Earnings Call: Q1 2021

May 11, 2021

Perfect. Thanks, Maxine. Good morning, everybody, and welcome to our 1st quarterly presentation. If we go straight into it and move to the agenda slide, you can see what we're planning to cover today. First of all, very briefly, since this is our first sort of RA and in Public Life, a very briefly short recap of about our company, about ZYNTH, then the Q1 highlights, the all important, of course, financial summary and then a short wrap up, and we'll have plenty of time for Q and A as well. In terms of presenters from the company today, service today, both of whom you've met, sadly only virtually, I think, so Joakim Anderson, our CFO and myself. So if we get straight into it and look on the first slide, this really is a recap of what you will have seen in our roadshow presentations, we've updated numbers, right? So it's really I mean, what we are is we are digitizing what is still largely an analog and people heavy industry. As you have seen and also demonstrating in Q1, we have a large and growing customer base. You can see on the bottom left hand side there, 2,600 B2B customers and we've added to them very nicely in Q1, and they do tend to stay with us for a very long time. As you can see bottom right hand side, almost 70% of our 2020 net revenue came from customers who'd been with us since 2016 or prior to that. In terms of underlying market, very large, no concern at all about our ability to grow our directly addressable market, €3,500,000,000 And as we said during some of the roadshows and we're seeing again today, some of the COVID related attributes or kind of features are accelerating the path to digitization in many industries and also ours, which is a good thing, of course. Cloud based B2B software platform, which will just refresh our minds on the next slide. And we do have a strong track record of profitable organic growth. If you look on the right hand side, you can see the blue bubbles showing the year on year growth. The left hand three, the ones that you'll be very familiar with, 2018, 2019, 2020 comfortably in the mid to high 20s. And if we look at our LTM through the end of Q1, we're now we've now just 30% in terms of organic growth. We overlay then the M and A and we get to a CAGR of 26%, which we're pretty pleased with. Strong commitment to data security and privacy, as you would expect, that's something that we spend considerable time and money on. And of course, the global nature of our business, something that we think is very important. It's a competitive differentiator, something that our clients asked for, and you can see that as evidenced in the pie chart on the bottom there, net sales by region, a little bit under half of our revenue from the Americas, a little bit under half from EMEA and then a very a decent 10% chunk from APAC, which is growing very nicely indeed. If we move to the next slide, this just gives a little bit of a recap of our software platform. And you've got Scent in the middle there. And just to refresh our minds, what we really do is we connect our B2B customers on the left hand side with the 149,000,000 now consumers who've opted in to the panels on the right hand side. So tumors who've opted in to the panels on the right hand side. So really what we do is we allow brands and companies who want to ask questions on the left and we connect them in real time in a programmatic way mostly with consumers who want to answer questions on the right hand side. And as said before, we do that on a very much a global scale in terms of customer base, in terms of our workforce and of course also in terms of our supply footprint. Now finally, in terms of the recap, I just want to touch on the next slide on our strategy because many of the results that we're going to be presenting to you today relate to this. So we've got 5 growth levers that we've talked about in the past. And moving left to right, we've got increasing share of wallet with established inside companies. We've got growing with the tech enabled, who really in many ways are the future of the industry and growing very fast. We've got new customer acquisition, which in the context of our customer tenure average customer tenure, which 6.6 years and growing is a very good ROI on the sales investment. And then of course, as you'd expect, we do spend considerable time and effort and money on expansion of the platform, features, functionality, products and so on. And then finally, is M and A as well. So if we now move to the first slide of the Q1 highlights, I would say we've had a really good Q1. That's kind of the two word summary might be really good. Net sales increased by 33% an organic growth adjusted for currency nudged 40%, so very positive indeed. And then due to the nature of our business model, quite a large chunk of that cascaded flowed down through to the EBITDA, where we had CHF 5,500,000 versus CHF 3,200,000 in Q1 last year and our margin is now nudged almost 20%, 19.7%, which compares to about 15% in Q1 2020. Now we're very much a kind of a revenue driven, a sales driven business model as you will have understood in our recent discussions. And what I find really encouraging is that our growth is really very broad based. So we'll go into these areas in a little bit more detail in a second, but both regionally, we've had very broad based growth, but also in terms of customer type, we're growing very nicely across both of our major segments that we think about. Now I don't want to gloss over COVID because it continues to have a significant impact. Now from a financial perspective, it does seem to be manageable, right? We do seem to be managing okay with all the COVID stuff that's going on. But I do want to call out if there are still significant consequences and impacts for many of our colleagues, customers and partners, particularly in India. And of course, we're doing what we can to help. In terms of Q1, I mean, obviously, IPO, big milestone. 19th February, we started trading and that was also the opportunity to welcome 44,000 new shareholders. I don't know how many of you are on the call today, but if you are, you're very welcome indeed. So that's in terms of overview, if we move to the next slide, this gives a little bit of color around the net sales. And as I said, it's very broad based growth, but I would call out in particular 2 areas. 1 is the tech enabled and secondly, the Americas. So on the left hand side, you can see net sales by customer segment, very good growth in both of our major reporting segments, but in particular with the 2nd enabled. And I find that to be particularly encouraging, both on the tech enabled and the enterprise solutions, we continue to win. What we actually did in Q1 is we globalized our commercial teams, which was focusing on the enterprise side, and that really was to mirror how our customers or potential customers are set up there. And we have really a very healthy pipeline on that for that area. Geographically, broad based growth very broad based growth again. And just to kind of remind ourselves, if we take the tech enabled companies and the Americas as 2 sort of separate segments, each of those have doubled in size between 2018 2020, which I think is a really positive development. If we now delve a little bit more into the regions and move on to the next slide, I would say by way of introduction, we've got very good growth in all our regions. I think we've got very good momentum in all of our regions. And importantly, looking into the future, I think we've got a very long run and lots of opportunities in all of our regions as well. If we talk about them in a little bit more detail individually, moving left to right, the Americas, I mean, it's really, really positive momentum. We've got that in new business, we've got it in the tech enabled sector in particular. And really, the momentum we've got there doesn't show any signs of slowing down at the moment. Enterprise offering, which we talked about the last time we met, right now, we're relatively modestly represented in the Americas in terms of enterprise customers, but we really are starting to gain traction there. And as I said just now, pipeline is looking really good. And we're really going to continue to invest in the U. S. As it is the largest market research insights market in the world by some margin, and we've got lots of opportunities left. In terms of EMEA, also good growth. And there, we've got very good opportunities to maintain and grow our share of wallet in the established customers, particularly in the Nordic. DACH region and the U. A, definite, definite growth opportunities, in particular, well, both actually, both and the UK. And as we spoke last time, we've got we've started modest, I would say, investment into nascent markets, Middle East, Africa and really, I think this goes back to one of the COVID impacts is these markets are now some of these nascent markets are digitizing more rapidly then even they were before. And we obviously want to make sure that we're in a good position to take advantage of that. And then finally, but not least, APAC, very good percent year on year growth. We've got very good momentum. We're focusing, as you will or in Australia and New Zealand and Japan as priority markets, and we continue to see very good traction there. Next up, I'd like to move on to some KPIs, if we move onto the next slide, and there in the past we've talked about B2B customers, we've talked about connected consumers and completed surveys. If we again move left to right, I think good progress in Q1 in terms of Connected in terms of B2B customers, I think we're on pace for adding 500 new B2B customers during the course of 2021. I think the combination of how long they stay with us, the tenure of 6 0.6 years and our ability to generally grow share of wallet with them really makes for a pretty powerful in my opinion, a pretty powerful cocktail, positive cocktail to continue the momentum that we I mean, the momentum we have on the demand side, which is a good segue into the Connected Consumers, we do have strong demand. We're seeing strong demand and we're ready for more Connected Consumers, right, we are ready for more. We've added some in Q1, and we're ready for more, right? So and as you know, we've got a dedicated in house team focused on identifying the right sort of panel partners and other companies who want to partner with us to provide Connected Consumers, but equally, this is an important part of our M and A rationale. So and we're making good progress on the M and A side as well. And then finally, in terms of metrics, it's important to talk about the completed surveys. Now the optically or mathematically, it doesn't look like a massive uptick between 2020 average or total rather and Q1 LTM. And that's really a function of product mix and pricing, right? So there will be variances just as there are on GN quarter on quarter, and those are driven really by product mix and pricing. And so it's not a cause for concern at all, I would say, and it's showing trend in the right direction. So that's really for me in terms of Q1 highlights with a bit of a deep dive into some of our key customer segments, regional view and how we're thinking about our KPIs. And with that, I'd now like to hand over for to Joachim for the all important financial update. Perfect. Thank you, Tom. So I will now take you through a couple of slides with the financial highlights of the Q1 of this year. So if we move to the highlight slide. So first, to your left on this slide and the net sales development. And as you have heard Tom say, we have seen a very good growth in all regions and good revenue contribution from them. And when we add it all up, it refers to total revenues of EUR 28,100,000 in the quarter. And this, as I said, corresponds to an increase of 33% compared to last year's. And when we exclude the currency impact, we are showing a 40% growth in the quarter. Secondly, our gross profit in the middle, and it grew from SEK 11,400,000 to SEK 14,500,000 or 28 as a result of the strong revenue growth year over year, the gross margin declined slightly to 51.5% on the mix effects relating to customers, products and supply partners. And then thirdly, and to your right of this slide, you have the development of our profitability, the adjusted EBITDA. And as you can see on this slide, we had A substantial uplift in profitability, sorry, year over year. And we reported EUR 5,500,000 of adjusted EBITDA, which corresponds to 75% increase and a 19.7% margin. This improvement is primarily driven by the strong revenue growth and the ability to scale the operating expenses. And if we move on to the next slide, we will To mean a little bit more on the profitability drivers. And what we can see on this slide is an overview of our operating Expensive. And I have a couple of comments of clarification to make on this slide. And we have highlighted the items I will speak to with the red dotted boxes to the right. So in the Q1, we are recognizing EUR 2,400,000 as items affecting comparability. This includes 2 items. So first, the cost for the IPO, which amounted to EUR 2,800,000 in the quarter. And then secondly, income in relation to a loan forgiveness in the U. S. Amounting to EUR 426,000. So these are both included in the reported OpEx, but excluded when we show the adjusted numbers to better reflect down the line performance. The second highlight is on the scalability. And you can see that the adjusted total OpEx to net sales it's coming down from almost 39% in Q1 2020 to 32% this quarter. And you shouldn't draw too much of conclusion based on a snapshot number like this, but rather look at the longer trend. And we are seeing this moving in the right direction and feel very good about the scalability of the business model. Then the third and final highlight it's on the adjusted EBITDA margin and the Q1 number of 19.7%. The highlights here, apart from the number as such is that we, in this number, have €805,000 positive FX effect relating to the revaluation of balance sheet items. And then finally, as you can see on the bottom graph, we are on a good trajectory on the LTM adjusted EBITDA margin development with solid improvements quarter by quarter. So let's then turn over to the balance sheet highlights on the next slide, please. And the key takeaways on this slide are on the capitalization and the cash position, so both obviously as a consequence of the IPO in February. And there, we issued 10,600,000 new shares at a price of SEK 0.72 per share. And with that, we ended the quarter with a total cash position of EUR 68,700,000 and a total equity of EUR 221,000,000. So with almost no debt, we are very well capitalized and we are in a good position to execute on our strategic priorities. Next slide, please. So if we take a quick look at the cash flow highlights as well. So the total operating cash flow for the last 12 months were SEK 5,300,000, but for the Q1 this year, it was a negative SEK 4,400,000. And this was driven by an increase of the net working capital, which in turn was a consequence The top line momentum, but also due to the repayment and forgiveness of COVID-nineteen related government loans from last year, in total amounting to EUR 1,800,000. Apart from that, the cash was increased by EUR EUR 9,100,000 from the financing activities. So again, relating back to the IPO in February. And then finally for me, on the next page, please, we have our financial targets. And this will be a repetition and for the ones that followed us during the IPO, but we have established 2 financial targets and a dividend policy, as you can see on this slide. So first, on the top, we have the sales growth target, and we are aiming to maintain an annual organic sales growth of at least 20%. For Q1, we are clearly in line with this target, and we see no reason for why we shouldn't be able to deliver in line with this going forward as well. Secondly, in the middle, we have the profitability target here, and we are saying we are want to achieve at least 20% EBITDA margin in the medium term. And we feel comfortable also with this target and have seen great momentum during the Q1 of this here, also as highlighted on the previous slide. And then thirdly, our dividend policy. And as you can read on this slide, we are not intending to pay any dividends in the short term. As you can understand, having just raised new money, we are rather focused on investing Into our business, both through organic initiatives, but also through acquisitions. And that concludes the financial section. So back to you, Tom, for the summary. Great. Thanks. Thank you, Joakim. So if we move to the summary slide, I mean, this is a recap of our investment rationale, when we last met, but I think it's a good sign to show because I think our Q1 results kind of support or reinforce what we said a few months ago, we definitely continue to operate in a large underlying market with very structural positive shifts in our favor. As I've said, I think some of the positive, if that's the right word, COVID impacts are accelerated digitization in some markets and the start of digitization in others, which is obviously a good thing for us even if COVID overall is horrendous. We think in terms of our positioning, we're very well positioned at the center of the value chain at the choke point of supply and demand, as we said before, which is a good very good place to be, we do have a very scalable software platform with a loyal and, as we've shown, a growing customer base and equally, we said last time, we've got a good record of organic sales growth with margin expansion. And I would say our Q1 results are definitely a big pick on both of those points. And then I guess, perhaps most importantly, we continue continue to be, in our view, very well positioned with for future with multiple growth levers. We've got very good traction with tech enabled. We've got good momentum with our established players our established customers. We are securing new customers as we've shown in Q1 and M and A as an additional strand we'll growth lever as well. So overall, I'd say we're pretty pleased with Q1. And with that, I think that brings us to the end of our formal, if you like, presentation. I'm going to now pass over to Maxine to guide us through the Q and A. Our first question comes from Prudraj Savanavec From Carnegie, your line is now open. Thank you, operator. Thank you very much for taking my questions. Wondering a bit on your guidance here for the financial targets for others. So you want to grow at least 20% organically versus a much stronger figure posted now for Q1, which is also true for the end of 2020. And I know 20% is in the medium term, but can you help us a bit on how we should think in the near term where momentum seems to be quite strong? And then Tom, I think you also, your part mentioned, you see no reason for a slowdown, for example, in the U. S. I I mean, I'll start and then Joakim, I mean, feel free to chip in as well. I mean, I would say, I'd like to stick with our guidance that we have for the time being. It's our 1st quarterly presentation. Let's get a few more quarters under our belt and then talk about maybe rediscussing the guidance or not. I mean, more fundamentally, I mean, I agree with you. As I said, I do think we've got very solid momentum. I think it's broad based, which is encouraging, on the revenue side, what I would say is, I think the quarter on quarter comparisons versus 2020 are going to be potentially, what's the right word, odd, right, because 2020 was a very unusual year, it didn't mirror our traditional, if you like, phasing, business phasing that we have at all, for all the kind of obvious well known reasons. And therefore, I think we're going to see some unusual year on year comparisons in future quarters would be my hunch right now. But I in future quarters would be my hunch right now. But I really don't know. I guess none of us know what really is going to pan out donations and all the rest of it. So I think the upcoming quarter year on year comparisons are going to be unusual and may fluctuate. And then on the so that's on revenue. And then on the EBITDA, I would say, I think, yes, we've clearly had a really good EBITDA. But and that's good news because it does show the inherent scalability in our model. We have had having said that, we've got a bit of FX tailwind in there. Having said that, we've also we have hired people. I think it's 27 people we added in 2021 in Q1 are just gone. That's a little bit timed where we originally planned to be not much, but a little bit. So I think there's going to be some swings and random outs on the EBITDA as well going forward. I mean Joakim, do you have any additional thoughts on that? No. I think that summarizes quite well. It's on kind of seasonality and year over year comparisons in the quarters on the growth and yes, and the FX and But still, I mean, still the scalability point is valid. So but no, nothing more to add actually. All right, cool. It's very clear. And one question on the gross margin as well. If you could elaborate a bit on it and why it's down in year over year terms, I know you mentioned mix and supply, but can you give some more flavor on these drivers and also what do you think about this process progress ahead? And I think you said also, Tom, that you the direction of travel is improving. So somewhere in the gross margin, if you can. I mean, so I think we've said during the road as well that we fully expect and have seen that in the past gross margins fluctuate a couple of percent points, plusminus, quarter on quarter. But the inherent the direction of travel is in a sort of flat to slightly positive direction. So it doesn't I'm not concerned by that. But it is product and customer mix, which being form, we're facilitating supply and demand. And therefore, it's not totally in our control as which customers buy and which kind of panels or respondents they choose to pick from. So it's I think it's just within the realms of normal fluctuation is my read on that. Joakim? No, no, I agree with you. So the last 3, 4 quarters or 3 quarters Have been kind of within the 50.5% 52%, 53% range. So I think that's probably what you should expect. All right. Thank you very much guys for taking the questions. Thank you. Not at all. Pleasure. Thanks for your interest. Our next question comes from Julian Serafini Tom Jeffries, your line is now open. Hi, thank you. So a couple of questions from me then. I think number 1 is, Tom, I think you spoke about expectation of adding around 500 or so B2B customers this year, right, this calendar year. Can you share a little more insight in terms of what kind of As you're looking to add, are you places primarily market research agencies and online survey companies? Or should we think about it more in terms of traditional enterprise CPG companies and so on? That's one angle. And then the second question I had was you also talked about the M and A for potentially for panel assets, right, something that you're looking at doing. Can you discuss a little bit your expectations in terms of what that would be for an uplift in terms of gross margins and EBITDA margins, if there should be 1 or not from M and A? Sure, I mean, I can start on those. So in terms of the customers, I mean, our primary focus continues to be the market research and insights space, as we talked about last time, so we do have about 10% of our revenue coming directly from brands, but that is not something that we are aggressively pursuing at the moment. A couple of reasons for that. Number 1, we still got I think we've got loads and loads a runway in the market researchinsights space. And secondly, as you all know, Julian, the tech enabled sector, Qualtrics, Sappi, SurveyMonkey and others, I mean, that's kind of their bread and butter, which is to productize, package up, if you like, research methodologies into easily usable UI and UX and make that available to brands, so we don't want to get into it's not helpful for us to start competing with them partly because they're very important and valued customers and partly because they're very good at what they do. So market research and insights is the prime continues to be the primary focus for us in terms of new biz dev. And then in terms of M and A, I mean, you kind of ask where we're at. I mean, we're making good progress. There's nothing that we can share today in terms of specifics. But we raised some primary. We've got some bank debt that Joakim talked about. So we do have some considerable dry powder, and we've had and continue to have some very good discussions in that area. In terms of the financial effect of M and A, I mean Joakim, I think that's a good one for you to pick up. Yes, sure. So I can add to that from that angle. I mean, it's so depending on what the target company would look like, right? But as we said before, I mean, we are looking from a number of different lenses when we look for companies to acquire. On the financial and the P and L effect, I mean, there's a revenue component essentially there because we're looking for panel companies to supply partners where we have unmet demand. That would have a revenue impact. We if the target company would be a partner of ours already, I mean, then we would have the gross margin effect, which would mean that we don't share revenues with them. So we can keep that for ourselves. That would have a positive gross margin effect. And then thirdly, on kind of a P and L perspective on the EBITDA and more to the synergy level, perhaps it's all also depending on whether they we have team overlaps or there's tech overlaps and kind of which are really 2 hard synergies that we can take out from the cost base probably primarily. But it all depends on what the target company look like or how we I mean, what financial results or P and L effects we'll get out of an acquisition. Okay. Thank you. That makes total sense. Yes. One last question, so I can just slip one in quickly. You guys have showed Kantar as well as a customer a couple of slides ago. We've seen Kantar grow and acquire I think it was numerator last month I believe it was. I I mean could that potentially change the relationship with Kantar or anything you can comment on that? I mean it's early days for their acquisition, I mean, Kantar, as you will know, is organized into different divisions. It was the Insights division that made the acquisition, at least that's our understanding, whereas our primary commercial relationship is with the profiles division. So no, we don't expect any dramatic change because what Newmarish do is they're very good at what they do, but it's different to what we do. So and we work for a different part of Canton. Got it. Thank you. Thank you. Our next question comes from Daniel O'Vin Matt Nordea, your line is now open. Thank you very much and congratulations, Tom Joakim, for a strong set of numbers here in your first reported quarter. Yes. So I was just one thing on the very strong sales growth. So you mentioned a couple of times here that We have the pandemic and then you also seen a very strong digital commerce developing during this time. But I just wonder, do you have any idea of how much this actually Have supported your sales. I mean, would you have been close to these kind of levels without the pandemic, you think? Or is it A major support to your sales development. That's the first question. Daniel, it's a really good question, but what I find impossible to answer, maybe Joachim is smarter than me, maybe he has a good idea because it's kind of I mean, what you're kind of asking is what would have happened without COVID, right? So and that's really I mean, I'd be BS ing you if I try to get to us. I honestly don't know as we most of Q1 last year was not COVID impacted. We started to see a little bit of an inkling of the last week. This year definitely was and it's pluses and minuses, right? So pluses are kind of at the macro level, a lot of need on the demand side for digitization. It's consumers connected consumers around the world kind of reaching to be more digital if they can because they can't meet up and transact and interact face to face anymore, on the other hand, on the negative side, it's brands some brands and some sectors majorly impacted by COVID and having to reduce their spending dramatically in all sorts of marketing and market research related areas, and then you've got the whole kind of geographical, I mean, it's really very hard to predict or to even give you a sensible answer. So I'm not going to try. Joakim, do you have a Yes. I don't know if you're looking on the spot to say not I'm not sure that I do, but No, I mean, but I think and Daniel, you know all of this, I'm going to say now. But what has happened to repeat and maybe in other words, same words, I don't know. But what is happening is, I mean, this is driving the digitalization of the sector. It is driving the need for cost efficiencies. It is driving a need for more consumer insights because the consumers' behaviors have changed. And as you know, I mean, When you are in the sector and digitalization is happening and then if there is some kind of normalization, if you think about the normalization on COVID at least, hopefully, I mean the digitalization is not turning back to kind of offline, online shifts not turning back to offline. The face to face meetings, low efficiencies, digital meetings, more efficient. I mean, so that's obviously beneficial for us. But then to isolate And then, well, draw out or present a number of that effect in our P and L. Yes, no, I agree. It's impossible, probably. Okay. All right. Fair enough. One more question was that on this IPO side, and I understand if you can't Say more details, but just so we understand the process around this because during our discussion previously, you talked about The 9 targets that you were reviewing. And I just wonder, I mean, is this still the case that, that is A number of companies that you're looking at and how what is the availability of panels for you to acquire? I mean, are there a significant amount of that, that you think could be potential targets for you? Or is it more of a handful that you would like to acquire? That's my last question. Thank you. Sure. No, thanks, Daniel. So I mean there's 2 questions within that, I guess, if I've heard you correctly. First of all, it's kind of how we're getting on with our list. And the second question is how many the targets are we planning to acquire. So in terms of the list, it's still in the sort of 8%, 9%, 10 range in terms of number, what we what I will say though is that a couple of because we have had intensive discussions, so we've got a substantial team of people working on this. So some have fallen off the list because for different reasons, but others have joined. So I would say we're still working on a substantial list with different companies at different stages of the funnel, if you like. But we're getting more refined and more specific. So that's in terms of the list. And then in terms of how many, I mean, I would kind of reiterate what I said last time is we're absolutely not and I'm surprised not wanting to become a panel company. That's not our intent, but a small handful of, for us, strategic acquisitions either strategic geographies or to fill out gaps in our kind of profiling point, that absolutely makes sense. So I think about a small handful, not dozens and dozens. Perfect. Okay. That's all. Thank you very much. Thanks, Daniel. Thank you, Niall. Our next question comes from Victor Hogberg from Danske Bank. Your line is now open. Hi, good morning. So a A follow on question on a point which you already touched upon. But the EBITDA margin here, you're almost at the 20% target here in Q1, rolling 12 months, A bit below that. But this is with Q1 being a seasonally very small quarter. I know you had some positive effects from and so, but what to expect going forward in terms of the timing of the EBITDA target? Joakim, do you want to start on that one? Yes, sure. I mean, we stick to the guidance for the target that we set out a quarter ago. We obviously had a good momentum here. You know the FX effects, take that out as well, but we are definitely on a good trajectory and we see no reasons for why we shouldn't continue on that path. Then it's also difficult to just kind of extrapolate the effect from our Q1 and and use that and say that, yes, we will hit this in next quarter. So we'll stick to the medium term guidance on the 20%, but Yes, we're off to a good start in this year. The other thing that I would say is, I mean, you mentioned phasing and that Q1 typically is not our best quarter by by some margin, and you're absolutely right, in our 20 plus years of history, Q1 has never it's never been our best quarter. But this goes back to what I tried to say a little bit a while ago. I think we're going to see some unusual phasing and seasonality in this new world because last year was so weird and because of the impacts, both positive and negative of the pandemic are going to kind of play out play themselves out this year. So I think the some of the year on year comparisons are going to be a little bit unusual. And I don't think any of us know exactly how it's going to look in the coming quarters despite 20 plus years of relatively steady seasonality, I think it's going to be unusual for this year at least. I understand. So I understand that the year over year Growth rates will look kind of funny, maybe. But in terms of sequential development, do you think we could have some kind of guidance from the previous seasonality with Q1 being a small quarter, Q2 above that in terms of absolute numbers in sales, Q2 below that. Thank you for the highest one. Would that be to be expected this year as well or in I think Joachim has this big red button on his desk, which if I talk about the future too much, he presses it and then I go silent. So trying to navigate around the red button, it, I think I'm going to resay what I said, which is I think the seasonality and the phasing of this year is going to be different than it has been in the past just because it's because of all the circumstances that we've talked about. We do have positive momentum. We are confident of meeting the guidance that we've given us for the year. But I think I better you all, Kim? Is it something that will bring above the red button? Yes, yes. No, exactly. No, but I mean fundamentally, Victor, I think you're right. I mean, you If you look at what's driving the seasonality in the past, I mean, it's definitely around, well, take Q4, which is the Strongest one. I mean, where there you have all the budget, budget dumping and you have the shopping and seasonality of the Christmas and all That's probably going to remain. And I mean, a little bit the same on Q2. So I would say that's underlying, yes. But then we have this filter of whatever COVID brings to us and lasting effects from that. But I would say that you are probably it's probably fair to assume the seasonality, the basics underlying seasonality continue. I don't know if that helps at all, but Yes, sure, absolutely. It helps. So in terms of costs this year, in your report, you write about the loan forgiveness, the EUR 400,000 in Q1, positive effect And EBIT and then remaining EUR 1,100,000, is that going to be taken now in Q1 in Q2 and reduce costs in Q2 with EUR 1,500,000? Yes. Correct. And it's likely going to be treated the same way as in Q1. So We'll adjust for it when we talk about the adjusted numbers. Yes, of course. And in terms of other costs to adjust Do you have any outstanding or remaining nonrecurring costs from the IPO or activities and which you will take during the rest of the year. No, no. So that has been that book is closed. Okay. And also on the working capital, you saw a slight step up here or in terms of the share of revenue step up from the Q4 level As you grow, is this a level to expect going forward? Or what to expect in terms of the net working capital in relation to sales? Yes. I mean, I think we are all very happy with the report and everything in the report, except for probably the working capital and how that has turned out in the quarter, there are a couple of kind of quality one off effects in there, which is, I mean, as I said, on the these government subsidies that we have now paid back and been forgiven on the table side or liability side. On the asset side, we are building we're tying more capital as we grow. So that's something underlying in the trend we should probably expect Going forward as well, I think yes, there are some other effects in there. I'm not happy with the number in Q1, let's put it that way, if that is enough. So given your fast growth over the past couple of years doubled your revenues over the past couple of years. Do you have some negotiations to do with your suppliers and your customers in terms of the payment flows that could be any low hanging fruits? There might be fruits. I don't know if they are low hanging, but it will be fruits that we are chasing and trying to pick. Okay. So last question for me. It's a bit hard to separate out the quarterly number of completes in Q1 versus Q4 and to be confident that I have the exactly the right numbers to in order to get the revenue per complete, could you elaborate a bit on that metric and where you think that is trending? Joakim, do you want to kick that off? Yes. I don't have the number in front the exact number in front of me. And I mean, I know that you want to do that calculation as well, which is a little bit difficult, and you know or probably know and remember that we spoke about the complete, the private marketplace and within the Enterprise Solutions that is distorting or disturbing that calculation a bit, but we might be able to get back to you on a little bit more detail on I don't know, Tom, if you have anything more, kind of, high level trending. Well, high level trending is the pricing at the moment is going a little bit is there upward pricing pressure? Because the and this is anecdotal evident from our colleagues and partners in the industry, I mean, there is good demand across large fairly large sections of certainly the tech enabled sub segment, but also on the more established. And because we operate a marketplace, supply and demand is never perfectly balanced. I would say right now, there's kind of we have very strong demand and supply is being ramped up. So I would say that this directionally, I would say there's upward pressure on pricing at the moment. But if you look at that That's what you need open exchange complete, by the way That's on the open exchange, complete exactly. So and what we would expect is over time that evens out because as the industry realizes that with pressure, then there's new supply that comes on stream and so on. So over time, it will even itself high. But right now, There's a little bit of upward pricing pressure on the open exchange. Okay. Does that help, Victor? Absolutely. Our next question comes from Fredrik Lisle from Danske Bank. Your line is now open. Thank you very much. Hello, Tom and Joakim. Nice to be on the call. Many questions have been answered, but I thought that maybe you could elaborate a little bit on the traction you have on the business customer side, Connected Consumers in relation to your OpEx, I mean, how do you how do they correlate? How much do you need to sort of Add on employees in France, for example, from the one you had the last fall in order to build that base in France specifically and how do you wash How is the plan for that going forward? Thank you. So I mean, that's if I may start and then Joakim, you can as well, so the way we think about I mean, that's really a question around scalability of commercial teams, right? So the way we think about that is we sort of go in 3 phases, right? So initially, when we identify a new geography, and that's typically done with data from our platform because we get requests for respondents in, I don't know, let's take the example of South Africa. We say, okay, we're now at a point where it makes sense to have some folks on the ground. Typically what we do is we start with 1 or 2 people, so very modest, just to kind of effectively to confirm that there is a proper serious demand for on both the demand and supply side in that country. We then keep that at a relatively modest the sort of level of investment for a number of quarters just to make sure that the data is following, we're not taking decisions on blips, then we start to invest and adding more folk. And it's at that point generally that our that the kind of scalability of our model kicks in and we get we start getting very profitable returns from those folks, right, because at the end of the day, for single sales individual sales, a couple of 100,000 versus a couple of 1,000,000, it obviously makes a big difference. And I would say we're definitely investing, as you say, in France, in South Africa, in the Middle East and testing. And conversely, if we throw our mind back to the Americas history, when Nordic bought the business in 2016, that was a doubling down of commercial resources was an objective, and we did. And we're now reaping the benefits of that in the Americas. So we think about that in terms of those three phases, kind of testing, investing and then reaping the results, That helps. Yes, absolutely. And just a follow-up on the Connected Consumers there. How big total sort of panel What day do you need? Or is there a situation where the extra benefit from adding another EUR 10,000,000 It's so low that you won't go there. I'm not saying that EUR 149,000,000 is the endpoint, but how do you think about that? So I don't think about an absolute number. I think about having a supply number that's sufficient for the demand that we have, right? So we're operating in exchange and aggregating supply and demand to the benefits of the other side. And so as our demand grows, so our supply needs to grow. And so the trick in our business model, and it is a bit more art than science, is to grow both supply and demand more or less in tandem. Now we can never get that right. And as I said earlier, right now, we've got very good demand side activities. And so we do we want to and need to and we'll add more on the supply side as a focus now. But there's no magic number to say €10,000,000 is good and the additional €5,000,000 after that is bad. It all depends on what's happening on the demand side at a macro level and then we actually look at it much more granularly than that because it just global demand is irrelevant, right? What we need to look at is by region, by sub segment, etcetera, etcetera. So because that's how we think about it. If we continue to grow very well on the demand side, then we need to continue to grow very well on supply side as well. Perfect. Happy with that. Thank you. Thanks. We have no further questions, so I'll hand it back to you, Tom. Great. So look, thank you, everybody. That's just inside the hour. So really, thank you from all of us at Syncrude for your interest in our company. And we look forward to continuing the dialogue. We're going to be meeting some of you over the next couple of days and in any case in another quarter's time. So thank you for your time this morning.