Getbusy (LSE:GETB) — FY21 results

0:01 Good afternoon, ladies and gentlemen. Welcome to the GETBUSY PLC full year twenty twenty one results investor presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time using the Q and A tab situated on the right hand corner of the screen. Just please simply type in your question at any time and press send. The company may not be in a position to answer every question received during today's meeting. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, we would like to submit the following poll. And if you would give that your kind attention, I'm sure

0:32 the company would be most grateful. And I'd now like to hand over to Paul, our CFO, and Daniel Rally, CEO from GETBUSY. Good afternoon to you both. Good afternoon, and thank you everyone for taking the time and going through GETBUSY's FY 2021 results with us. Let me start by introducing myself. I'm the CEO of GETBUSY. I was the founder and the catalyst behind the demerger from a publicly listed company in Australia called Wreck Unlimited. I've been CEO since 2017 and enjoyed the journey ever since. And with me is Paul Howarth. He is the CFO. Also joined at the time of IPO and has been through the GETBUSY journey basically from day dot.

1:23 We're gonna start this presentation by talking through our strategy. And for those that have seen it before, it's a it's more detailed version of that and a more progressed, mature version of it. And for those that it it is new for, hopefully, we you can get a good indication of why we think we've got such a great opportunity for the GETBUSY business. GETBUSY's mission is to make people productive and happy. We sell software to businesses, and we're a software as a service company. And to us, productive and happy actually means something tangible. And productive is about reducing the admin burden that a lot of firms are bogged down by. And happy is about supporting our customers with their ability to communicate more effectively, both internally and externally.

2:18 And communication comes in many different mechanisms. It can be as we commonly know it in terms of swapping of information or or or just through text, but it also can be through the ability of people to sign documents easily, or it can be in the ability of someone to be able to find a document on behalf of a customer really quickly. So productive and happy is a meaningful value for us, and it's what we focus on day in, day out. And and it it it very much is the guiding motto and philosophy in which we run our company. GETBUSY's investment case is stronger than ever. We are the market leader in document management for accounting firms.

3:10 Over twenty twenty one, we were able to evolve and mature our offering beyond just document management to accounting firms into productivity services for professionals, financial services, and ERP users. So we now have a much broader capability set, which is open to greater addressable markets, therefore creating a lot more opportunity for us as a business. And we're doing it on the back of proven success in the accounting and professional service markets through our core products of virtual cabinet and smart vault. There is compelling market drivers that is solid headwinds for our growth. There is a lot of macro trends, which Paul will talk to later in the presentation, which is accelerating buying adoption of our customers.

4:04 It's we've got a very scalable operational model, and that into and our high quality clients and high quality requiring revenue is a very strong platform for us to continue to grow. So our customer acquisition model is very scalable and repeatable. It's also very understandable from a financial perspective, and therefore, we're very clear on what our return on investment is. And we have a very highly motivated team that is keen to realize the potential in which we've got. The business at the moment is on a solid platform, and 2021 results was really good. We we were very happy with them. We achieved 15.8 in ARR, which is a 16% year on year growth.

4:51 We're at 93% recurring revenue, which is definitely in the top quarter of of AIM companies. We have only over 70,000 paying customers. Our net revenue retention is 99.8%, which shows just how sticky we are and how much value we add for our customers. And we've got a 136 rock stars that work for us, and there's a whole lot of experience. We've been selling these products, productivity software into our markets for well over twenty years. And so sitting within our team is a whole lot of experience which creates significant competitive advantage.

5:31 Our 2021 was very pivotal, as I said, because we evolved from a document management business into a productivity software company. And for us, that just opened so much additional opportunity. So what we do is we've always been focusing on initiating work initiating work through to completing work. So initiate, manage, and complete work. What we've always been focused on is sitting on top of the core operating systems in which mission critical software in which our our our customers and prospects use and adding a productivity layout on top of that. So their mission critical software may be their ERP. It may be their tax system, their practice management, their CRM.

6:18 Then what happens is they generally create work, and that work often comes in the form of documents. And then what they need to be productive with that piece of information. They need to be secure. They need to be safe, And that's where we come in. We we enable them to put a task around that or chat or if it's a document easily, file it or search it. If they need to share it with the customer or get that esign, that's a core offering and what we've done extremely well over the last couple of years. In 2021, we expanded that into additional capabilities and additional productivity services, And they came in the form of appointment booking, proposal and quotes, request file request list, evoking, digital management, and deeper integrations into more providers. So through 2021, we just extended our capabilities and therefore our opportunity.

7:20 Our brands are really well trusted and loved in the markets in which we sell into. So our 99.8% retention rate proves that. A constant customer feedback shows just how valued our applications are in terms of their day to day work. We have significant brand equity and value in our core markets. So specifically, smartphone and virtual cabinet, they've built up brand value through the last fifteen, twenty years, and and that that brings about growth in itself. And we are the seen as the leading provider of document management to those markets, and and so we regularly get referrals from accountants to other accountants or financial services to accountants or or many others within the ecosystem.

8:15 So we've got all these broad capabilities, what we do is we sell them through market leading brands. The capabilities are not unique across the businesses. So SmartVault needs to do esign. Virtual Cabin needs to esign. Work here needs to do esign. Certified Vault needs to do esign, but they are focused as brands into different markets so that we could brand build the right brand equity, and we can build the right material and and specifically educational material towards target markets. So we specifically talk to them and so that they understand how we add value on top of their mission critical software. So the core capabilities of the applications differ slightly, but broadly are the same productivity focus.

9:03 And we're very focused on building up brand recognition and inbound scalable inbound model on the back of the brands we've got in the market and the offering and and and and, those market share that they've already created.

9:28 Productivity software is not a unique space. There's lots of providers that sell into it globally, and, you know, there's some well known providers in the document management space such as Box and Dropbox or in the workflow space with signer or Basecamp and so on. So the question we often got get is, you know, how do we how are we successful? How do we compete with these larger providers? And and how we do it is we build value to specific target markets. So as I said, accountants, financial services, ERP users, we deeply integrate into the workflow and create value that other third party generic providers don't have. ERP is a perfect example of that with Work Hero. So we were so successful in creating value through smartphone virtual cabinet into the accounting channel. We went, well, in corporate accountants, in practice accountants, they also need that kind of value and current ERP third party providers are not deeply integrated and providing the value in which those those people need.

10:35 So that's why we've we've expanded our offering into that space and believe that produces significant return for us. So around this deep integration, we build inbound models. We we build strong partnerships. We really engage with the ecosystem. And we innovate specifically for this market to make sure that not only are our productivity capabilities the best, but the productivity that that specific clients need, we we win in that. And then around that, we can we can really create value through influencers, through association bodies, through educational content because we deeply understand these markets and can sell into them because of that. What you'll see on this slide is is the type of integrations we've got. So I'll pull out a couple. NetSuite is one I I spoke to earlier.

11:32 You know, Iris sees Intuit in The US is a is a large market, and we've been very successful selling into that client base. IPS is a new one in The UK, which we're building a great relationship with. TaxCalc is another example in The UK, which we've got a very good relationship with. So we we partner with these providers. We deeply integrate into them. We use their ecosystem and network to sell to their clients, and we also sell directly to them. And we can do all this because we've got such a breadth of experience in our team. We've got over twenty years of doing this. We invested a lot in our products, and we did a 114 product releases in 2021, which shows you how quickly we're moving and how how much we're innovating.

12:22 Good stuff. Thanks, Dan. So just looking at the size of the market we're in, we split that market into really the three main verticals we're in. So professional professional services, which includes accounting, financial services, which includes asset finance, and the the cloud enabled ERP space.

12:44 Professional services and financial services are constrained by geography. So the reason for that is a lot of the key products with which we integrate have a very geographical focus. A great example of that would be tax software where, obviously, tax regulations are very different in different territories. So you tend to find different tax software providers are are stronger in different territories. So within those those verticals, we've got about just under a £2,000,000,000 ARR opportunity within that. It's important to say that a lot of what we sell into is relatively greenfield sites. So we come across plenty of businesses who are using, you know, perhaps a Windows file structure and and the Windows ecosystem to manage their productivity.

13:34 Those providers are obviously not tailored for a particular industry, a particular space, and that's where we can come in and create a lot of value. So within that addressable market, we're not sort of bumping up against competitors in any meaningful way. There's a lot of market there which is effectively open for us to to to go after. The ERP space is a little different in that it's not as constrained by geography. So what you find is a lot of the resellers, the value added resellers that we will partner with within that ERP space do a lot of the localization work for their customers. So an example would be NetSuite is a, effectively, generic product, which is then localized by value added resellers locally.

14:21 So we can we we can scale outside of our existing territories a lot more easily in that space than we could potentially with accounting and professional services. Key takeaway from this slide is the market is very large. We are currently a lot smaller than that market, and so there is a lot of room for us to grow within it. The market itself is also benefiting from some very helpful tailwinds for us.

14:52 If you followed any other software businesses over the last couple of years, you'll see a lot of these drivers in there as well. So firstly, a lot of the firms that we sell into are coming under increasing cost pressure. They're not necessarily being able to pass those cost pressures onto customers in the form of higher fees. So they're turning to digital transformation projects to maximize the productivity of their people. They're usually people based businesses, and we form part of the technology stack that can enable them to get the most out of their people and reduce waste in their time. Legislation, specifically, previously legislation, has been tremendously beneficial to us. GDPR was a great example of that. Currently, in The US, we're seeing GDPR like legislation being rolled out state by state effectively, a a slightly different flavor of GDPR in each state.

15:45 We don't solve the whole part of that puzzle, but we are an important part of making sure you know who's accessed, what documents, about which people, and at which time in

15:54 creating that audit trail. So we are very much a part of the suite that can help to address some of that legislation. Mobility and hybrid working has been around for a lot longer than COVID has. COVID's definitely accelerated that trend. We help professionals to work from anywhere, anytime, securely, and efficiently. So that that increased trend of out of office working is definitely favorable to

16:20 us. And finally, across the world, we've seen, you know, an increase in the level of spend on cybersecurity. The last couple of weeks and the situation in Ukraine has definitely emphasized the importance of organizations protecting their digital assets. We form a part of that security layer, effectively making sure that your documents and data are securely stored, when they're being accessed remotely, they're being done so in a in a secure way.

16:52 So our strategy off the back of that is relatively straightforward. It's all about long term growth in subscription revenue, which is recurring, provides excellent visibility, and a great platform for investment for further growth. Towards the right hand of this slide, you see the four key drivers for our growth in in in subscription revenue. The first at the bottom there is simply customer retention. So making sure we are serving our current customers well. We're giving them the products they want.

17:25 We're giving them the service they need. We're helping them when they have issues. And so we invest in our products, and we also invest in our customer support functions to to do that. And the result of that is some very sticky customer retention rates. Our gross churn is typically about 1% per month across the whole group. Monetization is the second part, making sure we got our pricing and packaging right. We started, excuse me, monetization exercise in q four of last year, bringing customers up to sort of current market pricing. That exercise has just begun. Current so far, it's delivered really at the top end of our expectations, and we'd expect that exercise to continue during the course of 2022.

18:11 We'll continue to sell to new markets and new customers. We've entered into the asset finance space. That's a new market for us. We expect a lot of growth still to come from our core markets of accountants, bookkeepers, professional services, and financial services, and enhance them by those markets which sit a little bit to the left or a little bit to the right of of those markets.

18:33 And then finally and probably more importantly over time is expansion revenue. So, excuse me, the capabilities that we acquired towards the end of last year provides an opportunity to sell additional value to our existing customer base.

18:49 We will examine whether that's best done through packaging and price rises or through voluntary upsell to our existing customer base, but an important part of our growth in the future will be that expansion strategy.

19:05 So just looking back at twenty twenty one's results, we're very happy with where we where we finished the year. So our group revenue was up 11% to 15.4. Our annualized recurring revenue at the end of the year was 15,800,000. That was up 16 percent. This is the first year where we've been able to report inbuilt growth in that closing ARR number. That 15.8 is higher than our trailing total revenue for the previous twelve months. 93% of our revenues are recurring in nature, so that means that they are subscriptions. That's we estimate about the third highest on AIM, possibly now even the highest. We have two profit measures. One capitalizes development costs. One expenses development costs.

19:55 Both of those are presented here. I think key for us is cash conversion. And as with many SaaS businesses, we see a great benefit from deferred revenue. So effectively, the benefit you get from selling upfront annual subscriptions that are paid annually in advance means over the course of the last two years, we've been cash generative.

20:17 Our ARR growth of 16% has been derived from a combination of volume, so paying users going up 9%, but also price. Our ARPU has gone up 6% and was $2.01 £6 at the end of end of the year. So this bridge takes you from our opening annual revenue figure and takes you to the position at the end of end of December. A version of this bridge is looked at by us pretty much on a daily, weekly, monthly basis in our business. It really is the heartbeat of our business. You can see here, we've got £2,400,000 from new subscription contracts during the year. That's up about 10% on 2020.

21:07 Our upgrades at naught 400,000 were around about consistent with where they were in 2020. Most of that comes from the virtual cabinet business. That's traditionally been a very modular product with lots of upsell capability. One of the rationales between behind the acquisitions we made last year was to improve the level of expansion opportunity that we have within the group. So we'd expect upgrades and upsell and expansion revenue to be a much more important part of our growth in the future. Churn of 1,700,000 represents about 1% per month, very consistent number with what we saw in 2020. And that million at the end there is an impact of the monetization exercise, which we started in in q four.

22:00 Just to quickly run over some of the other metrics we've not covered. We've already talked about users and ARPU. Our average revenue per account or per customer is just over £1,800. That will become a more important number over time as we start to sell to more enterprise based customers. Certified Vault, for example, is sold in a way that doesn't really lend itself to a per user per month pricing package. So we'll also now start to report average revenue per per account. And finally, here, our LTV to cap ratio, which is a measure of customer acquisition efficiency, and stayed very robust over the last couple of years at four to one. So for every pound that we put into customer acquisition, we typically get fallback over the lifetime of that customer.

22:52 This is our p and l, which you guys would most likely have seen already. Key things to note in here. We talked about revenue already. Our gross margin was down slightly just reflecting a greater mix of our cloud based products, which have a slightly lower gross margin than our on premise products. Our overheads were up about 9%. That represents investment in development, in sales and marketing, and in in incentive costs. In terms of what our overheads look like, very consistent with a lot of software businesses. About 78% of our costs relate to either people or incentivizing those people, and the rest is in outbound marketing software that we use on premises and that sort of thing.

23:40 And finally, on the financials, just looking at cash. As I said before, even though we are a p and l loss making business, we are cash generative, and that really comes from two factors. The first is the uplift we get from deferred revenue. So customers pay us annually in advance typically. About 70% of our new business is sold on annual in advance contracts. The cost of delivery of those contracts once they've been implemented is is relatively small. That gives us a very nice cash flow uplift. And then secondly, the r and d tax credit regime in The UK has been very favorable to us. We generate typically over £500,000 a year from that. And those two things combined make us effectively cash neutral at the operating level at the moment.

24:28 Just worth flagging, we've also got our £2,000,000 loan facility in place, which is completely undrawn. Just provide us with additional firepower. Excellent. Well, thank you, Paul. I think to to summarize, we're very excited about the opportunity that GETBUSY has over the next couple of years. Software as a service business model is a very attractive one to be part of. It's especially with our high level of recurring revenue, it's self funding in terms of growth, and it is cash generative and only will become more cash generative as we grow our recurring revenue line. We clearly have product market fit in markets in which there's strong buying demand, and we have a repeatable and scalable customer acquisition model.

25:24 We've been able to expand our offerings through acquisition and through new product build, which has opened greater addressable markets, which over time will, if we execute effectively, will will bring about accelerated growth. So overall, we're optimistic about our future. Our long term target is to double the business in the next five years. We did it in the first five years of of life as a public company, and we will look to do that again. And very simply, we'll do that by continued sustained double digit ARR growth. We will also do that by continuing to be very thoughtful mathematical in the way in which we invest in growth.

26:10 And I think investors need to be conscious that our core operating infrastructure is now pretty mature. So over time, we won't need to continue investing that at the same rate as we as as revenue grows. There will be smaller incremental revenue sorry, smaller incremental investment. And then sales and marketing, we will just invest as it produces return. Assuming that we continue the growth rate as we expect to, then we will generate a lot of cash and operational leverage in SaaS businesses that is generally very, very healthy. And if you wanna look at an example in our portfolio, virtual cabinet's current operational leverage is is about 50%. So this business can become extremely cash generative at the point it makes sense to do so.

26:59 So I'll finish off by thanking you for your time. We've got a couple of questions come in, so we'll go through those. And we appreciate you following the GETBUSY journey, and we hope you continue to do so. That's great. Daniel, Paul, thank you very much indeed for updating investors this afternoon. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. I just want Daniel and Paul to take a few moments to review those questions submitted already. I'd like to remind you that the recording of this presentation, along with a copy of the slides and the published Q and A, can be accessed via your Investor Meet company dashboard. Paul, Daniel, as you know, investors have the ability to pre submit questions. We did receive one ahead of today's event, which, if I may, start off the q and a with. It reads as follows. The workplace management section of the company GETBUSY has previously struggled to rapidly grow ARR.

27:51 Would you consider spinning out this segment to another IT company that may be more difficult, more beneficial than just shutting it down? The answer is we constantly, as a board, evaluate the return on investment across all our products, and that includes generating cash and potentially acquiring additional capabilities. Work Hero is opening a a really large addressable market for us, and we're confident that the return on investment for shareholders will be significant if we continue to invest in Work Hero product. It's also underpinning our existing products, so you can't think of it in isolation. It is key to the virtual cabinet cloud journey. It's supporting SmartVault in ways.

28:38 So it's an integrated solution across our whole portfolio, and therefore, it's critical to our long term success. So, no, we won't be splitting it off, I'm sure shareholders will be happy in the long term that we haven't because they'll see significant returns from it. That's great. Thank you very much indeed. If I may, obviously, on the right hand side, you'll see yourself. Investors have submitted a considerable number of questions. And perhaps if you could if I could hand back to you. If I could ask you to read out the questions, and then where appropriate, give a response, and I'll pick up from you at the end. Yep. No problem at all. Do you always kick off there? Try Yeah. Go for it. You you kick off. Yeah. Okay. No problem. So first one here is from Alan. What is the medium term revenue ambition for the certified Vault product? So just to remind people, this is the product that addresses the asset finance market and started to generate traction really towards the end of of of twenty twenty one.

29:39 So I think the truthful answer on that, Alan, is is is we we kinda need to wait and see. This product has been very successful very quickly in terms of generating initial traction, which is you know, can be a very hard thing to do in in a SaaS business. We need to fully take stock of that market. We know it's a very large market. We're examining various routes into it to create scalable channels. So most of the customers we've acquired to date come through relatively direct channels, so very similar inbound methods to to, you know, to our traditional SmartVault customers. Longer term, those channel that that market lends itself to a channel based approach with perhaps, you know, the the the the the lending banks themselves potentially acting as a as a channel to to end customers. So we just need to assess, you know, which of those channels should deliver the best return for us or or what combination of those channels and then assess what what that means in terms of revenue ambition.

30:45 I think what is clear is, you know, that business could very, very easily become as large as the core smart vault business itself over time. So we definitely think it's a market worth pursuing. You know, we we've had some very encouraging initial traction. We now need to sort of take stock of that, look at the data we've got, understand from customers what we're doing well, what we're not doing well, and build out a model off the off the back of that. There's now a couple other questions from Alan here. Actually, Dan, so I'll perhaps take take these as well. How will investors be able to monitor product performance under proposed regional reporting, e. G, the scale of work area losses or or virtual cabinet churn?

31:31 So this refers to what we've announced around. We are effectively combining the reporting of the individual businesses. The reason for that is that no longer reflects the reality of our business to us. So we see ourselves as a multi capability company with a variety of channels which have been birthed out of what were previously stand alone businesses. So, for example, in the SmartVault business or the SmartVault team is now, you know, selling multiple capabilities into a variety of markets. So that traditional sort of product based approach of of disclosing our results doesn't really make make sense anymore. We will have Alan, you know, providing the narrative, you know, where growth has been particularly strong, where it's been disappointed been disappointing and and provide it that way. But you won't see that any longer on a sort of traditional product by product basis simply because that just doesn't reflect the way the business is is run any longer.

32:31 Another question here from Alan. In the financial statements, earn out payments for drop down and quotas, which were the two acquisitions technology acquisitions we made in in November last year, have not been recognized as they're expected to be wholly immaterial. Does it does this indicate those acquisitions are not performing as expected? No. They're very much performing as expected. So bear in mind, we bought technology, not businesses. We have always said that we will be spending probably until the end of q three this year integrating those products and bringing them up to our sort of our our security requirements and all those sorts of things, and we'll then start upselling them to customers during the course of q four of twenty twenty two.

33:17 The reality is over that three month period, the the ARR that we built up is highly unlikely to be, you know, material to us as a group. And therefore, rather than estimating a number with, you know, no real basis to do that, we elected to to to not include anything in the financials around the earn out. Alright. There's a question here from Michael D. Are there any new tools you would like to add to your software? Sorry. Good question, Michael. So I think we're we're we're so deeply embedded in our customer workflow and we work so closely on how to make them productive and happy that we've clearly identified some additional areas where we can add value to and some additional areas in which, you know, they they are feeling pain.

34:08 The starting point was was clearly form fill and quotes. Those two are a real struggle for for our key client base. And I think if any of you've onboarded with an accountant regularly and you've seen the process of the forms you have to manually fill in, you know, there should be, and there is an easier way to do that. So we're gonna start in these areas that we've got the highest demand. And then once we prove success there, I expect us to evolve and mature into other areas as well. Specifically, what those are, we we noted a couple in the presentation that are areas of interest such as AML, KYC, Wikis. There are a variety of areas that we could potentially go in, but I think it's too early for us to to narrow that down into any specifics.

35:00 So I think short term, you'll see us capitalize on the opportunity we've got with these additional products. Long term, I think you'll see us add more capabilities to the suite. Good stuff. Question here from Christian. Is November's monetization work a onetime boost to ARR, will this continue to impact ARR until it's been active for a year? I did do we boost all customers' prices, or are some still going up? So it's the latter, Christian. So we we kicked off with one of our products in November. Ultimately, the whole process for that particular product will take about twelve months to to flush through, and that simply reflects people's renewal cycle. So we we change people's prices at at renewal, which can be on an annual basis rather than a monthly basis.

35:50 So we would expect some of that still to flush through during during 2022. We'll also, during the course of '22, kick off the same exercise in other parts of the business as well. So, overall, that whole exercise will probably take about twenty four months to complete from from the start back in in November. Question question here from Justin. Why given the massive target market, should your growth targets be more aggressive? Is it not possible to stretch target targets of revenue growth greater than than 15%? So good question, Justin. The the the type the market is massive, and the opportunity is large.

36:37 But the the execution process is one in which is scalable to a point, and then it becomes inefficient. And so what we need to do to make sure that we get good return on investment is scale it responsibly and scale it in a very methodical mathematical way. So if you can watch our history, we've been very consistent and sustainable in our in our growth rates. And in the long term, we we see ourselves keep doing that. It is definitely possible to stretch beyond 15%, and and we expect to do we're aiming to do so. So if we wanna double the business in the next five years, I think we'll need to stretch past that 15%, and I expect that to happen over the next couple of years. So in answer to your question, yeah, that there's there's a lot of ambitions to get beyond the current growth rate and expectations that we can.

37:38 Yeah. There's a follow-up question actually from Justin later on then, which I'll I'll I'll add on to that because I think it's a related topic. It's around the the the ARR targets that have been set for management over the course of 2022. So, Justin, the incentive schemes in place for 2022 kick in with a minimum of 10% ARR growth and incentivize up to 20% ARR growth over the course of 2022. Just know that question is related to to the one that that you previously asked. Understood. I've there's a few questions here from Paul that appear to be accounting based questions. So thanks, Paul. For for for these. Thrown in just for my benefit, I'm sure. First question is when do you envisage being able to capitalize Work Hero related development costs? So the the basis for not capitalizing so far has been lack of sufficient evidence around the commercial viability of that of that product. It's much easier to demonstrate commercial viability in our smart vault and virtual cabinet products because they got revenue history.

38:44 You know, they they they are fully fledged businesses that have been around for for some time. My default position as a CFO is not to put anything on my balance sheet that I don't really want there. So, you know, my my favorite position would be not to have anything there at all, but the accounting standards require us to do something. I'm expecting, Paul, that during the course of the first half this year, we tick over that commercial viability threshold for capitalization. So I would expect at some point this year for us to be putting some development costs on the balance sheet relating to to to work area. There's some more accounting questions as well from from Paul. What proportion of development costs for smart vault and virtual cabinet are capitalized?

39:30 Across both those products, it's about 25% of those costs get capitalized. It fluctuates up and down, but it's it's broadly that element. We we tend to set quite a high bar for capitalization, again, just reflecting the fact we don't particularly wanna be shoving stuff on the balance sheet that, you know, we would rather look at the sort of the the pure pure cash flow number. To what extent do you need to create self contained sales and marketing customer support success teams for each of the different markets you're selling into? That's a great question. I think it depends on the persona of the customer that we are going after for sales and marketing. So I think there is, in some areas, local domain knowledge required.

40:16 That domain knowledge could be geographically based. It could be industry based. It could even be, you know, enterprise versus SME based in terms of go to market. So I think we we we benefit from scale where we can, but we will localize where it makes sense to do so. But, obviously, there's no point just putting, you know, teams in place when things can be done done cross border relatively straightforwardly. On the customer support success teams, our experience is is customers tend to prefer a local support team. So we used to have, for example, in SmartVault, our customer support team was was based in India. We reshorred that during the course of 2020, and that has been a wholly positive thing for that business. And you see that in the CSAT scores that we that we have, which are the customer customer service scores, if you like, the the the sort of questionnaire scores that we have in that business. So there is a lot of sense, particularly when it comes to focusing on customer retention and and reducing churn of investing in those local support teams who also provide that success element of potentially looking to upsell customers as well.

41:31 Excellent. I'll find a question here from Michael s. For 2022 ARR target, is the adjusted p and l hurdle rate that is is referenced? So I think no. If you always want to ask Dan, I think in summary, the way the Remco operates is is they wouldn't wanna see that adjusted loss number be anything, you know, different to to to the previous years. They wouldn't wanna see that go backwards in any way. And, obviously, they also wouldn't wanna see us miss the the market number. But that's that number itself is not disclosed. Yeah. That's great. It's just trying to put in place a fair balance between investment and profit, and the thought carefully about that.

42:18 That's great. Thank you, Paul. And, Daniel, I think you've addressed every single question submitted by investors. So thank you to everybody that's taken the time to submit questions. And if any more do make their way through to us, we'll make those available to you both after the event. I know investor feedback is important to you both, and I will shortly redirect investors to give you their thoughts and expectations. But perhaps before doing so, if I may, Daniel, just ask you for a few closing comments, and then I will redirect investors to give you their feedback. Thank you. I I I think the closing comments are thank you for your time. Thank you for understanding the GETBUSY story in more detail. We are very optimistic and feel very excited about what the future holds. We've created a huge amount of additional opportunity through the additional capabilities and additional addressable markets that we've moved into through 2021.

43:13 And we are very focused on executing and capitalizing on this opportunity to double the business over the next five years. And we're confident that we've got the team and the market opportunity in place to enable us to do that. So, we hope you stay connected to the GETBUSY journey, and, we can all share in its success. That's great. Daniel, thank you and Paul for updating investors this afternoon. Could I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team at GETBUSY PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all. Hi.