Physitrack PLC

Good morning, everybody. Welcome to Physitrack's third quarter results podcast. My name is Henrik Molin, and I'm the CEO and co-founder. I'll be your host today. And co-hosting with me is Charlotte Goodwin, our CFO. Let's kick it off. So we have a little introduction in the slide deck, which is available for download at physitrackgroup.com. Just in the interest of time, we're not going to walk through these slides. But if you want to deeper dive into the background of the business and where we came from, then I can recommend that you listen to the Q2 webcast, which is also found and it's entirely at physitrackgroup.com. And then you get a little bit more detail here. It is an updated timeline here, so that's new for this deck. But otherwise, listen to the Q2 one. Let's dig into this quarter and get some highlights. So it was a nice and strong quarter for us. So we made money in the SAS business and the virtual care business. And we had strong growth, both on a quarter on quarter and year on year basis with a nine months total revenue growth of 147%. And now I can actually hear our podcast hosts. So if they could mute their lines, that'd be great as well. We had a performer revenue growth for the same period of 31%. And so, the annual run rate is 7.5 million. So this is above what we communicated in terms of targets. So we were quite happy about that. A lot of acceleration in the business, a lot of nice activity on the sales side. And we, in particular, saw very nice growth in our custom app range, which we'll talk about a little bit later on. But it's a nice indicator that digital health investments continue to be very, very strong even in the post-lockdown era of the COVID-19 pandemic. On the M&A side of things, we will discuss a few more of those points, but in terms of historic M&A integrations of our companies, Physiotools and RehabPlus, following the acquisitions that we did at the end of November of 2020 and at the end of February of this year, they're continuing to progress very well with nice positive upside. synergies both on the revenue side and on the cost side. We did announce an acquisition outside of the reporting period. So at the end of September, we announced the acquisition of Physiotest, a Swedish company in the occupational health space. And we're very excited about that because it enables us to expand our virtual care offering further. So we'll have a few more soundbites on that later on. But those were the highlights. And let's dig into some more of the details here on the business side of things. So continued growth on the SAS side of things in the business in line with our objectives and communicate the targets. What we saw on the product side on the top left there. So we saw an addition of several interesting features that is increasing our competitiveness and are deepening the moats for our competitors and also accelerating growth obviously with our user base. And an example of that is multiple programs. Another example is an Android version of our healthcare provider system, which is a big thing that we see will have an impact on our emerging markets sales activities, so quite positive there. Notably, on the content side of things, which is at the heart of the SaaS business, we had a significant increase in the number of clinical home exercises in the library. As you can see there, we pretty much tripled that. so far since we acquired Physiotools. And that's very, very positive. And that makes it our library, the biggest clinical home exercise library for physiotherapy on the market. If you look at the middle box there, we had a 26% year-on-year growth in the user base from the Physiotrack side. And in terms of the license base, so Physiotools, they sell licenses for entities rather than individual user licenses. They had a 36% year-on-year growth there. which was nice and strong, a couple of shout-outs in terms of significant deals, Uniting Care in Australia, and Bupa, which is one of the biggest insurers in the world, became enterprise customers with us. So quite happy with the development there. Just a couple of soundbites. Custom Apps is one of our most important upsells for our ecosystem. It's a range of white-labeled Solutions that historically enterprises were quite keen on and that continues to be the case. But what we've seen now a trend is that medium-sized companies are also jumping on the personalization, the individualization bandwagon. And I think as consumers have gotten more used to digital products, this is also reflected in their pressure on healthcare providers to actually digitize more and to deepen their digital relationships. And so this is quite positive for that customer branch. And we're actually seeing record sales activity for that in this quarter. And it's something that we see is here to stay. So it's a nice indicator that the healthcare world continues to digitize. In terms of M&A activities, so this was announced after the reporting period, but it's nevertheless worth speaking about for a moment because it's the first time that we communicate widely with the market. So we acquired Physiotest, which is a Swedish company that covers the Scandinavian markets with occupational health products. And we were very, very happy to have them on board in terms of the financials around that acquisition. We find that this was a fair multiple in terms of price. The components of this is an upfront piece of consideration, and there's an earn-out consideration that gives the founders of Physiotest the ability to get more share consideration as they reach performance goals over time. So it's a perfect alignment of interest between us as the acquirer and Physiotest as the as the acquiree, and we are very, very happy to have them aboard, as I said. We have some forecasted performance numbers there, and we are of the firm belief that this is a very creative acquisition, both in terms of the standalone performance that we see from Physiotest. This is a hot space. Prevention, wellness, assessments, testing for the corporate health market is very much a fast-growing market. And not just in Scandinavia, but in large parts of the world. So we're very, very excited about the standalone opportunity that PhysioTest represents, but also what it can do in terms of enhancing the virtual care side of PhysiTrack. And we see that over time, they will, physical tests will support the transformation that we see happening of revenue in the care space to a more subscription-based model. Because at the end of the day, and this has been widely communicated previously, we are firm believers that it is very much possible. And in fact, likely that a lot of healthcare services will be consumed with subscription business models and especially in digital health. And now in terms of where Physiotest fits in strategically, so as we mentioned, assessments, prevention, wellness is what Physiotest does. They do it incredibly well, very strong growth expected there. In terms of our holistic care journey for virtual health, you can see that they fit in box number one and two. And we're very, again, very excited about the potential that this represents for us. So those were some of the soundbites and a business M&A update. I will now pass things over to Charlotte Goodwin, our CFO.

Yes, thank you very much, Henrik. I will start the finances here off with just an overview of the key financials. So year-to-date revenue for the nine months ending August 2021 was 5.3 million euros, up 147% compared to the prior year. Revenue for the quarter ended August was 2 million euros, up 104%. Now, some of this growth was due to the acquisitions of PhysioTools and RehabPlus, and on a pro forma basis with the revenue for these entities included in the prior year comparators, revenue increased 31%, in line with our medium-term organic growth target of 30%. For Q3, pro forma revenue growth was 22% against a very strong prior year comparator in the SaaS businesses. Year-to-date, the Physitrack Group has delivered a adjusted EBITDA of €1.8 million, up 44% from the prior year. And this results in year to date adjusted EBITDA margins of 34% down from 59% in the prior year. This fall is the result of the previously signalled impact of our recent acquisitions on the group's margins. Next slide. Moving through to a more detailed look at revenue. On the left here, you can see the year to date growth, both on an absolute and a pro forma basis. And on the right hand side, we can see revenue by quarter. As I explained in the Q2 results presentation, in a usual year without the impacts of COVID-19, we traditionally see sales cycles in the healthcare businesses being H2-weighted. And that's been demonstrated here by the strong Q3 versus Q2 SaaS revenue growth. Moving through to the next slide. On profit now. On the left-hand side here, we have the nine-month year-to-date EBITDA. Last year, we delivered EBITDA of 1.3 million euros. In the current year, this has fallen to €0.3 million. Within this, there were €1.5 million of non-recurring adjusting items, primarily relating to the IPO, but also to the M&A costs. With these amounts removed, adjusted EBITDA was €1.8 million, or an increase of 44% from last year. EBITDA margins have fallen from 59% last year to 34% in the current year due to the well-communicated impact of the recent acquisitions. Over the medium term, we expect these to rebound to our target EBITDA margins of 40% to 45%. On the right here, we have adjusted EBITDA shown by quarter, with all four quarters laid out in the prior year and quarters one to three shown in the current year. This shows the EBITDA expanding as revenue grows and cost synergies are implemented. We should note here that there was a drop in EBITDA in Q4 last year, as in preparation for the IPO, we built in the additional governance and compliance required to be a listed company. We are not expecting a similar drop in Q4 in the current year as these costs are now baked into our business. Next slide. Moving on to cash for the nine months, opening net debt was a debt position of 0.5 million euros. Adjusted EBITDA in the period generated 1.8 million euros, was offset by a small working capital movement of 0.1 million euros and a further 0.1 million euros of interest payments. Tangible asset additions was 0.9 million euros in the period, and predominantly consisted of development of the SaaS platform, plus some investment in the virtual care product. The largest item here is, of course, the cash generated by the IPO, shown here net of fees incurred, and a small part of this cash has been utilised to fund acquisition consideration payments and related M&A costs. This leaves the group with a strong cash position of 15.8 million euros to invest in future M&A activity. As this is a net debt wreck, it's not shown here, but we have now repaid all of the group's debt positions. Next slide. And here's a summarized position of the group's balance sheet. The first line here includes the internally developed technology platform, as well as goodwill arising on acquisitions, which is what has generated the large increase from the prior year. Cash, as we've already spoken about, has increased due to the IPO proceeds and borrowings have been repaid with these proceeds. Trade and other receivables have increased due to the recent acquisitions, as well as the relative increase of our enterprise customer base. And trade and other payables have increased from last year due to our acquisitions. Deferred revenue is primarily generated by physio tools who bill up front for 12 month contracts. And deferred consideration at the 31st of August relates to the rehab plus acquisition and further deferred consideration will be recognised after the quarter end for the acquisition of physio tests. And just a piece of housekeeping here. In order to align our financial year with our customers purchasing cycles, the board has made the decision to change our year end from November to December. The financial calendar on our website is updated with all of the key dates to reflect this change. That's all for me. Of course, feel free to ask any questions in the Q&A portion of the presentation.

But for now, I'll pass you back to Henrik.

Thank you.

Thank you, Charlotte. Okay, just very quickly, an overview of the three pillars on where we stand in terms of growth dynamics and M&A. So we continue to see the favorable macro tailwinds of the COVID-induced high activity digital health market. And so this is not something that we see going away. And the fact that you see the, for example, the custom app range accelerate so rapidly is a sign that there's continued investment and acceleration in this space. So this is great for us. In terms of expansion into more markets, as we discussed earlier, you have the new Android version. We're also focusing more on very basic digital health provision inside of the ecosystem for emerging markets specifically to aid the first generation careful steps into that space as part of the global rollout that we have for the first track product. So this is something that's continued at a high pace. And lastly, on the M&A side of things, so a great track record on the M&A program so far and more activity expected. We're quite excited about the conversations that we are having with very talented entrepreneurs running extremely interesting businesses that are fast growing and they're not planning to to throw in their hats anytime soon and retiring on a beach somewhere. So more to come on that space. Last slide from my side before we open for Q&A, just reiterating our organic growth targets remain the same with 30% in the medium term, although as we've seen, this is very much something that we are executing on and that we're planning on executing on for the foreseeable. In terms of profit margins, we reiterate that 40 to 45%. the business is where we expect to land but you will have intermittent contractions because of m a and that's very much part of the plan lastly on the dividend side of things as you know we are firm believers in that a successful company should over time deliver yield to their investors and so we're very much not strangers to to creating a dividend play out of fizzy track however in the medium term we will be using our cash to enhance are offering and also to accelerate in the M&A programme. So that's 15 minutes on the clock. Let's pass it over to any potential questions that you might have.

Thank you. If you do wish to ask a question, please press 01 on your telephone keypad. If you wish to withdraw your question, you may do so by pressing 02 to cancel. Our first question is from Joachim Gunnel of DNV Markets. Please go ahead.

Thank you, and good day, Henrik and Charlotte. So when it comes to what customers are currently looking for in terms of adjacent functionalities on your platform, can you talk a bit about how penetration has projected throughout the first nine months here when it comes to basically cross-and-up selling your subscribers or users with modules in addition to the exercise library?

Yes, thank you. Good question. So as we pointed out here, digital transformation is happening and it's happening at still a very high pace. It's also the fact that you've had very strong acceleration also creates more sophisticated consumers and also their suppliers, meaning patients and healthcare providers. And as a trend of that, we actually see that there is a need for more personalization, individualization, and a more tailored patient experience, which is driving more people to our custom app range. And so it's something that we have planned for in terms of our sales activities and the way that we've organized the sales teams and also in terms of capacity. And it's something that we see continuing. Now, just reiterating, custom apps were historically something that mostly enterprise customers were interested in, but we can see that now this is widely applicable to medium-sized players as well, And there's actually no geographical trend on that. It's something that we see equally in the US as in Europe and also in Asia Pacific where we're active. So we see a lot of movement there and we can expect more subscription revenue from the maintenance fees that these generate because the custom uprange, they combine a build fee but also a monthly recurring or yearly recurring revenue stream, which is great for the average revenue per user situation as well. But nothing temporary about that. It's something that we actually just see as a start of a bigger trend.

Understood. Thanks for that, Henrik. And talking a bit about your... How you report your user base, there seems to be a slight nuance shift here when it comes to physio tools. So you only now report the paying customers there. So if we compare that to Q2, it seems as if there is... a slight decline in the user base of physio tools. Can you talk a bit about how much is that perhaps driven of the price hikes you recently implemented or what is driving this shift?

I can start it from a commercial perspective, a strategic perspective. So obviously the acquisition of physio tools was something that was a very successful first transaction for us in that we We had a substantial expansion of the user base, the revenue base, and also as we have seen and communicated, we saw a lot of upside potential in terms of their average revenue per user. Now, in order to actually realize a rise in the average revenue per user is actually not enough just to raise prices. this is something that's carefully happening over time. And, you know, you have to tread very carefully with legacy relationships over this. And so, you know, we have a monthly effort into that that's in line with the contracts that we've signed. But a big part of that, realizing the gap in ARPU between Physio tools, which is under five euros and PhysiTrack, which is close to 10, it's actually to migrate users between the two platforms. And so we are actively pursuing the, the, the migration of users from Physiotools to Physitrack, and that's a great way for us to, over time, just narrow that ARPU gap. And so as such, you can expect that the Physiotools user base will shrink if they've done a good job out of that while you see revenue increasing. overall for SAS and for both for PhysTrak and for PhysiTool. So there are a few moving parts to that user base number that might not be evident by just looking at the report. Charlotte, did you want to add anything to that, just from a numbers perspective?

Yeah, no, I think you've mainly covered it. Worth noting that as well as being a higher ARPU in PhysiTrak, it's also a more efficient system to run cost-wise. So, you know, you get the EBITDA benefit from the higher ARPU, but you also have a lower relative cost base to maintain a customer on that platform. So that's also part of that migration strategy.

Very clear. And I'm in top of mind. I mean, are there, I mean, do you want to comment? I mean, what's the ambition from quality? Is it a three to five year perspective when you would have assumed that the that you would close the gap to where the PhysTrac SaaS ARPU was in also PhysiTools?

Oh, it's hard to be really exact on that because, I mean, PhysiTools is a national treasure in Finland, for example. I see it unlikely that we would discontinue PhysiTools in Finland anytime soon because, I mean, it is a very well-regarded and it's a very widely used platform. And so in the shorter term, I'd say where you will see a more clear and defined migration pattern would be in places like Australia and the UK and Canada and the US where there is a UI UX gap between PhysiTrack and PhysiTools, which is quite significant. And there's no reason for people to actually stay with PhysiTools in that respect. So I think things will go faster, but it's hard to give a timeline for that and also you know do expect that there is a tail end of keeping physio tools for markets where it makes financial sense and the last thing you want to do is to disrupt your users in a place where they actually love the platform so there's no reason to make any drastic changes there. Is that vague enough for you Joakim?

Hey it is, thanks Henrik. So But more from a business model perspective here, I mean, if we take the more long-term perspective, and you can be as vague as you want to, Henrik, here, but what are the trade-offs here that you made when it comes to the business model set up for the SaaS business here, where it's more of a fixed subscription price per user? Would it make sense longer term, once you have built awareness and a critical base of users here, to shift that into more of a usage-based business model to basically also expand the, call it, TAM opportunity within SaaS?

We actually think that content consumption generally is not a usage-friendly business model. So similar to Netflix and Amazon Prime Video and things like that on the consumer side, you expect to pay a flat fee and you can watch as many TV series and movies as you want or none at all and you still pay for the platform. It is a tricky business model to implement with things that are based on pulling things from a library and pushing out to a consumer as well on our side. So I actually don't see that as a realistic proposition for Fusitrack as a for the technology side of business. Now, on the care side of things, which has been a big driver and incentive for us to get into that business is that it is actually scalable per end user. So the fact that you deliver services, care services, you know, virtual and or hands-on to a a group of patients or a cohort of individuals, that's actually something that increases with usage. And so we'd rather see that side of things moving to growing more based on usage. And as we've communicated, we actually think that the combination of per user revenue and also on a subscription model on the care side. This is something that we are very much working towards as a group because we do think that there are consumption patterns in care that are subscription model friendly. And then you get the best of both worlds, which is per user, per end user scalability and pricing. plus you get it on a recurring business model. But in terms of the tech business, the consuming exercise programs and things like that from the library, we don't see a move from the monthly subscription model.

Understood. So finally here, when it comes to the recently announced acquisition of FBCOTest, I mean, it seems like an attractive fit here. And I mean, you talked about how it, It's complimentary for your virtual care footprint and building that business model. Also seems like quite low risks at this current, I mean, earn-out structure of the deal. So can you talk a bit about more your ambitions here? How should this really aid you in building a Nordic virtual care business? And what are the low-hanging fruits you see when it comes to quality cross-selling and basically building this more sauce revenue-like business model you alluded to?

Well, just starting from the end, the lowest hanging fruit is actually the work that Sami and Christina, the Physiotest founders, are doing already. So it's a rapid acceleration of revenue inside of the Scandinavian corporate space. So the appetite for assessment and wellness and preventative efforts for corporates as very much a very, very hot space. Historically, physio tests were customers and this is how we know them. What we see there is that we will continue to aid that acceleration with our technology and help them move a little bit faster. And also, I do think that there's a recurring nature already in the business model in that companies, they acquire these services and they come back and they do the same sort of journey year in and year out. And we actually think that there's a lot of scope to pivot some of that into a subscription model, which I think will be the predominant way that that will make money. So that's the sort of the low hanging fruit. I do see a lot of potential for Samuel and Christina to continue that work outside of Scandinavia as well in some shapes or form. And I do see that that fits in to the greater picture in terms of virtual care offering, where actually it is, Scandinavia is no exception in terms of the appetite from employers and from other entities to actually to actually work on wellness and prevention. So there's something that we can accelerate quite nicely elsewhere as well. But in terms of the bigger picture there, we are mostly active today in virtual care and in rehabilitation in the UK. And this fits in very nicely. Some of the business models and some of the components that Physiotest have, they can actually be passported over to the UK and create a more holistic product, as I showed on one of the slides there. So that's quite exciting. Globally speaking, and, you know, most probably this is a European play, and we're very interested in continuing this growth in the UK and also in Germany, and while accelerating what's done there in Scandinavia, which is, you know, you have a lot of multinationals as well in Scandinavia. So even though you have your base in Scandinavia, In Sweden, there is a lot of international potential just to take things at more of a global level, just based on relationships that you forge in Sweden itself.

Wonderful. That's all from me. Thank you, guys.

Okay. So thank you, Joachim. So we have some questions here on the chat. So we have Jonathan from Colesquare. And then we'll see here if... Charlotte, I answered it. Can you elaborate a bit on the EBITDA developments within both PhysioTools and REIA Plus and describe the short and medium term activities to boost the margins? So let me, so if Charlotte can work on a narrative for the historical development on the EBITDA and just put some numbers on that, I can just say that the short and medium term activities to boost the margins, they are twofold. So you have obviously looking at, especially on the PhysioTools side, there are a lot of synergistic effects When you run two platforms and in some geos, you actually migrate users from one platform to the others. And over time, you discontinue one of the platforms. That's a cost saving. So, for example, there's also things that we looked at in terms of the acceleration of developer products that we have that can be supported by internal firepower rather than rather than recruiting externally for that. So it's been really, really good to work with some of the very talented individuals on the software development side inside of Physiotools. And that in itself has led to increased margins, thanks to looking at the cost side of things. And of course, revenue acceleration I think just looking at it as a group, just looking at the addition of virtual first care and the opportunity that that represents, that is a major margin expansion opportunity based on revenue effects. And this is something that we will see a lot more of going forward because we only just started in that space. And thanks as well to what's going on here with the physio test acquisition. It's obviously something that will push that business line north in terms of energy generation. And what we see is that we can actually expand the margins at the same time there. So Charlotte, maybe do you have something there on the EBITDA developments within tools and RehabPlus?

Yeah sure so I guess looking at tools and rehab plus separately because they're quite different businesses on the physio tool side as you will have been able to see from the pro forma numbers in the prospectus for 2020 we had physio track and physio tools which are in theory quite similar businesses but giving us very different margins last year so with physio track being sort of well above 50% EBITDA margins and physio tools as a group so physio tools Tanila and Moblis sort of hitting margins of about 15%. And that's a combination of things. It was partly the revenue, the ARPU being lower. And that is a combination of not just having the flat license fee being low, but also things like telehealth, paid telehealth, and the custom app opportunities that we have in PhysiTrack. These upsells don't exist in physio tools. So all that they have is the sort of flat license fee, plus that flat license fee is at a lower rate. So partly that moving up the EBITDA as a revenue piece, bringing those ARPUs in line, migrating customers where those upsells would be useful to customers, particularly migrating them over to PhysiTrack so we can take advantage of that. But there was also a piece around the cost, the cost structure and the way the business was structured. And we've been able to sort of take the blueprint of PhysiTrack with more self-service from customers and move physio tools towards that model on the cost side. and you'll have seen you know on a pro forma basis last year we had uh margins around 30 percent and we're now obviously working our way up the 30 percent to our target of 40 to 45 percent and that margin expansion that you're seeing is from from those acquired businesses because on physio track side we sort of already had had an efficient structure and we're not expecting to see big margin expansion in the physio track center but that margin expansion is coming from those acquired businesses so that's a physio tools piece on the rehab plus you know i think There wasn't much to do around cost reviews. Our upside that we expect to see in rehab plus on the EBITDA margin is from the revenue side. And, you know, you'll see from the results there, we've already started to see that revenue expansion, which is nice to see, but there's plenty more to come there, as Henrik's alluded to, on our work in the virtual care space. So there we'll be focusing on revenue opportunity as opposed to cost restructuring.

Thank you, Charlotte. And we have the follow-up to that on the 20% increase in revenues for the PhysiTrack platform, how a big part of the growth comes from price increases. Now, what's important to know there in terms of revenue, you have several sources. When you see growth from our side, you have the absolute increase in the number of users, you have the pricing of those users, and then you have the upsell opportunities, meaning you have the telehealth service, you have... You have the customers, which we discussed. We have the data range. We have virtual onboarding of patients, etc. We actually don't disclose the breakdown of those in terms of the impact on the increase of revenues. But what I can say is, as with everything that we do, this is diversified in terms of the growth. So it's not a one-trick pony, and that's a nice situation to be in when you run a business. It's nice and stable. We have another question here. Actually, a question from Edwin Mangold. So let me jump into that before Jonathan Anderson asks. You say that you have good momentum in sales now. In which markets are you seeing good momentum? So it's actually a global trend, I'd say. When you look at the movement towards the custom apps, for example, that's something that we see quite rapidly. quite equally distributed between Europe, the US and Australia. So we've had contributions from all over the world. Maybe it was a little bit more US heavy in terms of how those opportunities came to us. But I'd say that there are no real Yeah, there are no real trends there in terms of certain markets that are moving exactly that everybody's moving pretty much in the same direction. And by the way, I should say this is from established markets. So we don't see the custom app trends in newer markets like emerging markets in Southeast Asia and places like that. It's too early for that. They're still in the process of doing early digitization. But over time, I think we will see the custom app trend there as well once we've gone through the motions of of learning how to use digital tools and then expanding the use of that. And then you have the personalization, individualization, and so on that we spoke about. So you will see that as well. So it's a nice little tool to have in your toolkit. Now, so regarding the custom-made app solutions for your services, can you say something about the pricing strategy here? Higher ARPU, question mark. So it's actually a revenue stream that very nicely has... two components. One is an upfront fee, just a startup fee, just for us to liaise with the customer and get the customer up range going for them. And there's a bit of development work involved in that and the liaising with the Apples and Googles as well to get these things published. And so we usually charge in the regional $10,000 just to get somebody set up with an app like that. Then once you are set up, you have a maintenance fee that's billed monthly Usually it's monthly. Sometimes people want to prepay for a whole year. But it's in the region of $1,000 or 1,000 euros, depending on where you are in the world, depending also how big the user base is that you're sitting on as you come into those relationships. But this is something that, yes, on average it contributes to a higher ARPU because on average that revenue for that customer with those users will go up. So very, very nice. It's very sticky because if you have a, custom app or you have an app in the app store and you push that out to your customers, that's your shop window. It's a virtual shop window and it takes a lot for somebody to just change that around because it's something that is very much part of their identity all the time. So it's a nice sticky revenue base. Can you elaborate a bit more about your M&A program here? Is the strategy and potential candidates the same as earlier or have any new types of companies, technical solutions emerged that you might be missing at the moment? I would say that the original M&A strategy that we started in 2020, it is very much intact. I would say there have been few changes in terms of the strategy there. There's nothing, I mean, it should be predictable because there are two parts of the business where M&A would fit in. It's on the SaaS side, looking at components that can increase the ARPU, increase stickiness and reduce churn and things like that and present upsell opportunities. So it's very much something that we're active in. And on the other hand, it's the virtual care space, because we do think plugging into that holistic solution, aiding us to pivot that into a subscription-based model over time and growing it geographically, that is very much a medium-term growth play that's extremely interesting to us. So nothing's really changed in terms of those pillars. In terms of individual candidates, of course, you are presented with more ideas and entrepreneurs more likely to speak to you and sourcing has been aided by being a public company. But there's nothing like strategy-wise that has shifted in the last few months. I actually predict that things will continue to be pretty predictable there. Last question here. Can you please elaborate on the churn in the SaaS business? What are typical reasons for customers leaving the platform? Well, the number one reason for people leaving the platform is actually consolidation. So there is a consolidation trend that you see, especially in the US, where smaller healthcare providers get acquired by bigger healthcare providers. Private equity is quite active as well. Usually what that means is that you have churn, but it comes back in the form of new subscriptions over time. because uh you know you have a way of working around the system and we are a quite dominant player in the industry and it's it's unlikely that you will see a complete shift over to something completely new just because you're acquired so that's the number one reason for people moving uh you did see some businesses uh throwing in the towel and and just uh and just uh just uh you know giving up throughout the pandemic but actually things have come back in a very big way and um So I think you probably have more businesses opening up than closing down at the moment. But those are typically the best, the most important things. And of course, we're quite generous. If somebody goes on maternity leave, for example, I mean, we do help them. Would you help mothers to save some on their subscriptions? We keep it alive for them if they leave and they come back. I think that's part of just the ethos of just understanding that we deal with humans and you have to help wherever you can. Those are probably the main reasons there. That marks the end of the questions that I received here on the chat. So if you don't have any more questions on the chat or on the phone, I would like to thank everybody for attending this Q3 earnings call. A replay is available on fustrikegroup.com and hope you all stay safe and we'll see you soon again.