All right. So thank you for joining today. I'm Keven Marier. I'm the CEO of Irisity, and I'm going to be presenting today the Irisity Management Presentation. This is a presentation that is connected to the ongoing Rights Issue. And what we hope to accomplish today is to provide an overview of the company, the market, the business segments that we are focusing on, the strategy towards profitability and growth, our ownership structure, financial key metrics, what we're investing for in the future, and the transaction summary. If you have questions today during the presentation, don't hesitate. Just go ahead and ask the question either in chat or verbally. You can, of course, use the raise your hand if you'd like to do that also, but I'll take questions as we go through the presentation. This should plan for around 45 minutes.
Yeah, and then we leave some time here for questions as we go. So Irisity, in short, many of you have been investors for quite some time, but it is good to just recap. We are the largest independent v ideo analytics supplier with a global reach, aiming to be number one outside of China for software sales within the security and safety AI market. Based here in Gothenburg, spun out of Chalmers in 2006 out of the Innovation Startup Fund. We've been listed on the NASDAQ since 2013, so for 11 years. And over the past 18 years, Irisity has grown organically and through acquisitions, pre-acquisitions, Visionists, Agent VI, and Ultinous. And we provide generative AI video solutions, products, and services which help our customers improve their security and safety monitoring operations. We're 84 employees with dozens of patents and a growing business.
We like to help our clients see what matters, where it matters, and when it matters. Some quick facts. So organizationally, as we discussed, 2017 is when we acquired Visionists, and 2022 is when we acquired HMVI. And then this year, we acquired Ultinous. Three by the numbers, three development centers: Tel Aviv, Budapest, and Gothenburg. We have 84 full-time employees, SEK 117 million in revenues in 2023, SEK 4.4 million in recurring, and we expect that to be growing in 2025. And we are operated in more than 250 monitoring centers around the world. We have sales teams located in all major regions and are looking to grow those geographically. Our vision is to—sorry about that. Our vision is to provide all monitoring operations with AI-based video management and event detection. And what we aim to do is to shorten the human-supervised response. So in short, AI speeds things up.
And what we speed up is the connection between what the camera sees and how a user responds. And we do that through adding our AI analytic technologies. We can add those to any camera. We run that on core infrastructure, either On-Prem or the cloud. And then we integrate that into the customer's environment and present that to the user. And to enable this, we see that generative AI software that we've built will help, together with our technology partners, accelerate the adoption of AI in these use cases. From a market overview standpoint, the security and safety market is a growing market. Global security surveillance sales have been valued at an estimated $54 Billion, with it growing around 9.2%. Analytics is a small part of that market, but is growing one of the fastest inside the product and service segments.
Key trends, hybrid solutions, which mean they're both on-premise and meaning on the customer site as well as in the Cloud, are one of the fastest areas of growth. You can also see that systems, many of the larger customer sites, do still prefer to have their solutions for security and safety on their premises. But Cloud solutions are reducing the friction and the time to value, and that is becoming a compelling argument to move some of their operations for security and safety into Cloud-based environments. We are positioned in both the hybrid, On-Prem, and Cloud environment. We have three main segments that we focus our offering in. Iris+ Enterprise is our Cloud-first solution, which is designed to leverage AI for very large-scale deployments. An example of that we announced last week, a very large airport project which we won in Q3, over 2,000 cameras.
This would be running an Iris+ Enterprise. Iris+ Professional is a tailor-made all-in-one box that addresses all the customer's needs. It's typically a part of the infrastructure that's installed, and it's tailored for the mid-market. And our Iris+ Central Monitoring offers a seamless integration for alarm receiving centers. And we have two different products in there that work with both the customer's remote guarding needs as well as their camera filtering environments for most events. Our core market for software analytics is around both the edge-based solutions, the recording server software, Cloud-based, and hybrid, all of which are predicted to grow by Omdia, the market analyst. And we are working in all these markets outside of China. We see that market share is a key indication of our desirability from our customers. And we aim to continue to improve our market share.
When I joined the company, this was something that I saw as very important as a way to, as an example, in the Americas, to become number one in the Americas in market share, and we see a good opportunity to overtake the other players that are in there as we continue to grow our overall combined group solution. When we look at the different business segments that we are operating within, we have four different distinct segments that we're working in, which are represented in this segmentation model on the left, and then I'm giving an estimate of what our percentage of revenues are from each of them, and on the right, this gives you an idea of where our technology is used and by the types of environments that we're working within.
As a part of our Agent VI acquisition, we acquired the company, and they were very strong in the government enterprise security operations centers at the very top. These are very big projects, often very slow-moving, tied to big rollout schedules. It's a very large part of our revenue today. And this is an example of one of our customers. This is a Michoacán in Mexico, which is where limes come from, agriculture. This is the 911 Center there. And we are running around 10% of their cameras; we're running with AI from Irisity. And we look for different types of traffic and vehicle types that will help support the operators in citizen safety use cases. We have a Security as a Service, which was our original product that was spun out of Chalmers in 2006. This is often referred to as our School Guard system.
It's around 20% of our revenue. It's in our domestic Sweden business primarily. And it sits within a mid-market and the high-end market as we manage the entire end-to-end for the customer. Our largest customer here is Gothenburg, where we've been operating with them for more than a decade. The mid-market is a small percentage of our market. It's an area where we've been focusing on growing. And this is a key part of our strategy to achieve profitability and future growth. This part of the market, there was an offering we used to have there in the Agent VI world. And we have acquired Ultinous to improve our offering here. The system you would see that it's operating is professional security operations. So that's SAAS in Saudi Arabia. It's a smaller operation for a specific group of customers.
And then where we see a very big adoption for AI is in the remote guarding business at the bottom of the stack. It's around 20% of our business. This is a central monitoring operation in Denmark. And this is, as you can see, a different type of operating environment taking all types of different alarms and systems into it. So this is how we see the market, and this is how we've distributed our revenue. One of our strengths is that we have a very diversified portfolio of segments, and we are capturing and growing revenue in all of them. When we look at the customer and customer segments which we're serving, I've highlighted in blue the ones that we are focused on today. Airports, city surveillance, and education and government are our biggest areas.
We are having success in landing our first patient monitoring solution in Sweden just in Q3. Small beginning, but looking forward to good growth there. And ports and railways have been very strong for us over the years, as well as traffic monitoring and utility. So we have a diverse offering. There are areas we are not yet focused, and we are working on ways to address those with our partners and look to continue to grow our overall customer segment. Our system, why companies adopt it for their security operation centers, is, as I said before, AI makes things go faster, and we can shorten the time for the human response.
But we also improve the overall use of the infrastructure that provides security and safety by reducing the amount of video, by being able to save the typical time, around 67% for a response, which allows for significant more coverage for assets by the same manpower. And we reduce false events for our users by more than 90%. Overall, it's a big impact on operation centers. Our competitive advantages, we are not a startup. We're a 20-year-old company. And our competitive advantages, we have customer journeys that are five to 10 years and an install base of customers, which makes up around 50% of our year-on-year revenue. So strong order book and a stickiness in our operations. This gives you an example of the different customer types that we have.
In eldercare and healthcare, where we're anonymizing patient monitoring and doing behavioral detection for healthcare providers, rail and transportation, providing passenger safety. We've had a nice case study with the Stockholm Metro around preventing suicides. We have critical infrastructure. This is a very big opportunity where we see the traditional perimeter protection and intrusion being very good use cases, but also being able to do outdoor fire and smoke detection, where you typically don't have sensors for that. We can use our AI to be able to detect that. There's a lot of interesting use cases there. In safe and smart cities, citizen safety and vehicle tracking are big areas, but also being able to use the generative AI solution to be able to search for basically any type of person or object within the environment.
We did an example last night with a customer where we were showing how, without training the system, we could actually monitor behavior in retail environments where people would basically be stealing cash out of the till. So a lot of really exciting opportunities with generative AI. Government, enhancing public safety. This is an area where we see a real great opportunity to improve the response to different types of operations. And lastly, in school, improving school safety is a key part that we've been focused on within Sweden. And we like to refer to the fact that using AI to speed things up allows us to work at the TikTok speed, where things are moving through our schools at a very, very fast rate with social media, and our systems can help respond to those types of new threats.
When we look at our system, the system is fairly simple when you look at the fact that we have an advanced AI capability to configure to any cameras. We monitor for real-time events. We can use a natural language query to basically type in your search: "I'm looking for a person stealing cash," and we can then visualize the data for the customers and trend those things over time. Our company is in a great position to capture this growing market opportunity. We have a strong and committed leadership, proven track record, and skin in the game. As an example, myself being a large shareholder and bringing a leadership style that wants our leadership team to be working very closely and in the same boat as our shareholders. Our large global partner network is something that we are continuing to improve and scale.
It gives us an ability to address many new existing customers. We have a very competitive product and service portfolio, one that has been invested in over time, and we are on the leading edge of these capabilities. As I mentioned before, a diversified business model with many value streams and revenue models that allows us to grow in ways that fit the customer's requirements, and rapid prototyping and site solution design is very important to shorten our quote-to-cash process. As we look at the company strategy for profitability, when I joined the company, I worked with the board to identify five key actions that we needed to put in place as fast as possible, and I'm proud to say that after 18 months from the time I started, we've implemented all five of these.
These were strategic investments that would allow us to drive our and shape our business to commercially scaling and to do that in a profitable and cash flow positive way. When we sequenced these, we sequenced them in the time that it would take for us to get the impacts we're looking for. So we started immediately with the commercial focus. With the long sales cycles on the very high end of the market, we needed to get the pipeline growing. We announced in Q3 that we've been seeing a very solid and growing pipeline of sales activities, which makes us very confident for 2025. In the first year, we were able to make an immediate impact, getting a 34% year-on-year growth. It was a smaller comparable.
But the focus in the first step was that one plus one, meaning Agent VI and Irisity together, should equal at least two in revenue. And that was a key point for me to focus on that to get us up to the 115-120 range, which should have been that one plus one equals two. The second step was that we needed to continue to accelerate our business in segments, and the professional and basic segment in the middle was a key aspect for this. Much faster time to quote-to-cash, smaller transactions, and less risky in delivery, more of a product and infrastructure sale. And this was something that I made a conscious decision that I wouldn't try to go back and build this within our R&D. Instead, I would try to use an acquisition to bring that in.
And we bought Ultinous for a fair value and brought in a new capability and launched Iris+ Pro and had our first paying customer within the first quarter that we launched. And this is a good testament for us to continue to see this grow. Q3, I should say, in the third step in Q1, we announced the streamlining. And this was for us to start to look at how we could improve the service delivery in a more customer-focused way. And we looked at our personnel costs, which is our largest, and saw a trend that we would continue to be increasing our costs in the way of working we were doing, and we needed to turn that around. It has taken three quarters to put this in, but I can already see the results coming.
And we expect in 2025 a substantial savings in our personnel costs compared to 2024. Also improving our customer centricity and speeding up our releases. So it's a very positive thing to the business. Step four was the MRR. This is an important part of the business. It's been a business metric that's been talked about a lot in Irisity's history. And this is an area where we needed to put a conscious focus around growing that. And I'm excited to see that happen in 2025. And we start the year with an order book of more than 66 million SEK and growing. And we expect that to land someplace just below 100 million SEK for 2025. Depending on how Q4 goes, that's our focus there.
The last step was to be able to take advantage of the generative AI solutions that are now dominating the market, creating a substantial amount of new use cases. But the most important thing that generative AI does is it increases the speed at which we can achieve a customer fit at a much lower cost in R&D. Our first example of this was an order for a company called Black Mountain Sand in Texas, where they were looking to increase personnel safety. And we were able to build this solution in weeks, not in quarters. So this was a key focus of ours when I joined for the past 18 months on achieving profitability. And when we look at these steps in detail, these were the team members that we put together to help drive that.
The key aspect of leading a commercially focused organization was to add that into the organization, but also at the board level. We have also looked at taking our operational aspects and commercial functions and merged those together under Raziel. Also that we looked at our pricing and our business models and recalibrated those to achieve a better result. The second point that I talked about was to focus in on the middle segment here. We accelerated the sales of our on-premise professional and basic products. This is an important area because it speeds up the entire quote-to-cash process. We expect this to increase over time and be able to take within our product mix a much higher percentage of the product mix, forecasting this to be in the low 20s% within the next two years.
We streamlined the organization and bringing customer centricity to focus was about taking the R&D organizations and breaking them apart, getting them to focus on individual customer needs, customer pains, and customer gains, and in order to do that, we have created a much more agile and lean and customer-focused set of R&D organizations, and Tel Aviv is focused on our enterprise and Cloud-based solutions. Budapest is focused on our on-prem operations, and Gothenburg is focusing on central monitoring and Security as a Service, and the result has been very positively received by the employees, as well as a speed up in deliveries. Increasing our recurring revenue is an important part, and we've been starting to focus on how can we better communicate what makes up our MRR.
What you'll see us communicating over the coming quarters is a more focus around these three different segments where we have central monitoring and software as a services, software as, I should say, software as a service, where we're growing these particular customers. We have over 28 monitoring operations today. They're growing around 11%. There is a lot of price headwind here, a lot of price competition, but we have a very sticky customer base, and we look to continue to grow that. This will be a key focus. In Sweden, we have our Security as a Service, and this is a business that has not been growing. It's been somewhat hindered by the permitting requirements, and we have started to shift our focus to camera locations that don't require permits.
But also, there's a positive impact that's coming to Sweden, where the permitting process will be simplified, and we expect that to hit in 2025, and we'll start to see growth there. But 68 customers, 595 sites, a very long customer relationship with these customers. And then the area where we expect the biggest growth in 2025 is going to be around increasing our software upgrade plans with our enterprise customers. We've been pushing more for the monthly plans to be a bigger part of the sales. And we expect this to have a great impact on our year-on-year comparables for MRR. And today, this is around making up around 13%-18% of our licensing costs will be allocated towards this area.
Lastly, is really the talking about the generative AI, and I used two different case studies to show this in comparison to what we just did with Black Mountain Sand. It took us around nine months to develop the solution for Stockholm Metro, where we're making an impact in around 400 cameras that are being used to monitor the rail tracks while the trains are there and when they're not there. Sounds like a fairly simple thing to do, but it is an environment where we had to build a customized solution that could notify the operations center of a potential issue. It's not the human on the tracks doesn't hurt themselves. We're just being on the tracks. It's the train that kills the human on the tracks. And so it's a relationship between calculating how much time we have to have a response for the trains.
But if you then take our solution, when I joined, I had met with some of our customers down in Central and South America. Two men on a motorbike was a real challenge with criminal activity in Central and South America. We took us approximately three months to develop this custom class for Vicente López. They launched that, and it made national news in Argentina. It's the first city to deploy such a technology. I'll actually be down there in the next two weeks, receiving an award from Vicente López and the Buenos Aires government around the success we've had with this impact. If we take then what generative AI is doing for us, we can take this now and drop it from months into weeks and start to create new use cases.
This is where we really see an increase in customer fit and a lower R&D cost. Ownership structure. We have a strong set of owners at the Cap Table, at the top 10. This is an area where we see a continued stable environment of our largest shareholders. Stockhorn was brought in as a part of the acquisition with Ultinous. When we look at the last 12 months, and I used the last 12 months in this case consciously because Q4 is the first quarter that we consolidated the financials for Agent VI. When I look at this, our P&L is overly simplified for our business today.
We'll be making some changes in 2025 and making the P&L a little bit more sophisticated so you can start to understand some of the key costs or the key development areas. Something that's been impacting us that has been impacting us over time more and more is the exposure to the U.S. Dollar compared to the SEK Effects Impact. This can hit us both on net revenues as we have more and more revenues coming from the Americas. It also hits us in other operating income and other operating costs where you would see the foreign exchange impacts, as well as a loan that we have made to Agent VI over the years based in dollars. This will be converted into equity in this quarter. We have a stable business.
We've landed the acquisitions, and now it's time for 2025 for us to start realizing the synergies and the gains from the investments that we've made. When we look at the overall organization and the net sales, we have a very good growth. It is inorganic because we have been making acquisitions here, and what we look to continue to do is to continue this journey over the coming five years, and we see that there's a good potential in our pipeline to continue that. When we look at investing in the future, we've made a big investment in HMVI, and it's now time to harvest from that investment.
We see the growth in this area from an enterprise standpoint to be a slower growing growth as we want to focus more on the mid-market with the Ultinous acquisition, as well as to improve our sales in central monitoring to get a better, what we call, a healthier product and sales mix. And we'll start to communicate the sales mix into more details instead of just a single net sales number. Geo expansion has been a key part when I joined was to get the key asset in the Agent VI was that they had a very broad international market. We needed that to be reorganized and a set of new employees to be put in there and get them to start executing on that. And that was a key focus when I joined the company, and we're starting to see the benefits of that.
Central monitoring and alarm filtering is an area where we compete well. We have a good offering. We have over 25,000 cameras being monitored every day from our different 28 monitoring centers, and as I mentioned on the generative AI side, bringing in Ultinous to help expand our capability there. In summary, we have a strong market opportunity. We have an increase in our ability to capture the opportunities, key leadership with extensive industry knowledge and experience. We have a solid and scalable platform, a generative AI-based and good partner go-to-market approach, and improving KPIs. When we look at the overall transaction for the Rights Issue and what we were looking for, so the transaction which we communicated out is with a set of units, seven shares and one warrant at a subscription price of SEK 1.2. The Rights Issue has been covered by 80% from our subscription commitments and guarantees.
We took a bridge loan, SEK 20 million, as the timeline for the Rights Issue was being extended out into the end of the year. And we see that we are in the middle of the subscription period now. Depending on which company you're investing with, those dates may change a little bit, but it is open from the 27th. The use of proceeds will be around market expansion and working capital. And yeah, we look to see you participating in our Rights Issue. Any questions from anybody? I haven't heard anything yet, but that would be the end of the presentation for today. Okay, so I have one question here. The question in the chat was, how come the example of SL Stockholm? We're only used on service on 400 cameras when there are tens of thousands. There are. It's a very good question.
The answer is in the ability to have a response. And not all the cameras, there are people who are able to actually intervene. And so what ends up happening is that the cameras we are covering are typically around platforms where there are personnel that could intervene. And the purpose of that is that when somebody is going to attempt to, let's say, to commit suicide, they often are sitting on the tracks minutes before the trains arrive. And so the opportunity is to identify them and to have an option to be able to intervene to get them off the tracks. And this is a relationship that goes between the central monitoring center and the platform where this has been detected. And then there's a process they go through about saying, "Do we have time to slow the train down?
Do we have to stop the train?" But the key here is to be able to intervene. And so that was a very intentional decision around intervention as the mission, not necessarily detection. But 87% of train delays in Europe are caused by humans on the tracks. And it is an ongoing area. We announced two very large projects in the U.S. in the past year around expanding in this area. And this is becoming a very big problem with protesters are able to basically disrupt mass transit by being on the tracks. And cameras are becoming a way to be able to intervene and manage the impact better. But thank you for that question. Any other questions? All right. Well, we appreciate all of you participating today. If you have any other questions you wanted to take privately, my email information is obviously available in most press releases.
I know some of you have reached out to me in the past, and I appreciate that, and I always take a moment to respond, and in many cases, also schedule phone calls with shareholders. Feedback is really important, and please keep it coming.