Good day and thank you for standing by. Welcome to your conference call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question over the phone, please press star and one on your telephone keypad. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. And I would now like to hand the conference over to your first speaker today, Mr. Thomas Heath. Thank you. Please go ahead. Thank you very much, operator, warmly welcome everyone to this conference call discussing Sinch's acquisition of Pathwire. My name is Thomas Heath. I'm Chief Strategy Officer and Head of Investor Relations. With me today I have our CEO, Oscar Werner, and our CFO, Roshan Saldanha. With those opening remarks, I'll hand the word over to Oscar. If you're on mute, let's try again. We are trying again. Sorry about that. Thank you, Thomas, and thanks for listening and thanks for your time. We are extremely happy to announce the acquisition of Pathwire today. I think it is a foundational deal, and it is just as in Inteliquent, really positioning us to be a true leader in this very large and exciting CPaaS industry. Why I think that, we will go through on these slides, and then open up for any questions that you may have. Operator, if you go to slide two, please. This is the slide we showed many times before. We got a revenue of $1.8 billion, adjusted EBITDA $1.2 billion the past 12 months. Now given the last very significant acquisitions, you obviously need to add the non-closed EBITDA there in order to get the true run rate when all of these are closing. 2,000 people, but we're going to be over 3,000 when these acquisitions close. 27 countries. The line we have here is customer engagement through mobile technology. Customer engagement that you get to your mobile phone. I think we can all agree that's actually done in a multitude of channels. This is what this deal is about. Scalable cloud communications for messaging, voice and video. We can probably update that to email. Serving eight out of 10 largest U.S. tech companies. Thinking about all of those customers, they all have significant text, voice, and email usage. In fact, any company you talk to, and you can probably go any company on the planet, will use email at scale. I think that's the significance of this channel. I think almost all companies which has a large penetration consumers are using voice for some purposes, email for some purposes, and text or mobile messaging for some purposes. That is again, what this deal is about, the ability to serve the enterprise on those areas, right? Text has 100% consumer penetration. Email is very close to that as well. It's a very similar type of channel. I think it hits a lot of the statements on the slides. It's just very much true for email as well. If you go to slide three please, operator. Transaction highlights. At first, this is a leading cloud-based email communication platforms for transactional emails. That is not for marketing emails, but for transactional emails, which is more the delivery of your mobile boarding pass. That's one of the world's leaders, and that's part of our strategy, really. If we go and acquire somebody on a big channel, let's be best of breed. This is truly best of breed on the globe in email. The other thing which is very significant for us is it has a proven developer-centric go-to-market model. One of the big go-to-market models in the CPaaS industry is selling to developers, because they may sit the developer at Microsoft or at DoorDash or at a medium or small size company. They all have developers. Sometimes you can sell to these via main door, knock on the door, and the other ones, but sometimes it is just the developer signing up online. We have not been good at this developer-centric go-to-market model of supporting developers. Pathwire is. They're really good at this. That's their main go-to-market model. Adding that knowledge to us is very significant. They're also very well positioned in a growing market. Market size estimated to 16 billion by Technavio and transactional email making up more than 60%. This is a good market in its own. It has a highly attractive financial profile. There's historical revenue growth consistently above 30%, with gross margin close to 80% and adjusted EBITDA margin above 35%. Sometimes you talk about the rule of 40%, like growth of 20% and profit margin of 20%, rule of 40%, and if you're above that. This is more like rule of 65% or rule of 80% or rule of 70%, right. It's very attractive growth profile on this, which has obviously attracted to us. You see significant cross-sell opportunities. We know that 100% of Sinch customers are using email, and we know that a vast majority of Pathwire's customers are using other channels such as messaging and voice as well. In fact, they're starting to sell messaging, and their CEO says, "I just don't seem to be able to stop selling text messaging." It's a lot of crossover there. Funnily enough, again, I got the comment from the MessageMedia CEO, "Oh, email is our number one channel." We had a discussion yesterday, or a couple of weeks ago, where we thought Pathwire or Mailgun was the best company on the planet doing this. A lot of synergies across our different units. That is the transaction highlights and really focusing on the first two from an operational perspective. It's an email leading communication platforms, and it has a strong developer go-to-market. All right, operator, let's go to the next slide, please. Really, a couple of months ago, almost one year ago, when I first heard about the possibility of this transaction, but also the email market, we were a little bit, "Hmm, does that really fit into CPaaS?" We really thought, took a step back, and how do we think about this market, really? I think the only conclusion you can get to is if you think about CPaaS throughout the customer journey from an enterprise or from a consumer perspective, I think if you go to yourself, what channels are you using to interact with enterprises? I think the answer will be, well, sometimes you're using text or mobile channels when you want the notification of your doctor's appointment or the notification of your flight is delayed, then you want it in your inbox because that's what you see, you read it fast. A little bit more costly, shorter format, but very high attention rate. Sometimes you want to do it via voice because it doesn't really work to do this via text. I need to speak to somebody as well. Sometimes you want to call your enterprises, and I can guarantee that sometimes all of you, and all of the people I meet, are also, in many cases, using email as the third big channel to consumer communicate with enterprises. These are the channels that consumers are using, and conversely, these are the channels that enterprises are using to communicate with their customers. If I, as a company, want to serve all enterprises with all their main communication channels, I need to cover the main channels. That is what we have done with both first Inteliquent and then with the Pathwire acquisition. I think that's a very powerful position, and very few companies can do that at scale on a global level, but we're definitely one of them. That's thinking about it from the customer journey. This actually makes very logical sense because then you can serve your customer across all the main channels. All right, go to the next slide, please. That is the reason why the previous slide was the reason why email made sense. Now on slide five, it made sense, why does developer go-to-market make sense? I think all of you on the call when we acquired MessageMedia, we said, "Okay, we're good from the Sinch side at the enterprise go-to-market. We're now adding the SMB go-to-market with MessageMedia." The SMB, you should think about Joe Mechanic's shop, or you should think about the hairdresser. It's not a developer. It is a business user, often CEO of that company or owner of that company, that goes in, "I need a easy web tool application where I can solve my communication needs." They sign up online with a credit card, and then they go. That's what MessageMedia does. We added that very strong go-to-market channel, but we had a hole in the middle, which is Twilio stronghold, which is the developer go-to-market, and we are good at enterprise, we are added SMB, but now we are also adding a company which is very strong at the developer go-to-market. The developer go-to-market is the developer at Microsoft or at Wells Fargo or at a small company who just search online for, "I need to solve my communication need for this request I got from my CEO or product manager," or something like that, and they sign up online with a credit card. They are using not a web tool, they are using an API. You need to be a developer. You code into this API. They are going on GitHub, they are looking at the APIs, et cetera. It's a developer go-to-market, which is different to the SMB market and very different to the enterprise go-to-market. Now we're adding a company that is very strong at this developer go-to-market on one product, and we aim to use Pathwire's proofs on the developer go-to-market in email to expand that to approach developers in voice and developers on messaging, from this team with their strong experience. We think it's much better to go that way than to build it ourselves, because having somebody who's proven that they can do it before and can do it at scale is obviously more powerful. From a go-to-market perspective, this also fills a box for us. Finding a company that fills both a box on the product, on the email side, and a box on the go-to-market side, extremely good fit for us, and I think it will propel us to really new heights and really doing good things together. That's the two main things, two main reason to why we believe this acquisition is super good. All right, operator, next slide please. This is slide six. You can see on the left graph as we're acquiring companies with higher gross margin and higher adjusted EBITDA margin than us, which is extremely impressive. We're very profitable ourselves, right? These companies actually, related to the revenue, have a higher profile. They have a lower COGS, so that's not as odd, but still, it drives up both our gross margin and it drives up our adjusted EBITDA margin, which we think is great. The other thing that happens, which is very significant, if you look to the right-hand graph, we're really turning the company from a one channel or messaging in many channels, but it's one category of channels, to from 85% on that channel to being around about 50% on that channel and balancing the company to all the other channels. You can see this, you can support a much larger need of the enterprise needs, but it's also obviously from a diversification side, a much stronger and more well-balanced company when you have this type of broadened growth, or broad GP generation. We're really turning the company to be through all channels in CPaaS and really showing that by gross profit generation. I think that's very, very powerful. Having on the right-hand graph, 55%, 51% messaging, 16% voice and video, 13% email, and then 19% operator, which is the largest part is coming from the Inteliquent serving the U.S. operators on the voice side, right? I think that's a very, very strong and diversified company. All right, operator, slide seven, please. This is what IDC did, I don't remember, maybe 12 months ago, maybe nine months ago. They were really picturing the companies in this market, and you can see the jump we did from 2019, we're the blue blob in the middle. We did a jump to 2021. We're the orange number two blob in this market. We have repeatedly said, "All right, our goal is to be number one or number two in this industry. We think the market is fantastic, the market is very large, and we want to be one of the two largest players. What we're doing now is exactly according to what we have said. We're really taking that step and really distancing the midsize companies or the large, but doesn't have all the channels or not as global companies, basically. I think we're definitely putting some ground in between us and the others and really singling out two leaders in this industry that are doing multiple channels at scale, basically. That's the goal here. That's what we're doing, and we think that position of being able to serve global enterprises, all channels on a global basis is very attractive. We're just taking the next step to this slide, basically. All right, operator, going to slide eight, please. Where we have shown the Gartner model of the CPaaS industry several times, this is now the new Gartner model. They just updated this. They had a couple of layers. As you can see, the core of this is really filling two core boxes. One is the email box, as you see in the bottom right-hand corner, and the other one is the developer blogs, developer relations, certifications, events, and I mean, developer go-to-market and support for developers and products for developer on the left-hand side. Again, repeating the two key rationales for doing this deal. That's the two things. It's very clear if you go down the list, they would all say that's a core part of the CPaaS industry. We want to be a leader in the CPaaS industry, and then we got to fill the main boxes. It is also actually satisfying much more than that, like they have a great analytics offerings, they have sentiment analysis, they have some AI tools, et cetera. I could also go in and half code or 20% code or a couple of the other boxes, but let's not go into that. It's like on the top level, this is the two things, but they'll also strengthen our ability in a lot of the other boxes. Makes sense from a wide variety of reasons. As you can see with recent transactions, we're ticking off a large part of the boxes in this type of chart, and it's very hard to do so. Doing that at scale on a global level, very, very few companies will be able to do so, but that's, again, following on the strategy of being a leading CPaaS player in the market. All right, operator, slide nine, please. We've shown this slide many times before for those of you who have been on our calls before. We do technology and go-to-market acquisitions, and we go scale and profitability acquisitions. Technology and go-to-market being, we need this technology and go-to-market knowledge. We typically see them together. We make a make or buy analysis, and we think it's better to acquire than try to build them ourselves because it will go faster, and we're going to get a better service. That's when we kind of try to fill a technology or go-to-market box. The other one is scale and profitability, so really acquiring sticky customer relations, adding to the EBITDA, leverage shared platforms, adding operator connections, et cetera. This truly fits both categories. Trying to build an email service from the ground up today. It's going to be close to impossible, extremely expensive, take many, many years. When you get there, all the other players will probably have moved four years ahead. It's going to be very hard and extremely expensive. The other part on the go-to-market, adding a developer go-to-market is expensive as such. We've been trying to find ways to do it, but not really found the ROI to be worth it so far because we had so good ROI in the other channels. When we found the companies doing this at scales with 35% profit, great, let's do that, let's build on that, add that developer go-to-market to the other channels in a strong way. That's a very good way of covering that go-to-market model for Sinch. It's a definite take to go-to-market. It's also obviously also scale and profitability, just the 35% EBITDA margin, 30% growth, this type of size of company adds to our scale, adds to our profitability, obviously also ticks that box. If operator go to next slide, if you draw it would definitely be in the top half, both the email and developer go-to-market, and it would be on the scale and profitability in North America primarily, but also across Europe. A lot of revenue, a lot of gross profit, a lot of EBITDA coming into the company, which gets into the credit pool and makes us a very strong and diversified company. Operator, slide 11, please. The rationale, founded in 2010, leading developer-centric, cloud-based email communication platforms. More than 100,000 paying customers using Mailgun and Mailjet. That's their two main brands. They're signing up online hundreds or thousands of customers on a recurring basis. It's very good customer acquisition machine, but it's signing up online with a no-touch model. Headquartered in San Antonio, Texas, 290 employees worldwide. The rationale is very straightforward. We gain a leading product offering for email. We dramatically strengthen our developer go-to-market and has a very attractive financial profile. It hits home on all these three points, which is truly what we look for. Another point which is always important for us, it's the culture fit. This company has a great culture fit. They are truly focused on profit. They've been profitable since day one, just as we have. They're a non-excessive company. They're really down to earth. They are not the high flyers. They are cost-conscious. The CEO just told me when he talked to a couple of our teams, he said, "I love the Swedish word lagom." Lagom means no excesses, down to earth. I think it's a phenomenal kind of view from them of being this ambitious, this high growth in the world's biggest market, but loving the word of lagom or being non-excessive and down to earth. I think it's just a great culture fit with us, and we frankly have a lot of fun on all the calls, so that's also great things. Integration with these significant revenue synergies from mutual cross-selling. Basically all of our customers, we know they use emails. How can we open the doors to Pathwire's? Basically saying, "Well, take this 100+ customers work. Let's bring the Pathwire team in. Let's have a call with them. Can we cross-sell to all these big brands that we have?" On the other hand, Pathwire is already selling quite a bit of text, and expanding that, selling Sinch products into Pathwire. As you heard MessageMedia, their number one request is, can we get email into our offering? Cross-selling Pathwire products to MessageMedia's 60,000 customer base is also going to be a very strong channel. Significant revenue synergies. Using our global footprint to accelerate international expansion. Then using Pathwire expertise in developer go-to-market, making them own developer go-to-market across all channels. It's a relatively low touch integration because they will be run as a separate business unit. This is a profitable company. It's a large company that will be useful. Won't merge the platforms underlying, relatively low touch on integration because they will kind of operate on its own business units with their own platform and run this thing. Less concerned about that, even though it's always a lot of work, of course. Roshan, if you would do the financials on a high level, that would be good. Thank you. Thank you, Oscar. Again, pleasure to speak with all of you on this great announcement. We're acquiring Pathwire and paying $925 million in cash and delivering also 51 million new Sinch shares to the sellers. At the closing price yesterday and at yesterday's exchange rate, that gives us an implied enterprise value of $1.9 billion or SEK 16.6 billion. This transaction is expected to close before the end of 2021. We expect to incur integration cost of SEK 75 million over 18 months post-closing. This is, of course, to drive the revenue synergies and obtain the revenue synergies, but also to integrate the Pathwire business into the Sinch business in terms of common platforms, so finance, HR, and other administrative systems. On financials for Pathwire, they have revenues of $132 million expected in 2021, with a high gross profit percent, close to 80%, and gross profit of $104 million. Again, strong adjusted EBITDA at $55 million. This is a company that has tended to have adjusted EBITDA margin in the high 30s, as well as a consistent pro forma organic growth above 30%. This contributes really well to Sinch's financial profile as well. Oscar? Thank you, Roshan. Let's operator with code slide 12. This company is targeting transactional email, so really the payment confirmation, the purchase confirmation, all of that. It is not so large in the marketing email side. It's really focusing on having a high delivery rate of transactional email. This is also, I mean, I've gotten that question a lot of times on our text message volume. It is mainly the transactional side, basically appointment reminders and things like that. The fit is very good in that sense. Prime focus being on the transactional email side. Operator, on slide 13, please. When I look at it on the outside, it's very simple, right? Sending an email, why is that a problem? It is actually not when you go through it, and this has been a learning experience over the last year for us in Sinch, because we looked at this market for quite a bit now. Sending an email to mailbox is easy, but getting it into the inbox and making it read and actionable, it's another story entirely. Over 90% of incoming email is blocked by inbox service providers, with only 8% of all email traffic making it to the inbox. Deliverability is the rate in which messages are being sent in the inbox. That's where Pathwire is well leading. It also says, if you want to do this, you can't focus on too much marketing emails because you need to focus on the emails people really want to get, otherwise, you fill the inbox. That's the kind of the core focus they have, and I think we can all agree that's something that we all are using and all need. We need it delivered to the inbox, not in any spam filter, basically, to the emails that we need. Operator, next slide, please. It is also an API platform for developers, so very strong at that. Some 20+ API. Fast onboarding, so the product for developer is usable in less than one minute. Again, you go online, for developer, you get to be able to send email through this machine in less than one minute. It's a very powerful offering. As you can imagine, all these developers around the world were looking for communication, signing up this fast, super good, and we want to take this model and bring it to all our other products. Deliverability rate is 98% versus industry average of 83%. That's another extremely strong point to this company and why they keep on growing above industry average. It's scalable, cloud-native, on a global delivery, 99.99% uptime. That's a very strong part, this developer offering, basically, and ability to talk to and serve developers well. Operator, on slide 15, please. They also have Mailjet. Mailjet, it's a smaller product, but it's a marketing platform. It's a kind of a platform for marketers. One of the most advanced web tools, like drag and drop email builders on the market. Seamless collaborations for features for designers and developers, and very advanced automation to onboard new recipients, reward action, and reactivate inactive users. Here again, you can see the web side, the kind of online go-to-market, very powerful in this market, and that's truly where we're turning Sinch as well. Coming from the selling to the world's largest enterprises with a rock-solid quality, really turning and getting into this rapid fire, web tool, online go-to-market with both the MessageMedia and the Pathwire accessions, I think it's going to be very powerful for us going forward. Still, you sell to a lot of big brands like DHL or American Express. I mean, they all use these type of services because they need the simplicity in order to handle the product. All right, operator on slide 16, please. Pathwire managing the entire email life cycle, so validate, collect real email addresses, define it, segment it, create it. Being able to create beautiful emails that companies actually read. Just ensure that it actually works, sending it, so sending it, the deliverability, and then optimizing it using a good advanced analytics and campaign statistics tool. All of these things they do. It's a lot more than just click the send button and make sure you deliver an email, basically. This is what the entire SaaS tool does. All right, slide 17. Loved by developers, trusted by business. You can see a couple of these. I'll leave it to you for read for later. The first one, "Email delivers super fast straight to your customers' inboxes." I just read the green ones. "The reports are fantastic." "Mailgun makes it easy." "Mailgun is consistently fast." Hacker News, that's truly a developer-centric view. "We went from thousands of emails on Mailgun to over 7 million emails across 140 domains, and we've never had to account for a reputation issue over the years we've used them." This is from a developer news outlet. They know what they're talking about, and they really come to this type of business, so very strong. On the second slide, "Thanks for the amazing email framework. For any developers out there who need response email, this has been a wicked solution." Truly getting to the tech arena. I think that's very strong with this business. All right, operator, slide 18. Pricing, very short as well, but pricing on a SaaS model, really pricing a monthly fee, monthly recurring fees. A lot of these companies are very small, but they also sell to the Amexes and the FedExes on completely different. There, the revenue per month gets very large, of course. Their stronghold has been this developer go-to-market, but now also having signed some of the world's largest enterprises and seeing the platform is there, they can deliver. They just haven't scaled out their go-to-market. That's what we have, 400, 500 salespeople around the globe that we can now open the doors to the world's biggest enterprises and start selling this platform. I think that's very powerful. 19, this slide, I will leave the next to you, Roshan. I think this again shows the transformation of the company that we're doing. We're really having strong organic growth. It's always the core for us, continued around the core business. We're really truly making a jump here to truly be one or two in CPaaS, that's what you're seeing with these latest acquisitions. Inteliquent adding voice, big channel. MessageMedia adding SMB go-to-market, a very big channel. Pathwire adding email plus a developer go-to-market. Three extremely significant and pivotal transactions that we have done here. Pro forma, last 12-month revenues of SEK 20.4 billion, gross profit of SEK 7.2 billion, and adjusted EBITDA of SEK 3.2 billion. I think that just shows the power of the combination of these companies, shows the power when you are profitable yourself and acquire truly highly profitable companies with the same culture. I think it just shows the power of that type of model that we're applying here. Roshan, anything else you want to say on this slide? Then if you take the rest of the deck here. Nothing to add really on this slide. I think you covered it very well. The growth profile as well as the distribution of the revenues across all these products is very exciting for the future with the combination with Pathwire. Thank you. Operator, can you please turn to page 20, or slide 20, where we show the financial targets. Our two financial targets, again, to remind everybody, is adjusted EBITDA per share to grow at more than 20% per year, and we want to keep net debt to adjusted EBITDA on leverage below three and a half times over time. At the end of Q2, we grew adjusted EBITDA per share by 38%, and net debt for EBITDA, it was reported at 9.6 x negative, which means essentially the cash position at the end of Q2. On the next page, slide 21, operator, if you could turn to that, you will see the pro forma net debt over adjusted EBITDA. We're starting with obviously the 9.6, which was the Q2 2021 reported. If we add the adjusted EBITDA for the acquisitions which are not included on a full year basis in Q2 2021, and that is primarily then ACL, Wavy, and SDI, then we would have a Q2 2021 pro forma leverage of -8.8. Together with Inteliquent and the payment of Inteliquent, that would bring us to -0.5. Going forward with that, with MessageMedia and with MessengerPeople, we would have had a pro forma leverage of +2.7x. Together with the Pathwire announcement, we've also successfully announced and closed a directed share issue of SEK 6.6 billion, or $750 million. We're super happy to get the support of our existing shareholders, but also some very select new shareholders including Canada Pension Plan. Together with that share issue and with the announced transaction of Pathwire, our pro forma leverage would be 2.7x. I think another key point to note in the Pathwire transaction is that we're delivering a large part of the enterprise value through Sinch equity, which also shows the strong faith that the current shareholders of Pathwire place in the combined future of Sinch and Pathwire. With that, I'd like to hand back over to you, Oscar, I guess, for final comments and winning. All right. Thank you, Roshan. Again, I think it's a pivotal transaction. If you see it together with Inteliquent, this is truly about can we serve enterprises with all their main communication channels across the customer journey on a global level? I think both Inteliquent and Mail and Pathwire really puts us in that position, covering the three biggest channels, messaging, voice, and email. The other one is adding a strong developer go-to-market which we didn't have, alongside our strong enterprise go-to-market and alongside MessageMedia's strong SMB go-to-market. I think it's very powerful. These are the two main points that made, to me. This transaction is just super good for Sinch, and I think it will propel us to really good positions in the future. I think it really puts it in a position to be able to be a winner. I think there will be several, but a winner in the large CPaaS market. With that said, thanks a lot for listening. Open up for any questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, you can press the hash key. Once again, for the participants over the phone line, please press star one if you wish to ask a question. Your first question comes from the line of Daniel Djurberg from Handelsbanken. Your line is now open. You may ask your question. Thank you very much, operator, for taking my question. Also congratulations to another attractive acquisition and to broadening your technology base and the revenue base substantially. I have a question starting on the potential for upselling and cross-selling and your email channel, or normally the email channel is a little bit less of a success rate, you could say, and that could give opportunities, I guess, for some kind of selling as a fallback services to Pathwire, perhaps. Still, you comment about quite low touch integration from a technology standpoint. Is that doable at all to have SMS or other channels as fallback to emails? If you could comment on that would be great. Also, if you more or less from day one can, the revenue model, they have the scale model, if that works already from day one for your enterprise go to market, including SDI's large customers. Thank you. Very good question. It shows that you understand it, and I love the question, and you're 100% correct. Yes it is, and that's one of the key things that I maybe should have commented on, but it's not only serving enterprises with the, these are the four channels, you can buy them separately. It is also, and maybe most interestingly saying, "Okay, I will make sure I get the message read by your consumer." You will say, "Okay, we will take care of the optimization in between channels for you, and we will use the channel that is from a data model proven to be most successful." That may be starting with an email, and if you're not reading it, then you get reminded by text. For another person, it may be you start with an email and then WhatsApp, and for a third one, it's starting with email, but then having a voice call for another use case. It's optimizing that. Extremely interesting, and I think that's where the market will truly turn. I think if you can't then do all the channels, it's going to be hard to optimize. 100% agree, that is where the big data and the data models and all that comes in. 100% true. That does not say that you need to integrate the email platform to the messaging platform and/or the voice platform, simply because they're too big, they're too much at scale, and they do different things. That's like integrating a car, a boat, and a plane. I think when you want to go to your vacation, you would take maybe the airport train to the airport, and then you take the airline to your destination, then you rent a car, and it's just a little bit same thing, right? Basically, what you integrate is the layer above. You need a data layer above that can track the data across all of these channels. That's actually, it's more a layer above, which we need to figure out together with Pathwire and Mailjet. That's not really truly integrating the core platform, and that makes it a lot easier. On the sending side, it would be adding email to our Conversation API, but that's really how the Conversation API is already built. It's built for multiple channels. It's got 12 or 15 channels already. Adding email there, it's just, I'm simplifying a bit, connecting the email API from Pathwire up into the Conversation API. That's actually how it's actually built. 100% true, 100% right, that type of integration is much, much easier than porting all the traffic customers of one platform to another platform. Perfect. Thank you. May I also ask you on, I just saw last week on Inteliquent that they are expanding its scope to Europe and many other markets like New Zealand, Thailand, Australia, and so forth, both with international phone numbers and calling services, et cetera. My question is perhaps not the right forum, but if you can comment a little bit on this and how it impacts your operations after this deal is closed. That's obviously in I mean, f irst, we're two separate companies still. It's not closed. We're very high confident that we'll close, but it's their decision, but it obviously very much in line with our strategy, and it's two things. They have very large U.S. customers. Think the Zooms, the Microsofts, all of these of the world are their customers. Those customers all obviously have needs for international delivery, and Inteliquent is a trusted supplier, and they ask Inteliquent, "Could you please just give me international? I can have one supplier." Good growth opportunity. On the other end, the other thing is as they now get the much more international footprint with all the sales reps we have everywhere, then it makes probably a ton more sense for them because they got higher probability as winning local business. Hits us very well. That's great, and I think it's very much in line with strategy. Yeah. Just to secure it doesn't give any more hurdles, from a security point of view. This is more of a collaboration for them with some third party, or do you need U.K. and Germany and New Zealand to also approve this acquisition? No. From an approval, it doesn't change anything. What they said is we're expanding our product footprint. Yeah. They're not acquiring anybody. So if they win another customer. No, there's zero impact on the approval side, no. Perfect. Thanks. Good luck. Thank you. Thank you. Thank you. We will now be taking our next question that comes from the line of Ramil Koria from SEB. Your line is now open. You may ask your question. Yep. Thank you, operator. Hi, guys. Thank you for the presentation. A few questions from my side. Just first off, as always being the devil's advocate here, could you perhaps elaborate a bit more on the, well, first off, on the barriers to entry to new entrants, but also why this company's able to outgrow, let's say, Mailchimp, for instance? Is it due to the transactional emails focus, or is there sort of anything in the stack here that really sets it apart? Perhaps the ability to bypass the junk box or anything like that. Is that solely pertaining to the fact that it is transactional emails once again? Oscar, do you want me to start with the second? Yeah. Do you want to start with the second? Yeah, if you want to start, fine, and then I'll fill in. Yeah. I'll listen to hear, so fire away. Yeah. No, great question, Ramil. I think more traditional platforms, and I think that it's part of the whole shift to cloud, which is essentially making Pathwire win versus the competition. I think the second thing is, of course, their focus on developer go-to-market, and I think through that they're bringing a lot of digital native companies into the fold, which would definitely adds volume and brings business to them, right? Then thirdly, you're right. They have a higher deliverability rate. They have worked a lot in terms of through algorithms and through different methods improving sort of the accuracy and the timeliness of their delivery, making sure of their delivery of email, making sure that they're winning on that front. This better product, sort of say, with higher deliverability and developer focus, has meant that they've taken market share since founding 2010, and in a sense that very much like Sinch, right? We've taken market share since we were founded in 2008. We're not the first player in this industry. That really, in a sense, means that we are more similar to each other as well. Oscar, back to you. No, I think that was a very good answer. I would add one thing, which is just strengthening your two first points, just the cloud and developer side. We've seen this across many different areas. That is APIs outgrow everything. It is so scalable business model. When you get to an API model, it is extremely scalable, and you just get integrated everywhere. If you have a good API product, you get integrated everywhere. I think that's a new, it's paradigm shifting cloud, really doing true APIs, and really growing strong. This is pretty much what Stripe did, right? They did really easy-to-use payments APIs and started to hit the market with that and created a very large company on it. We're doing the same on text messaging. We're doing the same on voice, and these guys are truly kind of cloud email, super strong APIs. That business model is just proved very strong. That's another kind of strengthening the two first points Roshan said. I think it's just good. Acquired good companies with proven growth, proven competitiveness that outgrow the markets. It's a very good model, right? Yes, you pay a little bit more, but it's in the end the winning strategy if you want to win in the market. In terms of barriers to entry, interesting. There are only a few large players in this industry, right? There was Mailchimp, Mandrill, just acquired by Intuit for $12 billion. It was SendGrid acquired by Twilio. It was SparkPost acquired by MessageBird, and now Pathwire acquired by us. That's it. That's the four largest players in this market. Next big player is Amazon SES, and they've been in this market for a long time. Even though such a powerful company like Amazon has been in the market for this long, you always need to be very careful because they're extremely powerful, but they only have, I think it's a 9% market share or something like that. It's a tough market, right? If Amazon can get to a 9% market share over a couple of years and not more than that, I think it just proves that entry barriers in this market is large. I would not start an email company today and try to get into top area here. That's going to be very expensive. That's true even for the largest companies in the world, right? Now said, competition is tough as any market which has scale, but that just shows the entry barriers, I think. Okay. Brief follow-up on that. Thank you both. Oscar, you referred to Amazon's market share. Could you talk a bit about Pathwire's market share and perhaps the market growth rate? Yeah. It's always hard because market share is always, did you get all carriers? In that report that we saw, Pathwire was about double of that, so significantly larger. That's the relative size. I'm always on this market report, I think it may have been a little bit U.S.-centric, did it really cover all APAC, et cetera? This was in the transactional market, not in the marketing email market. It's always a little bit hard, but that's relatively size-wise directional, approximately right. I think, Ramil, just to complement that. I think if you look at some of the industry reports, and I think we're referring to one of them, Technavio, I think they say the email market is SEK 16 billion. You can compare that with what we say about the messaging market, which is only slightly bigger. At the same time, the gross profit profile of the email business is much, much higher, right? You don't have the operator cost element. From a gross profit perspective, it's a larger market. I think what we look at industry estimates, they say they grow sort of in the 10% range, right? This market is growing in the 10% range. The interesting thing is that there's an underlying sort of on-prem to cloud shift, which means that a company like Pathwire, which is in the front end technologically and is providing a cloud product, grows much faster than the market. That's what we're seeing in the growth numbers, when they're growing 30%+ for a long period of time organically. Really front end cloud, on-prem to cloud, and also in the front end in API-enabled business for developer. That's two very strong growth drivers driving above market average growth rates. It's very clear. Thank you both again. A final question from my side. Going all the way back to page six, on the right-hand side, the Gross GP per product split. There are a lot of moving parts here, and of course, from an external point of view, it's becoming more and more difficult to pinpoint every moving part here. Could you elaborate a bit on the trajectory of the split as such, perhaps a few years from now, will messaging still be roughly half the business or do you foresee a future where perhaps it's a smaller or even a bigger part of total here? Same question for the other revenue buckets here. All right. Great question. Roshan, you want to start, or? Yeah, I can start off, and I think you can give the long-term answer. Ramil, just very briefly. I think this is the challenge. We have a very large business, which is text messaging, which is still growing. From a large base, which means that it takes, even if the percentage numbers on the smaller business element, business units sort of are high, it takes a while before they catch up. Just purely mathematically. I think, my guess would be that for a number of years, messaging will still continue to be important. Obviously, some of the other segments, especially mail, and I hope voice as well, when we get sort of more into the CPaaS product area, will grow faster than messaging. That's what my hope is. Or at least the traditional messaging business. You've got the OTT messaging within messaging as well, which has high growth rates, but from a smaller base. I think the other thing to remember, of course, in this aspect is operator. Operator is fairly steady, so that will reduce. I really hope that we have an omnichannel as we develop our omnichannel experience, that we have an omnichannel gross profit base as well going forward. I'll let Oscar elaborate more on that. All right. The first principle to me is like, A, the market is going to be huge in CPaaS because enterprises will communicate with consumers. All right. B, how do I make sure I win? Okay. If we cover all the main channels with market competitors' offerings in our large one, then we will be covered in the tech shifts. In the shifts in between the channels. It becomes like significant to de-risk the company profile because you're good at all the channels. If it shifts a little bit more to email or less to email or more to voice, you're going to be leading. I don't think any of the channels will disappear because it's just human nature to use different channels for different areas, right? That's one. How it develops, we don't know. We can conclude if you would look at other players in this market, if you would look at how Twilio looks, and you can search that on lagom, it is relatively similar, which is very interesting. Which shows a couple of things. Great, it's relatively similar. That's good. It also shows the extreme powerhouse that messaging has been. It is just a very profitable, very large market, and it's also interesting that it's the kind of the messaging people, us, Twilio, MessageBird, that are actually acquiring the email people. Why is that happening? It's the messaging people acquiring the voice players. The consolidators in this market has mainly come from that area. I think that's where the area that CPaaS really grew up. It's also because that's a very sizable and very large market that is driving it a lot of needs. I think the split today is comparative to other companies. I think it will change, but I think messaging will still be a very large segment. That is also proven by it's actually the companies coming from that are the main consolidators in the market. Far, I should say. World-class answers. Thank you so much. That's really good. Thank you. We will now be taking our next question that comes from the line of Predrag Savinovic from Carnegie. Your line is now open. You may ask your question. Thank you, operator, and thank you guys for taking my questions. The first one is really on deal rationale. What is mostly driving you for this? The developer-led go-to-market, that Pathwire has sounds intriguing, sounds like you're very enthusiastic of how you can leverage this in other verticals. To you, Oscar, what do you think is the biggest factor here in value creation? Is it this which covers the white spot you had, or is it adding a leading position on email delivery, which is also white spots? A follow-up to that, how important is email in your ongoing customer discussions on the multi-channel strategy? I think it's both. You can't acquire a developer go-to-market if you don't have a product that you're good at it, right? You can't be good at something if you don't have the product. I think it's truly both. It's adding email and developer. I don't think I can differentiate them. It's both really being good. I think the other thing that really drives value is this layer on top, switching in between channels. That's what I think truly drives value. Switching in between channels and then driving all the cross-sells to the email platform and adding the developer go-to-market. That's the three main things driving value creation there. Okay. On the emailing market, you call Pathwire one of the leaders or the leader. Thinking of you citing this SEK 16 billion TAM, you would have roughly 1% of that pie, which sounds quite small. You refer to another figure bigger than this. Trying to figure out what is really the tangible TAM here for Pathwire. Good question. Pathwire is the leader on the deliverability or delivery side. There are companies who have more volumes, such as SparkPost or Mandrill. That's what we're saying when we call them an ability to deliver the email. That's where they're the leaders. They're one of the largest players on the planet. On the market size, Roshan, I haven't read that specific report. If you could comment relative to the specific report. Yeah, I think in the long term, what we'd say is a large part of this market is addressable, right? Of course, there's a bit of geographic aspects, there's a bit of technology aspects. Is the mail sort of bundled with another product such as a content sender product or a CRM product? There are, of course, some restrictions, but in the long term, a large part of this entire market is addressable. I think what's important is, like we said before, the shift to cloud, right? Which sort of increases the addressability constantly. There's a long runway of growth from that perspective. Okay. On the customer side, you cite a few big ones using this, like DHL, Microsoft, and many more. Do these customers typically have a multi-vendor strategy or a single vendor? Maybe take that into context of the 100,000 you have. I guess the bigger ones probably have multi-vendor. What does it look like? Enterprises typically have a single vendor strategy per channel, but a multi-vendor strategy for every channels, because they can't handle two email providers. Big techs typically have a multi-vendor or two or three vendor strategy even on per channel because their volumes are so huge. We see enterprises really wanting, and also the big techs really wanting to consolidate their providers because there are so many and it's so complex. Also using the switching in between channels logic that we discussed before. Okay. Thank you. One final, on the slide eight on the Gartner model of this CPaaS industry, of the parts where Sinch is not present in or only partly present in, which of these boxes would you say are important for you to add or to grow into to be the number one or two player in the industry that you target? Happy to say that these are the three largest channels. Obviously, video is a channel we're using. We're not super large there. You can say in-app services, we're not super large there. I think the data models like analytics, CDP, those areas, interesting, but we're looking at what are we doing, what are we building ourselves, what do we have, what can we do, et cetera. Payment's interesting, but it's probably more a part of what we're doing, payments within the message flow, et cetera. There are definitely interesting areas, definitely areas we want to cover, but then it's a question of make or buy and doing it in a stepwise manner. I think just a very short bit to that one, right, Oscar? I think one thing to remember is also that we have, with Inteliquent, MessageMedia, and Pathwire, three fantastic acquisition platforms, right? Sinch has had a great story consolidating the text messaging market. Inteliquent, we see as our platform for global voice. MessageMedia, the platform for global SMB, and Pathwire is a global email platform. All of these companies have experience with consolidating those markets. There's the geographic regional aspect is. Yeah. See them as BUs. I tell Will, winning developer, winning email globally. I tell Paul, you're winning SMB, and they have handled acquisitions and things within the BUs. We're kind of just leveling up one, and within those BUs, it's a different story, right? See it as BUs that has their own CEO and drives their own business, which I also think is a very powerful model there. All right. Super. Thank you very much, guys. Thank you. Once again, for the participants over the phone line, please press star one if you wish to ask a question. Your next question comes from the line of Ramil Koria from SEB. Your line is now open. You may ask your question. Thank you, operator. Just, if I may, since we have the opportunity now, talk a little bit about sort of the integration team that you have on board. You've recruited someone to the management team. How many are you? How should that team sort of increase or decrease? I guess it's more towards the former than the latter moving forward. How much are you scaling up the integration capacity as such, knowing that this isn't a cumbersome integration as such? The integration team today, I think the latest reports are some 80, 75 people. It's a significant team. Super happy to have a leader in that, which we didn't have seven months ago, and she's in, she's driving it. It's her full-time job. That's the only thing she does. She has an integration lead for every deal, and then an integration team for every deal doing the things, right? That's round about what we're doing. How it scales up and scales down, her budget is the integration budgets that I report to you. That's what she can keep to. Juliet, this is your budget. This is your money, integrate to this. You get the people in that you need to do that in order to do so, and you need to, when that budget is off, you need to scale down the team or get those people back into the main lines, basically. That's the size and how we scale up, and her task is to continue to keep within budget that we have reported to you. I think we scaled up really good. I think we can do some more. Also conscious on cost and keeping to the budget that we communicate, but then so far, we've been very successful in doing so. Lots of work, very hard. This has been easy. We've got to be very humble about the challenges we have on doing this. On the other hand, if we wouldn't have made this deal now, it wouldn't be there. The choice for us was do the deal, be big in email or leave the email market. In that decision, I think it's good to make the deal, because you need to understand, the deals don't stay. They will be gone if you don't do them, and somebody else will do them. Okay. Thank you, Oscar. Thank you. Once again, for the participants over the phone line, please press star one if you wish to ask a question. Still no further questions that came through, sir. Please continue. Well, in that case, we'll thank everyone for participating, for the good questions, and for listening to what we think is a very exciting opportunity and a very exciting story. I'll hand over back to Oscar for any final remarks before we wrap up. Thanks for listening. Thanks for your continued interest. We have a lot of these calls. Super excited to have you on the call. To me, these two deals, and then this deal here is very logical. Enterprises use many channels. We want to serve them throughout their needs. If you want to be a leader in the CPaaS on a global level, you need to do all channels. If you need to be a leader in CPaaS, you need to cover all the go-to-market models and covering off being strong in the developer go-to-market and serving developer in good APIs, extremely important. Adding a company with such fantastic financial profile, low on ego, low on excesses, always being profitable, driving profit. I think when you see that type of deal, I think it's just a very good combination with what we are. Getting a team in with a culture that really fits us. I'm super happy with the deal, and thank you for listening. Thank you. That does conclude the conference for today. Thank you all for participating. You may all disconnect. Speakers, please stand by.