Activeops (LSE:AOM) — Interim Results

0:00 Good afternoon, and welcome to the ACTIVEOPS PLC Interim Results Investor Presentation. Throughout the recorded meeting, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply click Q and A, type in your question and press send. Company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Richard Jeffrey, Executive Chair. Good afternoon, sir.

0:31 Good afternoon, and welcome, everyone. Thank you for making the time to listen to the results this morning. In the course of the next hour or so, Emma and I will talk you through the interim results and give you a general update on on trading, and and perhaps we'll we'll kick off with a little bit of an introduction to the company for those of you who may not have come across us before. ACTIVEOPS is a SaaS software company. We service clients all over the world with a general problem of optimization of their work and capacity. So in the complexity of the modern world, when you've got lots of people doing lots of things, clearly, with pressures on productivity, but in service and the like, you the the pressure on organization to use their staff really well to get the right amount of work, deliver the right service, and ultimately also comply with regulations is a huge ongoing headache. And amongst all the different levers of organizations to to to change that, whether it's different places to do work, different systems of work, clearly, you'd extent to which you can orchestrate that really, really well has a huge effect on the business performance, and that's our that's the ACTIVEOPS solution. We provide SaaS based products which sits inside organizations at enterprise architecture to provide the tools and the method that helps people run their operations better.

1:44 As you can see on the screen, we are split across geographies. So we have an EMEA region, Asia Pacific, North America, and we derive revenue from two types, from the SaaS soft SaaS software itself and from the services that we we run-in the to in support of that, either installation or any kind of maintenance activities that we might do. In terms of the the key strengths of the business, one of the things that we're enjoying at the moment is is a really active market. So so there is and and many people on school will read papers about the dilemma, for example, around working from home versus working in the office and actually the inadequate information that most companies have relating to that question. And so there's a huge amount of challenge for organizations to to run their operations better.

2:31 So the the market's growing very strongly, and ACTIVEOPS is a specialist in this particular world. To to our best knowledge, we are the leading player in in this market. We have expertise all over the world in the challenges of running complex operations, and that's embedded both in our software, but also in our our methodology that gives us some really interesting differentiation in the market, particularly in the emerging world of AI where you need to know what a good answer looks like in order to be able to train your models to give answers. And I can touch more on that, but ACTIVEOPS is very well placed to exploit our history in this business. We currently service, and we have a great client list. Along the bottom, you see some of the logos there around sort of blue chip customers that need our services. But the great thing is we we therefore have had to develop all the kind of you can imagine the the qualification for testing the certification that means our software can exist in these kind of highly controlled environments. And those are sort of tests we both pass every day, but but also act as defensive modes for new players on on the market.

3:31 We generally operate in this land and expand. What does that mean? It means organizations tend to deploy us in an area as a as a leader on performance, perhaps to raise productivity or meet the service problem, and then they realize the standardization of what we do is applicable across their estate. And so we we tend to grow very quickly across large customers. And one statistic for you, which we'll come back to, but even within our existing customer base, say, represented by our 25,000,000 roundabouts of of recurring revenue today, we we can identify directly at least 90,000,000 of further revenue from those customers even if we didn't sell a single additional customer through expansion and additional product set. The business model itself is very cash generative. We we bill annually in advance.

4:17 The software delivery is is has a high high gross margin, So that generates both sort of confidence in in in visibility of the future earnings, but also cash to to expand. And one of the themes for today is how we're now really we're growing our sales channel, but continuing to manage the business profitably. In other words, we're not investing negative know, we're not borrowing money to, if you like, sell more. This is this is entirely funded out of continuing operations. And in fact, our our capital position is very strong. And and, ultimately, we're capitalizing today on on a series of activities I'll go into both in terms of product and marketing, which really gives us some confidence in terms of the scalability and sales. So lots to lots to be interested in, lots to be excited about as far as we're concerned. Just as a for example, there's a slide on the screen here which illustrates one of our signature customers over the last couple of years, Fidelity International, probably well known to many of you, ACTIVEOPS is a is a is is now embedded in how they run their operations every single day.

5:19 They they take data from a variety of sources like their work their human capital management platforms, which in that case is Workday and other sources of information, and ACTIVEOPS synthesizes that to give that single view of working capacity across their enterprise. And there's a variety of statements on this slide, gives you a a view on how effective and how impactful that's been on, not just their performance recently, but their own self confidence to now implement further, yeah, capabilities for change. So so and and and team there are very happily being on our stages around the world as we do our conferences to to to talk about the impact it's had structurally on their business. And just as a sort of marker of the the consequence for ACTIVEOPS there, you can see the the growth year on year in terms of the the headcount under management. And and and this is just one example of which we we have made.

6:08 So in terms of the the key one key highlights for this particular half year, What we're particularly excited about is the rate at which new customers are seeing the problems that generate demand. So we picked up three new customer wins just in the half year, and in fact, we've two more since the half year of September. So lots of good stuff to to talk about there. In particular, we're quite geographically displaced and displaced, and that's another sort of resilience argument. Canada and South Africa in particular are very strong for us at the moment, but equally, we're seeing great activity in Australia as well as back in our historical strength in in in EMEA. So the kind of regional performance adds that kind of re resilience to the business. Under the bonnet, what we've been doing, and I'll give you a slide later on about the technology platform, we've now completed a wholesale movement of off our, what you might consider, our legacy platform, always been SaaS, but off our legacy platform onto our new Control IQ platform.

7:04 And the important thing about that is the capacity to now deploy new technology, which customers want to pay for, and we'll talk about the series and and the impact from the commercials of that. But that is an under the bonnet type activity the business has been undertaking, which is completed, and that obviously unlocks lots of opportunity, but also releases capacity to do other things. I wanna talk more about the product set in a minute, but also the key thing is we've been on a three part trick in terms of our development. We've we've replatformed and enabled our technology to be cutting edge in terms of the latest Microsoft Azure environments. We've been building our marketing positioning, and some of you may have looked on our website and and seen some of our videos, but the whole articulation of the need for better decision intelligence to support business strategy is becoming very, very powerful.

7:50 And now we're at the stage of actually gearing up our sales our sales teams to support the demand we've created around the world. So that's the sort of highlights to to reflect on, but I'll now move over to to Emma to talk a little bit about the actual financials for the half year just completed. Perfect. Thank you, Richard. So first of all, I'm just going to start off by providing a high level overview of our commercial model. So as Richard has has already alluded to, we have two revenue streams in the group. We've got SaaS revenues, which make up around 90% of total revenue, and then the remaining 10% is our training and implementation revenues. Our SaaS revenues typically comes from one year contracts. The billing mechanism for this is usually annual in advance, and then they are charged on a per seat basis. Margins for SaaS, we have consistently delivered high margins for SaaS. So this first half of the financial year, we've delivered an 88% margin.

8:42 And that's a slight improvement on what we have done in the previous year, which supports the restructuring of the hosting environment and then just also the operational leverage that's starting to come through from the business model.

8:54 The other 10% of revenue coming from training implementation revenue essentially is derived from ad hoc training and then also the implementation of our software. This does vary depending on the product mix. So Control IQ and Casework IQ typically is a twelve week implementation program, whereas Work IQ, we can install it in as little as three weeks. The margin for TNI just varies slightly, very much depends on which product and also the location of installation, but we typically will see margins of anywhere between 5055%. So for the first half of the year, we delivered a margin of 53%. In terms of some of the highlights from the financial numbers for the first half of the year, so with total revenues of 14,300,000, we delivered double digit total revenue growth on a constant currency basis of 11%.

9:46 If you have followed us previously, year end '24 was our first maiden year for profit before tax. And what we have seen here is a continuation of that profit profitability momentum building in the business model. So the adjusted EBITDA margin for the first half of the last financial year was 6%, whereas what we have seen for the first half of this financial year is 7%. So we can still see that momentum grow from a profitability perspective despite investment in sales, which I'll come on to in a second. In terms of cash in the bank, we've got 13,400,000 of cash in the bank at the end of September twenty four. A year on year growth from the previous half year, that is a 36% half year on half year growth rate. We do have a seasonality in our cash number. So the for the first half of the year, we actually saw a cash outflow, which is very typical for our business.

10:36 60% sorry. 65% of our renewals take place in h two of the year. So, typically, what we'll see is cash generation in h two. In terms of the journey for the EBITDA bridge, they're comparing the EBITDA for the first half of the last year compared to this half. I have two things really to point out and to talk about. So firstly, to sales and marketing spend. So for the first half of the year, we have onboarded five new sales heads. We started the year with what we would typically class as quota carriers. We started the year with eight. We have onboarded five since then. And what we are looking to do is potentially bring on two more between now and the end of the financial year. The in year the in the in sorry. The impact for the first half of the year of £500,000, that will increase slightly as you go into h two. Most of those heads did join towards the end of of the half, and, obviously, in h two, we'll we'll have the full half impact for those heads.

11:30 And then aside from some more other inflationary increases in FX, the other thing really to point out on this slide is the change in the capitalization of r and d. So we do capitalize r and d. Last year, we capitalized 1,300,000 across the total year. The first half of this year, we've capitalized 500,000 versus last year, which was just under 600 k. This isn't this isn't signaling that we are reducing the spend of r and d. This is purely a timing of what we have spent time on this first half of the year, whether that was capitalizable or not. So it's purely a time and peace, so it's not a flag of any change to to the spend or investments in the product roadmap.

12:11 In terms of the strength of the SaaS model, so two main metrics that we're going to talk around is ARR. So ARR on a total currency basis is 12%, which we consistently delivered 10 or plus in the last few years. But, actually, the the number that we we talk about past losses in net revenue retention. Retention. So on a constant currency basis, we've delivered a 110%, which we've consistently delivered a 110% for the last few years. One of the things we are highlighting and we have included in the r and s that which we released this morning is we have received notification from one of our significant customers of their intention to reduce their user base. They we have not lost the customer, and they will still remain in the top 10 customer profile for us. It will represent 5% of the ARR.

12:57 However, we are still expecting on the full year, the NRR will exceed a 100%, and we are still confident in delivering the the full year board expectations. In terms of the land and expand successes, which is something we talk about in in quite lots of detail, so one of the statistics that we've had just under 90% of our customers in the first half of the year either increased or maintained their ARR. However, what's more of an interesting statistic is that over 30% of those actually increased their ARR by 20% or more in the first half of the year. We released Casework IQ last year, and we're seeing ARR growth on this particular product of over 20%. And then also, which we'll come on to in a bit more detail, is the momentum we're building on series three for Control IQ.

13:42 So we've seen ARR growth exceeds 12% as we've seen a number of our existing customers being upsold from series 2.5 to series three.

13:55 For those of you who joined the year end presentation, you may remember that we shared a customer profile of a UK tier one bank, and we were showing the journey of the ARR growth over the last eight years. And they have gone through a cross sell of Casework IQ and an upsell to series three. And what we want to do this time was shine some light on Australia. And actually, this is one of the Australian banks. They've actually been with us since 2003. However, here, we've just looked at the last nine years. And what you see on this profile is quite typical for one of our customers. So norm normally, once we've onboarded a customer, we'll go through an expansion pro program with them. So here you can see in the first six years, we doubled the ARR as we increased the user base by expanding into various different departments.

14:43 Across f y twenty three and f y twenty four, this particular customer went through an RFP process, which is one of the RFPs that we announced last year. And as part of this RFP process, we actually upsold them to series three. And as part of that, we actually were able to increase the ARR uplift by 23% year on year. Now what's really exciting here is this is showing you the story of the impact of moving from series 2.5 to series three. Actually, the the next exciting point is the fact that we've got the opportunity to cross sell casework IQ within this particular customer, and then also series four, which is due to be released at the end of December this calendar year. So therefore, we expect the growth or the opportunity within this account to continue. Richard mentioned at the start of the presentation that the TAM within our existing accounts, currently quantify to be £90,000,000 of incremental ARR from what we've got to stay just within the existing customer base of 72 customers.

15:40 To sort of add a little bit of flavor to that, so within the case of Control IQ and go to series 20% of our customers currently using series three. And, actually, we've got another 8% of customers who have contracted to move to series three in h two. That leaves 72% of our customers who are still yet to move to series three, and therefore gives us a sizable opportunity to continue pushing the ARR number up. And in CaseworkIQ, we currently have identified 45 existing customers who are candidates for CaseworkIQ, giving us another opportunity for cross sell within the existing accounts.

16:22 Just to round off the finance section, so finally, the business is in a very financially healthy position. We've got no debt on the balance sheet. We've got high levels of cash. A high level of our revenues recurring at 90%. Across the full financial year, we're very cash generative. As I just mentioned, we've got multiple opportunities to cross sell CaseworkIQ and WorkIQ and then upsell to series three and then also on to series four next year. And then we're now in a position where we are sustainably profitable, and we're really starting to see the momentum in that profitability, which you can see through the EBITDA margins come through. Very good. Thanks, Emma. So let's start sort of looking more in detail at the strategy and and the opportunity going forward.

17:09 Firstly, and I I alluded this at the beginning, the world's not getting any easier to run. The sort of challenges our customers are facing are only escalating, not not just terms of the defensive position of regulatory environments, but also opportunistically. Everyone's talking about AI. How do you bring AI to bear into your organization and cash the check terms of exploiting that particular feature function or or capability when historically, particularly large institutions have a pretty lousy track record of their yield for investments around technology. And so that kind of appreciation of of of the problems they have or the need for better control is only escalating. And and that's where we really do have a a a particular sort of dog whistle of of of solution that that is tracking a lot of attention.

17:59 The opportunity is to leverage AI in the actual control over business. ACTIVEOPS has its standard, which is global. And that when you think about training these large language models and and and training AI to know what good looks like, you have to have reference points. ACTIVEOPS is the only player in this particular market that has a standardized methodology to answer that question. So our ability now to bring our own technology and and leveraging our relationship with Microsoft to to bring the the sort of really some the state of the art around machine learning and so on to that methodology gives us a real a real edge, and we're seeing that now in terms of the technology we're starting to deliver.

18:39 So just wanted to highlight one particular slide which might hopefully bring that to life a little. This is a chart of our functional drops and functional releases over the over quite a long period of time. And I think you can see the that's that j curve as it as it's really come through, the impact in the last two years of the functionality we are bringing to our customers. Now the the last vertical drop there is is is the latest release in series four where we're now offering our customers visibility across their entire supply chain, like branches, relationship management teams, centralized back offices, and contact centers. So executive dashboards, so they can see all that in a single place, is incredibly powerful and means the stakeholder community for our state ops data is is is moving from just the COO communities to the chief people officer, the the the IT, and and so on through.

19:32 OPI. OPI is our copilot. It's our it's our artificial intelligence. What what does that do? It makes it easier for managers to do the right thing. So much the judgment in the type of environment we're talking about relies on people interpreting the data we might provide, but ultimately acting on their own knowledge and experience. ACTIVEOPS' AI driven copilot now says, here's the situate you know, you're going to an appraisal for a team member. Here's the things they're good at. Here's how their learning curve compares with the average. Here's our recommendations for the best use of that person. So we're both impacting the effectiveness of that middle management, but we're also reducing the effort that they would have to take to prepare that kind of data. And, crucially, because this is why it really matters to large corporations, we're doing that consistently. When you're talking about organizations with maybe five, ten thousand people in their back office, that's a lot of people. That's a lot of managers. That's a lot of individual decisions. If we can get our arms around that, show them that average person makes a better decision every single moment, They're galvanizing. You can imagine the gearing effect is huge. So this technology drop, the ability to provide solutions that people see real problems for is is is is a is a massive accelerator to our to our sales.

20:43 And if any of you look on our website, you'll see a lot of that come through in terms of the presentation of of the solution and how we how we describe problems that people will recognize. Skills cataloging, skills understanding is fundamental to running operations, but it's done so badly because it relies so much on the judgment of individual leaders. ACTIVEOPS' software for the first time enables organizations to effectively determine skills. We track what people do, and from that, we're able to inform through big maths and big processing people's capability. So then you have learning curves. You have catalogs, and all sorts of other stakeholders start to have a resource of information on which to add our data to theirs to to make better decisions in the area of sort of what staff well-being, staff enablement, attrition, and all the other kind of agendas as well as multiple others.

21:34 So so the the the impact of both having ACTIVEOPS as a standard, but the enablement is now really, really quite amazing for a lot of our customers. So we we're seeing that reflected in our demand side. So, for example, on marketing, a lot more inbound, but more importantly, inbound tuned towards what we do. Because you have to have if we're gonna scale our Salesforce, what we can't have is lots of educators. We need people who service a known need, and that's the shift. So what we're seeing now is people coming in with a clearer sense of the problem statement, which ACTIVEOPS absolutely can respond to, and that then speaks to the point Emma was making about how we're now starting to turn up a wick in our Salesforce. Because with the a kind of the right skill sets around enterprise SaaS selling, but also the the the demand side from customers, we can see a real acceleration, and it's coming through in the in terms of the new logos already in in the five already this year.

22:30 In South Africa, we're we're growing we we've got a lot of activity going on. We've got Spotlight in Canada here. So so in Canada, we've we've now have our software in five out of the six Canadian big biggest bank biggest Canadian banks, but each of them are fairly early stage. So we're we're investing in activity, leadership, and presence in Toronto to actually scale that out. In in The UK, we've got three new sales team, members of the sales team, what two of which are enterprise software salespeople. One is a very much a sub subject matter expert in the area of insurances, different skills, different situations. In Australia, which has been a a huge support for the business over many years, but because we've been so we're we're effectively the standard for banking over there as a standard for this type of software, it's been relatively flat for a few years. You saw on Emma's slide earlier the effects of the new product the new functionality raising tariff, but now also we've got greater inbound demand for for new new services, and we're we're seeing that with a a new health care provider signing up in Australia, which is a global opportunity, interestingly, as well. So overall, we we are now building sales capacity to meet demand rather than trying to invest in sales capacity to trigger demand, and that's a very, very different place for us.

23:43 Now the lap timing for SaaS software sales, as you many of you on call probably know well, you know, we're talking about twelve to eighteen months to become both effective as an individual but pipeline sales. But I think what we're signaling here is if you project forward the kind of activity we have now and the capacity we have now into the year you know, next year and beyond, it starts to get quite interesting. So speaking to that target addressable, and I've touched on this already, we you know, for our current $2,026,000,000 of ARR, when we run the numbers in terms of both the product the enhanced products and the increase, that suggests there's at least 90,000,000 worth of annual recurrent revenue still to be sold to customers with whom we have an existing contract. And that speaks to the NRR.

24:30 I mean, notwithstanding the the the event Emma referred to, you know, our historic NRR is is a reflection of just that uplift, and we can accelerate that with new products. Our case with IQ is going really well. It's now in 19 of their existing customers, and there's talked about its opportunities there, similarly, the other the other bits of the product and the new series. But, of course, with that broad appreciation of the need for better control is coming greater inbound inquiries from our target. We don't suffer from a constraint on on on target addressable market. The issue is one of focus. The way we do that is we we identify the top two fifty institutions, which we believe is the need for and and the capacity to absorb our type of technology, and we sell and target those. Broadly speaking, they break down to those three types of market you see there. But we have the expertise. We have the the the track record credentials and and to sell to those. And that is a you know, it's it's a very large market indeed.

25:26 Just just turning our mind specifically then to what's happened subsequently in terms of current trading and outlook. We've we've had a, actually, a cracking start to the first to the second half. We've had two new logos that have already signed up. We're well on track for the deployment of series four. We've got just another customer just signed up for series four, which which will be another uplift to the to the the market. There's a huge amount of momentum behind series three price increases as as the contracts renew. That's typically when you imagine people buy the uplift. So we've got a program of work, meaning that the the the new product's being sold well. This time next year, I I would be expecting to report the vast majority of our customers would have, you know, moved on to series three. And as we know, we've seen a 2626% increase in our which I said, 24, actually.

26:12 24 20 more than 20% uplift in our our revenue through that the the move from 2.5 to to three. We have no shortage of land and expand opportunities. The new opportunities we sold this year, even just those, we think we've added another 10,000,000 to the target addressable for the for the new customers, which will come through in the course of the next two or three years. And going back to that road map, I I gave you a picture of the things that we're already deploying, but if we extend from that to what we've got planned and got for next year, we really are talking about some cutting edge technologies to solve some very hard problems. Just as an example, organizations are increasingly looking to utilize different types of resource in branches and banking on different places. Our technology in conjunction with workflow is enabling them to solve the conundrum of having a politically accept presence in different regions for not suffering efficiencies.

27:02 And that's a huge advantage to an organization with a kind of a public service obligation to to meet in terms of where where it keeps branches open, for example. So lots of lots of things to to to be excited in there. That's that's the sort of overview of the business. As you can tell from our tone, I think I think we're very being very positive about it, but equally keen to to to take questions and and and and hear more from from the audience. So perhaps hand back to you and and turn inviting some questions. Fantastic. Thank you very much indeed for your presentation, Richard, Emma. Ladies and gentlemen, do please continue to submit your questions. Just click on that Q and A tab just on the right hand corner of your screen. But just for the time, take a few moments to review those questions submitted today. I'd like to remind you the recording of the presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard.

27:56 As you can see, we've received a number of questions throughout today's presentation. Thank you to the investors for submitting those. Richard, if I could just perhaps hand over to you just to read out the questions where appropriate to do so and give you response, and I'll pick up from you at the end. First one, can you elaborate more on why the one company has reduced usage? I have to be a little bit careful because I'm clearly very but they but key point there is they're a continuing customer, so they've reduced usage in one particular area. And in that particular area, they have a much stronger and much larger relationship with some of the one of the the contact center software. And, essentially, the the contact center software provider somewhat against the grain is is offered to provide some functionality, which which for for

28:38 effectively a very low price. Let's put it that way. We're not we've never competed against them. They've never actually delivered anything approaching this, so we will see how events turn. But it's it's one of those things in large companies in terms of the software spend. You you get that. I would say we have one previous example of that where in in a similar case, they they they decide to go on a different route, and and and a few years later, we're we're reimplemented. So so so we'll we'll see how that goes. I'll take the next one. So how good is the profitability at the current levels of operating costs, and what level of revenue can you manage from this base to increase the margin? So over the last few years, we've invested heavily in marketing and our product and technology functions. The level in which that investment has gone in, we would expect to maintain for the next few years. Where we are looking to increase cost is around sales, as I've already mentioned. So we've already onboarded five so far this financial year with two more expected for the end of this financial year. Next year, you'll obviously see the the full year impact of those hires.

29:37 But to answer the question, we expect to be able to maintain the levels of cost that we have in the business and to match with the revenue projections that are currently out in the market. Next question. How do you plan to maintain the ARR growth rates in Canada and Africa, and are you targeting additional regions for similar expansion?

29:57 Great question. Essentially, particularly in in in Canada and Africa, we're we're at a very low base that gives us plenty of headroom. So the issue is more about exploiting and and maintaining that revenue, that that growth. But but if you take my five out of six Canadian banks, for example, four of the five are at a very low level of penetration. You know, we've landed, and we're in that kind of ex in early stage of validation and expansion. So so in terms of the the the the target addressable within that community, again, we see plenty of opportunities to deliver that sort of growth rate in in that region. Similarly in Africa, there's there's a lot of scope there. We,

30:35 you know, we have plenty of opportunities, let's say, for going to different markets, but also different verticals. But at the moment, the benefit of focus and network and relationship means that we we we we are focusing, if you like, on those those areas. Different customers over the years have taken us to different regions because they are global and they want to apply us, and that that you know, we would be reactive to that. But at the moment, we don't need to go and, if you like, fund a poll or, more importantly, invest in in new areas to to create market. Do you have channel sales funnel, or is it all direct? Again, really great question. The short answer is it's all direct, essentially, at the moment, but this is absolutely linked to market maturity.

31:20 What we are seeing, though, now, as I've alluded to, is more people, more organizations sensitive to the needs for better data. Decision intelligence is so crucial to your capacity to execute change, deliver benefits, satisfy stakeholders, and that is creating a much greater appreciation of need for better data, or perhaps the other way around, the paucity of many systems. Now if that need continues, what's in what's interesting to me is in a different dimension, the strategic conversations we are having with partners' companies is actually going up a notch because they've in certain different forms, the consultancies, the SIs, and indeed some of the system the the big platform technologies like Workday and ServiceNow and Pega, you know, they there is a greater need for stitching these things together to drive value because the the track record of driving value isn't necessarily that great. So I I think having

32:13 as we've grown the business over the over the, well, last fifteen years, primarily through the direct channel, I'd be very surprised in five years' time, say, if we weren't significantly the industry partner. We're just at the state early stage of that.

32:29 Can you break down the the NRR, a 180%, into price increase uplift and upselling features? Any thoughts on changing pricing model from seats, I. E, falling KPI, to usage or enterprise wide model? There's a good couple of questions in there. We we don't break the down thing down the the NRR down, George, but we do I mean, we've given some figures. So the stat on the the uplift series three gives that sort of 20% gross uplift. We've got 19 new customers already using 19 customers now using Casework IQ. I think that's contributing what revenue is? For Control

33:07 IQ. For Casework IQ. It's about 3,000,000 there. 80. Correct. Yes. Correct. Yeah. So so we are seeing a good level of cross sell, but indeed, the population, the the addressable for Casework IQ, I think, has got some good scope in there. You know, you can you can break it down. At the moment, we have very little penetration of Control IQ, our core product, into those American health care providers that use WorkIQ, so there's lots lots in there. You know, it is a it's one of those things where we it's not a generalization. What we're targeting in our different sales strategies are focused towards the particular cross sell or upsell of of different situations. Pricing is an interesting one. At the moment, we are sticking with the the seats model. There is scope for different solutions in there. I mean, I think and this is one of those areas where we'll be we'll be a follower rather than looking to be on the the cutting edge. We we, as an organization, benefited from the general move to annual and advanced billing that other companies took SaaS towards in the third in in two thousand fourteen, fifteen, sixteen. We didn't have to make the case for that. Organizations were ready for it. I think we have plenty of opportunity for moving to a an output based or a sort of earned value type approach, But but I suspect other companies, the big ones, who also work on an FTM meeting, Huddl, will will sort of change the game there, and we'll be we'll be in the midst of that.

34:30 Fantastic. Thank you very much indeed. That does cover off all the questions we've had. And of course, any further questions that do come through, the company will able to review those. And we'll able to publish responses where appropriate to do so on the Investor Meet company platform. Richard, before redirecting investors to provide you with their feedback, I know it's particularly important to you and the team, could I just ask you for a few closing comments, please? Thank you. I hope through the tone, you can feel the level of sort of excitement we have. I think the product set is absolutely at the moment. I think I think the messaging is getting better all the time. They attend these at the conferences we've just finished, The U that that AOM in Toronto, BACI in London and and in Melbourne probably had a 100% increase in in attendance. So lots of lots of real experience to be excited, And then the sales team coming on board now to service that capacity, you know, we're we're we're keeping our sort of projections and the analysts cut out sort of modest, but but as a as a management team, we're we're very positive about the opportunity.

35:26 So, again, lot lot lots to look forward to. Fantastic. Richard, Emma, thanks indeed for updating investors today. Could I please ask investors not to close the session? It should be automatically redirected to provide your feedback in order the team can better understand your views and expectations. This will only take a few moments to complete, and that is greatly valued by the company. On behalf of the management team of ACTIVEOPS PLC, I'd like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all.