Welcome to the 11:30 A.M. I'm the last thing between you and lunch. I know that, and I will be quick. Okay. Today we're going to use forward-looking statements and non-GAAP measures. You've never heard that before. Okay. Who we are and what we do. Okay. We create digital engagement solutions. We connect brands and people in spaces and places they love.
Bottom line is, as you all, all of you walk through public buildings, either indoors or outdoors, and you see screens, TVs. Think of them as TV displays. You see them on the walls. Somewhere, somebody is driving that screen with software and content. That's us. That's what we do. Okay. And probably many of you have seen a screen of ours in the last day or two, and you'll see that. Okay.
On the left here are the verticals that we have some real strength in: retail, restaurants, QSR, convenience stores, automotive, etc. Now, why do customers, why do companies want to put screens out today? Well, on the right is all the objectives, right? For the customers want to change over to digital. I can tell you this: today, nobody walked in an office and said, "Take down that TV and put up a poster."
That didn't happen. I'll tell you what happened somewhere in America today. Somebody walked in, or globally, and said, "Take down the poster and put up a screen." Take it from a poster to digital. It happens every day. Three sources of revenue. We do sell the hardware upfront. Okay. That's a very minor part of our business overall, but we do sell it.
And then we have a raft of services that go with it, right? Ultimately, getting that screen installed up on the wall and operating. And then last but not least, why do we sell the screen and why do we get it up on a wall? Because we attach it to our software and that generates recurring SaaS revenue. That's what we are. We are a recurring SaaS revenue company, and we are all about driving higher annual recurring revenue, or ARR.
That's simply our pitch. Okay. Target market. Well, a lot of folks, retail. How many people here have been in a Best Buy sometime in your life? Okay. Every TV screen and every Best Buy runs on our software. How many people have been in a Verizon store? Got a phone. Yep. Every screen in every Verizon store. Anybody here been in a Macy's?
Every screen in every Macy's. Anybody here stopped by a 7-Eleven? Okay. Every screen in every 7-Eleven. So it gives you the sense of our customers and the verticals that we're in. Examples of our clients and our work. These are all Fortune 1000. You know, and these relationships are long. Our relationship with Verizon is 17 years. Our relationship with Best Buy is 15 years.
Stellantis, they make Chrysler and Dodge and Jeep and Ram and Alfa Romeo and Fiat and Maserati. 22-year relationship. Chanel, 14 years. We do every Chanel store in America, the boutiques, plus the shop- in- shops. So it gives you a sense. We do about 70 or 80 large arenas. I'm sure folks here, somebody's been to a Dallas Cowboys game at some point in time. Our software solutions, we control every screen in the AT&T Stadium, except for the Jumbotron.
I don't do the Jumbotron, but everything else we get credit for. This is QSR C-store Market. Panera Bread, Freddy's, Black Rifle Coffee, Human Bean, Jaggers, McAlister's Deli, 7-Eleven, Speedway, Levi's. These are all customers of ours. Meaningful customers. Levi's, we're doing about 38 sports properties for Levi's, and I got another 30 on deck just for Levi's alone. Chanel. Today there's 32 Chanel boutiques, 147 shop-in-shops. So the Chanel store inside a Neiman Marcus.
7-Eleven. And this gives you a sense of our scale. Every business day in America, today included, I install one to three 7-Elevens every single business day. Doesn't stop. This week I'll do somewhere between 10 and 15. Next week I'll do another 10 to 15. It just happens. We've installed about 4,000 stores. I've only got 11,000 more to go. And that's just in the U.S.
That's before we go to Japan where they have 21,000 stores. That's another story for another day. Every Verizon store. Freddy's, Steakburger. Stellantis, dealerships. We're in 2,700 in the U.S., 451 in Canada. Oh, that's Panera Bread. So every new Panera Bread gets our digital engagement. So it's the drive-through.
The actual physical fixture, the digital screens, the menu board.
They have Panera, by the way, interesting food fact. They have more items on their menu than any other restaurant, and 127 individual SKUs or line items on the Panera menu. That was a challenge. Black Rifle Coffee. Okay. Now, all sounds great. Hey, Rick, we see the business. You certainly have some great sounding customers, right? Because you all recognize the names, so how are we doing? Well, this is the boring part.
Because the first paragraph up there says all-time record, then we go to report our 2024 first quarter results. It's also boring because it says all-time record. Oh, and then we closed on our new credit facility. We had $12 million in debt ballpark that was coming due. We refinanced that. Got a new $24 to 25 million credit facility. I think currently we have about $10 to 12 million outstanding.
I got lots of room. Oh, by the way, we also joined the Russell Microcap Index. Oh, then there was Q2. Again, boring. Record results, record revenue, etc. We think we're doing very well executing the business on a day in, day out basis. It's either four or five quarters of record year-over-year growth, record year-over-year gross margin, record year-over-year profitability.
We announced an expansion into Mexico. We have some customers here in the U.S. who've been asking us, "Please go to Mexico. You guys do a great job for us here in the States. We'd like you in Mexico." We entered into Mexico. You know, that's a one to two-year story. It's not like we're going to jump into Mexico and tomorrow I'm going to have the Best Buy of Mexico. Doesn't work that way.
A couple of years from now, our Mexico investment will pay off. The one word I'd walk away with today is consistent. Consistent, and really, that's really what you want out of a management team. You want a track record of consistent growth, so our organic growth rates in excess of 20% were about double our industry average and have been since 2015. I took over this business in September of 2015. Our SaaS was less than $500,000 a year.
Today, we've told the market this year we thought our SaaS would equal $20 million in revenue. Okay. We own our own content platforms. We've gone effectively from zero CMSs that we owned to four platforms that we own ourselves. We have done two acquisitions. We've proven we understand how to integrate, get them on board, and drive enhanced margins. Why we're winning in the marketplace?
Well, you got some real drivers out in the marketplace today. There's growth drivers in the market, retail transformation. Customers want an improved customer experience. How many folks here have gone through a QSR restaurant drive-through and you got a couple bags of food on your way home to take home for the family, and then you get home and you open the bag and it's the wrong stuff? It's happened to everybody in the room, right?
So the QSR restaurant, they want to fix that customer experience. Our solutions help them fix that problem. Retail network monetization. You know, people are understanding that eyeballs equal value. And if your eyeballs walking through a store or a retail environment, you bring a certain value equation to that retailer and they want to monetize your visit to their store. And last but not least, everybody wants an ROI.
When we switch a customer from digital or from static menu boards, you know, think you walk in a traditional QSR restaurant and you see the four flat menu boards and you move it to digital, the ROI on that investment never exceeds eight months. It's a pretty easy conversation I have with the QSR operator. What other capital investments are you making that has an ROI of eight months? Okay. So that's what's driving this digital engagement today.
So if there's an electronic board, I order more food at the fast food.
Yeah, you'll typically order more food. Potentially, number one, you'll add that frosty add-on. Number two, number three, I'll get you to spend 12 cents more. You upsized your drink from a medium to a large. And that 12 cents I took in cost me less than a penny. The upsize from a medium to a large. Yeah. Yeah. So basket size increases.
Typically, the Coke drink, drinks expand 8%. Okay. Just by going to digital. The picture of the bubbles floating up through the glass seems to do it, right? Oh, where are we globally? This is a firm in Venice. They're out of Europe. They survey the world. They would tell you we're number four globally. Okay. In what we do, we're a leading provider in the stadium and arena market. We have about 80 of the stadiums and arenas.
You know, about a third of NBA, MLB, soccer. We have a small footprint in NFL, two or three stadiums, but so it's a big growth market for us. C-store, theme parks, Six Flags, Cedar Fair just completed a merger. We actually service both of those accounts. And you know, we've been laser focused as a management team on the six-point value creation plan. And again, many folks in the room are familiar. You've seen the story, but we want to grow the revenue.
We continue to talk about growing the revenue on a quarter-over-quarter basis. Every year, we're typically between 20%-40% year-over-year on the prior quarter. Okay. So look for us to continue that. Improve margins. We are improving our margins, our adjusted EBITDA. We expect to exit this year at about 15%. So growing and improving the bottom line. We're growing the ARR.
We told the market we thought we would exit this year with our ARR at $20 million, within striking distance of $20 million, and we appear to be on track for that. We want to manage our leverage ratios, and I'll show you a couple slides on how we've managed the leverage ratio. And then obviously, we look for opportunistic M&A wherever it's appropriate.
This is the recurring revenue as a percentage of total revenue and the growth of it. So we continue to grow this in very important stat. And this is something we're proud of. We took on a lot of debt in 2022 to buy a competitor. And as you see from 2022 to 2024, we've cut that debt in half. I think our net debt today, net debt is in the $10 million range. Is that right, Will? That's our CFO. I'm the pretty face.
He's the brains. Okay. Just to be clear. So. But, and then of course, our Adjusted EBITDA has gone effectively from nothing to $7 to 7.5 million. And we expect that trend to continue. Lots of focus. There's tremendous leverage in this business model. By the way, this industry is only 24 years old. So it's a new industry. And it consists of a whole bunch of mom and pops. There's probably 200 competitors across the United States.
You know, I'm $60 million. 95% of them are all $5 to 10 million. They're small. And so the goal is that we can acquire a couple of those. But it lends itself. We've built the platform. We've got the business ready. And we are looking to ultimately do some M&A. Near-term vision. This hasn't changed.
For those of you who were here a year ago, you heard the same story. Our goal, we expect to scale to a $150 million global digital provider. We expect to do that relatively quickly now that we're approaching 60. And we see that in the next couple of years. Become a go-to acquirer. Leverage the infrastructure to generate significant profitable growth.
The leverage in this industry is spectacular. We expect to expand in the strategic industry verticals. But our real goal is get to a million managed screens. I want to get to where I'm managing a million screens every day across America. Who's got questions?
What's the percentage of recurring revenue today? About one-third growing.
Yeah. It's about 33%. And again, every time the real math is we go do a customer does a $1 million screen buy because they want to go put a bunch of screens across all their locations. What we really care about is a customer goes buys a million screens from us or a $1 million worth of screens. We go install them. That'll leave behind about 8% in recurring revenue. So that'll leave behind about $80,000 a year in high margin, 85% SaaS that will go on for many, many, many years. Okay. Yes.
When you look at M&A, what kind of targets are you looking for? What kind of metrics are you thinking about?
Metrics we're looking for, number one, we want them to be in the existing vertical we're in. Okay, and that's the key because they're running a $10 million business, just to pick a number. And they may be running that at about a 50% gross margin. And they may be netting 5% out of that business. If that comes onto our platform, we believe we scale that to $10 million in revenue becomes $4 million in EBITDA. Tremendous scale. Because I don't need their platform.
I need none of it. I already got it. So that's the goal. The challenge with acquisitions is they all think they're worth more than we are. You know, our market cap today is $46 million, give or take. Our ARR, if I go to just sell our ARR today, I could get six times our ARR. Okay. $20 million times six, $120 million.
I got $10 million worth of debt. I got another $10 million in payables that I got to deal with. Enterprise value net is $100 million. And my stock, my market cap today is $45 million. So a year ago here, our stock was a $1.30. We're up 270% since the last time I was here. Let's hope it's another 270%. So anyway, okay. What else? Who else has got questions? Yes, sir.
Do you consider the newer competitive advantage?
Our two platforms. You know, we bought our CMS, which is CMS, Content Management System, right? It in effect runs the menu boards inside of a restaurant. Everybody else took a general CMS and said, well, let's just kind of tailor it or tinker it for the QSR. We said, uh-uh. We built ours QSR from the ground up. That's all we do is it does food. I've got a CMS for general retail. You know, general retail requires seasons, style, color.
Food CMS doesn't require seasons, style, color. It's caloric content, those kinds of things. So they're purpose-built and they are considered today the two best in the industry. You know, our platforms have gotten acknowledged by a lot of customers as the reason they're switching. And we're reasonable. We're efficient and good at what we do. And in the US, we're certainly top two or three.
So you know, we're big enough to really matter. Yes, sir.
What's bigger to you in this space than what you consider the top?
Certainly, there's a company called Stratacache. They're headquartered in Dayton, Ohio. They're certainly bigger than us. The reason they're bigger than us, they signed McDonald's early, 12 years ago. McDonald's was the first one to go digital. They have since lost the McDonald's business. So their business is busily shrinking.
But they did use that to ride it to global presence. So they've done a good job. I would not consider being bought out by them. But there's other folks. You know, you look at an ad agency in the publishing world. I mean, they've got thousands of CPGs as customers. They want what we do. Every one of their customers is buying what we are selling. So why not? So there's a possibility as industry consolidation happens. Who else? Yes, sir. Please.
Can you talk about the advantage of the business that you had before that you mentioned the legacy business that worked in the previous year? In 2021, pro forma with combined companies were about 30. So that's 30 to 45, and now 45 to 30. We're on track for 23%. We're 33% after six months. Can you compare this to that?
We typically, FYI, we're typically about double the industry. The industry is growing somewhere between 11%-13%. We're typically just about, we've grown at double that. Yes, sir. Inside ownership today is about 8% or 9%. Yeah. Yes, sir.
What's your distribution for? You have a sales force out there. And how much of that growth is sort of when existing clients expand or expand that by several hours?
We're looking for new clients. We're adding new clients every year. So that is now, but we do get growth from existing customers. For example, Freddy's Custard is a regional chain. Freddy's, three years ago, was bought by a private equity firm. They took a year, year and a half to kind of clean up the operation. In 2025, Freddy's has already announced they're opening 100 locations a year for the next four years.
Okay. So we're riding the boom of Freddy's, who's an existing customer. And then typically we land a new logo or two a month, if not more than that. So yeah, we landed the Human Bean that was a coffee chain startup out of Eugene, Oregon. And now the Human Bean's opening up 20 stores a month across the United States. So yeah, that's really it. We're just continuing to add.
One of our customers was Six Flags and another one was Cedar Fair, the two, the number three and number four theme park companies in America, and they merged. So. Okay. Any last questions?