Dubber Corporation Limited (DUB) Earnings Call Transcript

Good morning, everyone. We'll just wait another minute or 2 to allow a few more people to join. Okay. Just -- it looks like we're stabilizing, so we might get started. Welcome to the quarter 1 FY '27 quarterly activities update. I'm the CEO, Matthew Bellizia. I'll be giving the presentation along with the CFO, Prasad Kasinadhuni. Prasad, if you can move us along to the key messages, please? We are cash flow positive for the quarter, which you can see through the. We finished the quarter with $11.2 million of cash and as well as our further undrawn $5 million facility, giving us a total liquidity of around $16.2 million, again, with a debt-free, strong balance sheet. Our revenue was up marginally to $7.7 million. We've maintained cost discipline. We're continually doing substantial R&D in this place, which I'll talk about in a minute, which we fully expense, we're not capitalizing the R&D. So all the R&D we've done over the last 12 months has expensed into the numbers. I continually talk about broadening the revenue streams to 4 revenue streams. We have the core recording business. I think we all know now that Verizon is pushing back, but they're doing more and more piloting right now. So we're expecting that to go live in the first quarter of calendar year '27, in the next 4, 3, 4 months. So we're making good progress with them. Second revenue stream, our payments revenue stream. We're spending a lot more time on investing in payments. We built it into the AWS Cloud. we're now spending more money on marketing and selling the payments business, promoting the payments products. The third product streams or Dubernotes, we've invested heavily in this product. We have a good product, people that are piloting love it, but we have not generated any substantial revenue of it yet because has taken the most of the year to build. We've had to update contracts with partners. Partners are updating the contracts that people love the product. And we hope that investment is going to start turning into real revenue very soon. And similarly, we've invested substantially in our AI development. So we've got a lot of voice AI that we've built. A lot of it is being piloted. We continue to get positive customer feedback. But again, in an R&D business, we've got to build the IP. We've got to change the partners' contracts, the partners they have to change their SKUs in their business with the ability to sell it. And most of that's happened. So we're expecting to start to see the fruits of our labor coming through in revenue shortly. So it's been a year of investment. But we're hoping to start seeing some of these broader revenue streams start to feed on top of our existing revenue streams to broaden the business and pivot us into growth into next year. Next slide, please, Prasad. And one more, please. Well, we did Daisy. Daisy has some fantastic customers, MLC, of the -- some massive brands throughout Australia and New Zealand, some really good companies. They're very strong in insurance and financial AI, quite a sticky business. The deal is we're paying $400,000 upfront, which has already been disclosed to the market and then a further $300,000 at the 6- and 12-month market -- at the 6- and 12-month milestones, anniversaries. And 1.7 million ARRs retained after 12 months, a further $250,000 in shares, which will have to get shareholder approval. Completion is progressing fast and is likely to happen very soon. And again, this plays into our 4 verticals. We said we've got core recording, we have payments, we've got notes to go to market. and voice AI. This is again strengthens our AI offering, which sits on top of our voice recording platform. There's a lot setting conversations. We're now untapping a lot more information to give the market to tell you what actually is being discussed in your business and you can action improve your business real solutions. So as we get this stuff to market, we hope to get pretty good acceleration through next year on sales. Next slide, please, Prasad. To give you an idea of some of the things we've built, we've built sales playbooks. If you bring any organization, any company and you speak to a salesperson, they are to pick up certain questions. So if you or how many license you're interested in, if you ring up to buy a car, who's the Carrefour, do you have budget? Do you need finance for the vehicle? Sales playbooks allows you to find questions so you can start to measure have your sales team ask the right questions. It gives them instant feedback. Objections are then raised in the sales cycle. You are too expensive. Well, this is the best responses the company thinks that you should give to objections. Is expensive. Well, finance is too expensive, but we don't have establishment fees, convenience. There's certain answers. Again, we teach the sales guys that was the objection raised by the customer. There's 2 responses you did use. There's 2 or 3 you could have also used to help do it. You order pitch it, you better. You should sell the benefits of your company or the benefits of your products. We measure whether you actually pitched and you should be outcomes achieved over sales being as did you get an appointment? Did you get a test drive? Did you get people to a presentation? What is the next outcome? So that's what a sales playbook is. We've built that, and that's getting close to releases in pilot. Sales process looks at all the -- sales process looks at all the particular ways you try to pose a deal, a direct close, can I -- which is -- would you buy this. An assumptive close, can I have the name for the reservation, a temperature check, which might be or a conditional close, if I measure the price, would you buy? We measure the close techniques to sales people try to use, the customer's reaction, did the customer react positively or negatively to that sales close technique and which ones are working more effectively in your business, which of your sales team are using which sales close technique and what results are resulting from it lesser sales team into improving based on the best sales teams performances. We have built a service and support workflow that tracks for service calls, different flows that happen in service did you achieve the milestone through service and support to satisfy the customer. Did this customer get satisfied? Was it reacting well. Did he leave the call dissatisfied. If he left satisfied, let's flag to the service manager, let's engage before you lose that customer. And a training center so you can actually take the best sales processes, the best sales books, put the best calls in a training center, your junior staff can learn by listening to the calls of the best sales staff. And that's a Dubber training center. All this stuff is new. This is the stuff that's going to market. We're changing customers' contracts to support AI and these new SKUs that we can sell this stuff into next year. Next slide, please, Prasad. We have a new iPhone and Android app to let you report if you want to record in person meetings, you can pick them up. You can review summaries. You can see basic information about your last calls for those customers. So before you call on back in and say, what do I discuss with them last time? What was their main objections? How did I overcome them? Were they satisfied? We have built business intelligence modules, which gives you grass and stats. You can see which staff are talking over other staff. You can talk -- talk to listen ratios. You can see who's making outbound calls? How many people are making external calls versus internal calls versus personal calls, are people driving the KPIs they ought to be doing in their businesses? We have AML and app reporting modules that send straight to your email information pertain to what you've been doing based on each of the things I just talked about, so people get live coaching the end of a call is what you said, this is what you could have said, if there's escalations we e-mail many just so they can get involved. And we have our inside agent, which is ask AI any question you want across your voice. How many people ran up? How many -- are my customers were dissatisfied last week -- if you like that query, you can then schedule and say each week, I want to know which all the complaints in the business, of all the complaints. I hope this is making sense. Next slide. And Daisy is obviously going to bring us some strong insurance and finance stocks. So that's another plug into our AI capability and I've talked about a lot of stuff being post call, where we send you an alert. Next year, we want to coach the people live in the call. So if you get an objection, we're going to flag up. Here are some of the answers you can actually provide to the customer as and when it occurs. So that's some of the stuff we've built, which we haven't seen the fruits of our labor. I say to some of our investors as field, we've planned the field. We put the seeds were fertilized and we spent 12 months paying for less R&D. Little seedlings are growing. People look at what we've built. They're partners and early customers say, we love what you're doing, but we're yet to harvest and see the fruits flow into the revenue. So -- there's bit of processes, but that's where the business is heading. I obviously believe in it because I keep buying our shares and have so again. So that's where the business will go, which is for revenue streams. The voice AI is a boom market. And that's what I think is going to this place as we get this top to market. Next slide, please, Prasad. Some of the projects that we're currently working on, we're still moving Vodafone in the U.K., our biggest customer across to the Dubber platform, so that will rationalize that. They're launching new SKUs and new products in November, which will give us them more revenues more opportunity to give us revenues. Verizon still to go live now in Q3, they are making substantial headway now. We are hooking up more and more and more live testing going on -- so now it's getting more and more real. The delays were at our in, they've been network-based and too, but we're looking in good place to go live with that. We're migrating out of the U.K. data center continuously moving our payments customers from a data center into the AWS Cloud, which we've invested in. That's going to drive savings plus it gives better security and a better product we can then take around the world because when AWS, which we globalized rather than setting up data centers around the world. There's still more direct cost optimization to be found. We're still finding more things in AWS and Azure where we can save costs. There's more work going on to drive down our direct costs. Our Dubanotes and AI launch, I've talked about and the recovery of funds is going on. We're doing a little bit of discovery at the moment with the BDO case over the next month or 2, then the case will be staged. So there'll be no more to spend in this business until the ASIC case goes ahead and the asset case might take 18 months before they get BDO to court. But the good news for us is we get to sit behind that case, spend 0 for that 18 months and see what the outcome. If ASIC BDO, you would think BDO or do want to settle with us and of course to Prasad for the CFO update.

Thanks, Matt. Hi, everyone. I'll take you through the ends for the quarter now. Overall, we are pleased with where we have landed. Costs are down again. We have delivered another quarter of positive normalized EBITDA and importantly, the business generated $1.3 million in operating cash flow. Let's start with revenue. We finished the quarter at $7.7 million, slightly up on $7.6 million last quarter. Recurring revenue grew around 3% to $7.3 million and ARR held study at $29 million. After the changes we have been through over the past year is good to see revenues stabilizing. From here, the job is to get to growing again. And the new projects Matt just spoke about are a big part of that. Our operating run rate, which is probably the result I am very pleased for the quarter. Revenue of $7.7 million came in ahead of our cash-based cost of $7.2 million. That gives us a positive operating run rate of around $0.5 million, up from breakeven last quarter. Our annualized cost base is now around $28.6 million. That is a further $1.9 million of annualized savings on the last quarter. So the cost work we have been doing is now clearly showing up in the numbers. Direct costs didn't move much this quarter. They were around $2.5 million. in line with last quarter. The gross margin is held at 68%. There was a small uptick in A compute cost, which is about $21,000. And this is due to the new trial products, which we are trialing right now for our Dubber notes and other AI products, and we are continuously optimizing our cloud spend. Operating cash costs are where most of our savings have come from. They fell 10% from $5.2 million to $4.7 million, which takes our annualized operating cash cost base to around $18.8 million. Thus the restructuring, supplier renegotiations, automation work all coming through. And also, we have identified further savings in the coming quarters. On EBITDA, normalized EBITDA was positive $0.5 million, which is up from 100,000 last quarter. That is 3 quarters in a row of positive normalized EBITDA. For context, if you look at Q1 FY '28, we made a normalized loss of $3.8 million. That is a $4.3 million turnaround compared to Q1 FY '25. It shows how far we have come in putting the business on a sustainable footing. Now to cash. We have ended the September with $1.2 million cash in the bank, which is about 1 million more than at the end of June. On top of that, we have $5 million loan facility that remains completely undrawn. So the total available funding for the quarter is at $16.2 million, which is very strong. Coming to the actual cash flow. This slide shows the actual cash that came in and out during the quarter. Operating cash flow was positive $1.3 million compared to a small outflow of $100,000 last quarter. Customer receipts were strong at $9.8 million and which is up from 8.1% from last quarter. Operating payments were around $8.5 million, which is slightly higher than last quarter. This is due to some timing of annual prepaid expenses. What we can see is that better operating performance is now turning into cash in the bank. This is about normalized cash flow. If you report the $90,000 for one-off restructuring and recovery cost, the line cash flow is about $1.4 million, up from $200,000 last quarter. So the underlying cash performance of the business keeps improving all the time. So to wrap up, it's been a solid quarter. Revenue has stabilized. Costs were down again. None less EBITDA has been positive for the last 3 quarters, and the business is generating cash. A lot of work has gone in getting the cost base where we are today. The next step is growing revenue while keeping the same cost discipline. With that, I'll hand over back to Matt. Thanks, Matt.

Yes. So pushing forward, next slide, please, Prasad. Our new model and as we've updated all the contracts, we're moving to a token-based model. In fact, we've got a good complement from the hand of product on Verizon, we said, we think you've actually got one of the best models we've ever seen. But that means as we go forward and once we've done all these contract changes with all these customers, we put all the SKUs in place, updated all the marketplaces, people can buy through our token products, we can continually build more AI, continually put it in the platform. People -- come up with a model where people can self configure the options. They can turn stuff on, they can turn it off, they can consume our tokens and they can they can spend more with us providing them buying value from our products. So our challenge going forward is the business is continually building purposeful AI, stuff that's going to drive real value for business going out to market, understanding what the customers want building stuff that people want to consume putting in the platform and then it's easy to continue to build the business because people can just buy more and more tokens and enable more and more features. So it really helps the scale right globally as we go through this transition from fixed SKUs to tokens and just continually consuming more tokens and -- which is the AI market. Importantly, we also talked our partners into a much lower margin on tokens. They've agreed to that. Their margins were much higher, which was pricing Dubber out of the market a little bit on previous AI, and they've gone to much skinnier margins, understanding that the AI market is more competitive, but we do have reach into 224,000 people getting voice recordings of Dubber, who is readily available that could take our Duvernodes products and our AI products as we go live. So focus in the next year we'll continue to have cost discipline will continue to drive costs. Once we see growth, once we get fully enabled and our notes and products are going to market and our AI is getting consumed, we have a good cash reserve to fuel the fire. We will throw fuel on fire once see it starting to take off. which is more marketing, more sales team and absolutely try and boost this business once we start to fuel the fire. We've gone through the process of R&D. We've built a lot of stuff. It's in positive feedback -- we've gone through the contractual updates right now and the SKUs of the system, the system changes so that they can order stuff automatically through our products. And hopefully, next year, as we go through this stuff turns into a real growth market coupled with Vodafone back selling and the Verizon products coming on. So let's now go to questions. That's the end of the presentation.

I'll ask the first question, why is your share price in the bin? I assume everyone wants to know that. Our enterprise value at the moment is about $5 million is roughly speaking. Obviously, we have 1 of the institutions that are selling off our stock. You guys can guess who it is. They're selling off a lot of stocks around the world -- sorry, a lot of stocks in the small and medium cut. They're in the AFR yesterday, selling off hard. But until they are washed out, we just got to continue to absorb that sell-off. And -- it's just a particularly cheap stock. Our company is worth $5 million with $30 million revenue trading in the black and enterprise value at the moment. So that's probably all I can talk about in the valuation stakes at the minute. Any other questions? I'm not seeing any less my system is not putting them up. Are there questions coming through?

Matt, can you now?

I can't see any questions. on Eric just come in to pick them up Sorry, there are 15 questions, sorry. I've now got the questions. Well, has Dubber either directly or through ASIC investigations identified any invent assets held by the former CEO, including property investments, company interest trusts or assets held for associated entities against which Dubber potentially for successful judgment. Has the received any investment of the approximate value of those assets, whether they incumbent what portion could be real estate could be recovered for shareholders. The answer is no, not really the ASIC process we're fairly long to as we don't communicate with us. We don't really know where their investigation is to on investigating the -- where the money went or who took the money that's -- ASIC do not communicate with us at all. The only thing we're aware of is what as testing is pursuing BDO. In terms of the assets by the former CEO and others, well, we obviously know they've got some but we've got a legal case against them. But until you win that, you can't freeze them and ASIC haven't proven any wrongdoing on those people just yet. So it's a difficult situation. I don't know it's frustrating for people, but we don't really have a lot of answers on that. Has Dubber a commission of forensic asset tracing investigation, including examining transfer to associated entities and third parties. ASIC has done a lot as it has been through Asia had a massive investigation. Again, we're blind to what they've done, but they've had meeting after meeting the rate everyone in. This is around 18 months ago, 2 years ago, again, we're not really privy to what they found. Now we obviously -- our former Board commissioned KPMG to investigate that. We're privy to a chunk of information, which is forming some of our -- the basis of our legal case. So we can't talk about it much more. But again, we don't really know where this is up to right. Does your system offer to security for client accounts and systems? Absolutely -- we support -- we're very secure. We have a lot of the big telcos that uses around the real push out security standards extremely hard, and we've got a lot of certifications. So certainly 2 FI, MFI and all that stuff part of that. Has Dubber or other asset preservation measures about the recoverable assets, if not, why not? Again, we did have a look at that. The former Board had a look at that and decided not to proceed on the basis that ASIC was involved, and we didn't again have enough. The guys have not been changed, so it's a difficult one. Based on information available to the Board, is there a realistic prospect of recovering a proportional amount of the $26 million of the former CEO and associated parties? There's another one. Is there annual revenue that Dan Okay, this is the last question I'll answer on this 1 because I kept repeating myself. Again, we are pursuing BDO for $26 million. So is ASIC. We're going to be stayed after we do discovery over the next month or 2, and we'll wait to see what ASIC has. ASIC Have a ton more information than us as it could pull through, they have powers that we don't have. We have access to information like any civil litigation would they have a ton more power. So we need to sit behind their case and see what they find and hope your regulator does that. So may be right for the regulator and, they'll give you something, but certainly, they're not giving us anything. What annual revenue can Dubber generate sustain statutory net profit of $5 million, assuming its current operating structure? Well, right now, I'd assume with growth, we would probably flow 30%, 40% to the bottom line from here. We're running at 60%, 70% gross margin. But as you grow, you've got to hire more salespeople, more support people, more engineers. So I'd say the answer to that is probably to get $5 million to the bottom line. It's probably $45 million turnover. Has the European business now stabilized? So mostly stabilized. That was the 1 that was the hardest hit. Obviously, we lost Virgin Media, fascinating. We told the market we lost Virgin Media. Our share price went from $0.037 to $0.018 overnight to factor in that we lost $10 million in revenue. Of course, that revenue rolled off progressively over the next 5 quarters and our share price kept getting punished as it went down on what we had already told the market. But yes, it's substantially stabilizing now. And hopefully, we're starting to pivot more into growth as we launch more products, and we go from defensive and call recording and suffering the pain from the of the past to launching new entrepreneurial products that the market should consume and the market is starting to say, "Hey, we like what you've got." How much revenue is currently generated specifically from AI products, excluding traditional? We -- the business has not been great at measuring that historically. The difference between AI revenue and revenue. Certainly, our new SKUs are geared to measure AI growth, notes growth, and I talk about the full revenue streams. As we bring them on next year, we're going to be able to report that on a lot more distinctively. I won't name the company, but has they finished selling off their holdings, how many do they have left? This is the that's selling off. I probably shouldn't answer what I'm guessing they have left. I don't really know because they hold their holdings in other companies. I have a back of the envelope guess of what I think they're holding off. Myself and others have got buy orders in today. We're continually absorbing them. I think it's a fire sale. So I'm not just buying Dubber stock on buying the other stuff they're selling off as well, to be honest. When does North America carrier go live? It should be in the first quarter. Of the $4.6 million upfront, how much is refunded or deferred. It not refundable or deferred. Dubber's network has been standing up. We've been drawing down on a proper accounting basis. This place is going to be run squeaky clean. There's no portion anymore. We're drawing that down over 60 months that we started from last January. They started paying us. I think it was on a 5-year term. They pay us for the network and the services, our network and services are standing up. So we're drawing that down into revenue on a monthly basis. The services that they sell go on top of that, and that's the flow on when they go live. So it's not refundable nor deferred. It's a contract for 5 years to hook up and supply network services. Don't forget the investment they made in their network to support this is substantive millions and millions, well above. I'm going to guess well in excess of $10 million or more, they would have had to put into their own network to be able to hook up the Dubber call recording. So a substantial project for them, massive investment, and they're starting to turn that on, hopefully, in the first quarter next year. But with -- the signs are good, they're certainly doing a lot of trialing now. Have -- do you have any key contracts expiring in the next 12 months? Contracts do expire all the time. So yes, they do come up like any business. And I guess you're asking me what I expect exposure to be? There's probably one that I sit there and think April, May next year that I'm hoping will renew. There's something -- there's certainly nothing of substantial nature like we lost in BMO 2. The biggest customer -- partner we have right now is Vodafone. Vodafone is launching more SKUs. They've just -- they moved a chunk of their stuff onto our cloud. They're moving the rest of the stuff on to our cloud. They're going forward with us. In the April webinar, you announced teams by mobile, what has been the uptake of that developed product. That hasn't been well taken up anywhere, to be honest, not just quality recording, Teamstone Mobile has not taken up anywhere in the world. That was a year ago that Vodafone presented that at Mobile World Congress, teams to mobile and Dubber. But Teamstone Mobile is not booming anywhere in the world. I haven't seen it take off in anywhere in the world right now. Any guidance for FY '27 revenue? No, we're not providing guidance at this point in time. Again, we have a lot of products going to market. I'd love to get excited about it, and I'd love to go and spend recklessly on growth and I hope that they went to market. But here, what I want to see is the CEO. I've invested in these products. We believe in these products. I want to see the sales starting to take off. And when I start sensing certain sectors picking up these products, we will fuel the fire. We have plenty of cash reserves sitting here that we will fuel when the time is right to drive the acceleration. So you to grow by, say, 20% over the next couple of years, what would you expect profit to look like? I think I've answered that one, I would expect $0.30, $0.40 to flow to the bottom line of our growth now that we've reset this cost base. We're 60%, 70% margin, but assume a $0.40 in the dollar would go to more sales team, more marketing, more support staff, more engineering to continue to invest and continue the growth. When do you expect revenue to come from Verizon, I've covered that. Revenue -- so revenue was $40 million, I'd expect EBIT to be around $3 million or $4 million. Can you estimate the R&D costs absorbed in the P&L for the new product development? Yes, I'd say we've probably spent these guesses, but I'd say we'd spend a couple of million dollars this year in R&D on these new products. What are your expectations for the magnitude and growth from revenue from Verizon? I know what they're forecasting. What's positive is we're signing an change to their contract right now to support the AI SKUs. So that could be even greater. Do I really want to turn up? One thing I've not done to you in 2 years is turn up and promise the market anything. I've been pretty straight. I've been pretty honest, I haven't really given any false promises. I haven't really pumped the share price. In fact, investor relations companies at the moment. But as we go into next year, and we can start to really see the growth, I think then when I can actually not just go on promises, which this company used you guys were promises. When I really see real traction, I can actually start to put my hand on and say, "I can trust that trajectory." I'll give you a forecast -- and I'll give you a forecast that you can trust and believe at that point. Other than that, I'll keep credibility. Next year, I'll probably bring a lot of investor relations back. When I start to believe that we've gone from suffering the pain of the past, to seeing the fruits of our labor and the investments of our R&D turn full being back Investor Relations, will promote the share price, we'll promote the business to investors and that will be the time that we do it. We do it with credibility because we haven't to date, we've kept ourselves credible and we'll continue to do that no. Thank you for your transparency. Looking forward to the next year. Can you talk to the share consolidation? Yes. Our shares -- I mean, listen, which looks stupid as our share price or 0.005%, 0.6, 0.7 People look at that and don't understand that we've got 2.7 billion shares on offer. How did we have 2.7 billion. We did an emergency $25 million capital raise in around April '24. We then did another $25 million emergency capital raise or maybe not emergency in October '24, where we issued another 1.6 billion shares on recon issued. I mean, I'm guessing this, guys, but so don't hold me to it. And that pushes out to 2.7 billion shares when we raised $50 million in 2024. It's crazy. So 50:1 share consolidation pulls us back to around 55 million shares. It will bring the share price back to right now. It's going to be about $0.30, $0.35, $0.40 depends when that company has been washed out that's plugging off hard. And there's some opportunities around the market right now based on their sell-offs. And I think that just really rates puts our share back to more credible things because customers look at that share and say we'll hang on, do I want to do business with a share that's under $0.01, they are a penny stock. It's not the right credibility. In hindsight, I wish we had consolidated a year ago. I was probably talked out of at the time, they said why you're losing may don't share, consolidate because you'll drift backwards again. But I think from a credibility point of view and a cleanup point of view, it's neither entity that we actually brought ourselves back to a rational amount of shares that a company like us should have. Is your average recurring revenue of existing clients are concerned for you, and you're working towards improving old existing clients -- we're continually working on conference with the clients. I've spent 6 of the last 8 weeks abroad. I turn up to the clients. I'll tell them the vision I tell them where we're going. They know we're being honest, don't they keep saying you keep doing what you say you're going to do. Your results keep coming like you say you're going to be I've told them we're going to be able to we're going to retain at least $8-plus million in the bank. We keep beating expectations. They keep on believing that we are delivering on what we promised. And that creates a lot of stability over the 12 months that we have done what we've done and the customers say, well, and you're investing in product, you're investing in R&D and you're taking us on a journey. We're not stuck in the past. You are taking us forward. Yes, we had shutters that happened in 2024. It takes a year to a tender and a year for us to lose customers, which we all know about and was suffered. Notwithstanding, we've suffered nearly 10% losses through FX as well. because we're 94% offshore revenue. Now that's not helping us that our interest rates go up Tuesday, and the U.S. held constant on interest rates, but that's cyclical and hope that it swings back the other way, and we pick up our 10% revenue loss on FX at some point. Are you looking for a new Board member for John Selak resignation? Are you able to summarize your senior leadership in their roles, Rock Ben, Joes, et cetera? So right now because I am a scumbag, I'm happy to stay with 4 directors. At some point, if we had a strategic person that could help us grow the business, we would look at them. So we found some more strategic around the world that could join our Board or someone that was going to take a material stake, I think it would be interesting. But right now, I'm happy with the savings and so forth. Senior leadership, we obviously have a leader of each region that runs each region and tries to grow each region. We have a head of marketing, we have a CFO, and we have a CTO. They are my main sets of reports through the business. What markets are you seeing the most growth in U.S. and what is leading that traditional recording. U.S. is having a pretty good month this month to be honest, probably the best I've seen. And right now, yes, they're selling mostly on recording revenues because right now, we're doing free trials on AI and notes, people are loving it, but we can't transact it. So our direct costs are a little higher than they should be because we're paying for the free trials. And hopefully, as we start to get those -- the contracts on the systems hooked up so that they can automate the provision notes in our new AI that will come on, but the U.S. is our main growth market at the minute. The U.K., funny enough, it's funny when you look what happened in this business U.S. market didn't seem to give a shift. They just like what we've seen companies go broke. They go into Chapter 11, they come out the other side. What's the big deal? The U.K. is the one where we suffered greater pain through and more shutters around. Well, what does it mean that you win the training holes for a couple of months? Are you going to be stable? Are you going to get out of it? Should we take some of your business away and have 2 vendors. The U.S. seemed to be pretty unphased about it all but we are mostly through all those woods because for the last 12 or 18 months, 2 years that I've been here, I've talked to the market, I have talked to the customers. We continue to deliver. So I don't see people that haven't made a decision to leave us -- leaving us now. I think we're suffering from what happened in the past, it's now onwards and upwards about where we go. Can you disclose my employee have compared to 2 years ago, software engineering, product maintenance and support? The answer to that is I love engineering. So we've stripped back a lot of people in HR and product, we've reduced our finance team because we automate a lot of the invoicing to go -- straight automated invoicing processes. We've done a lot of internal automation in our business. Engineering I didn't touch to an engineering company, you've got to build bloody good product, you've got to have good customer support. You've got to deliver it and you've got to sell it. and we've stripped back our sales team as well because we sell through indirect channels. I thought it was stupid that we're paying indirect sales channels, and we're paying for salespeople. Why you're paying 2 lots of sales chance, using indirect run them efficiently. If you're going to sell direct, have KPIs on your direct team. And I thought there was too many people. What flushed that out for me is I put over notes, our own product on our own people, and like most of our sales staff around the world doing calls -- external calls for 1 hour a day. So the -- if they work in a home and I'm doing 1 hour a day, what are they doing for the other 6 hours? And that's what I started to pull apart. Why do we have so many people, which is great because our story of how we rationalize our business by using Dubber's own products shows the return on investment we got, and this is what our customers are going to experience to. Can Dubber realistically maintain support continually improved commercial development absolutely, we can continue to maintain and invest in product, and we're going to continually invest in new engineers and better engineers. And don't forget, a lot of your software is now built by card and AI and more automation. So companies like us can build more faster, produce more software using Claude code, other software techniques, and build it more efficiently and effectively. If we're going to compete in the AI space, we have to build AI and to do AI more effectively than everyone else as well. We're in competition. Just a comment, you want to the keeping a lean board. Well, I want to keep our costs in and I like to keep value and invest in the areas that create growth and value for this business. We invest in IP. We'll invest in the right sales team. We'll invest in results, we'll invest in accountability and growth. And a team -- I'm a big believer that people do business with people. I want a sales team that people like. People want to do business, where people can trust honest ethics and good product win business. You win technology by having the best product, the best IP, having the best people selling it and then evolving it. The fact that our model allows you to enable and disable features means we continue to build features, push them into the product and our customers were just continually see new products. We complement that with good marketing and sales engagement, and that's our model for growth next year. I think that is the whole list of questions. I hope I answered them clearly, for everyone, I thought this was going to be a short presentation because we put the 4 so early, but we're already 45 minutes in. Are there any further questions? I'll give it another 30 seconds. If there's no further questions, we will wrap up. Good start. Thanks. Very good preso. Time frame for share consolidation, the AGM is on the 25th or 26th in November, and that should happen around mid-December, assuming the vote goes through on the share consolidation. Any further questions right, there's nothing further, we will wrap up. Thank you for everyone for attending -- and we'll continue to work hard for you push hard with this vision. And hopefully, all the fruits of our labor, we will be harvesting all the stuff that we've that we've been seeding for the last 12 months, and hopefully, this IP goes out and can turn us into voice AI companies and look at the valuation of these voice AI companies that we're going head-to-head with incredible versus our valuation Thanks, everyone, and have a good time. Thank you Goodbye.