Hey, good morning, everybody. Thank you for joining us this morning for this update from PharmX Technologies. My name is Allen Chan for Bridge Street Capital, as well as a colleague here, Rod Clarkson. Joining us today is Tom Culver, who is the CEO, to talk about this update. For formalities, this is being recorded and we will address all Q&A after Tom's presentation. Tom, over to you. Thank you.
Thanks, Allen. Morning, everybody. As Allen said, I am Tom Culver. I am the CEO here at PharmX. Today, I am pleased going to take you through our Q1 update. As we get into it and to start, I would like to provide just a brief overview of the business for those who are new to our story, and so you have got a bit of context. We will touch on our full year results before we jump into the Q1 results in a little bit more detail. As we think about our business, PharmX Technologies, we are one platform that runs the connected infrastructure for ANZ Pharmacy. We are positioned at the heart of the industry, and we offer critical infrastructure to the whole network. We connect today 99% of ANZ pharmacies with all major suppliers, technology vendors, facilitating around AUD 26 billion worth in platform volumes every year.
Our objectives are around driving efficient operations, seamless connectivity, valuable insights for both sellers and buyers. We do this through our three core capabilities that come together in one place and work across the supply chain. We have two EDI solutions. Our EDI network is now in its fifth major version. We have our upstream solution called Relay EDI, and our downstream solution called Gateway EDI. We have a Marketplace, which is both a one-stop shop for pharmacy ordering and a new channel for suppliers to distribute and manage products across the industry. We provide data and analytics services that deliver supply chain intelligence through our AI-native data platform with real-time dynamics, supplier and category analytics across ANZ Pharmacy. This solution drives both our products internally, our internal business operations, as well as our customer outcomes, and is increasingly an important standalone revenue driver.
As we look at our strategy, in FY 2017, we moved from the foundational phase to the expansion phase of our Network Plus strategy. The strategy is ultimately to modernize, expand our services, and drive up revenues from the services that we provide. We are doing this through delivering modern AI-supported single platform solution focused on improving outcomes for customers, expansion of our core EDI services, both upstream and downstream, the introduction of our modern e-commerce capabilities to solve the biggest pain points in ordering, and the addition of our advanced analytic capabilities to drive our business and our customer businesses forwards. For PharmX, this strategy aims to diversify and grow our revenues, leveraging a solid base and our unrivaled network position. Today, revenues are primarily generated by a flat account fee connections. These are connections between a supplier and a pharmacist, where revenue is ultimately decoupled from volume.
Under our Network Plus strategy, revenues are increasingly generated on volumes across ordering, Marketplace, and data. As we look back at our FY 2016 results, this was a pivotal year for the company. We put in place a number of key strategic building blocks that facilitate future growth, and we continue to see growth in our core business as well as across all areas of our strategy. Recurring revenue increased across all our product lines and regions. Our gross margin has improved year-on-year, demonstrating the increases in non-rebate related revenue streams. We have maintained a positive EBITDA despite our significant transformation and strategic activities that occurred during last financial year. We have AUD 2.6 million of cash in the bank as at June 30, and we continue to generate positive operating cash flows.
Off this base, our ambition for FY 2017 is for double-digit revenue growth targeted at cash flow breakeven with margin expansion plan for FY 2018 and beyond. This ambition is supported by over 88% of our FY 2017 total revenue already being recurring or contracted. Plus, we have a total of 19 suppliers signed but not yet live, plus a further 23 in final stage pipeline. These are key indicators to growth of our market that secure the majority of our ongoing revenue. As we look at our Q1 results, Q1 was a strong start to FY 2017. Revenue was up 9% on the prior corresponding period, and 24% recurring revenue year-to-date is now volumes based, and that is up from 20% in FY 2016. More of our income comes from volumes based and scales with activity on our platform as per our strategy.
Our Marketplace hit AUD 6.9 million in GTV for the month of September. That is roughly 150% up on the prior quarter and 45% on the prior month. Our Gateway orders are up 12% PCP. Total accounts between suppliers and active pharmacies are up 3% and 4% year-to-date. Board accounts are up 4% year-to-date. Our Relay EDI went live supporting Sigma Healthcare New Zealand Auckland Distribution Center. This is the first agreed work item under our multi-year strategic alliance with Sigma. On partnerships, we formed a commercial strategic partnership with IQVIA. IQVIA are a leading global provider of advanced analytics, as well as forming a partnership at the same time with Hypercube Scientific, a leading data science advanced analytics and technology company.
We will be working together with these two groups to bring increased differentiated solutions to suppliers and retailers across Australia and New Zealand in the pharmacy industry, and these combined solutions we see will be primarily focused on supply chain optimization automation, and it will drive forward our strategic plan to continue to grow revenues from our data and analytics capabilities. Lastly, we also expanded our supply base with new supplier signings, including Pacific Optics, Coolkidz, X Zone. All of these are expanding our Marketplace and Gateway catalog, supporting GTV growth, as well as driving new customers into our network. As I mentioned, our Marketplace continues to perform strongly. In September, we passed 10,000 total orders since launch, and we now process over AUD 6.9 million in orders for the month of September.
Our annualized GTV run rate against our AUD 100 million target with the current trajectory is now well ahead of plan. We've got a number of very strong data points that support the continued growth in this platform. Repeat purchase rate is now 91% in our target cohort and 66% overall. Pharmacies that start ordering, keep ordering. Our total GTV grew 84% in our core cohort and 148% across the base. Our monthly spend per pharmacy rose 58% in our core and 122% across our broader customer base. Very strong metrics as we look at the performance of our Marketplace being one of our principal areas for growth. We do note that we expect average trading volumes to come down a little bit over the following quarter in Q2. This is as we shift our focus to expanding the number of users across platform.
Typically what we see is new users come on, we'll see a slight drop in total average spend, and then that will increase over time as those new users bed in. Ultimately, the results shown on this slide show very strong growth for our Q1 in our key areas. Then we have a number of additional emerging metrics that support this ongoing, including a cart abandonment rate that now sits below 1%, and then a fulfillment rate on orders that come through our Marketplace sitting now at 99%. The fulfillment rate is an incredibly important metric because it sets us apart from traditional ways of ordering, where fulfillment rates on those orders that go through the traditional point-of-sale networks typically sit around 65%-70% fulfillment.
From a supply chain optimization, improving outcomes for our customers, which are pharmacies getting stock on shelves, Marketplace drives superior outcomes than anything else in the industry. Our Marketplace remains our principal long-term growth engine and represents a very large opportunity. With time in market, we're now an emerging pathway to AUD 1 billion in annual GTV run rate, which we believe is achievable on the core platform that we've built today and the network that we've already developed. This is supported by the metrics that we're already seeing. In addition to some of those other metrics that I highlighted, we've also seen a very impressive drop in our days to first order. When we launched our platform, it typically was about 60 days from acquiring a customer to getting them registered to their first trade.
This number has now dropped down to 1.4 days in September for those customers who traded in that month. Very impressive number that again drives up scale and drives up our ability to drive towards that one billion number. As we look at FY 2027, we've got a clear focus on supplier and pharmacy growth, increasing our margins by focusing on key supplier participation. We've already brought online a number of new revenue models this year, which will continue to drive revenues up as well as other areas of innovation in the product. Our key focus of innovation for this year is around automation and intelligence within ordering. We're currently in prototype or testing with small number of users around what we call our Smart Cart solution. This innovation leverages our availability and pricing algorithms combined with ordering behavior to pre-build a basket for a customer.
Ultimately we use data to short circuit or shortcut the need for a new customer to come in and build a cart for the first time by having this already developed for them. This is one of those key innovations that will continue to drive down the time to trade, but also continue to increase the average spend per pharmacy. With the go live of our PharmX, with our vertically integrated EDI solution, Relay EDI, that supports the Sigma South Auckland distribution center, we now have a full vertical EDI Gateway solution, and we're now the only pharmacy-centric EDI solution to run both legs of the pharmacy supply chain. We're doing so with market leading AI supported modern platforms and leveraging that extremely strong strategic and commercial base that we have in our existing EDI platform.
Our EDI Relay platform is an upstream solution that advances our opportunities to work with new customers in new markets and enter us into a new market share opportunity. As we look at the growth and performance in Q1 of our two EDI platforms, our Chemgateway platform, which is the established pharmacy to supplier network, grew orders by over 12% and GTV by 15% on the prior period. Total accounts were up 3% year- to- date and active accounts up 4%. We also signed three new Chemgateway suppliers in the quarter as part of that broader number of suppliers that I mentioned previously. Relay, which is our latest EDI solution, is now live in South Auckland. This is the newer manufacturer to distribution center EDI solution, and we have 10, sorry. Excuse me.
We've got a number of suppliers already signed, with 12 completed their integration, 10 that are currently in progress, and then a total of 40 that we have in pipeline for FY 2027. We have a total of 140 suppliers that we're targeting for this solution in New Zealand before expanding the solution into new areas. The rollout of this Relay EDI leverages our latest EDI version, which is called Chemgateway version 5 or EDI version 5, and it aligns directly to our core strategic pillars. It adds greater value back to customers, it further cements our strong strategic positioning, and it creates opportunity for growth through high-value services, entering new addressable market opportunities, and makes our services expandable into new regions and potentially new sectors in the years to come.
These innovations in our Chemgateway solutions or our EDI solutions will also reduce costs by about 18% for this year, mostly centered around our cloud services cost, bringing that down by 18%, and it further improves our reliability and importantly drives better outcomes for new and existing customers. To close, FY 2026 established very strong foundations for growth and demonstrated strong early traction and success across our key areas. Year-on-year performance remains solid with uplifts in revenue and impressive increases in activity across every area. Q1 showed strong continued growth across those focus areas, which we anticipate will continue through FY 2027 and beyond. As I mentioned, our ambition is for FY 2027 to be double-digit revenue growth targets at a cash flow breakeven, with margin expansion planned to come from FY 2028 and in following years. Thank you. I will leave it to that and be open to questions.
Thanks, Tom, for the presentation. For the guys on the call, there is a Q&A dialogue box where you can enter the questions. I'll have to sort of relay that back to Tom. Maybe the first one for me, Tom, just on the competitive landscape, I guess maybe give some color on that, your competitors, and how they sort of affect you.
Yeah, absolutely. We have an almost unrivaled position in that we have very, very few competitors. As I mentioned, we've got a very, very strong network position with 99% of pharmacies across ANZ. The other side of that network is that we work with all of the major wholesalers, all of the major suppliers, all of the point-of-sale and supporting vendors into the industry, as well as core government agencies such as the NDSS. Puts us in an unrivaled position from a network control perspective. As we think about competitors, there are broadly two. There is one Marketplace competitor, which is both a customer and a competitor of ours. All of their order flow goes through our EDI network. We facilitate their business ultimately. They're small. Our current run rates already exceed their position as far as we understand.
As we're clear on, this market is plenty big enough for two participants, and we have very different go-to-market strategies. There is one small EDI competitor that is emerging in market. This is owned by a company called Fred IT. Their platform is called Medview X. At this point, we see very little threat from this business. They are a small network provider. The way that an EDI platform operates is it is a scale game. You need scaled efficiency, you need scaled connectivity in order for a customer to see benefit from EDI. Whilst obviously we welcome competition in this space, we think it may be challenging for them to build a competitive network position given the tenure, the experience, and the high quality of service and reputation that we have in the industry.
Great. Thanks, Tom. Now, we've got a few come through on the Q&A. The first one is from Martin. You have written and said that the cart abandonment sits at 1%, which is impressive. I think I abandon items in our cart more often than that. Why did the cart abandonment start assuming it was not 1% from the beginning? How do you derive that?
No, absolutely right. That's a great point, great question from Martin. We've been on a journey with Marketplace since we launched it at the back end of November last calendar year. When cart abandonments in our first month probably sat at around 30%-40%, it has gradually declined over the period. It has declined now to where we sit at around, just under that 1% mark through a number of things. Firstly, product innovation. We've continued to improve how the product and the user experience works. Supplier and participation improvements.
We have more and better suppliers with more and better promotions, with more and better data, which provides more confidence and certainty that when somebody is coming in and building a cart and then checking out, that they are getting best product, they have confidence that the product's going to be delivered and it's available, and they're getting access to the best pricing through best promotions. Then lastly is time in market. As with all new businesses or new platform solutions, we need time in market to improve those things, but also for people to build trust and also for then our existing users and our advocates to start bringing in new customers in a more organic way. We believe that's also now what we're starting to see.
Active participation and control and input and work from our business, but also time in market and a highly satisfied customer helping to keep that number down.
Thanks, Tom. Our next question from James. Can you comment on the potential revenue to be generated from special projects from Sigma and also possibility of onboarding Sigma onto the Marketplace?
Yeah. At this point, we have no further update from what we previously announced on Sigma. The first work item that we have with Sigma, where we can discuss revenues, is our New Zealand distribution center solution, which focuses around our Relay EDI. We previously published figures that we expect this to be generating around AUD 700,000 ARR by year three after launch. At this stage, we are on plan. We are onboarding the suppliers that we have expected. We are on time in terms of delivery and rollout. We have no further update. In terms of other solutions that we are working on with Sigma, we have a number of work items that are in play. At this point, we do not have a position to talk about them openly.
One of those is obviously an anticipation or a hope that we have them on our Marketplace, which is an area that we are working on with them currently. We will update the market more formally as soon as we can on that one.
Thanks, Tom Culver. The next question, David, I am assuming he is referring to the Sigma footprint, but obviously, it is
An overall
An overall, yeah, overall footprint. Maybe talk to, I guess, the upside from here. What is the total TAM and SAM and what is our market share currently?
Yeah, absolutely. I think at least the perception, I guess the negative perception of the business with the level of market cut-through that we have is that there is no room for growth. We have already got 99% of pharmacies, and we have already got all the major suppliers. While at a fundamental level you would say, well, we are already at our ceiling, the way that we look at our business is that there is still a huge opportunity for growth and expansion and revenue increase. As we think about growth, there are still more suppliers that we can bring into our network. We have about 200 suppliers. We have most of the major ones, for example, all the wholesalers. There are a number of direct suppliers that sit outside the wholesaler network that we do not have.
We estimate there is probably around 500 suppliers that supply into pharmacy across the various groups. There is certainly opportunity for growth there. As we think about the number of pharmacies and the fact that we already trade with 99% of them, yes, we are not going to acquire new pharmacies, but certainly what we can drive is more trade through pharmacies and more trade through a greater diversity of suppliers. Those two things drive up our revenues, particularly on our existing Gateway EDI platform. We then think about how we change our revenue mix, and that is ultimately our key objective. It is a principal area around Marketplace, it is the first solution that we have live in market that ties revenues directly to volumes. We earn commissions on our Marketplace transactions. Our Relay EDI solution, which has gone live in New Zealand, is also a percentage-based solution.
Again, a significant move there from our core services. We are currently migrating suppliers from our traditional fee-based contracts, taking up more services, and converting them to commission-based contracts. Then we have additional revenue sources. I mentioned data and analytics being a key one. We have, for example, advertising as a revenue source now on our Marketplace. Then we continue to work on what we call ancillary revenue drivers that typically sit around these type of products, payments being a good example of an area that we are looking to now start to focus on. We see an enormous amount of opportunity for growth in this business, within this vertical and within this region.
If we then think more broadly, there are of course opportunities for us to potentially step into other markets or other sectors, but at this point, we're not seriously considering them because we think there is so much opportunity for us in front of us.
Thanks, Tom. Maybe an extension from that for the next question on the total TAM and SAM, I guess, how realistic can you sort of what can you capture out of that market in a three or five-year term?
Yeah. This specifically relates to our Marketplace platform and the number of transactions that we're pushing through that platform. As I mentioned, we now have a clearer path towards one billion being our most realistic point of capture. We haven't publicly disclosed to market the timeframe of which we think we can achieve that one billion as yet. We will report on that probably more likely closer to half year. But we certainly think it will be within that near term set of those numbers. So within three years for sure.
Oh, and then again, there's another question from Artem on fulfillment rate. I will read it. So you've also mentioned that fulfillment rate is 99%. I'm assuming it's a cart abandonment rate is one. Fulfillment rate 99, together you got 100, quite poisonous. How do you measure fulfillment rate? Where would you start and how you could get it?
Yeah. So fulfillment rate, we think about this as availability of stock, the completion of that order for the stock that is being requested, and then the delivery of that order in full. What our Marketplace does that differentiates from traditional ordering channels is that it captures data from across an industry. We have a combination of indicators, both algorithmic, which is our own algorithm, as well as direct data feeds from suppliers, which tell customers whether a product is available, at what quantity it is available, and then obviously pricing and promotion around availability. Now, this data sounds very straightforward. It sounds very obvious that that is what a Marketplace should be delivering to a consumer. But typically across this industry, that data is not readily available.
Most other parties don't have the consolidated view of an industry that we have, nor do they have the technical capabilities that we have to drive the data, particularly the algorithmic data, which gives confidence in stock availability. What this means is that typically when a pharmacy orders on our Marketplace platform, they have a 99% confidence that what they are ordering is available in stock at the quantities that they want to order it from the supplier or wholesaler that they want it to be ordered from and fulfilled by. They have confidence that that order is going to turn up the next day or the day after as planned. What we typically see across the broader industry is that fulfillment rates are closer to, as I said earlier, between 65%-70%.
The reason for that is that there is a lack of visibility in if stock is available, if stock is available in the quantity that is being requested, and if it can be delivered in the delivery window in which it is required. It is the competitive advantage and the quality and the delivering to customer expectations and solving their problems that sets our Marketplace apart from the traditional ordering channels.
Great. Just another question on the Marketplace. I think we may be able to just to confirm, are the wholesalers in Sigma joining the Marketplace at some point?
Yeah. At the moment we have one wholesaler on the platform, CH2 or Paragon Care. We have talked previously about the continued expansion of that business. We recently brought on their health food business onto the Marketplace, which was an expansion of 5,000 additional products. We have also just brought online their exclusive promotions. These are promotions that they only currently provide on their internal platforms. We are now making them available across our Marketplace, and we are the only provider to do that with CH2. In terms of new and other wholesalers, yes, we have targets to bring on other wholesalers. We will update market as soon as we have more certainty of those. But we do expect one more to come online this year.
Thanks. Two hires you have had is the Chief Revenue Officer and the Chief Product Officer. Can you maybe give some color on these two new hires and obviously their strengths and how they are settling in?
Yeah, absolutely. The top line is they have both been fantastic hires for us. These are two hires that we would not have been able to bring into our business probably 18 months ago. The caliber of them, the experience from which they have, and the level of quality, sophistication, and value that they have been operating at in previous industries is a real win for us to bring them into our business. Our Chief Product Officer, he was previously Chief Product Officer at a very similar business to ours on the private side, called Ordermentum. They effectively do what we do across EDI Marketplace payments, but they do it in hospitality. That business grew to about AUD 70 million in revenue, I believe, year on year, and a lot of that was led by TK, who is our Chief Product Officer.
He comes in on day one with a very strong set of skills and capability and effectively a playbook for our business, albeit a different industry. He also brings a very strong level of sophistication in terms of product planning which gives us greater confidence and clarity in what we are doing, not just for the next two quarters, for example, but for the next two or three years. That becomes very important for us as we start to build out our longer term strategic thinking. As we think about our CRO, our Chief Revenue Officer, he has joined from running Asian regions for NielsenIQ and other businesses. Very senior individual who is used to running Marketplaces, who is very clear on how to run and build data-based businesses as well.
He brings an enormous strength to us in terms of our enterprise sales, our sales automation and systemization, and our ability to scale. We are already seeing the impacts of that. You can almost correlate the uptick in our GTV on Marketplace with our new CRO joining. Coming in, doing the basics very, very well, and then starting to lead us forward as we think about much stronger growth in our business over the years to come. We are very, very happy with them.
Thanks, Tom. Next one is Royce on the numbers. Given the 9% sales growth versus PCP and the fact Marketplace was launched closer to Q3 FY 2026, should we expect the sales growth rate versus PCP to pick up again? Could you also provide investors with a sense of the company's comfort around the balance sheet, cash balance, et cetera?
Yeah. Apologies, I am going to be a little bit vague around our expectations for percentage growth for the year. We do not forecast, and we do not put those numbers out to market. As I said, we are certainly expecting double-digit growth for the year at cash flow breakeven. I think the first quarter at 9% increase is a very strong indicator of where we are expecting to go going forward. In terms of company's comfort around balance sheet, i.e. cash. From our perspective, we are very comfortable where we sit at the moment. For those who followed our business for a while, we are a very prudent enterprise. We look at growth and scale within our own means. As I mentioned, our goal for this year, despite our continued investment and our continued growth in our business, we expect to be cash flow breakeven.
At this point, we are in a very, very comfortable position.
Great. Thanks, Tom. I think we addressed Artem offline one. Joe, did you
I wanted to just ask Tom a little bit more about the new Relay EDI upstream, and if you could give us a bit of color around the opportunity in that upstream space, specifically around are you taking business away from other players in that upstream space? Also talk about the opportunity to do that segment of the business in other offshore markets.
Yeah. Fantastic. Good question. In terms of opportunity, it effectively mirrors the value of the GTV network that we operate in downstream. It is mirrored upstream. That means we are potentially looking to operate in a very, very large total GTV market space of +AUD 20 billion. That is certainly the addressable market as we think about the pharmacy space. In terms of the relevance of that and the opportunity for us within our business, as I mentioned, as we are scaling that solution, we are scaling that solution on a percentage-based fee versus our traditional account-based fee. So we'll effectively be looking at a new AUD 20 billion total addressable market at a percentage-based level. So a very, very important opportunity for us.
In terms of competitors in that space, that will enter us into a new competitive landscape, and we don't currently have the same strength and network position as we do downstream. So typically, you'll see businesses like SPS Commerce, for example, who are globally very strong EDI providers of upstream services. Where we are unique and different as we see ourselves within this conversation is that independently, our upstream solution is very, very strong. It is modern, it is AI forward, it is very low cost to run, and therefore quite low cost to serve for customers. But most importantly, when you combine our two EDI solutions together, we become the only provider that operates both upstream and downstream.
Now, that becomes very, very important for a supply chain manager, particularly a supply chain manager that is both working on the supply side of a business, say a wholesaler, as well as operating on the retail side of the business. The reason why that becomes important is because it gives them a single partner to work across the supply chain, reducing costs, reducing overheads, and removing any inefficiency. It gives them a single point of data across the entire spine of the supply chain. For the first time in one place, they will be able to see what happens from a store to distribution center to manufacturer. To put that into context, let's say that you are a retailer and you are looking to drive an improvement in your out-of-stocks.
Let's say you've got too many out-of-stocks of one particular product or a range of products. Typically, that is going to come down to a number of things that happen throughout the supply chain. At the moment, you have to piece together all of those data points, all of those reasons, and understand them in full before you can solve that problem of why that product is out of stock, and ultimately why that store has an empty shelf. The importance of that is an empty shelf leads to a lost basket. You could have one item missing that's worth AUD 5, but typically what that means is you've lost AUD 40 from that customer from a basket perspective.
Stitching these things together allows the supplier and the retailer for the first time to be able to connect the dots to fully understand where improvements need to be made in ordering patterns, in delivery, in product supply, and sourcing alternatives. It allows them for the first time to have a single data point that allows them to hold their suppliers and their manufacturers to account, to ensure that you get those improved supply chain efficiencies. Ultimately, we think about our solutions together as being the most critical driver here. To your last point of the question, what does this mean from an international perspective? Our focus is very much on pharmacy. We think additional opportunities exist in other markets within pharmacy, particularly in markets that have what we call a very kind of fractured ownership structure, like in Australia.
Whereby there are multiple suppliers, there are multiple wholesalers, there is a break between the wholesaler and the retailer, and then at the retailer side, there is fracture in the regulations. For example, in Australia, you have to be a pharmacist to own a pharmacy, and you can only own up to five pharmacies generally. This means you've got an entire market of individual owners and individual decision-makers. There are a number of markets globally that reflect the very same dynamics that we have here, and it's those dynamics where we think our solutions will be incredibly strong. Having said that, we have got a lot of work to do here first. There is a lot of opportunity, as I mentioned, in terms of upside for us to capture in this market.
Whilst we do think international is part of our longer-term strategy, I am not sitting here today saying that is something that is going to happen this quarter. That will be a future item for us.
Thanks, Tom.
No, that is good.
I will just bundle this one in together. You mentioned about the wholesaler. Is that expected to come this year, calendar or financial?
We are targeting this calendar year, but as I say, that is a target and ambition at the moment. We have still got a little bit of work to do to make sure that it happens.
How should we think about revenue and profits when we get to one billion GMV?
Yeah. I mean, typically, as analysts look at our business and the understanding that our Marketplace is a percentage-based model, with fees that typically sit between 0.5% for our very large customers, so for example, a wholesaler, all the way up to, say, 7% for a small independent supplier. It is the application of an estimated take rate across that GTV that will get you to a revenue number. At this point, we do not disclose it or give guidance, outside of what I have just said. We also think about longer-term though as well. As I mentioned, there is obviously take rate opportunity or percentage rate opportunity on the GTV that goes through Marketplace, but we also now start to think about those ancillary revenue streams. Things like advertising, things like payments that over time drive up that total blended take rate.
Whilst the one billion GTV number is our ambition to achieve, I will not give any details today on what that will do from a revenue perspective. But as I think you think about long-term, revenue would be expected to grow over time on that one billion number, as well you would expect that one billion number to grow itself.
Thanks, Tom.
Tom, I am also interested a little bit more color around the opportunity in data and analytics and how you think about the opportunity to grow that part of the business. Can you give us a bit of help around what that might look like?
Yeah, absolutely. We do not talk too specifically about our additional revenue streams at this point. As we think about data and analytics, we effectively think about it with three customers. One is us as an internal customer. Data and analytics becomes incredibly important for us as we develop products and as we differentiate products. As I mentioned, in the rollout of our Smart Cart solution, in our Marketplace. This is a differentiated solution which is driven by our data capabilities, so it becomes very important to us. The second string to that is how do we use data to engage our supplier base, to bring on new suppliers, and to migrate suppliers onto different revenue models and different contracts? Data becomes incredibly important for us. So it is a very, very powerful tool as an internal customer.
As we then think about commercialization externally, we have within industry customers, so we think about suppliers primarily at this stage, focusing on supply chain optimization and efficiency is a very critical area within this industry. Then we start to think about the retailer secondary at the moment. How does the retailer use data to inform better supply, inform better purchasing decisions, inform better procurement decisions? Lastly, we think about external customers. Who are customers who are external to our industry where this data is of value? This could be a data aggregator platform, it could be a research house, it could be a local government agency, as an example. Principally, that is how we think about data. In terms of how we make money out of data, obviously we drive our own internal product outcomes and supplier migrations as per our strategy.
We drive revenues directly from our suppliers who typically pay monthly subscription fees to access data. That is the similar model to our external customers as well.
Great. Thanks, Tom. That was the last of the questions. There are a few there we will probably take offline, and I will answer them back to them individually. For on the call, thank you again for joining. Tom, thank you again. This is being recorded, so it will be available per your viewing post. Tom, till next time, thank you very much.
Thank you all much.