Good morning, ladies and gentlemen, and welcome to the Nearmap Ltd First Half for Year 2022 Results Briefing. My name is Laura, and I'll be your operator today. At this time, call participants are in listen only mode. Following opening remarks from presenters, there will be an opportunity for a question and answer session. If you wish to register a question, please press star followed by one on your phone. If you wish to cancel your registration, you may remove yourself from the queue by pressing star two. If assistance is required at any time, please press the star followed by zero on your phone and wait for a conference call coordinator. Please also note that this call is being recorded. I would now like to turn the call over to Dr. Rob Newman, Chief Executive Officer and Managing Director of Nearmap Ltd. Dr. Newman, please go ahead. Thank you, operator. Good morning and welcome to the Nearmap first half FY 2022 results conference call. I have with me Andy Watt, our Chief Growth and Operations Officer. Joining us now, Penny Diamantakiou, who's recently been appointed as our Chief Financial Officer. I'll begin by speaking to our first half results, then pass to Andy to delve deeper on the numbers before I then outline the outlook and priorities and take any questions from the participants on the call. Nearmap has delivered yet another exceptional result. In the first half of FY 2022, our company delivered record incremental annual contract value growth or ACV. This was both at the group level and from our North American portfolio. We're no longer talking about validation of our vertical go-to-market strategy in North America. This strategy is now well and truly embedded into our organization. To be delivering 62% ACV growth from our core North American verticals of roofing, insurance, and government on the prior corresponding period is exceptional and a testament to how well this strategy is working. Last year, I spoke of the strong operating leverage we have in our business, and this result continues to reflect that leverage. Our key metrics are at levels that any software business would be envious of. Whether it's record levels of incremental ACV growth, average revenue per subscription, or access to premium content, our key indicators are nothing short of outstanding, and particularly in North America. We are consistently winning new customers and upselling existing customers because our content is not only best in class, it is more reliable than anything our competitors can offer. This provides our customers with the certainty that they need to grow their businesses. We've maintained a very strong balance sheet, closing the first half of FY 2022 with AUD 110 million of cash in the bank and no debt. Excluding the AUD 3.6 million of litigation expense, Nearmap has consumed only AUD 9 million of cash in the first half. This was during a period where we increased our investment in support of our leading research and development initiatives. This ensures we continue to maintain our market leadership position and deliver new and valuable content for our customers, further embedding our content into their workflows. In North America, we generated positive cash flow for the first time as a major milestone. In addition to our profitable and cash generative ANZ business, this puts our company in an incredibly strong cash position. We will continue to manage our cash balance in this selective and disciplined way. Looking beyond the strength of our ACV and cash position, in the first half of FY 2022, our business achieved a number of significant milestones, and there are three in particular I would like to call out today. First, we have moved successfully from completing the design of our next generation world-leading aerial camera system, HyperCamera 3, to the testing phase, which took place during the half. During this phase, we've been optimizing the camera system and its different component parts at varying altitudes and in varying conditions so that the camera system can deliver the maximum efficiency possible. The outstanding work from our leading team of camera system engineers means that we're now well underway in the process of commercially manufacturing custom components, which is a significant milestone in the process of incorporating HyperCamera 3 into our capture program. More on that later. Also in the first half, Nearmap AI delivered significant enterprise ACV growth, both from new customers as well as upsell to existing customers. The fact that very large enterprise customers in North America, particularly in the insurance industry, are signing enterprise contracts and subscribing to Nearmap AI is a validation of the investment that we have made into this industry-leading content. We have continued to invest in Nearmap AI, and as we've outlined before, we now have hundreds of attributes available. Product development of Nearmap AI has now shifted and is no longer about the number of attributes we can identify. That race has been run. It's now about investing in the systems and processes to be able to embed Nearmap AI into our customers' workflows. Nearmap AI represents an enormous opportunity to grow our North American portfolio, especially within the core insurance and government verticals. It's also about increasing our capabilities in change detection and post-catastrophe. Gen 5 is the next iteration of Nearmap AI and something I believe will help continue to drive our strong ACV growth. Finally, without stealing too much of Andy's thunder on the numbers, Nearmap delivered 76% PCP growth in the roofing vertical, with most of that growth achieved in the last six months. Roofing ACV now comprises more than 10% of our North American portfolio. When you consider this does not include ACV generated by our insurance roof geometry partner, we have experienced phenomenal growth since integrating this industry-leading technology into our business. Our strategy of partnering with market leaders in roofing and insurance solutions leaves us well-positioned to drive further acceleration of ACV growth, particularly from roofing. Before I hand over to Andy to take us through the financial highlights, I wanna make some brief comments about the litigation in the Utah District Court. As outlined in today's results, we continue to believe the allegations made against us are fundamentally without merit. The litigation continues to have no operational impact on our business, as demonstrated by the 57% ACV growth in North America that we reported today. We will continue to vigorously defend against these litigations and believe this is purely motivated by the commercial success that we are experiencing in North America. Although the litigation is unrelated to the vast majority of the content that we deliver directly into our customers' workflows via an API or Application Programming Interface, we will continue to defend our company and our shareholders against these meritless allegations. With that, I'll hand over to Andy to dive deeper into the numbers. Andy, over to you. Thanks, Rob, and good morning, everyone. As Rob has already mentioned, the first half of FY 2022 has yet again seen strong performance across the financial metrics we benchmark our business against, and demonstrates the increasing operating leverage within our unique subscription business model. Our vertical strategy in North America is now firmly embedded into our organization, and I'm extremely satisfied with the strong and improving growth that we're now delivering across our North American portfolio. I'm also pleased to see an improvement in our incremental ACV growth in Australia and New Zealand, despite a period where many of us on the east coast of Australia and in New Zealand were confined to our own neighborhoods. The resilience of our business model, the ability to provide certainty in uncertain times, the reliability of our content, these are all the reasons I'm standing here today delivering yet another set of financial record results. We've come through the first half of FY 2022 in a very healthy position, and I'll now talk to this in further detail. I'll begin with an overview of our key operating and financial metrics as shown on slide five of the accompanying investor presentation. Our primary metric, ACV, grew to AUD 147.7 million as reported, and on a constant currency basis grew by 28% to AUD 143.3 million. This represents record incremental growth in the half of AUD 16.5 million in constant currency, driven by that record performance in North America. As you've heard me talk about previously, the metrics that define the quality of our incremental ACV and the operating leverage that's within our business are just as important as the ACV itself. I would again point you to slide five, which clearly demonstrates the benefits of increased scale in our business. We've consistently said that targeting underlying retention greater than 90% is our goal. In the first half of FY 2022, this was 94%, and retention rates at this level demonstrate the success that we're having in not only retaining our growing customer base through the continuing improvements in our product and customer success offerings, but also the positive impact of delivering deeper vertical solutions that embed our content more deeply into customer workflows. By now, most of you will be familiar with our sales team contribution ratio. This is the key metric we use to evaluate the productivity and efficiency of our sales and marketing team. It provides a guiding light as to not only the efficiency of the team, but also when to adjust investment into our sales and marketing efforts. With the record performance we experienced in North America, we delivered a 97% contribution ratio for the group in the first half of FY 2022. For the third consecutive half-year period, the contribution ratio exceeded 100% in North America, delivered once again at a time when we've been investing into our sales and marketing efforts. This really demonstrates the strong operating leverage within our business, the returns we can generate from our content, and the future growth opportunities that we can generate from our growing portfolio. The final ratio to call out from slide five is the pre-capitalization gross margin, which as a reminder, reflects the efficiency of the capture program relative to the size of the revenue base. As you will note, there's been a reduction from 77%- 73% on the prior corresponding period. Again, as a reminder, in the first half of FY 2021, we optimized the cost base of our capture program through a combination of scale efficiencies and a targeted coverage plan as part of COVID-19 cash management initiatives. In the first half of FY 2022, we announced an expansion of our coverage to 80% of the population in the United States. It's this step-up in coverage, driven by customer demand, that accounts for the change in gross margin. As also outlined on slide five, and something Rob touched on earlier, during a period of investment in the business, we've maintained our balance sheet strength and disciplined cash flow management. In the first half of FY 2022, we consumed only AUD 9 million of cash, excluding costs related to the litigation in the Utah District Court. This cash investment was largely in support of our R&D initiatives. We're in extremely healthy financial position with AUD 110 million of cash in the balance sheet and no debt. Our balance sheet strength will allow us to continue deploying capital into our FY 2022 growth initiatives in a disciplined manner, and I'll let Rob talk to those initiatives in more detail shortly. Before delving more deeply into our business performance, I would like to call out one financial milestone as shown in slide six. Premium content uptake continues to grow, and we now have 70% of our ACV portfolio tied to customers who are accessing our premium content. That's more than AUD 100 million of our portfolio who are accessing widescale 3D, oblique, AI, and roof geometry content that our competitors, particularly here in Australia, do not offer. We'll continue to help our customers understand the value that this content delivers, and our ambitious goal is to eventually have our entire portfolio accessing our premium content types. Moving to cash flow on slide nine, the trend that you see on the chart is significant. Record ACV performance and growing operating leverage saw North America deliver positive cash flow for the first time since our expansion into the region. A positive contribution of AUD 7.2 million for the half and AUD 28.9 million from the ANZ business delivered total segment cash flow surplus of AUD 36 million. We maintain a heavy focus on cash discipline and driving growth and improving cash returns from each of our operating segments as we continue to scale our business using the substantial capital resources that we have at our disposal following the September 2020 capital raise. Strong business performance translates to strong statutory results, as shown in slide 10. For ease of comparison, I'll talk to constant currency in this section, except for the litigation where there is no PCP. Revenue growth of 24% was delivered by that record expansion of the North American portfolio we've talked to. As we're in a period of investment to build out and support our North American strategy, operating expense growth of 29% on the PCP reflects the step-up in those investments. There's been a 45% increase in headcount across all functional areas in support of this strategy, which will further enable us to build out our scale and increase operating leverage. As Rob called out earlier, we incurred a litigation expense of AUD 3.6 million in the half, which directly contributed to a reduction in EBITDA from AUD 30.5 million in 1H 2021 to AUD 10.9 million in 1H 2022. This also impacts EBIT, with losses increasing from AUD 9.4 million in the first half of 2021 to AUD 13.3 million. Also NPAT, which went through a loss of AUD 9.4 million in the first half of 2021 to AUD 11.9 million in the half just closed. I'll now move to our segments beginning on slide 14. The main driver of growth was the repeated record performance in North America. We saw incremental ACV grow by $10.6 million in the half. This compares to $6.3 million in 1H 2021 and $2.3 million in 1H 2020, a material step change in growth. That growth has been driven by our core verticals, insurance, government, and roofing, which deliver a combined 62% ACV growth on the PCP, driving overall North American portfolio growth 57% higher. These three verticals now make up 71% of our North American portfolio, with insurance alone at almost 40%. Our growth through these verticals means that there is a robustness and defensibility that was previously not as evident. Our key efficiency and retention metrics are also in excellent health in North America. 12-month retention rates above 95% and a Sales Team Contribution Ratio of 114% are metrics which clearly indicate how well we are executing our strategy. We've also seen another significant step-up in average revenue per subscription, with growth of 29%, demonstrating the increasing value. The average contract size we sign has a subscription value of more than $22,000 US dollars or AUD 30,000. The ANZ business, per slide 15, further enhanced its market leadership position with a step-up in incremental portfolio growth of AUD 2.8 million in the half, representing 8% growth on the prior period. Pleasingly, this was the highest incremental ACV growth since the second half of FY 2020. New business of AUD 3.2 million demonstrates continued penetration of the ANZ market and represents 39% PCP growth. SME and mid-market segments also continue to perform well with an encouraging improvement in enterprise. An STCR of 55% and retention of 93% demonstrate an improved half-on-half performance and will continue to optimize our sales and marketing efforts to increase further growth opportunities in the ANZ region. In closing, 1H 2022 has seen yet another strong performance across the metrics we benchmark our business against, reflecting the strength of our underlying business model and the rapid scaling and operating leverage within the North American business. We're delivering on our growth aspirations, we're delivering returns on our investments, and we're executing our successful go-to-market strategy. Nearmap has had an outstanding half-year performance, and the momentum in our business leaves us in an incredibly strong operational and financial position. Before I hand back to Rob to discuss what this means for the remainder of FY 2022, alongside me is our recently appointed Chief Financial Officer, Penny Diamantakiou. Penny joins Nearmap with a background of extensive leadership experience working at high-growth digital and technology-led businesses. Penny and I are already working very closely together to ensure a seamless transition of the group finance function, and you'll see and hear from Penny in the investor engagements over the coming days. Rob, back to you. Thanks, Andy. I also would like to reiterate Andy's remarks in regard to Penny. Really excited to have Penny on board, and looking forward to working closely with you as we grow our company over the coming years. On to our priorities and outlook, which is on slide 20. We will continue executing on our successful go-to-market strategy in North America, adding industry specialists and targeted marketing programs into our core growth verticals. We now have the operational systems and data in place to support that go-to-market strategy. It's about using those systems to our advantage. Capitalizing on our improved performance in Australia and New Zealand is also important, and we target further adoption of our premium content types in this region. All of this will drive increased operating leverage in our business and drive return on investment from our unique product and content types. From a technology perspective, we're focusing on completing HyperCamera 3 prototype testing and the initial HyperCamera 3 manufacturing in the Q4 of this financial year. As we've said before, given the scale of the opportunity in North America, initial deployment of these systems will be focused on that significant opportunity in that region. This can enable us to both improve our capture efficiency as well as open up new use cases which require higher resolution content types by flying at altitudes that are currently flown by HyperCamera 2. I am extremely proud of our team for their amazing achievements to date, enabling us to extend our already industry-leading technology position. Our other priority remains focused on our technology leadership, and that is in Nearmap AI. We continue the development of customized Nearmap AI packs and tailored industry solutions for our core government and insurance industry verticals, where we're seeing the strongest interest and adoption of those premium content types. We're also anticipating beta release of our first government industry-tailored solution, delivering on our commitment to go further up the value chain and offer not just content, but solutions to our customers. We will do this in this half. We will continue the enhancement of our industry-leading roof geometry content to capitalize on the phenomenal growth we're experiencing with that product. Now to our guidance. I'm pleased to provide an update to the guidance range that was set at the time of last year's annual general meeting or AGM. Our group ACV portfolio is now expected to close FY 2022 at the upper end of the AUD 150 million-AUD 160 million guidance range that we set at the AGM based on constant currency. This is a significant increase from AUD 128.2 million in FY 2021, and it's been driven by the record growth that we've experienced in North America in the first half. We expect to consume up to AUD 30 million of proceeds generated by the capital raise, which will continue to be deployed into the FY 2022 growth initiatives I've just outlined. We've always said we will be consuming cash through FY 2022 and FY 2023, with a turn towards cash generation in FY 2024. Cash consumption in any period depends on the growth in that period, as we've demonstrated today, and we will continue to have success in growing our portfolio and therefore maintaining a very strong cash position. To be clear, we have the cash resources to continue the growth path we're on. We'll continue to target 20%-40% ACV growth in the medium to long term and underlying retention at greater than 90%. Evaluation of geographic expansion will continue, but for now, our focus remains on accelerating growth from our North American market and extending our market leadership position in Australia and New Zealand. The market opportunity in North America remains significant for our content. In closing, Nearmap has had an exceptional half of growth, delivered by a passionate and committed team of people who continue to inspire me and our whole executive team every day. We are well-positioned to capitalize on the momentum in our business, and our investment and innovation will ensure we are increasingly valuable partner to our customers. I am confident in our growth outlook given the significant opportunity in front of us. With that, I'll now hand back to the operator for any questions. Thank you, operator. Thank you. As a reminder, ladies and gentlemen, if you wish to register a question, please press star followed by one on your phone. If you wish to cancel your registration, you may remove yourself from the queue by pressing star two. Our first question today comes from Garry Sherriff at RBC. Your line is open. Please go ahead. Hi, Rob, Andy, and Penny. A few questions. Firstly, just on the roofing improvement that you saw in North America. Did you state that it was now 10% of the North American portfolio or the group portfolio from an ACV perspective? Hey, Gary. Yeah, thanks for your question there. Yes, 10% of the North American portfolio. So again, strong growth in the half period, really validating the investment we made into our roof geometry product and pleasing to see our partners continue to grow, as our business grows. Got you. I guess the follow-on question from that is, the EagleView litigation is solely in relation to the roofing part of your business. Is that, I guess I know. Sorry, let me take a step back. That's growing really well in North America. The litigation is all around the roofing geometry. Is there some concern, I guess, that it's growing at such a solid clip that that might now make you a little bit more exposed, i.e., it's now a material part of your business if EagleView is successful? Thanks, Garry. Look, I'd say I think the indication is actually the other way around. The fact that we grew in the second half after the litigation was filed indicates that our customers, which are really partners of ours, and then their customers see incredible value in the technology that we provide, and that it's highly differentiated from the solution that EagleView provides. To be very clear, and I think we made this clear, a couple of weeks ago, to be very clear, the litigation against Nearmap is not against the roof geometry content type, which we provide to our partners who then produce roof reports for the insurance and roofing industry. Again, as I said in the commentary, we believe the litigation is meritless, and it's really EagleView's only tactic to try and slow us down in market. You don't get growth like that in North America without us having a superior product and a product that is well clear of any technology or IP they might have. No trouble. HyperCamera 3 system sounds like it's all on track. Just wanted to clarify, are there any risks of supply chain issues for componentry that you're working on for those new camera systems? Was that Q4? I think it was manufacturing you referred to. Was that, sorry, Q4 financial year or. Yeah. Q4 calendar year? Yeah. No. Thanks, Garry. Good question. First of all, to clarify, yes, Q4 fiscal, so that is in the June quarter that we will be manufacturing the first of those systems. Yes, to the kind of other part of your question, which is supply chain issues. Look, we had expected to build all seven of our first systems by June 30th, but we'll probably not achieve that full number by June 30th due to supply chain issues. We've had manufacturing facilities shut down due to COVID cases in them. Obviously the electronic component parts are harder to get. Now, having said that, all parts are ordered, all parts are coming to us. There is some delay in building up all seven systems. Confident to have the first systems operational before June 30th, but not all seven by June 30th. Got you. That makes sense. How many? No longer seven. Are we thinking, what, four or five? How many do you think by the end of June? Oh, no, look, we're probably talking the first couple operational by June 30th, and then the rest to roll out over the next couple of months after that. Look, it doesn't have a material impact. You know, as you know, Garry, the majority of our capture program in North America hits in the spring period. We'll be able to achieve our objectives for the first half of FY 2023 with the HC2s we already have, plus the smaller number of HC3s. As we hit the spring period, very confident we'll have all seven systems operating. Thank you. Last question on the premium content. You mentioned that it looks remarkable, the penetration you've had. Just wanna clarify, when you say that AUD 103 million of ACVs from customers using premium content, sorry, is it using premium content or they simply have access to it, they're not actually using it? I just wanted to get that clear differentiation. Yeah. They will when we say have access to it, they almost all those customers on, actually all those customers will also use it. They may be using imagery and AI or imagery and 3D or so on. There are customers that are just using premium content without using imagery. The distinction is if you're part of the, you know, if you're part of the set that doesn't have access to premium content, you're only using imagery. Yeah, they have access to it, and by and large, they will be using that premium content. Very good. Thanks very much. Yeah, thanks, Garry. Thank you. Once again, ladies and gentlemen, please press star one to ask question. We'll now move on to our next question today comes from Suraj Amit. The line is open. Please go ahead. Thank you. The first question is just on the cash burn. You're retreating guidance of AUD 13 million cash burn in FY 2022. It does look like first half cash burn is lower. Can you just talk us through the step-up in the second half and how we should think through that? Yeah. Hi, Suraj. Good morning to you. Yeah. Look, we're very pleased with the cash position that we have in our balance sheet. Obviously, from the capital raise through to here, we've got a very specific and deliberate investment plan in place, investing in growth initiatives in our business and our disciplined approach to cash management and driving returns. You can see through the cash position of our business through the first half. AUD 9 million of cash consumed on normal business operations in that first half. Look, that's very much aligned to the plan that we set back when we raised the funds back in September 2020. You can see through the cost base that we have stepped investments across certain areas, and obviously there's gonna be a run-through of some of those costs through to the second half of the business. Very much on track to deliver against the plan that we set. That AUD 30 million cash burn for the half, excluding litigation fees, is something that we feel very confident that we'll be delivering to. Of course, we're helped by our ACV performance, which continues to grow at record rates, and that's obviously helping our position there. The plan very much being delivered to, and our disciplined approach to cash management showing itself in the balance sheet. Andy, sorry, just to dive into that. I mean, it does imply that your cash burn's gonna sort of double in the second half, right? I mean, I get, I guess that the two new HyperCamera 3s will be a factor. Anything else, is it just the hires that you made in the first half, or should we assume there's a bit of. Yeah. Yeah, no, it's a combination of those factors. As Rob said, you know, the second half of our financial year is the biggest capture period for us out of North America, that's spring capture. There's a slight increase in the capture costs. There's the HyperCamera 3 investments that we're continuing to make. There's the run through of costs that we've seen through the hiring and some of the investment initiatives through the last 12-month period that then runs through. All very much, as I said, on track and on plan. Got it. The legal costs, the AUD 4.5 Million cash in the first half, is that. How should we think about the cash burn from that or the cash costs from that forward? Yeah. Look, it's given that the legal case is still, you know, going through the process currently. It's difficult to give an absolute number on what that will look like over time. Yeah, AUD 4 million in cash in that first half. We continue to, you know, manage that process, and we're well capitalized to manage the legal process through to its conclusion. It's difficult to be specific. It just depends on the pace that the legal case takes, and obviously, we'll know more about that as time progresses. Got it. Last question from me. Just regarding, you know, your guidance for ACV, and the strong performance in the first half, any reason why we should think the incremental ACV in the second half will be lower than the first half? Is there any seasonality or anything that we should think about? Thanks, Raj. Yeah, Rob here. Look, I think, as you know, and you're seeing it actually in our results, you know, we're closing significant enterprise deals. These are significant size and a significant number of them now. Whether it's the average revenue per subscription in North America, the increasing percentage of our top ten customers as part of the overall portfolio, you know, large enterprise deals are an important part of our overall ACV growth. I think it's important to recognize that, you know, timing on a large deal can impact a half. We're very confident that yes, we'll be in the upper end of that guidance range, but also just need to be cognizant that large deal timing on large deals can impact exactly you know whether they land in FY 2022 or FY 2023. Rob, just one follow-up on that. I mean, the fact that you've expanded the capture program in the U.S., I mean, it's just towards the latter part of the first half, I think. The benefit from that, is that in your first half ACV number? Like, have clients upgraded on the back of that or is that yet to be seen? No, not really. I think the most of the drive for the upsell has been through the premium content. So Nearmap AI has been a significant contributor to upsell during the first half and actually bringing some new customers to Nearmap, as well as the ImpactResponse or post-catastrophe product as well. You know, premium content and our new solutions are really driving growth. Increased coverage, you know, once we have a customer and they go, "Great," you know, going from 60%-70% for three-day coverage or 70%-80% for two-day coverage, you know, those things do drive some incremental demand. But really, it's the premium content that's the most significant contributor to growth. Yeah. Thanks, Rob. Thanks, Andy. Yeah. Thanks, Suraj. Thank you once again, ladies and gentlemen. If you'd like to ask a question, please press star one. We'll pause for just a moment for further questions to be taken. We'll now take our next question. Today comes from John Campbell of Jefferies. Your line is open. Please go ahead. Thanks for that. Thanks, Rob and Andy, for taking the questions. Just a couple quick ones I think. Excuse me if you sort of answered some of these. Firstly, just on the 18% growth in average revenue per subscription, is this largely due to larger customer wins in 1H 2022 or greater usage of premium content or both? Hi, John. Yeah. Look, good question. The short answer to your question is both. You know, the adoption of premium content has been a significant contributor to upsell. I think we've talked in the past that often with our insurance customers, if they've already got access to imagery, it's often a kind of 100% upsell if they or thereabouts approximately if they have access or get access to Nearmap AI as well. That can be a significant contributor to Average Revenue per Subscription. But also quite simply, we brought some new customers to Nearmap that, you know, significant enterprise customers to Nearmap that were not previously customers of Nearmap. That also has helped the Average Revenue per Subscription move up materially. You know, and I think you can kinda see in our business the types of customers we're going after. We should see average revenue per subscription remain a strong metric for us. Yeah. Theoretically, you know, more enterprise customers going forward, more premium content adoption, although it sounds like that's getting to pretty good levels now. Theoretically, you'd expect average revenue per subscription to continue to grow going forward at the group level. Yeah, look, at the group level, and particularly also in North America, we can see pretty clear path to that increasing. As Andy mentioned in his remarks, based on what we're doing, you know, some of the changes we're making in helping introduce premium content here in Australia, we should see that also trend up over time. Might take a little longer to have the same growth rate as North America, but we should see both markets have ARPS improving. Yeah. Okay, thanks. Rob, just on your commentary around sort of the investment that you've made in the AUD 30 million investment that you are making in FY 2022. You've alluded to FY 2023 as sort of. Well, I don't know if you actually said a similar spend, but before sort of cash flows starting to turn up in 2024 as that growth investment tails off. Could you just give a little bit more clarity around the 2023 spend, what we could expect? Yeah. Look, we haven't given specific guidance on cash spend in 2023, and I'll give you the reason why. Basically what we did is when we did the capital raise in September 2020, we said there are a series of initiatives that we want to invest in, and you're seeing the benefits of those today. The technology investment, the HyperCamera 3, Nearmap AI, HyperCamera 3 from a technology point of view, the investment in our go-to-market in North America, and then building and scaling our systems behind all of that. We've stuck to that kind of consistent investment profile. You know, we have very good visibility of how our investments will roll out over the next, you know, through 2023 and 2024. What you're seeing then is it's driving very much the top-line growth. The amount of cash consumed, as Andy was alluding to, really depends upon the top-line growth. We've had an incredible first half where we've had significant top-line growth and great cash receipts as a result of that, and therefore, cash consumed was quite low. Under all scenarios, we see that, you know, in FY 2024, we turn from being cash consuming to being cash neutral or cash generative. You know, I think that's significant for us. In terms of the exact quantum of cash consumed in any one particular half, we have a very good handle on our expenses. It really depends on, you know, us continuing to drive top-line growth. Yeah. Really, are you alluding to FY 2024? You've largely made the HyperCamera 3 cash spend. The AI cash spend is probably. I mean, I'm sure you'll continue to spend, but it's probably the hump is over. We're only talking about essentially the go-to-market spend, which you can flex up and flex down, depending on what it's delivering. Is that sort of what you're referring to? That the technology spend. Yeah. Has probably been more than largely completed by that stage? It's probably a little different to that, John. If you think about it, what we've done is we've had a step up in our investment in R&D, and you see that in the G&A line in our segment note. That's where the step up has been. What you'll see now is that we've kind of got the right level of investment in R&D, and that won't grow significantly. We'll still be making investments in technology advancements, still making investments in new product and content types and in new solutions, but we don't have to do that step change in R&D that we have done. You're right, John, in the second part of your question, which is, as our top line grows, that allows us to flex our sales or our go-to-market investments, based on the Sales Team Contribution Ratio. You will see that. You know, that's why we have confidence in the turnaround in FY 2024. Yeah. Okay. Last question. Yeah. I guess or just adding on from that, I guess you've made a material commitment to your three North American verticals. No doubt that required, again, a sort of a step change in your sort of go-to-market spending, if you like. I presume by FY 2024, even though that total spend probably continues to grow, the trajectory levels off 'cause you've sort of well and truly established yourself in those three verticals. Yeah, that's about right, John. You look, again, that go-to-market investment that we've been making over a period of time, driven by contribution ratios. Where we're seeing the investments and seeing the returns, as you know, that's our barometer to investment. To your point, as we continue to roll out new product, new content, that enables our go-to-market teams to sell more deeply into customers, and obviously, we see the returns from that. You are right in your comments previously where, you know, some of the investment in our business, the run through of our R&D expenditure, the step-up is largely complete. The only key variable component then to our cost base largely becomes that sales and marketing investment, and we continue to drive productivity and efficiency through those teams, when we see Glenn instead of all those returns. It's a very simple approach, but you've seen it work very well in the past, and we do expect that to continue going forward. Yeah. Thanks, Andy, and thanks very much, guys. Thanks, John. Thanks, John. Our next question today comes from Wei Sim at Macquarie. Your line is open. Please go ahead. Thanks, Rob, Andy, and Penny. Thank you for taking my questions. I've got two. The first one is just in regards to premium content. I'm just trying. I'd like to kind of like model this out a bit better. I'd just like to better understand, in terms of premium content, what kind of uptick do we see on a revenue you know contribution percentage per customer when we do see customers go from I guess non-premium to premium content? That's the first part of the question. Also just, you know, when they do this, is it usually that they take certain packages and they try it out and dip their toes first, or do they usually just go premium for all the content? Yeah. Hi, Wei. Thanks. Good questions. Look, it very much depends on the customer as to how they progress through you know, through the kind of sales process. Sometimes it might be that they might start with a fairly significant imagery contract, then test a bit of AI, and then do a full upgrade to you know, commercial use of AI. Sometimes they'll just go straight there. We have customers who use our premium content without necessarily our imagery as well. There's no single answer to your question. I guess the best kind of indication I could give you would be to say you know, when a contract stabilizes and our customer's using imagery and Nearmap AI, it's probably a 50/50 split between the two. Now I think that might change over time, that AI actually becomes a bigger contributor to it. Certainly at this stage where they've kind of got commercial use of imagery, commercial use of AI, it's about a 100% step up from just an imagery, pure imagery contract. You know, it's not always the case, and there are cases where I'd say they'd have very little imagery usage and a lot of AI usage and vice versa. Okay, great. Thank you. That's helpful. The other one is just, I guess the cost associated with creating premium content. You know, how should we think about, I guess the margin mix or the margin enhancements of, you know, if we're just to sell, say, non-premium versus premium content? Yeah. Look, the cost of capture are the same, as you know. Our capture program enables us to create not just the 2D content but all the premium content types as well. There's no incremental cost to us in terms of the capture and necessarily the creation of that content. The investment that we make into our business is, as Rob just spoke about a minute ago, through the R&D teams that we have within our organization. You've seen a step change in that investment over the last 6-12 months. Those teams are continuing to build out not just again the commenter said, not just more attributes, but it's about how do we then provide greater value on top of those attributes through our AI content and deliver those returns. The investment in the R&D capabilities in our organization in terms of the product and the camera systems enabling us to drive strong returns. Pleasingly, we're seeing those returns already in periods, so it's not as though it's all future dated. We're seeing returns currently, but we expect that the investments we've been making to date will continue to drive increasing returns over the coming years as well. That's both through our North American business, but also through our Australian business where that premium content adoption is still at a relatively early stage for a lot of our customers. That gives us a great opportunity to drive further into that market as well. Okay. Understood. Maybe just the last question is just regarding the ACV from customers with access to premium content now reaching AUD 103 million. Are we able to kind of give color as to, you know, how much of that is actually that they're paying for premium versus non-premium content? Just wanting to understand. Yeah. Maybe the upside, if we yeah. Yeah. Look, it's a common question, Wei, in terms of that breakdown. You know, we have customers who have access to multiple different content types and we give them an enterprise contract, and they can kinda draw down a certain amount of AI, or they can trade that off for some roof geometry, or they can trade that off for some imagery. So it is difficult for us to kinda give that breakdown by product just because of how our customers tend to consume the content, right? But again, back to your question about the AUD 103 million associated with premium content. By and large, I think this is similar to Gary's question as well. By and large, those customers that have access to premium content are making very good use of it. Certainly, as you can see more and more, you know, we're closing customers who are enterprise customers and are using our premium content in a commercial sense, not just playing with it or not just having it thrown into the contract. You don't pay a 100% premium on a contract to access the premium content, and then not use it. I think the important message here is the premium content is not only being sold but being used and accessed as part of their workflows. Okay. That's very helpful. Thank you very much. Yeah. Yeah. No, thanks, Wei. Thank you. Our next question today comes from Suraj Amit. Your line is open. Please go ahead. Just a few follow-ups. The first thing you might have mentioned this during the call, but regarding the government-tailored solution that you're launching, can you expand on that? Look, again, this is something we're going into beta. It's been in development actually for some time. We will have beta release of the product in this half. The early feedback from some customers that have seen this has been, you know, just. I mean, literally, I saw a guy with tears in his eyes. He said this is transformative to what he does, you know, one of our potential customers for this. But we are not announcing that specific solution. This is something that, you know, we don't wanna give other players in the market some insight into exactly what we're gonna do. Stay tuned, I guess, is my message that, you know, over the next few months, you will see this product released, and it's very exciting. I know we're gonna have some really good customer demand for it. Got it. Second thing, Rob, on ANZ, good to see a incremental ACV pick up, right? Can you just talk to competition in ANZ? Because you did have some down sales there in the enterprise customers. Secondly, given Andy, your comment about, you know, managing the sales team contribution ratio, should you be actually reducing the sales headcount here in ANZ? Let me pick up the first part of that, and then I'll let Andy pick up the second part of it. What we're seeing in Australia is, look, there is a competitor. As everybody knows, their solution, you know, doesn't match ours in terms of the quality of the product, the frequency of update, the reliability of the service, and that's just talking imagery, and there's no premium solutions available. I think what you've got to do is look at our business and how we're performing. As you can see, you know, half on half on half here, so three halves in a row, we have improved the performance in the Australian business. We know that our SMB and mid-market is very consistent engine and continues to deliver and continues to bring new customers to Nearmap. As we've mentioned before, we have some work to do to make sure that our enterprise sales team is really engaging at the right level with our enterprise prospects and taking our premium content to them. I see there's a huge opportunity ahead of us, which is probably a bit of a precursor to Andy's answer to your second part of the question around do you reduce the. Yeah. The headcount in Australia. That's exactly right, Rob. You've answered. You set it up well, so that continuing growth in our Australian business led by the SME business, but with enterprise beginning to pull through. We've said before that we see the Australian business as being a AUD 4 million-AUD 5 million a half run rate business. We fully believe in those numbers. As I alluded to in the answer previously, we've still got a way to go with the adoption of premium content here, which offers huge opportunity. We are seeing customer demand now begin to turn towards that, and that's content types that nobody else offers here in Australia, of course, as well. We stand with a very strong leadership position and with a very good opportunity ahead of us. Regarding the contribution ratio, yeah, we've always said between, you know, between 80% and 100%, that's where we believe we can get back towards. I don't think we need to change the cost base significantly within the Australian business. I think it really is about optimizing and tuning and driving stronger ACV returns, which will get us back towards 100%. We get anything between 80% and 100% on a portfolio size that we have is a strong return, as you know, Suraj. That's the path that we're taking. Got it. Last question from me. Just following up on John's question, right? Not looking for specific guidance on free cash flow into 2023 and 2024, but just the shape of free cash flows. Should we be thinking cash burn again in FY 2023 overall and then free cash flow positive in FY 2024? Is that the way we should be thinking about it? Yeah, that's pretty much right, Suraj. As Rob said, we're continuing with the investment strategy that we set. We can see the returns that we're delivering already and that we expect to see through our continued R&D investment, the investment in the go-to-market functions and the camera systems. We continue with that path. That means that there will be still a period of cash consumption through FY 2023, but turning cash flow positive through FY 2024. Given the AUD 110 million that we have sitting on the balance sheet today, that more than gives us the resources to drive that growth path forward. Andy Watt, just in that cash burn in 2023, is there anything about geographic expansion or does that come over and above that? Yeah, look, at this stage again, we're actively looking at opportunities potentially for overseas expansion. We said before, we'll be led by customer demand there. Any opportunities for us to move overseas would be backed by customer demand. There'll be certainly in the initial stages, you know, fairly low cash consumption, if any at all, for that expansion. Obviously, we would evaluate that opportunity as it arises and make those decisions then. At this point in time, yeah, no firm plans at this stage, still heavily focused on the North American opportunity and as we just spoke about how we get the ANZ business back to where we expect it to be. Got it. Thanks. Thank you. As there are no further questions, I will now hand back to Dr. Newman for some closing remarks. All right. Well, thank you everyone for participating in the call today. As you can tell, we are very confident in our business, and I'm proud of the team in the sense that they've been able to deliver very strong growth while carefully managing cash. We've been able to achieve that because of our North American strategy and operating model is now firmly embedded. Our premium products are a significant contributor to our growth, but we've been very disciplined in our investment and making sure we're getting the returns from those investments. Again, I think that's the key message today is strong top line growth, but done while carefully managing cash. Thank you everyone and hoping to get the opportunity to meet you all over the next couple of days as we start our roadshow. Thank you. Thank you. Ladies and gentlemen, this concludes today's call. Thank you for your participation. Stay safe. You may now disconnect.