continue to make adjustments and learnings along the way. We've stood this up from scratch over the last few years, and that's another core pipeline for the business. And then the third pipeline is partner sourced and influenced leads. And this is both from our technology partners as well as our consulting partners. I'll talk a little bit about that as well as we get into some of the stories here. As Ash mentioned, the revenue transition and switching to monthly recognition of the software licenses was something that we chose as a board to do this year with those renewals coming in. And candidly, it's something we would have been forced to do in the next year or two anyways, because we have fully transitioned to Selliverse Cloud as our primary deployment model for the platform. no longer offer on-premise. We don't even want to offer the customers choosing to host our software. Candidly, it's better for us and for our customers if we're utilizing the IP and the automation that we've built in partnership with AWS to deploy our software quickly. One of the wins that was in the contract run announcement that I'll come on to in a moment is a good example of this, and I'll talk through some of the deployment timelines there. We do continue to invest in the sellers platform. We are continuing to launch two updates a year. In many cases, that's two more than our competitors are doing in a given year. And that is driven by three factors and will always be driven by three factors. One will be what we're seeing in the industry. We have a lot of people and we're blessed to have a very strong team internally. of people that have been in the industry, understand the industry, and understand where the industry is going. And that is a great driver for where we innovate our platform. A good example of this would be us launching specific support for two mobile frameworks in SwiftUI and Jetpack Compose that make up a large part of mobile development these days that other marketing technologies struggle with. And we're now able to bring our auto instrumentation or what we call frictionless data capture into those modules for customers that have developed their mobile apps in those platforms. And we also, you know, one of the comments that Ash made earlier with regards to some of the transition of the business We had an opportunity for some of our on-premise customers to restructure and transition away from reselling third-party software. There's been a lot of good discussion with this with our investors that we've been face-to-face with even this morning ahead of this. But the main driver of this is quite simple. It's not our software. From a valuation perspective of the business, as we're looking to march towards a half billion in market cap as our next sort of strategic valuation, that's not going to come from the selling of hardware. It's not going to come from the selling of other people's software. There's no intellectual property in that. It's going to come from growing our software license revenue. And that's our core strategy. That's why we've broken out the finances and the revenue reporting. and the new revenue categories that Ash walked through, is to focus everyone on what matters, which is that cellular software line item, and ultimately the ARR associated with that. Go to the next slide there for me, if you don't mind. So from a key win perspective, I've talked a little bit about FY25. We had some really great upsells. We had some really great new logos. But what I'll focus on now is the new wins that we announced in tandem to the RNS this morning about our results. We had a U.S. fintech, very cool use case actually, and one that has really allowed us to innovate our analytics platform investments, specifically the digital analytics and the Metabase investments that we've mentioned in previous releases of the product. And it was geared towards helping them optimize their paid media spend in terms of the advertising ensuring that they're putting the right ads in front of people, but also that they're not paying for ads for people that don't need to be advertised to. So there's in any paid media optimization project, there's always sort of a cost benefit of doing things more wisely, if you will, as well as an optimization of getting the right messages in front of people as well. And it's been a really strong feature of the product. We brought some innovation into the product to be able to support this customer by way of being able to build audiences in our analytics platform that can be immediately sent from Celebris to things like Meta or Google or any advertising platform of your choosing. The European Bank is another strong win but highlights a very key element of our platform and that's our security and our compliance. This bank, heavily regulated, very strict when it comes to GDPR. And our competitors were unable to meet their needs from a security and compliance standpoint. And we met those needs out of the box without having to do any tweaking, without having to do any innovation. That bank having since signed on and executing the contract is now live across all their websites and mobile apps. It was a very quick deployment. It was a deployment where we were able to get out in front of it because we were able to stand up a Seller's Cloud environment for them to where all they have to worry about is putting our libraries live and then starting to utilize the data. We also have a significant amount of pipeline in a variety of different verticals. We've done a very good job of diversifying that from UK banks, obviously US financial services, healthcare in the US, travel and leisure as well. And we're even exploring at the moment the gambling and gaming spaces as well and are showing some promise there. And that diversification is great. It's allowing us to build better revenue streams from a new business perspective. It's allowing us to explore really interesting targeted offerings with some of our partners. For example, in the auto sector, we've been doing some work with one of our consulting partners around Taking what you do, it sounds very simple, but it's very complicated to actually implement on the internet. Taking what you're building, if you're on, let's say, a car configurator on a website here in the UK, and you build a car with a specific color and specific features, but then maybe a week from now, you're on a website that has an ad for that car, and it doesn't match what you looked at. Well, we're utilizing Celibris to change that so that when the data from Celibris would then better inform what ad you see. So that ad is actually the vehicle make and model that you care about that you just custom built on the website or built recently and the color that you like, et cetera. And it's all about just building relevancy. And that tends to be what a lot of our time is spent on from a marketing and personalization perspective anyways with regards to use cases. Go ahead, Ash. Mm-hmm. I already covered off most of this, but I will do a couple of reminders here. One is, as we stand up environments for customers, these are single-tenant private cloud environments dedicated to each customer. There's no shared tenancy. We don't have multiple clients in the same deployment. We're building these for customers. They're linking this to their own environment. They have full ownership and control of the data. And that deployment model is allowing the customer to get more value more quickly, which is great for all parties, right? It keeps customer happy, but more importantly, it gets them thinking more quickly about all the other things they could do with celebrants, which is where we, why we engage our customer success team on day one of contract signature, so that we can be engaged with those customers, make sure they're getting value. And then more importantly, help them understand all the other places that they could get value so that we can build that North Star for each customer and ultimately drive better revenue. On the go-to-market side of things, we talked a bit about this in the R&S as well, and you'll see some more of this in the annual report when that goes live. But I touched on our restructuring of the marketing team. I am consistently impressed with this marketing team that we've been fortunate to build under Malini's leadership. Malini's based in the States with me, and she has done a phenomenal job with her team. in taking on a heck of a lot of work in a very short period of time and doing most of it themselves. It's a small but mighty team. They completely revamped the entire website. They've built a whole new brand identity. They've launched advertising campaigns, things that we've never done as a company at the level that we're doing now. From a partner perspective, we've really done a great job of leveraging consulting partners. That bank in Europe that I was just talking about in the new wins from the win announcement earlier today, we're actually secondary on the implementation. It's actually being led from a prime perspective by one of our consulting partners. And that doesn't happen very often. So that's a model that we want to put in place and it's one that we're seeing some really great success with this particular partner in that engagement we have a few others in the pipeline with other partners that will take that same model obviously that helps us to focus on what we want to do which is just simply sell software and deliver value without having to scale a a delivery team on a like-for-like basis as we close those close those engagements We always continue to refine our direct sales team. I mentioned how we've expanded our customer success team and ultimately how we focused on building and optimizing these pipelines so that we can produce better growth focused on the ARR that matters and get things moving in the right direction for marketing from a sales and from a partner perspective. Talked a bit about product development. We've brought quite a bit in the past year. We invest each year over 2 million pounds in development costs across the team. Obviously, a small amount of that is capitalized to Asher's point in terms of what we're forced to do in line with IFRS and the audits. But we've brought a variety of compliance capabilities to the platform that has helped shine a light in areas where most marketing technologies are unable to stay functional. And as a result, has really created some interesting differentiators for us in the space. We're live now in about 35 different countries and every vertical is getting more and more security conscious. It's not just the financial services and insurance verticals. and healthcare in the States. It's every vertical in every sales cycle now is talking about compliance, is talking about data, data security, governance, etc. And they should be. And that will continue to be something on the forefront of our product. It's something that Every client is always surprised by how willing we are to have conversations with compliance teams. It's because we put that as a priority in our platform, and we know that we've invested the right level of time and detail and candidly the certifications that we get each year around the platform, the code base, et cetera, from independent audits that we pay for has really put us in a great position for that. And finally, there were some questions in here around the platform and the growth of the fraud platform and announcements around the fraud perspective. This is how we view the platform now. We talk about it as one one environment. And it's because it is. It was quite confusing to customers years ago that it was all kind of like celebrist marketing, celebrist fraud. If you go to our website now, it's all focused around solutions and use cases because that's how we sell it. And we've continued to innovate in both marketing and fraud from a use case perspective with some of the models and machine learning that we've put out around bot detection. If you go to our blog or our press releases, you'll see quite a bit there, including in the case study section. that sort of outlines quite a bit that we've brought in terms of features and functionality. And so clients, when they're investing in us or they're upsells or even new customers, we're just packaging up the features that they need to deliver the value that they're looking for. We don't even really talk about it internally anymore in terms of, is this a fraud use case or a marketing use case? We obviously keep track of feature usage and utilization so that we can do the the art of the possible discussions that I mentioned before, but we've seen quite a bit of growth, particularly in the data science and data modeling side from a fraud perspective across our customer base, as well as the bot detection models. With that, I think the final comments are around Outlook. We obviously didn't get to where we wanted to in this previous financial year in terms of new business. There's no hiding from that. We didn't hit the mark from a sales perspective. We didn't optimize the pipelines, the three pipelines that I've talked about today in the way that we wish we had. We've now put corrections in place to do that. We've started this current year strong with some good wins. There's quite a few more behind that that we're currently working through. So we're quite happy with the momentum that we've taken into this year, despite the slowdowns that we saw in Q4. We've got a strong pipeline. We've got ARR now as a result of those new wins, just shy of 20 million. We know the numbers that we have to hit. We've got the teams aligned on that and incentivized on that. And we've got a strong pipeline to help us get there. So from a board perspective, from my perspective, in the leadership team's perspective, in the business running it day to day, we feel pretty good about where we're at and where we're going with a sole focus on growing cellular software revenues in the coming year and in the three years that you've seen in the analyst write-ups that have been published today as well. So with that, I think, Ash, unless there's any clarifiers you wanted to throw out there, I think we'll...

It's just connected to what you said, Bill, and it's a question on the notice board as well, which is how do we know what the analyst forecasts are? Well, actually, if you go to our website, you will see one of the analysts' forecasts on there. So you can access that for free. So we have two analysts write about us, Canaccord and Cavendish. And one of those at least is available. And of course, these are very tightly controlled in terms of what they can publish and can't. But you will see one of the broker's analyst reports on our website if you look for it.

Thank you, Ash. So with that, please utilize, there's quite a few questions here. So we're going to kind of rapid fire through these here with the final 12 minutes or so that we have, but please continue to submit them. We've answered a few of them as we go. Probably just start at the top here, just in the essence of fairness, first in first answered, so to speak. But we've got a question around ARR. Do you expect the growth rate to change going forward with the impressive ARR growth that we've shown? I think Asher might be good if you want to maybe just talk a little bit about how to think about the forecasts and kind of how to think about the ARR growth that we're looking at, if you don't mind?

Yeah, sure. Well, let me just say historically, management have been incentivized on delivering ARR growth in the region over a three year period, that's how the LTIPs are vested or not, or to what degree. So that's the kind of range we would talk about historically. If you look at the analyst forecasts, you can see what the revenues are in three years time. You know, also, if you look at the ARR, what the breakdown is in terms of celebrants and non-celebrants, you can see the non-celebrants revenue within that. That sort of revenue, as I said, we're not going to be focusing on growing. So you could effectively take that or a little bit more than that, take it out of the three-year forecast for FY28 from the analyst forecasts. And then the balance is basically the seller's revenue, because, of course, we're going to be pushing hardware through on an agency basis. And if you were to take that number, that will give you a sense of, well, what's the seller's revenue now? What's the ARR now? And what's the seller's revenue in three years' time? And you can kind of do a broad sum of the ARR growth over that period. But it's within or slightly above the range that has been in our historic LTIP vesting.

Excellent, thank you, Ash. Got a question here. What are the compelling solutions and benefits that persuade clients to buy your products? So a good question. I think there's a laundry list of them. In the essence of time, there's sort of three areas where frustrations come out in a client when we're talking to them. One is around getting the digital data that they need to act upon whatever use cases they care about for their consumers, regardless of whether it's for marketing or for fraud. Usually we find organizations that are frustrated because the platforms that they have aren't able to deliver the data without a bunch of custom code, or they've never been able to trust the data, or candidly, the platform's unable to capture what it is that they want to capture. And that's been the case for many of the wins last year and even the two wins this year. That's been a key driver. The second area is around context and understanding the consumers. We've invested a lot of time and product development into building compliant consumer profiles for when consumers are interacting with a brand's websites and mobile apps. The ability to be able to do that and also make it available instantly is what powers a lot of our integrations with things like Pega, Salesforce, and other platforms. It's what helps clients sort of take, you know, it's the engine that powers the car in many ways for their technology stack. And it's an area that we excel in. The other is structure. When you get into digital data and you read any study, any analyst will talk about how difficult it is to bring digital data together with other data sets. That's not the case at Celibris. I've been working with the Celibris platform for over 20 years now. And before they paid me to say it, it's the only platform that I've never run into an issue trying to integrate digital data with something else. And it's an area that we're quite confident in, and it's an area that delivers for customers. And so those three buckets, if you knock out those three buckets from a digital perspective as a brand, it's going to give you not only it's going to give you a head and shoulders above all of your competition that is still technologies and the old ways of thinking. And those are the customers we look for. It's people that know that there's got to be a better way. They're frustrated and they know what good would look like if they had a technology like ours and we show them what it can do. Joe takes two's question. Yeah, which one? uh the ip one there yeah so we've got a can you elaborate on any plans to acquire complementary ip to enhance the seller's platform there were a few questions here around m a special dividends etc ash already mentioned you know that we're not considering a special dividend anytime in the near future that investment that we make will be in investing in the business um or investing in uh in an organic uh uh acquisition of some kind That's been put on pause as we've gone through this transition. It's an active conversation at the board level. It's an active conversation between myself and our CTO and also with myself and the chairman, Tom, in terms of when and what might make the most sense. So I still and we still believe that an acquisition is one of the many ways that we need to grow the business, to aggressively grow it to the level that we want to, to deliver shareholder value. We will revisit that probably around the interim time frame and and bring that bring that back to the forefront. But we do continue to actively monitor the space as well. My inbox gets flooded with things from various brokers on a daily basis to consider for various opinions. And it'll be a technology acquisition if and when we make one. And it'll be to add new features and functionality on top of the syllabus platform as as it exists today. Let's see what else we got here. We talked about the broker analysis being available on our website. We've got a question here around the percentage of revenue coming from the U.S. increasing. We're reporting in USD. Would it be appropriate to relocate the business to the U.S.? We consider ourselves a global business. We've got leadership team now in all three markets, India, here in the U.K., and in the U.S. We've got management team representation in every key market. Obviously, yes, we have grown significantly in the US. The US dollar piece, though, is, as Ash pointed out earlier, not just US customers paying in US dollars. It's a factor of a lot of our global multinational banks doing the same. And it just made more sense to switch to dollars so that we didn't have to build an FX team to manage the hedging of contracts as we close more and more business. From this standpoint, as we stand today, we always evaluate our options in terms of of listing and the aim, et cetera. But right now, we don't really see any reason to rock the boat. Our focus right now is growing organically, growing Celibris software, and doing it with the global team that we've assembled. Marketing and sales are in the US with me. We've got Ash and team here in the UK. We've got leadership in India. And that works quite well for us. We don't really think of ourselves as a UK business. We don't think of ourselves as a US business. We think of ourselves as a global business with resources around the globe to support our customers and also to help drive our initiatives forward strategically so that we win as a team.

I'll take Mohsin's question.

The ARR one? Sales cycle. Oh, sales cycle. I see that one. I was like, why would I answer the ARR one, Nash? So changes in the sales cycle, pipeline conversion rates. We mentioned Q4, there was some slowdown. Tariffs do impact things, unfortunately, as well. It impacts cloud costs. For example, it doesn't get talked a lot about in the market today, but people think of the cloud as something in the sky, but it's still servers that are getting built somewhere and purchased. So it's something that we keep an eye on. There are some verticals that have been hurt more than others, particularly in the States. Healthcare, as an example, has lost a lot of funding under the current administration running the country. But it's been in kind of pockets. It sort of speaks to the benefit of the fact that we're now expanded beyond and looking at all major verticals and have built a good story and good customers in every single one of those verticals to help us grow the business because it helps diversify us against market conditions. Yes, we had a Q4 that was unfortunate with deals pushing out, but it was a bigger issue too. We were still adjusting some things from a sales perspective. The two wins that we announced, the one, the FinTech one, was one that we met towards the end of Q4 and closed in Q1, which was a short sales cycle for us. So we are seeing deals that we can close more quickly. The average sales cycle though, probably six to nine months, still floating in that range. Some of the bigger enterprise deals in the pipeline, you know, I'm talking north of seven figures. Our average deal size is about a half million a year U.S., roughly. But, you know, some of those bigger seven-figure deals, those always take a little bit more time. You know, naturally, because you're talking about an enterprise sale, you're selling to more people, more business units, and that takes some time. Yeah, is there anything else you think we should touch on in the final moments here that we haven't covered?

I don't think so. All right.

Well, I think the only other one, percentage of Cellbra software sales via partners today. That's a good question there. And by the way, Pete, hope you had a great birthday yesterday. But from a Cellbra's perspective, all but one deal that we've done in the past two years that I can think of, keep me honest here, Ash, have been direct. That might be partner influenced in that a partner is engaged, but it's largely all been delivered direct with paperwork directly through us. And that's an area that I'm focusing on this year and working with the partner team and looking to rectify that and really prioritizing a new approach with a few of our partners and with the goal of generating more business from them and really running a bit deeper with a few partners that we see some really promising opportunities with while also continuing to support the ecosystem and build for the future. But for this year, our focus is We've prioritized three partners that we think that we could do some really great things with this year that we're starting to see the burgeonings of some pipeline with. Two of them are consulting partners, one's a tech partner. If we can get that moving in the right direction and that be the third leg of the stool, if you will, in terms of the three pipelines I mentioned before, then I think that puts us in a really good position going forward. We want to make sure that all of those are functioning, marketing, sales partners, because then in any given quarter, especially now with the revenue recognition changing, it's a mentality shift for the team to realize that actually a deal slipping one month has a much bigger impact. We're not recognizing this revenue, the licensed revenue on signature in full. We're recognizing however many months are left in the financial year. from a revenue perspective. So it's a mentality change as well that we've worked through with the team ahead of this year, because this was something we've been planning for the last five or six months at the board level. So we kind of got everybody in the right ways so that we could hit the ground running on April 1st with as much momentum as we possibly could. Then we'll wrap up there, I think. Yes, over to you, Alex.

Perfect. That's great, Bill. Ash, you have addressed that many questions this afternoon. So if I may just jump back in there. And of course, the company can review all questions submitted today and we'll publish those responses on the Vestami company platform. But Bill, if I may just ask you for a few closing comments to wrap up.

As always, it's just a thank you to everybody for your time. Thank you for investing in the business and trusting in the vision. Thank you for your questions today to help others who maybe had those same questions. Hopefully you found this useful. Hopefully this helped shed some light on the revenue changes and a lot of the accounting policy changes that we made and why. And hopefully it helped guide you to what to focus on going forward as we look to deliver strong, successful organic growth for all of you.

Fantastic, Bill, Ash. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the board can better understand your views and expectations. This will only take a few moments to complete and I'm sure will be greatly valued by the company. On behalf of the management team of Celebris Technologies PLC, we'd like to thank you for attending today's presentation and good afternoon to you all.