System1 Group (LSE:SYS1) — Final Results

0:00 Good afternoon, and welcome to the SYSTEM1 GROUP PLC final results investor presentation. Good afternoon, everybody. Thank you for taking the time to join us today for SYSTEM1 GROUP's financial year '26 final results. Today, we're going to be covering a few topics. We'll start with an introduction to SYSTEM1. We'll go through some highlights from our financial year '26 before I hand over to Chris to go through our financial review.

0:47 I'll then pick up again with our strategic progress and priorities and an outlook before any q and a at the end. And we'll start with some introductions. So my name is James Gregory. I'm CEO at SYSTEM1. I've been in the business for five years now. I joined, because I saw a business that was ripe for scaling, and that's the journey we've been on over the last few years. I'm really enjoying the time here. I'll hand over to Chris to introduce himself. Yeah. Good afternoon. I'm Chris Wilford, chief financial officer of SYSTEM1, since, 2020. And before joining SYSTEM1, I was, adviser to a portfolio of scale up private entrepreneurial businesses in software and media. And before that, I held a series of senior finance roles, including CFO roles at some of Britain's 4,100 companies.

1:35 Cool. Thank you, Chris. So without further ado, we'll jump off with an introduction to who we are. So for those of you us those of you who know us relatively well, we do have a few new bits of content in here as well as we'll be doing a platform demo to keep you interested. So why are we here? So SYSTEM1 is here to help the world's largest brands make confident, creative decisions that lead to transformational business results. So three key things to note here. Number one, our target audience, the world's largest brands, those who have, budgets to be able to spend on us and the capability to do something with the data we provide, to make confident creative decisions, that's understanding how the impact of their creative, their advertising, their new product development will impact on their brand by transformational business results, and that's all about long term brand growth and short term sales uplift.

2:28 And the reason we do this is because there's a fundamental gap in the market. Over fifth so over 50% of advertising has no long term impacts on market share growth. At SYSTEM1, we test every ad that airs in The US and The UK, and what we can see on those is that half of those ads creates no emotional response. So we know it's not going to be driving forward long term impact to market share growth. And it's even bigger in the world of new product development where 95% of new product launches fail because they're not able to emotionally resonate with our customers. So at SYSTEM1, what we do is we predict and we improve marketing effectiveness through our marketing decision making platform. The way we do this is by focusing on the twin engines of marketing growth. That's advertising and innovation. As a brand, if you really want to be growing your brand, the way you do this is through your advertising and your new product development, your innovation.

3:20 And we help our customers do both of these. Our revenues, as it stands today, predominantly come from The UK and The US Of A. It predominantly come through ad testing, and they prominently come through predictions on our platform, which I'll bring to life for you in a moment. So we do have geographic coverage across 81 markets, and we do serve across innovation, brand, and advertising, but this is where the majority of our revenues come from today. And I mentioned earlier targeting the world's largest brands. We're very fortunate that we work with five of the top 10 US advertisers and eight of the top 10 UK advertisers among our north of 630 clients and 48 of the world's top 100 brands that we work with.

4:06 On this screen are those examples from there. Due to contracts with our customers, we're not allowed to name many of them. So you have to just sort of assume it's five from the left hand side and eight from the right hand side of that list. And as I mentioned, we're a we're a business that's been steeped for twenty five years. And in that time, we've tested over 210,000 ads, brands, and ideas. Over 17,000,000 survey responses have gone out, and over 40,000,000 emotions have been measured through FaceTrace across over 80 markets. So we have global coverage to provide for our customer base through our scale. And to bring it to life, I'd like to take an example. So here was a case study where we've worked with Mazda, and Boundless, the agency.

4:53 So they were challenged with the facing into wanting to go into production of an ad relatively fast, and they used AI to create a what they what they call an animatic, so a prestage ad where you could see what it would look like. What we then did is we ran that, AI created ad through our data platform, tested it with real humans to understand the emotional impacts it would have. And I will just switch over to the platform to do a demo and bring this to life for you. So what you can see here is, a report that we create for our customers on our platform. This is fully automated, and it's the output which we create, which we call data within our results. What you can see on here is that adverts, so a drive called wonder for Mazda.

5:40 And as I said, you can see it's a TV ad, and it's animatic. Mhmm. As we have a look at the report, you can see our three key metrics coming to life here. Star is our long term market share growth, which they scored 4.8. Spike is the short term sales potential at 1.4, and fluency is the brand recognition, which is coming strong at 92. With this advert, we tested it both on a national representative sample. So if I flick to that, you can see that the scores are lower, and we did it with a target audience that Mazda wanted to target with this with this, which was SUV drivers aged 30 to 54 and some extra criteria aligned with that. And you can see it really resonates with that audience there. We then, within the platform, provide a reference to the norm for that category. So you can see it scores 4.8 stars versus a 2.7 star for the average for South African TV, which is where this was being aired.

6:38 You can see that's exceptionally good versus the benchmark. And you can see the same for spike rating, short term sales, and similarly for fluency, which is the brand recognition. This is something that uniquely we can do because we test all of the ads that add in the air in The US and The UK and in other markets like South Africa here. What that means is we're able to compare against the benchmark of every competitor in there rather than just a few competitors, which might be in some of our competitors' databases. And what I'd like to do now is to play you the output of what this prediction and this report creates. On the left hand side, you can see a video. Now this is the animatic that was created through AI by Boundless and Mazda. They wanted to test before they went to production for the adverts. On the right hand side, on the top, you will see our second by second emotional response we're capturing from our people watching this advert.

7:31 You will see in green from the bottom positive emotions in surprise and happiness. From the top, you'll have negative emotions, be it contempt, disgust in red and orange, anger and fear in yellows, and sadness in blue. And there will also be in the middle neutrality. So this is people who are watching this advert saying it's not creating any emotion to me. And in the bottom, you'll have fluency trace. So this is at what point do you recognize which brand this is representing? I'll play the ad now. It lasts ninety seconds, and I'll let it build out before I come back to you. Everybody else.

9:11 And you see, I thought it'd be me. Nobody Superb. So I hope you all could watch and hear that advert. And you can see, the emotional on the right hand side of this chart, you can see the emotions building up positively over the advert. Some negative emotions up front coming in, but obviously being resolved as the advert goes on, and some great brand recognition as well with the fluency jumping up right at the start, but also peaking towards the end. What you can also see is we've offered deep diagnostics to our clients, and you can see, for example, the moment where the ad was the happiest, the types of happiness which comes from a lot of our thought leadership, and you can see different types of happiness impacting how the brand will come across.

10:03 You get within here, for example, the verbatims from an individual person on how they felt at the different points throughout the advert, etcetera, and that continues. And and what I'll just do as well is on our website, you can actually see the case study. And within here, you can see this is as I said, rather than playing the full ninety seconds, I'll just play the the end of the advert. And what you can see is the how boundless the agency and Mazda have taken onboard the feedback we've given them from this test and this report into their final ad that's been created. The sunshine on a brand new day.

10:53 Yeah. It feels like I got the sunshine as I make my way. Super. Thank you. And we'll come back on to the slide presentation. Thank you. So, yes, hopefully, that's a great example of how our customers like to work with us. We always say test early, test often. The biggest impact we can have is when we help people really from the earlier on in that development stage. And, also, you can see how it comes to life from the the various aspects where we help our customers on the platform. What I'd like to do now is just briefly touch onto why SYSTEM1. I guess you could say ad testing, new product development testing.

11:40 There are other people out there. So why would you come to SYSTEM1 to to for any of that? So, fundamentally, SYSTEM1, we have a truly scalable platform model. Our platform revenue is now 96% of our group revenue, and we know this is a scalable foundation that supports profit margin expansion as we can grow our revenue. We also have truly proven predictive methodology. It's based in behavioral science rooted in Daniel Kahneman's thinking fast and thinking slow and Paul Ekman's emotions, which you just saw just now on that face trace. We uniquely measure emotion and that's SYSTEM1 response, not stated intent. That's what allows us to truly predict brand growth and sales impact with accuracy. We've got a unique and substantial database of emotional norms. That's over a 130,000 ads. Over 65,000 innovation concepts have been tested. And it means we can provide all customers with insights against all of their competitors, and it also underpins our future AI capabilities, which I'll touch on in a moment.

12:36 We also have truly high profile thought leadership and research. We're able to rework with industry bodies such as TikTok, such as Effie, which allow us to be the industry benchmark and supports our new business developments. We're very fortunate to work with blue chip customers across the piece. I mentioned before over 630 clients and 48 of the world's largest brands, and our top 10 all average around £1,000,000 of annual revenue. We're also playing in very large markets that we have low penetration in today. So the ad pre testing market of over 2,500,000,000, innovation testing market of over 12,000,000,000. So if there is very much an opportunity for us to grow in that space. And finally, we have balance sheet strength, so we which provides us with optionality and resilience over 12 over 12,000,000 of net cash, that we have.

13:23 So with that, I will just touch on very briefly some FY '26 highlights before I hand over to Chris to take us through the detail. I think, firstly, I mean, on reflection, it was a year of two halves. And what's great to see is we had a really strong recovery in h two after the first year. If you wind the clock back over the previous couple of years, we've been growing the business with strong net revenue retention and new business on top of it. In the first half, what we saw was some real macro impact whereby we saw a lot of our customers paused spending. Now 19 of out of 20 of those customers are still with us today, they weren't leaving us. However, what we saw was they just changed their spending patterns as the tariffs came out. However, when you came into the second half, we've had a really strong recovery, and this has been because our new business engine didn't slow down. Our product market fit has been really strong. And then as the net revenue retention has improved through the second half of the business, we've entered back into growth with a record h two of £19,400,000 revenue.

14:21 We also, going into last year, because we'd had two strong years of top line and bottom line growth, had invested discretionary into the business. Now when we saw the challenges in h one, we reacted to these revenue challenges, and we took out some million pounds of annualized cost savings, half of which would have been in the in the previous year and half of which will flow through into this year. We've also continued investing in our offering. I'll take you through our AI offerings ever so shortly. And we've also been doubling down on our strategic priorities, and we're seeing them come out. That's winning in The USA, winning with the world's largest brands, and winning with innovation. So overall, we feel we're well positioned for growth with our powerful offerings, playing the major market, and having a strong balance sheet for optionality going forwards. All of which means we're confident in improving our EBITDA margins to hit the 15% targets we set out for the year and a clear path to sustainable growth. So with that, I'll hand over to Chris.

15:16 Thank you, James. And, yeah, I'd like to a lot of numbers on this slide, but I'd just to tell the story of the year that we've just reported. So, you know, last year was a year, as James has said, of two halves that followed a very successful f y twenty five. And after two years of over 25% year on year growth in the top line and a formula that was working, we committed to ramp up discretionary investment, and and we we set out our intentions in December 2024, just a few weeks before president Trump's second term of office began. So we didn't predict at the time the six months of uncertainty caused by the tariff wars that had a material impact on our customers in Europe and The UK in particular.

16:13 So the first half was a tough period when reduced revenue collided with increased expenditure that we had committed to. I'm pleased to report that matters improved noticeably in the second half. Having fallen in H1, platform revenue grew by 9% in H2, and the gross profit margin stayed close to the previous year's record level and well above our 85% benchmark. And even though revenue was broadly flat year on year, 54% of the year's revenue came in the second half of the year, which is indicative of that uptick. Normally, it's 50% to 52% in the second half year when we're growing. Our operating expenditure increased in both halves of the year due mainly to the additional discretionary investment program we'd announced.

17:09 But we dialed it back a little and found on savings to end the year and enter FY 'twenty seven with a cost base on which we're confident we can grow profitably in f y '27. And operational gearing and cost management meant that h two profit before tax was six times that we delivered in h one. So operational gearing is really, really important to understand the profit dynamics of this business. The tax charge in the year was relatively high due partly to the end of the old UK SME research and development tax credit regime. The lower PBT also meant that some of our small subsidiaries' taxable losses could not be relieved in the year.

17:57 We expect in FY 'twenty seven the effective tax rate to normalize back to around the 30% level. The half on half revenue improvement was due mainly to continued progress in our innovation product group, which has been the focus of additional investment, and also a strong recovery in ad testing, which comprises over 80% of our revenue. The growth in advertising was very closely linked to the large brands in UK and Europe in particular turning on the marketing budgets again once the situation surrounding trade tariffs became less uncertain.

18:44 Brand tracking revenue was GBP $05,000,000 lower than the prior year due mainly to the non repetition of two large projects in The UK in FY 2025. Now this chart, some of you would have seen versions of this before, shows the half on half progression of our revenue by type of revenue. The blue bars represent what we call data or the fast turnaround predictions that our platform delivers. The yellow shows the standard consultancy revenue that derives from the automated from derives from the automated tests, and we call this data led consultancy.

19:31 And the gray bars show revenue from our legacy bespoke consultancy offering that represented just 4% of revenue last year. It was 100% back in FY 'twenty. So there are two points to bring out here. First, platform revenue, the blue plus the yellow bars, has continued to grow well half on half with the exception of H1 last year for reasons I've already covered. And second, total reported revenue growth has been held back by the in recent times by the gradual runoff of the bespoke consultancy revenue, which derives products that are nonstandard and can't be delivered on the platform. FY twenty six featured consistently strong new business generation even in the worst of times, which contributed in the year 10,700,000 towards total revenue compared with 7,900,000 in FY '25.

20:33 And these charts focus just on the platform revenue, which is 96% of the business now and exclude bespoke consultancy. On the left side of the graphic, you can see that platform net revenue retention, which was 100106% in the preceding years, fell, as James has said, to 72%. Now we do not believe that this was due to uncompetitive product or pricing. If that were true, new business would not have been so strong throughout the year. The data shows on the right that our retention by number of clients as opposed to revenue was pretty much in line with previous years. Most of the client churn in our portfolio occurs in the long tail of our more than 600 clients, many of whom do not have a new advert to test every year or a new idea to test every year.

21:25 What was particular in f y twenty five to twenty six is the reduction in marketing budgets in in in and the weight of spending by our major customers, of which we retained 19 of the top 20. By way of context, with new business at 10.7, if platform net revenue retention had been in line with the previous two years, the revenue in the period would have been over 46,000,000. Organizational changes that we have announced in our go to market teams and the introduction of, in particular, the client success team are intended, among other things, to improve net revenue retention with our major clients.

22:16 I said earlier that the reduction in profit for the year was due partly to the timing of our accelerated discretionary investment, and this is highlighted by the purple bricks in this waterfall chart. The €2,000,000 on euro additional investment that we trailed in December 2024 was trimmed to €1,700,000 of which just under €1,000,000 was new roles in the business, so people costs, primarily for innovation and The USA. And just under 800,000 was third party expenditure, primarily on IT development and marketing. The £400,000 increase in other operating expenditure includes £05,000,000 of severance costs in the year, so we don't treat those as exceptional.

23:04 And we have no plans to increase further the ongoing level of investment in the business, which increased substantially year on year. And finally, we announced today a 9% increase in the ordinary dividend from 5.5 p to 6 p per share. Now while this payment represents more than 50% of reported earnings, the dividend is more than 16 times covered by year end cash, And the increase reflects the Board's confidence in the group's prospects. So I'm now handing back over to James to talk about our strategic priorities. Cool. Thank you, Chris. And for those of you on here, do you I've seen a few questions come in.

23:51 If you have other questions as we're going along, please do submit, and we'll make sure we tackle them at the end. Within the business, I mean, it would be remiss of me not to talk about AI. It's there in every industry, and by no means is it missed out marketing in the world of market research. And I think what's great with the world of AI is it provides a real opportunity for SYSTEM1 to play here. So what you can see in the world of AI is that it's really supercharged how marketing and market research industry is working. I think in recent stats, 50% of marketers are using AI to help with brainstorming or the creation of assets. And if you look at the advert that which we tested on behalf of Mazda and Boundless earlier, that's a great example of that. It's also creating 30% reduction in content creation time, which means there's even more content to test on a rapid basis.

24:40 However, what we're also really clear on is that more isn't always better. Yeah. Emotion still builds brands and ROI matters. If you imagine how the world of AI can happen, you can imagine it being sort of across the breadth at a shallow level or at depth at a deep level, and we believe there's an opportunity for AI and SYSTEM1 to continue to play in that space. And then finally, we believe that we can truly bring together the power of emotions and algorithms. I mentioned upfront, we've got a database of over sort of a 130,000 adverts, which we are using to train our AI offering on to enable us to build out our own AI offering. And we are the only people in the market who have that emotional database to truly train an AI on. And that will be our TYA screen, which I'll touch on in a moment.

25:26 We also believe that it can help power our true products as well. So we've also launched products such as TYA instant insights, which is where you're able to get much more in-depth insights into your standard TYA Pro reports. So TYA screen, I hear you say. What's that? Well, this is our AI tool for quick, affordable, creative screening. As I mentioned, what if you imagine a world now where there's more and more creative being created, what you might have is rather than having sort of one idea you want to bring to fruition for testing, you might have 10. You might have a 100. And what you need to be able to do then at that point is screen out the great ideas from the less great ones. So our TYSgreen product allows you to do this. It's trained on real human emotional data. Again, we're the only people who have that database of emotional responses on a second by second basis to be able to build out a product like this.

26:21 We're also very clear on the transparent confidence framing. So we know that AI will not be as predictive as humans, so we're very clear where it is and where it isn't. And we know that, actually, the product we built out today matches humans nine out of 10 times. So you can see that on the demos on the examples on the right hand side. You can see the advert being tested here, and you can see that it's creating a high so we offer a high, medium, or low prediction across our star, our spike, and our fast fluency metrics. And we also then give inspiration in terms of here are some other ideas which you might want to use to improve this going forwards. So we feel that this is a real opportunity to add breadth to our portfolio of offering for the customers who want to test a long tail or want to really early on understand which opportunities they might want to consider going forward before they enter the world of depth where they have real human testing alongside it.

27:17 We also set out three strategic revenue priorities. We set these out three years ago following a strategic review, which myself and the executive team carried out. And we're really clear that the way for this business to win will be by winning with the world's largest brands, winning in America, and winning with innovation. Firstly, the world's largest brands. As Chris mentioned, over the last six months, we've had a reset of our organization to make sure that we are focused around our customer. And we've created a function called client success, which deepens our trusted adviser relationship with global clients. Within that, a few key things I'd like to highlight. Firstly, we've appointed a head of global accounts, which allows us to strengthen the client's organization and ensure that best practice of how we look after our global accounts is carried out consistently for each one of these.

28:07 We've also increased that focus on relationship management through the creation of client success teams. What this means is now our top customers will have dedicated teams who support them rather than being supported from a global basis across the piece. And finally, we have created a cohort of global strategic accounts, and we have a targeted client service model to be able to service these clients. And as we mentioned beforehand, the lifeblood of any business is the new business it can create. And if you look at within this world's largest brands, we've been able to do this. So £10,700,000 of new revenue being created in this space, of which 3,500,000 in The US, 6.3 in The UK and The EU, and 800,000 across APAC and LATAM. Again, as I mentioned, we're not able to mention the names of many of our clients. If you look at this screen, you can see the great breadth and depth of customers we're able to go to.

29:04 Winning in America. So we know this is super important. The US is by far the biggest market for market research and marketing spend. You can see there are £77,000,000,000 of spend on market research there versus the 11,000,000,000 in The UK, which is 54% of that total spend versus the 8% in The UK. However, if you look at SYSTEM1 revenue, you can see that we are stronger in The UK than we are in The US. It's been growing in both of those markets, but we believe if we can truly fire up The US, we have a massive opportunity to truly scale the business in that space. And we've been doing this with our investments over the last few years, and you can see our platform revenue is up a 180% versus f y 23. Alongside this, we've seen our fame momentum, which allows us to really be able to crack the market by having a brand that is recognized for our clients to buy from where unaided awareness has doubled versus the last year.

30:01 And over the last year, we signed a contract with our largest customer to date in The US in the biotech space. And finally, innovation. This has actually been upgraded from revitalizing to winning with innovation as we're seeing true success in this space. Firstly, we know it's a massive opportunity. You can see over 2,500,000,000 of the of ad pretesting versus 12,000,000,000 of innovation testing. And we know that it used to be SYSTEM1's, heartland in the world of brain juicer where it was the largest revenue stream that we had. Over the last year, as Chris mentioned, we've invested in this space, building out a team with an innovation MD with Tristan Finley leading the way in that space. We've been building out our product development as well as focusing on our marketing and sales in our go to market space.

30:51 And what's great is we're seeing the results from that really come through on a consistent half by half basis. You can see that we've launched new products in this space as we're building out an ecosystem of product offering for innovation. We've secured partnership with Bionics, which allows us to bring some AI credibility, but also really engage with clients at an early stage to under as they explore new opportunities, which allows us to then bring in, the concept and pack testing that comes later on. We've increased our client engagement and broadened the innovation customer base, and we secured large customers, for example, six large global consumer goods companies in this space. And with that, we'll move on to Outlook before we get to q and a.

31:37 So, we are very confident in the year ahead. We have restored momentum through a record h two, and we're really confident that will carry on through h one and the year ahead. Platform revenues continue to grow. We're now at 96% of our business coming through the platform, which gives us real operational leverage. And the cost savings we've applied sets us up well for future growth as well as margin expansion. We know that we have world class thought leadership and world class products to give us the best in class offerings and allow us to further penetrate the markets. And I also wanted to call out at this point, and this was one of the questions coming in. We've moved away from doing quarterly revenue updates to doing half yearly reporting. This is driven actually by investor demand. So a lot of our investors have suggested this would be a better way to report due to the fluctuating revenue that we see that comes in on a monthly and quarterly basis.

32:29 But we are really clear that we're trading in line with management's expectations across q one and h one to date. So with that, I'll move on to q and a. Again, you have to submit q and a through the q and a tab on here. So thank you for those who've done that, and Chris and I will answer these as best as we can now. Should we run down from top to bottom, Chris? Shall I take the first one? You want me to do that. Perfect. So the first question came in, here saying, I understand the main theme at Cannes this year was the creator economy. This essentially fragments the creators of content that you need to target. Is this a challenge, and how do you overcome it? So, actually, in Cannes, we were, on the main stage talking about some thought leadership that we've done with WPP and with TikTok, which is all about how can you create in the how can you work in the creator space to build brands.

33:20 Now one of the things we've recognized in there, for example, is that creators can often really emphasize brands if they are very aligned with what the brand does. However, if they if you've got a creator which doesn't actually align with your brand, for example, it doesn't do that. Now the thing is the industry is moving in this way. I believe it was Diageo who come out and and invest and said they're going to be investing a lot of their marketing spending to create advertising content, and that's the way the industry is going. So what marketers need to be able to understand is how can you truly use it to build brands in that space. If you're interested, we actually have a, webinar, which is going to be going live at 3PM, so subsequently to this. I believe on our website, if you go there, you'll be able to sign up and you'll be able to watch the webinar where we'll have, Andrew Tindle, who's our chief growth officer in advertising, taking you through exactly how you build a brand in that creative space.

34:09 So, again, maybe similar to the world of AI, with these things, there is always a threat on opportunity. I believe that we've been able to position how you can truly use emotion to build brands in that creative space, and that's what we'll talk through there. I believe I've answered the second question on quarterly updates. And, again, just to be very explicit that the group is trading in line with expectations for q one, h one, and the full year for revenue and for profits. Which answers the next question? Okay. Sorry. And that was perfect. There we go. So question there. So what are you expecting revenue growth to be? So as we said, in line with market expectations. For clarity, we have both Canaccord and SINGERS who have who are our brokers and who put some numbers out into the market. As a group, we don't actually put out our own individual forecast, but we can say that we're in line with our brokers forecast as they stand.

35:01 Great. Do want to do the next one, Chris, on What do you mean by optionality when you refer to the cash? Well, it means if you've got it, you can choose what you do with it. And so it means we are we have cash to pay dividends, to buy back shares, to invest tactically or strategically. I mean, not at scale strategically, but, you know, small infills or that kind of thing. Always better to have the options than not to have them. Cool. Thank you. I'll answer the next one as well. Yeah. Go on. SYSTEM1 Trivia in The USA. Please explain the connection between these two companies. There is no connection between the two companies other than we narrowly avoided a lawsuit over the use of the name SYSTEM1, and we have a coexistence agreement with the other SYSTEM1 that governs how each of us uses the trademark.

35:59 I won't say any more than that because I don't have a lawyer at my side, but it's fine. We don't we don't have we peacefully coexist, but there is no commercial or ownership overlap at all. Thank you, Chris. Two two questions in here. I I might actually do them in reverse order. So the first question was, does the use of TYA screen cannibalize conventional TYA platform revenues? So I think we're really clear there are different use cases. If you look at the TYA screen, what you get there is some very top level, high, medium, low steer around how good a ad an advert could be. However, what you don't get is by any means the depth of insight that I showed you on that t that test your ad pro report.

36:49 And if you think about how a customer wants to spend, they will probably be splitting their budget in two ways in that eighty twenty split. They'll probably have 20% of spend across 80 of their their products, which will be that broad, almost social, set of advertising whereby there are lots of things they want to know. Is it roughly right? Which we can answer through the TYA screen. And when they have their big moments, be that their TV campaigns, their as of home campaigns, their big brand campaigns, that's when they want to have the true human emotion responses to get into the depth where they can understand that the thousands and millions of pounds they are spending on campaigns is spent the right way. So I I think, actually, they are very complementary. We know our customers want both as well. So the biggest thing we have to be able to do is to be following the markets where they are going in that space.

37:37 We know that our customers are asking for both the opportunity to help look at that long tail as well as the the in-depth one they want. So I believe this is actually an opportunity for us to do both. We're also looking at how we package up screen and how we go to market with it. It's in beta with some of our biggest customers as it stands today, and we think there's a real opportunity to also be able to package it in a way, for example, if you spend over a certain amount with us on your TYA Pro advertising work, then you might have access to the screen products for a certain amount of credits or vice versa, which means that, actually, there's a nice lock in between the two sets of products together. And then the other question was around, do we have a plan to stem the decline in brand tracking revenue? And I think to be really clear, when we go to market, we go to market with our advertising and our innovation offerings.

38:24 If you want to grow your brand, the advice we normally give people is that you need to improve your advertising or your innovation. They're the two levers you have in marketing to grow your brand other than just by being a big known brand and spending more money on it. So, actually, our brand tracking often coexists with an advertising piece of work or an innovation piece of work where people buy from us. Historically, in the old Brain Juicer days, we did have some historic, brand tracking revenues. I mean, Chris talked about us losing a few of those as they do just dwindle out over time. But I think what we'll expect to see is that it will be sort of a smaller product sitting alongside our advertising and innovation products going forwards. Thank you. And we've got another question come in here.

39:09 In the years before the current sorry. In the years before the current platform scalable business model, there are many high caliber teams supporting the portfolio of clients. Assuming that many of these people are no longer at SYSTEM1, where did they go? Oh, gosh. So maybe went slightly before my time. I joined during some of that transition. We do have a high class consultancy offering. It's a slightly different offering though is what I would say. So what our consultants do is they help you understand your scores and how to improve your either adverts or your innovation. So to do that, they need to be able to understand what creates great advertising, what creates great innovation, what insights we have in our database, what thought leadership we have. So they are people who are truly able to provide that. What they aren't, though, are people who are going to be given a brand new problem they have to solve in a bespoke way each way. So it's a it's a scalable consultancy offering versus that bespoke offering.

40:00 There are plenty of, bespoke consultancies out there. We actually have a strong alumni network, and a lot of our ex colleagues, I guess, work in that space and then come back to us, and we see them on a maybe six months to annual basis from that space. That's great, James. Chris, if I may just jump back in there and thank you for addressing all those questions for investors today. But, James, before we direct investors to provide you with a feedback, which is particularly important to yourself and the company, could I please just ask you for a few closing comments? Thank you. Yeah. Well, thank you firstly for the the time today. I think as I highlighted earlier, I'm feeling really confident that the strong h two recovery and the focus on our baseline means that we're set up for a really successful year ahead, both in the top line revenue and the bottom line EBITDA.

40:46 We've been investing in our offering, meaning that we're gonna be launching our AI offerings alongside our real human testing. And I think with our focus on The US innovation, the world's largest brands, we really set up for growth in the future. Fantastic. James, Chris, thank you once again for updating investors today. Could I please ask investors not to close this session? As you know, we'll automatically redirected to provide you feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you all.