Fadel Partners (LSE:FADL) — Annual Results

0:00 Good afternoon, and welcome to the FADEL PARTNERS investor presentation. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the management team. Tarek, good afternoon, sir. Good afternoon. Thank you for having us today. So welcome, everyone. I'm Tarek FADEL. I'm the CEO and founder of FADEL PARTNERS, INC listed for the last three years. With us, we also have Mark Plotkin, our CFO. We're both based out of the New York City area, and I would like to welcome everyone. Today, we'd like to go over our 2025 annual results presentation.

0:51 I'll be speaking more about the operations, the strategy, the product releases, and Mark will then be taking us through the financial results, and then we'll open it up for q and a. So let's get started. Just to reorient everyone, FADEL is effectively a SaaS software provider that is developing AI enabled licensing and copyright compliance platforms. Our platforms have been running at some of the largest blue chip accounts in the world, helping companies solve their the complexity of their licensing business as well as helping them account for all of the royalties that are due coming out of those licenses that they're granting.

1:52 We are headquartered in New York. We have several locations around The US and Europe. We're a 120 people strong with low turnover and really long over twenty years industry experience, specifically at the intersection of IP licensing and technologies. We as I mentioned, you know, we work with a large plethora of accounts. The company came from a background of dealing with blue chip clients such as Hasbro and Disney and Marvel and Coke and Montreal, etcetera. And the the this last eighteen months, we've also been focused on taking our expertise and our software down to the mid market to address a much larger TAM, and we'll be talking about that shortly.

2:47 We've been partners with several of the large systems integrators as well as technology providers. The last couple of years, we've done quite a bit of work with companies such as Adobe, AWS, and Oracle. And I'll talk a little bit about that as well. On the financial side, our ARR has been growing consistently. And since I since 2023 till now, the ARR has been up 61. And our industries that we focus on include consumer goods, publishing, media advertising, and high-tech and gaming. And really, the IPO a few years ago provided a platform for us to not only organically grow outbound sales and marketing activity, but also provided an ability to further invest in our technology and continue to build out capabilities in our platforms.

3:53 And so we've expanded into new geographies into Europe very well, and we've also expanded the number of industries that we service. And the last eighteen months have been also spent on leveraging a lot of the AI technology that's come to market and in including that in our platform which we'll also talk about. So the company has been focused on the licensing space for over twenty two years now, and we've deployed our solutions to over 300 brands globally. Many of our clients have multiple brands within underneath the same umbrella, but we are across a multitude of brands even within the same conglomerates.

4:41 And you'll see a nice spattering of accounts in different industries, whether it's publishing or media and entertainment or consumer goods or gaming, as I mentioned earlier. So the company offers three product lines. IPM Suite is really focused on automating IP rights and royalty management for both the licensor, the IP owner, and the licensee, the IP user. And we provide we now provide solutions for both sides of the spectrum, both the IP owner as well as the IP user. We also offer a product offering called brand vision, which really ensures brand compliance while content is being used for marketing purposes.

5:36 And so here, you'll see a lot of our consumer goods clients that have large marketing spends and hire big talent, whether that talent is photography production models, athletes, actors, etcetera, to represent their brands. And they have a lot of usage rights associated to those uses. And then the third product is PictureDesk, which is the product we acquired in The UK about three and a half years ago now. And that really is focused on providing content for editorial teams within magazine news publishing and broadcast publishing.

6:23 And it's a content aggregation platform that is very strong in scaling security, the management of images and videos. We'll focus a little bit about our IP management suite product. This is the flagship product for the company. There's multiple capabilities. You can really think of it as the ERP platform for the licensing space. And what it does is it really helps companies manage their licensing ecosystem. So from the the focus on the complex contractual terms that are associated in licensing deals all the way to the complex royalty revenue accounting and expense accounting side.

7:13 So it's an end to end platform that our customers look to use that to help them not only manage their deals and their deal flows, but also whether it's their payment obligation or their payment receipt. And then around the edges of those types of products, we have, you know, the digital asset management capability, a newly released product approvals capability, a forecast management, and a book ended also with a licensee portal that allows licensees to interact with our customers and advanced AI based analytics. So the the platform has really been tried and tested. It's been rolled out across many large brands globally.

8:02 Typical enterprise type deployments for us will include multiple business units, multiple currencies, multiple language type agreements, accounting in multiple currencies and different revenue recognition schedules. And as we started going into the mid market, we've also preconfigured our software, and I'll talk a little bit more about that. And the same software that has been really really tried and and scaled, if you will, with our enterprise clients was basically scaled down by us to allow for also the mid market to to make use of the same types of capabilities that the software offers. The this the last eighteen months or so, we brought a package to market that allows us to open up really the the small and mid market growing licensee base.

8:57 And we we brought to bear a product offering, which is really a preconfiguration of our IP management suite, same product code base. And that allows us to deploy our solutions in a multi tenancy fashion in our cloud. So lowering the overall hosting fees as well as getting the product deployed to our customers faster. We're talking, you know, two to three months as opposed to a six to twelve month implementation cycle. And so we've spent a lot of time effectively simplifying what our enterprise deployments look like on the same code base and multi tenant enabling it and then creating a consulting methodology that allows us to deliver really a a high end platform for that mid market and small market of licensees where thousands of licensees exist.

10:03 Why is this critical? So post IPO, the company was looking also to grow its TAM, its addressable market. And we found that we've historically focused on working with licensors who are, you know, the likes of Hasbro and Disney and Bandai and Marvel, etcetera, and servicing their needs initially. And in doing so, we built a very capable and scalable platform for licensing. And we looked just beyond the the walls of our of our customers, if you will, and also realized that we can also service their customers who happen to be the licensees.

10:50 And so these are companies effectively that are responsible for producing product, t shirts, hats, toys, etcetera, that are licensing from the large licensors characters and and putting those characters on their products and selling them. And there's a whole approval cycle that has to happen in the middle before these licensees can sell their products. But effectively, the addressable market for this particular use case is about $370,000,000,000 in licensed retail sales globally. And so these eight to 10,000 licensees around the world are responsible for selling products in the magnitude of $370,000,000,000.

11:44 These same companies end up paying $21,000,000,000 in royalties back to the licensors. And so that global royalty revenue, what we call the cash in motion, is really what our platform can track. And the market size is roughly eight to 10,000 unique licensees, manufacturers that are managing 22,000 plus active agreements across the board on an annual basis. So we looked closer into the verticals and to look to see, you know, which which are the most apparent verticals and the bigger verticals within the licensee categories. And you'll see the the top six verticals that are coming up are apparel and footwear, toys and games, sports, fashion, home digital, etcetera, and food and beverage.

12:38 And the the dollar sign next to them is the actual amount of royalties that are attributed to those industry verticals. There is some double counting here because the way the statistics work here is that you could be in two categories. And so you could be, for instance, a a sports heavy licensee, but you're also an apparel and a and or a fashion or a toy toys and games. And so I just wanted to point that out. But the the theme is the same, which is this is the way the largest categories break out effectively in the form of a royalty payout process. So we've been spending quite a bit of time on the top three categories, apparel and footwear, toys and games, and and sports, and I'm happy to report that we've managed to close deals in all those verticals.

13:32 And what's interesting for us is now that, you know, we're getting pulled into other verticals outside of media entertainment, publishing, and marketing where the company really spent a lot of its time in pre IPO. And now we're working with mid market licensees, for instance, in the apparel industries and in the toy industries and in the sports industries and the fashion industries, even in the food and beverage industries. And it's a it's been a great growth, you know, perspective for the company. Where we see the mid market opportunity really is in that what we call the power 500 advantage. So when you look at the the detailed breakout of the TAM, 500 of these 10,000 licensees control about 65% of that revenue.

14:25 And so our platform solves their massive auditing complexity. So the there's a high degree of complexity in terms of being able to properly track your sales, track your royalties associated to those sales, and do it in a way where you're properly reporting back to the licensor and ensuring that you're audit proof. And many of these licensees don't have automated systems, so it truly represents a SaaS greenfield opportunity here. The the nice thing also that the contract velocity is increasing. There's a 40% increase in the agreement volumes that necessitates automated systems over these manual spreadsheets that we're replacing. And digital transformation is kicking in, and the the management software market in this space is expanding annually at roughly 11%.

15:20 So we really believe that we are well positioned, especially with our AI driven licensing systems today, to capture a significant portion of that $21,000,000,000 consumer products royalty economy. And there's a large addressable market, eight to 10,000 companies that are currently managing these calculations and have reporting requirements and are looking to get off of manual processes. And so we're really capturing a mission critical friction point in this global licensing supply chain. In terms of sizing the opportunity, you know, we looked at average deal volumes across the mid market and and and as well as the the small market. And so if we look at the types of customers that we've sold to over the last eighteen months, they they are ranging anywhere from $10,000,000 in annual revenue up to $400,000,000 in annual revenue. So in the enterprise software space, these are usually called the SMB market, the small and mid market clients.

16:30 And on average, we're averaging across the board, the small to the mid market, about $4,040,000 dollars in in annual contract value. Of course, some of the larger mid market clients, clients that are in that 2 to $300,000,000 range are paying north of a 100,000 in ACV value for the software. And clients that are closer to that $10,000,000 range are paying closer to $10,000 in ACV value. Their deployments are quick. They the sales cycles are quick within, you know, three to four months. And usually and more often, you know, there aren't really RFPs that are being released as much as we would typically find in the enterprise market.

17:19 And so when we look at just the market penetration rates and incremental ARR that that can help drive for the company, that'll range anywhere between, you know, 3,200,000 on the low end all the way to 40,000,000 on the high end, and it's obviously somewhere in between. But that's all incremental to the TAM that the company has actually been chasing in the enterprise media publishing gaming spaces and is very much SaaS enabled in nature. And so we're very excited over this incremental opportunity that we've we've opened up for the company. You could see also in terms of the new logo activity, you know, these are companies that we've brought on to the platform to the IPM platform over the last twenty months or so that, for the most part, all fall into that mid market, small market category.

18:19 And they're across the board, you know, everything from gaming, collectibles, apparel, toys, food licensing, mint, Royal Mint, both of New Zealand, Agoro, and of The UK have both signed up as well because they also license in characters to print on coins. And so we are very excited over the space, over what it represents, and the fact that it's a very repeatable sales process, marketing messaging, outreach programs, as well as deployment aspect. And so we think we found our stride in terms of ensuring that we have a highly repeatable type of sale process and delivery process here.

19:10 We'll switch over to brand vision, and we'll talk a little bit about that as well because there's been quite a bit of great news there. We brand vision at its core started with the notion of managing licenses and and usage rights for marketing content. So we took the whole concept of the PM, but brought it to the marketing space as well. And we are working with brands to help them track their talent and rights agreements that are coming out of their marketing campaigns. So if I'm L'Oreal and I sign up a particular brand ambassador and I now need to start using their images and videos to market my properties, let's say, my makeup or my hair products.

20:00 All of those agreements come into our system, whether it's directly from the L'Oreal team or from their agencies. And we basically track all of the usage rights associated from those agreements back to the digital media, so to the images and to the videos directly. And so we help them manage things such as what can we actually do with this content and where can we safely use it through our digital rights management and and rights clearance checking process in our cloud. But then also, we've added an AI driven content tracking system that not only allows the marketing teams to understand what they can do with the millions of images and videos that they're they're already managing, but also when they actually execute their digital campaigns, we track where that content lives on social media, on ecommerce sites, on websites, on partner sites, etcetera, and ensure that that content isn't expired.

21:05 And because a lot of these brands, as you would assume, are getting actually sued by whether it's the record labels or the talent directly or the talent's agencies directly when expired content is still being published. And so it becomes a big problem, especially for the consumer goods companies because they spend a lot of money on contact curation and on high end content agreements, which also means that their exposure is a lot higher. And so we help solve that problem with brand vision both on the digital rights management side, but also on the content tracking side. So when you look at also what we've done over the last twenty months or so with brand vision, we've added quite a bit of large logos, mainly consumer brands companies that are, you know, across different industries that are now also leveraging our capability and integrating our brand vision solution into their digital asset management infrastructure.

22:15 And we keep doing more of this, and we also are getting involved in quite a bit of content tracking opportunities now where customers are asking us to safeguard their brand reputation and continue to track their images and logos and expired content. And so we're having a lot of also content compliance type opportunities that are coming at. I'd like to also touch a little bit upon our AI strategy. You know, we we jumped on the AI bandwagon very quickly. We as a company, we have had AI enabled technologies really in one of our solutions in brand vision since 2021, 2022 where we were using an early version of AI technology to help us track and identify and match images and videos.

23:21 And so image to image, image in video, video to video matching. The last eighteen months, we decided, obviously, as AI was really taking over the world in a sense, we decided to start testing several of the available AI platforms in the market and to see, you know, what makes sense in terms of fitting in AI into our existing platforms, both IPM as well as brand vision, and figure out how do we really benefit our users and make them more productive from this newer technology. And that was really the whole premise behind what we were looking to achieve.

24:08 And so we spent a lot of time with a lot of the existing models from Anthropic, from OpenAI, from Amazon, from Meta, and we looked to see which solutions are the best in terms of the use cases that we're looking to adopt it for. And so we did two things. One is we started using AI in our r and d teams, and we've enabled our entire development and QA teams with Copilot licenses to help start having the AI do code reviews, having the AI assist with making the user the developers more productive, etcetera. So we went full in on the technical side first, and then we started reviewing the existing MLs for user solutioning.

25:04 And we also ended up signing up with AWS on their AgenTik AI platform as our core cloud deployment platform for AI agents. And in doing so, we brought multiple new solutions to market that are really embedded within our products. Some are licensed directly. Some are just, you know, enhancements to the core product offerings to make a user more productive in our system. But we brought four out of the five that were, you know, newer AI capabilities all in 2025. And they range everything from agents to review product submissions on behalf of users, making the user at least two or three times more productive in, you know, in working through their work queues.

25:58 Contract ingestion agents where we've selected, in that case, Claude to be the ingestion agent, but that that's been highly trained by us specifically on licensing agreements. And we've also brought together a business insights platform in partnership with Amazon that allows us to AI enable all of our analytics, dashboarding, and predictive modeling capabilities in the platform, all integrated into IPM suite and, you know, now using natural language prompts. And so when we look at the world we came from over the last twenty years, all of our clients would need, you know, business intelligence, business insights, but it was always a big lift because it was all programmatic.

26:52 And so now what we've done is through this integration, we've given the business users the ability to just use natural language prompts in any language of their choice because we have, you know, multilingual clients to actually query the data, create dashboards, create executive reports without having to to learn or know a single line of code, which has been tremendous in terms of user productivity and adoption. And so those are all been integrated natively into our platforms. And then last but not least, we've also released AIVA Intelligence, which is an AI chat assistant that provides real time information on all of the licensing agreements that the licensing team is working with. And so you can, through your chat interfaces, very specifically ask questions about the licensing agreements and contracts that you're using and compare them to each other. And where that's going is that in the next iterations throughout this year, it's also going to marry transactional information with contract information and deployed safely and securely within our clouds.

28:05 And so there's a lot of excitement around this from our existing customers, our new customers, and from our own employees because we're getting to, you know, use new technologies that are super useful, super helpful. But, also, we're taking the guesswork of which are the better technologies to use in the space away from our customers having to guess and and interpret. We're doing that on their behalf, and then we're integrating it natively into our platforms. So very exciting things happening there. I'll move into our operational financial highlights. Really, we just looked at querying, you know, all the things that we've done since the IPO back in April 2023.

28:54 And so we've continued to do product innovations and releases on the content matching and tracking front, bringing licensee and IPM suite to the mid and small market offerings, embedding AI into all of our technology releases, and then launching a new product approval module for licensors for brand compliance, and then continuing the creating and offering quarterly releases across our three product lines. We've got a lot of technology innovation that's been coming out of the company that will continue. We've also had a sales and marketing and and alliances alignment process. So we now have a dedicated BDR inside sales team. We've put in new systems for pipeline sales management.

29:42 We're using a lot of AI enabled software from other vendors like Clay and SalesLoft and Salesforce in our outreach and lead generation processes. We've put a dedicated CSM function in place, and then we've launched a new website. We've added new partners, and we we've now been attending new events. And so we're, you know, we're we're pushing sort of all all boundaries there, and we're seeing that really reflected in our pipeline. And then also throughout the last couple of years, we started a new office, new r and d office in Amman, Jordan that's now staffed with 14 people that's allowed us to also leverage lower cost development expertise, in particular, in AI out of that location.

30:41 So what are we seeing in terms of results so far? So really from the tail end of 2022 into 2025, we've seen a 61% license ARR growth. We are hitting now top line sales metrics, and Mark and I are both very focused on ensuring that we're really looking to to continue to hit the SaaS metrics. But we're at last year, we're at 14% license ARR growth. Our NRR is at a 102%, and our GRR is at 94%. And our license gross profit margin is at 84%. We increased our customer accounts, so we brought in over 20 new customers in that 24 period, and we're decreasing our ARR and revenue percentage from our top five customers. And so those are the things that we're continually focused on doing.

31:40 And in doing so, you'll see that there's a transition in the company's revenue lines from being when we first came to market, we were roughly fifty fifty split between license and services. And now that's gone up to more than 70% to 30% license and services. And so our objective is to continue to to grow the license revenue track. And what we are seeing is as we're starting to do more in the mid market, obviously, there's been a drop in our services revenue. That's to be expected. We we think that's going to continue, but that's actually a positive thing because we're moving into a full SaaS market where you don't need as heavy services to implement the client. And so standard deal for implementation in that mid market for IPM is under a $100,000 over a two to three month period as opposed to in the enterprise, it's between 500,000 and $1,000,000 and over an eighteen to twenty four month period.

32:53 So that's not to say that we we are not continuing to respond to enterprise opportunities, but really the main outbound focus right now has shifted to from IPM to be in that more mid market segment. And so we do think that that's gonna continue to help us grow the license revenue component faster than the services revenue component and with a real management intent on getting to north of 80% in revenue from licenses and 20% from services in the future. Last but not least, we, you know, just wanted to touch a little bit upon our partnership strategy. So we've expanded our relationship with AWS in in late twenty twenty five, and we've signed up as an AWS marketplace partner, agentik.ai, and ISV accelerate partner.

33:53 And what that means is that our product offerings are now listed in the AWS marketplace so that when AWS clients can buy off of their private pricing agreements with AWS, our products, which means that we don't have to fight for budgets if the client already has a private pricing agreement with AWS that they can purchase and use that to purchase our software. In addition, we've leveraged that partnership really to train our developers on the AgenTik AI platform, and we're also using their platform to deploy our AI agents securely and scalably in in the cloud. We've also strengthened our Oracle partnerships, and we launched a new partnership with NetSuite last year.

34:47 And as we get into more of the licensee mid market world, we're seeing a lot of those types of companies actually using NetSuite ERP. And so we already have two clients where we've integrated our IP management system with NetSuite. And we're now building a NetSuite connector that will sit in in the NetSuite SDN marketplace that customers will be able to buy and then use that to integrate our software directly with NetSuite out of the box. And so that's being released in early q three this year. And then we've all we're also been working with the Oracle Media and Communications US based vertical that has, you know, obviously, very strong ties with the media entertainment and publishing industry.

35:37 And we're positioning our software as a key enablement technology within the Oracle Cloud ERP world that allows cut their customers to manage licensing and royalties and integrate to Oracle ERP. So we've been spending a lot of time on both those partnerships as well. On the brand vision side, we continue to do partnerships and and work joint, you know, opportunities with the main enterprise digital asset management vendors. And to note, you know, we've been working closely with Binder and Adobe and Noxio and OpenText and the Primo, etcetera. We have native connectors into their platforms, and and we continue to manage those relationships. So as you can see, you know, we've been very busy over the last three years getting to where we are, and we're very happy with the progress that we've made so far and with how we've positioned the company and, with a key focus on, you know, getting to profitability, over the next year.

36:43 And, at this point, I will, hand it over to Mark. Thank you, Tarek. So turning now to our financial results for the year ended 12/31/2025. This has been a year of continued operational progress and improving financial discipline. While we remain focused on growing our SaaS revenue, we also have taken meaningful steps to improve profitability and efficiency across the business. Looking at our headline numbers, revenue for the year was 12,600,000, which is a modest decrease over the prior year, reflecting our strategic shift away from our lower margin services work. Encouragingly encouragingly, our core SaaS metrics remain strong.

37:32 Our licensing ARR grew by 14%, as Tarek mentioned. Our gross margins were high for licensing revenue at 84%, and our overall gross margin improved two percentage points to 64%. And importantly, we delivered a significant improvement in profitability. Our adjusted EBITDA loss reduced to 700,000 compared to 3,900,000 in the prior year, and our net loss before tax narrowed to 1,400,000 for 5,000,000 last year. We ended the year with 1,900,000 of cash. Overall, these results reflect the business that has become more efficient, more predictable, and increasingly driven by high quality recurring revenue. As shown on this slide, our lace licensing AR has grown consistently since our IPO in '23.

38:22 Our AR has increased 61% and reached 8,900,000 at the end of twenty five. Our ARR grew by 40% in '25, but importantly, our retention metrics remain healthy. Our NRR is a 102%, and our GRR is 94%. And this demonstrates both the resilience of our customer base and the increasing value of our platform with our existing customers. Looking in more detail at the income statement, our revenue trends reflect our strategic repositioning. Licensing and support revenue increased by 3%, while our services revenue declined by 13% as we focus on the more scalable mid market SaaS opportunities where implementation projects are shorter in duration.

39:09 Much of our ARR growth occurred in the fourth quarter, which positions us well for '26, which will benefit from the full revenue impact of this new ARR. From a cost perspective, our gross margin improved due to the higher mix of licensing revenue. Our a r and d cost decreased by 11%, and our s g and a cost decreased by 32%. These reductions are primarily the result of the restructuring actions taken in late twenty twenty four and further refined in 2025. As a result, our adjusted EBITDA loss improved 82 year over year. Overall, this reflects a deliberate shift towards a more scalable and operationally efficient model. Turning to our balance sheet, our working capital declined by approximately 800,000, primarily due to the cash used in our operations.

40:03 We saw a 300,000 increase in AR and unbilled work in progress driven by higher levels of renewals and new business towards the end of the year. Deferred revenue also increased by 500,000, which is positive indicator of future revenue visibility reflecting our new deal signed in late twenty twenty five. Overall, the balance sheet movements are consistent with the business that's continuing to grow its recurring revenue base while managing near term cash carefully. Finally, on our cash flow, as is typical in our business model, timing differences play an important role. Movements in billed and unbilled receivables are influenced by the timing of renewals and delivery of professional services.

40:50 In addition, our commissions are capitalized, but we pay those commissions out once the deals are signed and invoiced, and that creates a timing difference between when those commission expense goes to the p and l and when it hits our cash flow. Our line of credit with Bank of America was fully repaid during the year. We did a small borrowing at the end of the third quarter and repaid that in the beginning of the fourth quarter. Looking ahead, we believe that our operational performance will generate sufficient cash to continue to fund our operations without requiring additional external funding. And that brings us to the end of our presentation. Thank you both for updating investors today. Could I please remind investors to submit your questions just by using the Q and A tab situated on the right hand corner of your screen? For your reference, a recording of today's presentation will be available in the Investor Me company platform shortly after the meeting has ended.

41:45 Guys, as you can see, we received a number of questions during today's presentation. If I could just hand back to the team to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Yes. Thank you so much. So the first question is, what is the risk of mid market expansion cannibalizing higher value enterprise deployments? We don't really view them as one cannibalizing the other. Really, they're they're different client bases. Traditionally, the the enterprise deployments have been in a combination of media entertainment and publishing for the company.

42:30 And so it's a bit of a different client base than the licensees. And so when you think about, you know, the company doing a lot of work at a publisher, the publisher doesn't really, you know, effectively work with any of the licensees on the mid market front. And so we really think of them as effectively two different go to market opportunities and deployment cycles. And so we there's there's rarely any overlap between the types of customers that are buying in the the enterprise versus in that mid market client that we're going after. Second question, what's the long term long term target gross margin for the business, and what revenue mix would be required to achieve it.

43:23 So today, we're at a 64% gross profit margin. That's for the entire business. We are looking to get north of 70%. We think that's achievable. As we mentioned earlier also that the gross profit margin on the license side of the business is at 84%. And so one of the things we're looking to do is as we look to continue to increase the license revenue away from the services revenue, that's also gonna help with increasing the gross profit margin overall for the business. And, you know, we've also done quite a bit to lower our overall expenses over the last fifteen months, and that's gonna also help shore up that number as well. We're on the right track for sure.

44:20 Another question. What competitive pressures are emerging as AI lowers barriers to entry in content governance tools? Great question. So what we're seeing and what we're finding is that, you know, obviously, everyone's looking at AI. And in in the enterprise client side, the AI is being used within our client base, especially in brand vision across the board for today for generative AI capabilities. And so companies that are doing a lot of marketing are also using generative AI to generate new new additional marketing content. For the most part, a lot of that even AI generated content still needs to be licensed and still needs to be, you know, managed fuel through a digital rights management capability.

45:17 And so what we're seeing is, you know, on the contract management side, AI is being used for productivity gains, if you will, in terms of better understanding, you know, what's in the agreement, what's not in the agreement. Where it's falling short really is how does it tie back into your enterprise workflow? And so it's easy for a person to just use, you know, a chatbot and then load up an agreement and says, you know, do I have the rights or do I not have the rights? But then how do you marry that information back into your overall digital asset management usage, your multiple agreements that are all tied together, finding the common denominator between them. And so while AI is penetrating in certain areas, I would say, and and helping the users be more productive in what they're doing, there's still a big missing component of use case orchestration, which is what really our products offer.

46:20 And in our case, we're actually embedding some of that same AI directly into our application. But one of the things that we add on top of that is that business process orchestration that AI just doesn't provide. And so there's been a lot of questions that we've been getting as well, as you can imagine, over, you know, AI cannibalizing SaaS software, and I just don't believe that that is the case. I mean, we're not seeing it in our pipeline. That's for sure. We're seeing a pipeline growth, and we're seeing a continued pipeline growth as we actually included more AI in our capabilities. Because our users want to use AI in a very productive way to make them more efficient, to make them more productive, maybe to have, you know, less users having to manage business functions, but, you know, that doesn't do away with the the SaaS solution. Right? That just if the SaaS vendor lit knows how to embed and integrate security and safely and and keeping data privacy and governance in mind, which are very big topics that you don't hear about when you hear all the AI buzz that are difficult to achieve.

47:37 You know, I think the SaaS world is, at least the spaces that we're in, are quite secure in that sense because there's a lot of enterprise integration that is that is required on that side. Thank you for answering questions from investors today. Before we ask investors to share their feedback, which I know is particularly important to the company, Tarek, could I please just ask you for a few closing comments? Yes. Absolutely. So thank you again for attending the presentation. We are very excited over the space that the company is in today. We feel that we are really executing, you know, on our strategy. We also feel that we've opened up significantly new large addressable market that we're very well positioned to go after and continuing down the path of really ensuring that we're operating with as much cost efficiency in mind while continuing to bring new innovative capabilities and products to market has been a really healthy mix for the company.

48:48 And, you know, we we hope to see you all again same time next year when we can be updating you on the 2026 results. Thank you both once again for your presentation this afternoon. Could I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team of FADEL PARTNERS, we would like to thank you for attending today's presentation, and good afternoon to you all.