Physitrack PLC

Good morning, everybody, and welcome to Physiotrack's Q3 2023 results webcast. I'm Henrik Molin, and I'm joined by probably the best CFO in the world of digital health, Charlotte Goodwin. We'll be taking you through the Q3 in short to begin with. We'll look at some business updates. We'll look at the financial results and revisit the strategy and outlook. And then we'll move into Q&A. You can use the Q&A function on your screen below and ask us nice questions there at the end. And we'll probably spend around 15 minutes on this presentation and a few minutes on the Q&A. Let's go. Q3 in short. It was a very nice quarter where we generated 2.9 million euros in adjusted EBITDA. And just on the quarter, we generated 1.1 million euros. And so that's nicely up from 1 million, which was the previous quarter. 27% year-to-date 2022 organic revenue growth compared to last year. And this is 100% organic for the first time. because we didn't have an acquisition for the last year and a half. And so we keep accelerating with the businesses that we have, and the leaders that we have there, which is very, very nice, and nice year to date 2023 revenue growth compared to the last quarter last year, a couple of A couple of big focuses down there, obviously, profitability up 27%. So that 25% trough that we hit was very much the trough. We keep accelerating upwards. And there's some really, really nice developments there in terms of how the business is run and how we are optimizing our resources and accelerating with that. We are also selective on revenue opportunities. We like high margin. We like low. cash flow generative revenue opportunities. And so we have been a little bit selective there in the last quarter in terms of what we want to do. And you can see that filtered through in our margin numbers. Free cash flow burned 0.3 million and it was 0.6 last quarter. And if you compare it to a year ago, 0.9. So that's a very positive trend. It will continue. We'll be exiting Q4 with positive cash flow. We'll be focusing a little bit on innovation in this presentation. And this is something that's been very, very exciting to be part of in the last year. few quarters, actually, and we will be telling you about some of these AI-based developments later on in this presentation. Also noteworthy is that we've completely revamped Physicourses. There's a whole new webpage there, physicourses.com, if anybody wants to take a look. And the way that that offering now integrates with Physitrack is very, very nice because for the first time we can now offer our enterprise customers bundles and that there's more of a seamless interaction between users on both sides of the Physitrack, Physicourses fence. And there is a lot happening there as well on the wellness side of things that you saw the intro clip from amazing Champion Health. We are deep into the development of the new version of Champion, which will start to trickle out to users in this quarter, but will be launched widely in 2024. Exciting times indeed to be in our business and in digital health in general. Looking at the business, Just as a little reminder, we have two divisions here. There's life care, where we put tools into the hands of healthcare providers so that they can help their patients feel better, faster, and hopefully have a little bit of fun along the journey. On the right side there, the wellness division, which puts tools into the hands of employers so that they can help their employees be healthier, happier, more productive, and to have the ability to see what's going on in their businesses using data analysis tools that can help them really pinpoint what they should be focusing on as employers. So it's a great, great way to run a business with Champion Health. I can warmly recommend it to anybody watching this that is an entrepreneur. All right, big enterprise player. Now, the split between the businesses, the division is 63%, 37%. So that's the same as last quarter. In terms of life care, if you look on the right side there, nice continued growth in that ecosystem of ours. And we are... coming into some newer markets, which we'll have the opportunity to talk about in the coming quarters. But this is very much a strong offering, and this is something that is becoming the go-to solution for many, many healthcare practitioners around the world. So strong ecosystem. If you look on the left side there at the bottom, churn down to 1% on a rolling 12-month basis. And so not only do we have a nicely growing ecosystem, it's a very sticky ecosystem as well. On the top there, so continued focus here on profitability growth and driving efficiencies. And we're not at all in cost-cutting mode. We're in optimization mode, which means that we're getting more out of the resources that we have, with the tools that we have, the amazing people that we have, And that's leading to some real nice EBITDA expansion. Physicourses, as I mentioned in the introduction, nice introduction there into life care. You've seen the lines blur more and more. And what's fun about Physicourses is that it is actually a global offering. And so we're seeing interest and signups and paid usage from all over the world, actually. So it's very, very nice to see that that solution is finding a home in many places. And we'll talk a little bit more about AI later on, but all of our teams, pretty much everybody in our group of almost 140 people have looked at how AI tools can boost their day-to-day tasks and their day-to-day efficiency. And we have implemented a lot of really interesting things in terms of workflow related things across the whole team. So finance and sales and marketing and everything that we do with content production, software development, et cetera, et cetera. So people are launching new pieces of software, co-pilots, and are testing new things out. And as an effect, we're saving dozens of man hours in total across the group, and we're able to produce some really, really interesting things. Now, in terms of the product development pieces, I will show you a little bit more about that in the coming slides. First, wellness. Look on the right side there. Really, really nice. 100% pure organic growth. So we didn't accelerate with... the M&A program, which is a part of what we do, where this is pure organic growth based on the great leaders and the people that we have in the subsidiaries. So very, very nice continued development there. And More to come there. And you saw just how exciting it is to be in wellness with a great solution by Champion Health. On the second point there, some great new features coming into Champion Health. And we will also be seeing localization of Champion Health. We have identified that we are tendering some great technology for AI video to video in terms of getting that library and it's almost a thousand pieces of content at this point and it keeps growing to get that localized into multiple languages so that we can cater to multinationals but also that we can become a strong local player where we have feet on the ground in places like Germany. Very exciting things going on there. And of course, some great wins. And I'm not surprised to see more of these amazing logos in the collection of wins from the wellness division. So looking at things like Helix or like we announced just last week, E.ON, which is one of the Europe's and one of the top energy providers in the world. So much more to come on that front. Hopefully we can talk about it because a lot of these companies, they see it as a competitive advantage to use Champion Health in their day to day. But I will tell you more about that as we can. Right, just looking at some of the innovation that's been going on in the business in terms of product and content development. So top left there, very, very exciting things happening there on the content side of things. We are looking to diversify our content. We have wishlists from our clients almost on a daily and a weekly basis. And we're always trying to find ways to produce content faster and something that's very important to us as a business that has 14 nationalities on board from all over the world, diversity in the library in terms of the ethnic focus on the cultures and the models and AI is doing some amazing things for us in terms of being able to create content that can have that diversity. And this is something that we're rolling out in the next year In the next couple of quarters, and there's a project that will be with us for a while because we have 17,000 exercises in what is the world's biggest exercise library for clinical exercises in physiotherapy. On the right side there, you see some of the work from the AI lab when it comes to the content library. So just making sure that these metahumans or these very lifelike avatars have all the characteristics of a real human so that it looks as realistic as possible down to tooth work. as we see there with one of our models. We have lovely Alice there, bottom left, and that's, I'm not going to play that clip, but that's a clip of Alice speaking perfect Spanish, lip movements, everything moving in tandem with the content that she's delivering ai is providing us with some amazing opportunities just to just to reach people in the countries where they are in the languages that they speak without without compromising on quality or the the local fit so amazing things happening there bottom right i'll show you a little bit more about that we have an ai co-pilot coming to fizzy track that will revolutionize the way that our customers identify and roll out exercises to their patients. A little bit more about that on the next slide. So I thought I'd just give you a little showcase of what the AI library, the content library will look like with these very human-like avatars. And as you can see, just the quality here, and I'm hoping that this translates at your end as well with the screen sharing, but just the lifelike nature of these the way that the models and textiles and hair and everything is moving. You see this lovely diversity we have in terms of the coaches and the models. And this is really something that will feel very, very nice to roll out to all parts of the world where we have customers. So a lot more to come on that. In terms of the co-pilot, well, the way that you search and identify exercises in the PhysioTrack library and how you find contents in a lot of places in the world is by search. We have algorithmic search in the PhysioTrack platform. Right now, you search for exercises based on keywords or filters, and you select exercises like you would select exercises and sending them to your friends and family or iPhone, where you put them in a basket and then you fire them off to your patient for their rehab. It's a great way and we've revolutionized the way that we do this with our algorithmic search engine and the speed of this. But with our co-pilot, this is going to be even more streamlined. So we'll be able to, using LLM, to have the practitioner just prompt based on conditions and also specific instructions and then generating a program that can then be rolled out very quickly to the patient. And so this, as you can see, is a more modern way. It's a very, very efficient way to get content into the hands of the patient. And this will be have a big impact on how our customers see us, and of course, how we'll be able to be seen as the innovator in the space. So this is super exciting. The team has done a fantastic job on this. So we'll see this in the coming quarter on the platform, and we're testing that internally right now. All right, some exciting development from me, and I'm now going to pass over to Charlotte for the financial results.

Thank you. Thank you very much, Henrik. So starting here with a brief overview of the key financials for the three months ending September 2023. A quick reminder that we've replaced the pro forma revenue growth metric with an organic revenue growth metric. This includes where relevant the impact of acquisitions as the previous one did, but it also takes into account the impact of foreign exchange year on year. In the quarter, we delivered revenue of 3.9 million euros up 14% from 3.4 million euros in the prior year. Year-to-date, on an organic basis, adjusted for the impact of foreign exchange, revenue increased 27%, broadly in line with our medium-term targets. In the quarter, the Physiotrack Group delivered adjusted EBITDA of 1.1 million euros, up 15% from the prior year, and this results in adjusted EBITDA margins of 27%, flat versus the prior year, and up from 25% in Q2. Total EBITDA has increased 16% from the prior period to 0.8 million euros, And operating cash flow has increased 18% to 2.1 million euros. Through to the next slide, onto a closer look at revenue. On the left here, you can see group revenue by quarter. Total revenue in the quarter has grown by 17% year on year on an organic basis. And year to date, organic growth was 27%. On the right-hand side, we can see revenues split by life care and wellness. In life care, growth in the quarter versus the prior year was 12%, driven by growth in user numbers and continued upward price momentum, offset by a fall in one-off build fees for branded apps. In the wellness division, quarter-on-quarter organic revenue growth was 28% against a strong prior year comparator. So the next slide. Moving on to profit. On the left-hand side, we see the prior year figures. Last year's nine-month EBITDA was €1.2 million, with adjusting items of €1.3 million stripped out. Adjusted EBITDA was €2.6 million. In the current year, EBITDA has risen to €2.2 million, an increase of 82%. Within this, there are €0.7 million of non-recurring adjusting items relating to costs associated with the integration of acquisitions and the restructure of Champion of the Nordics, previously Physiotest. With these amounts stripped out, adjusted EBITDA has increased by 14% to €2.9 million. Adjusted EBITDA margins year-to-date have fallen year-on-year, from 29% last year to 26% in the current, due to the shift of the group towards wellness revenues, which currently operate at a lower margin, plus investments into future growth. Quarter-on-quarter, these margins have increased from 25% to 27%. Black from Q3 last year. Over the medium term, we expect these to continue to expand and rebound to our target EBITDA margins of 40 to 45%. On the left here, we have adjusted EBITDA shown by quarter for the prior year and the current year. On the right, we have EBITDA by division. In life care, which is the longest established division, EBITDA margins are at 47%, roughly in line with the prior year. In the wellness division, margins are currently at 6%, compared to 3% in the prior year, as we focus on margin expansion in this division. The grey bar represents group costs, such as board fees, listing fees, and associated advisory fees, which are flat year-on-year due to the cost of indices realised in head office, offset by inflationary increases. Through to the next slide. Now looking at cash. We opened the year with a cash position of 0.6 million euros. Adjusted EBITDA in the period generated 2.9 million euros and was offset by a working capital movement of 0.8 million euros and interest payments of 0.2 million euros. The working capital impact was driven by proportionally less of our contracts being sold on a 12-month cash upfront basis. Intangible assets and fixed asset additions were 2.5 million euros and consisted of development of the life care tech platform and investment into the wellness technology. There were deferred consideration payments in the period of 1.6 million euros and related M&A and integration costs of 0.7 million euros. We do not expect to pay any further deferred consideration in the current year. In July 2022, we entered into a 5 million sterling revolving credit facility for the three-year term. In the year, we drew down 2.9 million of this facility. This leaves the group exiting the quarter with cash of 0.4 million euros, plus remaining undrawn facility of 1.9 million euros, giving total available liquidity of 2.3 million euros. We expect this liquidity to be sufficient for the group's requirements. Go to the next slide. This slide shows the total free cash flow by quarter. Due to spend on M&A and integration costs recognised as adjusting items in the P&L and investments into both the life care and wellness divisions, we've had a net cash burn in recent quarters. As these investments are completed and operating cash improves, we've seen this cash burn decrease. Year on year, the Q3 free cash flow burn has decreased by 67%, from 0.9 million euros to 0.3 million euros. As expected, quarter on quarter, the cash burn has also decreased 50% from 0.6 million euros to 0.3 million euros. And we are on track to reach net cash generation before the end of 2023. So next slide. Onto the group's balance sheet. The first line here includes the internally developed technology platform as well as intangible assets and Goodwill rising on acquisition. The fall versus last year represents the impairment of the physio test Goodwill recognized last quarter. Cash and borrowings, we've already covered, and trade and other receivables have increased in line with the increase in revenue. Deferred revenue is primarily generated by physio tools and Champion Health, who bill upfront for 12-month or longer contracts. Deferred tax arises on the intangible asset balance, recognised on acquisition, and is in winding over the period of the amortisation of these assets. Deferred consideration relates to the Champion Health Plus, formerly Rehab Plus, well now in Champion Health acquisitions. A deferred consideration relating to physio tests has now been released following a signed agreement with former management. And that is all from me. I'll pass you back to Henrik.

Thank you, Charlotte. Right, just revisiting strategy and outlook. So again, top line there, we have a holistic offering and you see that how we have diversified the business into the two business lines, life care, wellness, but within the two divisions, we have diversification in terms of the product lines that we have there. Very, very important to do that because it makes us into a more robust and it makes it into an all weather type product, but we find a true market, a product market fit with this. providers today, patients today, employees today, they don't want five, six places to go when they want to solve problems. They want just a couple of places to go. We uniquely put a lot of things into one holistic solution per division, which is exactly what consumers need today. So it's a great product market fit there. And a middle one there is We are supported by the macro environment. It is a difficult place to be right now with high inflation and stress and everything that's going on in the world. But what we do is very much supported by that. And second point there, obviously, profitable growth is part of our DNA. Note, we are clocking in at almost 50% EBITDA margin on the livecast side of things. So we have it in our DNA to make sure that We have a business that is sustainable and as robust and as cash flow generative. It's exactly what we do. And the bottom there, I already mentioned that the balanced portfolio, the all-weather nature of the product on both sides of the business, super important for us and something that makes our value proposition absolutely unique. All right. So just reiterating our financial goals. So we are in a mode where we are not acquiring businesses. And you can see that despite that, despite having the ability to accelerate organically with new leaders coming into the business with great opportunities locally, we are clocking in at our medium term goals. And We are, as you can see, expanding margins and the financial goals, they stay in place and we feel that this is going to be a really, really nicely cash creative business in the coming quarters and with us passing into cash flow positive territory in the next quarter. So exciting times to be part of Physiotrack and exciting times to speak to you. And now we are going to open up for some Q&A and let's just see what's come in here in the Q&A section. Yeah. First one, how realistic are your long-term goals in light of today's results, in particular with regards to long-term growth, 30%? Well, the goals are medium-term. The goals were set in and around the IPO. We have consistently met or surpassed those goals on the top-line growth side of things in the environment that we are. We were even getting to that place without M&A boosting us in terms of organic growth and new markets. When it comes to the longer term outlook, I'd say as we get more mature as a business, we're probably more likely to set goals based on a yearly outlook. And just to be a little bit tight on that, we had the medium term, which is a three to four year outlook. And as the size of the business grows, the maturity of it grows, it might be time for us just to take a look at that and see how we do that, but we have no reason to believe that our medium-term goals are going to be missed in any way going forward. I hope that's a good answer. We have Jessica from Red Eye asking us, could you provide more details on the financial impact of the Helix and Eon agreements in Q4, 23 and for 2024? And are there expectations for additional enterprise contracts in the wellness division throughout the remainder of this year? Well, we can answer the second part of that question. Yes, very much so. There are additional enterprise contracts in the wellness division, as I alluded to, in my intro there, it is hard to get our enterprise customers to speak openly about what they do with some of these tools. They're seen as a competitive advantage. It's not something that a lot of them want to talk about too much. We saw the EU press release was very simple, quite redacted, because it is sensitive information for a lot of them. So we keep closing enterprise deals every month in Champion Health. And so there are more of them coming, obviously, perhaps not with the ability to talk about them at all times, but we'll do our best with that. Financial impact of Helix and E.ON agreements. We saw the impact of E.ON in Q3 a little bit in terms of setup costs. We will be seeing the impact of E.ON over the next few years because it's a multi-year engagement and it's something that's accrued over the life of the contract, which is a multi-year contract. Helix, we saw the effect on that in Q3, but it also occurred because it's a subscription situation. But the distribution capabilities of Helix and the way that we can reach their customer base across Europe and in the US, that's something that's going to provide for very interesting growth over the next few years as we have that long-term agreement with them, which is great. Second question. While you made it clear in the previous report that there are no plans to raise additional capital or debt this year, how about in 2024? No, we don't have any plans to raise in capital, issue any shares or take on a new debt. Now, we have a revolving credit facility that renews early 2025. And so obviously we'll be renewing that later. We'll see what the cash flow generation situation is and let's just see what we need net-net, no plans for anything new unless we open up the M&A program. Very important to point out that M&A is an interesting side of things. You can see that some of the amazing organic growth that we have had, especially in the wellness division, has been based on M&A. And if there is an opening for us to work with finance partners and to work on some of the great targets that we keep seeing in the space, we will be doing that. But we won't be raising anything for organic expenses. Do you anticipate that the cash flows and available liquidity will be sufficient to cover the expected earnouts? Yes, we do. What is the margin of safety concerning the covenants associated with the revolving credit facility? Well, Charlotte can obviously, I'll let her answer that. But in everything that we do, because I believe you only have one shot at building a business like this. So whenever we do things, we do it with braces and belts. And we are really, really focused on having a margin of safety with everything we do. So more specifically on covenants, I'll pass that over to Charlotte.

Yeah, we have plenty of margin of safety on all our covenants. Our leverage covenant doesn't include deferred consideration in the definition of debt. So as you can tell, we sit at about one times leverage, so very modest for a business of ours. And the other covenants involved a base level of recurring revenue and we've grown since, so we've now got loads of room in those covenants.

All right. Year-to-date financial target of 30%. Year-long organic growth has not been fully met. No, we clocked in year-to-date compared to year-to-date last year at 27%, so a smidgen from that, which we spoke about why we have been selective in terms of revenue opportunities. Is there consideration to rise the target for 2023 and 2024? Now, as I said in the intro to that, I think it would be prudent of us just to see at this size, at the maturity we are of the business, our ability to budget and forecast and the remember we lift in when we did our acquisitions we lifted in quite young businesses, and it's taken some time just to get everybody to jump on the budget bandwagon and make sure that they're predictable. It could be a time for us just to look at the budgets and targets in terms of a yearly outlook, which is what a more mature business would do. But we have no immediate plans to do that. We're 20% of a percent year-to-date compared to year-to-date last year. It is very much in line with the medium-term goals, so we don't have any immediate rush to just get into that so question here about champion health and localization regarding the statement about the champion health platform being positioned for localization and expansion at the non-english speaking territories could you provide insights into the geographical footprint of the wellness divisions We have a really strong presence in Sweden. So Christopher, Alex have done a great job with Champion Health Nordic, which, by the way, has done an amazing recovery journey following some of the hiccups that we had with the former management team. So kudos there. We expect Champion Health Nordic to revert back to the highs of 2021 in terms of recovery. annualized revenue in probably coming into the end of 2024, which is a great testament to their ability to work on their business. But great footprint in Sweden, fantastic footprint in Germany. You can see that very rapidly growing well-known Champion Health Germany business. Those are obviously the go-to markets for this. Germany represents a massive opportunity, and of course, Sweden with the tech savanness of a big part of that population. There's a lot of potential there as well, and potential partnerships that we can get into. The go-to-market strategy obviously is working with people on the ground that have penetration already with significant customers, And that's a very logical first step into those markets. But there are no limitations. The technology is absolutely fantastic. And once it's localized, we will be launching that and we won't be looking back. How concerned are you about the slightly lower revenue quarter on quarter in the life care division? Additionally, what growth expectations are there for the life care division moving forward? Well, I think we were very clear on what we wanted to do in terms of diversifying into wellness because it is a bigger total dress per market. The growth drivers are more extensive in that part of the world, life care and with our clients. almost like niche-focused on predominantly the rehabilitation market is smaller. And we are a very dominant player there. So on an absolute basis, it is hard to generate more than a few million of additional revenue in that space per year. So it's not a B2C type business and it's not something that moves super fast. It moves on enterprise and SME. But as you saw with some of these tools, that we are rolling out, the diversity of the library and our ability to go into local markets and cater to the needs there, that's building up a lot of interesting growth opportunities there. Hard to say exactly what growth will be there on a percentage basis, but as I said, it is a mature market. It is a... It's more of a narrow niche than wellness. So the two play very, very well together in terms of providing that overall growth dynamic for the whole group, which we have seen in the past. But high expectations, obviously, in terms of what we're going to do with that new library, the new tools, and new localization. I have another question here. The 17% organic growth of quarter-to-quarter is almost half of your medium-term target of 30%. Was this the result of a difficult third quarter comp, or are you seeing anything in your markets which suggests growth slowing? Well, so if you look at year-to-date and compare it to year-to-date, which smooths things over in terms of the seasonal variations, and so yes, Q3 2021, 2022 was an extremely strong quarter. So that's all competitive. But if you look at the year to date, it's 27% is roughly in line. We're not seeing anything in the markets that suggests growth slowing. We have not reason to believe that there's anything that we do that has the wrong positioning in any way. So I think it's important to zoom out and just look at the year as a whole when you see these things. Question here, further on growth goals. So we rotated the 30% growth and 45% EBITDA margin medium-term targets. And so I believe we've discussed this. Definitely when you see how, if you look at EBITDA, specifically 45% EBITDA margins, that's something that we are used to clocking in as, and you can see that we are at 47% for the life care division. We don't have any reason to believe that we are unable to expand the margins on wellness, especially as Champion Health grows bigger, because Champion Health is more of a higher margin offering than a lot of the other things that we have there over time. So we have no reasons to believe that we should be adjusting them. And in fact, a successful technology business that does things right with an optimized cost space would have a very, very healthy EBITDA margin. We don't have any reason to see ourselves as an unhealthy tech business in that respect. Question here on the Helix E.ON deals. What are they worth and if they have any effect on Q3? There was a slight effect on E.ON on Q3 in terms of setup costs, but most of the effect, as I explained, will be accrued over the life of the contract, which is three years. It's a very, very nicely created deal. It's just the start of that relationship. We're catering to the UK, as everybody in Sweden knows, E.ON as a provider. with a global footprint. And so there's a lot, a lot of room to growth there, which is going to be amazing. The Helix deal, obviously that's accrued as well over the life of the contract. There's a lot more to come there in terms of distribution, et cetera. Are there any specific costs recorded for these deals in Q3? There's nothing out of the ordinary in terms of customer acquisition costs or anything that we've done there to roll those out. Question, how far from an entry in the US with Champion Health are you? Well, interestingly enough, Helix provides a great opportunity for us to get our feet wet in the US market without taking much risk. So Helix has some really, really nice Fortune 500 type customers in the US market and we're actively investing engaging over market penetration with them, but also directly with some of our customers, predominantly in the healthcare space, because we have some really, really big organizations and hospital systems in the US that are customers. So how far it is? Well, arguably, we're already there pitching through Helix in terms of a breakthrough. Remains to be seen, but keep an eye on that. on the news tickers over the next few months and then we'll see what we can deliver. I think Charlotte has a problem with her connection or she got tired of us. Okay, any comments on how Q4 has started and what we can expect going forward? Q4 is a really, really interesting quarter. There's a lot of interesting things going on on both sides of the company. Strong start to the quarter and business as usual expectations on what we do. The And as a question, how do you think 2024 will develop for PTRK as a whole? Very, very strong expectations overall in terms of market opportunities and growth and what we have in the pipeline in terms of contracts on Champion Health alone makes us very, very positive in terms of what we're seeing. And you can see some of that innovation is really underpinning our growth prospects. So more questions on the growth and the comparators. And so just reiterating, we have our medium term goals that we're sticking to. we'll see what we do for next year in terms of having an outlook and being more precise in terms of the forecasting year on year. But it's not going to be a big difference in terms of what the growth year on year is going to be compared to the medium term target. So it's just a way to be a bit more precise on how we express that. How is the self-service solution coming along? Which... Will that lead to even more product-led growth versus enterprise sales? And I'm assuming that you're talking about Champion Health. It's been more of a lead generator for Champion Health than something that's worked on a standalone. Most of the companies that come to us are so big that you actually have to work on them periodically. on a one-on-one basis just to make sure that they roll out and they grow. And there are a lot of initiatives that need to be bespoke. So the overwhelming interest that we've had, and some of this is coming in through the PLG, actually is on the enterprise side of things. So it's going well, but not in the way that we intend it to be, like a completely standalone, like self-pay version. But as a lead generator, it's been really, really good. So here is a more sales-related question. Can you talk a little bit more about the process of signing these bigger enterprise clients? And what are they looking for in a provider like you? Are you meeting any competition in these processes? Well, so we have done enterprise sales ever since the very, very early days of PhysiTrack. And the... We are very good at working both with public tenders. We are very good with incoming opportunities, so virtual walk-ins. The virtual walk-ins are the vast majority of what we do actually both in terms of the product-led growth and the enterprise sales side of things. It's usually a multi-month process when you have the really big ones. I'd say enterprise, that's 500 users and up on the camp and health side of things. Usually, there's a bit of a song and dance that happens in the first few months across multiple companies. multiple functions and multiple people in anything from HR to top management, depending on the size of the business. And you can expect to engage with them depending a little bit on what they have. If they have immediate budgets that can deploy, you can probably close an enterprise deal in three months. But the most likely timeline that we have on that is probably closer to six months. And it can be even longer. If you look at healthcare, it's actually probably a full year where budgets are are set at the beginning of the year tender starts sort of mid first quarter and then you get RFP responses in by mid year people think about that they give you a heads up in around September and then by the end of the year you roll out so that's those timelines are a little bit longer and yes you always meet competition which is healthy because if you have competition that means you're doing the right thing if we were completely alone in what we did there would be a sign that that the market might not be ready for us. Interestingly enough, we are now coming up to the point where contracts signed in the pandemic are coming up to the sort of the two, three year mark. So there were a lot of renewals coming in and a lot of retenders that people have signed up for a provider and most probably a competitor of Champion Health in the pandemic, if they're seeing the shortcomings of that product and they're opening up the door for new entrants coming in. So where people were kicking in the doors in the pandemic and opening for digital wellness solutions, well, we're very much breaking our way into those open doors now that retenders are coming. And we find ourselves very, very competitive in these situations, especially when it comes to the platform, the way that's built. Question, what sets you apart in landing these deals with large enterprise clients? Well, the holistic nature of the solutions, that's very, very important. That we're one beautiful place to go for most of the needs that a customer has. You don't have to combine four or five different things to achieve a lot of things with your team or individually. That's a really competitive advantage. It was a really competitive advantage with Physitrack for a very long period of time. one place to go with everything beautifully wrapped platform. It's probably the number one thing. I also have to say the innovation, like the customers see that we keep moving the removing removing the barrier of where things are in terms of innovation. And I think especially Harry and Ricky and the champion team supported by you know, the product people, Laura and the developers, they've done an amazing job and just being right there on the cusp of innovation in the wellness space. And that's something that customers invest in because they usually have, you know, a multi-year time horizon. They want to know that what you provide is something that is going to stand the test of time and that's going to keep being the best and the most innovative place to be. I think we saw some examples of that today. Hope that's a good answer. What kind of margins can we expect on the wellness leg? I think it would be a bit of a mixed bag inside of the wellness division with the subsidiaries. Now, as we see more and more tech coming in there, you will see that margins will come up to physio-traffic type levels there. Maybe not as high as physio-traffic, they come in at closer to 50%. But definitely anything that has a big component of digital and a big component of tech in it, that will generate a lot higher margins. Some places where we have more physical care delivery, they will have lower margins. As a whole, the average will be slightly lower. But you can expect us to come in at probably 30%, 35% across the wellness division over time as the champion health solution becomes more mature and and we get to do more things digitally with our customers in that space. All right, I think that was the end of the Q&A. Thank you so much for taking the time to hang out with us today, and stay safe, and we'll speak soon. Take care. Bye-bye.