Earnings Call: Q2 2021

Aug 17, 2021

Thanks, Emily. Good morning, everybody. Pleasure to be here, and thank you all for your time and interest. It's our Q2 presentation, but I suggest we crack straight on with it. So looking at Slide 2, in terms of Presenters from our side, you've got almost the usual suspects now of Joakim and myself. And then in terms agenda, company overview, Q2 highlights, financial update, obviously, summary and then importantly, of course, we'll leave ample time for questions. If we start with the company overview, that's something that I felt was important to just have a very brief recap on a couple of reasons. One is it's only our kind of second quarter out of the gate, as it were, that we aren't relatively new and we are getting to know each other. And secondly, I know there's a number of kind of existing investors on this call, but also some potential new ones as well. And so I thought it'd be helpful just to kind of give a very brief overview of who we are. So looking at Slide 4, you'll have seen the slide if you've been with us for a while. So we think of ourselves as a global software leader in connected consumer insights. And really, what we do is we are digitizing what is still largely an analog industry and transforming and accelerating how companies obtain insights. We've got a very large and growing and pretty loyal customer base. If you look at the bottom left hand side, you see we're now up at 2,900 B2B customers growing nicely not just since 2018, obviously, but also on the last 12 month basis. We'll talk about that a little bit more in a few minutes' time. In terms of underlying market, Really no concerns, right? We're operating in a directly addressable market. You may recall of €3,500,000,000 And while we are growing nicely, we still got plenty, plenty, plenty of runway still to go. We are a B2B software platform. We'll give a very short one page overview on that on the next slide. And we are proud pretty proud of our profitable organic growth. If you look on the right hand side, you can see the blue circles. That is our year on year growth rate, sort of comfortably in the mid to upper 20s, Accelerating somewhat more recently, which is really nice to see. And then obviously, you've got, including M and A, a CAGR of 35.35. As you would expect, We do we are in the data space, so we've got a strong focus on data security, privacy, But also diversity and inclusiveness is important to us. Very global, right? So you'll hear that word from us quite frequently. Global, it does matter. And you can see our net sales by region are sort of 45%, 45%, more or less between EMEA and the Americas with APAC nudging 10%. So really very much a global business. Headquartered, obviously, in the Nordics, in Stockholm, but a strong U. S. And presence elsewhere. So that's really us. If we move to the slide. This is an overview of our value proposition and platform. We really are a global insight platform, right? You've got us in the middle. You've got our B2B customers on the left hand side and then our 155,000,000 now Double opted in respondents on the right hand side. And really, I mean, what we do is we aggregate Supply and demand, each to the benefit of the other, right? So that's really a key point for us. And in the platform space, We really believe that scale does matter, right? It matters in 2 dimensions. It matters in having a global presence, and you can see again A brief overview or a brief some key numbers and metrics around our global presence on the in the circles on the bottom, but also in terms of growth, right? So because as I've said in the past, it is the number one in the platforms based to whom the disproportionate value accretes. And while we're not the number one at this point in time, we've got us and some others, Our intention is to be the dominant platform in our space in the not too foreseeable future. So that's really kind of us in terms of overview. And if we now move to the next slide, We can just see a recap of our strategy. And we're going to be talking about each of these circles with the exception of the software platform and features and benefits. So we're going to be talking about the established companies. We're going to be talking about the tech enabled. Obviously, new customers is a big theme for us, And we've done pretty well on that and of course also M and A. So that's us in terms of overview. If we now just sort of start with Slide 8. In terms of Q2, and really the headline there is strong organic growth and progress on M and A. I mean that, I would say, is the headline, at least from our perspective. As you can see, we've got net sales in Q2 increased by 45% On a reported basis and if we actually adjust that to currencies, it actually nudges up to 48%, which is which we think is pretty good. EBITDA, €5,200,000 with a margin of 16.3, but there it's really important the 3rd bullet, I think. So if we adjust that for FX, we actually can demonstrate a margin of 19.3% in this quarter just gone, which we think is pretty good. And again, it's sort of reinforcement and demonstration of the scalability of our business model. In terms of growth, it's very broad based. I mean, it's broad based in terms of geography. We'll talk about that. It's broad based in terms of customer segments that we've talked about, the tech enabled and the more established. And then in terms of the kind of The activities or events during the quarter, we obviously closed the acquisition of Catfish, and we'll have a slide on that a little bit later on. Let's dive straight into the next slide and look in more detail on Slide 9 about our sales. So really, The theme is the highlights, if you like, are similar to what we talked about last time, which is the tech enabled companies and the Americas in terms of segment and geography, respectively. But if we start on the left hand side, which is by customer segment, here really, The picture is much as we would expect. So overall, very good growth in both segments. What we do see is faster growth in the sort of in the tech enabled our tech enabled customers as we would expect. But equally, the established segment is still very substantial important for us, and we have many valued customers in there, of course. But The relative ratio between those two is really starting to narrow now. And again, this is very much what we would expect to see. If we flip over to the right hand side, you can see the next sales by region. And again, it's kind of reinforcing the picture of our broad based growth. And what we have said actually in the past Is that the APAC is perhaps our smallest but fastest growing region. And what you've seen here actually is that the Americas On a CAGR basis, it has now outgrown. And really, I think that's a function of a couple of things. First of all, The investments that we've made historically into the Americas, as I've said in the past, are really starting to yield fruit. And secondly, I mean, the Americas is really where the many of the tech enabled customers are either headquartered, founded or spending considerable sales investment. So really, it's kind of a double whammy, if you like, in terms of positive benefit that we're seeing in terms of real acceleration, continued acceleration, I would say, in the Americas. So if we move to the next slide and look at the regional development now, not on a sort of multiyear CAGR basis, but just snapshot of Q2. You can see here Americas 41% up, very nice, very strong. And as I said, really, it's a function of Both new logos that we're managing to secure and the tech enabled sector, which is growing very nicely indeed there. EMEA, really positive. They're at 52, but that is with Gatfish. And Gatfish It's obviously predominantly a EMEA business. But nevertheless, even at 43%, if we exclude Catfish, very nice performance from EMEA. And it really is across all of the subregions, which is very encouraging, again. And I would say both in DACH and the UK Plus, Middle East and Africa, we still got we still see many, many opportunities for continued growth into the future. And then finally, of course, APAC, 34%, very good indeed. And as we've talked in the past, for us, APAC really is Australia and Japan, And we're seeing continued good traction there. And in particular, the markets that we're in, in APAC historically have been Like face to face market research methodology. And obviously, with COVID, that's kind of Kind of stopped completely, starting a little bit to reoccur now. But nevertheless, the fundamental trend there in terms of Offline to online is very much in our favor. If we move to the next slide, just some important for us at least, important KPIs. You can see on the left hand side there increase in B2B customers, almost 500, 400 something, which is very nice. You may recall that our internal target is to increase B2B customers by 500 during the course of 2021. So we're getting very close to that. But of course, it's also fair to say But about half of those were effectively acquired from Elvira Catfish. But nevertheless, really good progress on B2B customers. And if I had to pick a region, again, the Americas and within the Americas, it's the tech enabled segment that has proved to be a very fertile hunting ground for our sales teams. Moving to the middle section, Connected Consumers, Very good uptick on that, a function of both the Gatfish acquisition, 500 ks New respondents available to us, obviously, in the darker region predominantly, but also just kind of working with existing supply partners, to increase the supply we get from them and also recruiting new supply partners as well. So really kind of a 3 pronged strategy there. And then finally, the fleet of service, as you would expect, very nice uptick when we've got The Q2 LTM of $93,000,000 there, which is absolutely trending in the right direction. Organic growth, Enterprise customers processing many more of their own complete through our platform. And then, of course, Acquisition of P2, we haven't listed gas this year because that's not really much of an impact. It was 1 quarter 1 month, sorry, of the quarter where their numbers are in our consolidation. So really, in terms of KPIs, Absolutely all moving in the right direction in our view. And then finally for me, just the M and A strategy on Page 12. And this is really a kind of an overview of Gap. And really, Gapfish is a very well Spexed and one of the largest providers of panels in the German speaking world, so DACH, founded not that many years ago, 9 years ago, 40 employees, As I said, about 250 odd 300 customers and a very nice number of high quality panelists. So were looking at revenues of about $8,000,000 in the year to end of March, with a little bit more than 50 And EBITDA and not gross profit, excuse me, and then EBITDA 1.3%. So really a very nice business. Very pleased that we've partnered up with them, and the integration is well underway and going well. So transaction details, you can read there on the right hand side. We've published them obviously as part of the announcement. So no surprises there, I hope. But then importantly, why Gatfish? And really there, I would say, we're kind of pointing back to the strategic rationale that we've spoken about in the past in terms of identifying the right targets for us, which is number 1, we use our platform data unmet demand, And we definitely have unmet demand in the DACH, particularly Germany, but more broadly in the DACH region. They are Catfish are a very respected panel company, right? So they are requested by name from quite a few customers. And so they definitely have a high quality respondent pool. As you know and as I've said in the past, Germany is a strategic market for us, partly because it's the 3rd largest market research country in the world, so it's size. But secondly, it's because for historical reasons, we are our market Share there is underrepresented. It's something that we've identified a couple of years back and started to invest, and we'll continue to do so both on the demand side with beefing up our sales teams, but also on the supply side, an example of which is this Gatfish partnership that we've just done. And then finally, of course, Talent and Tech, their colleagues in Berlin, as we are also headquartered in Berlin, very good, as you'd expect, from from a kind of entrepreneurial relatively small company. We're very pleased to welcome the colleagues and are in the process of kind of working out how best to integrate and join forces. So for us, a really nice fit And I'm very pleased to have been able to close on that during Q2. So that's it from me in terms of I'd now like to pass it over to Joakim for the financial update. Perfect. Thank you, Tom. So I will now take you through a couple of slides with the financial highlights of the Q2 of this year. So on Page 14, If we start from the left and our net sales development, and as you heard Tom say earlier, we reported a 45% growth year on year, which took us from the SEK 21,800,000 in Q2 last year to SEK 31,700,000 in net sales this quarter. If we exclude the contribution from Gatfish and we disregard from the currency effects, we had an organic growth of 48%. Our gross profit grew from CHF 11,100,000 to CHF 16,500,000 or by 48% as a result of the strong revenue growth. And as you can see on this slide, the gross margin increased slightly from 51% last year The 51.9 percent on the mix effects related to our customers, products and supply partners, which we have spoken about before, But also, obviously, due to the positive contribution from Gatfish with 1 month contribution this quarter. And then thirdly, and to your right on this slide, you have the development of our profitability. Our adjusted EBITDA grew by 39%, So from SEK 3,700,000 to SEK 5,200,000 and the margin was 16.3%, which is a small decline from last year. But this decline is in it's entirely driven by FX effects and the revaluation of the working capital balance sheet items. So we had a loss of EUR 1,000,000 included in the operating expenses for the Q2. So If we would have taken that out, the adjusted EBITDA margin would have been 19.3%, And it's great to see further underlying improvements in the EBITDA margin this quarter, too. If I move to the next page, we will look a bit deeper into the P and L statement, And you will find that we had 2 items affecting comparability that we have adjusted for, And we have highlighted that with the green green the red box, sorry, on the right hand side. So we had our 2nd loan forgiveness relating to the U. S. Paycheck Protection Program. And we also adjusted for the transaction costs incurred in connection with the Catfish acquisition. So in total, those items amounted to EUR 574,000 and explain why the reported EBITDA is higher than the adjusted EBITDA. Our OpEx efficiency or scalability continued to improve. And on a rolling 12 month basis, Our adjusted total net OpEx to net sales amounted to 34.2%. On the bottom right, you can see the rolling 12 month adjusted EBITDA margin. And even if FX Has created some volatility the last two quarters. It's comforting to see the trend towards our financial target of 20% in the medium term. Next page, please. So let's turn over to the balance sheet highlights. As presented earlier by Tom, we concluded on our first acquisition as a public company this quarter, And the consequence on our balance sheet are primarily that we, on a preliminary basis, have added approximately EUR 20,000,000 of goodwill, SEK 11,500,000 of intangible assets and thirdly, that our cash position has come down by SEK 17,700,000 from the last As you can see on the bottom of the page, we though still have a very strong balance sheet with a net cash position of EUR 44,300,000 at the end of the quarter. Next page, clean and our cash flow highlights. So on this page, I would like to make 3 short comments. So firstly, total operating cash flow in the quarter was EUR 3,100,000 Secondly, we had a negative cash flow of EUR 19,800,000 from investing activities, which obviously were driven by the acquisition of CapFish that I mentioned in the previous slide. And then thirdly, you can also see in this slide that our total cash position was SEK 51,700,000 at the end of the quarter. And then finally, For me, on the next slide, we have our financial targets. And just to repeat them, on the top, we have the sales growth target. We are aiming to maintain an annual organic sales growth of at least 20%. For the first half of the year, we are clearly in line with this target. And even if the comparables for the second half of the year are more challenging, We feel very comfortable achieving these targets for the full year as well. Secondly, in the middle, we have the profitability target of achieving at least 20% EBITDA margin in the medium term. And as you can see from the previous slide. And we feel very comfortable also with this target and based on the great momentum during the first half of the year with good underlying improvements. And then thirdly, on this slide, our dividend policy. We are not intending to pay any dividends in the short term, but are looking to reinvest any available funds into our business, both through organic initiatives but also through acquisition. And that concludes the financial section. So back to you, Tom, for the summary. Great. Thanks, Joakim. So if you look at the Page 19 summary slide, I mean, overall, we feel we've had a very good H1, right? So Now why is that? Why do we think that is at least? I think we're operating in a very large market, Actual shift, we haven't talked too much about the digitization, but you'll remember the kind of disproportionate growth from our enabled customers and partners. I mean, really, there is a very substantial and structural shift happening in our industry, and it's It's happening now. It's been happening for a while. We think it will continue to occur, and therefore, it's going to benefit digital players like ourselves. We think we're very well positioned at the center of the value chain. You saw the graphic at the beginning in terms of our platform, Aggregating supply and demand, each to the benefit of the other, we think that's a really, really good place to be and the right place to wise on these market dynamics. We've got a very scalable software platform as demonstrated in our financials. And of course, as the underlying customer base is both growing and loyal. We think we've got a very strong track record of organic sales growth and the margin expansion that comes with that. And then most importantly, and this is really looking a little bit to H2, we think we're very well positioned Continue to think we're very well positioned to harvest these multiple growth levers, be they organic or inorganic. And as a result of which, I am very optimistic and confident about H2 as well. So with that, I'm going to pause and Emily pass it back to you to moderate the questions, please. Thank you, Tom. Our first question today comes from Prejag Svynovich from Carnegie. Your line is now open. Thank you very much, operator. Good morning all. Very encouraging numbers today. So my first question is on the growth in the quarter. It's obviously outstanding. And given your H1 performance now, you'll clearly exceed your financial targets for the year. I'm trying to think of H2 momentum there. Comps are getting tougher. You say something on the demand situation now entering H2 compared to the first half? Well, hey, nice to chat again. So I would say 2 things. I would say our fundamental Business momentum and trajectory is as I look into the future is very good indeed as it is at the moment. But as you said, to use your words, the comps are getting, I think, tougher was the word you used. So really, those are the 2 things that are occurring. Very good continued solid, very positive momentum, but The comps are getting tougher. The other thing I would say, what's unusual and has been for about a year is The seasonality predictions are more difficult than they have been in previous years because of COVID, right? So we had in the past, we had very Clear seasonality between quarters driven by festivities and shopping events, large and holidays largely. But that has become a little bit more difficult to predict now with the COVID situation and different regions coming out of or in some cases, unfortunately, going back into COVID at different times. Does that help? That's very clear, Tom. Thank you. And another question also on the growth and where it comes from. It seems tech enabled is boosting growth particularly. And it sounds based on your commentary that it's mostly existing customers deploying SYNTH more, so basically Sure. Of wallet gains. And if yes, can you talk about which customers do you see this demand in particularly? And also how far You think you've penetrated, call it, your main customer accounts here. So if I may, just A correction, please. The tech enabled growth is both from new customers where we are getting a lot of traction with new especially tech enabled customers in the U. S. I mentioned that on one of the regional slides and with Share of Wallet. So it's both actually. So it's a combination of new customers in the tech enabled and with existing ones. So it's not just share of wallet gains. And to me, that's It's a really encouraging trend because it says that we're not just attractive to people who are with us, but also to people who are not yet on the platform. And then in terms of runway, I mean, the it's a similar answer to what I said in terms of in the preamble, dollars 3,500,000,000 billion. The tech enabled section of that is the smallest but the fastest growing. But even with our €100 plus 1,000,000 turnover, we've got a ton of runway still to go after. Okay. Thanks for that clarification. And one final just on Gatfish. The way I've understood it is you have a lot of demand in that region. You haven't really had respondents to fill this gap and then Gatfish now solves this. And based on this, can you see anything on synergy effects you expect both on the top line and further down the P and L? So just to clarify what we mean by synergies. I don't expect there to be cost synergies. That's not why we did the deal. But I do expect there to be demand side synergies. So we've already had when we announced the deal and told our existing customs elsewhere. Many of them said in the dark region, hey, we want access to Gatfish through your platform. And so that's one of the demand side synergies that we're very excited about and it was one of the reasons that we want to do the deal. So we're working to enable that. And then the other part of it is existing catfish customers. One of them is Reebay, the massive German Supermarket and Hypermarket Chain saying, Oh, great. Now I've been buying catfish, but I want to kind of do research in some other countries. Can we have access simply. So it's going to work both ways, particularly on the demand side. So I think that's kind of demand side synergies, but I wouldn't expect any cost side synergies really because it's That's not why we did the deal and there's many more benefits to be gained by making sure we optimize demand side synergies, if that makes sense. Okay. Thank you very much guys. Great. Thanks. Our next question today comes from Daniel Thorson from ABG. Daniel, please go ahead. Yes, hi guys. Thank you very much. Firstly, clearly, the 97% return in client figure you report is very strong. But can you say something on the churn and upselling in your customer groups. What levels are you currently seeing right now? And ultimately, the net retention that leads to just to get a feeling. Joakim, do you want to kick off on that? Yes. The way we described it, the way we discussed this is kind of around those numbers that we have put into the report as well. I think we are seeing Kind of the same pattern in both the customer segments. So I mean, under well, key takeaway is very high loyalty and very high They stay very long with us as well, which is indicated by the number of years their customers have. I think that is kind of the key numbers that we talk about there. Yes, the churn remains low or Yes, the churn does remain low. I mean, we define it as a customer who has made at least one purchase per quarter, right? So that's kind of our measure of retention. And as Joachim said, the data is not Different between the two segments that we talk about. Okay. That's clear. Second question on APAC. The growth in APAC is still quite small for you right now. But is that primarily growing with existing and new clients in APAC or also by growing with your Americas and EMEA clients into the APAC region. So the way we report revenue is by invoicing point. So if an American client buys APAC supply, that is counted as American revenue. So the numbers you see here is Purely APAC based clients. Okay. That's very clear. And the question for Joakim then. Cash flow, I mean, you explained why you have a negative working capital here for the first half of twenty twenty one versus the release in 2020. But if you adjust for the positive for the negative effects for the COVID-nineteen related loans, is this a normal pattern that you see right now? Or any movements that we should be aware of in this negative figure. Yes. I'd say that's highlighted on that slide. I'd say that in June, We've built up quite a lot of AR because we had a super strong amount of invoicing. So that kind of added negativity to this. And as you said, the USPP loan as well added negativity to the net working capital. I think that you have seen We are seeing a trend whereby AR is building up as we grow. And we are Probably and we have had quite a few IPO related changes to working capital in this year. I think that we are moving into kind of more normal situation on working capital, but I think this should improve going forward. Okay, excellent. Final question related to gap fish and acquisitions. How many more potentially potential gap fish Companies are there out there in other regions. Is it hard to find those particularly well fitted targets? Or are there lots of them? No, I think there's loads. As we've said in the past, the supply landscape is typically very is to a large extent very, very fragmented. And so that provides for us a very good hunting ground, I would see. But I mean, as you know, right, so Acquisition is not just about fitting the right fitting the criteria. It's also about the human side and doing the deal and pricing expectations, everything else. So I think we will be as I said in the past, I think we want to do a small number, a small handful every year. So I think we feel confident we'll be able to deliver that. We're not going to become a panel company, right? We're not going to do dozens and dozens of them, even if they were. We're going to pick the right ones That makes sense for us, both strategically and financially. So there's plenty to go after. Excellent. Thank you very much. Thanks, Daniel. Our next question comes from Victor Hogberg from Danske Bank. Victor, please go ahead. Hi, good morning. So just digging into your comments on H2 and the more challenging comps, You could add a bit more color on it. You say you're comfortable with delivering in line with the targets, but the targets are Quite wide reaching with growth implied at above 20% growth. So I assume that you're not implying that you're going to come in with a full year Growth close to 20%. You've been comfortable about it now in H1, but could you help us Put some more color on to what to expect, what kind of levels are reasonable in H2, especially given that SurveyMonkey and Qualtrics have guided for full year growth, which is not really implying a slowdown in H2. If you could help us with the specific levels or more specifically with the levels, it would be great. Well, I mean, We our Board has decided on annual guidance, right? So but I would say fundamental or underlying business Momentum continues to be very positive, and I see no reason why that would slow down at all in H2. What is changing is, yes, is the comps. Okay. Got it. So could you help us a bit on the gross margin? It ticked up Close to percentage points over last year. The drivers for that, as outsiders, a Very limited insight into the drivers into a given quarter. So if you could help us with understanding the drivers and what to expect for for the coming periods as well. Yes. I mean, it's mostly revenue line mix, right? Because as you remember, right, so The different revenue types have very different gross margin profiles. So we've got the open exchange at Crudely 50%. We've got Private marketplace at effectively 100% and then the license fees that obviously has to be very close to 100%. So a lot of it is driven by on our revenue mix. And as I think we've said in the past, we do expect to see plus or minus 1 or maybe even 2% points swings during or between quarters for that reason. But beyond that, Joachim, is there anything else that we can point Victor to? Yes. Well, it's some kind of organic and acquired. So Gapfish is operating on a higher gross margin. So for this quarter, that added 0.25 percentage points to the gross margin. So the kind of underlying organic gross margin was rather 51.6 That's good point. The M and A pieces, yes, that's a good point. Okay. And last question here. If you could help us a bit more into the drivers for the organic growth, 48% B2B customers, if we adjust for the some 300 maybe added from CapFish, seems like a Single digit growth in number of B2B customers year over year, but the spend per B2B customer was up some 20%. So A bit more comments on what to expect in the relations of these 2 going forward as well. I understand it's broad based, but Any comments yourself, please? Yes. So what I would say is the I would not attribute too much revenue growth in quarter to any new customers that we've secured. The reason being that typically new customers join us And then give us some sort of test money, if you like, or test projects. And generally speaking, they're happy and then they increase their spend over the next 3 or 4 quarters until they kind of get to kind of a much more decent level. So I think it's hard to do a direct correlation between new customers and in quarter growth. But What I find really encouraging is the I mean, the new customers are basically the foundation one of the foundations of future growth, right? So That's the bit that I'm particularly pleased by that we've got in H1, partly through M and A and partly through our own sales team efforts, we've got almost 500 new customers, which are going to stand us in very good stead in the quarters to come. And finally, on that one, Would you say you might have said it, but I might have missed it, that you're on track of reaching the 500 added customers underlying organically year over year for full year 2020. Yes, definitely. Yes, definitely. Okay. Thanks very much. Thanks, Victor. Our next question comes from Eric Lintong from Nordea. Eric, please proceed. Hi, Tom. Hi, Joakim. So just following up on a question on M and A here. I mean, Having done the Gatfish acquisition, how do you see the current M and A outlook? And should we sort of expect more M and A now already in the short to medium term. And also, have you seen any changes in the competition for targets? Thank you. Yes. So hi, Eric. So what I would say is on the competition for Target, what I would say is that Our valuation multiples that are now public have, in some cases, increased expectations among the people we're talking to, right, because there aren't that many public companies in our space. And therefore, kind of people latch on to the multiples that are out there. So in some ways, we've become our own competitor in a sense, right, on certainly on pricing multiples. But with discussion and dialogue and a lot of these businesses, as you know, are founder owned and led. And for them, oftentimes, it's not just money. It's all about it's also about finding a good home, both for themselves and the teams and buying into the strategic vision and the direction and all that really important stuff as well. So it's not always about money. So I think that's good. In terms of other people who are in these processes, it's the usual suspect. Nobody knew that dramatically knew that we've come across, not in the current kind of discussions that we are having. The first part of your question was about kind of should we expect more in the short to medium term. I mean, the honest answer is I don't know about short term because there's a lot of variables that go into signing a deal. In the medium term, I would say yes, Absolutely, because it is part of our strategy. We do have a good pipeline. We do have some fairly advanced discussions. But again, it's hard to predict whether that will Probably not necessarily land in the short, short term, but absolutely in the medium term. Does that help? Yes, that's very helpful. And just I mean, you have talked extensively about this already, but Is it possible to say anything about the start of Q3 here? And I mean, is it fair to assume an organic growth Below 20% for H2, is that what we should interpret it as? My opinion, no. I wouldn't assume below 20%. No, definitely not. Absolutely not. Fundamental momentum is really good. And but it is the comps, right, that are getting a little bit more challenging, I think, was the word that Brivo used. But fundamental business momentum continues to be very strong. Perfect. And a final a bit technical I mean the revaluation of €1,000,000 the FX impact on revaluing balance sheet items, is there any reason for why this is Not adjusted for in adjusted EBITDA and do you expect this to impact coming quarters as well in any way? Thank you. Joakim? Yes. So whether to include it or not in that adjustment, That's obviously a question that is people and companies deal with that in different ways. We took the decision to make it Clear that the adjusted EBITA for us only well, only takes into consideration nonrecurring item or item affecting comparability, which again this quarter was on the USPP loan and the transaction cost. So that and but we wanted to To make clear to you that there has been quite a big effect in our P and L this quarter. If it's going to happen, yes, I mean, FX goes up and down. So there is a revaluation each month and each quarter. Now as I said, Q1 and Q2, that amount has been quite material. And again, that's why we wanted to highlight it. But it depends really on FX movement in the future. It's difficult to predict. Perfect. Thank you. Thanks, Eric. Thank you. We currently have no further questions registered. So I'll now hand back To Tom for any closing comments. Good. Thanks, Emily. So look, thank you all for your time and interest and questions. We do feel good about H1. We feel also good about what's coming and what we can do in H2. So look forward to speaking with you all again in due course. Many thanks indeed. Bye bye.