Teneo AI AB (publ)

Good morning, so I am Per Oppesson. I'm going to go through today the third quarterly results from Artificial Solutions. And I just want to remind you that you can find the presentation under Artificial Solutions. You click the investors and then you go to the financial information and then it's the financial reports and there you will find the quarterly report. So the presentation is uploaded to our website. I'm going to go ahead and start. I think maybe there will be some people joining a bit late, but let's go ahead in the interest of the people that are in time here. The first slide I want to talk about is the one with the two presenters, just to make sure we know who's presenting today since we're always seeing on the phone. It is me, Perel Tosson. I'm going to go through a bit more about the experience of the management team, so I won't really delve into that now. and then Fredrik Torgren who is our CFO. So that was the slide on presenters. Next thing I want to talk about today is what is it that Artificial Solutions does? What's the market that we are addressing? And this is an explanatory graphic that we created to educate customers on the financial markets about this particular space that's called conversational AI, which also recently has received its own market sizing of the software component of that market. So that's also quite an interesting development that's happened in the last few quarters, last quarter. If you look on the left of this slide called artificial solutions market, you can see that there's a user that could be citizen that could be a customer that could be a internal users and employee or any anybody else who requests information from the system and is a human or potentially also a bot and that request could be a service request it can be an information request it could be a request to get something done an action request which is increasingly becoming something customers are doing today and then the session request or notification request. So some of the types of requests that would come into our system, which is the brainy thing in the middle here. And then our system needs to decide what is it that this person wants? What language are they using? Did they mention, for example, a date? Did they mention a name? What's their place? What are the details that are important to extract from this conversation? And what kind of request is it? Also, you want to have an emotional feeling is this a happy and upset customer you may want to have some human take care of an upset customer you may want to give them a special offer so you want to know that from the interaction you also want to know if we interacted before so you want to be connected to some kind of a CRM system or similar source of truth where you would find information about this customer from before so the conversational AI takes all this request and then somehow fulfills that request that's what we would typically called a session. And then a session consists of several API calls, which is our revenue model. So session is the metric to see the volume of inbound requests. And then API call, which is roughly five times on average, the session is the charging metric that we use because some sessions are very intensive and therefore you would pay for more API calls. To the bottom right in this, you see that the market is now $14 billion according to market to market. And remember for some of you that we've spoken about a market of $50 billion before, and that's the difference between the value created and the software market in this market. So the value we create is larger than the obviously what we get for our software since our software is one part of the component and then there's implementation and other things that need to happen in this to enable a conversational AI solution. The CAGR in this market is 22%. So it's a large market growing well, and we're gonna see also that this market is really taking off as we speak and that we have the right model in this market. So that's what we address. Next slide is called artificial solutions at a glance. And it's quite busy, but it's really split into four different parts. So I'm gonna go through it in that way so it makes more sense. and the first portion of this to the right to the left top left is that we are a company that was founded in 2001 so we came to the stock exchange in 2019 but it's quite important that we are from 2001 because this is not the type of technological innovation where you can start from scratch and build something in your basement and then all of a sudden have world dominance this is a a technical field which requires a lot of data and experience so We have 86 languages, for example, because we have long experience in this industry. Typically newer companies, which are maybe four or five years old in our industry, will maybe cover two or three different languages. So it's a large, it's a very big benefit to be an older company with a history in this market. So what we allow humans to do is communicate verbally by texting or speaking into an application can be through WhatsApp, through Facebook Messenger, or any other such interface, or it could just be a common voice call. And I will today dive into a bit the presentation that Swisscom gave at the London AI Summit a couple of weeks ago to show you how this is being deployed in the customer today. We're currently shifting and we started this shift in the beginning of the year. We're shifting from a traditional professional service model Where we charge for PS license and usage into a pure software as a service model where we no longer have professional services. This means that all the one time type revenues. We are no longer selling and therefore most mostly this is our partners today taking that revenue, but we're focused only on the recurring revenue and the growth and that recurring revenue in our customer base. So in the last 12 months, the trailing 12 months that ended in September 2021. So this quarter, the recurring revenues accounted for 35.3. And that's the measure that we are most focused on. If you look to the right, you see the graph, you can see that the total revenue, that's the 48 and a half in Q419 to 45 in Q321 is declining. And that is primarily due to the fact that we no longer sell things like professional services. There's many reasons for that, not the least of it being that it's difficult to make money on professional services, but also because if we have partners provide that component, we get many more people committed to our platform and the larger ecosystem to work with. So we are now focused on the blue, the dark blue part, which you can see is growing steadily and it's an 18% CAGR on that. So a very good growth. from Q4 2019 to Q3 2021. At the bottom left, we have a few customers and partners. I will dive in a bit more into Swisscom. I do want to mention just to do a shout out on a few of these. Scania have just renewed and expanded the agreement with us. It's interesting in that our technology also finds its way into manufacturing where There's not a whole lot of end customers. She may or may not know, Skoda primarily sells through agents. So it's not a large end user type company, but there's still many nice use cases internally. Volkswagen have continued and Skoda is still selling cars with our solution, essentially having a banner and you start to interact with the solutions in actual language. And you talk about the need and you have probing questions about the need you have for the car rather than having to choose in a traditional way first the engine and then which, if you want leather and then which color. Here you can instead talk about what you're going to use the car for. It has become quite popular with certain demographics and also we're both selling cars that way but also Skoda has managed to create a lot of what they call sales qualified leads and that's somebody that either has a quote, a finance quote, or comes into the showroom to drive the car. Circle K also expanded during this quarter and are also moving international. They were also with us in the London AI Summit to talk about their experience with us and how they love working with Teneo. To the right you have the strategic partners. The most important one here being Microsoft and we are what's called IP co-sale incentivized with Microsoft. This means that Microsoft and we collaborate on opportunities Microsoft salespeople get paid by Microsoft when we sell to their customer. And that is, of course, because we also leverage their technologies and therefore bring their technologies into customers. A1, which is a Q3 deal that we've done, was very much done that way, where Microsoft and we collaborated together. We also have Ernst & Young, where we're working with their Wavespace, as it's called. This is their innovation centers. and the prime global one being in Barcelona and have several deals that we're working together with them and CGI where we have a very committed partner building great solutions for customers that are going to come into signature customers soon. As you probably or may or may not be aware, maybe I should say, our model is that you can start working with our software without actually contracting and then you can contract as you start when you need to go live. I'd like to highlight on the bottom right here, I'd like to highlight the middle square, which says 18. In our industry, which is the industry of serving requests from the outside or inside the organization, typically the NPS, the Net Promoter Score, so the measure of how happy you are with this transaction, has steadily been going down over the last and the reason for that is of course that we've been or many many almost all customers or or organizations have been focused on reducing the cost because it's very costly to provide phone based service which is what people really want they want to be able to call get answered quickly and not have to go in and download an app or some some other click-through interface Swisscom has and they presented this in London they've had an 18-point NPS increase after deploying the solution in their IVR, meaning that the solution to Neo now picks up the phone, answers the phone when customers call in in natural language with voice, of course. We also brought in 120 million equity funding in May 21. And also, if you're following us, you see the press release that at the end of after Q3, we also secured the financing on the debt side. The last thing I'm going to highlight in this slide is the bottom right. It's the forward citations per patent per year. We've updated the patent reporting in terms of looking at who is referring to our patent. So who says that their patent or their innovation is building on our patents. And the average for software patents would be that you have a citation of 2.05. and we have 5.84. What that means is that our patents are relevant. And these are the patents that come from this history from 2001. And we've been patenting these primarily in the 2010s. And so it's 2014, 15, 16, 2014, 15, 16. And the interesting thing with that is that these are the foundational patterns in this industry that's growing in this market that's growing. cited by Apple, Google, Amazon, et cetera, as a part of Siri, Alexa, et cetera. So a very strong portfolio of technology. Next slide I want to talk about is the one with all the pictures on it. And I want to talk about this because we've also changed the entire management team since we're moving from a model which is a licensed PS maintenance model, a traditional software sales model, and we're moving into SAS. We've also replaced the management team with a management team with that background. From the left, I've done that several times in different companies, built SAS companies, and actually as long as 25 years I see here, so I must be quite old. The next one is Fredrik, our CFO, also with experience from this and also from M&A, and of course been instrumental in getting our balance sheet to where we are today, We no longer have the financing risk that the company has seen in the last few quarters. Andreas Viveg is, however, with us almost from the beginning. He joined the company in 2007. And so he's got great experience in these AI solutions. And is the father, at least from an orchestration perspective, since he's been the manager all the time behind all this patented technology. And in our industry, this conversational AI industry, one of the absolute experts. So very happy that Andreas is running our development team and is our CTO. Next one is Daniel Eriksson, also new. He has a, what we call in Swedish, double exit. So he's both from the financial business side and also from technology. And that's very relevant for what he does. He's the chief innovation officer and he's working quite hard on our product offering, but also on our customer success and making sure that customers that do start with us, that there's a stickiness in that they deploy and use things that make them stay and grow with us. And as you'll see, customers are growing their usage together with us. Marie comes from a similar position at Amelia, which is an IP soft company, which is the largest company in this industry. and has been doing PR impact marketing for the last 20 years. And we're very happy that she's now come in and at the tail end of Q2 and started building out on marketing programs, which is coming now. Fredrik Blomberg experience in sales operations. This is quite important to us now as we're building out on the sales side. Paloma also has worked quite hard in human resources in fast companies. So more than 15 years of experience, and has joined us as the Chief People Officer to be able to drive our HR agenda, both culture and recruiting and retaining staff. Nikolas Køllerstedt is the latest addition. He actually started at the beginning of this quarter. So it's not really a Q3, but for this report's sake, he comes from Snowflake. where he built up the Nordic and Baltic companies from scratch into where that stands today, which is quite a large operation. So obviously quite experienced in SAS and also been around for quite a while in our industry. The next slide I want to talk about is the one that has conversational IVR, our journey at the top. This slide is copied from Roger Dill, who works at Swisscom. It's copied from the deck that he presented at the London AI Summit. And the interesting thing with this, I'm going to try to highlight first a journey that a customer does, but then also the end result and how that impacts the customer. So they started out with a few pilots and POCs and started by deciding to replace the DTMF. DTMF meaning the tone controlled, typical tone controlled IVR. So you dial in and you say, press one for billing, press two for buying a new phone. So they wanted to replace this because this was cumbersome, error prone, and also not a good customer experience. And you all know sitting in the car nowadays or anywhere, it's quite difficult to hit those numbers right. So presently and this this took from going from deciding to start the project to actually go live with the first part which is called present here that took 14 months and we believe on average it will take the customers that we've signed up 12 months to ramp up to start using the product in a meaningful sense and thereby also generating meaningful API call revenue to our company which We will come to it later as well. So roughly 12 months on average. Swisscom took a bit longer. We didn't have the SaaS offering at the time. I also want to mention that Swisscom is on the old revenue model. So their API calls are not billed the way that we bill API calls for our new customers. What they then started doing is voice enabled routing. So this enables the hands-free routing and also enables to ask disambiguation questions. So if you say, I want to talk about my bill, then you may have the question do you want to talk about your subscription or have you not brought your bill or some other clarifying questions to ensure that you get to the right person so still at this point we're mostly talking about getting to the right person what that meant is that they improved by having less transfers so a person picking up and having to send you to a next person that was reduced by 21 percent that actually means from a volume perspective that's roughly 13% of the total call center volume. So give you a perspective here, thousands of people, 13%, that of course is a great ROI from the cost perspective. Swisscom is not running this from a cost perspective. They are running this project from a customer experience perspective. And you see there the transaction NPS increase by 18 points for this current term. current implementation and it's served 1.8 million calls. So that's where they are right now. And actually, as we speak now, they've started with some of the automations. For example, if you call in and you want to buy an iPhone 13 and you want to get the new iPhone 13, it will, since you're dialing in with your Swisscom number, it will know who you are and you, you then get the choice to maybe extend your contract, sign a new contract, get more data or whatever that might be in the discussion and then the next the next portion would be to get a link on an SMS you sign that to scribe I tried this three weeks ago very handy we tried it in Swiss German which is which is a language which is quite difficult for all computers because it's not a written language it's only spoken language but it worked very very well so This particular customer had they been, and again, I need to emphasize they are not on our new revenue model, they are on our old revenue model. So this customer generated lots of revenue in the first instance, which was end of 2018, but they're not generating now from what we call the API call revenue. So in the new model, they would have started generating most of the revenue at this point of presence, so that would have been then on average 12 months after starting. And this is important because this is the new customers we bring in now will then also have the same type of trajectory. It will take someone along with 12 months before the API calls start coming in. Swisscom would be, so our large customers is an average of where we believe large customers would be. And they will be one of the largest of the large customers in that group. And they would at this point have 10 million API calls. If you know our price list, that translates to 80K euro per month. That's what this type of customer would generate in the new model. In the old model, this generates less than 40% of that, as this is only maintenance, essentially, since the line share of that revenue was taken in 2018. So that's to explain a bit what a customer looks like. The most important part here, I think, is that the transactional NPS increases by 18 points. and that they're replacing the IVR. This is a very important use case, and we're having more and more conversations about this type of use case, implementing a similar one at Telefonica in Germany, which is a deal we announced in the Q2 report. Next slide is the Q3 operational highlights. We started early on in the quarter by joining the Azure IP CoSell incentivized partnership with Microsoft. It's quite a mouthful to say, but it means that the Microsoft salespeople get commission when we sell to their customer, which also of course means that they're willing to work together with us. This is quite strong also for customers, since customers with this type of partnership, they feel more secure working with a smaller Swedish company. than they would maybe just with us. We then signed a Lewis to the power to Neo. This is our new product name. SAS deal together with our partner Microsoft to A1 Bulgaria. That was also early on in the quarter. A1 Bulgaria is an important customer to us for many reasons. Obviously, Bulgaria has less legacy than maybe many other operators, so it's a very modern operator. And it's also like the poster child for the A1 group. And the A1 group is the poster child for American Mobiles, which is one of the largest telco groups in the world. So this one is very important to us at Microsoft to really make this a great success. And Microsoft joined us in Amsterdam at the AI Summit there to talk about this in particular and how we are now taking this solution to other telcos across the world. We have a large system integrated that we work with as a partner, and they signed up to deploy Lewis to the Power to Neo for its own business. So they're going to be using the solution on their own website in their own IVR. So that's also quite interesting that they're building that out. They have a fairly large inbound volume of calls, so it fits very well for them. also the same partner also is the one that's implementing at the large multinational US tech company where we are not allowed to use the name but they ordered the project from this partner to continue the expansion in US and Japan and after this and in this quarter this is continued and that they're expanding even more so this they're building the use cases now and we will start seeing some API volumes. This is, of course, on the new model. Start seeing some API volumes come probably in the middle of Q1. So that's when they should be going live with these projects that they're building out. We also signed the renewal agreements with the US government agency, Circle K and Scania. So very happy with that. Also, they're expanding into more areas and increasing the usage, which we're very, very happy for. We typically also, these customers are quite referenceable. They speak to other customers and also then speak at events together with us, and they really love working in the product. Tenio, the development platform, is something that almost all of them are saying is absolutely fantastic, even on the business side, so that's quite interesting. We also pointed and this is important. We built the baseline here and we want to now expand on the sales and marketing side. Our sales organization has been quite small while we start to understand how we're selling and who we're selling to and how this is going to work in the new sales platform. So we brought in Nicolas now who comes from Snowflake as a chief revenue officer to start building sales organization on top of that knowledge. We also formed a advisory board. The chairman of the advisory board is Gabriela Schuster. She's the former, and she left in the last of June, former corporate vice president. So that's the highest level responsible for partners within Microsoft. So what's called the one commercial partner organization. This is important for many reasons, partly because it ties into our very strong culture where we want to hire multinational and also have a gender focus on our recruitment, because we believe that in the AI space, you need to be very diverse. Gabriella will help us a lot with that, and obviously also help us with... Sorry, somebody is... I don't know, Emma, can you help me mute? There's somebody that's making noise on the line. So Gabriella is also, of course, helping us with Microsoft and the Microsoft partners. to find the right partners across the globe, but also in recruitment and on the diversity side. Key financial highlights. I'm going to leave this over now to Fredrik. So Fredrik, if you...

Thank you. Thank you, Per. So key financial highlights in the quarter. I think the starting point is very much we are back to growth. I will dive into a number of the highlighted bullets in the presentation but before doing that I will also highlight that we have a star as you can see in the presentation on some of the numbers and that's basically the adjusted numbers that we are reporting so as of January 1st 2021 we report adjusted revenues to basically more accurately portray actual income over long-term contracts. And that's basically to have figures that better can be compared with new contracts under the new source model. This is quite thoroughly described in the quarterly reports on pages four to five for more details. So I think for those of you that are not really clear on the difference between adjusted and reported numbers, I suggest to take a deep dive into those pages. But this is more to basically align with the new SaaS model. So I'll end with that. Our adjusted net sales is growing and now mainly consists of recurring revenues. as we're also focusing on product sales to create long-term value for shareholders, as Per also mentioned. So we're not any longer focusing on professional services, and that is very important to take note of. We experienced growth on all our revenue metrics Q3 2021 versus Q2 2021, and the quarter-over-quarter adjusted net sales grew with 11%, And also with our focus on increasing the recurring revenues, this is super positive, I would say. And then just briefly on the quarterly numbers, net sales adjusted amounted to 11.9 million SEK in Q3 versus 11.5 million SEK in Q3 2020, so up 4%. The adjusted recurring revenues amounted to 9.5 million SEK in Q3 2021 versus 9 million SEK Q3 2020, so up 5%. And also as Per earlier said, the impact from our new 6.1 customers on the SaaS model is still not significant as they are in a ramp-up stage. In the third quarter, recurring revenues derived from our SaaS customers, however, still constituted 14% of total adjusted recurring revenues. And this is a number which we expect to grow as we add more customers to the SaaS model and as they are ramping up on API call volumes. So we foresee this number to increase over the quarters as we go. On a rolling 12 months basis, the adjusted recurring revenues increased with 8% versus Q3 2020 and amounted to 35 million SEK. And this is very positive, I think. And we also continue to keep cost control and had an annual run rate of 106 million in Q3 2021. and also this all in all I think so despite actually lower reported sales our cost control managed us to improve our EBITDA so the EBITDA in Q3 2021 improved to minus 13.9 million SEK and also we had a strong liquidity position with 111 million SEK in available funds So 96 million in cash and also 15 million in credit line. So overall I think we are on a positive revenue trajectory despite little revenue impact from the new customer wins that we have had during 2021. With that I would go to the next slide please. This is also just to emphasize what we are focusing on and the heading growth in recurring revenues is a very kind of positive sign and I'll just start with the fact that our recurring revenues which is license and support and usage revenues in the old model and subscription fees and API call revenues under the new SaaS model. And as for all software companies, and in particular for SaaS companies like ours, this is super essential to drive this growth. And it's very positive then that our recurring revenues are continuing to grow. This is a key metric for us in building a SaaS company and our focus on actually creating long-term shareholder value. extremely satisfying to see that the rolling 12 months recurring revenues are growing from 33 million SEC in Q3 2020 to 35.3 million SEC in Q3 2021, a growth of 8%. And also, even more positive, I would say, is also the fact that our recurring revenue on a quarter-over-quarter basis i.e. Q3 2021 versus Q2 2021 is actually also growing with 8% so we can really see a positive growth trajectory on these valuable kind of revenue streams and as we also mentioned on the previous slide in Q3 the SaaS customers accounted for 14% of the recurring numbers in Q3 and And as I said on the previous slide, we expect this to continue to grow as we add more customers to the SaaS model and also as they are ramping up on API core volumes. And another positive note is also that we see continued strong commitment and high interest on our SaaS offering from our existing customers. And we expect many of them to join the SaaS model in 2022. And another strong point is also the fact that we have pleased customers evidenced by our high renewal rates presented in an earlier slide. While we are also adding new and interesting clients on the source model as Per has presented earlier. Next slide please. Continued cost control. We are continuing our lower cost trajectory. And as many of you on the call are aware, I mean, we did a cost reduction program in Q4 2020, which we then had full effect in Q1 2021. And this cost reduction was done basically to align to the new product-led SaaS strategy. So moving away from a hybrid model with professional services and a licensed model to a SaaS model. We continue to keep a low OPEX 7. Current annual run rate was 106 million in Q3 2021. And with that also you can see that our monthly OPEX course pay was below 10 million SEK per month. And going forward we expect to increase OPEX somewhat from Q3 level in Q3 and onwards. primarily as per adding key commercial positions to enable us to execute on our new source strategy and grow sales even more. Still, I would say we keep careful control of costs. Next slide, please. We have a solid and strong cash position when we are leaving Q3 2021. And our liquidity has continuously been strengthened during the year. As many of you are also aware, we successfully closed a direct share issuance in Q2 2021, providing us with 112 million SEK after deduction of transaction costs. And also, I think this is very much to emphasize that we are in a very much different position now versus prior year and also beginning of this year with the financing that we have secured. In May, we secured the equity issuance and also as we were going to the next slide, we also successfully closed a new credit facility over five years. So all in all, this basically provide us with a strong cash position to enable us to drive and execute on our strategy. to 100% and not having to focus on financing and refinancing. Next slide, please. On October 5, the company announced the signature of a term sheet for a five-year credit, and that is a 250 million credit line carrying an interest margin of 9.5% and with a peak interest And a peak interest basically means that the interest cost is being capitalized over the tenure of the loan, so basically five years. And that will result in that we don't have any cash interest payments during the tenure. So this is very positive for us in a position where we are still in a cash flow negative position. that we don't need to pay any interest costs that will flow out from the company. As can be seen in the left staple graph, we have 250 million in proceeds and the proceeds from the new financing will be used to refinance the company's existing debt of approximately 200 million. And that also includes the convertible debt that we still have on the balance sheet. and following repayment of the debt, we will have approximately 50 million excluding transactional costs available for continued growth of the company and execution on our strategy. So all in all, this means that our cash position as we saw on the previous slide of 96 million will be added with additional 50 million as can be seen to the right in the staple graph. And also, I would also like to emphasize that with this financing our interest cost is significantly reduced. So we reduce the financing cost with approximately 7% units versus the previous debt financing. So the new financing terms are therefore much more favorable. And I also want to emphasize that the key for us also with this finance is the fact that we don't have to pay any cash interest until after five years. And our financing cost of 9.5% is much lower than the cost of financing the company with equity. So yeah, truly favorable, I would say. The financing is provided by Capital Four, a highly reputable credit investor with 15 billion euros in assets under management. This is a highly professional investor who has looked into the company for a long period of time. So it's also a credit investor that fully understands our industry, our competitive position, our revenue model, and what we are actually looking to accomplish with our new unique technology as the foundation. And in the company, I think we view capital force finances as a sign of trust in our staff, our technology, and also our ability to successfully execute on our strategy. So a quality stamp in short, I would say. So just to summarize, I think the company is very pleased with the new financing. especially as it provides us with an even stronger cash position to carry out our source strategy. So yeah, we are truly pleased with the financing. Next slide, please. This is a slide that we have shown in previous presentations as well. So I think a bit of repetition here. It basically entails our revenue model under the new kind of source model. It's a highly scalable revenue model and to the right you can see in the table the key revenue streams for the model and I like to focus on two of them. The two key ones are subscription revenues and then API core revenues and both of these kind of revenue streams are recurring. and that's also as you saw on previous slides this is something that we are really focusing on to increase these types of revenues that are highly valuable also from a company valuation perspective. Subscription revenue is based on the number of seats used so basically the number of users using our kind of development environment and the pricing of that is between seven and a half and ten thousand euro per customer a month and that is also kind of highlighted in the red color in the graph to the left and then we have API code revenues and these revenues are fully volume linked revenues so this means that the revenue is built on the number of API calls generated in our engine times the cost for the customer of 0.8 euro cents so and this is the dark blue color in the graph and also as we say in the table to the right as an illustrative customer this means approximately 2000 to 24 000 euro for a small and a large customer and of course a larger customer can of course also generate much higher API call volumes than what is shown there as well and of course also than a smaller customer. This is an illustrative example that we have to the left and yes to also give a bit of flavor on on the customer wins that we have done on the source model in 2021. We can just say that we categorize those six wins as reference customers and we also perceive them as being large customers with the potential to reach the level that we illustrate here. And the illustration is then of course bit different so if you are a small customer versus a large customer you see the ARR fully ramped up and the big difference is of course on the revenues generated through API call volumes and therefore also higher volumes bring up the revenue as well so in summary I would just say that our source model is highly scalable and yeah super interesting I would say So over to you, Per.

Thank you, Fredrik. I want to use the next slide to give... So two slides left. I just want to give a bit of summary of what the company has gone through and also a last one with some of the key numbers. So let's start with the transition to a SaaS model. We are done. Our software is running since... mid-july we're running a full load on the software as a service platform this of course means that there's one version of software during the quarter we've been upgrading and adding features 16 times to this platform meaning that customers get new value all the time and that is of course the way the SaaS model should work so we're done with this and now it's sales and marketing focus so what we've been doing for this year is basically building a foundation it started with re-engineering Tenio in february We launched the new product and pricing also in February. We signed the first co-sale partnership with Microsoft, the one that is the predecessor to the one we have now, where we first needed to do some deals together to get to the highest level where we are now. And that was already in March. We also signed up the first customers in March and also deployed the first customers. And then we had both ISG and Gartner recognizing that this strategy was the right strategy for customers. In April, we did the strategic SaaS deal with this large multinational US tech company. The one that I said then is gonna likely start generating real API revenue in the beginning of Q, sorry, middle of Q1 next year. So you can see that's almost 12 months as well. And then we also signed the conversation AI with Telefonica Deutschland 02 and also a very interesting customer that are deploying a similar type of solution to the one Swisscom uses. In May, we did our first share issue, 120 million SEC. We also added support to support 86 languages, which is an important part because that means that Microsoft can support six languages, now have another 80 markets where we can work together. In July, we won this deal with A1 Bulgaria, a part of American Mobilis, and then the Renewal Deals with Circle K, Renewal Deals with Scania, Renewal Deals with the US State Agency, and the financing that Fredrik just mentioned. So, clean up the balance sheet, we totally changed the technology into what's now called the Kubernetes-based SaaS platform. So, that's actually a very complex project, great work by our development team, and we've secured the reference customers now the focus will be to build pipeline on top of this so now the focus is to first get these customers of course to start generating API and so their success is tied to our success but also now to start generating new customers that's why Nicolas just started at the beginning of this quarter and is recruiting new and new sales organizations to speak since our sales organization shrank quite a lot as we were doing this change and we're now starting to rebuild that and then also we put some marketing programs into place at the tail end of this quarter Q3. So starting to build a pipeline now on top of this base platform that we have. Next one is a summary of all the things we've been talking about. Patents and IP valued at roughly $150 million. It is a very valuable technology that we work with I come from this industry, I've seen it from the outside. It's an excellent technology and also the patents, the way that patents are cited show that. Our customers are growing. The 3X is the growth in our customer base of the usage of the platform. Granted, most of our existing customers are not paying for that because of the old model, but that means that at least customers like to use the platform and continue to grow the usage of that platform. We've reduced the cost by 40%, which was the key to be able to rebuild the company from this base where we are today with sales and marketing that fit the SaaS platform. We grow primarily in the Microsoft Azure space. So there's 1700 plus customers that work with Azure and Azure services. And of course that fits us very well since that's the ecosystem that we're playing in. And it's important to us to be part of an ecosystem that adds credibility, makes it easy for the customer and provides better value to the customer since many things are pre-integrated that way. The team that is here now has been part of building a sales company valued at 13 billion SEK. The team is in place now. We're all executing as in the beginning of this quarter. We have a complete new management team, so beginning of Q4, that is. But at the end of Q3, we ended up there. And that's very important to us as we are now starting to execute on the growth. Market is growing, market is big. The $14 billion market, 22% CAGR. We have the largest implementations in this market. And now we also need to find the most amount of customers during the next few quarters. When we move our customers into the cloud, a key reason for them to do this is that they can reduce their carbon footprint with 84% for the same compute. And that's a very important message internally and externally for many of our customers, but of course also for us as we move it from what's called on-prem implementation into the cloud. According to the Gartner calculator, this reduces the carbon footprint to 84%. This was what I wanted to present this morning. The next slide says Q&A, and we welcome any questions on this. We have another nine minutes. Sorry if I took a bit longer than usual.