Corero Network Security (LSE:CNS) — Full Year Results

0:02 Good afternoon, ladies and gentlemen, and welcome to the CORERO NETWORK SECURITY PLC full year results investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via the q and a tab. It's just situated on the right hand corner of your screen. Please simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all of the questions submitted today and publish responses where it's appropriate to do so. These will be available via your investor meet company dashboard, and we will notify you by email when these are ready for your review. Before we begin, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand you over to CEO CEO, Leonel Smilevsky, and CFO, Neil Pritchard. Good afternoon.

0:48 Thank you very much for the in introduction. Good afternoon. Thank you to everyone for attending the meeting today. Let me say a few words about who we are, and I will ask Neil first to start, and then I give few few lines on my profile, my background. So, Neil, please. Super. Thanks, Neil. So good afternoon, ladies and gentlemen. Thank you for attending today. Yes. My name is Neil Critchard. I'm CFO at CORERO NETWORK SECURITY PLC. I my background I've been with the business a couple of years, and I've my background is one of business to business listed in for the last twenty five years since since qualifying KPMG. Previously was with a listed UK technology business for five years. And, yes, lots of reporting functions within within my domain, obviously, primarily finance, investor relations, legal, HR, and so forth. Back to you, Neil.

1:50 Neil. Janelle, CEO of the company, joined the company about two years ago, same time as Neil. My background is very much into technology, mostly around telecom and software, worked for large corporations like Alcatel, Nokia, but also midsize corporations, work for private public corporations, but always in a very international environment. So what we would like to do today, that's okay with you, is to go through a number of points. As you saw, we published an RNS, and we published our fiscal year twenty twenty one results on Tuesday this week. So we're gonna spend some time giving you some background on the company, financial highlights,

2:40 then the financials more in details, give you some overview on our solution and our road map. We'll explain to you how we differentiate from our competitors, which share with you our strategy for growth that we've implemented for a couple of years already, and then couple of words of conclusion. So for those who don't know CORERO, CORERO is a publicly traded company. We are on the end market. We are headquartered in in The UK, close to London, and we have offices in Boston and Edinburgh. Edinburgh is where we have most of the r and d. Boston is where we have operations, marketing, CTO office, part of the sales, and some other central functions.

3:31 We are so just to specify who we are, we are the leader in what we call real time, high performance, automatic. Those are differentiators. So DDoS protection solution, we give full visibility and analytics to our customers. We are operating in about six segments, but the top four are ISPs, hosting providers, SaaS providers, colocation, stroke, data centers, and we're also doing business with edge providers and enterprises. Enterprises, we mostly address that through some of our partners, and I come back to that in a minute. We are protecting thousands of organizations with our solutions.

4:19 We are present in about 50 countries in in all the continents. I will explain that in details later. We are investing a lot in r and d. Between 15 to 20% of our top line is invested in r and d, and we own, I mean, all the technology. We develop everything in house, and we own the the patents as well. We have two very important strategic partnerships. One is with Juniper. The other one is with GTT. And then we have couple of technology partnership, one with Splunk for the analytics, and the other one with Newstar for providing a hybrid cloud and on prem DDoS offering.

5:06 If I move to the next slide. So this is the management team. The reason why I wanted to highlight that is we recently hired the chief revenue officer, strong profile, and that's the management team. So it's a mix of people that we hired recently and, people that have been on board for, five to ten years. So I'm not going to spend too much time around, what is a DDoS attack because most of you know that, and you've read about that, and it's becoming a very hot topic, currently. But just in in a nutshell, a DDoS attack is when an attacker is sending unwanted flows of traffic to your network, website, or server in order to slow it down or to make it collapse. So this is how it works. It's using several vehicles and is becoming smarter and smarter.

6:09 So the DDoS market is a pretty big market. It's about 3,500,000,000. If you're looking at the on prem and hardware portion of it, which is a sector where we play, it's about 1,500,000,000. And then if you go for the sweet spot that we're addressing well, it's about 700,000,000. So that's the size of the market. The market is growing about 15% per year. And, you know, the thing that is quite impressive is the number of DDoS attack that we're seeing worldwide on a daily basis. And that's about 30,000, and that has doubled in the last twenty four months. So what we're doing with our solutions, we're doing two things. We're helping customers to protect their own networks in order to assure business continuity and SLA.

6:59 And number two, we're helping them to generate incremental revenue by selling DDoS services to their customers, to their enterprise customers. So in terms of business model, let me share with you few facts. So we are, in terms of solution, selling three types of solution. One is what we call TDS. So this is us selling to customers, you know, appliances on prem protection and, you know, could go for from 10 gigabit per second to 100 gigabit per second. And, you know, this is our main offering. We have TDD offering, which is a software that we're putting on top of the Juniper routers, allowing the Juniper customers to have DDoS protection when they're buying the the Juniper routers.

7:59 Then we have a hybrid solution, which is a combination of the TDS solution that we provide together with the new star cloud solution. And then we have a whole range of services going from presale services to installation and commissioning and all the post sales services and managed services. We address the market through three different angles. One is a direct sales approach. So this is our sales team selling directly to customers. Very important to have that to understand where the market is is going. Also, we have a number of all customers, large, medium sized customers that want to deal direct with us. So that's the first type of approach.

8:47 The other type of approach is to go through the strategic alliances that I mentioned, Juniper or GTT. And then the third one is to use, I would say, traditional channel approach. So this is resellers, value added resellers, and distributors. In terms of customer segments, so moving to the right side of the slide, as I mentioned, we are addressing six segments. We are very strong, as I said, with service providers, hosting providers, SaaS enterprise, and colocation and data centers. The way we, I would say, the way we recognize revenue or the source of revenue are, you know, a CapEx type of source of revenue. So when we're sell selling the appliances for on prem protection together with perpetual licenses, We're also selling DDoS as a service.

9:42 We're selling, you know, term licenses, especially when we're selling through Juniper. We're selling services where we recognize the revenue as we are completing the services, And we have a revenue share model mostly with GTT where, basically, we're recognizing revenue on a monthly basis when we invoice customers. So this is a snapshot of our customers' profiles and some of the logos. Obviously, we're not publishing all the logos, but you you see some of the ones that are active in the segments that I mentioned. So we are, in a nutshell, present in all the continents. Clearly, North America and Europe are the two main regions where we do our business, but we are expanding as well in Latin America.

10:33 We're expanding in Asia, and we we're starting to do business in, you know, Africa and Middle East. We are present in with customers in about 47 countries, and we acquired quite a large number of new countries over the last two years. So some of the big names at the bottom of the slide, DataBank is a is a very large data center company. They acquired Zcolo recently. We have Liquid Web as a as a hosting company, Digital Ocean, and you can read the other names. So if I was to summarize what is the unique investment opportunity around CORERO, I would say the following. So first, we are operating, as I said, on a large market, 1,500,000,000 TAM, 700,000,000 SAM.

11:31 This market is growing at a 15% CAGR. So that's a big market. In terms of technology, that's point number two. We probably have the best performance of our TCO ratio in the industry. I don't like to talk only about performance. I don't like to talk only about price competitiveness. I like to talk about the ratio, which makes it important and allows us to win business. And among the key differentiators, and we'll go into that a little bit later, first one is time to detect and mitigate attacks. We do that in seconds while our competitors do that in tens of tens of minutes or even more. We do that in a very automatic manner, and we have a very precise accurate deep packet inspection technology.

12:20 We are investing a lot in r and d. As I said, we develop everything in house, so we don't have any significant outsourcing dependencies. We're using a subcontractor for manufacturing the hardware, but that that's about it. So we have a very high level of, you know, know how expertise because we we do everything in house. For a company of size, we have an impressive list of customers or number of organizations that we are protecting. As I said, 47 countries, our customers are very loyal. There's very little churn. We have lots of recurring revenue. LR is close to 13,000,000. And, you know, as I said, we are helping our customers to protect their network and to generate incremental revenue.

13:08 On top of that, we have a very impressive level of support and maintenance across the globe. We recently got an a number of new customers very far away in Australia, and we are supplying a very high SLA and great support over there. Just to give you an order of magnitude of number of attacks that we are mitigating on a yearly basis, we did roughly 400,000 DDoS attack mitigation automatically automatically in 2020, and that probably increased by 20% in 2021. We are able to deliver and deploy our solutions very quickly. It's mostly software, but also we're planning very very well, sorry, with our contract manufacturer, the delivery of appliances when it is required.

14:01 We have the ability to scale both in terms of production of of the the hardware and the software, but in terms of reaching out to the market. Because as I said, we have three ways to address the market directly with partners, you know, strategic partners, Juniper, GTT, and also channels. Last but not least, we achieved some very good financial performance. We'll go into the details in a minute. And we've been able and for me, it's a very important KPI. We've been able to hire as a team some very strong profile in the company. And that in all the domains, we strengthened very significantly the sales team over the last year and a half and more recently adding some critical positions within the sales organization.

14:53 And, you know, it's it's very important for us because one of the main target of the company is to grow the top line. We have a very healthy p and l. We have solid gross margin. So everything that you bring on the top line, especially new business, I mean, impacts significantly and positively the bottom line and the balance sheet because we don't have any major issues of collecting money once we're delivering the equipment or solutions to our customers. I'm gonna say a few words about the highlights, but I'm sure you guys have already read the RNS. But just to show you the direction, and the direction is very positive if you're looking at revenue, if you're looking at ARR, if you look looking at profit before tax and also EBITDA.

15:43 So all is growing, all moving in the right direction. We turned around the company. We're becoming we are now profitable. We generated about 4,000,000 of EBITDA, and that's better than, you know, obviously, what we did last year. That's better than what was announced to the market in terms of guidance. And as you can see on the right hand side of the slide, there's a number of new records. I mean, level of revenue, level of gross margins, moving from loss before tax to profit before tax, level of EBITDA, level of ARR, I mean, the cash position, the net cash

16:21 position, so which is the cash without the debt. And then also, I mean, on the operational side, number of new customers, about 44. 18 of them are coming through our relationship with Juniper, which is very important. We are growing the business with GTT, and we are present in more countries. I will hand over to Neil who's gonna go through the the financials. Neil, can you can you can run the slides on your side of it? Yeah. Okay. Good. Perfect. Thank you very much. You're welcome. Thanks, Anna. Yes. Hello, everyone. Once again, let me just take you through a series of slides. Really, first of all, the high

17:06 flow and balance sheet. So as Lina was mentioning, really a year of records and and transformation and crossing the Rubicon, as I often call it, in terms of profitability and EBITDA. Our revenues were up significantly, obviously, by 24% or $4,000,000, and that that's really flowed through nicely, and I'll come back to that in a little bit more detail on that in a while. The ARR, which is great underpinned, is really moved up by 3,000,000 or so to 30 by 31%, a great underpin for all those revenues and equating that as a proportion of total revenue that that then leads to kind of a more than 61 recurring revenues, if you like, on that measure.

17:55 Overall net cash, Lina mentioned that's obviously 8.4 after the small amount of debt the business has. In gross terms, it was 11,200,000 cash compared to the prior year of 10.1. And, yes, EBITDA, very positively and actually sort of a swing really of of 5,400,000, a similar swing actually in albeit on on the different metric on to what is now a profit before tax. So that's very welcome. The the EBITDA measure, by the way, there is very much the the plain vanilla measure. We do go on within the annual board and accounts on a a similar basic delta, really, of the same, but taking out other things such as noncash further noncash costs like share option costs, FX, and loan forgiveness I'll come back to.

18:45 Just moving on then to the income statement, the p and l. We, as I say, had a a very healthy increase on the revenues there. The way our revenues are reported, like many software companies, we split those into protections of service. That's the that's the protection for hire if you like. That's around about 20% of our revenues. Maintenance support, about 30%, and then the rest really around the sort of recognition on the software and appliance related costs. The overall margins have are very healthy indeed at 85%. That follows on from about 84% for the first half as well. And so it's good generation flowing, if you like, from the top of the of the p and l and healthy through. And then we actually aside from a swing in FX that is slightly positive, and therefore, if you like, the reported within OpEx, OpEx is relatively flat. But had the FX not been in there, then it would have been slightly ahead, but still not very significantly ahead itself as benefiting from, in a sense, the the sort of lower travel accommodation type costs that you you saw as a associate of continued working on through the course of '21 in relation to COVID.

20:05 And depreciation and amortization, very little changed between the years. We continue to slightly more amortize ahead than actually adds to on the capitalization side of things. Overall, other the other movements, probably the other ones we really put out there really would be we for transparency purposes, we've, you we've shown another income there. The loan forgiveness that we received early in 2021 for from from basically, it was a COVID alleviation loan taken out through our US subsidiary available under The US CARES Act. Actually, the the government actually did actually provide that forgiveness. So it's a loan credit there, and that is adjusted for the adjusted EBITDA figure.

20:51 So overall, really, just to say, you know, since we've more than doubled revenue in the last two years since the start of since the end of twenty nineteen. We do have those high margins and and maintain control of OpEx. We do have that PPPL loan that I mentioned there, but we have had those material advantages and movements in advance advances in in the main metrics there and overall significant transformation of the business. Moving on to the cash, and here's a bridge, if you like, between the overall gross cash movement that you can see it's improved by 1,100,000. So, overall, we start with a with a positive flow of the profit before tax.

21:38 We then add back those non cash movements in terms of amortization, depreciation, share based payments. These these, by the way, are the depreciation measures across all all metrics as well. And then there's a loan forgiveness that you can see further on in terms of the the ones delta there. Overall, I suppose a couple of things to pick out. One would be, obviously, we've invested 1,800,000 in terms of d, what's been capitalized in terms of r and d, and that's the cash spend there. That's higher as we continue to invest and enhance our solution and and suite in in what we do. And overall, also, we did have a net movement in working capital, which is an overall outflow.

22:27 Aside from small movements in inventory and in debt, which really rang to top down to timing differences in receivables, On the payable side, it really reflects the outflow, if you like, that was associated with what was a creditor at the end of 2020, the preceding year, and that's where we flagged in 2021 large deal where the supplier related costs of that deal fell into 2021 even though we obviously recognized the debtor and then the cash within 2020. So that's the explanation for the movement in working capital.

23:05 Overall free cash flow generation and, as I said, an increase in overall net cash as we saw on the earlier slide. Finally, just on the balance sheet, aside from some historical goodwill that hasn't moved, development expenditure that's capitalized and on the balance sheet slightly down with the net movement of amortization over additions. Property, plant and equipment, that's really our investment that both internal and, you know, where we provide the infrastructure for the protection of service offering to our customers. Received inventory is quite low. We've talked about receivables and very little change in in that sense, obviously, higher cash. Overall deferred income is higher, reflecting really more three year upgrade add on and renewals businesses, so lots more business opportunities to come. And overall borrowings, just probably worth me just sort of touching on that. So we started the year, as you can see there, around about 2,500,000.

24:02 We did take the opportunity of an improved environment in the earlier part of '21 to renegotiate our borrowings on on equal or better terms. We then have the disappearance of if you like, of that COVID alleviation loan of about point six. And then the actual old borrowings, we repaid down about 1,500,000 in the year, leading to an overall 2.8 by the end of the year. By the end of the actual old loan itself was then around about standing at about 400,000 at the end of the year, and that in itself has now re has now been repaid as we've as we've gone past the the end of March deadline. So it's already just the old the old loans have gone, and it's just the new loan on borrowings.

24:47 And we continue to repay that to time to schedule and pay that down. Overall then, so what we're talking about here is overall net assets have increased by 1,820,000. Overall net cash has increased, as you can see there, by about 800,000 and gross cash better by 1.1. So overall, net asset values are on on the Ascendant, and we are now able to stronger balance sheet than than than certainly, much more stronger than we inherited some years ago. And with that, I'll hand back to Leonel. Thank you very much. Thanks, Neil. Alright. So the last three areas I'd like to cover before we come to the conclusion is, one, the product portfolio and the road map, what differentiates us versus our competition, and what is our strategy for growth.

25:42 So if I start with the solution, as I said, we have three ways to offer our products, either as an appliance and software. This is our TDS solution either as a software that we're adding to our router's partner Juniper. That's the TDD solution, or a mix or hybrid solution that we provide to our customers on the cloud or on prem. And if we're talking about on prem solution, we have, as CORERO, the largest, broadest portfolio in the industry. And you see here, we won't go into full details, but we see you see here different types of solutions that we can provide.

26:29 So we can provide, obviously, in line. They are all on prem, but in in line where you protect the full edge bandwidth. We can also protect only a portion of the the edge bandwidth. We can protect through the Juniper partnership, you know, with a software approach with no appliances. This is the HDDD. And then we recently launched, and that was beginning of last year, a detect and redirect product that basically allows us to detect the traffic and bad traffic at the edge level and send that to the scrubbing centers. In terms of directions and road map, so we've built a very solid platform since we started to work on DDoS about eight, nine years ago. We are obviously following the market and customer trends in terms of what's going on in terms of, you know, telecom infrastructure, five g, for instance, in terms of what's going on in terms of architecture of the networks, edge compute.

27:42 We're also looking at allowing us to be more efficient with a channel approach. I told you that channel was one of the area where we want to leverage and do more business, so we are contemplating to have a channel friendly product, and then we're looking at working in the multi edge environment, multi tenant tenancy on environment, converged platform, and a number of other innovation. The thing that I wanted to say is that we've launched about two years ago a task force around what we call, okay, what's next. So, basically, a company of size with the leading edge in technology and innovation approach that we have, we always need to remain at the edge of innovation and technology. So that's why we're always asking ourselves, okay. What do we need to do next in order to maintain that leadership? So that's a mindset.

28:39 It's very important because it it's allows us to be ahead of our competition and have something that clearly answers to our customers' needs and the market needs. The starting point of every product development is based on the market requirement or a customer requirement, and that's very important. So let me say a few words about differentiations versus our competitors. And, you know, I've already touched on some of those points. But I would say, in terms of technology, we are quicker than our competitors in detecting and mitigating the attacks, and you'll see in a minute why this is important. We are also more automatic than our competitors. So 95 to 98% of the attacks are detected and mitigated automatically.

29:33 So, I mean, that allows our our customers to have to avoid to put an army of people whenever they have a DDoS attack. When there's a DDoS attack with our solution, it's detected and mitigated automatically. The third thing is that we have a very accurate, very precise deep packet inspection technology, which allows us to detect larger tags, but also smaller tags. And then on on top of that, we have a very impressive support and maintenance team that is able to assist our customers around the globe 24 by seven by three sixty five, and I think that's very important. We are because, you know, of the profile of the company, we are flexible.

30:18 We are agile. You know, the product I was talking about, which is the ETD, the the new product we launched last year, it took us less than six months to develop the product and get our first PO around that. Would have taken probably couple years from for others to do the same thing. So why is it important to listen to the market? And, you know, I'm gonna show you few market trends regarding DDoS attacks, and I will show you why our solution, which is called the Smart Wall platform, is a great feat for answering those pain points that our customers have. So first, as I explained already, there's a a very heavy number of DDoS attacks per day, and that is increasing.

31:08 So if you don't have a system that is automatic, which is what we have, it's gonna take huge amount of resources for our customers to address the DDoS attacks. The other thing that I was mentioning was, you know, the speed of detection and mitigation. And 82% of the attacks, you know, last less than ten minutes. If you're not able to address that quick, I mean, you will miss 82% of the attacks. So if some of our competitors are taking more than ten minutes, they will miss 82% of the attacks. The other thing that I was saying is that it's important to be able to detect all type of attacks in terms of size, in in terms of type. And, you know, if you look at this number, the 97%, if you're not able to have a a detection methodology that allows you to address the small attacks, you might be missing 97 of the attacks.

32:04 And then another point around the importance of automation. I mean, once you've been attacked once, there's 29% of chances that you're gonna be attacked another time and another time and another time. So that's why it's very important to have a note an automation level that is very high. So last but not least, I wanted to share with you the strategy that we have implemented over the last two years as a company, and I will I would like to put some historical perspective into that. So as I told you, we've been in the DDoS domain for eight, nine years. So we've built during those eight, nine years a very solid portfolio of solution, you know, in house developed.

32:53 As I said, we have the best performance of our TCO ratio in the industry. We've been able to acquire some very, I mean, prestigious names in all the segments that I described. You saw some of the logos, but we have many more. And we've been able to build a very solid team of experts at all the levels, management, operational, senior management, and that's very important. The thing that we've implemented recently over the last two years as as a team, as a company, is a very customer centric approach to the business. So basically, around the customer first approach and around acquiring more new business. And, you know, as I explained, if we grow the top line, all the rest will flow naturally.

33:42 So we've been doing a number of initiatives. We've been strengthening the organizations in sales, in marketing, in operations in order to grow the top line. That's sales, that's marketing, but that's that's the that's across all the company. Operations has a very important role as well. I mean, all the other groups, I mean, line management, finance, legal, all of that, we've built a a very solid team to be able to grow the top line. One thing which has been a a key focus, and you guys understand how offering the market is is is to attract talent, to make sure that we're bringing on board the best people in the industry because it's all about people at the end of the day.

34:28 So what I'm going to share with you here is what you've seen probably in in the annual report. This is consistent with what we've done over the last two years. This is what I call the growth pillars based around the customer first approach and new business. So clearly becoming more global, clearly working more with the existing partnerships, strategic partnerships that I mentioned, GDPR, GTT, but also bringing new ones. Bringing new ones that will not be overlapping with the existing ones, but that will be in different domains. For instance, we've we've initiated and are making good progress talking to global system integrators. That could be some interesting add on to our go to market strategy.

35:15 Obviously, working more with larger accounts to increase the average value of the deals, and that we're doing directly all through our strategic partners or through our channels. Better monetize our existing services, but also introducing new services, professional services. That's very important because this is increasing the stickiness with our customers. And then in order to support that, we've been spending huge amount of effort around marketing initiatives, demand generation campaigns, bringing new marketing tools, intent based tools, you know, in order to generate more leads. Normally, when we have qualified leads, we have a very good win rate. So, I mean, it's all about increasing the pipeline, growing the pipeline, getting more leads.

36:06 And, obviously, I highlighted the importance of technology and innovation leadership, which is something that we pay lots of attention. So as you've seen, as I have explained, we have a very, I would say, startup mindset, but but with the assets of a a very established and mature company in terms of platform, in terms of teams that we've built, in terms of, you know, products that we have, customers that we've acquired, but we want to remain agile to see that as a strength, to remain flexible, and this is why our customers like to work with us. So that's basically what I wanted to to share.

36:54 I don't know, Jack, if you want to to take over and and see if you Absolutely. Work. Absolutely. And now, Neil, thank you very much for your presentation this afternoon. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that situates on the right hand corner of your screen. But just while the team take a few moments to review those questions submitted already, would like to remind you that recording of this presentation, along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Leonel, Neil, as you can see, we've received a number of questions, throughout today's presentation, and thank you to all investors for submitting their questions. If I could please just hand back to you, just run through that q and a tab. And where appropriate to do so, if you could just read out the question and give your response, and then I'll pick up from you at the end. Thank you. Thanks. Thanks very much. And, yes, there there are a number of questions, so we'll be happy to answer those ones. If you have some more questions, feel free to reach out.

37:46 So the first one is from Simon. Simon is asking if we can break down the geographic split of revenue and customers, and he he was asking if there are any territories that we're not doing any business currently and where we would like to expand. So in terms of geographic background, and you'll see the details in our annual report, and I I would like to give, like, a kind of average approach because, you know, it can vary very much between years. But if I was to look at the the last two years, so North America and The US has been the main contributor probably in the range of 65 to 75% depending on the years. Europe has been in the range of, you know, 15 to 25, and APAC has been in the range of 10%. APAC is growing significantly.

38:37 We are putting more resources there. The second part of the question is about territories we would like to do business in and where we're not doing business. So there are two two ways to answer that. The first one is, you know, we are accompanying our strategic partners. So, I mean, they might be doing business in territories where we're not, where they are active, where they want to be active, and, obviously, we'll accompany them in those territories. Then when you when we work on our own, clearly, we want to continue to grow our business in the rest of the world, so we're putting more resources. We have hired sales resources, solution engineers resources. We are hiring operational resources, people from the SOC.

39:23 We're doing that in APAC. We're doing that in Europe. So, yes, those are interesting territories. And the other thing that I wanted to mention is that there are some territories where we work with some local partners. So we don't have necessarily or full time employees there, but we have either agents, we have VARs, resellers, distributors, and we are very opportunistic in some of those territories. So that's the question from Simon. I'm looking at the question from Ryan. Thank you for your presentation and great results. In your opinion, what makes CORERO most attractive to potential new customers? So great question. I hope I have highlighted some of that in in my presentation and Neil has done in his part.

40:14 I believe, you know, there are few things. One is we have a very strong product and solution offering. We've been specializing DDoS over the last eight to nine years. We are basically developing our solutions, our technology based around market and customer requirement, which makes it a very good fit to their pain points and solving their pain points. So a great adaptation of fit between what the market needs and what we do. That that that's one. Second thing, I believe, and this is not me saying that, this is our customer saying that, we are an easy company to work with both in terms of, you know, getting a partnership with a customer, you know, deploying our solutions.

41:06 And then once it's been deployed, you know, entertaining the relationship with our customers, you know, through our operational teams, operations, getting the feedback to to the corporation around, you know, what our customers require, what their comments are, so to have a very, very interactive relationship with with our customers. And last but not least, as I said several times, we have a great ratio performance over TCO, and I think it's it's extremely important. We we make, you know, the DDoS mitigation detection and mitigation approach as something very easy to address for customers.

41:56 So that's the question from Ryan. Question from Mark. What are our priorities for the next six months? I believe, Mark, we've been very consistent in following the enhanced strategy that I described, which is, you know, growing the top line. So making sure that we have, first, all the sales and marketing resources in terms of organization, making sure that we are implementing the right marketing initiatives, you know, in terms of demand generation, lead generation, attending events, attending webinars.

42:42 That's very important. Last but not well, third point is also about making sure that a pro our product or solution or platform takes into account the new trends, the market requirements, the customer requirements, and last but not least, making sure that we have a very engaged and powerful organization. Those are our priorities. They would remain our priorities. We might have some more tactical priorities in terms of a specific product versus another, in terms of a geography versus another another. We are trying to be consistent with our strategy. We're trying to be consistent with our sweet spot, addressing the the the customer segments where we have great experience, great reference, a good win rate in order to take the or grab the low hanging fruit at a quicker pace than our customer.

43:34 You know, as I explained, we're growing faster than the market, growing faster than most of our customers. So those are the questions that I see so far. If you have some other, feel free. Otherwise, feel free to reach out, and we'll be happy to answer further questions. Back to you, Jack. Leonel, Neil, that's great. That does look like all the questions have come through. And, of course, if there are any further questions made available to us throughout the rest of the presentation, we'll make these available to you immediately after the presentation has ended. And ladies and gentlemen, we'll publish all those responses where it's appropriate to do so on the investment company platform. I'm also notified by email when these are ready for your review. Neil, perhaps we'll redirect sorry. Neil and.

44:21 Perhaps we're redirecting investors to provide you their feedback, which I know is particularly important to yourselves and the company. If I could just ask you for a few closing comments to wrap up with, that'd be great. Thank you. Sure. Thank you. Thank you very much. So the way I would like to summarize our discussion today is as follows. So as you saw in the numbers that we published earlier on this week, we have done, I mean, over the last two years, I mean, a strong financial and operational performance. So in terms of revenue, in terms of gross margin, in terms of ARR, in terms of profitability, EBITDA, that has been supported by the strategy that I described, I mean, customer centric approach, around new business.

45:10 We became profitable in 2021, which is very important. The the thing that we've done as well is we've we've met or we did beat the market expectations, and that's important. So looking at the future, number of things I'd like to say. The market that we are in is a very hot market, growing market. I think the performance that we've shown over the last couple of years is better than the market growth. So I was mentioning a 15% CAGR. Mean, we've doubled the size of the business over the last two years, so we're growing quicker than the the the market CAGR. We do we're growing quicker than our competitors. We have a very strong solution. We have a very attractive TCO.

45:56 We've built a very solid organization. We continue to invest in the business. That's very important because we we're not here to, I mean, perform a couple years. We want to perform sustainably. So and we've built a solid pipeline. So, clearly, we expect to see further advances in 2022 and in in the future years. So that's how I would like to conclude. Thank you again for your interest. Thank you for your questions, and thanks, Jack, for inviting us. Thank you very much indeed. Leonel and Neil, that's perfect. And thank you very much indeed for taking the time to update investors this afternoon. Could I please ask investors not to close this session? It should now be automatically redirected for the opportunity to provide your feedback in order the management team can better understand your views and expectations.

46:48 This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of CORERO NETWORK SECURITY PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good afternoon to you all. Thank you, everybody. Thank you.