Good afternoon, everyone, and a warm welcome back to DNB Carnegie's Small & Mid-Cap Seminar. Our next company to present is Vertiseit, and today we are joined by the Deputy CEO, Jonas Lagerqvist. We will start by a company presentation and finish off with some Q&A. Please go ahead, Jonas. The floor is yours. Thank you very much for that introduction. I am representing Vertiseit, a company who I have been with for almost 10 years. We are in the space of in-store experience management. Our vision is to connect a world of retail, and we do that through providing a platform that enables digital touchpoints to be implemented in the physical customer meeting in order to bridge the gap between the digital customer meeting and the in-person customer meeting, enabling a seamless customer journey, an omni-channel retail experience, and also a unified experience of the brand. AI and modern technology are, of course, disrupting the modern commerce and the expectations from customer in a pace that has never been seen before. With that, it comes increased demands to actually handle these in centralized and unified way by also connecting the digital touchpoints in the physical customer meeting to the IT infrastructure of brands and retailers. Porsche is one of our largest customer, not representing more than 4% of our ARR, yet it is one of our major customers. Have been with us for quite some years. Together with them, we have rolled out our platform to enable them to manage their customer meeting in a centralized way all across their global retail network. We provide a platform that supports both brand communication, tactical communication in terms of communicating price specifications for products and so on, supporting handheld devices for sales staff, and also enabling the dealerships to actually set the scene depending on which audience is in the premises. If there is a majority of the people in store interacting with 911s, for example, the retail space gets more of a sports car ambiance over it. If there are people interacting with SUVs, there is more of an active sports-like family setting to the whole retail space, which is made possible by our IXM platform. Today we serve Porsche with software only and related consulting services across 60 countries in 800 of their dealerships. As of today, we support more than 10,000 touchpoints for Porsche, as an example. The core of our offering is the in-store experience management platform, and that is what enables us to build products and modules on top of that, which our three business brands then sell to our customers and users. The platform enables the end customer to manage their experiences across their retail networks, ensure that experiences, applications, content, and so on is distributed across their locations and background data is ensured, such as the currencies, languages, geographies and so on. It also supports the actual devices so that they get their firmware updates and so on. It is quite central feature set for a global retailer. Among our customers, you find many of the most renowned consumer brands across the globe. We have around 1,000+ brands on our customer list. We closed Q2 with an ARR of SEK 440 million. We have 300 employees in the company, 50+ partners who are essential in our go-to-market strategies. We currently run approximately 500,000 devices in our network. A device is equals to a license, and a license is equal to a monthly SaaS fee. As I just mentioned, we have three business brands. We have Dise, Grassfish, and Visual Art. For those who follow us know that we finalized recently the acquisition of Scala, which is one of the most renowned brand in our industry. Scala is now an integrated strategical product offering within Dise. Within these three business brands, Dise, Grassfish, and Visual Art, we have three different go-to-market strategies. The one that unifies all three is that we, in one form or another, rely on partners for the heavy lifting. We have three segments. It is SaaS, it is consulting, and it is systems. SaaS is the core platform. Consulting is related consulting services representing a minor part of the revenue. Systems is the hardware, which is only part of the Nordic offering as of today. It is a legacy offering that we do not offer to outside of the Nordics, and there is no ambition to scale this. On the opposite, what we aim to do and what we are doing is to constantly increase the SaaS share of revenue. We always work together with partners. Dise produces and offers only a standardized platform sold solely through full service integrators who are partners in all parts of the world. Grassfish and Visual Art, they aim to provide their product to enterprise customers through direct sales, but working side by side with partners who does the heavy lifting when it comes to consulting and when it comes to hardware rollouts, on-site support, and so on. Altogether, a partner-led growth strategy with increasing share of SaaS revenue. Our vision is to connect the world of retail. Our ambition is to become the number one platform company within our business. We measure our performance and track ourselves through our ARR development. For as long as we have measured our ARR, we have never decreased SaaS one single quarter for the last 14 years or so. We have always had an organic growth from quarter- to- quarter. In parallel with this organic growth, which has been between 15% and 20% annually, historically. In parallel to this, we also perform strategic acquisitions. The leaps in the bars here represent each larger acquisition that we have done. The last jump here in Q2 was the acquisition of Scala. We currently have SEK 440 million in ARR, which represents 50% of our total revenue. Looking into the organic growth and the drivers behind that. So of our current organic growth pace of 15%, approximately half of that constitutes of growth on existing customers which can also be followed in our SaaS metric. So it is the net revenue retention. We are currently growing at a pace of approximately 15%, and out of that, 7% is growth on existing customers. Circle K, for example, represent one of these cases where you can understand where the organic growth on existing customers come from. Circle K has some +14,000 retail outlets in the world. In their concept that we have developed together with their partners, there are eight touchpoints on average in each retail venue. So if we ever were to come to a 100% penetration, that would equal 114,000 SaaS licenses on this customer only. We are on 12,000 now, so we have penetrated 10%. On average, looking at all our brands in our portfolio, we average 30% penetration currently. So we grow on the existing brands, but of course, we also onboard new ones starting at zero. Brief Q2. Read more, if you like, in our reports. But we increased ARR 50% compared to last year. Out of this, SEK 85 million were represented by the Scala acquisition, which was finalized in June. Increased profitability. Adjustments that were made is only for acquisition costs. No other adjustments are done. We also measure our profitability in cash EBITDA and to have a profitability measure that actually can map to the real cash flow. Our net revenue retention was 107%, meaning that half of our growth comes from existing customers. We communicate long-term goals. In our current goal period, which stops at 2032, it might sound like a distant future, but time flies. We are to go from SEK 440 million in ARR to SEK 1 billion. At our current growth pace, we will sort this out organically. But since acquisitions is an important part of our strategy and we have done it successfully up and until now, the SEK 1 billion we will most likely reach ahead of the timeframe. At the end of the goal period, we should also have a cash EBITDA profitability of 35%, which we will reach both through economies of scale and also through increased share of SaaS revenue as part of total revenue. Yeah. So moving hardware and consulting business towards our partners, focusing on the delivery of software. The share of SaaS revenue we had when we listed the company in 2019 was 25%. We are currently at 50%. I would say that during the goal period, we will move towards 75% of total revenue should be constituted by SaaS. During the goal period, we also have a couple of financial targets which we must exceed during the period as well. So we should always grow our ARR by at least 20% annually, including acquisitions. Profitability must increase by at least 25% per share during the period, ensuring that we have an M&A discipline, not diluting shareholders. And the qualitative financial target that we have is that we must always grow on existing customer, meaning that we always must prove our business value. We must always have satisfied customers that want to grow their business together with us. The market opportunity or the total addressable market is more or less every retail space in the world. But if we are to take it down to a little bit more concrete aspect, if we take the 50 largest retailers in our five core customer segments, they together operate 1.5 million retail spaces in the world. And on average, in an up-to-date and modern digital in-store concept, we have approximately 10 licenses at each venue. Meaning that by that mathematics, we have 15 million licenses on the top 250 retailers only. So only the tip of the iceberg is 15 million licenses. And in terms of our current size, we have 3% of that market. So what we wish to illustrate by this is that the demand side or the market size, that will not be the constraints to our growth or to our success. So vision to actually connect every retail space in the world, and the ambition is to do so by being the platform provider to the retail spaces and become the number one platform company within in-store experience management. Fantastic. Thank you very much, Jonas, for that introduction. If anyone in the audience has a question, hand up. And also a reminder to everyone listening, there is a possibility to ask questions digitally. But let me kick off with 10 years you've been at the company? Yes. In the company. in the company. Yeah. Yes. 15 years together with the company. Okay. You've been basically there from the start, more or less. Yes. What have been kind of major shifts in the industry over your tenure here that has really created opportunities or risks for you but that Vertiseit has capitalized on? I think the major shift is the development that more or less all businesses go through as they mature. Even though our business, digital in-store, has been around for almost ages, it is still quite immature in the sense that it is more or less dominated by local full service providers that are local or at best regional. Everyone who has been looking into other business, for example, look at e-commerce, where almost every e-commerce consultant in the end of the 1990s had their own e-commerce platform. Today, it is totally dominated by bigger platforms like Shopify or WooCommerce and a couple of others that has 85% of the platform market. There are still immense amount of consultants working on top of these standardized platforms. This is the evolution that we see in our business as well, that they are becoming specialists in the value chain. In that value chain, we have chosen to become the number one on the platform side, because that is where we come from and that is where we do the best job. There are more and more in our industry who decides that they should not develop their own platform, but rather turn to us and become partners, and keep doing what they do best, supporting local and regional customers, but not having to develop their own platform and keeping up with investments in AI and the information security certifications and so on. Who is your typical counterpart within a typical customer? Is it more of like a land and expand, you start with one Porsche dealer, or is it already higher up in the organization? What does the typical customer journey look like for you? It is very different between Dise and Grassfish, for example. Dise is the partner first, partner only. Dise has no direct customer relations at all, unless it is asked for by the partner. Dise only approaches potential partners, and then supports the partner with third level support. Then the partner has the direct relationship with the end customer. In Grassfish, the counterpart is almost always C-level decision makers who wants an enterprise solution that can support their own digital in-store internal team. Large retailers like Porsche, like BMW, like Circle K, that has large digital in-store teams that requires an enterprise-grade platform to support, that they take their own responsibility for that. That is typically the two main counterparties. You mentioned a little bit about your goals and visions. You have competition as well. What is the typical drivers for selecting Vertiseit compared to other options in the market? I would say that if you require all kind of information security certifications, you require your platform to have headless capabilities, to come AI native with MCP Protocals and so on, then you more or less need to go to a larger player like us, since even though local full service providers can be a hard competition for us in individual tenders or individual competition, they still have hard time keeping up with the increasing demands set by enterprise customers. Because the demands is increasing year by year. You had an interesting case study with Circle K. You mentioned 10% penetration, you said 30% across the customer portfolio. Some of your really mature customers, what kind of level are they on in terms of maturity or penetration? Sorry, I didn't hear. The customer category? Either more of a mature customer where you've come far. Yeah. Where does this penetration level typically- Yeah cap out on? Yeah. I would say that large customers that are mature, they are on maybe 50%-60% on average. There are exceptions of course, but since our solutions are often and typically a part of an interior concept or a store concept and so on. Then we typically follow these investment cycles in the companies. But on average, we are on 30%. Then we have some good examples where we have reached a substantially higher penetration. But at the same time, we are, of course, always landing new customers that are starting at zero. But the more the pure platform deals that are made and the more of the pure platform requests that are made, that increases the number of implementations that can go in a faster pace if you are not that much dependent on an ongoing physical rollout. That is why it is beneficial for us to go in and replace a current supplier, for example. Okay. But basically, you could more or less achieve, based on the kind of numbers you presented on penetration and revenue retention, you could grow 6%, 7%, 8% organically without adding- Yes Customers for quite a foreseeable future. Yes. By only working on our current customer base. Yes. Yeah. Yeah. Okay. But in parallel, as I said, for us in this ecosystem, acquisitions have been very successful for us, given the nature of these very sticky revenues. We have done approximately 10 acquisitions over the history of the company, and not a single one of these acquisitions have we decreased the ARR that we have actually paid for. So it is sticky. It is very person and business independent. So up and until now, as long as we have gone in and added our offering to the businesses that we have acquired, we would always manage to increase ARR post-acquisition. Very good. Let us take a few questions here from the chat. Now with Scala in the books for a while, how has your partner channel developed? Are old Scala partners joining and expanding their partnership with Dise or vice versa? Very good question. Scala was originally a partner-only play, started in Norway. When they got acquired by an American company, they gradually destroyed that model by stealing their partner's customer, making them direct customers, upsetting the partner channel. Scala was the role model for our Dise offering because we were Scala partners from the start. So when we acquired Scala, our first message to the partner channel was that we are restoring the partner first, partner-only strategy, and all direct customers that Scala has accumulated over the years, we will turn this back into the partner channel. So both by sending this message, but also delivering on that by actually giving back direct customers to the partner channels have really strengthened the partner channel's confidence in us as an owner of the Scala brand. We are currently experiencing an increasing amount of inbound requests from previous and kind of dormant Scala partners who lost trust in Scala as a business, but still has trust in the Scala product. We see great opportunities with Scala going forward because, at the end of the day, it's more or less the brand that started this business, and it's by far the most renowned brand there is in this business. Your goal of profit growth over 25% per share is a bit behind your goal right now. Are you as confident on this goal as on your ARR growth goal? Yes. I would say that starting with this Scala acquisition, we have decided on a somewhat changed approach to realizing synergies where we actually realize them more or less on day one. The day after the Scala acquisition, we communicated the new organization, the changes that were done in the organization. Starting now in Q3, Scala will contribute with the profitability in line with the 35% cash EBITDA. That is our long-term goal. In these kind of the roll-up acquisitions that we do, when we more or less acquire a customer base, we will not accept any acquisitions that doesn't contribute to profitability by at least the level that we have in our long-term goals. It's our first and foremost focus in that time from here going forward to actually also prove that with scale comes profitability and cash flow in our business model. Very good. Thank you very much for your presentation and your answers. Unfortunately, our time is up. Thank you, everyone, for joining us and listening today. Thank you. Thanks for having me.