Earnings Call: Q3 2021

Oct 25, 2021

Quarterly report

Great. Thank you very much. So good morning, everybody. Pleasure to be here once again to talk about our Q3 results. If we start on Slide 2, as just been said, you've got the same I was going to say same faces, not Sustained Voices, Joachim and myself, in terms of company attendees. And then an agenda that I guess you'll be becoming familiar with, short company overview. I am keen to do a recap on that, then Q3 highlights, financial update, which is more detail and then a summary and a wrap up. So If we go straight into the company overview, it's on if we move on to the next slide, please. That would be great. Perfect. Thank you. Really on we are the sort of global software leader in market research for Connected Consumer Insight. That's really us in a nutshell. And that's what we are doing is effectively digitizing what is largely still an analog and analog industry. Very large customer base. We're now at over 3,000, as you can see there, bottom left, with a high degree of stickiness. It's the pie chart you'll be familiar with on the bottom right hand side where we've got a very, very substantial part of our revenue measured by net sales from customers that have been with us in 2016 volume prior to that. Underlying market, as I said before, absolutely no concern about that. We've got plenty, plenty of room to grow for many years to come. We are a cloud based B2B software platform, which is hugely important because it allows us to be very digital, very quick, very API and kind of drive that kind of value proposition for our customers. Track record of organic growth, pretty good. You can see the blue bubbles there comfortably in the mid to upper 20s, even nudging 30, I think, there now, which is on an LTM basis, which is great. And as you would expect, strong commitment and significant investments, data security, privacy, as you would expect with for a company like ours dealing with consumer data. Very global. It's a theme that you'll keep hearing from us time and time again. Yes, we've got a strong Swedish DNA, but ultimately, our customers and our respondents are spread throughout the world. If we move to next slide, please. This is kind of a representation of our insights platform. We've got us in the middle and really what we do is we connect our B2B customers on the left hand side with consumers on the right hand side, who have agreed and opted in to answer questions. That's what we do in a nutshell. We do that in a very automated very digital way and therefore provide significant savings of time and money to our customers. We've talked about global. You can see there the pie chart at the bottom representing customer base, workforce and supply very much again a global business. We think that's an increasingly important part of our value prop as brands ultimately who are paying for all of this increasingly want to do multi country, regional or even global work. On the next slide, please, is a short recap of our strategy. So we've got increasing share of what we've established customers, very important for us. And you'll see on the next couple of slides just how they are still growing with us. Tech enabled, the fastest growing segment for us and has been for a while and we expect that to continue. Very important that sort of SurveyMonkey, Zappy, Qualtrics and others. New customer acquisition, absolutely important. We try and add about 500 or so new customers a and you'll see our kind of progress on that in sort of year to date figures. Obviously, we can't sit still. Software platform is dynamic. It needs to constantly evolve and change and get improved, and we do. And as we've talked in the past, M and A is a really important part of the value prop, and we've made some really good progress over the last few months since we last spoken on that as well. So if we just move on to the Q3 highlights on Page 8. I mean, I think one of you wrote earlier today, more of the same. And I agree with that and I take that as a compliment actually. Yes, it is a little bit more of the same, but in a good way or we think at least in a good way. So we've got our net sales increased overall by 44% and then adjusted for currencies organic is comfortably in the mid-30s of 34%, which I think is pretty good. Then in terms of operating leverage. We think that we're continuing to demonstrate that. So we've got our adjusted EBITDA of £6,600,000 and that sort of translates to a margin of £19,400,000 and then if you exclude the currency impact. It's still nevertheless a very healthy 17.2%. We've had this pattern in the past and this is what I'm very pleased about. It's not one region or one type of customer that's really driving our growth. So we don't think we're a one trick pony at all. We've got very good growth across all three of our regions as we think about them and equally across both the tech enabled and more established customer segments. We'll go into that in a little bit more detail just in a second. Obviously, as you would expect, big focus from us on the integration of Gatfish, and that's going really well. That's going according to plan and kind of thinking a little bit more ahead on the M and A side of things. We're making really good progress on our strategy, nothing specific. Sadly, I can talk about today, but we are making very good progress on that. If we move to the next slide, we're going to talk a little bit in more detail, do a bit of a deep dive on our sources of growth. And you can see here the slide that you'll be coming familiar with. On the left hand side is the customer segment. And you can really see that the pattern, this is a bit more of The pattern that we've seen in the past is continuing. We've got very strong growth from both segments. But as we'd expect, it's the tech enabled guys who are growing a little bit faster. And the 3 year CAGR is at 52%, which is quite impressive, I think, which is great. Flipping on to the right hand side, we've got sort of again very solid growth from all the regions. EMEA in Q3, it's not particularly well, which is great to see. But nevertheless, if you take a slightly longer term view, Again, it's the Americas who've been contributing a lot of our growth. And so taking a step back, both the Americas and the tech enabled segments have been growing at over 50 annually on a CAGR basis since 2018. And I would say that's a pattern we actually expect to continue or a trend we expect to continue into the future as well and one of the reasons we're going to be planning on increasing our investment in the U. S. As well. And I As I mentioned last time around, there's quite an overlap between the U. S. As a geography and the tech enabled segment as kind of where they focus as well. So that's kind of a double benefit for us, if you like. Moving on to the next slide, in terms of regional development, very strong still in the U. S. We've got the quarter on quarter at 40%, where the kind of if we unpeel that a little bit, what I'm really excited by there is the enterprise offering. As you recall, that's kind of one of the core pillars that we have. And we've been focusing on the U. S. For that for the last couple of quarters. We're going to start to get some really good traction in that we announced the NPD Enterprise Partnership a couple of months back. That's I hope to be the first of several, but that's a little bit of an indication of our hope of things to come because historically our enterprise focus has been more in EMEA. But As I said, we've been focusing in addition also on the Americas for that. EMEA, 50% to 53%, doing phenomenally well had a really, really good quarter. That's obviously a little bit driven by Catfish, but nevertheless, excluding Catfish, they were almost 30%, which is very, very respectful indeed. We've got some very good progress with some key customers in the Nordics. Where we're starting to see the benefit of Gatfish and DACH and elsewhere. And we are starting to make some investment. It's more than tip or toe in the water, actually get some people on the ground in the Middle East Africa as well, where we're seeing quite a lot of customer demand. And we obviously use our platform to drive not just our M and A strategy, as we've talked about in the past, but also our kind of core business and new business development activities as well. APAC, growing very nicely, Still very much a focus on ANZ for us and Japan and seeing nice progress albeit on lower slightly lower numbers for the time being at least there in absolute terms, but percent growth really positive. If we look at flip to the next slide and look at our operational KPIs, really nice progress there on B2B customers, kind of nudging the 3,000 there, so which is great, which with and many of those I would say, have been in the tech enabledAmericas in terms of segments and geography, respectively, which is great. If we then go over to the Connected Consumers, a bit more of a flat pattern there. Not something I worry about at all because as you guys know, we're a marketplace and there. It's about growing supply and demand more or less in sync. And we've had years where we've had big jumps in supply as in 2018 to 2019 and periods of less kind of accelerated growth. Also a lot about quality of rather than just absolute numbers as well, which is why the Gatfish acquisition in terms of 500,000 panelists in absolute numbers doesn't sound like a but commercially very valuable indeed. And then finally, of course, we see very nice progress on the completed surveys, which is kind of the combination, if you like, of B2B customers on the demand side, the Connected Consumers on the supply side and that really the complete survey is a measure of throughput through our platform. So net net, I would say, yes, a bit more of the same, but in a good way and we're pleased with our Q3. And now I'm going to hand over to Joachim to take us through the financial update in more detail. Perfect. Thank you, Tom. So more of the same, we are reusing some of the slides from last quarter, so you will recognize these on the flash section as well. Let's move to Page 13 and the overview page. I'll try to walk you through, as usual, left to right. So if you start on the left hand side, we have the net sales development. And as Tom said, we reported another quarter with a 45% growth year on year. We grew from SEK 23,700,000 in Q3 last year to SEK 34,300,000 this quarter. And the underlying organic growth on constant currency basis was 34%. Our gross profit grew from SEK 12,000,000 to EUR13,500,000 this quarter or by 45% as a result of the strong revenue growth and a more or less gross margin year over year. Lastly, and to your right, you have the development of our profitability. So the adjusted EBITDA grew by 74 percent from SEK 3,800,000 last year to SEK 6,600,000 this year. And the margin was 19.4%, which is an increase by 3.2 percentage points of last year. To be noted here, it's still that we have as also has been the case, if you remember, in the previous quarters, We've had a quite material impact on the operating expenses coming from the revaluation of operating balance sheet items. This quarter. It amounted to a reduction of the expenses of 754,000 And it added 2.2 percentage points to the margin. So consequently, without the FX effect, The adjusted EBITA margin would have been 17.2% this quarter. If we don't move to Page 14, we have our more detailed P and L view. And if I should highlight Two items on the P and L. This quarter, I would again talk to our increased efficiency or scalability. So during the quarter, we had SEK 10,800,000 of total operating expenses, including the positive revaluation effect. If you take a look at the 3rd column in the table, you can see that in the red dotted box, we have improved the rolling 12 months OpEx to sales ratio to 33.4% this quarter. Tax to sales ratio to 33.4% this quarter. This translates into continued long term improvement of our adjusted EBITDA. And we have now delivered an 18.2% margin over the last 12 months, as you can see on the bottom half of the page. Let's then turn over to the balance sheet highlights on Page 15. And we have a few comments on this slide, but the main takeaways are really that we don't see any material changes from last quarter and that we have maintained a very strong balance sheet over the quarter and ended in a net cash position of almost EUR 46,000,000 as shown on the bottom part of the table. Next page, please. And this is the final page on the financials, and it's our cash flow highlights. Total operating cash flow in the quarter amounted to SEK 4,700,000. More specifically, the investing activities amounted to SEK 4,900,000 highlighted in the cash flow statement. And that includes both our ordinary investments into our platform, but it also includes a closing adjustment payment of €2,000,000 made in relation to the Gatfish acquisition this quarter. And then again highlighted on this page. We have the total cash balance of €51,100,000 Let's go to next page, please. Our financial targets. You have heard this a few times before. But On the top, we have a sales growth target, and we are aiming to maintain an annual organic sales growth of at least 20%. And as you've seen, for the 1st 9 months of the year, we are clearly beating this target, and we expect to deliver a strong full year 2021. Secondly, in the middle, we have the profitability target, and we are looking to achieve at least 20% EBITDA margin in the medium term. As you have seen on the previous slide and the long term trajectory, we feel very good about this one and we are definitely on track. Thirdly, our dividend policy. We have not made any changes to our dividend policy, and we are, as such, not intending to pay any dividends in the short term. That's a conclusion on the financial section. So back to you, Tom, again. Perfect. Thank you. So if we just go to the final slide, the summary slide that you would have seen before. I mean, if we kind of zoom back a bit and I think about our 1st 3 quarters. Overall, I think we're fairly pleased. We can always do better, of course, but we're fairly pleased with what we've delivered so far. And really, we think this ties nicely back to the investment highlights, I think, as we position them during our go public process, which is very large underlying market with structural shift that we see absolutely as the case still today as it was then and in fact enhanced, if you like, by the COVID situation around the world. We think we're really well positioned at the center of the value chain in between the supply and demand to take advantage of these market dynamics. We do think we've got a very scalable platform and the sort of underlying very loyal customer base, which is encouraging to see. We continue with our organic sales growth track record and margin expansion. We talked about that in the IPO, and I think We're pretty pleased to having been able to deliver that for the 1st three quarters and plan to continue doing so, by the way. And then sort of looking into the future, we continue to think that we're very well positioned to benefit from the multiple growth levers. We've got the Americas as a geography. We've got the tech enabled sector. We've got enterprise. And then we've got M and A of course as well as the sort of the key themes that we not only think about but are focusing on daily, day to day, week to week, month to month to make sure we continue on our currently what we think is a very positive trajectory. So With that, I'm going to pause the talk from our side and open the floor for questions. Thank you. Thank Q3. The first question comes from Pradrag Svynovich from Carnegie. Please go ahead. Your line is open. Thank you very much, operator. Hi, Tom and Joakim, and thanks for taking my questions. So the first one is on the growth. You stated in the report here today that you expect to deliver substantial on the financial targets. And this is, of course, clear when we look at the 9 month performance. Taking these comments into consideration for the Q4, what could you say about that? And also for the 2022 comment where you mentioned that that you expect this trading momentum will continue. Could you elaborate a bit on these statements? Hi, Patrick. Good morning. Thanks for taking the time. So yes, I'm happy to elaborate a little but I would like to say, I'm going to steer away from specific guidance on a quarterly basis. We've decided our Board decided on annual guidance and and given the way our business model works, that I think is the appropriate one. So we definitely have We've had 3 very good quarters. I would say we've now had 25 or so trading days. WeWork weekend as well. So 25 trading days in October. And we see a really continuation of the very good momentum that we've had or that we have, which is great. We're also now, as we approach the end of October, in a position to start looking a little bit into 2022, which is why I wrote what I wrote in the letter, in the statement. So we kind of it's early days, but I see absolutely no reason to change our kind of view of our trading momentum. So net net, I think we're going to comfortably or significantly exceed our guidance for the full year, definitely. Very confident to be able to say that. The only thing I would say is, as we've said in the past, is the comps for Q4, direct comps are going to get a little bit more challenging. So that's the only sort of, if you like, mathematical word of caution, I would say. But from a kind of commercial operational trading point of view. It's looking it continues to look good. Okay. Thank you. And on the gross margin, what has affected it from Q3 last year and now and also sequentially from Q2 into Q3. I'm thinking there might be some positives in terms of platform sales at a higher gross margin, while there could also higher cost on respondents or panels, example. Can you talk a little bit about what is expected? Yes, I mean, there's a couple of yes, sure. So I'll tease out a couple of things, and then I'll get Joakim I'll ask Joakim to give a proper answer. But I mean, In terms of themes, I mean, you're right. So we've got Catfish giving us a little bit of tailwind on that on the gross margin side. Also, revenue mix is good on that side of things. On the kind of headwind side, we have seen something and continue to something of the supply squeeze, so shortage of respondents. It's not a synced problem, I would say, it's an industry issue. We since were been at a number of conferences now that things have opened up a little bit. And I have to say on every U. S. Conference that we've been to. Supply, supply, supply has been a major, major topic of discussion. And I think partly it's been, if we take a step back, if you're one of our supply partners, then they had to dial back or they did dial back during the COVID years a lot on recruitment. And that's obviously impacted the overall supply availability and they're now starting to reinvest, but it will take a couple of quarters to readjust itself. So I think that's definitely a factor. Now I would though say that A big chunk of our supply agreements are on a rev share basis and therefore it doesn't doesn't necessarily impact, but nevertheless, some are on fixed agreements. And so we do have a bit of a bit of a headwind on that. And then the final point, I think is I hope it's a one off. We had we identified quite a chunky incidence of fraud from, I think it was 6, 5 or 6 Supply Partners during Q3, which we've obviously now kind of stopped and our rectifying are in the process of having some clawback negotiations. It does happen from time to time. This one looks a little bit more organized than the more ad hoc stuff we generally see. But that has also impacted GM a little bit. So those I would say are the overall trends. Joakim, is there anything you'd like to think it would be helpful to share with Pedreg on that in more detail. No, actually, I think you did well, Tom. So nothing more. I mean, we are in kind of the range where we think we should be. And then it is, as we said before, and it's kind of a bit too simple answer, but it's I mean, we will go up and down a little bit, between in the within that range. So but it's good, good nuances from you, Tom. Does that matter, Greg? Yes, for sure. That's a couple of great comments there. But it also leads to a follow-up question again. I think on the supply squeeze and demand for surveys. It sounds like it's another high level. And it sounds like it's the demand is higher than you currently are used to seeing relative to your connected consumer base. How Can you bridge this gap, do you think? Is that done through acquisitions potentially, like the one in Gatfish, where you also mentioned you had almost on over demand versus the supply you had on acquiring that unit. So look, I think If we take a step back and take a multi year view, there are supply squeezes come and go in the sector, right? So It's there's always an imbalance between supply and demand on one side or the other. And because we're a marketplace, we see that quite quickly on our in terms of the throughput through our platform. And so I don't worry about it at all because it's not a perfect ecosystem, but it's a well functioning ecosystem, the one that we're in because The supply partners we talk to are acutely aware of what they see as leaving money on the table. If they could provide the industry, including ourselves, with more respondents, then we'd be able to monetize them on their behalf. So it's quite a transparent industry in terms of metrics, which is great because what it then does, it allows the supply partners to kind of see this early on and reinvest, and they are. I can tell you, we've had probably 7 or 8 discussions with CEOs and owners of supply partners over the last couple of months and they all kind of are doing whatever they can to open up genuine supply, not kind of dodgy stuff, Genuine Supply. So they're working on that a lot. So I do think it will address itself. So I don't and that's why I don't worry about it that much. We look at it very carefully. And of course, within the overall kind of Connected Consumer KPI that we share, there's lots of kind of sub KPIs that we look at in more detail by region, by type and so on and so on. But it's not something to worry about. Supply suite has come and go. And it will rectify itself now. Structurally, you're right that this is a sort of reinforcement of our view that M and A is one of the growth levers that we should continue to pull, and we will do so, absolutely. But in terms of the short term, I'm not worried. Okay. And just one final question here. You mentioned that for most of your regions, sales growth is also driven by strong SMR intake. And can you say how much of the growth is explained by customer intake? What kind of customers you have onboard and also their size? Because this is obviously quite interesting for the coming quarters as this can support this momentum you see even further. Yes. So I mean, we don't split it out in terms of kind of organic versus new customer growth. What I would say is year to date. We've got about 500 new ones, I think, now, which is kind of our It's not a target, it's a rule of thumb that we like to think about for the year. So I think we are well on track. Now that's obviously with Catfish, and they had about $240,000,000 $250,000,000 But Q4 for us is a very strong kind of new biz hunting time. So very confident we'll be able to kind of have enough new logos to deliver demand into 2022 and beyond. So but we don't break it down, so to that level of detail. Okay. Thank you very much, guys. Thanks, Pedro. Thanks. Thank you. The next question comes from Victor Hogberg from Danske Bank. Please go ahead. Your line is open. Yes. Hi, good morning. So you say that you continue to take share of wallet with the established segment. Could you just help us with what kind of level you think you are at currently, I. E. What's the potential runway from here? I so it varies enormously by customer. And that's not an evasive question. That's really, I believe that. So if I take on the one extreme Kantar, I would say our share of wallet in terms of money we make from each of their complete is virtually 100% because we've got an enterprise arrangement with them. They use our technology to run their surveys, qualitative surveys and we make money on every single complete. So that's on the one hand. And then on the other, there are some sort of traditional market research firms where we just supply sample. We don't have other technology or enterprise arrangement with them where it's much, much lower. So that's one nuance, we have an enterprise arrangement or not. The other nuance is what their strategy is. So some are very focused some traditional guys are very focused on one particular region or one segment. They might do Automotive U. S. Or they might do Automotive Germany or they might do Pharma U. K. Or something like that. So if it's a very specific segment, we may or may not have that kind of profile well represented in our platform. If we don't, then we're going to have an extremely low share of wallet. But conversely, if it's a generalist sperm that does a lot of work for kind of, for example, FMCG on a multi country or global basis, and we're extremely well placed to help them out. So I would say it really depends. But to give you comfort on runway, I mean, I would go back to the comment I made earlier, which is we're in a 120 something million business and the directly addressable market we have is over €3,000,000,000 I mean there's no even if you divide that into kind of tech enabled and established, there's a ton of runway left. Really don't worry about that at all. Does that help, Victor? Yes, sure. Absolutely. So if you could help Maybe another comment you have in the report. On the EMEA segment or region, you said that there's an ongoing shift to in sourcing. Yes, Help us understand what you mean by this and what it means or not means for you? Yes. So in sourcing is when market research firms start using their own panels. And or on the one hand, that means they might be using our marketplace a little bit less. But what it also means is that appetite for using our technology to run all of their projects, including managing their in house panels increases, right? So that's the shift that we see. And therefore, that's a really good trend for our Enterprise Solutions effectively. Okay. That is good to hear. And on the consumers connected to the platform, up year over year, of course, but sequentially, it's down from $155,000,000 in Q2 to $145,000,000 now. What is the reason for that? Does it have anything to do with the fraud, Which you mentioned earlier with a couple of supply partners or what's the reason and what to expect going forward? So as Yes, I know. So as I said, we keep a very close eye on it, but I don't worry about what looks like a decline because it's about medium term trying to keep supply and demand in sync. And we think that Even with our kind of aggressive growth targets going forward, it will we will manage to keep the supply in sync. Now I think there's 2 factors in there. 1 is, I think the fraud element certainly has not helped. And the second is the supply shortage in the U. S. Doesn't help either. So I think those are 2 time specific factors that will contribute that have contributed to that. But as I said, overall, as a marketplace, we need to look at the medium term. And secondly, it's also about quality, not quantity or relevance rather than quantity, I should say, which is why Gapfish at a high level was only in inverted commas 500 ks in consumers, but those 500 ks are very valuable to us because they're in DACH and that's an important region for us as we talked about in the past. So Does that help? Yes, sure. So it's going to fluctuate. But just Because we have a limited time series, just 2 years back or something like that. Is it common that it fluctuates on a quarterly basis as well, up year over year, but maybe a bit up or down on the quarter. On the quarter. I would need to check. Historically. Mike, I mean, I would need to check and we can check and give you a very specific answer. My gut feeling is, yes, absolutely, it does fluctuate. Yes. Okay. So let's move on to costs then. Would you say that you're back now to a more normal cost run rate with the Q3 figures. And Ben, you're mentioning that the world is normalizing a bit with a bit more fares and meeting customers face to face and so on. So yes, help us on what to expect on costs if this is a normal level to grow from or if you Didn't have something to do in order to be at the normal level. I mean Joakim, I'll pass on to you in a second. I say, I mean, we continue to we continue our responsible, but still ongoing hiring, right? So keeping a close eye on the leverage that we've on the operating leverage we've got. So we're not going crazy on the hiring at all, but but we are continuing with that. The one thing I think that is still below kind of normal run rate, if there is such a thing, is T and E, right? So we are starting to open up and are starting to do conferences and meet clients face to face, but it's still, I would say, a fraction of what it was pre all this situation. But Joakim, is there anything else you'd like to highlight on the cost? No, I think no, I think that's right. Nothing to that. I mean, we said a few quarters ago, I think already that kind of catching up on the COVID situation where we scaled down quite rapidly. I I mean, that's been done. So from that point of view, I think we are in a good shape and have been for a while. I think that going forward and what we see now going forward is that we should I mean, you should expect OpEx to increase, but you should also expect the scalability to be, I mean, as evident as we are now showing in this report. So top line growing by more than 20%, OpEx not showing or not growing by more than 20% in a very kind of rough terms. That I think. But apart from T and E, I don't think there's any kind of big catching up OpEx to think about. Okay, great. And the final one on the comps that you mentioned now in Q4, if you could help us with splitting out the comps for the 2 customer groups you have, the technical and established. If there's anything in particular to think about when thinking about the potential growth in the Q4, given the comments you had in connection with Q2 report and also with the strong growth now in Q3, what that will mean for or potentially mean for Q4 with regards to the comps. So I think the tech enabled continues to outgrow, the more established. And I think that's going to absolutely continue, not just in Q4, but beyond, definitely. And I mean, that's probably the main trend. And the second one is, I think, The well, EMEA had a really good quarter Q3 on a year to year basis. I think the Americas. My hunch is the Americas are going to do very continue to do very well on a for Q4. Now having said that, I'm sitting here almost at the end of October. Seasonality is really goals to predict because of this COVID, right? So plus last year, there was the election year and so on. So It's kind of this has really thrown our kind of phasing of the year in terms of looking forward a little bit into disarray in the sense that it's very hard to predict. We get projects that are moved, projects that are canceled, projects that are and I'm talking about big projects that are suddenly getting reactivated. And it's really hard to predict at the moment. We're in a settling I think we are in a settling down period, hopefully, but it definitely hasn't settled yet. Okay. And on that, did you see any with projects getting shifted in time, did you see any and the projects getting shifted from October into September, I. E. Added to Q3 and that did come from the Q4? A few have been. Yes, absolutely. So yes, some got shifted from and It's obviously the clients who decide. It's not us who decide whether it's the platform that delivers, right? So if the client says, I want to do it and finish it in September, then our platform kind of delivers that, So it's not our desire or wish, but that has happened, yes. Okay. And would you be able to quantify it or and what degree of detail can we get into that? No, no, I don't think we can, unfortunately. We obviously, we see the numbers, but we count counts going to those specifics, I'm afraid. Okay, fair enough. Thank you very much. Thank you. Thanks, Victor. Thank you. The next question comes from Daniel O'Vin from Nordea. Please go ahead. Your line is open. Yes. Hello, Tom and Joakim, and congratulations on a well executed quarter here. So I'm wondering a little bit about the very strong trajectory in the market that seems to continue also now, and The pandemic related restrictions are being lifted. And perhaps, I mean, it seems like you're growing well ahead of your medium term targets here. And so is it fair to say that perhaps even the lifting of restrictions when consumers are changing their habits, That, that is driving growth at the moment? Or do you think it's more of a structural growth that we could see for years ahead. Perhaps you can have any comment around that. Sure. Daniel, so I think it's both. So I think there is both a move from offline to online. And what I mean by that is a lot of the face to face research methodologies got stopped overnight, and they are starting up a little bit, focus groups and Street interviews. But we're not nearly to the same level as they were pre pandemic, at least not yet. So I would say there is definitely a so that's one dimension. The other dimension, of course, is that mobile phone access, if you think about it on a global basis, is continuing to spread. And that's obviously good for us because the more potentially digitally connected consumers there are, that's a potential target audience for us. So I think the macro trends definitely continue to be in our favor and in the favor of the other digital players in our industry. In terms of the other thing, of course, is you mentioned the short term. So I would say change and changing environment to help us because brands want to know what's going on, right? So there was So right now with some restrictions getting lifted and certain consumer behaviors starting to change, that's good for us because it raises questions in brands' mind as to what is going on. And therefore, they want to ask questions. So just as going into the pandemic, there were loads of questions. And during the pandemic, there were loads of questions. But now with certain geographies and regions lifting, It's the same question or different questions, but Brand, so change helps us because it raises questions in Brand's mind. So I think there's both a combination of short term kind of flux in consumer behavior. That's good for us. And secondly, there is the continued kind of medium to long term structural shift that we think that we see continuing as well. So the answer is both. Yes. Okay. Interesting. And also when you talked about the supply squeeze, would you say that it has impacted your sales in any way? I mean, Could you have grown more if it were not for short supply of respondents? Unfortunately, the answer there is yes. So we do see kind of the unmet demand or the unfulfilled completes that are being requested that we can't deliver. So yes, we could have done. There is a bit here. And I mean just for us to understand, I mean can you quantify in any way? I mean are we talking a few percent here? Or is it a material impact? No, I don't want to go into that or can't go into that or Joakim will press them for me. But it does reinforce what I said earlier, which is the kind of the structural need for M and A or the structural benefit from our point of view of M and A. Okay. And also when I look at the numbers here, so we already talked about the connected consumers being down. But then You can also see that the completes per connected consumer seems to be up as well as sales per completed survey. So I mean it seems like it's a strong demand and not being able to really be met And that's why there's a pressure upwards on these numbers. Is that a fair comment? Or would you say that there's anything okay, so that's the main driver of it? Okay. Also another question then on Asia, because I was looking over 'twenty. Asia seemed to be growing a bit faster than the other regions, but now it's the opposite. So is there any particular reason why Has slowed down. And do you think that, that could change anytime soon? I don't think that necessarily slowed down. I think it's the other regions that are accelerating. So I mean, in I mean, Americas, as I said, have done we've double down on investment there for a couple of years and we're starting to reap the benefits. And so it was a kind of and investment choice by us saying, if we have €1,000,000 to invest, where does it go? And we've chosen to put the bulk of that in the Americas, 1st and foremost. So partly it's choice because we're going to get a sort of a bigger return on our commercial investment there. But nevertheless, we are still investing into Asia and they are growing. So I don't think there's anything structural going on. It's I think the other regions are just growing faster, and that's by design. Okay. Okay. Then just the last question here. On the enterprise offering. I think you mentioned during the IPO process there was a few percent of sales. And Can you say anything more about that at the moment? I mean, is it has it doubled? Or is it growing faster than the group on average? Or can you give any more data around it just so we get some kind of idea where it might be at the moment. So Daniel, I think what I said I hope what I said was that the license revenue from enterprise deals was a small since revenue from enterprise deals was a small percentage, very small percentage. And that's which is a little bit different to say what does enterprise overall contribute. So because if you think about and enterprise deal. There will be multiple revenue streams that come from that. 1 is licenses, as you absolutely correctly point out. Secondly is, We typically do minimum spend agreement of the enterprise client buying off our open marketplace. And thirdly, we generally run a private marketplace for those enterprise customers as well, which is they have private arrangements with their key supply partners and that is then transacted through our platform. And we take a fixed fee, which is at a we account for as a very high 100% effectively gross margin. So I would say the enterprise segment overall is growing really nicely. The license component won't have exploded at all. It's for the foreseeable future, I think it's going to be a small percentage. But as we add NPD and other enterprise clients. The overall importance of enterprise to us will continue to grow, but the benefits to our business is beyond just the license fee. It's also because they have minimum spend commitments and they use all their project managers use our tech stack and therefore there's high Thanks, Daniel. Thanks for your interest. Thanks, Daniel. Thank you. The final question comes from Daniel Torshin from ABG. Please go ahead. Your line is open. Yes. Hi, guys. I only have one question. There have been quite a lot of good questions already. But There aren't too many players in the U. S. In your industry, obviously. Do you assess your closest competitors growing at the same rate as you for the moment? Or are you taking some market share? And what is the main reason of that in that case? So the answer is we don't know, but there are price of sales growth and competitors lose it. As I think we've said in the past, we don't know because they're a private company. We don't really know. What we do feel, and it is a feel because we don't have the numbers, is that both we and them are significantly outgrowing the market, which is what we said in the IPO. We're based on the market assessment that we commissioned and we think that's absolutely still continuing today. Whether we or Lucid are growing faster, don't know because we don't have visibility into their business. Okay, fair enough. Thank you. We have no further questions. So I will pass back to the speakers. Fantastic. So thank you. So listen, thanks everybody for taking out the time and in a relatively short time putting together some very thoughtful and good questions. Thank you for that. I hope we've done our best to answer those for you and give you good sense. As we said at the beginning, and I think in fact, I'm plagiarizing from one of you, It has been a quarter of more of the same, but in a good way. So we're pleased with our Q3. We look forward to talking to you again in Q4 and in due course. Thank you.