Good morning, everyone, and welcome to Beforepay Group's Q1 FY 2027 results webinar. Thank you for joining us today. My name is Shiva, and I work from Investor Relations at Beforepay. We will provide an overview of the company's performance for the quarter, followed by questions at the end of the presentation. If you have any questions throughout the session, please submit them using the Q&A function in Zoom, and we will address as many as possible. I will now hand over to our CEO, Jamie Twiss, and CFO, Laavanya Pari, to take us through the results. Jamie, over to you.
Well, thank you, Shiva, and thank you everybody for joining us this morning. We are delighted to have you here. This was obviously a very strong quarter for us, so many of you will have had the chance to see the release, which is out on the ASX and on our website now. The best quarters are always the ones when the numbers and your results do the talking for you. Just to summarize very briefly, performance in the last quarter, on a year-on-year basis, we delivered a revenue increase of 45%. Cash profit was up 58%, and as that shows, on a cash basis, we had a significant net margin expansion to 35%. This was driven by a number of factors.
The run rate effect of the new pricing structure we put in last year, as well as the new debt facility contributed as well, of course, as strong volume growth and our usual tight cost discipline. So hand it over to Laavanya to take you through the numbers in more detail.
I will now go through our financial performance for the quarter. Total advances were a record $264.7 million, which was 17% up from the prior year. This was driven by the average advance size, which went up from $446- $524, which was also 17% up. That contributed to another record, which was revenue at $16.5 million, which was 45% up on the prior year. The advances contributed to that, as well as the repricing that Jamie mentioned on the Pay Advance product.
Going specifically on the Pay Advance product, you can see that the total advances were $257.7 million, which was an increase of 15%, and looking specifically at the Personal Loans product, it was $7 million, which was up 269% on $1.9 million in the prior year. Looking at our credit performance for the quarter, it was 1.41%, which was an increase from the prior year.
As you know, we deliberately manage our average advance size to ensure that our credit performance is maximized, and you can see the increase in our risk-adjusted revenue and our profitability contributed to the overall result. When you take that increase in revenue of 45% and the credit performance and the overall performance of the business, that contributed to a cash NPAT for the quarter of $5.7 million, which was 58%. Overall, a very good result for us this quarter. Moving to our balance sheet, you can see our cash at bank was $6.4 million, and overall cash was $13.6 million for the quarter. Our equity position increased from the full-year results at $48.9 million up to $54.1 million.
Our funding position was, we had a drawn amount of $36.6 million, and our overall facility amount, as we mentioned in the previous quarter, is $100 million now with the new facility. I will now hand it back to Jamie.
In terms of where to from here, the answer is, as it usually is, more of the same. Obviously, these are very strong numbers. We are really, really pleased that all of the capabilities we have in automation, in credit risk management, are so clearly and dramatically flowing through to the bottom line. I would note that there is nothing about Q1, about this quarter just passed, that was particularly unusual in terms of what we expect going forward, no material one-offs. While we do not put out a forecast, future quarters will also have the same benefits that Q1 had. As we said at the full-year, in August, we said then that we felt very, very confident about FY 2027, and I think these numbers show you why we felt confident at the time and why we continue to look forward to the rest of the year.
Thank you. It is very gratifying to be able to deliver a result like this, and many of you have been on the journey with us for many years. It is wonderful to be able to deliver outcomes like this for you in particular. Thank you. We will now turn to questions. I will hand back to Shiva, to moderate the Q&A.
Thank you, Jamie and Laavanya. We'll kick off the Q&A section shortly. If you have any questions, just a reminder, please submit them using the Q&A function in Zoom. I've got a couple of questions coming through. Jamie, there's a question on net bad debts, for the core Pay Advance product, increasing in Q1 from Q4. Can you just provide a bit of context around what drove the increase on that? Was it
Yeah
season pressures or was there macroeconomic stress?
Yeah. So actually, the answer really is neither, as far as we can tell. Seasonally, Q1 is actually usually, is a pretty good quarter for us. We haven't actually seen anything that feels like significant macroeconomic stress, come through the portfolio, on the credit line in either the Pay Advance or the Personal Loans product. Happy to talk more about that, if that's of interest. I was actually quite pleased that we were able to, I know it sounds odd for a lending business, that we were able to bring net bad debts up. The reason for that is, as Laavanya mentioned during her remarks, we always look at average advance size and credit performance net bad debts as one thing, and we optimize across both of them.
One of the things that's been challenging over the last couple of years, and again, this is a good problem to have, has been actually those loss rates have been lower than what they should be to be optimally efficient. What we've done over the last several months is we've been able to increase that average limit quite significantly, and that has brought up net bad debts with it. In general, all else being equal, the higher the limit, the greater the probability of default. But as Laavanya mentioned, the increase in revenue and in that gross contribution number has significantly outweighed the increase in credit losses. All in all, that's been an important driver of our success, is getting those limits right-sized, bringing up that net bad debt number, bringing up that average advance size, and that's what you're seeing flow through.
That is a big part of what you are seeing flow through to the bottom line.
Thanks, Jamie. I will combine a couple of questions on Personal Loans. Can you provide just a bit of context around the growth of the Personal Loans? The quarterly origination seems to have plateaued in Q1. Why is that?
Yeah. Q1 and Q4 Personal Loan originations were very similar, actually ticked it down Q4 to Q1. The big reason for that was we introduced a new Personal Loan-specific risk model and rolled it out over the course of July. As we settle that in, that has held the approval rates at a slightly lower level. We have also done a little bit of work around limits and eligibility. Primarily, it is around that new risk model. The pleasing news is the credit outcomes from Personal Loans are actually a bit like Pay Advance, if anything, too good right now. We did say in the 4C, we put a number out there of below 2% and said this number will normalize, and it should normalize. If we ran it at that very low loss level, we would be doing something wrong in terms of what we are lending.
Yeah, Q4 to Q1, flattish. I think we continue to be very bullish on Personal Loans. As we always say, in any individual quarter, even couple of quarters, any metric may go up or down, but we feel pretty confident in the patterns over the course of longer periods of time. We are very committed to Personal Loans. We continue to be very bullish about that product.
Question from Phil, just around Carrington Labs, and if you can provide an update on that.
Yeah. So I think as we said before with Carrington Labs, we always prefer to underpromise and overdeliver. I think we'd always rather do the thing first and then tell you about it rather than kind of, "Oh, it's going to do this, it's going to do that." So we didn't have any major announcements this quarter in Carrington Labs. I think one of the things that we've done over the course of this calendar year has been focusing on larger potential clients and deals, and those obviously move at a stately pace given the purchasing process on the other side. Obviously, at the right time, we'll be very excited to make an announcement when we get there.
Question from Chris on marketing spend for the quarter compared to how that's trending from previous quarters.
Yeah. So marketing spend, it moves around a little bit from quarter-to-quarter, as those of you that have been with us for a while may recall. The big reason for that is, while we do have a budget for marketing spend, we don't really manage that budget. What we manage towards is the productivity of that marketing spend on a marginal basis. So we always think about for the last customer that we. The last paid acquisition we do of a customer, the most expensive one, how much did that cost us, and did that make sense in terms of the economic value of that customer? When marketing spend goes up, it's because we have found a way to acquire more customers that are still profitable in a value-creating way.
Now, Q1 was a bit unusual in that we actually had pretty healthy customer acquisition despite that spend not moving up in the same way. That was very pleasing to us. We are not yet sure if that is actually part of a longer-term trend in terms of better acquisition models or if that is just the way this quarter worked. We also are seeing a bit of a halo effect from the Personal Loans product. As we said previously, the Personal Loans product is available to new-to-group customers, people that have never taken out a Pay Advance. We are doing some advertising around that. People who come in for that product, if they are not eligible for the Personal Loans, they then can choose to apply for a Pay Advance, and we are seeing some of that flow through as well.
That may be part of the increased productivity of our marketing spend. It is probably too early to say definitively, though.
I have an anonymous question here just on the net bad debt write-offs and I guess the provision writeback, and I guess generally how we do provisioning at Beforepay. If you can just provide a bit of color on that.
Laavanya, do you want to speak to that?
Yeah. On the Pay Advance product, it's pretty straightforward. At 62 days, we consider it to be in default, which is a fair standard. Then, a further 62 days from that, we write off the debt. That's the point at which that happens. When it comes to, it's slightly different for the Personal Loans product, where it's more on the days past due. There, we're looking at 90 days past due, and then a further 90 days from that is the point that we write it off. A loan could be in flight, and at some point parts of it could be written off. Pretty standard, I'd say, in the way that we do it from an accounting perspective. What I will also mention is that we do provision as required. We provision upfront on all of these loans, regardless of the duration.
Because they're up to 12 month loans, we do provision upfront for the entire duration of the loan, even though the revenue is taken up only for the component that relates to that period. We do have this mismatch in terms of the revenue that we'll recognize and how much we're taking up on that ECL expense.
We do adjust that provision for the in-flight Personal Loans as well. If we see a cohort of loans performing better than expected or worse than expected, we'll adjust that provision accordingly.
I have a question here from Chris, just on a bit more color on the seasonality per quarter that is expected in Q2 and Q3.
Yeah. So usually, if we think across the four different quarters, with Q1 obviously being the July to September quarter and finishing with Q4 at the end of the financial year in June. Usually, Q1 is a bit more subdued from a growth standpoint, because people are getting their tax refunds is a big part of that. Economically, things are a little bit quieter in the winter. Then Q2, you are obviously heading into the holiday season at the end of the year, and we see that volume start to pick up, but a bit of credit stress comes with that as well. So we see credit is a bit worse in Q2, through that holiday season. It usually peaks right around Christmas. Then in Q3, demand, I would say, normalizes to more of an average level.
You just get the very tail end of that holiday credit experience in Q3. Then finally, Q4 is probably the most normal of all the quarters. Easter kind of often has a slightly confounding effect, but Q4 is usually a reasonable bellwether for a full-year number. So if you think about where we are right now, as we head into Q2, you would probably expect to see demand pick up further and a bit of that kind of temporary credit stress start to flow through a little bit as well.
Question from Chris. Which quarter do you expect to start paying income tax?
Yeah, we are, as you will know, in a loss position.
Net over the life of the company, obviously.
Okay.
We've been very profitable for a number of years now.
That's right. We've been utilizing the losses for a period of time. We still have an amount of losses still to go, so not in the immediate quarters would we expect for that to happen. But certainly, in the next year or two, progressing exactly as we are at the moment with no other change, we would expect to over time. Because we don't put out a forecast, it's a bit challenging for me to say exactly when that point will be. But obviously, we're in quite a profitable position, and we do know the repricing is coming through. So that will come, it just won't come in the next quarter or two.
Yeah, if you add up, you can obviously go back and add up our entire net profit position over the life of the company from our public financials and get a sense of how much more the tax asset remains.
I have a question here from Zhang. "Hi, Jamie. Thanks so much for the results. It's gratifying to see how much have you built the business to today. Interest rates have been going up in the macroeconomic world. What does that mean for our business?
Yeah, that's a great question. Interest rates, they touch us in a few different ways. I will start by saying we don't have particularly high interest rate exposure on either side. Primarily just sort of the nature of the product and the duration of the product. In general, it's not as big a deal for us as it would be for many other lenders who have much longer dated books and may be kind of fixing rates a bit differently. It affects us in two ways. One of them, of course, is on the demand side. Some of our customers have interest-bearing liabilities or incur new ones that have some sort of reference to the current level of rates. Either they've got a floating rate loan somewhere, or they might take out a new loan and be paying more for it as well.
Now, we watch this very carefully, of course, and we look at what other obligations someone has, because we have their bank transaction data, we can see flows in and out. Obviously if they have other debt positions, we're very mindful of that on a risk basis. Because we run also to fixed pricing, when interest rates go up, our product becomes more attractive on a relative basis. It's net probably a bit helpful for demand. Then on the risk side, we're cautious about that as well. Neither one is a huge effect. Our third-party funding that we get is on a floating rate basis, so the higher rates do flow through to our funding costs. Now, again, given the duration of the book and the yield on those assets, you probably wouldn't notice it in our financials unless you were specifically looking for it.
But there is a bit of an effect there as well. It's always something we think about. What we think about much more are the other things that go with changes in the rate environment. To the extent that macroeconomic activity is driven by that, we have a lot of customers who work in industries with some level of exposure there, whether it's construction or something else. We watch those a little bit through rates overall, but particularly through the individual kind of economic experience those people are having. Some people do better, some people feel that pressure a little bit more, and we adjust our risk settings for each individual on that basis. Great question.
I have a question here from an anonymous attendee. Given the progressive rollout of higher limits on Pay Advances, do you therefore expect the average size to continue rising?
Yeah, that's a good question. I'll start by saying that actually, we haven't changed the overall limits on Pay Advances actually in years now. They range, the smallest one is $50, and the largest one you get is $ 2,000. What has changed is the mix of who's getting what limit. There are really two drivers for that. One is a customer mix effect. We've gotten much better in the last few years at targeting that less risky, perhaps slightly more affluent customer who's going to get a $ 1,000, $1,500 Pay Advance, as opposed to somebody who's going to have a smaller one. That mix effect by itself obviously increases that average advance size. Indeed, we've allowed some of the riskier customers, we're not acquiring as many of those. As those people default or roll off, they're not being replaced at quite the same rate.
The composition of the book is changing in a very positive way. The second piece of it is we are progressive. We're always improving the risk model. The 12th generation is the one we have right now. I think I said at the full-year that we're going to be moving towards the 13th generation over the course of the coming months. As the risk models get more powerful, that gives us the confidence with customers that previously it was a little bit unclear could they handle 600 or was 800 a better fit or is that too You cannot write and it should be 400.
As that risk model gets more powerful, all else being equal, and all else is never equal, all else being equal, you would expect us to feel more comfortable assigning those higher limits to a broader number of customers. You do have those two structural tailwinds in the average advance size. It is a number that can bounce around a lot just from noise, right? We acquire a bunch of customers with lower limits that dramatically can shift down that average advance. Usage mix changes, different groups of people borrow in January versus in October. Overall, of course, if macroeconomic conditions change, then that will flow through. There's so many moving parts that go into average advance size. I don't want to simply say that you should expect it to be higher this time. I genuinely don't know.
But there are those two structural tailwinds behind it.
Another question from an anonymous attendee. Can you tell us about headcount and how you think it will trend with growth plans?
Yeah. One of the things that I think I'm really proud of is that a lot of businesses say they run a fixed cost business, and then you look at their revenue and costs seem to trend up with it as well, and that's genuinely not the case with us. When I became CEO in 2021, we had about 35 people. We ran in the 30s for a few years. We've added some people over the last couple of years to build out the new loan management system and do a few other things. We're now kind of right around 50. I should say that excludes some offshore contracted support staff we have in the Philippines, different economics and probably not that material to the spirit of the question.
We're running at about 50 people, and that increase from 35 - 50, if you look at our FY 2021 revenue, was less than $5 million for the year. I think I've got that right. We've obviously been able to really get the operating leverage of being a genuinely fixed cost business. The reason for that is that we're so heavily automated. We're writing 40,000 loans a week. Monday morning's not a particularly busy time for us. We've probably done 100 loans since we got on this webinar, and it's highly unlikely that any human has touched any of those. It is genuinely a fixed cost business. I think our headcount doesn't really scale with the volume of business that we're doing. If it were to increase meaningfully from here, it would be off the back of something new that we were doing.
If we launched a new initiative and we felt confident in that, we would add headcount to do that, but we do not really need to add people just to keep growing with the current strategy.
I have a question here around guidance and forecast. How come you are not releasing guidance or forecast? The business has been listed for a few years now.
Yeah. We generally do not think it is helpful to try to put out a forecast and then, essentially, there is a lot of distraction factor around tracking against what we have told the market. I think, our belief is we are always running as hard as we can and we deliver the results that we are able to deliver off the back of that. If you look at our performance over the last several years, it has been pretty continuous and steady progress. We do not put out a forecast. As I said earlier, we always believe we would rather talk about what we have already done and achieved rather than we hope to convince you what we are about to do.
I have a question here for Laavanya. Now that we have activated and drawn down $ 36.6 million of the new $ 100 million facility, how does this asset fundamentally change our cost of funds going forward? What advantages does it give us over our peer fintechs like Plenti, Wisr, who are facing compressed margins?
If we look in terms of the old facility moving to the new facility, what we have said is that under the previous facility, we had a rate of around 12.25%-13.25%. We save, at current rates, around 3%-4% on those previous rates. It is a pretty material amount. What we have said as well is on a $40 million facility, that would save us annually about $ 1 million. In terms of what that does for us versus our competitors, as Jamie mentioned, with the duration of our loans, especially on the Pay Advance product, but also on Personal Loans up to what we are currently issuing, the turnaround is so quick. Our average duration is less than a month, on the Pay Advance product.
When you are looking at that, the funding costs, I guess, are not as material and we are not as subject to it as some of our competitors might be, who have those longer duration, and they are very much subject to rates going up and down. It is different in the way that they do it versus us. Saying that, on our Personal Loan product, we do plan to continue to extend dollar value and duration, so we are up to $5,000 over 12 months, and we do plan to extend that out. We do have plenty of available funds to be able to do that, and that is the reason for us getting this new facility. What is also different for us compared to the previous facility, which was only on the Pay Advance product, this one also includes the Personal Loan product.
That also gives us that flexibility as we continue to scale Personal Loans.
I have a question from Mark. What was the net transaction margin for this quarter?
We haven't released that metric this particular time. What you can do if you're looking for something similar from a cash perspective, is to take our revenue amount as published. We've given you our net bad debts percentage, and that will pretty safely give you a cash net transaction margin that you can use for comparison.
Yeah. Then you would subtract out funding costs on the back of that. Most of the book is Pay Advances, so you know the average duration. We published the book size at the full-year, so you can take a reasonable number off the back of that. But it's a pretty healthy number, obviously.
I have a question from Larry. Has the Personal Loans outstanding amount been disclosed? If not, can you disclose?
We haven't disclosed it. There's no particular reason, we just haven't put the number out there. I think probably the best way to think about that number is if you wanted to do a back of the envelope, that'll get you in the general ballpark. If this number is important to you, please check my math as I do this. But you can look at the last two quarters of originations, because prior to Q4, most of the loans were six month loans, so that's largely run off now. Q4 and Q1, we originated about $7 million, both of those. Oversimplify, let's say they're all 12 month loans. We're still writing other durations, but let's say they're 12 months. That would mean the Q4 loans average age of four and a half months at this point.
Five-eighths the initial balance on a straight line amortization basis would be on the books. Five-eighths for Q4, seven-eighths for Q1. You add five-eighths and seven-eighths. You would say, okay, you have one and a half times that $7 million figure is probably roughly the outstanding. That will get you $10 million or $11 million.
I have a question here from an anonymous attendee. Given the significant earnings improvement, what is management doing to ensure the institutional customers understand the company's profitability and growth trajectory going forward?
That is a great question. I think, obviously, there is a saying that in the short term, the share market is a voting machine, and in the long term, it is a weighing machine. The way that we think about this, of course, there are lots of different companies out there, and we look forward to the results we are delivering being recognized in due course. The way that we think about that internally is, of course, we will do everything we can to stay on the front foot in terms of that engagement and those conversations. But ultimately, our job is to deliver results that are so compelling that they will demand and create the demand, create the attention, that I think the growth and profitability and capability of the company requires.
Can you talk us through some of the acquisition strategies used for Personal Loans? Surely, these are not being marketed to current Pay Advance users, as this would directly cannibalize the current revenue due to end by Beforepay.
Yeah. I would start by saying that as a mission-driven business, we do think a lot about how we make sure that customers have the right choices in front of them. If you are an existing Beforepay customer and the Personal Loans product is the right product for you, and from a risk standpoint, we feel comfortable offering it to you, then you do have the ability to take one out. We are not blocking people from doing that. There, of course, is a substitution from Pay Advance revenue to Personal Loans revenue when somebody does that. The question around cannibalization is actually an interesting one. It primarily comes down to how to think about the probability of default on the Pay Advance versus the Personal Loans for an individual customer.
Actually, if you run some numbers about somebody who is taking out four Pay Advances a year at a certain value, versus taking out a $3,000 or a $5,000 Personal Loans that runs the entire year. Actually, it is quite often a net positive for us. I think that is just one thing to think about when we think about existing customers moving into the Personal Loans product.
We also find, this is a big reason that we launched the Personal Loans product in the first place, a lot of our customers they graduate from the Pay Advance. They get to the point where that is actually not the product that meets their needs. They have more money. They are looking for something a bit different now, and we would hate to see them have to go elsewhere in order to get that $ 3,000, $5,000, beyond dollar loan.
It is not that we are trying to keep existing customers out of the Personal Loans, both for them and for us, it can actually be quite a positive step for them at the right time. Having said that, I think the longer-term growth of the Personal Loans product will run increasingly through new customers. I think to date we have been really through the end of Q4, we were really buttoning down the credit on those new customers because obviously we know the existing customer base very well, but a new customer, it is like with Pay Advance, you have to assess them quite quickly. We want to get ourselves in a point of feeling comfortable that we understood the credit around those new customers. I think we are there or thereabouts.
We have been doing some testing of different marketing strategies, different ways to get in front of those customers. I think we will start to ramp that up at the pace that the data allows us to do. Then of course with Personal Loans, while there is obviously the direct side, we are a very expected value-driven business. If it makes sense to also look at distribution partnerships in intermediaries, aggregators, and so on, of course, we will do that at the right time as well. But I agree with the spirit of the question, which is the strategic future of the Personal Loans product will come primarily through new to group customers.
I have another question from Larry on Personal Loans. Are you observing a tendency for early repayment of Personal Loans?
Not a huge one. There is a little bit of that because the personal loan construct is essentially a straight line amortization loan. What we find is often people will say, "You know what? If I have the option to take this loan out for 12 months, I will do so. It gives me a bit of flexibility." We do not have prepayment penalties, so the tax refund comes in and they decide they are just going to clean it up then. Of course, that suits us just fine as well. It is not material enough that I think you need to fundamentally change the way that you model it out. It is just at the margins we see a bit of it here and there.
Cool. Congratulations on the great results. Can you comment on what it would take for the company to continue on the growth trajectory it is on in terms of people, the product mix, marketing, et cetera?
I think I would divide that question into two parts. One is the company as it is currently constructed, how do we keep moving forward at a good clip with good economics, and what else might change there? For the company as it is currently constructed, as I alluded to a few minutes ago, we do not have to add a lot of people. There is not a huge amount of CapEx. I think as the personal loan book grows, of course, at some point there will be a need for more debt funding. We are pretty well set up to continue the way we have been going and to continue growing in a very healthy way.
We'll always be optimizing and adding more things, but there's not a huge kind of cost burden, investment burden, FTE burden to keep growing the company across the existing businesses that we have with Pay Advance, Personal Loans, and Carrington Labs. Turning to the second thing, I think we'd always rather do the thing first and then tell you about it rather than allude or promise things in the distant future that we're not rock solid confident on yet. As we make more money, that does give us the ability to think about, okay, so we do three things today. When's the right time to introduce the fourth thing? What's that fourth thing going to be? We are, as many of you know, very disciplined around both cost and capital. We're not going to just take a punt and hope something works out.
We'll always want to only put material resources behind something when we feel the right level of confidence to be confident that's a good bet for our shareholders. But I think as these resources become available, as the company goes from strength to strength, of course, we are going to be thinking about what's the next big thing. What would it take to get there? That could involve doing more. That could involve investment, that could involve people, capital, and so on. When's the right time, we'll obviously look forward to doing that.
I think I've got one more question coming through. As the economy is shifting, other lenders are finding the 28 days past due loans are ticking up drastically. How does the business think about these risks whilst trying to grow the Personal Loans product in a saturated market?
Yeah. I'd say first of all, we're finding credit getting steadily better overall. Obviously adjusted for the changes we're doing in limits and the book mix and so on. We're not having the kind of struggles that I think some others are having, which I think is partially just the nature of our product being shorter duration. It's very easy for us to change our credit settings quickly if we need to. Also just I think we have a very strong capability to understand and lend to the right people in the first place by doing some of the deeper behavioral work that we're doing off transaction data. I think we avoid a lot of the pitfalls that are common to this industry. Now having said that, of course, we always do think quite a bit about risk from every source.
Macroeconomic risk becomes increasingly relevant as you get into those longer duration loans. The way we think about that primarily is by looking at what we can see in the data across different shifts in macro situations and how those flowed through to individual lending performance. Even if they weren't as big as some of the shifts that might come up in the future, you can still get a huge amount of signal off the back of those, then you can do scenario work to map that up and down. I'd say at this point, we haven't seen a lot that causes us to believe that, at least for our products, for our customers, and the way that we issue loans, we're very cautious. We never want to be complacent.
We haven't yet seen something that leads us to think that we may need to make a dramatic shift in how we approach originations.
I've got one more question here, Jas. How is the Q2 outlook looking?
I think, broadly speaking, as I mentioned earlier, seasonally, we always expect that Q2 will have some healthy demand, then it's a little too early for this. You see that kind of the credit performance start to change a little bit, sort of mid-November onwards. There's nothing we've seen that kind of looks terribly different to that. I think in terms of the cost base, we continue to run lean. Operational resilience is good. I think Q2 it's going to look like Q1 just with that extra little bit of the seasonal effects, then sort of the continued development growth of the business. We feel pretty good about Q2.
Cool. Thanks. I think we have gone through all the Q&As. Thanks everyone for that. I will hand it back to Jamie for final words.
Great. Well, thank you Shiva, and thank you Laavanya. I guess I will just finish where I started, which is to say that this was obviously a tremendous quarter for us. I think in addition to the results we actually delivered this quarter, again, this is what the sort of thing that we expect going forward. I think the work that we have been doing over the past several years, the changes we made last year, they have delivered a very strong result, and those conditions will continue as well. As we said at the full-year, FY 2027 promises to be a very strong year for us. Just very pleased that all of you are on that journey with us. Thank you very much, everyone. We look forward to seeing you in the Q2 results. You may now disconnect, and thank you very much for joining us.