Good morning, and w elcome to the Second Quarter Results Presentation for Link Mobility. My name is Tom Rogn, and I'm the Head of Investor Relations. I'm joined by Guillaume van Gaver, CEO, who will present the results together with CFO, Thomas Berge. Following the presentation, we will have a Q&A session where you both can post the questions online, and if you have been dialing in, you can also ask questions in person. Guillaume?
Thank you, Tom. Great to be with you this morning to present the key highlights of the second quarter. For us, the second quarter 2021 was very important because it is the milestone for us to move from being the leader in Europe of CPaaS offering to become a global player. With the closure of the acquisition of Message Broadcast and the contemplated acquisition of Soprano, not only do we add the U.S., but also Latin America and Asia Pacific. This is really exciting for the second quarter 2021. Also, we have, and we will be close to reach certain milestones from a revenue perspective and EBITDA perspective. When you look at the pro forma last 12 months, we've reached now NOK 4.3 billion on the pro forma basis and an adjusted pro forma EBITDA of NOK 622 million.
Taking into account Soprano, that will add NOK 683 million in revenues and NOK 182 million in EBITDA. Really changing the scale of the company, not only from a revenue perspective, but also from a profitability standpoint. We're also very happy in this second quarter 2021 to actually having delivered on our M&A strategy that we have presented to you during the IPO. We have indeed closed five acquisitions since IPO. We can name WebSMS, Tismi, MarketingPlatform, Message Broadcast, and also AMM in Italy. Second important point that we would like to mention is, of course, that as planned, the second quarter of 2021 has seen a strong boost in terms of revenues. When you look at it from an organic standpoint, in local currency, it's 23% growth.
That is explained clearly by the reopening of society and the fact that the second quarter last year was definitely impacted by the coronavirus situation. When you add the acquired entities, our reported revenue growth was 26%. For the second quarter 2021, we have also reported an adjusted EBITDA of NOK 119 million, which is a 22% increase that takes into account the acquired entities. Thomas will cover this element in his presentation. When comparing to the second quarter of 2020, you have to remember that the second quarter of 2020 had strong cost mitigation measures, obviously to take care of the pandemic situation.
The last point is actually where we are super excited because when you take into account the acquisition of Soprano, we will be close to 50,000 customers, and every day we get proof points of these customers consuming more and more of Link Mobility products and consuming our platforms when it comes to use case extension, but also, for instance, message channel expansion. That's the case of WhatsApp, where we have signed with Deutsche Post an agreement to expand not only to message notifications or delivery notification, but also customer service use cases, WhatsApp as an important channel. That is a clear demonstration that being so enterprise-focused delivers a lot of value and will continue to do so on an ongoing basis. We talked about it during the first quarter presentation, and let's make a few points on the second quarter 2021 results.
Indeed, we knew that message notifications will hold their position because they've been very critical. That, of course, due to the pandemic, marketing use cases were negatively impacted. What we saw, obviously in the second quarter, is the fact that logistics and e-commerce continued to use notification messages from Link Mobility, and that's very strong from an ongoing perspective. Also that retailers, hospitality, but also other companies re-engage with their customers, inviting them to benefit from their great offers, loyalty programs, and also visiting stores. That has been very positive for us in the second quarter, and we expect this to continue, especially when you look at the third and even more, the fourth quarter of this year. We know that these products are now in high demand, and now we have new channels also to offer, as we will present in the next slides.
Indeed. Let's talk about WhatsApp. Definitely WhatsApp is a growing channel in the CPaaS industry, and we see growing demand for using WhatsApp for notification, but also marketing communications. We are announcing today the fact that we have signed with Deutsche Post a WhatsApp agreement that has shown already some strong growth. Deutsche Post is the owner of DHL, and we have an historic relationship with DHL, where we already expanded into new use cases, including WhatsApp, and we are testing even new channels like Facebook Messenger and RCS for DHL. On the Deutsche Post case, we can see that the Link Mobility platform is now enabling chatbot conversation using WhatsApp as the key message channel.
When you look at the scale of this example, we know that a lot of other companies are asking us to actually expand not only to new channels like WhatsApp, but also new use cases, including customer service. That's the role Link Mobility plays, actually. We have made some important steps towards building a more robust and comprehensive platform, now being able to carry more than 90 operators on RCS, being able to reach customers in 200 countries plus. We've been able to deliver those enablements in terms of marketing communication using the two-way communication and the rich content of RCS. Besides RCS, when you look at our partnership with Facebook, by the way, you can scan the QR code and enter the dialogue with the WhatsApp channel in order to keep your investor presentation up to date by scanning this QR code.
If you look at it from a more serious perspective, we have a very strong demand for expanding into these new channels such as WhatsApp, and of course Link Mobility is an attractive partner because we have more than 50,000 customers, if you take into account the Soprano acquisition going forward. Upsell, expansion of use cases, include more channels are the key themes of our growth potential going forward. That is not the only element of our growth profile, because we've invested a lot of energy these last three months, but since one year, in expanding our go-to-market channels. We are very much recognized as being the number one in Europe on enterprise. We have this direct sales team, very expert, able to cater for bespoke solutions for the enterprise customers directly.
We have this unique go-to-market with partner, and we're expanding now in almost all of our countries, the platinum gold platform with our partners. Not only did we do that, but at the same time, we've extended our self-sign-up profile by being able to actually have smaller companies connecting to Link Mobility directly without the human intervention. We have customer success managers who grow the customer over time, but these three channels combined, they give us this enhanced ability to grow our business, not only in Europe, but going forward in the rest of the world. Just to give some color to some of these elements, we've signed 420 customer contracts in this quarter. Very importantly, we have signed 33 partner agreements, which themselves added 145 new customers. Clearly very attractive go-to-market drive, which will be an important element of the growth of Link Mobility going forward.
Let's talk about the second strong element in our strategy presentation that we did during the IPO, which is our M&A track record. We have a very significant success in completing more than 29 acquisitions since 2014. That clear M&A strategy has been really successful, and we have the ability not only to continue it, but to grow it and now have a worldwide perspective on M&A. Let's give these three examples. Whatever Mobile was acquired in 2016, and you can see that we've been able to deliver over the last four years of the acquisition, a 22% CAGR on EBITDA, which is outstanding.
We've been able to leverage the relationship with certain key customers and expand the use cases, and you can see now the example of WhatsApp with Deutsche Post. If you look at Netsize also, this acquisition in January 2019, we've been able to have very significant growth on the EBITDA, 130%. On the revenue standpoint, you can see the impact of COVID, specifically in France. The growth rate has been really strong and we've been able to deliver value for our shareholders. More recently, WebSMS, we've been able to have an outstanding performance on growing the business, combining our Austrian entities together as we had already an Austrian presence, and also delivering very strong financial results for our shareholders when looking at revenues and EBITDA, and this is only three examples out of the many acquisitions we have done.
We are going to continue focusing on M&A to deliver growth for our customers. In terms of those very last M&A deals that we would like to mention, of course, let me start with Message Broadcast, which was a transaction closed on the 24th of June 2021. We're very excited about the acquisition with extremely high net retention at 150%+, plus a very deep solution embedded into key verticals such as utilities, but also healthcare. You can see that the package that is offered by Message Broadcast commands a very high level of profitability and very strong net retention scores. We see that with the experience of Link Mobility and the passion of the Message Broadcast team, we see very attractive prospects along the way for Link Mobility after this acquisition.
We are also making great progress in finalizing the Soprano agreement. Soprano is a very sizable company being represented in many different continents in Europe, in U.S., where we are now present, but also in Latin America and Asia Pacific. We've seen very strong capabilities from a platform perspective. The due diligence has gone really well, we are expected to sign the SPA very soon. You can see on the right side some of the key elements and KPIs of the Soprano. When you look at the acquisition of Soprano and Message Broadcast together, that is really a changing of the scale and the presence of Link Mobility. Let me basically, before we get to the presentation of the financial numbers, finish by reiterating our forward-looking statement for 2024. We are guiding with a pro forma revenue of NOK 10 billion, and pro forma adjusted EBITDA of 15%-17%.
This is up from the previous range, which we gave you around 13% and 15%, and we think that after the acquisition of Soprano, we are going to raise the guidance forward with an 18%-20% EBITDA margin, which is really an outstanding number in our industry. We have also kept some important key assumption for the delivery of this forward-looking statement. The continuous organic growth rate of 20%, which we intend to reach with the effect of the go-to-market, but also, as we said, the tailwind of the new CPaaS channels, such as WhatsApp and other products, of course. Not only this is going to help us, but we are going to be able to increase the margin through the higher leverage of the operation and bring some additional M&A to complete the picture of Link Mobility on the forward-looking basis.
Thank you very much for listening for this first section. Before we go to the Q&A, of course, let's invite Thomas to present the key elements of the Q2 results. Over to you, Thomas.
Thank you, Guillaume. Let's start the financial section with a look at the revenue development. Link reports all-time high quarterly revenue of NOK 1.055 billion, a 26% growth, including M&A, and a 23% organic growth in local currency, excluding revenue from acquired entities. In the current quarter, Link closed MarketingPlatform in Denmark, AMM in Italy, and Message Broadcast in the U.S. In the reported numbers, MarketingPlatform and AMM are included as of June 1st, while Message Broadcast, which closed late in June, will be included in the P&L from July 1st. The appreciation of NOK towards EUR and other currency reduced the reported growth rate by 8 percentage points. As I said, organic growth rates in the current quarter in local currency was 23% and above the 20% medium to long-term revenue growth target.
The underlying revenue growth is progressing according to plan and increasing over time with additional growth momentum generated by go-to-market initiatives. Link is rolling out additional products and sales capabilities in less advanced markets by investing in additional salespeople, partner managers, and implementing new self-sign-up solution to advance our position in the SME market. In the quarter, additional growth was generated by reopening of societies. As stated in the first quarter reporting, the company observed a material reopening effect in April after strict lockdowns throughout Europe during the first quarter. In the current quarter, enterprise have adapted quickly to societies reopening, accumulating a need to reengage with the end users to restart normal business activity. In addition, the second quarter of last year saw revenue development negatively impacted by the initial lockdown, mainly in Western Europe and Central Europe.
The organic growth rate for the first half of 2021 is reported at 15% in local currency. Messaging volume growth, including acquired entities, was 37%, while reported organic messaging volume growth was 28%. The higher message volume growth compared to revenue growth is due to increased revenue from the low price aggregator segment compared to the same quarter last year, and a stronger reopening effect in Western Europe, which has a lower price level compared to the other regions. Over to the next slide. As Guillaume said, Link has delivered on its M&A strategy as communicated in the IPO process. The company has been transformed from a European CPaaS provider to a leading global CPaaS player. Since the IPO, the company has closed five acquisitions, WebSMS in Austria, Tismi in Netherlands, MarketingPlatform in Denmark, AMM in Italy, and Message Broadcast in the highly attractive U.S. market.
Additionally, a firm term sheet was signed in May relating to the acquisition of Soprano Design, which will increase Link's footprint to Latin America, Asia, Australia/New Zealand, and further reinforce Link's position in the U.S. and European markets. We are expected to sign the SPA on the Soprano transaction shortly, as the due diligence is finalized and no red flags have been discovered. M&A has enlarged and transformed Link, and to give a better representation of the financials for the combined entities, several pro forma KPIs will be disclosed as of this quarterly reporting. Pro forma figures includes historical financials of closed entities for comparable data. All acquired entities are included in the pro forma figures, except Soprano Design, as the acquisition has not yet been closed. Pro forma organic revenue growth was 25% in local currency, with similar momentum to reported organic revenue growth.
There is a strong demand for CPaaS products in the markets, as enterprises are looking for new and better way to communicate with their end users. The richer feature set of OTT channel, like WhatsApp and RCS, is appreciated by the market and pushing exponential market growth for these solutions. Link has leading position in the evolution of the CPaaS market, documented by large global enterprises like DHL and Deutsche Post, choosing Link as their CPaaS vendor. The pro forma organic revenue growth was also helped by reopening of societies, as explained on the previous slide. Pro forma enterprise revenue growth was reported at 20%, and the aggregator segment increased total pro forma revenue growth with five percentage points. In the second quarter, the aggregator segment experienced increased growth momentum with the reopening of societies and ad hoc volume increases to selected destinations.
The number of customers have increased with 2,000, or almost 2,000 customer accounts. This is driven by the go-to-market initiatives. Link now has almost 44,000 customers account, including all closed entities. Pro forma net retention rates include closed acquisitions to give a better overview of the growth momentum for all existing clients. Historical overview for the last four quarters is included in the two charts at the end of the slide. Net retention rates will be reported in local currency to highlight underlying growth derived from existing clients. The pro forma net retention rate for the enterprise segment was reported at 117 and has increased over time. Total pro forma net retention was 120%, with aggregator volumes experience a pickup in growth levels in the current quarter. Over to profitability. Gross profit was reported at NOK 268 million, a growth of 22%.
Pro forma organic gross profit growth is 12% in local currency, and the gross profit margin is 25.4%, which is a decline of 0.8 percentage points. Gross profit development compared to the same quarter last year is negatively affected by higher revenue from the low-margin aggregator segment, which dilutes margin in the current quarter. Additionally, special circumstances last year connected to the initial lockdowns, mainly in the less mature markets in Western Europe and Central Europe, with lower gross profit compared to the more profitable Nordic region, resulted in higher margins on average being reported in the second quarter of last year. Reported adjusted EBITDA at NOK 119 million and the margin at 11.3%. The second quarter margin is not fully comparable year-over-year, as cost savings of approximately NOK 10 million was implemented last year as a response to the uncertainty created by the pandemic.
All cost-saving initiatives were rolled back late second quarter and early third quarter of last year. Some pro forma figures. LTM pro forma figures as of the second quarter are displayed in the table to the left, with separate columns for reported numbers, additions from closed acquisitions, and then Soprano. Current run rate LTM number for revenue, including all entities, indicate yearly revenue of more than NOK 5 billion, and a gross profit of almost NOK 1.7 billion. Gross profit margin at a healthy and stable 33%, and an adjusted EBITA at over NOK 800 million, with a 16% margin. The LTM number for all entities documents the transformation of Link to a sizable global CPaaS player. Next slide summarizes the second quarter figures in a P&L overview. We have been through the headline P&L figures in the previous slides, I'm jumping straight to the lower half of the P&L.
Non-recurring costs are impacted by Link's share option program and M&A activities. Share option costs of NOK 40 million and M&A related cost of NOK 35 million connected to the acquisition process of Tismi, AMM, Message Broadcast, and Soprano. There is a smaller amount related to restructuring cost of NOK 6 million. The reported share option costs are the accounting treatment of a future dilution effect, with no short-term cash effects and only a very limited cash outlay over time of approximately NOK 1.3 million, related exclusively to Social Security contribution. Cost of depreciation is reported at NOK 69 million, which is mostly related to the depreciation of assets from acquired companies following purchase price allocation.
Balance sheet is solid, with a strong liquidity for the second quarter. Total balance sheet of almost NOK 10.4 billion, with an equity ratio of 49%. Working capital is negative, meaning Link's clients and vendors are financing the organic growth. Message Broadcast will, however, affect the future development, as the company has a positive net working capital due to its business model. Net interest-bearing debt at NOK 2.9 billion, which is an increase in the second quarter due to funding of the acquisition of Message Broadcast. Link has significant cash reserves of over NOK 800 million.
Looking at the leverage. After the closing of the transaction with Message Broadcast, leverage will temporarily be higher than the financial policy dictates. The financial policy is unchanged, and the company have the highest focus on pushing the leverage below 3.5. Leverage as of June 30th is 4.7 and is expected to go down closer to 4.0 after closing the Soprano acquisition. Organic growth in the third and fourth quarter will further push down leverage as adjusted EBITA increases. We expect to be closer to 3.5 in leverage by the end of the year.
Net cash flow on the next slide shows NOK 87 million from net operating activities, significantly higher than same period last year. Link will have a cash surplus after deducting interest cost and CapEx from net cash from operating activities, which will be used for further acquisitions. Closed acquisitions during the quarter and connected cash outlay are listed on the slide. Funding of the acquisition was done through the tap issue of the existing bond of EUR 170 million. That's it for me. I'm handing the word back to Tom to take us through Q&A.
Welcome to the Q&A session. We will start with the direct questions and take online questions if they have not already been answered at the end. Operator, please help us through Q&A.
Ladies and gentlemen, if you have a question for the speakers, please press five star on your telephone keypad. To withdraw your question, please press five star again. We will have a brief pause while questions are being read. As a reminder, if you wish to ask a question, please press five star on your telephone keypad. As there are no questions at the moment, I'll hand the word back to the speakers.
We have some online questions. I will ask them to Guillaume and Thomas. The first questions we have from Øystein Lodgaard from ABG. He asking about the second quarter saw some one-off catch-up effects. Do we expect to see something similar in the second half or more normalized volumes?
Hi, Øystein. Thank you for this question. I think we have communicated in Q3 2020 some of the monthly changes we saw as an impact from the pandemic. If we remind you about some of those data points, we can say that heavy impact took place in April 2020. Very significant reduction due to the closedown of society. Also the case in May. Then we had a strong rebound in July. July 2020 was actually a very strong rebound because a lot of companies re-engaged with the customers, and also at the beginning of August. Whilst the second wave also impacted basically Q4. We think that there is going to be, on a net basis, a catch-up effect. This is not to the same scale that we saw the second quarter.
We know that also within each month, there was different patterns of impact, also in different regions. If you look at the pandemic impact, of course, regions were impacted differently. You can see that in our Q2 numbers, for instance, in the catch-up of Western Europe, in the second quarter of 2021 versus the second quarter of 2020. Normalizing everything is not an easy job, but we expect some level of catch-up, probably a little bit more in Q4 than in Q3 due to the strong July month and beginning of August, which were kind of strong in 2020.
Øystein has a couple of follow-up questions regarding our recent large acquisitions. For Message Broadcast and Soprano, how was the performance in the second quarter?
I can start answering that, Tom. Message Broadcast performed according to the internal plans for the second quarter. We are not reporting details on Message Broadcast nor Soprano for the time period before we owned the company. Things are going according to plan for Message Broadcast. Also for Soprano. As you see in the pro forma overview, we are stating Q2 numbers for Soprano. As we haven't closed it yet, and we wanted to give the investor community an overview over all entities, not just the pro forma figures from closed acquisitions. The performance there is also according to plans and the historical overviews.
We have a question from Mads Rosendal, and it's regarding the relatively high leverage due to our recent acquisitions and how we will deleverage.
I can maybe also start that, Guillaume. Leverage is higher now temporarily due to the Message Broadcast acquisition. We knew that we had Soprano also coming, so that will, of course, delever quite significantly down to 4.0. We have not given any sort of forward-looking statement short term on how fast we can delever, but what we said in connection with going public with these two deals, that we expect to be significantly lower than 3.5 within 12 months after closing the Soprano transaction. As we said in this quarterly presentation, we do expect to be closer to 3.5 by the end of the year.
We have a couple of questions from DNB Asset Management regarding both. Upon closing of Soprano, we'll be guiding the EBITDA margins 18%-20%. What will be the cash flow margin on that? Also, if you can give any more specific indication on the expected revenue growth for the second half of this year.
Maybe I can start, Guillaume, with free cash flow, and you can comment on the revenue growth. We have not given a forward-looking statement on free cash flow. I can give some sort of guidance pointing to historical figures. If you look at our adjusted EBITDA, of course we have to pay taxes. As of now, they are around, in a normalized year, NOK 70 million-NOK 80 million. It will increase due to the acquisition of Soprano and Message Broadcast. On top of that, we have previously said that we have CapEx around NOK 140 million, which will increase slightly due to the acquisition of Soprano and Message Broadcast. There is also some CapEx there. If you assume around NOK 15 million-NOK 20 million per entity. I think that's a good estimate of the current run rate for the two acquired entities.
You will see that we will have a significant free cash flow margin. Historically, it's been increasing. It's been going up from 40%, 50% back in 2018, 2019, up to almost 70% and above the last quarter. We would expect a very healthy free cash flow margin.
We have a question from Eirik Eriksrød, and it's regarding.
Maybe we should cover the question , on the H2, just to give...
Go for it, first.
... Second answer to this question. Sorry. I think when you look at H1 2021, we have basically a mix of two quarters. The first quarter was really impacted by the lockdowns and the restrictions on COVID, and the second quarter had the tailwind of the reopening of society and comparison with the second quarter of 2020 being made easier, of course. On the net effect, if you look at H1, we expect similar type of growth in H2, which will be a more normal second half. If you look at the first half, combining those two quarters gives a good sense of what we would expect in the second half.
We can go right back to Eirik Eriksrød's question regarding the CPaaS sales and how much that constitutes of the total sales of the company today.
Yeah. That's a very good question, and I really want to spend some good quality time answering it. First of all, in our segment reporting, you can see that we have isolated global messaging, which represents 15%-16% of our total revenues. These are clearly A2P aggregated type messages that do not qualify strictly to being CPaaS traffic. We're also selling to companies who are reselling to other companies as aggregators. If you focus on the 85% remaining revenues, more and more of those revenues are CPaaS in the sense that they carry two-way communication. They are multi-channel, as opposed to using only one channel, and they require platforms that can deliver on the security and the reporting of combined solutions.
To mention another element which is important, is that our solutions can be both consumed from a software perspective, so directly connecting to the software or through APIs, which basically offers that flexibility to customers. We have decided that there isn't a strict definition to basically qualify certain traffic as purely A2P messaging and the other CPaaS. What you need to remember is that more and more customers are asking us for additional channels for two-way communication, for more advanced use cases. If you look at the example of RCS in Germany, in the U.K., in France and Spain, where certain companies had a one-way message, using, for instance, email or SMS, now they are combining SMS and RCS with two-way communication for marketing use cases.
From a reporting standpoint, we don't isolate every single EUR or NOK of our revenues between CPaaS and A2P. Clearly today, more and more of our enterprise revenues are CPaaS enabled.
We have a couple of questions from Eirik Langtvet Rafdal from Carnegie regarding the strong demand growth we saw in the second quarter and the volume growth and what is driving the volume growth, which sectors are driving that, and also why the volume growth is higher than the revenue growth.
Of course, a good question. We have sectors who have been very quiet in the first quarter, which actually went back into re-engaging with their customers. We've highlighted hospitality, obviously, but also retail. We have also, in certain countries, the vaccination initiatives, which means that the health sector is increasing. From also total revenue versus messaging growth perspective, we have two elements, is that some of the volume growth came from that global messaging sector as we separate it from the rest of the companies. Also, let's not forget that a lot of the growth you can see from new channels such as OTT, and we've gave the example of Deutsche Post WhatsApp. Not all of this traffic is actually translated into direct revenues, but some of them are more translated into license revenues.
Maybe you want to put some addition to these comments, Thomas, on the gap between the messaging volume growth and the revenue growth?
Yeah, as I mentioned in the presentation, and we also written in the report, we have a large aggregator volume, as you said, also, Guillaume, which then, of course, increases messaging growth more than revenue growth. Additionally, we are having some special effects when we compare to the same quarter of last year because we had the initial lockdowns, and it impacted negatively more volumes in markets with lower price levels. When basically sort of the revenue comes back again, then we get the mix effect also from that. That are the two main sort of reasons for the deviation.
We have a straightforward question from James Carter. Will we be pursuing a credit rating?
I can maybe start answering that. We are going to look into it. We haven't concluded if we are going to do it, but we do see that the amount of debt and the loans that we have in the bond market makes it more interesting to spend the resources and the time to pursue a credit rating. This is something that we will get back to, most likely by the beginning of the fourth quarter.
We have a couple of questions from Sergio Ruiz, and it is related to the Soprano acquisition. Firstly, on the Soprano customer base, and if you give some color on the customer concentration of Soprano, and also since the Soprano acquisition is largely financed in shares, how that will change the ownership structure of Link.
Do you want to take the first question, Thomas?
Yeah. Abry Partners is going to have around 25% after closing of Soprano as they reduce the ownership share. Customer concentration, it's not big in Soprano. They have a lot of revenue from partner agreements with MNO operators, and behind those, there are thousands of end clients basically generating the volume. I would classify customer concentration as low in Soprano due to the fact that we have so many different end clients there. I see also that there is a question if we do not close Soprano acquisition and you don't reach the 3.5 times leverage. What happens then? Basically nothing, I guess, because we don't have any maintenance covenants in our bond agreement, we're going to continue to grow organically and de-lever naturally over time.
We have a limitation of course, in the incurrence test that we cannot incur new interest-bearing debt if we have a leverage of over 3.5. That is going to be a limitation, but it's not going to limit the organic development of Link.
We have a question from Johannes Riis, and it's regarding our forward-looking statements to reach the NOK 10 billion revenue target by 2024 and how that stacks up with the growth expectations and how much M&A we need in addition.
I think our forward-looking statement is clear, is that we are aiming to reach 20% organic growth rates in the midterm, and we will also continue to acquire new companies. You can do the different maths and scenarios based on our M&A and organic growth, post Soprano. Clearly, our M&A pipeline is still very healthy, and we have very good expansion plans on M&A, but also as we explained during this quarter results, strong demand on CPaaS. Both are really confirming the fact that we are on track on delivering the NOK 10 billion. That is definitely something that both Thomas and I feel very comfortable in achieving, and that's clear to us.
Yeah, I can fill in also, Guillaume. Purely mathematically, if you assume 20% organic growth, medium to long term, then you will see that the shortfall to reach the NOK 10 billion in 2024, it's just above NOK 1 billion that we need to fill from M&A. We have delivered significantly on the NOK 10 billion forward-looking statement already with the many acquisitions that we have done this year.
We have a quick question from Christian Åkesson, and it's regarding if we can explain the difference between enterprise and aggregator volumes and why Link is focusing on enterprise volumes and not on aggregator volumes.
Yeah. I guess the answer to this question is that aggregators are also reselling to enterprise, but they go to Link Mobility to source our direct connections and our very high-quality routes for SMS international routing. The relationship is very different than enterprise because it's more price sensitive, and you don't sell a solution, but you sell capacity, and it's closer to a wholesale trading agreement. Therefore, the relationship is very different. As we said during the IPO, Link Mobility is focused, as an enterprise solution company, proposing and offering CPaaS solutions. We also have this global connectivity business, which allows us not only to offer our great direct connections to other players, but also to source attractive destinations, which is common in the industry.
We have some of our competitors who are more focused on aggregator and global messaging than we are because we have defined our strategy as being very enterprise-focused. You can see that on the aggregator side, it has been some strong volume increase in the late 2020. For us, we do not make this as our core strategy again. For Link Mobility, enterprise is the focus.
We have a question from Millie Jahav regarding how we're going to integrate the recently acquired entities.
Yeah, this is a very good question. Talking about Message Broadcast first. Message Broadcast is a very deep solution that has been offered to utility companies in the U.S. We're going to offer to Message Broadcast also our international connectivity that we just spoke about because this is capabilities that they didn't have. They have also the perspective of growing stronger into the health sector. That is going to be built in from the Message Broadcast position. The CEO of Message Broadcast is going to lead the U.S. presence for Link Mobility going forward, and we know that from a personal perspective, we want to keep this great team of Message Broadcast in California growing the business for us in the U.S. on top of the U.S. presence of Soprano. We have this regional focus now strongly starting with this U.S. presence.
From a Soprano standpoint, Soprano makes a great contribution to us with the ability to sell to carriers, MNOs, which is one of the partners that we've been working historically, but not that strong, and they have really a unique product and unique track record in MNO. That means that for us, the Soprano product and the Soprano suite is going to be offered all across Europe in order to be able to create some additional cross-sell opportunities to our European partners. We know that there are some upsell really coming from the European MNO expansion. From an entity perspective, we will want to keep those entities relatively independent, with the exception of global connectivity, because Silverstreet and Link Mobility global messaging have similar type of customers and will be merged in the next coming month. Different answers to these two different cases.
We are extremely experienced in doing the right thing in terms of integration, as proven in our track record. It's all about making sure that the local team are empowered to deliver the numbers. We try to avoid big bang mergers, because historically, we know that this is less efficient than empowering and cross-fertilizing the companies with our products and our go-to-market expertise, where we are bringing all of the partner program, SSU programs, carrier now MNO programs, and enterprise know-how.
Thank you very much. As we have no further questions, we thank you for your attention this morning, and this concludes the Q&A session.
Thank you very much.
Thank you.