All right. Hi to everybody from Helsinki on the twenty-fourth of October, and welcome to the Heeros Q3 results briefing. Before starting, as usual, let's say safe harbor statement. Presenting today, also as usual, myself, Niklas Lahti, the CEO of Heeros, and Juho Pakkanen, the CFO of Heeros, who will take it away. In general, the systematic work in Q3 delivered quite solid results. But, you continue, Juho. All right. Thank you, and on my behalf, also welcome to this Heeros result briefing today. We'll start with the key figures for the third quarter. Third quarter followed our expectations. Revenue were at the same level as last year, and contract revenue grew by 3%. After nine months, we are at the same level in total revenues as a year ago, as well as in recurring revenue part, and contract revenue has grown by 4%. And although the revenue is still affected by the transactional part of the business, Q3 and the cumulative revenue are there on the line of last year. If you look at the EBITDA, the third quarter EBITDA was quite strong at EUR 1.2 million, but this includes extraordinary income of EUR 1.5 million due to non-recurring extraordinary income and non-recurring costs of EUR 159,000. And as was stated in the report, the EBITDA was positively affected by the Business Finland cancellation of EUR 1.5 million loans related to Taimer Oy product development for projects that were implemented in 2018 and 2019. In this section, our admin team did a good job in making the application for the Business Finland and make the loan cancellations happen. Those loans originally were meant for international expansion of Taimer business at the time, and at the end of the projects, the business outcomes were not achieved, and that's why we were able to cancel the loans. We have the final decisions from the Business Finland already, so there's no clawback risk or anything about this. If you look at the third quarter Adjusted EBITDA, it declined by 10% compared to previous year. This is due to two factors. One is the high performance bonus provisions, and the other one is holiday salary provisions, which were smaller. The release of those provisions were smaller compared to last year. Due to the improvement in the efficiency this year, the performance bonuses are quite large during this year, and the holiday provisions were 90,000 EUR higher than a year ago in Q3. During the January-September cumulative figures, the adjusted EBITDA has grown by 26%. This improvement comes from the cost savings measures we've done over the 18 or so months, and the efficiency in the company is clearly improved during the time. Although we do not give any guidance on the Rule of 40, we are still reporting it, and the Q3 was a little bit lower in the adjusted 31% versus 41%, and cumulatively, we are at 27% compared to last year's 25%. Due to the good profitability development of Heeros, we are now a net debt-free company. Let's have a look at the revenue and profitability development trends, the revenue, contract revenue, EBITDA, and adjusted EBITDA, comparison to percentages to last year and change percentages in January-September periods. The decline in transactional volume resulted in flat revenue growth percentage compared to previous year. Cumulated contract revenue growth was 4%. We have been able to monetize our contract base with price increases throughout the portfolio at Heeros. As already stated, the focus on the profitability, we started last year, and we see both in the EBITDA and adjusted EBITDA. Third quarter profitability is always highest due to the release of the holiday salary provisions. Although the reported EBITDA at the moment is already higher than last year in total, this is due to that extraordinary income, as mentioned. Adjusted EBITDA grew by 26% because of the cost optimizations. We do continue investing in product development and sales, and this has already resulted in better order intake ARR than a year ago cumulatively. About the transactional part. The transaction revenue, which is about 16% of our total revenues, this was still affected negatively by the macroeconomic uncertainty in the third quarter of the year. The turnaround in the economy was there in 2022, and we have not been able to come back from that level still. The decline in the transaction volume is partly evident with the paper sales invoices, which have been relatively lower impacted in the profitability because they have a higher cost in it, but they do affect on the revenue part of the business. Now, in the third quarter, our revenue transactional volumes were at a minus 6% compared to previous year, at the same level as it was in the second quarter. And after nine months, we are at minus 7% compared to previous year. Next up, SaaS metrics. So the annual recurring revenue, net revenue retention, average revenue per account, and order intake ARR. The annual recurring revenue at the end of September was about 11 million, slightly down from the June figures. This ARR, which is a typical ARR metric, is calculated by the annualized September contract revenue, plus the transaction revenue from last 12 months. Price increases throughout the Heeros portfolio made an effect on the contract revenue base from April onwards, which can be seen as a positive upward tick in the ARR development in the graph. The second graph, net revenue retention, at 102% at the moment, compared to 106% a year ago. This includes both the contract revenue and the transactional part of the revenue, and the trend is thus down. Still above 100%, we do have sticky customers at Heeros. And then the average revenue per account at EUR 58 a month. This metric includes all the revenue, so of course, the transaction base is included in this as well. The number of so-called smaller paper customers has decreased due to the pricing and packaging changes we've made, and also the smallest PSA customers have left us due to price increases. But, the aim of these packaging changes and pricing changes is to aim the level of digitalization within our customer base. In the last graph, we see the excellent quarter two in the sales, followed by the third quarter, where we managed to close EUR 122,000 worth of ARR sales. Cumulatively, we are at a higher level as than last year. All right, next, Niklas, to continue the key message. Thanks a lot, Juho. So I will be quite short, I'd say, today, as Q3 for our business usually is not that eventful. We come back from holidays, which usually takes July off and a bit of August, and then we're almost in the so-called Syysloma already. That being said, Q3 went as expected. The systematic work that we have been doing in the whole organization, even in the admin team, as we got great results from debt alleviation, has paid off during the past eighteen months, with the progress aligning with our plans. We met our sales targets, we met our profitability targets, and even though the continuing decline in transaction volumes continued to impact revenue growth, we managed to get on top a bit. The adjusted EBITDA decreased a bit by around nine K compared to last year. This was really due to the fact that people took holidays in a bit different way than last year, essentially making the Q2 a bit elevated and then Q3 a bit lower than last year. That being said, these are not really substantial figures, and we should be continuing to increase our profitability in the way we expected. The new ARR intake remained on par with last year, where we reached the targets for the quarter. These results were achieved with a quite sharply lower sales and marketing spend than a year ago, making, in my opinion, the results themselves rather positive. And what was even more positive was that the sales momentum that we experienced in Q2 remained to be quite strong. So the number of leads, meetings, new sales, deals continued to increase significantly compared to the same period in the past two years, not really having accurate data for 2021. The low transaction volumes, driven by the still low economic activity, means that the overall development of revenue was still muted, and as commented in Q2 report as well, the lag from a so-called sold case to started invoicing meant that Q3 revenue ultimately didn't grow that much. Which meant that the quarter ended with almost exactly 11 million EUR of annual recurring revenue. The net debt position in the company has improved significantly, so that the company is now clearly net debt positive from a negative 1.5 million at the end of 2021, 2023. This is driven by solid operational profitability now over the past 18 months, good cash conversion, as well as the non-collection of these two governmental loans. Finally, you know, a bit of positive news about the quarter. The efficiency of our extensive portfolio and organization was really put to test when the government decided to change their VAT rate. Obviously, this is not an expected, let's say, product development thing for us at the start of the year, but we successfully updated all of our software, all of our third-party integrations, and essentially all of the products within the company in a very fast way, which received a lot of praise from both our customers and our partners. It doesn't sound like a lot that you change the VAT rate from 24%- 25.5%, but internally, having operated in this business since, what, 2000, we have a lot of smaller and larger integrations here and there that needed to be overseen, tested, and made sure that they work. Despite the need for the sudden adjustment, the planned product development roadmap continued very effectively, and we have also managed to achieve our product development goals for the year. A bit on the outlook for 2024. Not that much to go for the year. The strong momentum in new sales will be reflected in revenue starting from the final quarter of the year. At the moment, we have a very large, contracted revenue backlog, around EUR 27,000 per month at the end of September 2024. This is due to several reasons, mostly because the customers that we managed to get simply had to cancel their old agreements, which had sort of what you call the dates of cancellation for the end of the year. It's a bit of a one-off type of situation. Usually, the lag from a closed sales case to actual revenue is a bit smaller. In this case, it has been quite long, and most of these customer implementations will be delivered during November and December twenty twenty-four. That being said, it means that Heeros has already secured quite a clear growth trend for the first quarter of twenty twenty-five. The weighted sales pipeline at the moment is on a positive level versus the situation in 2023 or 2022, but this is very limited bearing to the actual revenue for Q4 2024, due to the long sales cycles and long cycles to conversion of revenue. There is still some hesitancy in the PSA side sales. Many deals that we expected to close in Q2 or Q3 have been pushed back multiple times. The macroeconomic market for our core PSA clientele is still quite difficult, but we expect to see good results there as well from the start of 2025. The total financial package, payroll, and our new HR product have been the clear growth drivers for the year of 2024. Only two months left, we will reach, as a company, our internal targets for the year. Our key targets have been improving profitability and operational efficiency, while at the same time improving sales as measured in new ARR intake. In all of these targets, we have made solid progress and have continued to improve our financial profile throughout the year. Overall, it has been a good year so far, and I expect there will be no changes to this in the last two months to go. For the financial outlook of twenty twenty-four, it's still the same, so we expect both revenue and EBITDA for twenty twenty-four to improve from the period a year ago. That is it from our side, unless there are some questions from the audience. Yes, so if you have any questions you wish to be answered by us, it's now good time to write them down, and we will go through those. ... One question about the order backlog we have at the moment. It was stated by you that it is quite substantial. Is it so that this is something that is not so typical for us at the moment? Yeah, so in our business, essentially, the order backlog comes from multiple items. Essentially, what we do is we report the so-called sold ARR intent, so this, to us, is deals that we have sold, yet but not yet delivered. This means that essentially when we close deal, it's dependent wholly on when the customer can actually implement this deal to their systems, so for instance, if we close a deal that has a ERP component attached to it, for instance, the customer is changing their ERP system, we only get invoicing when that deal is actually in production, and there is a few larger deals like this that are currently in the backlog, which means that the backlog itself is elevated and will be delivered mostly at the end of the year. It is committed revenue, so that it will be visible in the revenue then? Yeah. All right. A question we have is about the international business and what is the status in that? Yeah. So what we have said over the year is that we haven't really focused on the international business side during twenty twenty-four, in an effort to actually concentrate our efforts in Finland and make the company profitable, which we have achieved. Business still continued throughout twenty twenty-four, so we don't really have a strong focus on international business. That being said, we are still present in the Netherlands and do business mostly internationally for Finnish companies headquartered here, and actually have managed to close a few deals on the international business side in Q3 as well as the recent larger contract extension in the Netherlands that we actually closed yesterday. Good. Any other questions? We can still answer those if you have any. One comment about the sales. So we have a good sales momentum at the moment. When do we expect to see results on that good sales momentum into sales and revenues then? My own expectation is that this will be especially in Q1 and Q2. So essentially, when we say that we have gotten good leads, this means that we have gotten a lot of new good leads in May, June, August, September. Usually, the process starts from there. So we take first sales meeting. This is then converted into a new deal. It takes a month or two months, then we go to contract negotiations, and then we go to implementation. So the exact actual sales cycle, especially in larger cases, usually takes from four to six months until the closed revenue actually hits our account. Then even some more time, depending on the amount of customizations and implementation. If we get great SQL amounts, so sales qualified leads now, this usually converts only at, you know, six, seven, eight months down the road. So in our case, we would expect to have a very good Q1, obviously, still a bit up in the air. Mm. Then there was a question about the bonus provision. Maybe this refers to... overall bonuses or? Yeah, I think overall bonus model question, what we have. So we have the yearly bonuses, which are for the whole personnel based on the operational measurements we have within the company, as Niklas was mentioning there. And this is on a high level, we have a one month of salary would be the target level in that bonus model. We are progressing quite well according to the target. It's about one month of salary, give or take. That being said, we don't publish exact numbers on bonus provisions in our report.