Celebrus Technologies plc

Good afternoon and welcome to the Soliva Technologies plc investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and could be submitted at any time via the Q&A tab situated on the right-hand corner of your screen. Please just simply type in your questions and press send. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Bill Bruno, CEO. Good afternoon, sir.

Thank you, Charlie, and thank you, everybody, for taking the time today. Both Ash and myself here will spend time Walking through the final results for the period ended at the end of March of this year. We've got a bit of an agenda here squared away for you guys to cover off on some of the standard stuff that we always do. So I'll cover off on the operational highlights and some of the adjustments we've made as a business. I'm going to talk through some of the innovation and functionality in the product and the direction that we're heading with the product. and then I'll turn things over to Ash to give a financial review and review our outlook as well before we open up the floor to questions. Again, don't forget to use the Q&A panel. Thank you to those that pre-submitted some questions. We always tend to leave a lot of time here to try to get through as many of those as possible as we want to make sure that you all are comfortable and kind of understand where we are, where we're going and the investments that we're making as a business. So please don't be shy. From an operational standpoint, I think if you've read the annual report, if you've read the R&S and my statement, you've already got a flavor for this. But I think from a perspective of looking at the year in review, it's a mix of some really good things and some things that I wish were better, to be quite honest. I think the first thing, first and foremost, is we retained all of our customers. That was a fantastic job by the team. Our platform has always proven to be quite sticky, but retaining all of our customers in this market I think is a big win. Obviously within that was some unfortunate situations where we had a couple of our customers divest some elements of their business, which meant that we were collecting less data for them, which is one of the three main sort of levers, if you will, for how we price our software. The three levers being the amount of data that we collect, the features required to deliver the use cases, and the integrations, where and how we're sending the data and how often. The good news, despite that walkback, which equated to about 0.6 million in ARR, was that it would have been more than that had our customer success team not upsold both of those customers in different manners in different features, functionality, and some of our cloud services for one of the customers in particular. So, again, it's a bit of good and bad. Retained them all, had that 0.6 million walk back through the divestitures, but that 0.6 million would have been more had the team not been successful at upselling them and making sure that they were getting value from other features. From an overall business perspective, when we look at what matters, which is ultimately our syllabus ARR growth, you'll also know that from an ARR growth perspective, we've talked about this in the past. In the past, our goal is 20% year on year for that growth. We finished just north of 10% when you factor in that 0.6 million walk back that I previously mentioned. If that had not happened, we would have been around 15-ish percent, but it's still not good enough. The new logo side of the business, while growing and while we had a good strong first half last year, as we highlighted in the trading update, and I'll highlight further here, the second half was not as strong as it pertained to new logo generation, despite being strong with renewals and upsells. So ultimately that left us with some decisions to make as we went through the end of last year and some of those decisions were to frankly start making some adjustments to learn from past mistakes, learn from the data that we had collected and try to again continue to evolve our go-to-market structure to bring more consistency for new logos. So as part of that we've moved all sort of qualification and lead generation into our marketing team, headed up by our CMO, Malini. We moved all renewals and upsells over to customer success formally, headed up by Magri on our team internally, globally, and we focused our sales team purely on new logos. The reason that we outlined some of those changes is there was a bit of overlap, and this is just from the business having been structured the way it was even before Ashoni stepped in, but where some of the existing accounts, once a salesperson closed it, they would manage parts of those accounts and kind of drive that forward. We wanted to build purely a new logo sales team, incentivize purely on closing new business and move all of the incentivization for upsells and renewals into customer success to make that clean, make the targets and structure more clean and ultimately keep everybody focused on the right areas of the business that they needed to be focused on. behind that has been quite a bit of process change in terms of how we're qualifying deals, how we're engaging deals, how we're demoing the platform, and how we're selling. And if you've dug in at all to the annual report, you'll see some of this kind of coming out. It's hard to kind of put all of this into the R&S. So there's some really nice figures and sort of designs and walkthroughs of this in the annual report if you haven't reviewed that yet. But ultimately, there's sort of three I'll call them set plays in light of the World Cup. But the three set plays that we're running in new business. The first is what we're calling audience accelerator, which is ultimately all of our identity and profile capabilities that sort of relies on the strong IP that we've built in the platform over the years. The second is what we're calling insight recovery, which encompasses all of our analytics features as well as our new new AI capabilities that I'll touch on here in a moment. and the third is what we're calling sort of real-time automation. Think of this as where we become a data pipeline to really any of the other technology vendors that we integrate with or that we've talked about historically, things like Salesforce, Pega, Databricks, Teradata, Braze, et cetera, et cetera. And it's ultimately our system just landing data in those platforms for business users to get value from that. From an insight recovery perspective, The syllabus platform going all the way back to when it first entered the market under a different name in 1999 has always been a very technical platform. It's a platform that I've worked with to varying degrees going all the way back to about 2003. And it was always very tech focused. What we've done over the last four years is bring additional business interfaces to the platform to bring the platform closer to business value to make it to where the main stakeholders happen to be the same people who are owning all of the marketing media and advertising budgets in organizations because that's where ultimately the money and the funding sits. And so we launched digital analytics a few years ago. We launched some BI platforms. We launched some churn models and things like that if you've been following our stories. and what that's now culminated in is quite a large launch that we just did a couple of weeks ago which is the launch of our Celibris AI platform. What comes with that is our data model that's been the bread and butter of our platform for quite some time and helping make digital data make sense and giving it a structure and we've now optimized that for LLMs and bring all of this into the market all underneath the banner of our Celibris cloud hosted model. for our customers in a way that is open, and I'll cover some additional detail about that here shortly. From an FY26, as I mentioned, it was kind of a tale of two halves. The first half was quite strong with new logos. The second half was quite strong with upsells. What we're obviously looking to do is maintain our customer retention but also bring additional consistency to new business. At the end of the year, we talked about four deals that were intended to sign in Q4 that did not. I'm pleased to report that one of them, the first one there under FY27, the U.S. Leisure Group, has signed on. There's another one lingering behind that, and the other two we're still working through. But in addition, we added in a new logo for an EMEA lottery website. We secured one of our big three renewals. There's about 15 renewals, I think, if I remember correctly. My plan throughout the year, but there's three that add up to the lion's share of the ARR contribution. I'm pleased to report that one of those signed right in April with a decent size upsell of about 20%. And one of the other ones just signed last week. and signed on for an extension and the other large one is in procurement with some numbers already pre-agreed so all things considered looking across the renewal landscape things are looking quite good. We also throughout in the first quarter of this current fiscal year launched two additional POCs. We try to avoid POCs where possible but if it can speed up the sales process or if it's a process requirement in the brands we're not we're not really going to waste time we're just going to dig right into that so we've launched a streaming service for fraud or a POC excuse me for fraud with an EMEA insurance company and we launched a marketing POC for a U.S. based and somewhat global streaming service everybody always asks about the pipeline I mentioned that we've gotten a lot stricter in the processes and how we're how we're qualifying that pipeline but we also have some strong stable pipeline building in the background not only in the form of named deals that are moving through the various stages of our pipeline such as an online sort of share trading, FinTech platform of a healthcare company and a couple of UK retailers as well and a few others that come top of mind to me that are currently being worked. But what we've also seen as a result of the structure changes and some of the investments that we made last year that have started to show quite a bit of promise is a lot of really strong top of funnel metrics improvement as well from last year to this year. So all things considered, we're happy with the success that we're seeing thus far, but there's obviously a long way to go in us bringing confidence to the market and confidence in all of you that we can deliver, and that's what we're focused on right now as a business and what we continue to optimize around. I covered most of this already, but the ARR growth, as I mentioned, was 10.3%. Our revenue retention had that had that walk back of those two financial institutions not happen would have been north of 100%. But from a customer success perspective, we are seeing quite a bit of benefits having that function in place. The renewed focus of the sales team focus purely on new logos has has allowed them to spend all of their time out in the market prospecting and adapting and moving deals through the pipeline. and the marketing team has done a fantastic job with the brand with evaluating where our investments should be and we've got a lot of things that we're trialing this year that are new to us because we've built the functions in place to be able to support that, be able to measure the output and ensure that we're spending our money in the right places with some things around lead generation, some newer events and also some agency support for things like business development, prospecting efforts, etc., We talked a bit about the sales plays already in go-to-market structure, so I'll leave this up here just as a reminder, but those three on the right there are the sales plays that I mentioned, the set plays that we're calling at the line, and that we're actually using to have clients just self-select. So we've built some really great storyboards and ways of presenting the seller's value in each one of those sales plays, and we have a very specific way now that we're testing presenting that to brands. and we've got an AI behind that that's helping us and what's working, what isn't and identifying where we might need to adjust our messaging, where we might need to make additional enhancements and improvements, etc. But it's been really interesting in the field seeing customers sort of raise their hand and self-select into these which gives us good confidence at least early on that we've selected the right three lanes and that that will lead to ideally a shortening of the sales cycles and a much more focused sales cycle at that. And then finally, I mentioned AI and some of the platform innovation. Nothing's really changed in terms of our cadence for product updates. We still do two updates a year. Those updates have a mix of security and just core enhancements of platform and as well as feature enhancements. And this is the feature enhancement side is really where we focused our efforts heading in with this recent launch that we just announced in June. and the main part of that is the launch of our Celibus AI capabilities. We've taken a really, I think, unique approach to this. The marketing slogan that they've come up with is that we're built for the moment. And the reason we use that slogan is because there's things that as a platform we focused on going all the way back to 1999. I mentioned that we've always been very technically focused. And what that means is that our data, our ability to establish digital identities, our ability to make sense of digital and capture all of that data in a frictionless way really presents brands with a powerful opportunity to better leverage AI. If you read any articles these days when they talk about the failures of AI or stop starts or the loss in momentum, it's because the data quality is alarmingly bad. Well, that just so happens to be something that we've been focused on for a long time up until these last few years where we started to build these business interfaces. So for us, the addition of AI, while it was a monumental, fantastic effort by our product team to bring this to market, in the end it was quite easy in comparison to the other challenges that we've been solving for as it pertains to digital data. So what this ultimately is for brands, just as a final point here before I throw things over to Ash, is we've built an MCP server. Think of that as like a An appendix or a glossary for a model. It basically builds a roadmap for how to interrogate the data that Celebris collects and stores in our data model. And we've built one for marketing and one for fraud. And so brands on launch now can either use Copilot, chat GPT, or Claude as the initial launch allows to plug directly into our AI environment and have a conversation. and get data back, get reports back, get insights back, build customer lists and really drive a ton of business value without having to know Celebris, without having to understand the pack, just speaking in plain English and just having a conversation. We built this in the background with several customers providing input. We selected co-pilot, chat, TPT and Claude because it encompassed about 95% of our customer base in terms of the platforms that they were using and probably are the same platforms you all might be using as well in your own lives and all three of those support MCP server connections like the ones that we've built so this is a really exciting time for us as a platform it's a huge leap for our business sort of capabilities and it's been met Thank you for joining us today. Follow us on LinkedIn if you're not already because that's where we're putting a bunch of information out on a daily basis. And we're really excited to bring this to market. And we think this will not only help us grow our existing relationships with customers by solving for a lot of the key issues that they have, but it will also ultimately give us and has given us a really interesting story in the market from a new logo perspective, particularly around that insight recovery sales play that I mentioned on the previous slide. So again I'll remind you any questions on anything I've said please submit it in the panel there on the right and I'm going to throw things over to Ash here to walk through some of the financials and balance sheet elements. Ash?

Super, thanks Bill.

Thank you.

So before I get into the numbers let me just remind you of some of the changes we announced this time last year in terms of our accounting and reporting and the most important one of those was the change to our customer contracts and so to remind you historically what we had We've recognized the whole of the license revenue on a customer contract in the month of signing for the full first year and then subsequently for year two at the anniversary in year three and so on. That gave us a degree of lumpiness in our reporting. So you'll have seen historically we had a first half, second half bias in revenues towards the second half. And it also sort of just confused the income statement because we'd make a profit in the second half and not necessarily in the first half. So a number of reasons why we changed but that change has been put in place and of course it does have an effect of effectively dampening our revenue for this current financial year in the first instance and the reason for that is if I give you an example for some of the renewals that came up last December historically we would have recognised the whole of the year's revenue in December i.e. 12 months worth but under the new revised contracts www.gujral.com and coming up for renewal at different times. That impact will continue into this current financial year FY27 and it will also continue into FY28. So for the time being the income statement probably isn't that representative of our performance and so probably a more useful thing to look at would be the Celebris ARR. That's the overriding metric that we regard as being important and then the other metric to look at would also be the cash and the cash generation and the cash flow because for the time being the software revenues are impacted by a few million dollars per year and of course that impact then flows through to the bottom line as well the cost we incur for our customers haven't changed they're exactly the same phase month by month it's simply the revenues that are changing What also doesn't change is the cash flow so the contracts don't change in that respect although we recognise revenue on a month by month basis we still continue to bill customers on signing and then at any every anniversary and we receive the cash a couple of months after that so we always get a cash up front and that'll be always a reason for our deferred revenue increasing over a period of time as well. One other change we introduced last year with our cost of sales so Historically, when Bill and I took on our roles some years ago, this had been essentially a services business and to that end, some of the services people cost were charged from OPEX into the cost of sales line and that typically gave us a gross margin of somewhere around 55% or thereabouts. Obviously with the transition that we've put in place over the last few years this is essentially a software business now and so we feel that it was important to change the way we report our cost of sales. We do not charge people up from OPEX into cost of sales. So when you look at the cost of sales line it's effectively the cost of our AWS services for our customers and it's also some third-party cost in relation to delivery of the Celerbus platform. and that's why you see a margin now which is this year 95.3 percent for software revenues and we've restated last year's numbers also as a like for like this number you should expect to be somewhere in the high 90s somewhere 92 93 94 thereabouts and that's important to pull out because this gives you a sense of the operational gearing within the business In that as we grow as we grow revenues a large part of those revenues flow through to the bottom line and certainly to the gross margin line but we see economies of scale in our OPEX and I'll talk about that in a few moments in terms of what this means for modelling the business going forward as we increase revenues in ARR. So in terms of the financial highlights I think I've spoken about a number of these I suppose the other point to draw to your attention is the four-year dividend so that has gone up 3.7 percent I'll talk a little bit later about capital allocation and what we do with our healthy cash balances of 32 million but for the time being we continue to grow our dividend by somewhere between three to four percent per annum let's go there 11. So, let's start off with annual recurring revenue. As Bill said, we grew our celebrous ARR by 10.3%. This waterfall should be quite useful. It shows you how we went from 13.6 at the start of the year to 15 at the end of the year. And what you see here is a number of columns. The first column is the new logos. The new logos we have announced during the year and we've signed added 2 million to our ARR. We had some upsell of 0.3 million and then in the next column you see the kind of the downsell let's call it. We didn't really lose any customers but those two customers that Bill referred to led to 0.6 million of that 0.7 million downsell and there was a little bit of sort of other in effects in all of that. Obviously most of our contracts are in USD. We report in USD so there's no FX impact there but we do have contracts in GBP and in Euros primarily so they do have an impact in terms of our FX. The interesting point here is although the net growth was 10.3% if you strip out the downsell the underlying gross growth was 16.9% and that's more in line with the target that we've set ourselves as 20% per annum. So moving on to the income statement, as I said at the start, the income statement is probably not representative particularly of how we're operating because of the dampening effect on revenues of this change in revenue recognition. But I think the key points to draw out here are that the gross margin obviously is very healthy, the stock price gross margin is healthy. The other key point to draw out here, two points, firstly are OPEX. We had put in place at this time last year a cost reduction program. We felt that was the right thing to do in light of some of the changes we were going through and some of the challenges at that time. We've also utilized AI over the course of the last 12 months and also other operating efficiencies and that enabled us to get our operates down from 22.9 million the year before to 21.2 in the year just gone. That OPEX will increase in the coming year. We continue to invest in key roles. So whilst we look for further efficiencies, those efficiencies will lead to redeployment of certain people to be more customer facing primarily. So OPEX will increase during the year. Another important point here is the finance income. So yes, we have a very healthy cash balance. We pay a dividend, we've done a share buyback, and I'll talk about that in a few moments. but the cash we do have we managed to put to work quite quite hard and so during the course of the year we received around 850 000 of interest income from our cash balances an important point on the cash is that whilst we had 32 and a half million at the end of the year that is really kind of the the peak balance during the course of the year and the reason for that is a historically a lot of our contracts were signed in December or January around that time frame because they're linked in with our partners year ends and our end customers year ends what that means is that when those invoices are raised in December and January we receive the cash around February March and so December is always the peak cash month so you can and so on. So we made an adjusted profit of 0.2 million and if we look below the line there are some non-cash items so this is amortization it's share based payments we also include in here some of the restructuring we did so some of the one-off costs from some of the restructuring we did in some of our departments that leads down to a loss before tax of just under a million dollars and then we moved to the tax line and so last year we had a relatively low tax rate of around sort of 12, 13, 14 percent that was driven by a number of things firstly the fact that we are well structured geographically with our three primary countries of operation so India, the UK and the US and we have effective transfer pricing agreements in place to manage our tax in for those jurisdictions but on top of that we utilize very effectively the R&D tax credit system in the UK and also the patent box system as well so that's why our tax charge was so low last year and this year whilst we've made a loss we have a tax credit of around half a million dollars and that's as a result of those two initiatives that I mentioned in the UK. that brings us down to a loss for equity shareholders just under half a million and that equates to an adjusted diluted EPS of 1.4 cents per share and we credit this in cents of course because we were holding US dollars but you can easily kind of translate that if you wanted to compared to the dividend or the share price if you want to convert it into pence. Okay so moving on to the balance sheet nothing particularly dramatic here I think you see if you look in the second row the other tangibles and that has gone up during the course of the year that's as a result of our capitalization of R&D so we capitalise R&D during the course of the year we put in place a new processing system to capture data at a very granular level in terms of what's qualifying and what isn't this is beneficial in two ways firstly It enables us to have our R&D tax credit and our patent box applications very defensible by the time we've spent and hence the amount we can claim back through very granular hour by hour time collection of each of our employees and the tasks that they're doing. The other advantage here is that we were getting pressure from our auditors to capitalize more. We had historically been capitalizing as little as we could but basically we are now in the process of capitalizing based on this new methodology and system and that increased our capitalization from historically around 0.6 million a year to around sort of just under a million dollars a year. So this balance goes up, it will continue to go up and of course it will then have an impact on our amortization of those balances as well in due course. The item just below that, property, plant and equipment and other, that's gone down. That's comprised of two things. One is literally the fiscal assets that we have, which aren't that many because it's mainly sort of hardware, laptops and servers and those sorts of things. The other item in here is the IFRS 16 property charges. And so as we wind down the leases that we have primarily in India and in the UK, then this balance will come down. Trade and other receivables was 3.2 million. An important point within that was that our trade receivables were down to 1.1 billion. We put in place types of measures in terms of our cash control. We don't have any bad debts. We work through partners. We have blue chip end customers. Sometimes partner payments can be delayed so we've tightened those up. We are typically receiving funds somewhere around sort of 50 days or so after the invoice goes out. and moving down the balance sheet I suppose the other point at all for your attention is the deferred revenue and that's gone up from 7.1 million to 8.8 million the reason why this is important is that It's a kind of a submetric if you like in terms of our growth so because the more customers we win the more we fill up front and hence the more deferred revenue we have especially if we sign up a customer say in the last few months of a year we'll obviously fill the whole amount as I said the first 12 months and we'll recognize one two three months perhaps the remainder will go into deferred revenue so if you're looking at sort of underlying indicators of growth this is quite a useful one to look at as well On the bottom line, the net assets went down from $42.6 million to $38.9 million. Ordinarily, you think that's a bad thing, but in this case, it's very clear why that is. And there are two main reasons. That's a drop of about $3.7 million. $1.8 million of that was the dividend that we paid through the year, the interim and the final.

And $1.8 million was the funds used on the share buybacks.

So moving to the cash flow, I think I've actually talked through a lot of the items on this already. What would I draw to your attention? I think you can see that the development costs capitalized, as I said, gone up from 0.6 million to just under a million. The dividends 1.8, the share buyback 1.8. And so that leaves us at the end of the period with a closing cash balance of 32.5. You'll see that the operating cash inflows were 4.9 million. As I said, that's also another good kind of sub indicator of our performance in terms of how much cash we're generating from billing customers, existing customers, but also billing new customers as well.

And back to you, Bill.

Yeah, so I think from an Outlook perspective, we kind of touched on this already. We're very comfortable with the advancements we've made in the technology and what we're seeing in the conversations that we're having in the market. You know, the pipeline, you always want more pipeline, but comfortable with what's in there now and some of the progress that we're seeing off the back of the changes that we've made. And our focus at this point in time is just continuing to execute and build on some of the wins and upsells that we've secured in Q1 and take that further here through the fiscal year that we're now in. And, you know, from there, we hope to bring more communication to the market but again I'll urge you as this comes up quite a bit and just something I want to call attention to again is if you are on LinkedIn give Celebris a follow on LinkedIn because we are extremely active there and there's actually a lot of messaging that wouldn't find its way into an R&S that you'll find across LinkedIn content that we're building, stories that we're publishing from partners and clients etc so if you're not doing that please give that a follow if that's of interest to you because I think there's quite a bit there throughout the year that you might find interesting and then with that we're going to go ahead and throw things over to questions because we just roll through them they can take quite a few let's see I think you already touched on this one but I think it's important yeah let me say one more thing about that if I may well let me read the question I'll summarize the question it's a bit long but it In essence, given the business financial changes that we've made, and that the startup is section there, with our focus on ARR, the question is, what are two or three sort of operating metrics that shareholders should be looking at, irrespective of the fact that revenue is always going to lag behind ARR. So, Ash.

Yeah, thank you. So, I think I mentioned during my discourse, ARR clearly is a very important metric. If you're looking at others operating cash flow, the cash balance is a key one. And you might like to look at a deferred revenue as well. I think those are the key sort of metrics and submetrics. I will just reiterate again, I think Bill touched on it also, is that For the time being, the revenue is not representative of what we're actually doing because of this subdued nature. As we go forward, even when we're past the three-year transition phase, which will end at the end of FY28, you will still find the revenue lagging behind because, of course, if we find something in the last quarter of a financial year, the ARR will go up, but we won't have the whole of that year's revenue. So revenue is important, but what it also means is when you look at the future year's growth, There's already, if you like, an implicit inbuilt growth because if we've signed a deal this year and we've recognised three months of revenue, let's say, well, there's already sort of a further nine months growth into next year's numbers. So when you're looking at sort of potential and forecast, that obviously is a factor. If you're looking at percentage growth of revenue, it's accentuated a little bit by that sort of full year impact.

Thank you, Ash. We've got another, this is a fun one. So the share price has plummeted in the past four months. Do you care to give your thoughts? I mean, I can give a summary, I suppose. I mean, I think from my perspective, I'm sure there's a lot of factors out there. I think from our perspective, when we talk about it as a management team and as a board, we have to build consistency in our ability to achieve that 20% growth in ARR. I do think seeing some of the messaging in space I think that there's still whenever you transition like the one that we did with revenue recognition that Ash has so eloquently outlined today this is the first time that we've presented a full year's numbers under that and I think whenever you do that there's still confusion that will happen as we do the rounds and I suspect some of that confusion will go away as we're better and better at explaining it but I don't know Ash if there's anything else you want to add on that

yeah I think an important thing to add is that kind of what's under the surface in terms of what's happening within the company and for us our focus is to kind of just keep knucking down and delivering ARR growth that's the most important thing and we believe that over time the share price will find its level as to where it should be of course at the same time we have the challenge like all UK listed companies have of a flight of capital out of London into other markets that obviously has an impact on share price and liquidity. There's nothing we can do about that. We focus on what we can influence and that's primarily driving ARR growth.

Excellent. Should we take this question here? Sure. So the question is around the holding of Mission Trail and being at 29.5% and whether that is affecting our existing share buyback programs. I don't know. Ash, do you want to address that?

Yeah, sure. We have a buyback program in place right now. We can complete that without any adverse effect on Mission Trail Castle, which is this person said they're holding 29.5. So that will not tip them above the 30%. So we're fine for the timing with a buyback program. Of course, we have an ongoing discussion at the board meetings about sort of capital allocation. that will continue. I think the overriding factor for us as a board is that we will do what we think is right for the business and for the general shareholder base. And that will drive our decisions as to what we do. But right now, mission trails holding has not impacted on what we feel is the right thing to do.

Thank you, Ash. So who do you see as your current and emerging competitors? Emerging is an interesting one. I think in terms of current competitors, on the marketing side it continues to be Adobe and Telium and I'd say the wider CDP confusion or customer data platform confusion. Emerging competitors are going to be interesting because we continue to evolve the platform and with the launch of the the new launch of of our Selliverse AI capabilities I suspect that we'll run into some other some other competitors as a result of us building these additional business interfaces and I think the key thing for us and and we have a lot of uh we've put a lot of process around this and a lot of thought into this is just making sure that we have our differentiators understood and that we're telling a very simple story hopefully you've kind of picked up on that and just how we speak to all of you and how that's evolved over the years we try to be as as frank and and and with candor and try to make it as straightforward as possible and to the best of our abilities you know we're not always i'm sure you know we fall short in some areas and we've exceeded in others in that regard but this same type of approach and demeanor we take in the sales process as well and that you know hopefully is how we continue to stay out in front of our competitors and help brands understand the value we would bring versus them depending on the use cases that we're discussing with that with those particular customers. Let's see the next question, can you give some color on the sales team given the level of the product it feels like it should be flying off the shelves? I would agree you know I think Yeah, I think there's an element, though, that is quite interesting here, right? And this isn't by any means as an excuse, but we didn't have a direct sales team four years ago, right? And so in many ways, we've been building this from scratch, trying different personas, hiring different people with different backgrounds and the sales cycle. And all while doing that, we've been evolving and changing how we think about ourselves and talk about ourselves as a platform. It's been a bit of a moving target. I think the maturity that we've achieved though, particularly in the last couple of years as we get at bats in the field and the sales team gets those at bats, it's allowed us to make some changes. It's made changes to how we actually qualify deals, changes to how we present the platform. The sales plays that I mentioned previously are things that we've built based upon our own data analysis of every call, every meeting, and every deal that we've worked in the pipeline over the last few years. We're practicing what we preach. We're measuring everything and we're using that to change the talent that we're recruiting. We brought on a new head of sales for EMEA. We're recruiting another role in the U.S. to help us with the influx of leads and initial discovery conversations that are coming in as part of the early stage investment efforts of marketing that we're starting to see pay off. Again, we're going to constantly change. I'm a firm believer that You need to give things time to work, but if you see that something's not working, and this is the attitude we take everywhere across the business, then you need to make changes. You can't keep doing the same thing and expecting a different result. Let's see. New logo, where is that one? Oh, did I miss one? Oh, right here. Sorry, Ben. You mentioned the global win since the start of the new fiscal year, the relative scale of those wins. Yes, absolutely. So, the scale of those, it was about 0.3 million increase in ARR in Q1 for the deals that I talked about on my slide. And apologies, I meant to mention that as I went through it and failed to do so. So, Graham, thank you for that question. Let's see. How do you market the company to prospective shareholders in existing when the management do not purchase shares themselves? Well, I think from a perspective, both Ash and I are holders. Ash and I have both purchased shares from our own personal funds, but we also have outfits and bonus plans, as do the existing management team that do deliver shares on that. In order for those to pay out, though, we have to get our results and do our job in order to receive the benefit of that. I think from a shareholder perspective, us holding shares, I understand the importance of that. I also think it's really important that we come across as a management team committed to fixing it and I think or at least I hope that when we're meeting with shareholders both existing and prospective that they get that feel and that vibe from us that we're we believe in what we're doing here this is a vision that we've been building from the ground up since Ash and I stepped in a little over four years ago and built the management team that we have and you know we're just going to continue to do everything we possibly can to deliver that that growth for the market and bring shareholder value to everyone.

Ash anything you want to add on that?

I have personnel been changed in sales in the last six months yes I'm not going to go into detail on in every detail of that but I will tell you that we have fundamentally changed everything very throughout not just that reorganization but naturally People, Process, and Technology has all been looked at as we've gone through all of those changes in the last six months. And a lot of that started in Q4 when we were seeing some of these deals start to delay and realizing that we needed to do things differently. All right. Here we go. Ash, looks like it's your turn. So why is as much as $15 million of the cash needed for working capital? That's part one. and why not have a bank credit line in our factory to cover some or all of this?

Good question, Martin B. So why do we need as much as 15 million cash? So this relates to the statement that we put in our R&S about that being our working capital requirements. The reason is primarily because our cash balance fluctuates greatly during the course of the year. As I said earlier, the peak cash is in March and then around August we probably get the peak dip. or whatever that is so that's kind of the range and that range is somewhere around sort of seven to eight million dollars and that would leave us with seven million cash as a trough so we need to bear in mind that there might be other fluctuations to cash there might be things we're buying on behalf of customers you know as a pass-through perhaps occasionally Another aspect of course is that we will invest opportunistically. If we see opportunities in the market we will ramp up our marketing and if we see an ROI that the cash will be required because the payback will be a matter of many months. So we feel that's important in terms of our flexibility to be able to operate and exploit opportunities that arise during the course of the business. One, I have a bank credit line. That's a great question. I have looked into it. We looked into it firstly around sort of two years ago when we were going down the M&A path and looking at acquisition opportunities and linking a credit line along with that to minimize dilution and to leverage gearing against our ARR. So that's something I continue to look at. One thing I'm wary of, of course, is that right now we have full flexibility to what we want to do. We do not want to be hindered by difficult covenants from a bank, nor do we want to be paying lots of fees for non utilization of a revolving credit facility or something like that. It's been considered and probably considered further in line with our capital allocation discussions if we were to have a lower cash balance. So it's on the radar. It's something we're thinking about, but it's not something we feel we need to do right now. And that's refactoring. We have a great customer base. They pay us on time, and they pay us the full amount. We don't have any bad debts. We don't need to chase the whole lot. So I don't see there being any great value from factoring. Just pulling forward our typical day-to-day is around sort of 50 days or so. It wouldn't really help us a great deal with our cash balances.

Thank you, Ash. All right. So what is the basis for billing? Is it based on user numbers? So our software, so the hosting of our software, so the Sellebris Cloud elements, We base those on what we call t-shirt sizes. So we have kind of extra small all the way through double extra large and that's based on the amount of data that we're collecting for our clients and what range they fall into. The other two levers of our costs come down to the features required in the license to support the use cases and the number of integrations ultimately that we're going to be making as part of that deployment. and those are the three levers to our pricing and we've got sort of a whole price book, automated price book behind that that we've built to simplify that and incentivize customers to be case studies and things like that as well to help us sort of make more noise around what our customers are doing. Let's see, have conversations been had with Mission Trail Capital about their intentions and shareholders? I'd say we have a great, I don't like to speak on anyone else's behalf but I'll tell you that we have a great relationship with them. They did a lot of due diligence before becoming a shareholder and their intention as far as I'm concerned, the board's concerned, is they want us to be successful. They've been supportive of the vision. They understand the journey and the transformation we've been on taking the business from an IT services firm to a software company and they're supportive of that. are part of that though to maintain that is obviously to deliver and that's what we're focused on is executing that and executing that growth. Are you planning to sign up additional partners to help with the sales push? We're not really in the business of of signing on a bunch of partners if I'm being honest. There's a lot of busy work that comes with that and there's a lot of time that can be lost in a year trying to come up with a story. A lot of our partnerships, particularly in the last few years, have been driven by client need or the fact that we have a mutual customer. I'll use Salesforce as an example. We have several mutual customers with them. It allowed us to sell some value to customers and then you use those stories to look at opportunities to win together there elsewhere. And that's the bellwether for us. My opinion of partners is it has to be a two-way street. We have to provide value to partners and both companies have to mutually benefit from what we're doing, whether that's a technology partner or one of our consulting partners. One of the new logos from Q1, the lottery, Amiya Lottery Firm that was sold through one of our consulting partners in Amiya who's built a lovely service offering for years around our platform and just uses our platform to create the data. Those are the types of stories that we're interested in and that keeps us focused on the task at hand which is what our clients care about because if it's something that our customers care about well then ultimately there's revenue to follow. Okay let's see we've got another set of questions around Would it be fair to say that your new platform would help make agentic AI uses more successful from better data quality and that increasing adoption might generate an increase in the use of celibate data? Martin, great question. Yes. So there's already a lot of several of our clients have already built kind of some agentic workflows, if you will, off of our data, some of them doing predictive modeling with our data for years. I think what's interesting now with the launch of our AI capability and an enhanced data model that's that's been refactored to work better with LLMs, you know, like a chat GPT or a cloud is that it really opens the door for a lot of interesting development. You kind of hit the nail on the head here. I guess what I'll say is stay tuned because in December you'll most likely hear quite a bit about some agentic capabilities in our platform built on top of some of the things that we've launched last month. So you're spot on. It's a natural sort of leading edge for us to be in. and it's not a big jump to make now that we've put all the foundational elements to operationalize AI in a very open manner for our customers. We're bringing compliance and governance, we're bringing all of our data and identity capabilities but then we're allowing the customer to pick which LLM they want to use and that open nature of our product has served us well and I think it'll serve us well here into the future as well.

Do you want to cover that again?

The revenue here? I think we covered that. We covered what we're going to do with our cash. Direct via partners for cellular software sales. In terms of deals, I think without having the full list in front of me, I'd say that The percentage of our software sales that are direct versus partners is very heavily skewed indirect. Sorry, skewed direct. I don't want to make it sound like I said indirect referring to partners. So the majority are direct. We do have some partner pipeline that we're working and given some of the new approaches and adjustments that we've made over the last six months there on the partner side, we've seen that improve and sort of building better, more mutually beneficial approaches to these partnerships. we've also helped our partners win in some of our existing accounts to kind of create that two-way street and I think off the back of that we're starting to see some pipeline coming in from partners some introductions coming in from partners but the majority of what we've done you know the the 17 percent you know gross increase in ARR last year was was predominantly all all direct and that you know again it I have to temper it though, because in my mind, we failed. We came short of the 20% goal. So when you look at it from that perspective, we failed. We didn't build the consistency, just being very honest. but on the flip side we did have a pretty good number and we've had a decent number over the last couple of years to show a good trajectory in terms of what we can do from a new logo generation perspective after having built it from scratch. We just need to build that consistency and that's what we hope the changes that we put in place will now do and give us much better oversight over that to ensure that we're successful and you know if we can layer in partner deals on top of that then then that really helps us build a solid foundation for growth going forward because we'll have all of the various levers we'll have for generating revenue functioning well and adding to the pipeline. I think yeah I'm just scrolling through it looks like looks like we've uh we've addressed everything the remaining questions up here we've covered by answering other people's questions so I think uh Think from that perspective then, I'll throw things back to each other. I know you have a few words you wanted to throw on at the end here, I believe.

Perfect. Thank you guys for asking those questions from investors today. Before we ask investors to share their feedback, which I know is particularly important to the company, Bill, if I may just ask you for some closing comments.

Sure, absolutely. Just want to thank everybody for your time and also your interaction. We set these things up for all of you. We want to try to be as straightforward and transparent as we can, so I appreciate all the questions. hopefully the answers have made sense and if not you can obviously get in touch with us through Cavendish to clarify anything that you might have any further questions on so thank you so much have a good rest of your day and let's hope England pulls out a win tomorrow perfect guys thank you both once again for your presentation this afternoon can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback which will help the company better understand your views and expectations

On behalf of the management team of Celebris Technologies plc we would like to thank you for attending today's presentation and good afternoon to you all.