Good afternoon, good morning, and warmly welcome to Basware's Q2 2021 Results Webcast and Conference Call. My name is Katariina Kataja, and I work as an IR Manager here at Basware. Today, here with me in the Espoo headquarters, I have CEO Klaus Andersen and CFO Martti Nurminen. I would firstly like to draw your attention to the disclaimer note. That we have in this presentation, and remind you that you can ask questions all through the presentation. Through the web chat, and after the presentation through the conference call lines. The questions may be also asked from this room here at Espoo. With these opening words, I would now like hand over to Klaus. Klaus, the stage is yours. Thank you very much, Katariina, good afternoon and good morning from me as well. A special welcome to the live audience. This time we have two participants in the room. Which I have to say, it's really nice to see. It's almost a little milestone in itself, that we can have an earnings call with a live audience. Thank you very much for coming. Q2 this year was a relatively good quarter for us. Top line growth, and profitability growth. Fully in line with our plan, and our expectations. New logo order intake is moving in the right direction now. We are seeing signs of recovery in all our markets. Activity levels with opportunities are going up. There is a sense of slight optimism, in our markets now. Q2 order intake was EUR 5.6 million, and half of the order intake, was coming from new logos. Our new logo performance this quarter was on par. With the best quarters, that we have ever had in Basware's history. The financial turnaround we have achieved over the last two years. Has now made it possible for us, to renegotiate the terms and conditions. On our existing loan facility, and we have achieved a cash flow benefit. Of more than EUR 12 million, over the duration of the loan, as a consequence of that. Let me dig into this quarter, to a little bit more detailed. Cloud order intake of EUR 5.6 million. Good contribution from all countries, all regions this time. EUR 2.8 million was coming from net new logos, and that was actually also relatively nicely spread, over countries and regions. The biggest contributor to new logo order intake was U.S. and France. All regions actually, closed new logo business for us in Q2. We welcomed 37 new customers on our list of customers. And 14 of them signed up, with significant services of above EUR 50,000 annual recurring revenue, each of them. Of course, varying from much higher amount to the lower threshold of EUR 50,000. Our biggest deals in the quarter were JLG in North America. It was Thales in France, and a no-name U.S. department store chain. A restaurant and hotel chain Groupe Bertrand from France. Besides that, we also signed deals. With names like Kraft Heinz in Australia, and Dennis Family Homes in Australia as well. A logo we all know, I guess, SeaWorld Parks also signed with us in Q2. As said, all countries signed new logo business in Q2. Which I think is a very positive trend. If we look at the, other part of the order intake. The net new logo amounted for 50% of the order intake, so EUR 2.8 million. Expansion business with existing customers was 38% of the order intake. And transformation business, was only 12% of the order intake in Q2. We saw increased momentum in our partner channels also in Q2. 17% of the total order intake, came through our sell-through channel, which is our reseller channel. That has been steadily growing, over the last two and half years. Coming from around 11% in 2019, to 13% last year. And now hovering around 17%-18%. Our sell-through partners, were involved in many of our net new deals. The three largest new logo deals, that we closed in Q2. Were all influenced by, partners in some shape or form. The previously announced partnership with PwC in Germany is developing well. We have a large ongoing project together with them. Which is also progressing according to plan. PwC are using that project, to build up their delivery capabilities on the Basware platform. On top of that, we have several new opportunities that has been identified. We are working closely together with PwC in Germany on these mutual cases. We also entered a partnership agreement with IT-P GmbH in Germany. It's a consulting company, specialized in implementation services. Around e-invoicing, and electronic invoicing connectivity. As you may recall, we expanded our partner strategy, w hen we entered this year. And we more thoroughly, included delivery partners or system integrators into our partner strategy. We are now getting more structure, around that part of our partner setup. We've established a partner council now with nine of our most strategic, and largest partners. It's a forum for two-way dialogue, between senior management of the partners, and senior management of Basware. We have already had two successful sessions in this forum, and it's a very efficient setup. To achieve better alignment between us, and our partners. We are able to have a relatively open, and direct dialogue with our partners in that forum. Which is very appreciated, which means that you can share best practices, and ideas. And concerns, and whatever, relatively freely. Even between the partners, they have sort of a very constructive dialogue. The reason why that is possible is, because there's actually very little. I would say, competition going on between the partners. Because they're spread very much, over the geographies in which we operate. Our partner governance model, and our partner performance monitoring. And tracking was also implemented in Q2, and this now includes, our partners' delivery capabilities, capacity and maturity. We are also tracking that now in line with the other things. That we were tracking before. To better support, especially the delivery partners. We have established in Q2, our Partner Center of Excellence. Which is a dedicated team inside Basware. We're supporting our partners, when it comes to delivery-oriented questions, and need for support. It has everything to do, with support in their delivery projects. To training needs or expert consultancy. That we subcontract into the projects, that they are running with our mutual customers. Five of our biggest resellers, have now signed up for dedicated reseller support. Giving them direct access, to a dedicated third line support team. With experienced technical Basware support people. And it's a service, that our partners are actually paying for. That clearly shows, I would say that our partners are serious. In wanting to build the relationships, and they're willing to invest in the relationship. In the same way, as we are willing to invest in the relationships. I'm very happy with the development, that we are seeing right now in the partner space. And we're getting more structure around the whole thing. Going to a couple of innovations, that we have launched in Q2. We enhanced our Supplier Management solution. With an extended set of diversity data from Dun & Bradstreet. This gives our customers much better visibility. Into small business within their supply chain, and helps them to meet their diversity goals. Which not all have, but a lot of them actually have diversity goals. When it comes to your supply chain. It also helps them to get easy access. To see if companies are showing up on any government control lists or like OFAC. Which is a trade sanction list from the U.S., or they have been violated health, and safety regulations, and these kind of things. Which normally is relatively difficult to get to this kind of information, especially for small businesses. This is now readily available in the supply management solution. Oracle launched a new standard cloud integration component, to our e-Invoicing Network. The connector is developed by Oracle, and enables Oracle Fusion Cloud ERP. To get easily integrated, with our Basware Network. And get e-invoices into the Cloud ERP solution, directly from our Basware Network. The integration component is available for free on Oracle's Cloud Marketplace. Of course, for the customers to be able to use it. They need to sign up for our e-invoice receiving services. The next couple of slides here, I would actually like to use a little bit of your time. To give you a recap on our current strategy, and share with you. Our view on where we are in that journey. Sustainable growth, and profitability is our strategy. And our guiding principles are scalability, operational efficiency, simplify, and clean up legacy. We embarked on this strategy journey late 2019. And we have been executing according ever since, and we will continue to do so. Because we strongly believe, that this is the recipe for long-lasting business success for us. One of the main components in our strategy, is our journey to the cloud. And we are making really good progress there. As some of you might recall, we defined our journey to the cloud in three phases. Transformation phase, where the sole purpose was. To move customers to the cloud services, and switch to a subscription pricing model. That we have passed a long time ago. The consolidation phase, where the main focus here is to mature what you're doing. To consolidate, and clean up legacy, drive efficiency, and get back to profitability. The last phase is the optimization phase, which more or less is about improving. What you're doing, and drive margins, and drive growth. By now, the majority of our activities. Are activities, that fall naturally into the optimization phase. Our journey to the cloud is coming to an end. And we will now continue our journey not to the cloud, but our journey in the cloud. Our focus will primarily be growth, and margins. The progress that we have made so far in this journey, is already today very visible in our numbers. If you look at it, and if you take it apart a little bit. More than just looking at it on the top. You will see that first of all, our revenue has developed quite nicely over the last four years. I think, what's more interesting here is actually the composition. How the composition of the revenue has changed, as part of that journey? Recurring cloud revenue has grown 12% on average over the last four years. It was 58% of the total revenue back in 2017, and in the last 12 months, it has been 75% of the total revenue. A recurring revenue stream that sits on top of modern, and up-to-date cloud technology. And cloud technology that's really built for scale, that's high-quality revenue. If we then look at our consulting revenue. That has continued to grow steadily over time as well. Especially, I would say over the last two years. Then that part of the revenue also sits on top of completely modern, and up-to-date cloud technology. Which also makes that a very high-quality revenue stream. The legacy maintenance business, will actually soon be phased out. As you can see also on the slides here, already today. It's a relatively, small part of the overall revenue. That will continue to decrease, and over the next coming years. It will disappear completely. Our profitability has significantly improved, and it continues to improve. The main drivers here is the operational efficiency. That we can drive into the business, and the scalability. That we can drive into the business. Sorry. If you look at the development on the cloud gross margins. Then you will see that, we've been able to move that from 58% back in 2017, to now 68%. Then, of course, a significant improvement in the contribution from our professional services. Has contributed a lot also to the bottom line here. This complete turnaround of our financial performance, and the future outlook. Is now what has made it possible for us to renegotiate the terms, and conditions. Of our existing debt facility, and realize a cash flow benefit. Of minimum EUR 12 million, over the duration of the loan. As you may recall, the duration of the loan is the same duration as the old loan, three years and three months. A successful renegotiation of our debt facility, was an important milestone to reach. And this clearly creates an even better platform for us, to continue our journey. Not to the cloud anymore, but in the cloud. With that, I would say I would like to hand it over to our CFO, Martti Nurminen. To take us through the details of the Q2 financials. Thank you, Klaus, and good morning, good afternoon also on my behalf. On a personal note, just on echo Klaus' comments. That it's great to have this event on a physical basis, and a gradual normalization. Hopefully, of the world also on a to-go basis, also for Baswareans. First of all, in terms of financial performance overview for the quarter, EUR 5.6 million of order intake. Certainly, still continue to be impacted to a degree. By the cautiousness in the market, but clearly to a lesser extent. A clear improvement on a sequential basis, still slightly below last year's level of EUR 6.1 million. However, as Klaus pointed out, the key fact underlying the performance. Being the net new performance clearly coming back online. In a very strong way, close to a level. That's been the highest ever in one quarter for Basware, being EUR 2.8 million. Net sales, 3% growth on an organic basis. For the total company compared to flat in first quarter, 3 basis points of acceleration. Clearly, attributable to our network business within the cloud, where two things are in play. Number one, clearly Q2 volumes last year. Those were the lowest for a long time as COVID hit, those coming back online. Naturally, also organic growth in the business attributable to the overall progress. We are making in terms of driving cloud growth. Continuous improvements in profitability. Klaus also just showed you a slide in terms of, how we've been doing on a four-year basis. Clearly now, as we are in the optimization phase. We start to see more, shall I say, normal level of EBITDA improvements. EBIT improvements, compared to prior year. This quarter, we delivered a EUR 0.5 million improvement in operating profit. Last year, second quarter, EUR 1.3, now EUR 1.8. Even with gross margins on total company slightly going backwards, cloud being flat year to year. Again, that also talks to the fact. What we have said before in terms of operating leverage. In big picture coming through, and helping us in quarters like this. Finally, cash position stable, EUR 40.6 million of cash at hand. Down compared to end of Q1 balance, as we would seasonally expect in the second quarter. That we are paying out the annual bonuses. Related to prior year performance in the second quarter. Overall, to put a wrap on our second quarter financial performance. As Klaus said, a robust performance, another step to the right direction. And especially, important for us to see the new logo performance come back online. As well as then see, the continued improvements in our profitability. In terms of cloud order intake, most of the points already covered. Just to hit also couple of key points here. Again, partner contribution, clearly more now in the second quarter than in last year. Very pleased with that. Equally, the fact that we can see that the growth. In the new logo performance, is broad-based is very important for us. As we know, that's one of the benefits of operating as a global company. That you've got more broad coverage, and that certainly was the case in the second quarter. France, Germany being key growth markets for us, grow in Australia, Norway as well. The absolute contribution into the order intake, of EUR 5.6 million from U.S. was strong. Net sales, 3% growth in total for the company. SaaS very much in line, the prior quarter's growth trend. Their slight acceleration compared to the first quarter, but very much following the trend. What we have seen before, and the journey progresses. As already mentioned, related to network revenues. Now EUR 12.2 million for the quarter, up 11% at organic constant. Clearly, a better direction there as well. We would not expect this level of growth. To continue in the transaction services. Again, I want to be clear that there's two elements driving that growth now, and the acceleration. The comparison number, and then so to say, the real growth on top of the business. Again, that SaaS growth, also then driving transaction services growth. Finally, on non-cloud revenues, consulting now up 1% on an organic constant currency basis. A deceleration compared to first quarter. Still up compared to second quarter of last year. As we look at the EUR 7.2 million number, it's good to recognize. That that's on a highest ever level in consulting. As such, that growth is slightly less. Of course, one could say that it would have been better. To have it little bit better, but still even EUR 7.2 million. It's a strong number, and especially as we look at the bottom-line contribution development of this business. It continues to progress in the second quarter, as we wanted to see. Finally, to put a wrap on this. To put License and Maintenance business together, on a year-to-year basis. We have EUR 2 million less revenues there. Clearly, the pull-through impact, especially as we talk about profit performance next. Again, it is excellent work by Baswareans in this environment, over the last 12 months. That we are overcoming, this level of reduction in the License and Maintenance revenues. Not only from the revenue perspective, but also then even more so on profit. To that end, EUR 1.8 million of operating profit for the quarter. Adjusted EBITDA almost EUR 6 million, with only a small adjusting item of EUR 0.1 million. So, EUR 5.9 million in total on reported EBITDA. As I already mentioned, gross margin performance on total company level. Slightly down compared to last year, really a function of two things. Naturally, as we look at the reduction in License and Maintenance revenues. That hampers the total margin. Second driver, which is also influencing cloud gross margins, is that first of April this year. Our salary increase program went online, as one would expect on a normal year. When we talk about cloud gross margins, as already alluded to. The fact that we had a lot more paper-based, and scan, and capture volumes. In the transaction services or in the network revenue mix. That naturally momentarily drives down the margin. Again, still clearly seeing that approximately 1 basis points-2 basis points margin expansion for the year. And like alluded to in the pre-silent period call. Most likely this year more towards the lower end of that 1 basis point-2 basis point range. Rather than the higher end of that 1 basis point-2 basis points range. As it relates to cloud gross margins. Overall from a profitability, again, another 90 days period step to the right direction. Little bit more on cash flow performance. Cash from ops, EUR 1.3 million. That is substantially, down compared to the second quarter of last year. I want to call out two things there. First of all, at the end of Q2 last year. We had EUR 4.4 million of payment deferral programs. Where we had taken advantage of. This mostly, related to governmental programs. But Also with some companies we had agreed. As a result of COVID pandemic, of deferred payment programs. We had EUR 4.5 million in total in our balance sheet, of payment deferrals at the end of Q2 last year. That's now down to EUR 1.1 million, clearly that drives a change in working capital. That combined with the fact, that based on 2020 performance. Our annual bonus model cash-based payouts, to our employees were higher. Than in the second quarter of last year, when we paid out for 2019 performance. Organically when we look, and pick apart the cash from ops performance. Adjusting for these two year-on-year headwinds. The underlying performance, of course, driven by EBITDA growth, is better. Receivables management is progressing well. We've called out that before as a key item for us. We've got almost EUR 3 million less receivables at the end of Q2. We've also seen continuous reduction on age receivables. Naturally something, given that our DSO is still relatively high. Gives us opportunity for the quarters to come. To continue to improve our cash flow position. Finally, I would like to take a moment again on the amended agreement. Which we signed with Macquarie, to cover a couple of key points again. First of all, when we pause, and we step back. From the key strategic rationale on this deal. Is that it really, is a function of balancing out three things all in combination. Number one, operational flexibility to the company. What is meant with that specifically is that. What is the level, that the company is committed to paying back? And when the company is committed to paying back the loan? As well as, what is the level of headroom? Related to the covenant, that the respective agreement has. This agreement certainly optimizes both of these topics. Second of all, clearly in this transaction, as you know. We now executed to complete that in the beginning of July. Time and certainty to complete a transaction is important. It's now inked, and we as a company, can leave this topic behind us. Which gets me to the third point, the to-go finance benefits are certain. They are known, they are bookable, consequently. Across all these three parameters, flexibility, certainty of savings, and the amount of savings are secure. As Klaus said, allow us now to also, on this regard, move fully into the optimization phase. In terms of the size, the quantum, that's at EUR 66 million. EUR 50 million related to the original facility, EUR 11 million of interest that we have previously capitalized. EUR 5 million related to upsizing, to enhance our liquidity position. Which relates to the arrangement fees, as well as the early call fees. That we needed to pay related to this transaction. Brings me to the impact of the company finance. Let me talk to it, on two key points. First of all, the cash benefit, and both total. As well as then Q3 pro forma impact, and then second of all. Let me cover the finance expenses. In terms of the total influence, and then what we see for Q3. As already said, EUR 12 million is the total benefit, and that really is the function of course. The lower interest rate, as well as reduced to go exit fee. But then net of the EUR 5 million payment. Related to calling the facility early, and organizing the new loan. When we then specifically look at Q3 pro forma cash impact. That is a total of -EUR 10 million. The way you should be thinking about our quarter, and Q3 cash. Is that we are targeting, approximately EUR 30 million cash at hand at the end of Q3. That's really very simplistically a function. That we are paying out EUR 8 million in quarter three. Related to the exit fee, and we are paying out EUR 2 million related to transaction fees. From a cash flow perspective, the EUR 5 million. Related to arranging the new facility, as well as the early payment fee to Macquarie. From a cash flow perspective, is a net zero for the quarter. As we are upsizing the facility with EUR 5 million. Again, that I want to emphasize again is Q3 impact. The total cash flow benefit for the company, over the remaining duration is EUR 12 million. Again, the pro forma impact to end of Q3 cash is a -EUR 10 million. Relative to end of the second quarter cash position. In terms of finance expenses, that you will find in the P&L. Over the remaining duration of the facility, that is approximately EUR 9 million. There is a significant Q3 negative impact. I want to be clear, that the total EUR 9 million benefit. Includes the one-time increase of EUR 11 million. That will be visible in our Q3 P&L. The EUR 11 million one-time expense, is a function of two things. First of all, there is related to the existing loan. Still unamortized cost in the balance sheet, before we signed the amendment. Given that how accounting works, when you sign. Originally, when we signed the breakout deal. The arrangement fees, as well as transaction costs. Were amortized over the duration of the facility. Now that we renegotiated this facility, there's a one-time write-off effectively from the balance sheet. Related to this previously unamortized cost, for approximately EUR 8 million. Second of all, we will have a EUR 3 million one-time increase in Q3. That is attributable to the difference. Between the cash payment of EUR 8 million, r elated to the exit fee. And what we have previously had at the end of Q2 2021. In the balance sheet, related to accrued exit fee under IFRS Nine, which is EUR 5 million. The difference between the five, and the eight. Is simply, based on the effective interest rate method. That rules how facilities need to be accounted for. Net- net, again for clarity, total to go P&L benefit, for the company until the end of maturity. From the beginning of the third quarter, until maturity, EUR 9 million. However, Q3 impacted one time by EUR 11 million. Finally, to put a wrap on this before turning back, to Klaus on outlook related comments. I want to go back to where I started. Three key things, operational flexibility for the next 24 months. For the company, an extremely important topic. That including the fact, that in our disposal. We have a EUR 15 million basket super senior revolving credit facility. That will give us the opportunity, to even during the next 24 months. Drive down the cost, and the interest rate from 6% into something. Which is hopefully lower than that. Combined that now, what we have in our hands is certain economic benefits. They are booked, they are bookable. And we have locked in, the lower interest rate for the next 24 months. All of these things combined, we see the transaction. Very much obviously accretive to our bottom line. With that, Klaus, I would like to turn it back over to you. Thanks, Martti. Let's have a look at the future. Our main focus right now, remains to be sales execution. And we're working on improving all our channels. This is not just a matter of improving direct sales. Or improving our partner sales, or improving our reseller channels. We have to work on improving all channels, and we are doing that. On the structural leadership perspective, we announced that we are looking for a new Chief Revenue Officer. And that recruitment process is going well, and we hope that we are able to, after the summer period. To announce more details around that. We've changed our sales leadership both in the U.K., and in Scandinavia last quarter. And both regions are progressing well, in getting things more aligned in the areas. The increased level of activity in the market, is visible in U.K. already now. We actually expect that, we will see that in our numbers already this year. Scandinavia is still sort of in the process, of rearranging the sales organization. And turning it into a more regional setup. Compared to the more country-oriented setup, that we had before. Even though they are in the middle of changing that setup. Scandinavia contributed to the order intake in Q2, which is nice. I will, and do expect that we'll see more from Scandinavia going forward. In general, I would say that we see signs of recovery, i n all our markets right now. And the level of interaction, and activity we have with our opportunities is also increasing. That is a very nice trend to see. If we then look at our professional services business, and what we expect to happen on that side going forward. Then we had our Chief Customer Officer, Jussi Vasama resigning. And decided to pursue his career outside Basware. And he will be leaving Basware, at the end of August. In the interim here, we have agreed with our VP of Customer Support, Matthias Lippert. That he will continue to run the global support organization, a nd he will report directly to me in the interim. Mikko Lampi, VP of Professional Services Nordics. Will take on the global responsibility for professional services in the interim, and also report into me. Quite a strong, I would say, interim solution. That we have in place now, and that means that there is no urgency in us. In finding a one-to-one replacement for our Chief Customer Officer. What we will do, is that we will use the time. To find out exactly, what is the best setup of the total professional services organization? Including our customer support organization going forward. And then we will move towards that as, and when we have decided how to do it? Because there are changes coming in there. First of all, w e are moving to a situation where more, and more of our customers. Have been cloud customers with us for a while. We see a mix a little bit in the request for services. The fact, that we have more focus now on also delivery partners, or system integrators. Means that we will see a slight change. In the mix of our own professional services longer term. We will continue to run initial implementation projects. That service revenue stream, will not grow with the same pace. As the cloud revenue will grow longer term. We will create space for our delivery partners. To take on some of that work, instead of us doing it ourselves going forward. What we aim at is to move much more into higher value services. With primarily existing customers, like improvement projects. Continuous consulting engagements, and expert consultancy also into our partner ecosystem going forward. This transformation has already started, especially in the more mature markets like the Nordic regions. You can already now start to see a little bit of a change, in the services revenue mix. It's a longer-term change, and will take several years. Before all of that is completely completed. That's our thinking, that we will move in that direction. This will drive our margin expansion, in the professional services business long term. And it will result in a growing ecosystem of delivery partners. Which in turn will help us, to drive more order intake. That's the rationale behind, what we are doing right now. Looking at the outlook for the full year, the gradual recovery of the business environment. We expected to see moving into the second half of this year, seems to have materialized. We do expect that, to continue also during the second half. Increased activity in our business environment, is very encouraging to see. We have already anticipated, that to happen in our financial forecasting. On that basis, we will keep our full year guidance as is. Which is modest, positive net sales growth. And EBIT approximately at the same level, or better than previous years. With that, I would like to go back to where we started. And then I would like to open up the floor for questions. Which you can help us do, Katariina, if you don't mind. Yes. Dear participants, we can now take over the questions from the room first. Okay. If I will start. Kimmo Stenvall from OP Markets. First of all, on the order backlog or the cloud order intake. You seem to be quite happy about it, but still it's below last year level. How confident you are, that you are getting back to growth in later part of the year? [Break] I think, you could always have wished for a million more. Which is typically, what I always wish for at the end of a quarter. I think on the positive note. I would say, especially if you look at how it was in Q1? Which was not that fantastic? It's trending completely differently now. Which of course is a positive trend, and gives you a little bit of confidence in things. I think the fact that 50% of the order intake this time, is new logos is a strong sign for us. When you look at some of the previous quarters. Where we actually struggled a little bit to reach the numbers. That we would like to reach on the order intake. It's been the new logo closing, that has been the primary issue for us. I think, that even this quarter or Q2. We have seen some kind of impact, of the year we have been through. Of course, to a much lesser extent, than we have seen in some other quarters. If, I would say. If, this optimism in the market, and the activity, and so on. Continues over the last part of the year. Then I think, it's absolutely realistic to get back. To more where we were before. That would be my view on it. Okay. Thank you. Another question on the same topic. As you mentioned, new logos, you are quite happy about it. But also, I think that the volume component is quite nice. But this is the deal sizes, a little bit smaller than usual. Or how would you quantify, the structure of the order book? You mean the Q2 order book? Yeah. We did not close any megadeals in Q2. We had one deal which was, I would say, significant and large. And then the majority of the bigger deals, were sort of good to medium-sized deals. Quite a relatively balanced order intake in Q2. If I continue maybe this to Martti more on the cost base. We have seen the gross margin going up, and also the OpEx is quite nicely trending down. Do you have any of these kind of cost items, or cost inflation that should go up? Later part of the year or maybe in 2020, salary inflation. Or what is the main worry, on the cost base at the moment? I'd perhaps, Kimmo, answer the question. But start from a little bit of a different angle, which is that. What are those natural things, that through productivity in this kind of a business. You would always look to cover. As well as then combine with commercial actions like price increases. Naturally, that's now number one, beginning of April this year. The same thing will be, of course, there next year, which is the normal salary inflation. That's why then on the other hand, from a commercial perspective. We do have price increases ourselves. We then look at other structural drivers. I think naturally, what all the companies are managing through right now. Is that as travel, will start to kick in to a certain extent. That how do we as a company manage through the next quarters, and next year. And bring back those kind of spending elements. That don't have an immediate bottom-line benefit, in a managed way. Relative to the growth of the top line. Certainly, we feel that we're taking all the right actions, at the moment on that too. To allow that travel that is business critical, have that reflected in our forecasting. And as such it's not a worry, but it is just something. That you think through your models. That I would encourage to take into consideration. Again, that all in the context what I said. That we are still seeing that, 1 basis point-2 basis point of cloud gross margin expansion. Most likely, towards the low end of that range for this year. As an example, and we are very confident with our guidance on profit. Naturally in this business, as we see that cloud revenues continue to grow. Certain elements of our AWS cost, the usual production cost. As well as when we look at below gross margin, we look at SG&A elements. Structurally, there aren't massive increased drivers. And again, operating leverage that we continue to drive through. Certainly, would give us the benefit. I would then say, that on the third basket. It's more business as usual, managing the value-adding cost increases. But again, all that in the context of the financial performance we want to take. Net-net, to put a wrap around that. We are not concerned, about cost performance as such. It's something that we do week by week, and month by month. Okay, thank you. That's all for me. Hi, Antti Luiro from Inderes. I'd like to also continue on the order intake topic. And kind of what are the trends underneath? If we look at the top line, it's two years of decline. But then you have the market uncertainty, and then also reduced number of transformation deals. What you're doing now is a bit more difficult, getting the new order intake? If we adjust for those, how do you see your sales performance overall? Is it on a positive trend? This is a topic we've talked about several times before. When we look at our CAC ratios, and the development in our CAC ratios, and these kind of things. Then we're not happy where it is today. It's not sort of completely insane, where it is? But it's not, where we would like it to be, right? We see that we should be able, to achieve more output. With the existing cost base we have. We are actually thinking the way that. We would like to see, that to be a little bit more efficient. Before we start throwing investments into the machine. That has always been the thinking. And we have. As you know, these kinds of things, they fluctuate a lot quarter by quarter. The question is for how long period do you work with rolling averages, and stuff like that? This quarter, for example, it's very good. Last quarter was not. The long-term trend, we would like still to see, that to have the right trend. Right now it's flat. But then, I think that is a matter of time, before we do that. Of course, it's a business decision whether we think now. There's actual return on investment in, turning up the volumes for our sales and marketing. If you then look at it, you're completely right. The transformation piece of the order intake has. Of course, declined over time, which is natural. That gap needs to be filled with something else. And that something else, can only be expansion business or net new names, right? Our expansion business is actually pretty stable, and slightly growing. Not completely correlated to the installed base, that I would like to see. But it's growing, so that's good. It's very stable. The focus is a lot on net new, and new logos, right? I would say that is very much, where the whole partner strategy, and the belief in that will help us. You can say it's the slight decline in the order intake over this last, let's say, 18 months. How much of that is pandemic related or COVID related? How much is related to the fact, that there's less transformation in there? It's very difficult to say. That gave more color on the topic. Still comparing to Q1, you mentioned that market conditions have improved now here. How much of the improvement from Q1 came from market recovery, versus your ability to convince larger clients? To buy your solution regardless of the environment, kind of improving sales models or contract models? Yeah, I can't give you a definite answer on that one. It's a good question. Right. Got it. Thanks. Maybe I'll pick up one more then. On the partner activity that improved, you mentioned that a lot of the large deals, were partner influenced. Did you see that, this is now just a natural trend of improvements now in the partner program? or was there extraordinary kind of push towards more partner-influenced sales in Q2? I think there was not extraordinary push. When you look at the relationship, that we have to some of these partners. It's getting stronger and stronger. That is what I tell myself is one of the reasons why. We have actually been able to close more net new logos this quarter. Because we just have a stronger relationship with partners. Who are already sort of in some kind of dialogue, with the opportunities that we are talking about. They're actually helping to get the contracts over the line. It is very much exactly as you're saying. It is very much sort of the higher end of the medium-sized deals, and the larger deals that we're talking about. Then sort of in the low end, it's more the reseller channel. I have to say, I'm actually also quite happy to see. That there is more throughput on the reseller channel this time. Okay. Thanks. That's all from me. Thank you for the good questions. Are there any other questions, from the conference room here at this point? Okay. We can open the conference call lines next. Thank you. If you do wish to ask a question, please press zero one on telephone keypad. If you do wish to withdraw your question, you can do so by pressing zero two on telephone keypad. Our first question, come from the line of Sami Sarkamies from Nordea Markets. Please go ahead, your line is open. Hi. Thanks. I have a couple of questions. First, continuing on the order intake topic. Firstly, you did elaborate on the second quarter having been a balanced quarter. With one large deal, and several medium-sized deals. Thinking of the improving operating environment, we could easily see a blowout quarter ahead. When pent-up demand starts to materialize? Could that happen already in the third quarter, or should we still be a bit cautious in the short term? You mean whether it has already happened in Q2, you mean, I guess? No, I mean, could we see pent-up demand. Starting to come in during the third quarter already, or is that too early? As you know, we don't really guide on expected order intake for the future. We do that for a reason, and that is because it actually varies a lot. It is really difficult to give any meaningful guidance on that. That's actually the reason, why we don't do it and nothing else. I think that it's a fact, that we can see that the activity level is increasing right now. That's factual. The question is, of course, what is going to happen? When we get to the other side of the summer period in the world. I would say, if things sort of continue. As they seem to be evolving right now. Then I'm relatively optimistic about, what's going to happen already in Q3 and Q4? We all know how quickly it actually can end up in a situation. Where things start to close down again, and you can't do this, and you can't do that. And this country is completely in lockdown again, and things like that. It can actually sort of change from day to day. That's why I think, it's really difficult to give you meaningful guidance on that, I would say. Okay. Secondly, I would ask that can you comment on the extent your pipeline. Has improved during the first half of the year, a llowing for sustainable improvement in order intake. The pipeline continues to be in a reasonable level. You always want more pipeline. That's of course the fact of life. It's on a reasonable level. It does support the order intake, that we have in our models for this year. Okay, thanks. Moving on to OpEx headwinds in the second half of the year. What's your current thinking on OpEx normalization during the third, and fourth quarter? I'm thinking of items like travel, and marketing costs. Yeah. I can take that. Sami, I think first of all on the marketing costs. We will see an increase in the second half. The degree to which we will be back on pre-COVID levels, depends then on the day-to-day. And week-to-week marketing campaign execution decisions, and how that will come a gain? We do estimate clearly, that marketing spending will increase in the second half of a year. Relative to the first half of a year, and relative to last year. Second of all, as we then look at Travel and Entertainment. Obviously, we were now on an extremely low level. Still in the second quarter, EUR 0.1 million in total, and that's even rounding it quite much to get to EUR 0.1 million. Even there, we also have for the third quarter already 3x- 4x more. As we look into Q4, we do have even 2x of that. There is a certain level of normalization assumed. Certainly related to Travel and Entertainment, we are not yet talking on pre-pandemic levels, but a normalization. Okay, that's very helpful. Then on transaction services, can you elaborate on the run rate improvement during the second quarter? Are you starting third quarter, on a much better footing now? I can comment on that. I think, Sami, the way I would be thinking about transaction revenue growth. For the second half of a year, that somewhere in the middle of where we were in Q1. That was flat year-to-year, and now we were up 11%. I think a midpoint of those is most likely, the trajectory for the second half of a year right now. That's really a combination of the two things. That the comparisons, will get a bit more difficult as we go to Q3 and Q4. Given that Q2 last year, was really the bottom in transaction volumes. On the other hand, we do see that there still is now normal business growth. That will drive revenue growth. As always, unfortunately, as Klaus was mentioning about cloud order intake. Transaction revenue growth, network revenue growth is unfortunately naturally still one of the lumpiest one to forecast. That's our thinking right now, on how we are looking at second half. Okay, thanks. My final question is quite simple one. Do you have plans for a Capital Markets Day, during the second half of the year? Answer is simple to a simple question. Yes, we have plans. Tough to be specific, Sami, and not to leave you hanging. Q3 clearly is too early. As we look for Q4, work is going to get started now. As we come back from summer holidays, and hopefully soon enough. We'll be able to tell you something a bit more concrete. Yeah. Okay, thanks. We look forward to that. No more questions from me. Thank you. Thank you. Our next question comes from line of Paul Cowles from Jefferies. Please go ahead. Your line is open. Hi, good afternoon, everyone. Just really two kind of basic questions on my end. In terms of the pipeline, is there any color that you can kind of give around verticals? And if there's any big differential in recoveries? I guess, around some of these different verticals. Then maybe just in terms of the partnerships itself. And apologies if this has been already talked about. But how good is the coverage, I guess, in terms of the various verticals that you work in? Is there an opportunity to maybe extend some of those reseller partnerships. To cover more verticals, maybe more effectively than you might have had in the past? Yeah. Let me start with the pipeline things. First of all, I think it's important to understand. That we are not, as such tied into any specific verticals. If you look at the customer base we have, it's very diversified. We have everything from hotel chains to automotive to healthcare, and so on. We do not really sort of tie into a specific vertical. I think, when you look at the pipeline, and start analyzing that. I don't see any sort of significant change, from a vertical perspective. Than what we have always seen. It's actually nicely spread across the board. That was question number one. If we look at the partner universe, and the coverage we have on the partner side. I think the simple answer to that question, is that there's plenty of room for more. That is probably, as easy as you can answer that questions. We have relatively few partners, relatively few resellers. And there's plenty of room for more in that space. We are also selective, I would say. With the partners that we engage with, and spend time with. Because it's very important for us, that we have the right partners. And that they are actually active, and that they are buying into a true two-way partnership. And not just reselling something for us every second year. That's not the kind of partner we want. We need to find partners, who has certain size. And certain maturity, to do what we would like them to do. There's plenty of room in the partner space for us. Great. That was really clear. Thank you. Thank you. Once again, if you do wish to ask a question, please press zero one now. We have a question coming from Saran Gupta from [Baring] Capital. Please go ahead. Your line is open. Hi. You'd mentioned that cloud transformations, were somewhat of a headwind this quarter. Could you give us more color on that? What were cloud transformation as a percentage of order intake, this year in Q2? And how does that compare to last year's Q2? Thank you. I did mention in the voiceover, that transformations in Q2 was 12% of the order intake. I do not have in front of me, the exact number for last year. But the question is, how much information there is in that? Actually, i f you look at the trend of transformation, then as expected and as planned. It has gradually gone down over the period of time. This Q2 is among the quarters ever, where the transformation. Since we started, is the lowest, both from a percentage perspective. But also, from an absolute amount. Got it. Thank you. We have no more questions from the line. I will hand it back to our speakers. Thank you very much. I think we covered actually all the questions. We got some questions from the chat, but we covered them. I think, here during the Q&A from the lines, and from the conference room here at Espoo. I would now like to conclude, this Basware's Q2 2021 Results Webcast and Conference Call. Thank you for your participation and your attention. And thank you for the good questions. I would like to remind you, that this webcast has been recorded. And will be available in the investor relations site later today. With that, thank you very much again. Have a nice day, and a wonderful summertime. Thank you. Thank you.