Hi, good afternoon and welcome to this presentation. My name is Herman, the CEO of Ayfie Group, and I will take you through some of the plans we have for increasing revenue in the coming years, while Lasse after will take you through the numbers. So we've done some research uh into the market andt he Ayfie functionality fits very well with the market needs for both the insight engine and actually also the semantic search markets. These markets are growing a lot a ccording to a lot of research actually, it's expected to be many times the current size by the end of 2027. And these are slides with a lot of information in them, so I will just take some of the highlights.
One thing I would like to stress here is the deployment mode, because currently, the cloud segment accounts for 80% of this market. I will explain later why this is an important figure. What are driving this market, it's the increasing volume of data and the requirements for structured data. Ayfie's technology at its core analyzes unstructured data and brings structure to those data so they can be used for analysis and also for locating documents that are hard to find. And we have been looking then at the biggest player in these markets and comparing our current business model to what they are succeeding in.
Because let's be frank here, the players in this quadrant, they are experiencing a lot of growth, more growth than Ayfie is currently doing, and we have been investigating why that is. And the common characteristics of these companies are they are quite successful at establishing partnerships. They have a clear value proposition, and they have a trial that allows potential clients to try the solution before actually buying it and t hey have invested a lot in privacy mechanisms so that intellectual property is maintained where they should be. They have launched industry-specific offerings that cater to the needs of specific roles in specific segments of the market. They have a clear pricing model so that the potential clients can quickly upfront see what the solution will cost them.
And we have been looking a lot on how to improve on these key six topics for Ayfie. In terms of the market, there are many ways to segment the market, and currently we have been trying to address all of it, and that is hard to do. We have a strong product offering. Some of the functionality that we have here, we have benchmarked against the top vendors in this market, and we have scored better than they have. We have functionality for if you have a text, if you would like to have our technology automatically summarize that text, we can do that. If you have five million documents and you are looking for all, let's say, contracts in that document set, we can let you find that and classify them as such.
If you're looking for something that we have not already a trained model for, you can actually, as the only player in the market, you can train a model yourself for finding, let's say, doctor records in a big document set. We have support for extracting unstructured data from all used document types in the world. Basically, what I'm trying to say that we have a very good product actually, and we are a part of a growing and already big market. The question then is, why are we not experiencing more growth in Ayfie? I will try to explain that and also how we are going to fix it. The current sales model is based on knocking doors and presenting the enterprise product that we currently have. This is a heavy installation.
For a potential client to test our product, they need to invest a lot of money and time into just getting a proof of concept running so the employees can test the solution. Being a small brand like Ayfie, that's a huge leap of faith, and it's very hard to sell. We are introducing now two steps to this sales ladder, much inspired by what other players in this market are succeeding doing. We are introducing a free trial this year.
Our plan is launching it in November, will be to have Locator software as a service on our webpage so that a potential client, let's say our lawyer that is curious about the functionality in our product, he can go to our webpage, sign up, and have the solution running in a minute without needing help from anyone. This is a huge difference. If this same lawyer is interested in our solution today, he will need to talk to Procurement and IT department, et cetera, at his company. This is a huge barrier for buying our product, especially when the competitors are able to offer it as a free trial. We will have a subscription ladder, so those that are happy with the free trial, that they can continue using it for a small fee.
This obviously is a very good base for upselling the enterprise product that we have today, uhh offering them custom connectors, enterprise security that we are very good at delivering, and collaboration functionality, such as making annotations and sharing them with your colleagues. We can then deliver this both on-premises as we do today, but also on the cloud, which as I showed you earlier, accounts for 80% of the market. This is a huge game changer, both in terms of delivery model and sales model, and I believe it will make a big difference for Ayfie going forward. We are also focusing now the market approach on one industry approach. We are investing the most in showing the legal industry what we can do for them, for that's a lot.
And we are also developing a connector for Dropbox that is super simple to connect for Dropbox users. Both of these are interesting markets, and both of them combined, we will have a very strong offering, too. So we are investing in legal, both because it's a good product-market fit in terms of what we have already developed, but also because the market will triple in the next years. Dropbox, you all know Dropbox. They have 700 million users, and 17 million of those are paying for storing more data and we have the search functionality that we can offer in Locator is vastly superior to what you can do with the built-in search functionality in Dropbox.
So if you are able to sell the subscription-based product to let's say 1% of those paying Dropbox users, that's $6 million a year for Ayfie. These are just examples to illustrate, but this is a huge revenue possibility for us in addition to being a great base for upselling the enterprise product that we currently have. We will then add more connectors for those that use Google Drive, for those that use OneDrive, for those that use SharePoint, and also for different applications like Oracle or Salesforce or Dynamics. We already have those connectors for the on-premises solution, and we'll make them available for the cloud one. These changes in the delivery and sales model that will be ready this year, it's not just some experiment on Ayfie's part.
These are proven methods for increasing sales that other players in our market are having huge success in doing it. I really look forward to seeing the true potential for Ayfie's market offering with this delivery and sales model. Having said that, I'm happy to introduce Lasse that will go through the numbers.
Hi. My name is Lasse Ruud. I'm the CFO of Ayfie Group, and I'm happy to present the numbers for first half, 2022. With reference to the presentation of the annual report of 2021 earlier this year, where I stated control, this half-year report could for some look like we have lost control. I can assure you that we still have control. Everything we do have been planned and forecasted, and we believe this is the right way for Ayfie as a company and for the stockholders. To give you the main highlights for this half, the most important happening is what we can call the second stage of our transformation after our restructuring. We planned for this at the end of the last year, and we forecasted mostly everything down to the result we now see.
As Herman just explained, we have been investing both in R&D and people for turning our product focus in the right direction. This also have resulted in some churn, where most of it is because of a change in product focus. We expect the investment we have been doing and are doing now will speed up the onboarding for new customer going forward. To make this happen, we still have a stable financial position, and our software model is still working well with around 90% recurring revenue of the total revenue still. To give you the overall numbers, we ended the half year with NOK 14 million in revenue and a NOK 5.3 million in loss. As stated last year, the last slide, this was the same as what we forecasted. Our financial position is still stable with NOK 31 million in cash.
This situation will still give us the opportunity to invest in what we believe is the right product focus for Ayfie Group. Without the need of raising capital. With the capital markets being in the state we see now, this gives us the opportunity to focus on the important parts of the company right now. Our recurring revenue, NOK 13.4 million, still is about 90% of our total revenue, which keeps the focus on the license sale. With the cash position we have around right now, we are still debt-free. To give you some comment on the consolidated income statement, I would point out, as you can see, our revenue is slightly down from the end of 2021 and of course comparing to the half year last year.
The cost side is on the personal expenses about on the same level. As you can see, the number that are quite different is other operating expenses, where we can see the investment that we have been doing in both on people and consulting side with the new product development that we have been doing the last half year, which again gives us the loss of 5.4 million NOK. The most important part to point out in the balance sheet is as you can see from the total assets most is part of the cash position and the goodwill that we still have from the acquisition of the Haive company, which gives us a balance that we have quite good control over.
At last, it's important for us to tell that the investment we have been doing is not entered into the balance sheets. Which means that we have full control over the investment we are doing and that we divide the result side from what we have in the balance sheet. With that, I will thank you for joining this financial presentation. If you have any questions to us or about the company, please contact us by mail or phone. Thank you.