Objective Corporation Limited (OCL) Earnings Call Transcript

Good morning, everyone, and welcome to Objective Corporation's FY 2025 Financial Results. I appreciate your time. Let's start off with just also, I guess, talking about our purpose. We showed this at the beginning of all the presentations regardless of whether it's Investor Relations, employees or customers, and that is outstanding GovTech driving stronger communities and nations. What I'm going to cover today are 4 areas: the FY '25 financial summary, which I know some of you will be pouring through from the ASX, I talk about the highlights of the year, go through a business line overview and then conclude with a discussion about the outlook for 2026. So just having a look at the financial highlights, the key numbers, revenue of $124 million, annual recurring revenue of $120 million, adjusted EBITDA of $46 million, net profit after tax of $35 million, an investment of 30% of software revenue of $31 million in R&D, operating cash flow of $46 million, cash at $99 million and the full year dividend at $22 million (sic) [ $0.22 per share ]. And obviously, this year, we had the interim dividend, of course. I guess the -- we'll start off and talk just very briefly about innovation. It's been a huge year of innovation here. We talk about it in the slides further down. But as has been sort of consistent for quite a long period of time now, we've had a significant investment in R&D again this year. In the last 5 years, that's been $135 million invested primarily here in Australia. We also have a small R&D center in New Zealand and one in the U.K. And then of that, 44% of our total all-time R&D investment since we listed on the ASX, 44% of that has been in the last 5 years. Again, these are all great numbers for customers and really all great numbers for employees and investors alike as they really underpin the future growth strategy of the organization. If we look at our transition to subscription revenue, this has been something that everyone has been very interested in over the last number of years. I think as per previous reporting periods, we're very much focused on the dark blue column. And as you can see, it has continued to grow 84% recurring revenue this year, 100% subscription software revenue this year. And so that trend has continued on as expected. If we look at this in terms of how this drives growth, you can see on the chart on the left-hand side there, over the last 5 years, we've had a 17% compound annual growth rate in ARR. And on the right-hand side, you can see the growth and the conversion, I guess, from our historic on-prem USP or Upgrade and Support Program and that conversion to SaaS. Now this chart on the right-hand side, this is dealing with revenue as opposed to the bookings, which I'll talk about in another slide's time. And then overall, in terms of our profitability, this is really in line with our strategic plan. So 39% in adjusted EBITDA margin and 15% growth. We've historically been very focused on getting the right balance between top line growth and profitable growth and making sure that we are traveling well north of the Rule of 40. And I think these numbers underpin that strongly. If we look at the growth in the various segments here, you can see -- I guess this is the outlook to '26, which we'll come back to a little bit later on. We're anticipating these growth targets in line with each of our line of business applications. So 11% to 13% in the Content Solutions space, 20% to 25% in Planning & Building, and 20% to 25% in Regulatory Solutions. But perhaps this slide might have been better in the outlook statement, but we'll come back to these numbers a little bit later on. So in terms of the highlights for the year, the first thing is to recognize that our flywheel of innovation continues to deliver great results for all of us. Our investment case in R&D is very strong. The software we're producing is easily the best we've ever produced as is the customer experience. We'll talk about some of the customer outcomes shortly and the financial performance, again, a lot of records hit this year, which is helping us drive that increased investment. And so we've shown this flywheel of innovation infographic for every year now for quite a long period of time. And I think it's always worth celebrating so that we all know that this flywheel continues to deliver results for us. I guess the other big highlight for us this year is that 4 days ago, in fact, we celebrated our 25 years on the ASX, which was quite an occasion for us here. So I'm enjoying my 50th results presentation this morning. Lots of fun. People -- I'm sure people will ask me how long we'll keep going for. And I've got -- not sure I'll be here at the 50th anniversary, but there's plenty more to play for in the years ahead. In keeping with that, it was also worth celebrating that we're now out to over 2,000 customer relationships. And in fact, if I can just call out a couple, there are some here like ResMed, Barwon Water, City of Darebin that are at the top there that have been with us since before we became a public company back in 2000. So -- but we're very grateful for all of our customers. We've got an incredible number of long-term customers. Again, I'll talk about some of those in the next few slides. We also, a couple of weeks back, had Activate25. This is an internal effectively a university week for us here at Objective. We haven't run a global Activate program since before COVID. And needless to say, I think without doubt, this was a fabulous event. We had people from all over the world in attendance. And it really set out, you can see in the top left-hand corner there, the theme was Fit for [ 26 ]. It really set out what we were aiming to do in the year ahead, but more so really a global celebration of the things that we had achieved during the year. And I think to all of the people that were fortunate enough to be there in the Hunter Valley. In fact, it was -- the result in culture from our perspective was the strongest that I've ever seen. So a fantastic event. Equally, I appreciate that you should not put out a results presentation without waxing lyrically about AI. And I thought it was relevant to us this year to really talk about Objective Intelligence, which I know some of you will know about because you scour our website and our postings. But I wanted to give you a sense of the breadth of AI that were already in Objective products. And it reminded me a little bit of probably some time back when cloud first came about, and we said, well, what's the big deal? We've been doing cloud for a long time. And I think if I go back to a couple of the sort of prior reporting periods, I've had the same perspective about artificial intelligence. We have been using artificial intelligence in our products for a very, very long time. But I wanted to call this out. People are obviously very interested in what we're doing. And so this is -- gives you a bit of a feeling for each of the core areas of AI where we've been delivering this in our products. So first of all, the RAG-based solutions. We'll have a lot more to say about this over the coming months in terms of the customer work that we're doing. Automated document intelligence, which we've been using in solutions now for probably 20 years. Computer vision, which is an enormous part of what we've been doing in Build, Trapeze and RegWorks. And then finally, all the NLP work that we've been doing across all of our product sets. And so it's fair to say that AI is a big part of what Objective is doing today. I don't want to overemphasize it, and no doubt there'll be lots of questions during the various presentations during the day, but it's very much an investment focus with our R&D. Equally, I've spoken about the Objective Design Language in the past as well. There's been some really huge advancements with ODL over the last 12 months. You can see here various products, they all look like they came from the same parents, which I think is what customers expect from solutions these days. But more recently, we have been able to use the Objective Design Language and use Claude Code, another one of the AI models, which some of you will be familiar with, to actually generate a lot of the code behind the interfaces that we have -- that we generate within our design team. This has been a major step forward in productivity and one that no doubt you'll see us talk about in the periods ahead. So if I can just now go through each of the lines of business and call out some of the key things that happened during the year. So as we know, if we look at our 3 lines of business: Content Solutions, Planning & Building and Regulatory Solutions, they're all very much driven by governance, regulation and providing a digital service. In fact, I would say that even Planning & Building is just a specialist regulatory platform. So everything that we've done this year and everything that is on the horizon for '26 still sits within these 3 pillars in this framework. So if I first of all, start off with Content Solutions. You can see the headline numbers there in terms of sales. Again, we've been pushing -- this is -- if I talk about both Content Solutions and Regulatory Solutions, I think you all know how hard we're pushing downwards on the cost of implementation for customers, which is leading to a lower services revenue every year. We think we've compressed it to its absolute maximum only to find more efficiency. So that's an ongoing trend. But the ARR is up 12% year-on-year, which was pretty much in line with our expectations. The highlights, Scottish Government, our second largest customer globally, is in the middle of a migration from their on-prem solution to Objective Nexus. So that is a major proof point for all customers. And as I've highlighted there, we're now out to 20 customers that have now moved to Nexus. And that includes a number of our larger customers, although it's fair to say our largest customer in the Department of Defense and several other large customers are still yet to go. At the same time, Objective Nexus in terms of innovation has transitioned to a cloud-first focus. So all of our customers are aware that everything that we do is focused on Nexus rather than the older on-prem solutions. And again, that's being well received. We did a lot of work in 3Sixty with Objective Intelligence and Microsoft Copilot. And it's fair to say that the interest in what we're doing with Objective Intelligence in the -- in our core Content Solutions market has never been higher. And the reason for this is curated data sets have become a huge part of the story. Whilst there's a lot of discussion about moving customer data offshore or off-prem, if you actually understand the Objective Intelligence architecture, which I know some of you are will and truly across it, private AI in private clouds is really where customers are seeking to get the most leverage from AI. And whilst Copilot has been fabulous for getting -- for using AI in Microsoft tools, that has been more from a, I guess, a collaboration perspective. And so we've got customers like the Welsh Government, the New South Wales Crime Commission and others that we're working with, and we'll be able to talk about those in the second half of the year that are deeply invested in using 3Sixty, Objective Intelligence to deliver them high value-add private cloud AI. Equally, Objective Connect secured a whole number of new customers. We extended this bilingual capabilities, and we did a lot of integration with other solutions. Objective Keystone, which is not new to anyone, has again had a great run with Australian Superannuation Funds. And it's now been extended to do ESG disclosure and fund reporting. So there's a lot going on in the Keystone space. And then finally, we did deliver some AI capabilities and GIS capabilities for Keyplan, particularly in the U.K. marketplace, which like Australia, has got its own issues with housing. And I guess Keyplan is an integral part of that solution. I touched on this. Scottish Government, 18,500 users, 5 million citizens served. If you work in the Scottish Government, you will be using Objective Nexus. And in the second half of the calendar year, you'll be using the Nexus Cloud product. And so one of the other questions that we've addressed over time has been how is this Nexus conversion going. Historically, we've taken out the more information-sensitive organizations that we have as customers, but that hasn't proven to be reality. In fact, we now regard every ECM customer as a potential to -- for Nexus conversion. You can also see here for the first time, our USP, our traditional heritage USP has dipped slightly. So we're now talking about ARR, and it's only dipped [ $5 million ], but it's to say really, there's still a lot to play for in terms of conversion. We've given you the 2 uplift cases there at 1.5x and 2.5x. And so far, of the customers that are going from on-prem to Nexus Cloud, on average, we're running at about 2.3x in terms of the conversion. So I think over time, we expect to see all customers move to the Nexus platform. 3Sixty AI, I've really spoken a little bit about that on an earlier slide. This is just the existing infographic. We talk about it being a foundation for responsible AI. And what we're really talking about there is making sure that important government information isn't going -- isn't going to either countries or to sort of private cloud AI that would represent the sovereign risk to us. And so we've been working with a whole range of customers, particularly out on the right-hand side here with transforming data, making sure it's protected curation. I think we all know, for all of us that have worked extensively with a broad range of large language models, we'll know that like all computing, garbage in, garbage out. And so the quality of the data and the data sets is quite critical to making sure that you're getting high-quality AI outcomes. And I think for us, again, given our heritage in information governance, it gives us an ability to give -- to provide that high-quality curated data for customers. And then the broader value proposition with 3Sixty is making sure that we can federate a whole range of information that organizations have into a single platform that can then be further curated to support AI. Moving on to Planning & Building. Again, we've been super efficient with the way that we've been able to keep the conversion of customers and keep the services charges down. So sales revenue is up 6% and ARR up 31%, including the contribution from Isovist as well. A couple of key highlights. Objective Build was launched here in Australia a couple of months ago now at the PAA Conference. It will be available for deployment in the second half of the year. We've got 6 New South Wales Metro Councils that are part of the foundation partners that we have. And we have just signed up our first Victorian customers under that foundation program. So there's a tremendous amount going on with Build Australia. I think we all know you can open any media today to find something about the state of building in Australia or New Zealand or the U.K. or North America, pretty much any major nation seems to have an issue with building and with building regulation and with approvals at this point in time. So we've been building on this platform for a long time, as many of you know, and it's great to see that, that's going to become available for Australia this fiscal year. In New Zealand, we've remained very focused. Again, if you go to our website, you can see now videos about what we're doing in New Zealand. The huge amount of focus continues to go into what we're doing in New Zealand. And I think that the progress has been well underway and well examined in the past. We've got 29 New Zealand councils now live on Build. And we are finally getting the opportunity to sunset the GoGet product at the end of this financial year, which we have done in consultation with the local government community and with the New Zealand Commerce Commission. So everyone is on the same page. And then finally, with Objective Trapeze, which has been, I guess, the beginning of our journey in Planning & Building, it's broadly used. It's the de facto standard across Australia and New Zealand. We actually had 50 customer wins and expansions during the financial -- during '25, and we would expect to sort of continue to expand those customers going forward. This is really just an infographic. We've now roughly half of the consents processed in New Zealand go through our platforms. I had the great honor of going and presenting at the BOINZ Conference in New Zealand a few months ago, now where there was roughly 300 building officials and really just making sure that people understood where we were going with the Build platform in New Zealand. So the response to that has been fantastic and really has sort of paved the way for the move for a lot of the historic GoGet customers on to Build over the course of the sort of remaining 10 months of the financial year. Equally, Andrew and the team did a great job at the National Conference here in Australia. This just gives you a sense of the number of building approvals across Australia. And very clearly, Objective Build is going to carve out a niche in this space right across Australia. So second half of the year will be where all the magic happens in terms of delivery of the ultimate solution. But as I said, already, we've got a lot of councils that have already been involved with this for long period of time, including the foundation councils that I mentioned. There is a lot going on in AI, with AI in Planning & Building. This is just some of the screens that you can see here where we're doing a lot of the testing for inbound building consents or development applications as they're primarily known here in Australia. A lot of the tests that have been done using computer vision, a lot of the report generation being done through private RAG-based system. And again, if you go to our website, you'll find out a lot more about it from the videos that are on there. And then finally, we welcomed Isovist. Isovist has been a company that's been in our field of view now for probably about 5 years. This is just a natural extension to what we're doing. We've been talking to Isovist about joining the Objective family now for well over a year. So -- and of course, now Isovist is part of the team here. We'll give you the transaction metrics down the bottom. Obviously, it fit well into the metrics that we would look for, for an organization of this size, contributes about AUD 2 million and to our ARR, and it's been a profitable company since 2022. Predominantly, it is the de facto standard in New Zealand and the de facto standard in Southeast Queensland. So there's plenty of white space for us to go after with the Isovist solution. And then finally, the [ Reg Sol ] space, I'm pleased to say that the ARR is up 17%, probably slightly under what we expected for the year, but still a very solid result without any doubt. The key opportunity that was closed during the year was the WA local government. This organization, there's so many names, DEMIRS, as we would otherwise know, Local Government, Industry, Regulatory and Safety, which is the largest -- that's a recent name change, which is why I should have practiced that one. It's the largest regulator in the state of WA. And so New Zealand MPI also went live with its Fisheries Observer Solution. And we actually had Fisheries come and present to us at Activate a few weeks back, which was fantastic seeing the system being used in the field out on fishing boats, et cetera. And the New Zealand Firearm Registry System has, I think, really been a standout success for everyone involved. And it's if you're in New Zealand, you often hear about the success that New Zealand Firearms is having with that solution. So it's great. We grew our go-to-market capacity, particularly in the U.K. The -- we launched The Modern Regulator as well, which is a kind of quasi-independent website that you can go and see, which is really bringing -- making sure that we're the voice of regulation or regulatory software. And again, if you go to themodernregulator.com, you'll find out all about that. We released RegWorks Version 7 very recently. Again, I've touched on what we're trying to do with services. We introduced the Accelerator program about -- Accelerator package about a year ago now. And you can see here, the sales revenue is up slightly. That's due to the compression of what we've been able to do on the delivery side. And so for us, when we're looking for global scalability, being able to deliver quickly and accurately for customers and getting the minimum time to customer delight has been a big part of our push. And so again, I'm very grateful to the team for being able to deliver these systems much faster than they historically have. We delivered 2 of those, Victorian Social Services Regulator and the New Zealand Physio Board, both went live using that high-speed delivery, and we've got many more lined up for the FY '26 year as well. If we come back and talk about what has been the driver with RegWorks, it is really about creating this unbeatable value proposition. So comprehensive regulatory platform out of the box. It is a system for regulators built by regulators, faster onboarding, which I've mentioned, where 100% of the innovation investments going into features for regulators. And in fact, we also had the CEO for the Wage Inspectorate Victoria come and present to us at Activate a couple of weeks back. And he actually addressed each of these particular areas and why RegWorks is easily the system of choice for a Modern Regulator. At the same time, back in April this year, we got to be very much part of the Institute for Regulation National Conference. We had 270 regulators. We had 25 regulator CEOs at that event. And it was also the launch of what we do in terms of being a national regulated technology survey. We do one here in APAC, and we do another one in the U.K. And that was launched with this conference, which we've become a huge part of underpinning. And as we've mentioned before, regulation is global opportunity, just again, just a bit of reinforcement for the types of customers that we're working in -- working with globally. So coming to the outlook. Our FY '26 business plan, this is the format that you will have seen from last year. I don't think there's necessarily anything particularly new at the highest level here. It's really all about the outlook. I've been given a lot of counsel. I know that many people in the investment community have been myopically focused on this target ARR growth of 15%. I've been given wise counsel for many people not to focus on it, not to put it up again. But I think it's important that we -- even though it was always intended as an internal target that has got sort of more in the public domain, look, hopefully, we'll share some other targets for the various business units over the next couple of days. But essentially, we're still very much internally focused on that target ARR growth as the outlook for 2026. We are, again, very focused on making sure that we deliver what we do profitably, get the right balance between profit and investment. I don't think there's any question about our investment in R&D. Equally, during the course of this year, we definitely -- or '25 year, we definitely invested a lot more in our go-to-market in almost every line of business, including and in particular, the U.S. and the U.K. and domestically in Content Solutions. So there's been quite a number of investments going on there. Our investment in R&D will also continue at roughly the same rate. And whilst I'm asked perennial question of is it going to keep going up percentage-wise, perhaps not, perhaps we've reached the peak, but certainly, financially, yes, of course, it's going to keep going up in line with the growth in the business. And then finally, we are continuing to assess organic opportunities. It's been, I guess, part of the dialogue for a number of years now. Isovist is something that we knew we were bringing online during the course of the year, and we are quite active in the current market where things fit the profile of our mission and also fit within the financial metrics that we set out internally for what we're prepared to do organically. It's important to trade off and look at what we can achieve with organic growth versus inorganic opportunities because it's fair to say that sometimes the organic opportunity might be longer, but offers the best return on investment. So it's a case of getting that right balance. And I think for anyone that knows me, knows that the NPAT number is probably the one that I'm trying to drive or spend the most time focused on both internally and externally because ultimately, I think that's how these companies get valued, particularly in the GovTech space. So with that, I'll conclude and hand over to questions.

Sure. I'm just going to invite Josh Kannourakis on stage.

Okay. Great. The first one was just on Build in Australia specifically. Can we just talk about some of the initial feedback from those foundational customers? What is the sort of scope of the use case versus what we've seen in Build in New Zealand? And how you sort of think about the staging of contracts in the Australian market?

Yes. Yes. Thank you. We have been -- the process that we go through with the foundation customers is really they've been intimately involved with the development of the product. So we go and effectively drop ship, if you will, roughly every 6 weeks with those customers. So it's really a permanent engagement. It's not like we go and -- in the old days, you go out with a sharp pencil and take notes and come back and develop for 6 months to a year and go back. We are in constant dialogue with these customers when we've got a new capability, new module that goes to them for feedback. It's very much a user-centered design, user engagement approach that we've taken. As I said, we've got 6 here in New South Wales. Quite honestly, we could double that number. I think as people have understood what we're doing, PIA, in particular, lit the touch paper, but we're really -- we've got so many already engaged that we probably can't take on any more. We've just taken on our first one in Victoria. We'll probably have 3 in Victoria very soon. But it is a case of constant engagement, and we've got a team of people who are constantly meeting with those customers. In terms of the second part of your question, revenue, it will be second half of the year. It will be very back-end loaded.

And just to confirm, so the broader release was second half of financial '26. Is that...

Yes. So essentially, the final first release, if I can put it that way, we'll see light of day in about 90 days' time. And then the production release will be probably another 90 days' time after that. So we're getting the solution into the hands of customers very early.

And just in terms of the monetization model, Tony, I know obviously, in New Zealand, to be frank, you've probably been hamstrung by the products you sort of started with there a little bit. How should we think about the difference in monetization model and potential monetization in Australia versus in New Zealand?

It will be a hybrid. So I think in New Zealand, as you say, we've been a little bit constrained by some of the heritage issues. And I think as we've seen during COVID, it's been very much a transactional model. During COVID, everyone sat at home and designed a background for their house and submitted the plan to council, whereas we've seen -- it isn't post-COVID. I think the bigger issue in New Zealand has been the state of the economy, which has pushed transactions down. But much like a downdraft, it doesn't go into the ground. It just sort of goes back to long-term trends. So I think New Zealand is showing signs of the green shoots, as I say, and plus new customers coming on to the platform, plus the change in the billing environment in New Zealand, but it's still a transactional system at the moment. There's various other -- there are going to be more revenue opportunities in New Zealand through remote inspections, swimming pools, building warrant and fitness. So these are all additional opportunities for revenue in New Zealand on top of what we're currently doing. We've got a big investment going on with resource consenting, which is a new consent type in New Zealand at the moment. So I think the historical numbers that we've talked about in New Zealand will soon start to become a much larger addressable market. But we are probably constrained by that transactional model. Here in Australia, it will be based on a platform fee for the councils and a transactional model. So we're trying to get the right balance between who pays and how they pays and I guess, underpin a little bit of the revenue from our side. But ultimately, it's still weighted towards the transaction value because that's still -- and we are indexed to the cost of building, which we know is -- there's only one way with building, which is up. And so I think over time, that will still work out to be -- we need to make sure that we align value for the customer with what they're being charged.

Got it. And just in terms of the actual implementation process. So for new customers, and I know the foundational customers are different, but say once you get post the 2 periods of 90 days, for those that already have Trapeze, is it a lighter touch implementation that's in there? Or how should we think about the implementation and I guess, the friction point for onboarding this product for a council?

In truth, I don't know yet. I only say that we've got -- here in New South Wales, we're integrating with the planning portal, and that's got its own idiosyncrasies. I think on top of that, we've made great strides in New Zealand, what used to take -- what used to take 2 weeks now takes 2 days. I just don't have data to give you a number. But we will be using the same techniques as what we've used in New Zealand, but it should be a fairly optimized process.

Got it. No, that's great. And just second part, just you mentioned there's quite a few of the large contracts, both across Content and RegTech that are in process at the moment. I assume some of the ARR from that isn't registered within the 30 June numbers until they go online. Like how should we think about some of those projects that you've won more recently in the last couple of months in terms of what was sort of this side of 30 June versus what's the tailwind and sort of kicking you off into '26?

Yes. In all cases, where we're billing a customer, it's included in ARR, as you would expect.

Yes. So just -- I'm just getting -- so as soon as the implementation period starts there. Yes, okay.

Look, unless for some reason, the implementation period hasn't started. But if we're billing a customer and the customer is paying us, it's included.

Yes. Got it. And just final one really quickly, Tony, just around the, I guess, defense and a few other things like that. There's a number of big tenders coming up in the markets. Just more broadly, defense specifically broadly, federal government and government spend in Australia. Could you make a few comments on the outlook environment for that and how you guys are positioned?

Yes. Look, I think there's a lot of commentary in the press about government spending. We haven't seen that impact us. So I think when I say government spending, I'm not saying government spending on IT. I think there's -- there are -- there is a push to -- in some areas to rightsize some government agencies. But at the same time, there's still push to create new agencies, consolidate agencies. I mean it really -- I've seen no real impact.

Tony, the next question come through in text, which is from Wei Sim at Jefferies, which is that the ARR growth this year seems stronger than the revenue growth and just how we can explain the gap there and how we translate ARR growth into next year. Maybe I'll just take that one. I just keep going.

Go ahead.

Wei, the ARR growth is always -- so there's a few things that play into this. The ARR growth is the figure at the year-end. And so I think as we have highlighted through our half year result, there was a second half skew in the bookings for ARR. And so that will obviously not contribute to revenue until later in the half, and that's what drives the recognized revenue number. This year also, we made the conscious decision to reduce the services revenue -- to continue to reduce the services revenue. And you'll see that that's actually declined year-on-year. That's what's moderating the headline growth number. But going into FY '26, the services revenue is no longer going to be a downdraft. It is not going to grow at the same rate as ARR, which should probably best think of it as largely flat year-on-year. But the subscription revenue growth is obviously going to more closely reflect the ARR growth. So the next question is from Sinclair Currie. I'm just going to invite him on stage.

So Josh, if we want to…

I'm not sure if it's going to work for Sinclair, but his question is, is accessing the AI functionality a factor which is driving customers to shift to Nexus?

So what was the first bit?

Is the accessing of AI functionality a factor which is driving customers to shift to Nexus?

Yes, great question. Not yet, but it will because we're really only making the AI capability available on the Nexus platform. I think as you see the use cases in the public domain of where people are getting fantastic results using Objective Intelligence with 3Sixty and Nexus, it will drive not only existing customers, but we believe a whole range of new customers as well for that platform. I think there's -- again, if you're well researched and have in AI, you'll appreciate the issues not necessarily about sovereignty, but just around public cloud and government data, they're not happy bedfellows. And here at Objective, we have a solution for that.

The next question is a follow-on question really from Wei. I mean it is something you addressed through the presentation, but just the Isovist-- is the Isovist included in the growth for this year and what contribution did it make?

Yes, that was covered on one of the earlier slides. It's roughly AUD 2 million.

Okay. Thanks. This is a question from Christian Angelis from Blue Ocean Equities. It says congratulations on the Scottish Government contract. Is that in the ARR number? And how do you expect the deployment to track given it's much larger than Nexus onboardings to date?