Good morning, Europe, and greetings from beautiful Helsinki. Welcome everybody on our earnings call for the first half of 2022. I'm pleased to be announcing our results for the first half and taking a short look at the future as well. Our agenda for this call is that we'll be first having a short introduction to LeadDesk, the company and the product. After that, we're gonna be looking at the highlights of the first half, as well as then diving into key figures with our CFO, Paul Stenbäck, and then looking to the future for the second half. After the call, we'll have a fireside chat hosted by Henri Palomäki, and during that chat you'll be also questions and answers will be done as part of that. Without further ado, let's go the call.
I said here on the call with me, I have our interim CFO, Paul Stenbäck, who will be going through the deep dive into the figures, and myself, I'm Olli Nokso-Koivisto. I'm the CEO of LeadDesk. LeadDesk, the company and the product. LeadDesk is a super efficient customer conversation platform where you can host your customer communication one-to-one in a very efficient manner, with the top-notch tools. We are a European team and a European company with some 60% of our revenues coming from the international markets and with offices and subsidiaries across Western Europe. We are truly a European company and a European team. While we focus our market efforts on the European market, we are a global platform, meaning that we can service the local customers across Europe as well as global customers and Fortune 400s across the globe.
Currently, we have some 60 countries where LeadDesk is being used, so really a global platform. We focus our sales efforts into Western Europe, but at the same time we can service the globe. Going deep into the product, I said we are the center of customer communication and conversations. In practice, what that means is that as a consumer, I can have my conversations with the channel I choose, be it Facebook or other social media, SMS, call, any channel and our platform takes care of all the communication and all the technical parts of the communication so you can have a seamless experience however you want to communicate. For our customers and their employees, we provide a host of user interfaces, Omni for omni-customer service, Outbound for sales, Mobile for the field, and Talk for the integrations with your CRMs and ticketing systems.
On top of this, we also provide Jenny, our conversational AI, that can have these conversations automatically and efficiently. Conversations with the channel the customer chooses, create interfaces for the different use cases, and then, of course, to service the customers, we need to have the integrations to the backend systems. With these integrations, the employees of our customers, the customer service agents, sales reps can then efficiently service their customers. As we know, the number one problem at the moment and the number one problem I hear from our customers is that they are not able to get good employees and they are having trouble retaining. To that end, we provide workforce engagement solutions, meaning we provide solutions which can benefit the sales reps and the customer service agents in their work, as well as then providing team leaders, managers, and so on, great tools.
This is becoming more and more crucial as contact centers and customer conversations are becoming more complex and employees harder to hire and retain. That's LeadDesk and the product in brief. Now jumping in to the first half results. We are making progress towards our target. Our target of EUR 100 million in revenues, we are making great progress there. We set some goals for 2022. Firstly, organic growth is super important for us. To that end, while there was very much positive development, especially for example in Spain, also in Finland and some other countries, at the same time, the energy segment in Europe has been horrible in the second quarter. Across the continent, we've seen the energy segment in a huge decline, which also then affected our results for the second quarter.
Of course, now we know this, and we've been mitigating this and moving on that front and mitigating the problems. This did have an effect on our first half's and especially the second quarter's results. The second thing that is maybe a smaller hiccup but a small hiccup still was the enterprise deliveries. We are there one or two months behind our own schedule. On the positive side, we leaped, for example, from July to August, from 40%-47% of revenue already on those projects. They are well on their way, and we are looking forward to closing them by the end of the year as well.
Well on our way there and, the risks on the enterprise side, I would say are now only normal operational project risks and, largely already, mitigated and, are moving to target. We also said that we will be working on the product. We launched our new outbound UI, so this is for the sales side. Now already, after a few months, it's being used by thousands of agents across Europe. A lot of good feedback on the modernized UI. We've also now worked on the integrations and all the integrations the company, meaning the, M&A integrations, have been finalized. On a positive note, while the market is of course what it is, but for M&A, the market now seems a lot warmer than it was in the beginning of, Q2 and when we were talking about Q1 results.
The M&A pipelines look a lot better now. M&A is again happening on the market. Lastly, partnerships with Salesforce. We've now signed a partnership with Salesforce, and we look forward to publishing our app in the AppExchange during the second half of the year. We've already published an app on Zendesk Marketplace for ticketing, and now we're publishing it also in AppExchange for Salesforce. We are taking also the integrations to the next level in that end. Moving on to the figures, I'll give it off to Paul.
Thank you, Olli, and welcome also from me. As a growth company, revenue is our most important financial KPI, and we've seen significant growth over the years, both organically and through M&A. In the first half of the year, we grew with just below 15% to EUR 13.8 million in revenue. Roughly half of the growth can be attributed to the GetJenny acquisition, which was made in the second half of last year, and the second half from organic growth, which was particularly strong in Finland, Sweden and Spain. As Olli mentioned, organic growth was negatively impacted by particularly two things, the energy sector and the uncertainty there, particularly in continental Europe, and a slightly slower than expected ramp-up in our enterprise deals.
In addition to revenue, our two other key KPIs are annual recurring revenue and profitability as measured by EBITDA. Annual recurring revenue grew with roughly 22%, slightly faster than revenue due to the fact that
Some of the large signed enterprise deals are already reflected in our ARR reporting as it reflects the signed contract base, whereas the revenue ramp up is still in process. Our EBITDA margin decreased from roughly 15% in the first half of 2021 to 10% this year, driven by our growth investments in the enterprise segment from the second half of 2021 onwards. Compared to the second half of last year, profitability improved slightly. 50% revenue, 22% ARR growth and 10% EBITDA margin. Back to you, Olli.
Thank you, Paul. Moving on to look at the rest of the year.
We're looking still at strong organic growth, and we want to focus on getting the energy segment problems behind us and moving on to a strong organic growth track there. At the same time, we look forward to extending our offering. One of the key things here is to look forward to the launch of the latest talk on AppExchange in Salesforce, and this also, of course, reflects our commitment to ecosystems and partners as well. Being then available in two major ecosystems, the Salesforce ecosystem and Zendesk ecosystem, one for ticketing and one for CRM. As said, also the M&A pipeline looks a lot better now than it did at the start of the quarter, and this is something that we hope to also continue on working and getting results on this side as well.
For our outlook, we keep the outlook as it is, but we do define also that we see that we will probably end up at the lower half of the forecast between 13% and 18%, and this is driven by the energy sector. In continental Europe as well as of course in the Nordics, the energy segment is in a huge distress in their business side, and that of course then reflects service providers also. At the same time, we do look forward to closing those enterprise cases and finishing off the deliveries there.
That is also something that on the revenue side then is postponed as our business is so that we charge on a month-by-month basis and of course, if one month is left of this year, then it's one month less revenue for this year. The projects in themselves are solid. Looking at the investment story, we see that the investment story remains. We are strong growth company and especially on the international side. International side of business is growing fast and of course the Finnish business as well. Decline in one sector doesn't take away from all the other segments. We have a huge number of segments we provide for. We are stable and profitable. We are efficient, and we provide very effective tools for our customers.
At the same time, we must remain innovative and pioneering, and this is something that we excel in and our customers thank us for. I'd like to thank you for the participation on the official part of the earnings call. As said, we will continue with Henri and Paul as a fireside chat, and you will have chance to ask questions during that. Thanks and see you in just a sec.
Welcome to LeadDesk's earnings report and this fireside chat part. My name is Henri Palomäki, and I come from Sijoittaja.fi, which is an information service for investors. I'm here to ask some questions from Olli and Paul, and in case you have any questions during the chat, just raise your hand in Teams and we will let you ask questions. Thanks for the presentation, Olli and Paul, but once again, in your own words, how did LeadDesk perform in the first half and which were the key milestones that you achieved?
Thanks, Henri. Looking at our first half and especially the second quarter, we had, of course, some hiccups in the energy segment, but overall I thought our team made a super performance with all these changes.
That we couldn't really affect with the energy prices, well.
Yeah.
going through the roof in Central Europe and the energy companies in distress, that's not something we could affect. Now we, of course, are working hard on mitigating that. Also, the other thing I'm really thankful for is our team for being able to hike the onboardings on the enterprise side and achieving 47% deployment as measured by revenue coming from those customers then in August.
Yeah. Let's talk a bit more about energy sector and enterprise sector a bit later, but first about the numbers. In your strategy you emphasize growth a lot and, now you've gained 14.5% revenue growth, and with this pace, growth level it would take like 10 years to get into your targets in long-term targets EUR 100 million. Are you satisfied or how satisfied are you with the growth rate at the moment?
Well, looking at the growth rate, of course, like we have to look at the, for example, that we had the energy segment declining, I see that as something that we, well for example, looking at Finland just, now we see energy companies going bankrupt. It's not something that we can affect. Looking at all the other segments which we have a high focus in, energy segment is just one small part of our business, there is, like, no large risks identified there and we are keeping our growth base there. Looking at our growth drivers, if we look at the countries driving our growth, as Paul mentioned, Spain, as one huge market. We see through that business we actually see also traction in South America.
Sweden, which is an old market for us, and we can see that, for example, the Loxysoft deal I think has helped us there gain market. Finland also one of the growth drivers. Finland one of our, well, it's our oldest market and still we are able to grow here. I think that really speaks a lot for our team.
There's a question from the audience.
Perfect. I may start. Can you hear me well?
Yes.
Yes.
Great. It's Veikko Silvasti from Danske Bank. I have a few questions. Let's start with the weakness in the energy sector and trying to understand what's happening there. Could you please remind us how your billing goes? Is it like per user per month? And what's this weakness you're seeing in the energy sector? Are you seeing lower number of users or have you actually lost customers in this sector?
Yes. Thanks. Very good question. Our billing is based on per seat, meaning one concurrent user. Typically there's a minimum level of users and then the customer has an option to have a flexibility on top of that. What we've seen in the energy segment is that basically they are limiting all their costs, meaning that they are declining in their customer service operations as well as then they are basically stopping all sales. With energy prices hiking in Central Europe 20% in the beginning of this week, for example, they.
Mm
They don't sell anymore. They won't even sell maybe to only the existing customer base. Now, for example in Finland, just read the news that the energy companies are moving only to the spot rate deals, which of course then has a big impact there. On losing customers, we haven't lost customers on that front except for bankruptcies, which have happened across the continent and Nordics.
Typically how that works is that it might not be the actual energy company that goes bankrupt, but it's also the outsourced call centers. Energy companies might have their own outbound sales workforce, and then they have also outsourced some of their business. These are very particularly at risk here.
Okay. Clear. Thank you. Have you seen a lower usage in other segments as well or is energy an outlier?
Here energy is an outlier. The other segments we haven't seen change.
Okay. Clear. Do you see a risk that there are multiple bankruptcies to come now that we're going into worse economic situation? We probably have had some opportunistic entrepreneurs maybe starting up some call centers using your software. Do you see a risk of, you know, increased number of bankruptcies?
The only sector we've seen on this risk is the energy segment. On the other segments, we haven't seen any difference. Previous recessions that we've seen, of course, they've been a bit different type of recessions. But from, based on them, as I mentioned on the call, the limiting factor for customers is typically the employment market. If they are able to secure more employees, they will typically do that, and that then raises the amount of seat usage per customer on our end.
Really, maybe to elaborate slightly more on that point. Although the energy sector is an issue right now, for many customers, this is really a business critical software that they simply can't operate without. For example, taxis need taxis to be booked also during recessions. That kind of mitigates slightly the risk if the economy would turn significantly worse than it is right now.
Okay. Could you remind us how large is the energy segment for you, as a percentage of revenue or customers?
The energy segment in itself is not a major part of our revenues. It is one part in many, but we have telecoms. Telecoms, for example, is larger for us than energy, for certain. We have the public sector nurses and other public sector organizations, home security. There's a lot of other segments. Energy is just one part, but clearly we see that the energy segment has been great, and like it's just the amount of like change in the energy segment has been large, but the other areas have been able to perform.
How does the-
Okay.
Sorry. How does the importance vary between different geographical markets?
Energy segment has been like in. If you look at the Netherlands, for example, and Germany and then mainly Finland, Sweden, because of course we have a high penetration of market foothold in those countries.
Okay. Clear. Final question from me on the M&A landscape. What's happening there? Are your competitors being active, and acquiring good targets? Regarding that, with your current balance sheet, what kind of firepower you have for additional M&A?
On the market landscape, there have been no major actions on that end. We're very quiet for quarter two. Now we see that there's more activity on the sales side and there's more opportunities now available. Of course, we have to be very diligent on the balance sheet and making efficient use of our equity and capital. Now the market is still clearly open compared to the second quarter.
Maybe another point to emphasize here on the M&A market is that back a year ago when the tech stock market started coming down, private valuations didn't come down as quickly as the public market, which is common. What that created for us is a situation where the private targets still had really high valuation expectations. The public market and us using our equity as part of the purchase price was harder to do. This we especially saw in the last months of last year and first quarter of this year. There has been a shift in that landscape.
Now also the private valuations have come down and during the Q2 both we've heard it from other investors and the discussions with potential targets that these are now more in line, which makes it easier for a player like us to do M&A. That has really kind of improved our M&A pipeline as well.
Okay, good. Thank you.
Yeah.
That's all from me. Thank you.
Okay. Thank you. The next question comes from Jaakko.
Hi. Good morning. It's Jaakko Tyrväinen from SEB. Would like to continue still a bit on the energy sector. In your own analysis, what would need to happen in the markets in order to get back the kind of the lost revenue you are seeing now? You mentioned it's EUR 400,000 on an annual level. What would need to happen in the markets? Should we see declining prices or stabilizing prices or what is your take?
Well, I think you will see, first as I think, if you have stable futures prices on energy on the secondary markets, to my understanding, future prices for energy are not a very good market at the moment on Nasdaq Helsinki, for example. When you see those markets stabilizing, meaning the energy companies being able to somehow mitigate their own risks, that will enable them to come back to the consumer market, then in return. Then we don't see like there being a fundamental problem between us and the energy segment. We see a problem in the energy segment not being able to deliver to their customers and there being too much risk and that is the fundamental problem.
Another thing to emphasize. It's exactly as Olli said, but so what I mentioned earlier about it often being about outsourced call centers, so these are typically pretty small and very entrepreneur-driven and flexible companies. It might go down pretty rapidly as it partially has done now. If we were to enter a situation where the market stabilizes, energy companies want to sell again, and that can pretty rapidly ramp up sales in these outsourced call centers again, leading to increased use of our software as well.
We're of course hoping that the market will recover and that could also pretty rapidly improve our situation as well in that specific market.
Right. Thanks. That's helpful. Your growth, and especially the organic growth, which was just 7%, in the first half. What is your understanding how this compares to the SaaS operator or SaaS market growth in your own field? How you been, in terms of the markets, during the first half?
Our understanding is that there's two separate markets there. The Nordic market where the cloud penetration is. If we look at Frost & Sullivan report, for example, they see that the SaaS penetration is, cloud penetration is really high in the Nordics already. Here I see that we are also a market maker in the sense that we are growing with the market. Looking at Central Europe, especially then, Spain as a growth market where we also see percentage-wise, the highest growth. I see that we are locally growing above the market. Of course it's only a part of our revenue as it is only a few years old for us.
Okay, thanks. Perhaps looking towards the second half of the year and next year, how is your current sales pipeline looking? Meaning especially the enterprise segment clients, where the deals are typically tilted towards the year end, and then we saw quite a few deals in the end of last year. Will we hear some news during the second half of the year?
Our pipeline on the enterprise side looks good. Of course, now we have to see how the market develops. We don't have experience from recession with the enterprise deals yet, as that is a new segment for us, only a few years old. On the general side, I see that our pipeline is good on the enterprise side and we're progressing well. Especially the Salesforce partnership has really been taken very well on the enterprise side where the usage is much larger than on the SME where we don't see Salesforce at all on the SME market. These factors I think are in play also in the second half of the year on the enterprise segment.
Okay, thanks. My final one relate to the number of employees which remained flat versus six months ago. Was this planned or have you experienced higher attrition levels? A follow-up on that one, do you have enough sales personnel or staff in place in order to deliver the aimed growth looking towards the year end and next year?
Yes. When looking at the SaaS business, it's like, it's like renting apartments. It first needs investment to get the apartment renovated, and then you get the tenant, and then as the tenant remains and we have very good retention, so the tenants remain a long time, then the cash flows are a bit later. Now, when we see and saw that the energy segment was in trouble and we didn't know the risks, naturally, we looked at our cost base and then cut back on hiring. We did not hire as much, and due to that then also our employee count has remained largely stable. Of course, now that we've seen the risks and we know and can, like, we can quantify the risks now.
We can of course then going forward look at the headcount, for example, again and so on. While of course we do want to keep to our promise of being profitable and our margins are very important to us, so we have to do it efficiently and taking of course into consideration the general market risks that are present in this time in the European market. Here I think it's very important to remember that we are much in the central European markets and much of our investments are in the central European markets and for Finland I can like safely say that we are like we've seen. We haven't seen the crisis here as they have seen it in central Europe.
Our employees are figuring out how do they keep the heating on during the winter time. That's the kind of problematics that people are thinking at the moment in Central Europe. We have to be cautious in this kind of environment, and we can't be over-investing at this point before we see a little bit further.
Okay. Excellent. Thanks. That's all from my side.
Thanks, Jaakko. Antti.
Perfect. Thanks a lot. Hi, it's Antti. Antti from Inderes. Only a couple of questions. Firstly, starting from your guidance. Obviously there's a lot of economic difficulty happening and, you know, no one really knows how it's gonna turn out for H2. Can you walk us through the scenario you have behind your guidance? How negative is your expectation for the general market, that you expect to have, in your guidance?
I think we've kind of seen, as Olli has explained, we've seen quite a lot of changes in the energy market in particular. I think that's the one thing. Or number one that's had a significant impact. Then the second thing being the enterprise ramp-up of our enterprise projects. If we look at this, the latter one first, so I think that one is in a pretty good shape right now, and now we just need to execute and deliver on it in the second half of the year.
With regards to macro, I think that's probably the bigger kind of question mark, and that's harder, obviously, to forecast as well. Having said that, we have some resilience in our other sectors as we discussed. At least based on earlier recessions, we haven't taken massive hits on our revenue from other sectors. Then with regards to the energy in particular, I think quite a lot of the impact is already felt and in there. At least I'm hopeful that that this is. We've seen the worst of it and but obviously the future is hard to forecast. Does that at least partially answer your question?
Yeah, I think so, yeah. Would it be fair to say that you are taking in expectation of certain volatility in the economic sort of overall situation?
Correct. Correct.
All right. Gotcha.
Yeah.
On the enterprise deliveries, I think, like, the jump from 40%-47%, and of course we are now even further on those. Much of that, we've been also waiting for the customers quite a bit on this, and now we are waiting for many on many of the projects. It's just about the training on the customer side and these kind of things. They are in good hands at the moment.
Good. I could actually follow up on that and the overall schedule you see for enterprise deliveries. Remember you've mentioned before that, you know, to get to the signing, it might take a year, even a year and a half of discussions with the customer. Now then taking the implementation, getting the software into use might be up to a year still after that. How much room for optimization do you see in this entire kind of sales and implementation pipeline? What would be a good level to have in enterprise?
On the sales side, I think it's pretty universal, and it's hard to go faster than that as that is relating to the internal procurement processes of our larger customers. On the other hand, the delivery side, I see that we do have better opportunities to somewhat hasten the pace. The other thing I think that we've realized here is that we have also possibilities to, like, in a win-win scenario also monetize these situations and make the deliveries faster by providing certain expert services. For example, delivery managers on the customer side. Experienced delivery managers for the customer to hire to make it faster on their side.
As many of the problems we see are relating to replacing 15-, 20-year-old systems with business processes of the same age and then moving to a modern cloud system, which offers then, like, hundreds of more opportunities than typically. There are so many things to think about and so many opportunities that then bewilder the customer side and make the projects a bit slower than we would hope for. Anyways, I think, like, onboarding 4,000 enterprise users across the globe in under 12 months is still pretty good performance.
Yeah. To add to that, I mean, it's good to remember the other side of the coin that then when we like for example, this one energy sector customer that we've also announced late last year. They replaced a 20-year-old on-premise system. Now they're moving to the cloud with us, and we obviously hope and expect that they will be our customers for another 20 years. Good retention rates then when we have them on board.
Good. Thanks. Some optimization room still in the implementation side I guess would be there. Yeah. I'd also like to get your perspective on I guess a very fundamental dilemma for a software company. The decision between enterprise and SME and where to put your focus. Now since the enterprise side, it does take a fair amount of effort. It takes a long time to get those customers in. How do you see the investments you're putting in SME versus enterprise? Does it currently with the current pace of enterprise implementations justify the investment in enterprise side? How do you look at this capital allocation? Overall, how you see this dilemma?
On that as well, if you're able to optimize enterprise side, would that change the situation in a significant way?
If we look at the competitive landscape, for example, in the States, we see that the companies focusing on the enterprise side, their return on investment is greater than the ones that focus purely on the SME. Clearly we see that, at least in the States, the bet is clearly beneficial. Looking at the fundamentals, why is this and why would this be? With the enterprise customers, the projects do take time, but on the positive side then, when they implement it, nobody wants to change. Basically the setup typically is that the customer is in a position where they need to change the system because these kind of business and mission-critical systems, you don't want to touch them if they work.
Now that we are able to onboard these, we are then in on long customer relationships. For SaaS business, that's great because as said, SaaS is like the rental business. If onboarding is like the renovation before the rental term, then you do want to invest in the renovation for a big customer and a long-term customer. I see that justifies. On the other hand, I see also the justification for the SME. One might say that if, for example, in the States we see better numbers on the companies focusing on the enterprise side, why not purely focus there?
The other side of the coin is that the European market is super fragmented, and we are, from my point of view, the only company that has been able to penetrate all these markets. That is due to our focus on one hand on the SME. For example, in Sweden, I just heard a few months ago that the local telecoms regulator has now scored us as the ninth largest teleoperator in Sweden. There's quite a few large operators, teleoperators in Sweden, but we are the ninth largest. Being able to have that kind of volumes then enables us to really provide a solid and the best in market software and experience for our customers in Sweden. This is all thanks to the SME.
Right. That's helpful. I guess, you know, overall you're saying that enterprise side does make sense. You know, doing it right, it makes sense. Of course, LeadDesk has been doing this, for a couple of years now, and you're still building and optimizing it. Do you think, you're already there in terms of making better returns from enterprise, or do you think that happens, then later, when you optimize it a bit further?
It depends on how you define returns. As said, if you were in the rental business, and this would be the time that we are building the house that we are then renting out. We have the rental contracts already and they are for long time and based on the customer behavior in the past, we see that these customers have their systems for way longer than the initial contract period. If we calculate the return on investment on the contract size and the contract length, then I see that the enterprise investments make total sense already. I've talked about SaaS, typical SaaS investments into the, like, onboarding and so on.
Typically, what I've heard is that the onboarding on a large enterprise case, the deployment costs between one to two years of recurring revenue. That's typically the size for the large SaaS companies, the global SaaS companies. As I said, what we could do here better is monetize on this, not pay so much of the cost ourselves. That's something we could do better in the future, which would of course then help also in the short-term return on investment.
Right. Gotcha. Would it be fair to say that on the SME side, you get the customer acquisition cost paid back faster, but the churn is higher, versus then on the enterprise side, the lifetime value is higher, but the acquisition cost, it takes more time to get it back?
Yes. Correct. Yes.
All right. Gotcha. Thank you. That's helpful. All from me. Thanks.
Thank you, Olli. We were talking about the churn rate, so I could ask also a question from that. It was a bit higher, your churn rate, because of Corona, new customers coming in and then going out. How did that churn rate develop in the first half?
Right. What happened in the last few years was that in the begining of the COVID crisis, we saw very high growth rates. Unfortunately, when things turned to normal.
Mm-hmm
New normal in society, we saw slightly higher churn rates in these specific customers that came in the beginning of COVID. However, this has now stabilized.
Mm-hmm.
Now, customer cohorts are behaving normally and we see normal churn rates. We don't see that as an issue anymore.
Okay, you also name in your strategy that new partnerships and to widen your product portfolio, they are like main priorities this year. You also mentioned Salesforce in the earnings report. Do you have any updates on this and what does this Salesforce partnership mean actually?
On the Salesforce partnership, we will be providing a native Salesforce talk functionality. Firstly, we'll be bringing native telephony to Salesforce. With our global platform and especially our platform in Europe, we see us as in a prime position to provide that. Already we've heard good feedback from the sales team, and they are eager to hear more and get it to the customers as well. At the moment, we've now signed the partnership agreement some time ago, and as Salesforce is a global platform, and as we also have quite a bit of the public sector as our customers, which then means that it's much more.
Our controls are much more tighter. We have to take that into consideration. That means that then we are now in the process of technical assessments before then being able to launch the product to AppExchange. It's already available, like, directly from us, but to get it to the AppExchange, it needs still some assessments together with them.
Okay. Thank you. Okay, then a couple of last questions. We're running out of time soon. Now the first half is over and the second half is already going. What are your main priority for the rest of the year to make this year a success?
Our priorities are of course in firstly organic growth, mitigating the effects on the energy segment and moving forward and getting everything in place. That's of course number one. Number two is then getting our product also in the ecosystems and getting that side well going as there are large opportunities relating to that as well. Thirdly, of course, M&A led by Paul, then we really need to look at the M&A opportunities at hand and take a good approach there as well. Of course, taking into account that we use our balance sheet efficiently.
You see more opportunities there, as you said, Paul, also?
Definitely, yes. Of course.
Yeah
Nothing happens before it happens.
Exactly.
We're working on them outside as well.
Okay. Is there still some questions from the audience? Thank you already for the active discussion. That side. Did you have something to add, Olli or Paul?
Well, I'm really looking forward to the second half. I, of course, looking at the general market position and, like, where Europe is heading, I see that Europe is unifying and we are like fighting this war together and we're making progress also then in stabilizing the general economy. I do really also hope that we can solve the energy side, I mean, on the governmental level now for the coming winter. It's also a big thing, of course, on our employees' minds personally across the continent. There's a great opportunities both on SME and enterprise, and really happy to see the process in especially Spain and France now moving well.
Yeah.
Thank you.
Yeah. Thank you for the discussion.
Thanks, Antti.
Yeah. The report will come in the websites from this, yeah, afterwards.
That's correct. Yeah, we will publish the material later today. Thanks also to the great questions from the audience.
Sure.
Thanks, everybody.
Thank you.
Thank you. Bye-bye.
Bye.