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Thank you for standing by, and welcome to the FirstWave Cloud Technology Limited Quarterly Investor Update. [Operator Instructions]I would now like to hand the conference over to Mr. Neil Pollock, Chief Operating Officer. Please go ahead.
Thank you. Hello, and welcome to FirstWave Cloud Technology's July investor update. As I've been introduced, my name is Neil Pollock, and I'm the Chief Operating Officer of FirstWave. Joining me today is our Executive Chairman, Mr. John Grant.Our objective today is to report FirstWave's FY '20 financial results, the progress we have made and outline for you the company's FY '21 plan. The presentation you're about to see has been lodged on the ASX portal and e-mailed to the address provided with your registration. And during the presentation, we will refer to the slide number we are talking to.Let's move to Slide 3. On Slide 3 is the agenda for today's presentation. We will commence with an update from John, followed by my update on the FY '20 results and the FY '21 plan, which includes feedback from our global partners. I'll finish with a short summary before handing back to John. We will then open the lines for Q&A.Before we start, I want to draw your attention to the appendix at the end of the presentation. There's a lot of content and detail, which expands on the main presentation, including a description of our technology. Some of you may be new to FirstWave, and this may be your first shareholder update. So I invite you to review the entire slide deck at your leisure and raise any questions with us directly via our e-mail.Okay. Let's begin. Good morning, John. Over to you, please.
Thanks, Neil, and good morning to everyone on the call. Let's go to Slide 5. Since August last year when we gave our first quarterly briefing, I've spoken of the formula I thought gave FirstWave the greatest opportunity for success as a global security services company. Let me run through this again and tell you where I think we're up to today.Firstly, this product must be world-class as it has to win against the biggest and the best. FirstWave's platform, CCSP (Cloud Content Security Platform), continues to win in the proofs of value we do with prospective partners. CCSP, as far as we can tell, remains the only cloud-delivered automated orchestration platform that integrates, virtualizes and multi-tenants best-of-breed e-mail, web, firewall and endpoint security applications via a single pane of glass in the world.So what about this is that it solves the perimeter security issue, small to medium businesses across the world who are so poorly serviced, getting enterprise-grade security for e-mail, web, firewall and endpoint as a service from this service provider for an SMB price. FirstWave's addressable market for this solution we estimated conservatively at the end of FY '20 as being $1.88 billion. And we currently have line of sight through our partners to $60 million in recurring revenue.I suggested that the only way it can successfully get into the hands of end customers globally was via partners to whom the product is important in a leveraged channel model. That is 1 partner to many partners, to many more end customers. That can ultimately drive exponential growth. In this sense, I referred to as a numbers game and the numbers say we have 130 partners in the channel today, with 28 moving down our path to revenue model to billing end user customers. I'd also mentioned that it's got sufficient to get partners on board and for them to get customers signed up.There must be a global delivery platform of cloud infrastructure and onboarding and support capability for our partners and their end customers 24/7. We now have this servicing end users on 5 continents.And finally, I said building a global business takes time and money, likely more than expected. With the June capital raise, we now have the funds to execute our forward plan. In saying this, can I welcome new shareholders to the company. Today, I guess, your investment looks pretty good. But can I also acknowledge the loss of value and the dilution that secured for long-standing shareholders. My and your Boards and the whole team's focus is on getting the results that will reward you for the patience you have shown over the journey so far. But that focus, of course, depends on having the best people in the right roles. In this context, I'd like to announce 4 new appointments that strengthen leadership of the company, and I believe will add great shareholder value.Slide 6, please. Firstly and most importantly, I announce, on behalf of the Board, the appointment of Neil Pollock as COO -- CEO of FirstWave Technology Limited. Neil who joined the company in 2017 as Head of International Business has been the company's Chief Operating Officer and Senior Executive since February this year. Out of shareholder guys, Neil has been the driving force that has brought this globally distributed, tightly resourced company to the inflection point we all believe it is at now. Not well known is that Neil is a global business leader with almost 30 years experience in technology across Australia, Asia, India, the Middle East and Europe.Having previously been CEO of Indian-based data center and managed services company, Nxtra Data Limited, a start-up he built from the ground up to be a top 3 player in hypercompetitive Indian data center market. Nxtra Data Limited was recently valued at $1.25 billion following a strategic investment by Carlyle Group. Having worked alongside him doing his tenure as COO, he has gained my confidence and secured the full support and backing of the Board. The Board looks forward to successful execution of this year's plan under him. Congratulations, Neil.Joining the company in mid-August as CFO is Iain Bartram. Iain brings over 20 years of experience as a strategic CFO with multi-site and international experience in high-growth, listed and unlisted technology businesses. But he also strikes me as being a hands-on operator who relishes in the detail. He will offer great value to the company and great support to me as a first time listed company CEO. Iain's on the call today. Welcome to you, Iain. And welcome here. Let me also thank interim CFO, Murray Scott, for stepping into the reach in February and seeing us through what has been a very hectic time. Great job, mate.At Wednesday's EGM, shareholders confirmed David Acton's appointment as a Non-Executive Director. On David's original appointment in June, I said that his addition to the Board is tremendous news for the company and for shareholders. I refer to David's track record in driving performance and his global experience in capital markets and maximizing return to shareholders, and I suggested that, that can help to ensure the company applies to $14.9 million gross from its recent successful capital raise to its greatest advantage.After only 2 Board meetings, but plenty of e-mails and calls in between, I can confirm David is going to bring exactly what I had thought. He is thinking, challenging intelligent questions and suggestions and advises all through the shareholder lens. I'm very much looking forward to working with him. David's also on the call. Congratulations on your election, David.And the last of the 4 is Kevin Bloch. He joins us as an advisor to the Board's newly formed technology and markets committee. Committee will be chaired by Non-Executive Director, Scott Lidgett, and will include Neil and the lead executives of the product and sales functions. It's been formed to give the sort of focus to these 2 critical areas that can't be given at the Board level. And it will engage external experts to provide critical analysis, guidance, advice and networking to assist FirstWave realize its FY '21 plan and position it for sustained success over the long term.Kevin meets these criteria spectacularly. I've known him for many years, both in his role as CTO at the JNA Telecommunications from 1985 to 1998, and then in various leadership roles, with finally as CTO for Cisco, Australia and New Zealand, for 21 years until last Friday. The media release that readout yesterday announcing his appointment goes into more detail, but Kevin's joining FirstWave is a significant coup for the company and for shareholders. There are a few in Australia whose skills, experience and reputations are appropriately matched to FirstWave's opportunity. Clearly, he will be able to positively impact our OEM relationship with Cisco but we expect his impact through our technology and markets Board committee to be across the whole business. Kevin is on the call today, welcome Kevin.Moving to Slide 7. At Wednesday's EGM, all 8 resolutions were passed with around 25% of shares voted and support ranging from 96.69% to 99.42%, an excellent result. No matter how you look at it. Approval of the FirstWave Cloud Technology Limited Rights Plan, which replaces the old option plan which was under criticism by shareholders quite understandably, will not only facilitate the salary sacrifice being taken by directors and the senior leaders in the business, but also provides a best practice tool to continuing to recruit the best people and incentivize and reward their performance on behalf of shareholders.And finally, on Slide 8, let me close by saying, in a moment, Neil will report on our FY '20 performance, and you will find it in line with all of our previous communication. I hope you see the 4 appointments I've spoken of as strengthening leadership, I certainly do. The company is now funded to execute its FY '21 plan, again, thanks -- my thanks to shareholders. And we will continue to report to you quarterly against all the metrics Neil will talk to in a moment, but which have also been shared with you during the capital raise.Let me now hand back to our new CEO, Neil Pollock.
Thank you, John. I'm now moving to Slide 10. The FY '20 results were mixed and impacted by external factors. FY '20, I think, will be forever characterized by landmark global event, the onset and impact of COVID-19. It impacted our business in FY '20, as our partners' marketing and sales teams were either stood down or sent home to work. End customers reacted similarly and took a steady state attitude towards business, as they waited to see how the pandemic is going to play out.I'll talk further in a moment about how our partners are seeing the immediate future, but suffice to say, the solid momentum we'd seen in the first half of FY '20 flattened considerably in the second half. And was one of the factors that saw our total revenue for the year decline 7% year-on-year.The other contributing factor was in the domestic market where the end-of-life of our Cisco web security solution without a suitable replacement was the main cause of a 10% decline in domestic revenue year-on-year. Just to complete this picture, though, Cisco will release its replacement web solution this quarter. We will have it on the platform almost simultaneously. So rather than optimal timing, it is a solution, nonetheless.Internationally, the annualized recurring run rate revenue showed an upward trajectory even in the second half. International annualized recurring revenue grew from $12,000 at the start of the year to $448,000 year-on-year. But this is a disappointing outcome given the acceleration we saw in the first 7 months of the year when international annualized recurring revenue grew to $232,000. Although these revenue results are below our and your expectations, it's hard for me to say to you that there was nothing we could do to change this outcome, but that is the case.What we can say is that all indicators continued to move in the right direction over the full year, and there were a number of highlights to reflect positively on. We grew our partners on the path to revenue from 23 to 130. Importantly, we converted 25 more of those partners to billing partners, those generating revenue, and exited the year with 28 billing partners, up from 3 at the start of the year. We expanded our operational platform to 11 to cover the globe, and we are now where our partners need us to be so that they can turn on revenue.We launched our remote worker cybersecurity suite including an endpoint protection product with a new technology partner, Trend Micro, in record time in direct response to increased cyber attacks on remote workers, as they work from home. As of today, all orders in this solution, which were taken up on our freemium offer, totaling over 8,000 seats, have been successfully converted to revenue. To expand that and give you an understanding of the scale of the business, we ended the year with over 170,000 e-mail seats, almost 63,000 web seats and 83 firewalls under management by our partners.On the cost front, we met the commitment made at the AGM to strip $1.3 million of cost out of the business in FY '20, representing an annualized savings of $2 million. With your support, for which we are most thankful, we ended the year with cash of $15.4 million. We raised almost $20 million net in FY '20, including $14.9 million gross in Q4, which we're projecting to support operations through to cash flow breakeven.Move to Slide 11, please. Slide 11 provides a comparative year-on-year view of the FY '20 unaudited financial results I've just detailed, and it highlights the key revenue, cost and cash numbers.Moving to Slide 12. Slide 12 shows the next level of detail of our operating expenditure reduction efforts, showing Q4 operating expenses, excluding one-off charges, at $3.2 million, down from, like-for-like, $4 million in Q1.Slide 13 is the FY '20 cash flow summary and provides the detail behind the net increase or decrease in cash held for Q4 and the full year. The highlight here is that Q4 cash payments of $5.2 million were in line with the forecast given in the Q3 [ foresee ].Let's move to the next slide. I'd now like to move on to the plan for this year. The FY '21 plan essentially reflects what we talked with you about during the capital raise, as John has said, there's no significant difference. But I want to cover the outcomes of the plan -- that the plan is projecting and what we are doing to get them.Moving to Slide 15. Our FY '21 plan is focused on doing only those things that drive revenue and diligently managing expenses to meet our cash flow objectives. With the return to pre-COVID-19 business activity levels assumed to come in October of this year and successful execution of the plan, total revenue, both recurring and nonrecurring, is projected to grow 38% to $11.3 million. In-year total recurring revenue is projected to increase to $10.5 million, up 43% from FY '20, of which international recurring revenue is projected to be $3.3 million, up from $203,000. Importantly, on an annualized basis, international recurring revenue is projected to reach $9.5 million in June 2021, up from $448,000 in June of this year.Gross margin is projected to improve to 59%, driven by higher margins from international recurring revenue. This is 1% down on the capital raise projections due to pricing pressure, which I'll cover in a few minutes. Year-on-year costs are projected to increase by less than 2% through continued diligent cost and cash flow management, whilst we sustain investment in technology development and increasing investment in sales and marketing. At year-end, cash is projected to be $4.8 million, with average monthly cash flow dropping to less than $1 million -- cash outflow dropping to less than $1 million a month.Slide 16 provides a comparative year-on-year view of the FY '20 projected revenue margin and monthly cash flow. I've highlighted the key takeouts.On Slide 17, we detail the actions we will take to deliver these outcomes or that we're taking. Increased investment in sales and marketing. We are putting more sales and presales people on the ground to secure more partners and speed up conversion of opportunities to revenue. We've increased the marketing budget, and this is being used to promote our Cloud Content Security Platform, CCSP, more effectively to partners and market influencers.The FY '21 sales and marketing plan is focused on incentivizing the team to overperform. Targets, KPIs and incentives are clear, unambiguous and have been published internally. In fact, 80% of non-sales leadership team incentives are tied to company performance rather than individual performance. We're continuing to invest 25% of our operating business -- operating budget in product and technology in order for us to stay ahead of the competition, and we are streamlining and automating our engagement with our partners through a new partner portal to speed transactional customer operations to support faster revenue turn on. And finally, we're expanding our 24/7 operational support at the right cost to ensure our end customer support remains a genuine differentiator for us.Moving to Slide 18. Very briefly, the plan also projects growth across all our lead indicators, as you can see on this slide. I won't dwell on this, but you will be updated on this, as John has said, on a quarterly basis.Moving on to Slide 19. The plan also projects more partners converting to billing partners, selling enterprise-grade cybersecurity products in a cybersecurity-conscious market to deliver growth across our product portfolio. Our new advanced detection and response offering, which is a joint development with our partner, SHELT Global, will be rolled out progressively across our products between now and June 2021.Advanced detection and response will have the effect of enhancing the attractiveness of our existing offerings by transforming our current security through prevention to security through detection and active response. This will provide SOHO, micro, small and medium enterprises across the world with a real lift in perimeter cybersecurity available to them today.Slide 20. Final thing I'd like to do is to give you some insights into what our partners are telling us about the immediate future and some of the projects we are doing around the world.You will see on Slide 21 that across the world, there are regional variations but our partners tell us that there are a number of consistent themes that they are seeing. Firstly, with sales teams stood down and businesses working out how to get back to doing business, sales activity and the momentum for end customers to invest new money remains significantly reduced across the globe. There's no denying it. However, we are working with our partners to be ready to go with them as and when sales teams come back online, which we are actually starting to see in India and, to a lesser extent, in the U.K. But our partners are also reporting a pronounced shift in customer focus towards SaaS-based products, particularly to meet the cybersecurity needs. FirstWave has the right technology solution to meet this shift.Also, as a consequence of the increased risk of cyber attack, as people work remotely, endpoint protection is emerging as a new requirement and a key requirement. Outside the protection of a secure network, end customers are confirming that they need to protect their workers and our endpoint protection solution does exactly this.Next, our partners are also telling us that they're seeing faster decision-making when decisions need to be made. It seems counterintuitive that sales activity has diminished or reduced, but decisions are being made faster. It's the decisions that are being made when they need to be made. But there is pressure on pricing. This is not unexpected, and we are working with our partners to manage this the way we did with our freemium offer on remote worker cybersecurity.Finally, the new norm. Everyone's talking about it. We all need a way to work securely from home, and that's what we do at FirstWave.Moving on to Slide 22. So what does this all mean? Well, firstly, the macro demand for cybersecurity as a service, particularly for the poorly defended SMB and SOHO segment, is strengthening. This is good news for us in FirstWave -- us at FirstWave. Secondly, there's also no doubt that the near term is dominated by COVID-inspired restraint. How long that will last is anybody's guess.Our plan assumes we'll be back to doing business at pre-COVID levels October of this year. What also came through from our partners is an emerging determination from them and their customers to get back to business irrespective of COVID-19 as quickly as they can, and they're looking for ways to do it. The global economic imperative for this to happen is really clear to everyone, and it's good for both FirstWave and for everyone.On Slide 23, I'm trying to give an insight into some of the projects we are working on today across the world. I'm going to work this slide clockwise from the top left-hand side of the slide. In Europe and North America, we are back in proof of value with a Tier 1 European telco. I say "back in proof of value" because this opportunity actually existed pre-COVID, but it was put on hold in January as COVID hit.In Asia and India, we're in proof of concept with a Tier 1 telco with one of our new recently launched multi-tenant firewall products. I can tell you today, it is progressing very well.In ANZ, Telstra have added our endpoint protection product to their Telstra Business Cybersecurity Services suite with above-the-line marketing dollars being spent. First orders have been received and we've provisioned them. So we are already generating revenue from this new release. We are also projecting to be in the market with a new web security appliance in this quarter, as I indicated earlier.Finally, in the Middle East and Africa, a Tier 1 telco in Nigeria is preparing to launch our endpoint protection solution in their market -- on their marketplace this quarter. And we're in proof of value with a potential new Level 1 partner, which will significantly expand our reach into Africa. Our first on-premise platform deployment outside of ANZ is well underway as well.So in summary, on Slide 24, while COVID-19 impacted our FY '20 aspirations, we pivoted quickly to address end user security concerns with the remote worker cybersecurity suite, but sales momentum stalled in half -- in the second half. Our FY '21 projections assume business is back to pre-COVID-19 levels from October this year.Our partners remain committed to our Cloud Content Security Platform and to FirstWave. The macro focus on cybersecurity is increasing. And while near-term restraint remains, there's an emerging determination to get back to business.Our product and service offerings remain fit for purpose, and we're continuing to enhance the functionality of our core e-mail, web and firewall offering. And our new detect and respond capability is expected to sharpen the value proposition for our partners and customers.Our objectives are clear and our activity is high. We are bringing on new partners to convert more opportunities to revenue, and we will deliver technology to stay ahead of the competition. And importantly, thank you, we are funded to deliver the plan.That's it for me. Thank you for listening. I'll now hand back to John for closing comments. John?
We're on the thank you slide, everyone. Thanks, Neil. We've given you a lot of very specific information today about our FY '21 plan. Some would say, "a rod for our own back," maybe yes, maybe not. It's never been my practice to be restrained in the information companies I have been involved with have given stakeholders. I believe better informed people make better decisions.What we have given you, however, is the most informed view we have from the bottom up, and taking into account, as best we can, all the risks we know exist. But you'll know exactly how we're going when we report against this information each quarter. And what you can be absolutely certain of is that the Board and the full FirstWave team all have a stake in the business and are totally committed to the task at hand.Let me now hand over to the moderator for your questions.
[Operator Instructions] The first question comes from Nick Harris with Morgans.
John, Neil, Iain, David and Kevin, quite a few people on the call, John, congratulations on getting such a high-quality number of people on the team and Neil's appointment, congratulations as well. It looks like there's definitely some real quality on the bench now. So well done.Just a couple of questions from me. Just wanted to understand a little bit. Just firstly, that international recurring revenue target, I thought you had a $200,000 target in May. And the numbers I was seeing here are above that. So it looks to me like you beat, but also that it was from some nonrecurring stuff. Could you just maybe explain that?
I'll hand it over to Neil, Nick.
Yes, Nick. So there's -- we talk about our revenues in 2 different ways. We talk about monthly recurring revenue and we talk about annualized recurring revenue. So the $448,000 is an increase from $12,000 the previous year in international annualized recurring revenue. And the $200,000 -- the in-year revenue was -- for recurring revenue was $203,000 for the year. So yes, I hope that answers the question.
Yes. So I thought your international recurring number would be 200, and you're in-year is 200. So is it fair to say that, that momentum is better than expected? Or am I misreading something?
So it's -- well, it's disappointing because of where we were from an annualized recurring revenue perspective after 7 months. What is true is that we did continue to grow the international annualized recurring revenue from $232,000 in January to $448,000 -- so look, yes, we more than doubled it, but it's still disappointing because we had aspirations of that number being much, much bigger at the end of FY '20. And given the growth that we saw in the first 6 to 7 months of the year, Nick, we certainly were on the right trajectory.
Let me jump in and give you another way of looking at this Nick. So annual recurring revenue in the year is $200,000, but [ exit June ] multiplied by 12 gives you $448,000. So we enter FY '21, base international recurring revenues of $448,000.
Okay. That makes sense, yes.
And you're right, that's ahead of where we thought we would be. We got uplift in the second half. That was great to see.
Got you. So disappointing versus 12 -- your expectations 12 months ago, but better than expectations from the most recent investor deck prior to this. That's good. Well done. That's what I thought. I just needed to clarify. So well done.Just secondly, just keen to understand, obviously, you've added a couple more billing partners in this quarter. Just, I guess, what are you seeing there? Is the increase in that international ARR from billing partners you kind of -- partners you converted to billing partners 6, 9 months ago and they're starting to sell to the end customers? Or is it because you've got more partners trialing your proof of concept in your product internally? Could you just...
John, I'll take that as well, if you want?
Sure.
Yes. Nick, it's both. So what -- as John always -- John always refer to our business as a numbers game, and that's exactly what it is. So the fact that we took the number of billing partners from 3 to 28 means that we've got more partners in the market actually producing revenue, which is a good thing. So it's a compounding effect.The second part of it is that we did bring on new partner or additional partners in Q4 and therefore -- and what that means is that whilst their initial revenues might be small, they are at least now on that path to revenue in the billing path -- of that path to revenue, if that makes sense. So what we've -- so as you -- as we build this, as billing partners increase, the older, respectfully, the ones who've been with us longer -- billing for longer will clearly generate, hopefully, more revenue on a monthly basis than the newer ones. But those newer ones, as we work with them, will get to the point where they're also generating more significant revenues.The other part of this that I want to highlight is the way -- what the funding that shareholders have given us has enabled us to do is to put more boots on the ground, more feet on the street, more sales and presales guys to work with our partners so that as they come out of the impact of COVID-19, we are working with them to further accelerate, not only conversion of partners to billing partners but also the speed at which our billing partners are able to sell into the market.
Got it.
Nick, maybe if I just add to that, what everyone should be doing on the back of a piece of paper is dividing the international recurring revenue by the number of billing partners, that's to show average per partner. If you like, that's a number that we'll report each quarter so that you might do the calculation yourself, and what it has to show and should show is that the average continues to increase.
Absolutely. You'll get new ones that might start low, but the ones that you added maybe 12 months ago now should definitely pull the average up. That's great. I thought that was a great quarter. So well done. And again, congratulations on the bench strength, and Neil, in your new role.
[Operator Instructions] The next question comes from [ Thomas Schumacher ] with [indiscernible].
Just a quick question. It probably relates to something that you covered there with Nick, I think it was who asked a question previously. Just on Page 20 -- sorry, Page 16, the table there obviously has the recurring revenue numbers for domestic and international. And international is $3.3 million. And then to the side, you've got recurring revenue, which you forecast to grow to $18 million by the end of FY '21 versus $7 million for FY '20. So just in simple terms, can you just repeat that how you work that out? Obviously, it's -- you're annualizing your recurring revenue as you exit FY '21, June 30, is that right?
Correct. So what happens is you take the exit recurring -- monthly recurring revenue and multiply it by 12. Does that clarify that?
Yes, I just wanted to be clear. And the second thing is on Slide 19, you're talking about the advanced detection and response, ADR. I might have missed that in some prior presentation or announcement, or is this a new initiative? And if it's a new initiative, can you just give me a little bit of color on what exactly that is and why it's significant?
Yes. Happy to do that. It was reflected in the capital raise presentation that was uploaded. I can't give you the slide number. I'm happy to feed that back to you. But it's on the end. What it is, is it's the next progression in the evolution of our product set, if you will. In -- when I joined the company in 2017, we had e-mail, web and firewall. Last year in FY '20, we implemented endpoints. So we went from e-mail, web and firewall to having EWF&E, E being endpoint.In FY '21, and in fact, it's this quarter, the rollout of advanced detection and response technology will occur on our e-mail product suites -- product offering in this quarter. That's how far advanced we are with it, and we've been working on it for a while. What it does is it, at the moment, what -- the way our technology works, and it's the right way -- does what it's supposed to do, is it prevents hack. It's a prevention mechanism, if that makes sense.What ADR does is it evolves the prevention to a detection and an automated response to that attack. So it's a significantly advanced level of technology on enterprise-grade security appliances which do the job anyway from a prevention perspective. It's a little difficult to explain in a short period of time. But I hope -- does that give you a flavor for what the evolution is, what -- it's abbreviated ADR, advanced detection and response, does?
You're right. So if I'm sitting here with e-mails coming into my inbox. And I'm getting an e-mail from, let's say, someone who is in my contacts, and there's an issue with the e-mail or their system has been hacked or something, you're saying, in simple terms, it would detect that ahead of coming into my inbox?
Yes. And then it would respond to that. And it doesn't wait for you to do something with it, it does it itself.
Okay.
And that's especially important because what's happening today is exactly what you've just described. More players in the market, there is significant -- there's been thousands of percentage uplift in the level of targeted fishing attacks, malware, ransomware. So even a known -- someone supporting to be a known contact of yours sending you an e-mail, if they have been infected, that e-mail could very well come through because of the recognized e-mail address. But even today, the e-mail security appliance that we have would prevent malware from coming through.So if it contained ransomware or malware or a Spybot or something of that nature, it would still prevent it from coming through, but what ADR does is it will detect it sooner and automate the response. It's an added level of protection. And that is not available -- that level of technology is not available to SOHO, micro, small and medium enterprises today. It's way too expensive on a -- just not offered on a consumption basis.
Right. So the follow-on would be is that it's a big carrot for those smaller clients?
Yes. It enables our partners to wrap advanced detection and response technology around our existing product set, and give, on a consumption basis, on a cybersecurity as a service basis, end customers a significant lift in perimeter cybersecurity.
And using your current relationship with say Telstra being our client that had a relationship with FirstWave for a long period of time, would they have anything similar as an offering for the smaller clients? Or is that -- it would be [indiscernible] Telstra?
No, not as far as I'm aware.
There are no further questions at this time. I'll now hand back for closing remarks.
Well, thanks -- sorry, jumping in. Look, thanks, everyone, for listening today. We haven't got anything more to say. I hope you've found your time well spent. And look forward to talking to you again next quarter. Thanks very much, everyone.
Thank you, everyone.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.