Good afternoon, everyone, and welcome to Efecte's 2021 results webcast. I'm Tatu Paavilainen. I'm here today with Niilo Fredrikson, our CEO, and Steffan Schumacher, our COO. First, as a disclaimer, we'll be making some forward-looking statements and have a disclaimer for that in the materials. As for today's agenda, we have one full hour for today's webcast. We'll start off with remarks by Niilo, and towards the end of the presentation, Steffan Schumacher will be adding some color on the go-to-market in Europe and beyond. After the presentation, we'll have the remaining time for the Q and A session. We've traditionally had lots of good questions, so we look forward to that, and you can already send out your questions during the presentation using the webcast portal's Q and A features. I will then read the questions out to Niilo and Steffan, who will take them. With that, we'll have Niilo here, and I'll hand it over to you. Okay. Awesome. Thank you, Tatu, and hello, everyone. Thanks for joining. 2021 was a real year of growth for Efecte. Just to illustrate the point, I'll move the slide forward. In 2021 we delivered by far the financially strongest year since our IPO in 2017. Total net sales growth was fastest. Our EBIT was the best of these years, and we have customers in more countries than ever before. We did that all by at the same time also investing quite a bit into our product and into our team. People and culture are really at the center of our success, and that's why it's such a high priority for us. We did sign several new partnerships, which helped us open new markets for Efecte and also expand our reach across Europe beyond the direct markets where we are present with our own teams. We also started evaluating M&A as well as opening new direct markets as additional ways of supporting our growth going forward. What is not mentioned here, but I do want to point out, is that for the first time, we also published our environmental, social, and governance report, the ESG report, which you'll also find on our investor pages. We are all quite proud of that as well. It was a great year, and what we'll do next is look a little bit at some of the detail behind, you know, how the market's been developing, how did the figures look like. I'll talk a little bit about the product and the team, invite Steffan, our COO, to talk about the go-to-market, and then wrap it up with our guidance before the by far most exciting section of the day, hopefully, the Q and A. What we offer customers is three key offerings: IT service management, enterprise service management, and identity governance and administration, and all of this is offered based on one Efecte cloud platform. In this space, we see ourselves as the European alternative to the global goliaths in this space. One of the changes last year, compared to the previous years was that, we did see the role of identity governance and administration increase. More and more customers wanted to talk about it with us. More and more customers were interested also in some of the new packaging we brought to market with the IGA Starter package. Combined with continued strong demand in IT service management and enterprise service management, it helped us grow. We always cover what we promised and what we delivered, so that's what we'll do also this time. We did guide SaaS growth between 21% and 24%, international expansion, and an EBITDA margin between 1% and 6%. I'm very happy that we were able to deliver against these promises and actually on the upper end of the ranges we provided. If you look at Q4, it was a good closing for the year. You might recall that in Q3, SaaS growth dropped a little bit to 21%, but we got back to a very healthy 24% growth level during Q4, and that helped us finish the year for the full year also with 24% SaaS growth. International SaaS growth also picked up again during Q4, and despite increasing the size of the team and also making some other investments, including increasing subcontracting, we were still able to maintain a stronger level of profitability than maybe even we ourselves thought earlier in the year. When you look at the SaaS growth, sometimes I get asked the question that, "Hmm, you know, it's always kind of 20 something. Isn't there something we can do to make it grow from there?" No doubt, I mean, that's my job, that's our team's job to think how could we do the best job possible. At the same time, I do also want to point out that maintaining that 20%+ growth year-over-year, quarter-over-quarter for extended period of time. In fact, now this Q4 was the 17th consecutive quarter of us posting +20% SaaS growth. What it means is that while that growth percentage stays sort of flattish, of course the absolute numbers grow exponentially if we are able to maintain that steady growth percentage. Through that SaaS growth, of course, the share of SaaS in our P&L has also grown quite a bit, meaning that it's now absolutely the dominant top-line item on the P&L. Breaking it down to growth from existing customers and growth from new customers, we saw again growth from both sources. A highlight of 2021 was definitely the net retention rate. 115%, I think that's the highest net retention rate that we've ever reported, meaning that without a single new customer, we would have still been growing our SaaS business by 15% even after accounting for churn. The lifetime value and customer acquisition cost equation and ratio is something that we started publicizing last year. It was even before that an important metric to guide us in Efecte when we think about investments and how we go to market. What that ratio tells us is that fundamentally investments into sales and marketing make sense in the current Efecte model. We've previously reported LTV:CAC ratios around five. Now it jumped up to eight. Part of that was one larger deal that we signed in Q4 with Kela in Finland. But even without it it was definitely at a good level. If you look at what the industry benchmark says is if you are at the level of five+ it might indicate even an under-investment in sales and marketing. There is definitely opportunities for us here. At the same time, of course, it does not make sense to invest in getting more customers in if the business, if the recurring part of it is not fundamentally profitable. That's why we were pleased to see that the development of our recurring gross margin was again very consistent, very steady. We've been around 80%, throughout the history of reporting that number and now as you can see even some slight growth in that margin. With that top-line growth, it helped us also bottom-line wise. However, it should be noted that without a very strong performance on the professional services side, we wouldn't have seen this good profitability, which as I said, probably exceeded some expectations. That was to a large part due to the strong performance in professional services. We were able to grow services almost at the pace of SaaS growth last year, 19%, and that really helped with the bottom line. In a way, I think that services growth serve two functions. The most important function is to help our customers deploy Efecte and expand Efecte usage. That's the main reason why we even do that business. I mean, we are here for the SaaS business, for the product business and as we have stated many times, that's our goal. We want to grow the SaaS as fast as possible. That said, that professional services piece is an important element supporting that growth, supporting our customers, so we will continue to do that also going forward, but we don't expect to see all the time this fast growth in that part. Also maybe one remark on the cash position which sets us up well also for any future growth scenarios, for example, any inorganic growth. We did finish the year 2021 with a cash position that was an all-time high for the year-end cash position. Investment into product was one of the really big things last year, and it will continue to be a big thing this year as well. In this business, it all starts with the product. Our product needs to be competitive today and also tomorrow, and of course it requires investment, and in the best case, that investment translates also into making the product easier to sell and even more compelling, relatively speaking compared to the competition out there. IGA Director for Identity Governance and Administration makes management of access rights and Active Directory automation easier than ever before, and that's a new offering we launched towards the end of the year. Very excited about that. Our next generation self-service is a long project we started last year to renew the self-service user experience in Efecte and make a significant step forward there. I'm personally been following that closely and excited about the things we are doing there and there will be more later this year that we will be able to tell and show in that space. We did continue improving our AI capabilities, the Virtual Coach feature set, for example, the quick fill feature was something new that we brought into the product last year. Last but not least, the enhanced integration capabilities. While it's a little bit one might say a little bit boring or table stakes or what have you, we do think that it's strategically so important for our customers and also for Efecte that Efecte can be easily integrated into the rest of the IT fabric, into the rest of line of business systems at our customers' environments. While it all starts with the product in this business, one might say that it all ends with the team. That's in addition to having the right product, having the right team is of course critical for our success. We put a lot of focus on both making sure that Efecte is a great place to work for our current team that we are very proud of. I personally feel very privileged that I get to be part of this team and present this team also, for example, on this call. We've got super diverse talent, different ages, different background, different ethnicities, and I think it's a very special team and super proud of it. We do everything we can to make sure things stay that way. As you can see from the employee satisfaction numbers and the attrition numbers that are for this current environment where a true war for talent is going on, these in my view are really strong numbers. It's been going well in that space. To make sure that we have enough people for the growth that we project for the ongoing years, we did start recruiting more actively again last year, as you can see also from the bar chart. While we were able to bring in a pretty good quantity of people, again, to me the most important thing is the quality of people that joined. With that, Steffan. Where is Steffan? There he is. Hello, Niilo. How are you? Doing very fine. I'm really happy to be with you in this call today. Okay, awesome. Hey, would you like to take us through now what we've been doing in terms of our go-to-market in Europe and beyond last year? Yeah, happy to do that. I'm Steffan Schumacher. I'm the COO of Efecte, and totally proud being here and present some of the insights of our go-to-market in Europe. You know, there are three things we do in our team. We serve our customers. We want to ensure every single customer gets a five-star customer experience. We sell and we market the Efecte solutions in our existing markets and in our new markets. Three, we constantly drive business development activities in new markets through partners, and I'm gonna talk a bit about the exploration we do with new direct markets as well. I think that's what we do, and that's something we've been executing very relentlessly on in 2021. We really had a solid end of the year with a strong Q4, and we got and received really strong demand for our ITSM, ESM, and Identity Governance and Administration solution. I'm really happy to see the market reaction to our IGA solution. We really have a unique proposition there. The time to value from to the customers is really good, and we see a lot of increased customer request on that side. Finland, Scandinavia, and DACH have continued to be our main markets, and we saw a healthy growth in all of these markets while we also expanded our reach into new markets. In the new markets, we reported that we got the first part of the deals in the U.K., in the Czech Republic, and Poland. While these customers are small in the beginning, those are gonna be really good reference stories for us as we accelerate our sales approach and sales efforts in 2022. Our international share of total net sales increased to 25%, and I think it's a mixture of both growing internationally at 43% in Q4 and the really good performance in Finland as well. Really a solid performance there. As you look at the map, during the last years, we have been able to actually officially state that we have either a location or a partner in 12 countries in Europe already. I think that's a really unique position as we have multiple customers that are cross-border, and they wanna see Efecte kind of operating in Europe. Really building that European alternative is working. Maybe as a final point, we are exploring new direct markets in Europe to expand our reach as well, and the focus really is on these larger countries in Europe: U.K., France, Spain, Italy. We can maybe take a few of those questions in the Q and A. I feel really proud of the team, I feel really proud of our customers, and I look really strongly into 2022. Okay. Awesome. Thanks, Steffan. Maybe just one remark on something you said about the share of international of our top line. One might say that, "Hey, how did that grow only from 24% to 25%?" Of course, you know, it's not that we did not grow fast internationally. It's last year. Mm It was really more about Finland growing so strongly as well. I think that continued demand in our home market is something that we are very positive about, as it's a good indication of our ability to grow our installed base. Good. Hey, before we get to the Q and A. By the way, just a quick reminder, you can post already all your questions so that we have a healthy pipeline of the questions available once we get there in a few minutes. Before we get into that Q and A mode, a few things just to wrap it up. First of all, guidance for this year. We do guide SaaS growth of over 20% for this year and a positive EBITDA excluding any potential costs from inorganic activities. Why we say that is of course because, as we've communicated previously, we have started evaluating opportunities for inorganic growth, including potential acquisitions to strengthen our platform or strengthen our go-to-market. We did start some discussions last year. We will continue some discussions this year. We keep the bar very high, in that sense, we see this is a long-term initiative. We did want to make sure that we are transparent about that also in the guidance. Another thing is the strategy update we mentioned in the financial statements comments. We plan to update our strategy, and we will do it in March. On March ninth, we will arrange a Capital Markets Day, which will be a great opportunity for anyone interested to learn more about that updated strategy and also have, again, the opportunity to ask us questions about the future direction of the company. What we plan to do there is, of course, we'll talk about the go-to-market, but we'll talk also quite a bit about the product, and how we see our opportunities in this market going forward. With that, I will wrap the opening remarks up by saying big thank you to all Efecte customers, partners, investors, and employees for being part of the story during 2021, and hopefully for years to come. I'm in this for the long term, and it's an exciting journey I see ahead. Now we'd love to take your questions. It's the time of the quarter we are looking forward to the most, getting those good questions in. Yeah. It's been pretty cool dialogue. Mm here in some of the past Q and A sessions. Let's get started. All right. Hey, we already have a healthy pipeline of questions, but if you have any more, please send them in. The first one: Is there a significant difference between whether a customer deal comes through a partner or direct sales with respect to agreement duration, customer commitment, profitability, total value, lifetime profit churn, customer acquisition cost, et cetera? All right. Thanks for the question. Steffan, you wanna take that? Yeah. I can take it. Definitely a lot of data points in that question. I mean, overall so far, I mean, we have transacted quite many deals through our partners, and so far we have not observed any significant difference in those metrics and KPIs. All right. Cool. All right. Next question: How would you describe your future efforts and investments in direct sales versus partner channel? What is prioritized and why? That comes to me. Well, maybe you start then. You start then. Yeah. I mean, the question was really about, like, how do we see investments into the partner channel, yeah, or into the direct channel. When we talk about direct, we mean the fact that we do have an on-site sales marketing delivery team on site in a specific country compared to just going with channel. First of all, I would probably think that it's not either/or. It's probably the power of and. If you look at Sweden, Scandinavia, we look at DACH, we look at Finland, we do have a direct sales team, and we do have partners. It's not, so we can do both. The way I would look at it is to say that we are gonna continue looking for really good partners across the EMEA area. On top of that, we are looking to expand in direct markets. I, you know, already said that we are mainly focusing and looking into the largest countries in Europe where you have the local language requirement, for example. One expectation- Mm that we did set for this year is that we would start a formal pilot in at least one new direct market during this year, which would be one of those, you know, larger markets. Mm-hmm in Europe. Yeah. To summarize, it's not either/or, it's and. Yeah. I like it, the power of and. Yeah. Of course, if you look at our LTV:CAC or some of the other metrics, it does make sense to invest in our current direct field sales-based model while we build that other growth engine based on the partner channel. Good question. Continuing on the go-to-market side. In Q3, you told that you are exploring new direct markets across EMEA. Can you elaborate on the status of this initiative? What can we expect? Sure. Maybe I start this one. Yeah you can add. As said, we do expect to start one pilot in one of the larger European markets, which we're not directly present in at the moment during this year. What it will mean is make a modest investment into customer and partner acquisition in that market, gather a little bit feedback, and make a decision then based on that feedback and data points, whether it makes sense to increase investments in that particular market or maybe look elsewhere. One point I do want to underline there is that while we talk about direct markets and partner-based markets, also in our direct markets, we have excellent partners. If you look at the number of new customers we signed last year, I believe it was 38 we reported, and out of that, 17- 17 came through partners. That's just showing the role partners already have had and can have also in the future in our new customer acquisition. Anything you want to add? No. Good answer, Niilo. All right. Hey, next one. Can you elaborate on the reasons behind the good international SaaS growth compared to the slower Q3? What were the drivers, and how do you plan to keep up the development? Okay, your turn. I can take this. I mean, in the Q3 release, we said that we're gonna expect improved growth in Q4. In the end, it's all about the deal flow, right? While you know, we are growing the business in the national markets, some quarters you have a few bigger deals, and some quarters not all of those bigger deals are hitting that quarter. There's just that natural fluctuation in growth we see. I mean, I feel confident about our plan, and we're gonna continue growing locally in Finland, internationally. I feel really strong about that. Maybe just to add, you know, when we look at the Q4 closing, the performance of the sales teams, for example, in DACH, the team did an amazing job. I mean, there was good pipeline, but I think the teams also did an excellent job in converting that pipeline. I think to all of us, again, it gives additional proof points, additional confidence in the competitiveness of the Efecte offering and our prospects going forward. Okay. Next one. Your revenue from other Nordic countries outside Finland grew by only 4% in 2021. Why are you not able to grow faster in other Nordic countries? Yeah. I think one observation there to start with, while total net sales grew at a certain pace, SaaS grew at another pace. I think what happened in the other Nordic markets it was that last year we saw much slower services growth in relative terms than SaaS growth. Then looking at Finland, what we saw was super strong services performance. When you kind of calculate the regions' contributions into total net sales growth and into SaaS growth, there is a certain difference there. That said, can we do a better job in our Scandinavia region? Absolutely. I think we have by far not hit the ceiling in that market. In a sense, if you look at our past couple of years, I think we have done a good job in Scandinavia, growing, acquiring new customers. We have probably done an even better job in the DACH region. Of course, we are taking the learnings and some of the concepts that have made us successful, super successful there, and leveraging those as we continue to focus growing also in Scandinavia this year. We have actually multiple questions regarding this topic. Your recurring gross margin went up from 77% to 81%. What are the main drivers for the higher gross margin? Well, let's start with the definition of the gross margin, the recurring gross margin. First of all, we look at our recurring revenue base, which is the SaaS plus maintenance, and we subtract from that the cost of providing services related to that recurring revenue, which is essentially running our cloud service. Taking away that cost, that's how we end up with that recurring gross margin. Of course, there is lots more detail. There is some enhanced service levels which are calculated as part of that- Mm-hmm We recognize that cost. There is the cost of support that we include as well, because it's not just running the cloud service. Yeah ...it's also doing all the support there. Five-star customer experience, as Steffan said earlier, is very important to us. It's definitely a significant item in that cost, or I would call it more an investment. Mm ...in there. The growth that we saw in that recurring gross margin is, I think, just an indication of the scalability. Mm-hmm Of our business model. Of course, it's very modest growth. I mean, it changed from what, 80% to 81% and the year before it was 79%. Mm. I think the direction is right. To me, it's just important that we keep it at minimum around 80% level. To me, that's a good benchmark for any SaaS business, and as long as we are in that rough ballpark, I think we are doing a great job, and it makes sense to invest more into go to market to get even more of that recurring out of which we do get a very healthy margin as you saw. In the end, it's the function of revenue, SaaS revenue growing faster than the cost you deliver that revenue to. At the same time, I would also wanna say that we have made investments to actually increase the team size in support, the team size in our cloud delivery and so forth. At the same time as we grow, we want to ensure we deliver that five-star customer experience all the time. I think I just wanted to bring that point up. It's not just a game of optimization, it's a game of. It's not a game at all. It's like a, you need to have a balanced execution against that metric. Yeah. Yeah Because we are here for the long term. We want our customers to be happy. That's an excellent point, Steffan. Also the point about simplifying it down to grow revenues. Mm faster than cost and Mm You know, boom, you get great results. Yeah. Okay. Thanks both. Next we have actually a couple of questions regarding the deal with the Social Insurance Institution of Finland or Kela. Mm-hmm. The first one. During Q3, you won the Social Insurance Institution of Finland as your client. Now, as you use their name as a reference, do you feel that it has already opened discussions with some of the larger organizations in Finland? Yeah. Well, let me first start with being clear that it was a public tender, right? Obviously got publicized and we're in the middle of deploying Efecte at Kela. In that sense, they're not yet in production and a pre-production reference, but definitely an amazing reference. Mm of choosing Efecte after going through a very diligent high quality evaluation process. Mm Of essentially all the main alternatives out there. I think it was a great test for us. It was a great outcome for us, and we feel very grateful that Kela decided after the evaluation to choose Efecte, and not one of the other vendors there. We do see definitely the market recognizing that deal. Of course, in Finland, it's probably more well-known entity than elsewhere. Yes, we do see the market recognize that case. Yeah. There's even, if we take Kela outside the equation and we just look at the public sector space, let's say, increased discussion about GDPR, cloud services and so forth. I think we are in a really good position to kind of serve the public sector across Scandinavia and across DACH with the flexibility and agility we have in our cloud offering. Yeah. There was recently actually this one large public sector entity in Sweden who did make some major decisions to steer away from some of the global cloud services because of the reasons you mentioned. I do think that us as the European alternative in this space we are quite well positioned to leverage that sentiment out there. We will probably during this year do some things in that space marketing-wise, et cetera, just to make sure that people know. Mm-hmm ... about us and the proposition that we have out there- Yeah That allows customers to get world-class service management, world-class ITSM, ESM, and IGA services from the Efecte platform, from a cloud in their country if required. Yeah. It's just providing that choice, opportunity for customers to have the choice and the alternative. Mm-hmm. All right. Yeah. Next one about Kela. What was the effect of the Kela deal announced in Q3 in revenue and SaaS MRR during 2021? Was the deal part of the strong growth in the Finnish market? In Q4, we did not recognize SaaS revenue from the Kela deal. Maybe just to add some additional color, the SaaS revenue we expect to start during this year. I believe at the time when we publicized the deal and our win in the public tender in the first place, already at the time we did estimate that we will reach that full estimated amount of about EUR 50,000 MRR towards the latter part of this year. Good. Next one. The customers that you signed in the U.K. and Czech Republic, and the one in Poland, do or did they start with ITSM or IGA? How large are the organizations in terms of the number of employees? I'll take it. We're just getting warmed up. Go for it. I hope Tatu has lots more questions. A good question. I mean, these are all mid-sized customers. I mean, the customer in Poland, around 5,000 employees, and then the same size in the U.K. I guess the real question is like what is the revenue impact of these deals? The way we kind of commercialize the Efecte platform is by the agents. We basically have a euro per user per month pricing model, which makes it really simple for the customers to understand the cost. If you look at a bigger organization with 5,000 employees, they usually have tens to hundreds of agents. The way we sell the Efecte solution is that we start with ITSM, like in these cases. That system gets implemented, and then after a year, they start to expand the usage of Efecte. They use Efecte for HR Service Management, for risk management, and that's also visible in actually the numbers, our ability to grow existing customers. That's, I think, the motion we play there. We are really excited about those first customers. We have always said that this partner and building the channel, it's a long-term game. It takes time to recruit the right partner, bond with the partner, build a go-to-market, close the first deal in a new country without any reference in that country. The next step is to do a successful five-star delivery so that the customer is gonna be happy to be our reference. When we have that first reference, getting the second one is gonna be definitely much easier. All right. Long answer to a small question, but to give a bit more flavor and color. Yeah. No, I like it. I think that's super important background just to- Mm-hmm in a way also for- Mm-hmm anyone new to Efecte to understand. Mm-hmm A little bit our model. Mm-hmm. Maybe actually just to clarify one point when you talk about our pricing model. Yeah ... being euros per Mm-hmm ... agent per month. Just to give people a ki- Mm-hmm kind of a hunch of what kind of price ranges. Mm-hmm We're talking about. If you talk about list price for an you know one agent per month. Mm-hmm What are we talking about, Steffan? EUR 79. That's the list price. How we commercially transact that, we do three-year agreements- Mm-hmm ... with the customers. We lock to a certain volume, and it's really good for the customer. They get a locked-in price, and it's good for us as we get that kind of smooth revenue stream across that term of that agreement. Right. If I buy more, I get some volume discounts and- Yeah and so forth. Really easy for the customer to budget. No surprises. Mm-hmm. All right. Continuing on the partner markets theme, how big is the difference in profitability for Efecte in direct versus partner markets? That's a classic question. I think we've been getting that probably every single- Mm-hmm a single one of these Q and A sessions. Maybe our answer starts to get better and better. Yeah. As we practice it. Now jokes aside, the short answer is that our hypothesis for this, remember that, it's still quite early days with these- Mm-hmm Only partner-based markets. The hypothesis is, and that's supported by early evidence, that we would be roughly talking about same type of profitability and margin. It consists of slightly different elements though, you know, in our direct markets, we invest more in effective sales people and that direct sales presence out on the field. On the other hand, in the partner markets, of course, there is a margin that the partner makes out of doing the sales work and often also that first level support. Kind of when you weigh all these different elements, our hypothesis at the moment is that there is no significant difference. Yep. I also want to emphasize that in our existing markets, in Finland, DACH as well, and now we also announced a few partners in Sweden, we already have had for multiple years transacting partners. We do have that experience and from the existing market. In a way, some of those numbers are already visible in some of the SaaS KPIs that Jouni presented. Right. Exactly. Thanks. Continuing on the same theme, in the new markets in Europe you enter, is there any difference in the average ticket size compared to Finland? Ticket size? Could you Could you please elaborate? Yes. ticket, is it the kind of the deal size, I guess? Yeah. I mean, the question is if there a significant difference in the deal size. Mm. When we look at the new markets. I mean, we have not, you know, publicly said what our average deal size is, but I mean, the first deals definitely are smaller deals as we want to get into the market. Overall, if you look at the company sizes and the deal flow, I would not expect them to be any significantly smaller in long term. Mm. as some of these deals we have right now. What we see in the direct markets where Mm. As you rightfully pointed out, we do have pretty good experience. Mm. of working with transacting partners. Yeah. One can say that the largest deals typically have been direct deals. Mm. Then when you look at the volume and the smaller deals, that's kind of been the volume on the partner deal side. Let's see how it goes in the new markets. I do think we have lots of opportunity definitely in that space. Looking into what to expect now going forward, we will focus on sales enablement of the partners that we have signed last year quite a bit during this year. We do also expect to add some new partners during this year. We don't stop that partner recruitment motion either. There is a little bit of a shift towards putting more focus on that sales enablement piece than during last year, where the focus really was to kind of, you know, build that initial partner base. Yep. I mean, while there are a lot of questions coming from the partner channel, and I know it's an exciting piece, I also want to emphasize that we do have a really strong team in place in our direct markets. We have a really good sales team in Finland, in Scandinavia, in DACH, and you know, we are chasing large deals, small deals, everything that we can get in those markets as well. I think just emphasize the importance of that direct market as well. Yeah. Obviously as it's still in the new markets- Mm. It's early days. I do think that it makes sense for all of you to keep asking us these questions, because every single quarter we get more data points. Mm-hmm. We win more deals, we lose some, we learn, we get more partners, and I think we will be able to form a more accurate and exact kind of model of these new markets. Mm-hmm. as we go. Good point. All right. Next one. You have mentioned inorganic growth opportunities for several quarters. If you could choose the business that you would like to add under your umbrella, what kind of business would that be? In other words, what products would you like to add to your current product portfolio? Great question. Something we have spent last year quite a bit thinking about, and we are continuing that work also during this year. I won't comment on exact product areas that we are looking for. There are a few areas in which we are searching. If you think about Efecte, I mean, Efecte is a platform with lots of interfaces and integrations into different systems. Of course, some of those systems would be natural add-ons onto the Efecte platform. At the same time, while in a way one could say that as a SaaS product business, priority one for us is to look at acquisition opportunities to strengthen our platform. At the same time, I don't want to dismiss the other part either that we've been talking about. We are also looking into opportunities to strengthen our go-to-market, and then that could come in different flavors. It could come in strengthening our teams in our existing markets for sales, but it could also help us in strengthening our delivery teams as we are seeing good demand for our services and, of course, with the ongoing talent market situation, also through an acquisition, a smaller acquisition, there could be something done in that space as well. Really, there are multiple different options for us there. I do want to emphasize what we said in the report as well, that we do keep the bar high, and we do see this as a long-term effort. Personally, I would rather us see not do deals than do bad deals just because. I mean, we have a strong organic thing going on. You know, we are really believing in the organic growth case that we have at hand. The market opportunity is big. As we said when we pointed to the capital markets and strategy update, we constantly evaluate how can we fully capitalize that market opportunity and growing as fast as possible organically is an important part of that. Then, if the right type of opportunity comes through our M&A pipeline, then of course we are ready to transact, but the bar is high. Okay. We have a couple of questions regarding net retention rate. With a net retention rate of 150%, one would think that the guidance is too conservative for a 20% growth target. Are you only looking for 5% growth rate? Maybe actually, Tatu, if you can help out and bring up the slide with the consistent SaaS growth. I think that would be a good backdrop for this discussion. Mm-hmm Which is an excellent discussion to have. Thanks for the question. Let's see if we can bring that slide up, but we can start addressing it already. Our team is changing the slide. The huge team here at the Efecte Studios. Yeah. Well, thanks guys for the effort. Yeah. We'll answer anyways without the slide. Oh, now we are close to it. This is about the team. Would we be able to get the slide with the consistent SaaS growth? Yeah. There we go. Yeah. It's the magic of numbers, right? The magic of numbers. Exactly. Of course, what we see there is that we have been quite consistent, for better or worse, with that 20% or a little bit above SaaS growth during the last three years. Now, when you look at the absolute numbers, that 20% growth in 2019 was very small compared to the 20% in 2021 or the 20% in 2022. One of the indicators that you can look at when, of course, estimating any SaaS business is the MRR growth. If you look at the end of year MRR for Efecte in 2021, so the December MRR, that was EUR 992,000, right? Mm-hmm. That represents a, I believe 22.7% or 22.8% growth compared to the MRR in December of 2020. That's one data point. We do all we can, of course, to grow as fast as possible. We do think that, if we can again in 2022 grow SaaS over 20%, that already puts us in a pretty good position. Anything above 20, of course, we take it all, and Steffan and the team- Yeah, we are not gonna stop selling. For sure. You're not gonna stop selling. Selling or delivering. Yeah, it's just those numbers, those are big numbers. Maybe one more reflection. Mm-hmm. For that, can we please get the waterfall slide? The breakdown into growth from existing and growth from new customers. What we can see here is, I mean, if we kind of honestly look ourselves in the mirror, I mean, we've done an excellent job with the net retention rate. Mm-hmm We're growing with the install base. Have we kind of maximized the opportunity to sell Efecte to new customers? Mm-hmm. Absolutely not. You know, there is a lot of customers deciding every day, every week across Europe in some markets that we are in and in markets that we are not in. We do think that there are opportunities for us to grow that new customer acquisition and that's some of the investments and recruitments we've already been talking about. We'll cover that topic also once we get to the Capital Markets Day. But the question, of course, is that will that new customer acquisition growth pace be so fast that it will actually alter the SaaS growth curve upwards? At this point, we feel confident about the guidance that we gave, and we stand behind delivering again 20% or more SaaS growth during this year. It's not gonna be easy, but we have the right team in place and feel confident about it. Okay. Thanks. Next one. Are you still targeting 10% EBIT in 2023? I believe this is a reference to our long-term financial targets that we have previously presented. As you saw probably in the report, what we said about long-term financial targets was that we will update the long-term financial targets with the strategy update in March. As we are in the process of finalizing those, you know, I won't now comment on that, and we'll get back to that in March with the strategy update and give you guys some more detail about that and everything else at the Capital Markets Day on March 9th. Good. Next one. We have still five minutes and a long pipeline to go. I have time. Five minutes. Good. Any lesson you gained in 2021 that has changed your view on how to allocate capital over the next five years? Okay. The question is basically any learnings last year that helped us think differently about capital allocation. I think there are a couple of things to comment on there. I think the first piece is about overall the learnings. I think to me the biggest learning last year was that it's a growth market. I mean, it's not a new thing, but somehow I think last year made it very concrete for us as we started more and more discussions also outside the markets where we've traditionally been in the new markets, and as we saw, as we witnessed continued strong demand even in Finland where we do have a pretty large market share. I think all of those experiences with customers and in the markets help us really realize that it is a strong growth market. That led us also to think that, are we doing all that we can at the moment to fully capitalize on that market? There are things in the inorganic space. I mean, if we think about acquisitions, if we think about from a funding point of view, of course there are different options how we might fund them and which of course are related to capital allocation. That's a topic we have been considering, but no kind of big statements or plans to share about that at this point. Good. Next one. Services business, almost growing at the pace of SaaS revenues. More reasonable that services will grow at about half the rate of SaaS growth in the coming years? Well, to start with we are not guiding services growth, and that's because we do see the role of services as supporting the as fast as possible SaaS growth. If you look at historically what happened was that, I think there were a couple of years we grew services in 2018 and 2019 roughly at the pace indicated by the question, so kind of half- Mm. around half of the SaaS growth. In 2020 when the pandemic hit, we did see a dip. I can't recall the exact numbers, but it was flat or flattish or even slightly down in terms of total services revenues during 2020. In 2021 we saw the bump up. If you kind of think about it, you could think of it as maybe mean reversion type of. Mm thing where if you kind of average it out Mm 2020 and 2021, then you actually end up with that about half Mm ... of the SaaS growth. You know, I don't have a comment or view exactly to share on this year or beyond in terms of the services growth, but thinking about it this way, obviously I understand the question. All right. Thanks. We're closing into the top of the hour. Maybe two more questions. How many public tenders did you participate in during 2021? Ooh, that's a- I mean, if Tough one, Steffan. Can I get my PC and our CRM system up? I could get the answer, but I mean. Maybe you can give a ballpark. Just, are we talking about a couple or- It's 10. ... 10 or- Tens of public tenders for sure. How many people, but Would I be correct if I'd say that we have been more active in public tenders in Finland than what we have been outside Finland so far? Yeah, in 2021. Right. That's also something that we might look at then this year if we can get more active also. Mm-hmm outside Finland in those Yeah public tenders. We do have, in the public tenders we do have a few very unique value propositions that are gonna help the Finnish public sector, Swedish and German public sector to be more productive. Yeah, true. Also not just be more productive, but also meet their increasing requirements. Mm for security Mm being local for, you know. Yeah Data privacy, GDPR, everything. With a cost that makes sense. Rita, of course that makes sense. Here you go. All right. Before the final question, maybe what we can do, we have still a pipeline of questions, but we can post them online after the webcast and our answers to them. If your question didn't get answered, we'll post them later then for you there. Tatu, where we're gonna post them? On our investor pages. Okay. investors.efecte.com. Good. For the final question, for you, what is the main motivation to get up each morning, and what do you do? What do you do? What a wonderful question to end. Do you wanna go, Niilo, first, and I can go second? Oh, thanks so much, Steffan. Or d- Tatu, was that a question truly from the line, or did you make that up? It was truly from the line. Okay. I- Can you please repeat it once more so I have a second to think about it? I wanna see the audit trail. For you, what is the main motivation to get up each morning and do what you do? Okay. Let me start. The reason I joined Efecte, the reason I get up each morning and get to work is I want to be here part of building the European alternative for cloud-based service management. I've been all my life in computer software and actually in SaaS type of models since the early 2000s. When you look at this industry, what we see happening at the global stage is that the Americans and Asians are really dominating this industry. Looking at the top 100 digital platforms of our day based on market cap, some 68% come from the Americas, 27% from Asia, 2% from Africa, and 3%, my friends, 3% from Europe. There's nothing wrong with what the Americans and Asians do. It's amazing innovation. I mean, we all use, you know, some of those tools and technologies, and it's good for mankind. I fundamentally believe that we do too little in Europe. I mean, we are not doing our share. Mm to shape the digital era. When you think about all the things that happen on these digital platforms, it's not just business, it's human rights. Mm democracy, relationships, family, everything. Mm. here at Efecte, in our own small space, it's a similar situation in cloud-based service management, where I do believe we have an amazing opportunity to build a super strong European alternative to the global goliaths in this space, and that really motivates me. What an amazing answer. It's I mean, I concur with you. That's definitely one of the things I wake up. The second thing I wake up is our team. If you look at the individual employees, individual people we have in the Efecte team, waking up every single morning trying to providing a five-star customer experience, making our product better, making our cloud more efficient, providing excellent support, and I really feel extremely proud of being this part of this team. I think it's a privilege to be here presenting our team, and that's what makes me totally motivated every morning. While it might be a difficult morning when I jump to the first meeting, I see those happy Efecte faces and customer faces on the other side of the Teams meeting, I get energized. There, there you go. There you go. Maybe we're not 100% of the time happy, but very close, right? Yeah. We do have bad days as well. We are human being after all. Oh, what a question. Yeah. Thank you. I- Thank you for asking that. I think that's it right now. It's time to- I mean, Capital Markets Day, it's a month away, right? Yeah. Well, it comes fast. March 9th afternoon, please mark it in your calendars. Mm-hmm. investors.efecte.com, where you'll find more details. At this point, I just want to say, again, a big thank you for all of you joining us. Great questions. Makes it fun also for us, kind of the highlight of the quarter always. Yeah. I look forward to seeing you all again then at the Capital Markets Day and the rest of the earnings calls during this year. Thank you. We are back to Q1. Cool. Bye. Bye-bye.