Good day and thank your for standing by, welcome to the Investor update. This time all participants are in listen only mode. After speaker presentation there will be question and answer session. To ask a question during the session you will need to press star one on your telephone. Please be advice the today's conference is being recorded. If you require any further assistance please press star zero I would now like to hand the call over to your speaker today, Chief Strategy Officer and Head of Investor Relations, Mr. Thomas Heath. Thank you. Please go ahead, sir. Thank you very much, operator, and good afternoon. Good morning, everyone. Welcome all to this conference call with Sinch AB, announcing the acquisition of MessengerPeople. My name is Thomas Heath, Chief Strategy Officer, heading up investor relations. With me today on the call is our CEO, Oscar Werner, and our CFO, Roshan Saldanha. With those introductory remarks, I'll hand the line over to Oscar. All right. Thank you, Thomas. We're very happy to have announced today that we have agreed with MessengerPeople to join forces with them. This is an acquisition, as a company, we've been following and talking to for quite some time, that has a very interesting position and good traction within the conversational messaging space in Europe, and that we think strengthens our efforts in that area in a great way. We're very happy to make this acquisition. That said, if we move to the presentation, operator, slide two, please. This slide you've seen many times before. We have a revenue of SEK 11.8 billion in the past 12 months. Billion, right. It's still morning here in Atlanta, sorry. It's SEK 11.8 billion in the past 12 months. Sorry about any confusion. Adjusted EBITDA of SEK 1.2 billion. 2,300 people before the latest acquisitions. With all of the ones we have announced, it's going to be a little bit above 3,000. Customer engagement through mobile technology is the key, I think looking at this transaction, it really goes to the customer engagement part. We're really hitting the being able to engage customers in a better way, we think that's very attractive and exciting. Scalable cloud communications for messaging, voice, and video. This clearly strengthens us in the messaging area, the messaging is to us, it's kind of the big and large text messaging market, which grows at 15%-20% per year. Then we got the early stage, but very high growth conversational messaging market, where volume, which is growing at 100+% per year, basically. This is kind of strengthening us in the newer messaging segments. The good news in this market is that both are actually still growing strong. Obviously, the conversational messaging segment is growing much faster, but from obviously also a much smaller base. Doing 170 billion engagements a year and serving the biggest, largest tech companies here. This is our market, and this really hits the consumer engagement. It hits messaging, and it's kind of the newer segment of messaging, which is conversational messaging, going via WhatsApp, Apple Business Chat, RCS, and all these new channels, and adding applications and a SaaS layer on top of that. That's kind of the area we're talking about on this slide. Operator, next slide, please. Where we see CPaaS and where we actually interact with our customers, it's pretty fascinating because we do this across the customer journey. We see that we may get in at one persona or one buyer in the company, and then we typically get brought in by other departments. If you look in a company, the core buyer persona or the core functions that we're actually selling to is, one is marketing, which is not so much outbound marketing of just sending big marketing campaigns, but it's within the customer journey you want to do cart abandonment rate, and then you send a text message saying, "Hey, we saw you abandoned the shopping cart. Can we help you?" Or it's things, churn reduction during explaining the phone bill, how it works in order to reduce churn in the sign-up flow. It's marketing, but more kind of one, you have made a transaction, how do you keep the customer? Or when you're about to make a transaction. That's one big persona that we're selling to. The other one is more operational. You would've gotten them like appointment reminders, one-time passwords. It could be delivery of a mobile boarding pass or things like that, just a delivery of the service to you as a user. Given a reminder, for example, to reduce the no-show rate at a hospital is a very effective use case. The third one is customer service, which is basically consumer preferences are moving from voice to messaging channels, and we see that in the chat usage. If you look at all your kids, you see that, the use of all the chat apps. This is really a trend that consumers, that they increasingly want to use messaging-type services in order to communicate with their friends, but also with enterprises and companies. A lot of enterprises are adding a messaging component to customer service. That's where you can actually both do the channel, but you can also do a SaaS application on top to interpret the intent, to automate some of the answers, et cetera. There's a lot of a software suite that you can add on top of the messaging channels in that. These are the three categories. Sinch has traditionally been big in the yellow part. We have been growing very well on the marketing part. We are traditionally smaller in the customer service part. MessengerPeople are strongest in the customer service part, they're kind of strengthening our offering in that area, as well as in conversational messaging. That's kind of the use case that they have the majority of their revenue on. We've shown this slide before. We have a playbook for profitable growth is really investing on the connectivity side adding software as a service on top in order to extract more revenue from each customer and give a better service to each customer. This acquisition falls in the top one, software as a service. MessengerPeople sells primarily a SaaS software, charging $500 a month or charging on a per-user basis. It's almost exclusively, I think it's 92%, it's the SaaS revenue model, which is just selling software on top of the channels and monetizing a software platform. Operator, if you go to slide five, please. In our categories of M&A, and we've talked about this before, so scale and profitability being the bigger ones, giving us large scale and significant increased profitability, and then technology and go-to-market acquisitions, where we see this is a complementary technology that complements our tech, and it's a complementary go-to-market where we would really strengthen our own go-to-market in a segment, in a market, et cetera. This acquisition falls squarely in the technology and go-to-market. It's a relatively small 40-person team, but with a very strong position in Europe and in Germany in conversational messaging to the customer care area. This is a, okay, we gain a technology component, and we gain a strong go-to-market traction that we then can scale out to all the other Sinch regions and take a lot of lessons from. We've seen this done very effectively with Chatlayer, being a Belgian company that we acquired. Chatlayer went from selling, their biggest customers was Proximus in Belgium, and now they're selling to customers like AT&T in the U.S., and they're selling in India, and their largest market right now is Latin America, actually. All of that is coming from the Sinch sales network and go-to-market network, who has then picked up Chatlayer and then pushing it out in all the regions and using their original technology. It's more than technology. It's also the understanding in how you sell this to different customers that we learned a lot from Chatlayer and then pushing that out into the other markets. This is a similar route here with MessengerPeople, where we get it together with our platform, then push it out into a lot of other markets that have showed interest for this type of technology and go-to-market knowledge. Operator, slide six, please. In the recent transactions, I know many of you have seen this before, so latest one being MessageMedia. That was both in technology go-to-market and scale and profitability since they had a SaaS platform for SMBs. They were also scale and profitability because they were so large and adding really to our scale and our profitability. While MessengerPeople is squarely in the tech and go-to-market, where we pick up a really good component and a really good go-to-market team, we aim to scale up on global level in the coming quarters and coming years. All right. Operator, slide seven, please. Deal rationale, MessengerPeople, and a little bit of the background, founded in 2015, is a pioneering provider of software as a service business for communications via messaging apps. One of the absolute first people on the planet to work closely with WhatsApp as a messaging app for enterprises. 700 active customers, of which 80% is in the DACH region, and a team of around 40 people in Germany. It is, on the deal rationale, the tech and go-to-market type transactions, which will strengthen our product offering and fuel our growth by being strong go-to-market, and we're going to scale it out to other regions, basically. What it will give us, it will accelerate something we talked a lot about, conversational messaging, to acquire a European leader focused on the mid-market business. This is not focused on the smaller, not on the largest accounts, but on the mid-market. It will increase our SaaS revenues and GP in a high-growth market segment. This segment is growing fast and adding gross profit, has very high growth profile. It's very good. It builds on our organic investments. This is something that we have evaluated closely from a tech perspective, our tech product and engineering team see, all right, if we bring this in and we combine it like this with our existing offering and then unifying these five things, we will have a very strong offering. This is not a standalone thing. In the end, you're not going to see a standalone MessengerPeople product. It's going to be merged together with our product offering. It saves us quite a bit of time in order to go to market, and it will give us a strong traction and a much stronger position in the market. Integration near-term focus is on go-to-market expansion, accelerate international rollout. We've specifically identified India and Brazil as two really attractive markets. We will use their expertise in pre-sales and customer service use cases to scale to existing and new Sinch customers. Use our global presence and then a phased integration of their product suites within our own software and communication APIs. Roshan or Thomas, do you want to do the financials here? Yeah, I can step in. Thanks, Oscar. We're paying an enterprise value of EUR 48 million, of which 70% or EUR 33.6 million is paid in cash and EUR 14.4 million is paid in equity. The transaction is expected to close shortly, in Q4 2021. We are, over time, primarily investing in acceleration of the go-to-market by expanding the product to our existing markets, both within Europe but also other interesting markets which we see, from a WhatsApp perspective, are high volume markets for WhatsApp traffic, such as India and Brazil, where we have strong local presence. Over the long term, of course, we will integrate this into the Sinch product platform or application platform as well. The integration cost is expected to be SEK 16 million, expected over the next 12 months to be able to do that. Company will generate EUR 5.1 million in revenues, EUR 4.5 million in gross profit and EUR 600,000 in adjusted EBITDA during 2021. It's growing at a rate of 35% compared to the previous year. A strong growth rate, which adds to Sinch's growth potential in the future. Good. Thank you, Roshan. We also think it's very positive that many of these companies that we have talked to lately, they are very interested in taking new shares in Sinch. They believe in the story. They want to continue to contribute, from a founder perspective, in the Sinch story. I think that's a very positive thing when we get engaged founders in who want to continue to drive the growth of Sinch global. If you go to slide eight, operator, this is conversational care for a company called Women's Best. Women's Best is a fast-growing e-commerce business focused on sportswear and sports nutrition for women. Customer care, it's interesting because they have now decided to handle customer care exclusively through WhatsApp and iMessage using MessengerPeople. They're just all other channels non-effective. If you want to talk to us, you have to use one of these two apps. The results are pretty staggering. It's 50% lower average handling time, 70% fewer emails in customer service, and very positive reviews on the review sites. Here you can see what people are doing, how people are interacting with them. Sending a message in, getting the first answer from a bot, second answer from a bot, third answer seamlessly over to a human, and then maybe the ending of the conversation may be done by a bot, et cetera. It's a very integrated experience where the agents on the other side can really decide when do they step in, when they do not step in, but they can actually see the flow in one unified experience here. Next slide, operator, would show one of the reviews from Trustpilot. Basically, "Even better was the customer service after they write to you on WhatsApp, the best customer experience I ever had, honestly." I would encourage you all to just try any of these experiences on customer care via WhatsApp. KLM is a good example. We're not powering KLM, by the way. It's a very good experience of how accessible it gets. Suddenly, when you have KLM in your inbox, next time you want to contact them, you just click that, you just type KLM in your flow, and you start your conversation all over again. I was doing customer care to one of these companies. I was doing it from the U.S. in the middle of the night, European time, sending off the message. Didn't have to be connected because you don't have the issue with the web chat side. On the website, web chat, you need to be connected all the time, and if it times out, then you will lose your conversation and have to restart on. That doesn't happen with messaging because it's asynchronous. I just fired off a message. Next day, I got a response, and then I respond within my day as well. It's a very effective flow there, which I encourage you all to try. Operator, go to slide 10, please. This is how it looks on the agent side, the service on the agent. It's a little bit stylized, but this is how it looks on the agent side. Providing this type of interface to the agents at, for example, Women's Best, where you can see who are the agents? What are the active conversations that we're actually having? Which one I'm going to answer on now, and which ones do I push to a bot? What suggested responses do we have, et cetera. It's both a kind of an interface to the user, but also an interface to the agent, which is very tailored to this channel. You can either choose to have it in this channel, or you can choose to integrate it with one of your big customer care systems, right? A lot of companies actually do need the tailor-built channels, which you can see on this slide. It's also very quick to demo, quick to deploy. Customers can try it off the bat. They can just log into the website, get the test account, try it out, see if it works, and then get going. We've seen that be very effective in order to attract, especially mid-sized businesses. All right. Operator, let's go to the next slide, please. SaaS-based monetization. This is off their website, so you can see that the business model here is pure SaaS. You don't sell the transactions in this type of business. You sell a platform either for SEK 499 monthly or SEK 999 monthly or a large on request. You sign up online, you get going online, and then you get a little bit support later. But you can see it's turning into a pure SaaS model, depending on, as you can see, the number of channels that you're using, WhatsApp, RCS, Apple Business Chat, et cetera, or the number of agents you're using, the number of customer care agents that you have internally. It's either five or 10 or above. The number of monthly active users that you want to target, and you get to the medium large or very large category there. Really a real SaaS business, which is selling the software on top of the transaction channel, which I think is a big growth area in this business. Core target group is midsize businesses with a high level of customer interactions. A lot of tutorials and guides to drive online lead generation. Very simple packaging and rapid time to value, which we think is very good and easy to see and very well packaged. Feel free to go into their websites. 85% of the use cases relate to pre-sales and customer service, 92% of the revenue is from SaaS and 8% from API. Kind of on the inverse to what Sinch is, which has the majority from the API type business, but really driving as the SaaS suite. All right. Operator, slide 12, please. We are, as you know, a track record of profitable growth. This is our growth in the last 12 months. We're really focusing on the organic growth, driving organic growth solidly and adding acquisitions on top. Having this two-pronged growth strategy I think give us a lot of options in order to continue our strong growth for the foreseeable quarters and years. Obviously, this one being a tech and go-to-market, it doesn't move the needle in a great way on this type of slide, but it moves the needle in a very good way in enabling all the other acquisitions to grow faster. This is like a growth engine that you then put into the other acquisitions and help them to grow faster. We see that very effectively with, for example, Chatlayer, and we plan to do the same here. Obviously on day of acquisition, it doesn't show up on this slide. It shows up much more on the future growth in organic going forward. All right. Operator, go to slide 13, please. Roshan, could you please take this slide? Thanks, Oscar. By the way, I just want to also repeat, I love the simplicity of the pricing on page 11, right? Really using simple pricing to drive customer stickiness. I think you've got, I think the midsize package really being the sticky one for MessengerPeople. Coming to our financial targets. Unchanged since previously, adjusted EBITDA per share to grow at 20% per year and net debt to stay below 3.5 times adjusted EBITDA over time. Again, until Q2 2021, on a rolling 12 months, we delivered adjusted EBITDA per share growth of 38%. Well in advance of our target, well ahead of our target. Due to the fact that we have taken in cash to pay for the acquisitions through equity emissions, we're sitting on a positive cash position of 9.6 times, measured on a rolling 12-month basis. Operator, please change to slide 14. On this page, you'll see sort of the net debt position on a pro forma basis, essentially using the adjusted EBITDA as at the end of the second quarter, 2021, then adjusting the net debt for the potential payments that are due for the announced but not yet closed acquisitions of Inteliquent, MessageMedia, and MessengerPeople. What you'll see then is that our reported net debt or leverage going from -9.6 with Inteliquent and MessageMedia, we would have had a pro forma net debt to adjusted EBITDA of 2.6. MessengerPeople essentially makes a very small change to that, to 2.7x, therefore has a minor impact on the leverage. With that, Oscar, I'll hand back over to you for any closing comments and Q&A. Yes. Thank you, Roshan. My closing comments is, to us internally, this is a very logical transaction. We're increasing our exposure to the high growth segment of messaging, which is conversational messaging. This market is growing very rapidly, and increasing the exposure to that is good. We're increasing the exposure to the SaaS type business model, and being self-serve, easy to use, this easy pricing model. I couldn't agree with more Roshan. Exposing ourselves more to that and getting both technology and go to market knowledge on how to operate that type of business is very good in combination with our strong organic investment. This is kind of a fuel and strengthening that area. That's the other major things we do. The third thing is, this is a team that we really like and really appreciate. We think they've done super well in the market. They're very well respected in the market. It's again, a team we've known for two years. The first time I met this team was two years ago, I immediately felt, wow, this is a team that has something else that can really make a difference in this market. We often do that. We build relations over a long time. We monitor the companies. We get to know them. We see that their traction is good over years. When we make the decisions, we're actually knowing the teams and when we've seen the business for several times, seen the development, and this is one of them, right? We feel very confident with what they've done. In the market, they managed through good times and through hard times, but done it in a very good way. It's a classic Sinch model of building longstanding relations and partnering with the teams that we think are the best in the industry. I'm just super happy to have made this transaction. With that said, over to you. Feel free to field 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 it 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. Congratulations also to this acquisition. My question is really, since you acquired Xura Secure Communications GmbH in 2017, I guess I had expected you to be able to do the similar thing in the German market with that entity, that we see now that MessengerPeople has done. I go from pure SMS messaging also into iMessage and et cetera, new channels. My question is really, one, how will you go in Germany with the consolidation with these entities? Also, if the reason why you believe this perhaps has been more stronger than Xura Communications on this side of the conversational messaging. It's a good question. Xura was, when we acquired them, I don't remember what year that was. Thomas, remind me. 2017. 2017, yeah. 2017. Xura was a pure text messaging operation, and really good and accretive, and adding a lot to that. We're super happy with that acquisition. It gave us a strong foothold in Germany, and we still have a strong business in Germany. It is true, in the sense that one would always hope that you can do everything in one market yourself, and if that could happen, then obviously, that would have been great. It is also true that's not always happening, and in this type of extremely dynamic market, there will always be strong and innovative teams coming up with things from the side or things that you don't do, even though you have a very strong performance on your internal teams. That's very much the Sinch model, right? We operate our own teams. We run them strongly. We have a very strong organic agenda, as you have seen, 25%-35% growth on average organically over the last 10 quarters. I think that shows the strong performance organically. When we see somebody who's done something very innovative where we think, "Oh, they did this well, that's going to strengthen us. Well, let's join forces in selected cases," right? I think that's the model we're applying here. In this type of very large market, that will happen. Imagining CPaaS being SEK 50 billion in global in a total and extremely innovative and high growth, there will be these pockets which there's no chance you can do everything yourself. I think that model of strong organic growth coupled with when you see somebody else doing something good and it's a good team, let's join forces. I think that model is very good. If you did it the other way, you would have much higher organic OpEx up front, much lower profit over these years, because you need to do all the investments up front, we take a little bit of a different model. We're a little bit more conservative on that side, driving higher profits, joining with acquisitions, which is also lower cost strategy, or higher profitability strategy. I think that's the logic in general. Of course, I always want to succeed with everything organically, I don't think that's a feasible strategy to believe that you always will do that. On the other hand, what you have seen that we have done is we have significantly increased growth in Europe as we have reported. Yeah. The core thing that we focused on, we really did, but this team actually did it better than us on the conversational messaging side. I think just one comment to add to that, Daniel, which is, I think even though MessengerPeople is very much a German product or a German company, they do have customers outside of Germany, and we see this as a product that we also can bring to other markets. We're not seeing it as a product that's focused on the German market only. Perfect. There are no hard feelings between the existing team and the new team coming in, if they see themselves as complementary, I guess, on this conversational, higher up in the value chain, to say. On the contrary, I just had that discussion with Thomas. They're both based in Munich, and when we briefed them just a couple of hours before this, we said, "Can you guess?" They were like, "Oh, no, could it be this company?" When we said what company it was, they were super ecstatic and saying, "Oh, this will just make us so much stronger in the German market. Let's join forces. That's good. It's a good culture," et cetera. They were super excited about it because they just see, all right, this is going to strengthen us in two very important segments. Great to hear. Thanks. Good luck. Thank you. We will now be taking our next question that comes from the line of Fredrik Stenkil from Nordea. Your line is now open. You may ask your question. Yes. Good afternoon. Very interesting transaction. I can imagine very large cross-selling opportunities once coming into the Sinch ecosystem. I have a few questions. The first one is, what is the situation today for MessengerPeople in terms of integrating into CRM software? How does this fit along with your strategy, for example, going with Salesforce and Adobe? Could this be integrated, or is this more of a standalone web-based app? Also on that topic, what's the plan around SDI Enterprise Solutions, the contact center you have there? Perhaps I can have a. Two super questions. I was going to give the first one to you, Thomas. Yeah, go ahead. Sure. Very good question. We see this as very complementary. If you think about this from a business point of view, depending if you're a small business, a mid-size business, or a complex, large international business, you will have slightly different needs. If you're in the last category, a more complex, larger, international business, you will be working with an Adobe or an Oracle or a Salesforce, and you'll be probably working with us indirectly, in a model which we've proven over the years. When you're a mid-size business, you might be looking at a solution that's more packaged, more all-in-one. That's even more so the case if you're a very small business. You want something off the shelf that you can just start in a complete self-serve, no-touch, setup. These are a bit complementary, and businesses have different demands, and that's one of the things we see as strengths. I think generally speaking, there is a play for both APIs and applications to all categories of customers. Absolutely, you're able to use these products in tandem with other softwares, including the ones you mentioned. I think where they really excelled, MessengerPeople, is managing to package this in a very attractive, low friction, quick time to value way, where companies get a lot of value without having to work on APIs or have a big SI integration project. Very complementary in that sense. If you look at historically or what we've done with other customers, as you know, we're successful in Latin America with conversational messaging. We're often working with larger customers, a little bit more project-based, more heavy involvement, API-based, good business, but with slightly different customer segments. This is very complementary. I think that answered your first question. Oscar, if you recall the last question, shoot. No, just to be clear, we don't try to be a Salesforce, we don't try to be a Shopify, we don't try to be a Genesys. Enterprises need an easy-to-use, well-packaged software when they do these things, when they trial them, when they run it up to a certain level. At some point, some enterprises will choose to get it merged within their Genesys or customer care software. Both ours and MessengerPeople's strategy is to have the APIs pre-integrated into those. You can actually do a good handover to them, where you then keep the bot, you keep the messaging channel, but you cut off the UI to the customer care agents, but you still keep a large portion of the business, but then you hand it over there. That's it. We have a very clear strategy for doing that, and that's very similar, us Chatlayer and MessengerPeople. On your second question, 100% correct, impressed by the question. This will be, from a product perspective, aligned or complementary, and in some parts, merged with the customer care software from SDI. The customer care software from SDI is a much more full-featured customer care offering, while this is a much more easy-to-use, well-packaged, quick-to-get-started offering. You can imagine, if you get those together, you have a really strong product. It's also going to get interfaced with or merged or strengthened by the Chatlayer product, because Chatlayer is a pure bot, which is stronger on the AI, NLP side, but weaker on the ease-of-use, well-packaged, self-start SaaS software. You can imagine Chatlayer being integrated as an API on the back end of this to strengthen their AI, NLP capabilities. That's something the product team has gone through in quite some detail with the MessengerPeople team pre this transaction. All right. Very clear. When can we expect the relaunch of the SDI contact center merged with these capabilities? Yeah, I think we'll refrain from a timeline on that one, right? I think the balance that, of course, in any of these acquisitions, it's a question of selling what you have here and now, and continuing to work on that while ensuring that you deliver on the longer-term roadmap and innovation in parallel, right? That's sort of what we see as the key to success here. Oscar, you want to add to that? Yeah, I don't think it's the concept of relaunch. I think it's a concept of lifting various features, adding them where you've already done them, and just gradually improving and increasing the speed of that. It's not really a relaunch, it's more kind of increasing the speed because you got the knowledge and the code and know how to do it, basically. Okay. Excellent. If I may, just one last topic. The growth, you said 35% this year for MessengerPeople. What's it been like before that? If you could answer today, for the group, how much is conversational messaging, roughly? Yeah. A few things there. On their growth, it's varied over the years. Oscar alluded to this. They were very early start. The business model has pivoted over the years, which we think is a huge sign of strength for the business. 35% is sort of the run rate they're growing now. Are we able to improve on that? Well, arguably, we have some assets we can bring to the table, even if we're not quantifying that. Of course, we will set high targets as we accelerate international expansion and cross and upsells, of course. Lastly, we haven't given any figures on the overall part of conversational messaging, other than to say that it is a smaller base growing very rapidly with becoming significant in lead markets, particularly Brazil and India. You've got to recognize that the established, more mature products continue to grow at a very good clip. We continue to take market share, and we grow those off a very high base, right? Whenever you look at a share of Sinch, the worst competitors are other strong internal teams, right? We prefer to look at how much can we grow each business in absolute terms and percentage terms, rather than to track it on a percentage basis, right? Otherwise, the easiest way to bump that figure you're asking for is to fail on other products, right? That's not really our ambition. All right. Thanks. I'll get back in line. Thank you. Once again, for the participants over the phone line, please press star one if you wish to ask a question. Once again, that's star one if you wish to ask a question. Still no further question. We do have now one question on the line that comes from Fredrik Stenkil from Nordea. Your line is now open. You may ask your question. Okay, hey again. Since there were no other questions, I had a few more. One is, what gaps do you see in the offering as of now in terms of technology? I would be curious to hear your thinking around video, if you feel you need to do an acquisition to beef that up. In general, you can see the gaps or the growth opportunities in two categories. We would call the first connectivity. That's all the channels that consumers are using to interact with their customers. To that, without naming names, I would ask you all to go back to yourself. In what channels are you interfacing with consumers or with businesses, and which of those are Sinch present in? I think we all can list quite a few, and then you can probably match where we have a large offering. You're correct. In video, we have a mini offering, but it's not really big, and it's a rapidly growing CPaaS segment. That's one interesting category, yes, but there are quite a few of them. The other category would be upstack on the SaaS side. Here, it's rapidly evolving, I would say. I don't think anybody knows, a little bit alluding to a previous question, what components will be in CPaaS and what will end up in the other clouds, like marketing cloud, commerce clouds, customer care clouds, et cetera. I think it's pretty clear that quite a bit will be in CPaaS, and a very large portion will be in the other clouds. I think that's rapidly evolving. There's a lot of components and go-to-market models in that area which are very interesting. I think we're going to see a plethora of things happening there, therefore, various types of offerings approaching. That's a little bit more fuzzy, a little bit harder to understand. I think we got a lot of the major components now, but the market is moving so rapidly, so in 6 months, we'll see some new things, and we'll continuously evolve and evaluate in order to make sure we're a winner on the global basis. Right. Yeah. Just a final question from me. If you have any update to give on the regulatory approvals for Inteliquent and MessageMedia. Thank you. Roshan, do you want to take this, or should I? I can do that. Firstly, there's no major update as such, which is good news, right? We're progressing as per plan. The dates that we have communicated for both those transactions are H2 2021, and I think we are well in place to be able to close both those deals. What we have to say is that we've got certain approvals from both transactions already, and we see the remaining part of the process, more as a necessary process to go through, but not really anything that includes any risks for us when it comes to closing these transactions. For example, for Inteliquent, I think the bulk of the remaining part of the work is approaching the communications authorities in every state in the U.S. to actually getting a clearance, which is simply administratively time-consuming. 50 states that we have to go through that process. There are no risks associated with actually getting those approvals in place. In general, we're well on track, and we're more confident than ever that we'll close this during the second half of the year. All right. Thank you. We're same dates. We're not changing the dates. We're gradually, every day that goes by, more confidence since we're ticking off box after box. It's a lot of boxes. It's a little bit like that. Okay, perfect. Thank you. Thank you. Your next question comes from the line of Daniel Djurberg from Handelsbanken. Your line is now open. You may ask your question. Similar question, but I may ask you if you can give us any percentage of the number of states that you have got clearance from so far, just to give us a view on where you are in that. Also, if I may, a question that is a little bit stupid perhaps, but it is, do you see any risk that if you're extremely successful in the conversational messaging, that some of your wholesale supplier of SMS sees you as a competitor and raises prices or something on the SMS side to Sinch? Or is that out of the question? Thanks. Oscar, I can take the first one, and maybe you want to explain why we don't see the second one as a risk. Right. Daniel, just very briefly, it wouldn't make sense to describe the process in that way because each state has really a different process and a different timeline to approve these transactions. Just measuring the percentage of states completed is not really a good measure of when we might get this done, right? We've approached the majority of these states at the same time, but they just have a different way of approaching this question. I think I just want to reiterate, we see this as something that is a necessary exercise that we have to go through, but we are confident that we'll close both transactions in H2, right? I think that's where we are, and we feel comfortable about that. Maybe we can come back at a later stage, maybe in conjunction with our Q3 report, give more insight, and hopefully better guidance at that time when that will look. If we haven't closed both deals already by then. Oscar, back to you. Yeah, no, it's a good question. I see it a little bit in the inverse. What's happening is the operators have so far had a monopoly over mobile communications to the users because that's the only way you can get a text messaging to a user. What's happening now is all these other channels opening up is, if a transaction's going via WhatsApp, the operator doesn't make any money. What's happening is the operators are suddenly getting a competition, not by us, but by WhatsApp. If the operators are not pushing their features and are not price competitive enough, well, enterprise will say, "Why I go via an operator? Let's go via WhatsApp. It's a better feature and lower price." It's introducing a competition on the operator level, right? To us, we are acting very closely. We like to work with the operators, right? We trying to push the operators to push their RCS service on a faster pace. We tell them every day, "Please launch your RCS services faster, because the minute you do, we have another channel and we can send the more conversational messaging through you. We won't be forced to send via WhatsApp, because today WhatsApp have better features than text for certain segments, not for all segments." To us, we're trying to get the operators to launch faster so we can use them more. It has take them very many years to do so, which is also one of the reasons why WhatsApp has grown big in the conversational messaging space segment. Particular with this transaction, we're trying to work very closely with the operators in Germany, and we're super happy to work close to them in order to drive the WhatsApp revenue or to drive the RCS revenue on other channels as well, since RCS is a great channel for many use cases. We're happy to work closer to them. We're actually, in this particular case, doing so specifically in Germany. Thank you for the color. Thank you. Your next question comes from the line of Tobias Theobald from DWS. Thank you for taking my questions. Congratulations on the acquisition of MessengerPeople. I would like to return to that acquisition. When looking at the financials, I can see that the gross margins are higher than those of yours, which is like I understand the reason is that it is a SaaS business, and they do not have these messenger fees, which they have to pay to the operators. My question regards the EBITDA margin, which I think is kind of in line with yours at like 11% or something like that. I wonder if you see the potential to increase these margins and where the margin increase would come from, which sources. Thank you. You're right, this is a SaaS business, so it has the same gross margin in percent levels as the Sinch SaaS businesses. If you look at Chatlayer, it looks exactly the same, like very high gross margin percent, right? That's true. On the EBITDA level, I think we can improve that tomorrow if we want. That's a choice between growth versus profitability. MessengerPeople today is roundabout breakeven from a macro perspective. Yeah, maybe a couple of percentage positive, which is exactly how we like to run the companies. The core reason for this is accelerate growth and drive growth. I think we would be focused most on driving growth in this business while keeping it slightly positive because we believe in positive businesses, because that kind of keeps all the entrepreneurs and the leaders straight, if you will. We'll focus a lot on driving the growth in this business. Also because the relative size of the EBITDA compared to the Sinch EBITDA becomes small, so it won't really make a difference there, but on the growth side, it will make a big difference. That's how we would think. Obviously, it is just quote, unquote, when you got to the business to profitability or a little bit plus, if you then want to say, or this year, and you're growing at 35% or 50% or 60% per year, you can obviously say, "All right, this year, I'm just going to dial down OpEx investments and do them a little bit lower," and then you will eventually eat up EBITDA. We feel very confident we can do that tomorrow. We feel very confident we can do it today. I think the best trade-off for the shareholders today in MessengerPeople specifically is to drive the growth and increase the margin in maybe one to two years or something. Okay. While still keeping it positive. Thank you for that one. Got that. Maybe then on the broader horizon, what would then be like the go-to EBITDA margins for Sinch in total long-term? You're saying short-term, you prioritize growth over profitability, which is what I completely understand. Long-term, where do you see your margins could go? Is it very difficult to forecast? How is your view on that one? No, without giving forward-looking projections now, but when I was talking about growth over profit, I was talking about MessengerPeople, not about Sinch, just to be clear. Yes. That was like in this pocket, I was talking about that. We have said before that our historic profitability levels are roughly what we're targeting over time, right? Keeping OpEx growth in line with GP growth, and therefore continuing on the roughly what we have had historically, correct me if I'm wrong here, Roshan and Thomas, EBITDA per gross profit at the 45% level. That's a very solid profitability, like on every gross profit dollar, a very large portion falls down to EBITDA. Then that translates on the profitability levels, on an EBITDA to revenue, on whatever we have had. We continue to run the business in the same way we have run it. Now we have had a little bit of a hike in investments due to doing a scale-up when we do these very rapid acquisitions. If you can imagine when we do Inteliquent, MessageMedia, we do those type of acquisitions and SDI in a very rapid pace. We just got to invest in the core systems to handle just the increased scale. You can imagine the finance organization, what about the ERP system? What about the HR systems? What about all these things when we suddenly double the business over the course of 18 months? We're taking a little bit of an outsized investments in those area in order to handle the incoming profits and EBITDA and size of business that is coming in very shortly. Therefore, we have increased investments short term, but we plan to scale that back as we get into a more normal pace, basically. Mind you, though, that the investments we're taking now has been targeted at a much higher EBITDA level than we have today because we're not counting Inteliquent, we're not counting MessageMedia. We're still taking investments for them. It's a little bit like we know it's going to happen, but we take the investments pre, so the share has gone down, but that's pre we have actually taken in the actual profitability of these deals. I don't know, Thomas or Roshan, if you want to comment. Just to add, just in terms of to mirror how we think about this, we don't really track a margin as such. Of course, we look at the margin. We know that our margin will rise, not least just from M&A, which we talked about earlier with the mix effect from MessageMedia and Inteliquent. The way we plan our business is we say, okay, we can drive a certain amount of growth in gross profit. What sort of OpEx does that require? With the surplus, what's the business case to reinvest and drive further growth? The way the market looks now, which has been a while like that, the market is very strong and there's a lot of opportunity. The business case to reinvest profit in future growth continues to look very good. Rather than to target a particular percentage, our fundamental thesis is that we should grow absolute level of gross profit. We should grow the absolute level of adjusted EBITDA. That's sort of what the target is. Then this translates into a margin eventually. Okay. Thank you. Got that. Thank you. Still no further question that came through, sir. Please continue. Oscar, any final remarks? No. Thank you for listening. We're super happy about this acquisition. It really plays to our strategy in a very high growth segment in this area, consumer messaging and into the SaaS space. To us, it's very, very logical from both of those. We think it's going to accelerate and drive Sinch growth. We feel very comfortable with the team. We've known them for over two years, interacted with them many times. We think it's a strong team, which we'd really like to bring into the Sinch family and get learned from and have them learn from us as well. We're super excited about joining forces with MessengerPeople. That said, thanks a lot for your time and time spent on us. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.