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Hello, everybody, and welcome to today's event, where we have the pleasure to present Agillic. Joining us from the company and to help us through this presentation, we have Emre Gursoy, CEO. Today's topic, of course, the annual report, also look into 2022 and a little bit about how you're developing your Reboot 2.1 idea and where are you on the targets and everything. So that we will do the presentation.As always, you're very welcome to ask questions down in the right-hand corner, do it through the presentation. I will collect all the questions, and we will take most of the questions in the end after the presentation. But do not hesitate to ask them while the presentation. And also in Danish, I will try and translate to my best ability.But Emre, I think you should take it from here.
Excellent. Thank you very much, Michael. First and foremost, welcome to everybody, especially in a day as such there are absolutely as to realistic circumstances are surrounding the market and the news as we are all approaching to it. So I'm very appreciative of your time dedicating to listen to us.So we'll -- what I would like to do is just take you through a very quick presentation of our company and what we stand for and then dig into some of the results that we have just published this morning in regards to 2021 annual report. So we are a Software-as-a-Service platform, operating internationally within the marketing technology sector. Our product is an omnichannel marketing automation platform, empowering brands to work with data-driven insights to create, automate and send personalized communication to millions. Our -- through this activation of first-party data, our clients maximize the value of every customer experience with higher conversions, high retention and increased customer lifetime value. So that's our main focus and the offering of our platform.Our client engagements, they cover across a broad penetration across multiple industries, retail, finance, travel and hospitality, technology and cloud, entertainment and gaming, energy and utility; is a very broad portfolio. We have completed 2021 with 97 clients altogether with a total ARR of DKK 55.7 million. Almost 100% of our revenue is generated through license fees and direct ARR subscriptions. And we have been in the Nasdaq First North market since 2018.If you look at our company's footprint, we are headquartered here in Copenhagen, and then we have sales teams in Berlin, Malmo in Sweden, also in Norway. Also development teams outside of Copenhagen, we also have them in Romania, in Krujë, and in Kiev in Ukraine. Now maybe it is also important to mention at this point, the team, our development team in Ukraine, we have a very close contact with them right now, and we are actually trying to help them to come out of Ukraine, if they wish to do so and fully on board with every help that we can supply. In the meantime, I also want to mention that there are no risks on our business in that sense that our development team's engagement from there do not bring any risk for our business. But from every other aspect, we will be doing everything we can to help them during that tough period.If you look at -- I always like to look at back and what we just did throughout the year because this gives you kind of a perspective of the numbers that we'll be talking in a minute. It is actually quite interesting. Exactly in January 2021, we have launched our Reboot 2.1 strategy, growth strategy, and it had specifically 3 areas of focus: Growth of our business through internationalization, agile and scalable reciprocal cost-efficient go-to-market model and an operational efficiency to create speed to market. This has been the main focus of our growth, which was highly driven by partner engagements that we need to build of the ones that we have and the ones that we want to have going forward.And I'm very proud to say that if you look at our 2021 business highlights, this is exactly what we have actually achieved. Starting from January, February, multiple international partner engagements in our core focus markets, that is mainly Germany, Norway, Sweden. And besides our direct sales team members increasing on the footprint in all these locations that I just mentioned. In addition, we have also had the opportunity to make some changes, proper organization of our Board of Directors already in the beginning of the year, in the first quarter we already received 2 new Board members with heavy experience within the market that we operate. And later in the year, we have also welcomed 2 new C-level engagements. Claus Boysen, we have announced that he will be our new CFO joining us as of Tuesday next week. And then we also had Rune joining us as our Chief Product and Technology Officer as of 1st of December.Overall, the business highlights are actually quite a quick view of our growth altogether. And if you look at the impact of this, I mean, have we delivered on the financial goals and have we delivered on the focus that we have had, and that is absolutely that I'm most proud of sharing with. We have had all the way from the beginning of 2021, 3 main financial goals; double-digit percentage growth rate in our ARR subscriptions, positive EBITDA and positive cash flow from operations. And in 2021, we have managed to complete the year with DKK 52.8 million revenue and you can see 2017 forward year-on-year development of our revenue. And our EBITDA that we have a second year in a row that we are achieving a positive result and based on of our aim.And on the right side, you can see our total ARR development year-on-year with final region of DKK 55.7 million altogether. Also the financial performance parameters are increasing year-over-year. And this is exactly as what we have predicted on our guidance and very happy that we are able to achieve that.If we get into a bit more details into the numbers so far, I have 2 pages here that I would like to give you a bit of a perspective. The first one is focused on financial highlights. Second, more on the SaaS highlights. On the financial highlights, I think the top line improvement parts that our revenue increased 4% throughout over year and 11% in Q4 alone. The main reason for higher revenue growth in the Q4, it's basically the number of clients that we have been gaining throughout the year has increased as of the end part of the year, which gave us the higher revenue increase, which is very good because this will give a full impact in 2022.Our gross margin is slightly decreased from 88% to 85%. Our adjusted employee cost transferred to capitalized development costs. So the employee cost declined slightly from DKK 29.8 million to DKK 29.3 million, is almost the same. Total operating costs remains the same in 2021 versus 2020, around DKK 44.5 million. And our EBITDA increased to DKK 0.7 million. And again, our focus is keeping ourselves on a positive EBITDA and slightly investing everything back into our May business in how we can actually invest back into sales and technology which I'll comment on it shortly.And finally, that we have completed the year with a solid cash position of DKK 20.6 million in the bank, which also gives us, ensures that we do not have any further financing needed in the next period that we are looking into.If you look at into the SaaS highlights. Now as of end of December, our total ARR amounted DKK 55.7 million of versus DKK 46.5 million last year, that's a DKK 9.2 million increase year-on-year, around 20%, whereas 12% of this one comes from our subscription and 72% of this contribution comes from our transactions. The reason that the transactions are showing tremendously high, one of the reasons is naturally 2020 was COVID year and the transactional part of our business, highly depend on the market situation. And that kind of showed that the market is going back into the -- moving into the new environment. And I think the market is coming into a bit of a normalization. As I'm saying, this we're also experiencing a different situation right now, but I'm hopeful that this will be -- have a much less of an effect in the market than what we have experienced in 2020.There are a couple of elements that I would like to highlight on our SaaS metrics. And so I mentioned earlier that the number of clients now up to 97. Our net retention rate has -- is now over 100, which is a very -- confirming a fact that our efforts in regards to retaining our clients, growing and working with them is showing good results of our customer success team's engagement. Then we have 2 specific parameters that we keep quite a close eye on; one of them is the customer acquisition cost. I'm very happy to see the result is now down to DKK 300,000 on customer acquisition costs, which is basically quite a low amount. It's knowing that our average ARR is double as much. So when we have a business of gaining new clients are costing half of our own ARR average, that's a very solid positioning for us, and we want to keep it low. But we also believe that this is as low as it can get from our point of view.If you look at the months to recover customer acquisition cost, that has also declined down now to 8 months from -- it was earlier 18 months 2 years ago, 12 months last year and now in 2021, we are coming out with 8 months, which is another aspect of a strong focus of our efforts in the growth journey.
Emre, if I can ask just a short question. There was a question out there in the boxes on the churn. I know you don't give that. I can also see net retention, I couldn't find it reporting. So very nice to see the development here that you're actually having there. Can you give some kind of a comment on churn? Or is there a reason why you're not giving that? It's a normal parameter. Is it too hard for you in a changing world or in changing to give? So any comments on that, if possible, Emre?
Absolutely. The reason that we have chosen is basically the decision that has been agreed within the Board of Directors that the reason that we do not share the churn numbers is that the definition of churn in the market is different from one sales company to another. One of the reasons for us to go into that specific parameter is that we are referring to the number of clients that we have year-on-year, it is not very hard to make these calculations if one chooses to do so. But what are -- I can tell always that, I always say the same, our main focus is to keep churn below 5%. That's our main focus. And that is the global SaaS company success ratio. If you can keep your churn below 5%, that's a fantastic business. And that's our aim. That's every -- I mean, we measure it very closely, and we work with that very closely. So that would -- that is our benchmark, and we try to get that one throughout the year, and net retention rate is one of the elements of signaling where we're aiming.
Now, I'm a little bit cheeky. Emre, did you succeed this year?
I mean, if I will be able to give the numbers, I will share them right away. But we are -- I can assure you that it is one of our key focus areas, and net retention rate is then, again, as I'm saying, is a very good way of looking at it that it is actually in the right direction. Right. But let me just give you a bit more examples on some of the other bits of the, for example, the growth trajectory, looking forward, how do we see the growth? Because this is exactly -- it's a part of the churn conversation or net retention rate conversation is highly dependent on this.So the way that we look at it is, as I mentioned earlier, that we have the 3 financial goals that we were with double-digit percentage growth, positive EBITDA, total cash flow. Now these 3 elements are actually a combination of our growth, but not all of it because the full picture is defining through our work with our existing customers and retaining them and growing them and eliminating churn. So these are multiple elements working together.Now it is also very important to mention that. Since 2 years ago, we have focused 100% to our technology development and no other professional services coming out of our business. And we are working very closely with our partners. So our partners' success and their help on retaining clients within our portfolio for a long-term journey is a very big part of the strategic decision as a result of it.What we are aiming now with 2022 guidance that we are aiming for and which by the way, let me just mention that we have shared this guidance already in 2021. So it is the same guidance that we are following. We're just detailing a bit more with the subscription and the transaction part of our guidance details.Now when we look at our guidance that we are moving for a total ARR of 65 to 70 and spectrum of DKK 65 million to DKK 70 million. Of that amount, DKK 56 million to DKK 60 million, we're expecting to come from subscription part of it and DKK 9 million to DKK 10 million from the transaction part of it. Now you might ask yourself, if you're increasing your number of clients and if you're increasing your -- moving into a new year and you're achieving a transaction of this amount, why don't you guide that one also higher?The reason that we have chosen to do so is one of them is the current circumstances. And the second thing is that we would like to have a good upside moving forward in the year. So our main growth we are aiming is through the subscription part of our business, which is basically the main focus as we keep an eye on it.Our EBITDA, we are keeping it a plus DKK -3 million to DKK 3 million. Now again, one question might be, I mean, didn't you just say that positive EBITDA is the main focus? Yes, it is, and we are aiming and we are highly focused on that. But in the meantime, we are a growth company. And if it happens that there is a tremendously interesting opportunity ahead of us where we need to make an investment in the short-term for a long-term payment, there is a possibility to do so. And that is the allowance that we have been guided from the Board of Directors, which is a very appreciative approach from our side of it.Now moving into the trends of this. So how does this all come together in regards to the growth trajectory versus the year-on-year growth. I mean, we see a very solid growth trajectory as we go through the -- across all parts of our business. Now why is this giving us -- I always like to look at trends rather than just solid areas is because we have established a very solid team, a very solid strategy that has already shown its results to us, and we are moving forward with the right direction. So I believe that we are on the right track of achieving our guidance and most likely and hopefully beyond that one.Now how is the market doing? Considering the circumstances we are living, but there are certain parameters that are not stopping. And that is very interesting because the market drivers are beyond the market circumstances. So the growing amount of data, customers' expectations for personalization, rising omnichannel adaptation in consumers' engagement and increasing focus on marketing technology from the clients' perspective to actually invest more in.These elements are not changing and is actually growing. We know that I've already told earlier, McKinsey's report in December that customers -- our clients' customers are demanding. The end user is demanding personalized relevant information. And if you look at the left side of it, the size of the market, the overall size of the market is exponentially growing. It's $350 billion. And that kind of environment, and if you look at the numbers from a year before, the year before, this is beyond belief. And that's mainly because of the technology, the increase of online shopping.And I'll give you some more information from this, just came out 2 days ago with the results in Denmark with a tremendous growth. I think the numbers are records across the board. If I remember correctly, it was around DKK 180 billion. Online shopping is now getting to a whole another level. And we are very fortunate to work with, as you all know, Matas, is the second biggest company within the online space with, if I remember correctly, around 2.5% of the overall online shopping goes through Matas.So these are the beacons. These are the examples of online shopping successful companies and what they're driving. And that's only 2%. If you imagine the rest of the companies catching up the same level to hold different level of engagement and market size.Now having said all of that, our focus for 2022 and forward, is a combined effort across all our departments. This is not just direct sales or indirect sales or partnerships or platform. It's every part of our business, it's contributing to our growth journey altogether. And this is a very important part of it because everyone adds another value. But for this specific conversation, I wanted to pull out one of them because it's quite important to talk about that real impact. I've previously talked about best of best-of-breed partnerships, which is now -- it actually has a name, is called the ecosystem economy. It's the clients are now moving into an ecosystem environment where the partnerships that are bringing the ecosystem together is becoming a very, very unique and important part of the growth.So our focus in 2022, and based on our 2021 success on this strategy and the partnerships that we define such as Tealium, such as Zendesk, such as Spryker, these are global companies, has already shown results. I'm very happy to say that we have now resulted, it's not just a strategy, it's actually up and running and results delivering activity. We are very hopeful that as we go into Q2, there will be some quite a lot of interesting news coming up. Now having said that, this is not it. This is just the beginning of the partnership strategy that we have started and we're now cultivating these, but there are so many new ones that we will be working with. There's a team -- a group of team members in our organization are working for global partnership opportunities and structures. So all of that is bringing the results that we are aiming for. Now we're focused on accelerating growth on this proven strategy. So that's our aim, and we are very hopeful that 2022 will be a real breakthrough year for us. That's it for me.
Perfect, Emre. I will just put this up here. So -- we are a little bit big and we can look each other in the eyes and I'll do it. 2 seconds. The first question was whether you should grow on this transaction on the subscription side? And I think you kind of already said you guide for high growth, you want to grow the more valuable subscription side, but you also gave some indication that you're conservative there. So I think that we have covered -- you commented on the churn, you commented on churn and DA. How much of the reported are up for renewal in '22? Do you have longer time contracts? Do you have 1-year contract, so it's all up for renewal? How do…
Right, I understand. Normally, all our contracts are minimum a year upwards, it could be 2, 3, 4 years. As we know right now that as we get into the 2022, we are in February, we are running halfway in Q2. We do not have any -- of course, there are renewals because it's a rolling activity. That could be a client that we have had an engagement in 2020 September for 2 years, and the contract will be renewed in 2022 September. Now most of our contracts are based on, unless it is canceled, it runs, it rolls. So all our contracts are rolling structure unless there is a specific request for stopping it. So from that point of view, I would say we're just rolling in as we plan. So when we say our ARR expectations are, this is exactly our ARR expectations for this year.
Perfect. And then there's a little bit on the sales distribution or maybe the new coming in is a better term, a lot of it in between -- partner and you're between you selling directly and your partner sales. How do you expect that to develop? Is more and more partner sales looking forward here in the future?
I would like to answer this question in a bit more detail. So we have the direct sales channels and the indirect sales channel partners. Our growth will be driven by both parties and their very close partnership with each other because that's what we have -- is a proven fact that the closer we work together with our partners, faster the results that we create. I mean the way that we can decrease the sales cycle, it's highly related to how fast actually we can work with our clients and partners and how fast we can create the value for the client. Our main expectations for the next year or 2022 right now is international sales, partner-driven sales, but these partners can also be technology partners, not only solution partners. So it is multiple channels that we're working on in conjunction. And our footprint, which I would like to mention that we have increased the number of salespeople we have right now in the focus markets. I have really high expectations from that.
Perfect. And maybe there's a good question here also. And I guess the one you would like to have, can you comment on your plans for further tech integration partners and what can you expect to gain from these -- in the last slide there, you can get even more into.
Very much so. I mean I will say our tech partnerships are actually driven by our clients' selection trends. So what we look at is we look at the clients and what kind of ecosystems they are working with and then we identify the best-of-breed alternatives within each area of ecosystem focus, and then we work very closely with them. We have had, for example, one, a very interesting technology client meeting yesterday. I know the team had it.And the outcome is, as I'm just explaining right now, the outcome is we both go into our technologies. There's a perfect match. Both sides says, these are the client values that we can create. These are the client values we create. And based on that, they create a joint prospect list. These are the clients that we want to go and show our value and then they look at each other's prospect list and they say, okay, how can we help you to grow your business and how can we help you to grow your business?All driven by client value creation. So this is -- the aim is there are approximately 6 different areas in the ecosystem that we would like to focus to. And each of these areas would like to have 2 or 3 active partners globally. So we are busy. We are working really hard, but expectations from this is basically quadrupling our sales units by actually creating access to their sales units, if I may say it that way.
So that was our understanding of it. And now I go to hot topic. So we can expect you to announce some of these more partnerships this year.
Yes.
We should hold you on that. Yes.
Yes.
Perfect.
Please do.
Which new market is going to lift the growth in the short term? You are going in more and more international, but you are still a little biased, but you have the home market. I was expecting the home market to the Nordic region or the international market to help you lift the growth in…
Yes. I mean I will say when I say home market, for us, home market is that. I mean, because when we travel to Norway, when we travel to Sweden, the markets are different. The players are different. The market conditions are different. The maturity of the market is similar, but the market is different. For us, the focus is Sweden, Norway, and DACH, which is basically Germany, Austria and Switzerland.Right now, our main focus are these 3 markets where we have a footprint with our own direct sales team members. We have our partners and growing partner engagement and technology partner prospects, joint engagements in these markets. Now having said that, we already gained another client in the U.K. earlier this year, which doesn't stop us to engage with other markets if the opportunity raises. But we want to make sure that, deliver it in the core markets first and then we move accordingly.But it meantime, if we have a technology company partnership that allows us for a quick engagement already in a market that we are not active. I mean, I can say that if we gain a client from Spain, last year, we are very happy about. They're very happy about it, all our solutions. Everything is running forward. But that doesn't change the fact that we are not going to focus on Spain right now because I have -- we have other areas we want to lock down first.
And maybe I could also ask a question here. You're looking at your size, you're a pretty good-sized company in the service sector. So I think somebody is sometimes asking, you have a strong perception in our home market, growth in Denmark. And maybe you already answered that, 2%.
Yes. No, absolutely. Absolutely. I mean I actually tried to touch that one. I really like to mention this. There's a tremendous opportunity. It's an untapped area. I mean really Denmark might be mature. But if you look at the number of companies who are really mature on utilization of their own data, marketing automation, creating relevant and continuous messaging with their customer base. It's a very, very small part of the companies that we are looking at. So tremendous opportunity. So do not get misunderstanding. Our focus is absolutely intact in Denmark, but our real growth will be on the international side. It's both. We are running very focused highly on that one.
And maybe you can explain this, you normally expect a slowdown in the transaction side in Q1. Maybe you just elaborate a little bit on, in fact your customers' activity.
Sure. What we do is the way that we calculate our transactions is basically we look into the last 3 months, and we take the average of that one, and we build our base of expectations for the future on that one. So what happened is there's a transaction -- transactions always have seasonality. When you have a slower spring and slower summer and then you have a high Q3, Q4 because of Black Friday and then you got Christmas, then you've got sales period and so on. So there's always kind of that in it. So the reason that we wanted to keep transactions kind of stable, let's just see, first and foremost, a couple of quarter trends of increasing transactions and then we can go back and always adjust it accordingly. So that is the main reason of why we're keeping transactions low for the moment because we know that it will only go up. So that will -- as long as the market conditions are stable, stable is the keyword here.
And then there's a question here. You are calculating around DKK 10 million, you are expecting to grow your IRR. But your EBITDA profits might still be negative or slightly more positive than last year. So you are expecting to grow your investment in this year in that sense.
Yes.
That's kind of the question here, what are the ensuing factors? Are you expecting late year to get ARR, so they don't affect your P&L here? So maybe you can comment a little bit on the…
Yes. Absolutely. I can also comment on that one. I mean there is also very interesting, there's a seasonality on the gaining declines. There's -- Q3, Q4 is usually the times where there are more and more clients that are actually engaging with technology purchases. That's -- I don't know why the reason behind this one, but there is a seasonality behind that. Maybe it's just getting ready for the budgets for the following year. That's one thing.The other thing is, as you mentioned, is that our growth is highly -- I mean, the reason that we grow and then we invest. That's a continuous circle. And what we're investing on is sales and technology. So continuously we are increasing our technology team members and our development focus and in the meantime having more footprint on the sales team. And that -- those 2 are our key growth engines behind acceleration.So every time that we can have the opportunity to invest on it, we go back and invest. And that's exactly what we did in 2021. I mean that's the whole thing. If you look at Q4 financial numbers, you will see that there's the cost increase versus the previous numbers. That is mainly because we are investing more and more every day to -- every time we make the money, we invest back so that we can actually accelerate.
And I will put it in a question now and you don't need to answer them, but you're actually looking into very, very healthy market growth. You are actually looking like your machine, again, is working. You are growing good momentum. And you have a very low acquisition cost. You have the low industry standards on the payback time. My question is you are still focused on seeing you have the money and investing and being profitable. But my -- maybe my question is, I don't know whether it's a little bit hard question, whether -- is that the right philosophy when you're actually seeing positive momentum in many ways and other companies, you have a more aggressive strategy. I know that you need to get cash for that, and that's not hard. And that can be hard in these markets. But a little bit of your thinking about…
Yes, absolutely, absolutely. There are -- you're absolutely right. On the other hand, we are a company in a certain size, and we are not a new company. We didn't start the business a year or 2 years ago. There is a past of the company. So our focus is very, very much focused around the strategy of agility because as we are keeping our agile and fast ability to adjust to the market realities, we would prefer to be conservative, but be very quick for the opportunities that are served to us.So when we move forward, if we see the opportunity, it is the easiest thing to put -- because don't get me wrong, just because we have these numbers, that doesn't mean we don't have ambitions. Just because we have 19%, 25% increase on our ARR, that doesn't mean we don't have the ambitions of 60% of it. That is 2 different things.What we are working on very hardly is that identifying solid go-to-market opportunities that are replicable and scalable and then we crack it, that is just basically -- it is a continuous search, continuous base of trying it. So I would say, in short, we are not lacking any ambitions. We're just trying to make sure that we promise on our -- we do it on our promises. So right now that's our focus.
And there's a question here, many of your competitors have been extremely aggressive in inviting their product offering or buying out companies. And everything is getting cheaper, and I know it's not a -- your cash balance is pretty healthy. Maybe your share price isn't showing what it should, we can discuss that, and we could use that. But thinking about whether in a market where companies like you has been very low price, do you see any possibilities? Are you seeing competitors try to move in and buying companies and could that be your strategy also? What are you thinking about the possibilities here in your space?
Absolutely. Very right question. I think the main part of this is that this part of the business, I mean, this acquisition-based growth of certain competition is just a business model. And it has been there for a while, and it is going to continue. That's just the name of the game. But we are a best-of-breed company, which means that what we do, we're one of the best.And we continue to focus on being the best on what we are excelling and then creating these partnerships with the other best-of-breeds to the client needs. I mean I've spoken to so many clients of ours and prospects. None of them says that I would very much like to work with one system that has everything. They say -- usually, they say this because they are operating within one to choke or one man to kill, those kind of technologies, having one single focus and easiness of engaging these products. But that doesn't -- easiness doesn't necessarily give you the best business value of your platform sector.So our focus is very much creating client successes and business success. That's where we come into it. They're not -- we always say that don't buy, there's nothing called like -- the best product, there is something called best choice because the choice that fits to your business, that delivers business value to you is the right one. So our focus will continue to be that creating value for our clients and when they choose us for that, then they may get the right results that they're looking for. And that's been winning for us so far.
And also to stay competitive. I don't know whether you already gave the answer that without buying it, you can create ecosystem with your technology partners. That's also a thinking, if you don't need to buy, you can just create an ecosystem there.
Exactly. And here's another thing. There is no one client of ours has the same ecosystem as the other one. So imagine like there are a number of players in this and the other one is exactly the different one. And how do you create one fits all opportunity, that's for everyone. That doesn't work. So the reason is that we are creating these partnerships, we are agile way of integrating to other technologies allows us to actually faster engagements with the clients that we just met, and that is a very highly welcome value.
And as you have grown your number of clients to 97 this year. And in 2019, you have not less and thereby, but you have almost had the same revenue and if I remember, also the same. So you've seen the decline in the average on your clients. Any comments on that and that development?
Yes, I can actually. The main reason behind this one and as we went into Reboot 2 in year in January, Reboot 2.1 strategy, one of our key focus, and this scalable growth focus was that we will not do professional services any longer, which means that we will stop selling ARR based revenue-generating activities. And that's what we are channeling to our client partners because we are working with the partners, they're the ones who are actually delivering the implementation solutioning, custom-made solutions, integration opportunities, that's something outsourced. Now why did we do that? It's because we are focused on our technology and our ARR based business model, so we can scale it internationally rather than selling ours through the number of people that we have. That is the main reason of that change. So you should actually always compare, going future -- in the future, our business model in 2020 forward is the pure technology focus. That is where the difference is coming from.
And there you should focus on the net retention until you deliver on that?
Yes.
Perfect. And then the question, you have got more clients and should your transaction not increase with increasing client, I don't know whether you already gave the answer by saying that…
Yes, probably.
And maybe it's not that ambitious.
I certainly agree with that observation. And as I mentioned earlier, that is, yes, we are hoping that we will be able to come back with higher guidance on that and results on that. It's just a market situation and the circumstances we are living, again, turn to be a different one than normalization, as we call it. So we just want to keep it down for a while and hopefully for a better result later on.
What other kind of explanation you get from clients who doesn't want to use -- the churn -- the churning loyal customers?
Interestingly, there are 2 reasons for that one, and it keeps going on exactly the same if, I mean, this is less and less because our ideal client profile engagements have fortunately started that one. Number one reason, it's usually the client that we are working with is a part of an international organization and the international organization has taken a global decision on a certain technology to be utilized across the board in all markets. That's one.Second, and usually, these decisions are taken by the IT departments, which prefer to choose the easier solutions. And that means that one single technology solution with multiple integration created platform solutions that they should be implementing it. That is one of the reasons that they choose to leave actually or it's a client that has purchased Agillic solution with the technology and mindset of, we are moving into this digital transformation, but they do not have -- they do not invest it to the team members for implementing this digital transformation. They have not invested in partner engagements. So basically, they thought that buying the same technology will make it happen. That doesn't happen.So the usual -- these are the 2 main reasons. But fortunately the second one is getting less and less because since we have established our idea and profile, 100% focus on elimination of these kind of client engagements because we prefer not to say and we don't sell to those clients. We know that they're not really -- that they might churn in 6 months or 12 months or 15 months. We prefer not to sell them now, but keep them in the engagement for a later sale. So that is one of the reasons for that.
And then, again, there's -- I ask whether you should buy, but I have an acquisition target, your share price is not going up. There is consolidation in this industry source of sale and -- for sale, as we say.
I cannot -- naturally I cannot comment on that one, that's the Board of Directors' selection. But let me put it this way. The number of -- the interest out there for the receipt that I received from international connections, from U.K., Canada, U.S. for quite a lot of investors are highly interested in our business. Quite a lot of technology companies have invested -- interested into our business. So we take it to conversation. We -- because I always see every opportunity in there an unknown possibility for a growth opportunity. It could be partnerships. It could be investment. So I keep it always hot, all the lines across the board on international scenery. But right now, our focus is actually growth in the markets that we just mentioned. And hopefully this will have a kind of impact on our overall value, which will allow us to -- because if you ask me, would you be interested to buy 1 or 2 certain technologies that you think that it will be possible? Absolutely. There is -- we already have our list on the side. But it is just the timing is the whole focus around that.
And then I think we should end with this one. I have already kept your long enough.
It's all right.
Regarding IR activities, low liquidity in the stock, we have seen it totally going out of the First North market in Denmark, this liquidity. So do we have some planning activity, something that could find, bring it in, bring that back, some thoughts about that?
That is absolutely the best question I think for today because, I mean, we are all in this environment, highly aware of what is happening in the companies and we are growing. But what is really interesting to do is how do we accelerate, how do we spark, how do create kind of a further interest into the brand and the company and our efforts.So one of the parts that we are actually working on is, number one, having a new CFO after many months of interim engagement with Carit. Our new CFO is joining us on Tuesday. That's one of the #1 strategies that he's been working with me on creating liquidity. Second, we are looking closely into the Swedish market. How do we create investors' attention to the company as such as Agillic?And how do we engage with the Swedish market for creating kind of interest for creating the liquidity environment? There are multiple initiatives that we are working on. It's all towards that because now we have the results. Now we have a solid internationalization strategy. Now we have the results that are actually delivering on that one. So this is actually bringing this further up. So that's all. Absolutely right.
Perfect. I think I will leave you here. I have no more question. But I think 45 minutes, we can't take more of your time, Emre.
No problem.
Thank you to all, and thank you for very good questions.
Thank you very much.
That really got us moving around. Have a nice weekend.
Have a nice weekend. Thank you. Bye.