Physitrack PLC

STO:PTRK

Earnings Call Transcript

[Henrik P. Molin, Co]

Good morning, everybody. Welcome to Physitrack's Q4 earnings webcast. I'm Henrik Molin and I'm the CEO and Co-Founder of Physitrack. I'm joined by Charlotte Goodwin, our CFO. We're going to start by just briefly mentioning that we won't be providing a background to the company on this call. But if you're interested in a deeper dive, we recommend that you take a look at our Q2 webcast, which is available on physitrackgroup.com. Here is a little reminder of where we are time-wise in our company life cycle. So, some updates there on 2022 so happy to leave that for you to peruse after this call. I'm going to jump into the little summary of Q4 in short for those of you who are short on time and want to get back to your cup of coffee. Now the 12-month revenue growth was 153% and the pro forma revenue growth was 36%. So nice organic growth in combination with M&A-driven growth. The size of the company is now over EUR 10 million in terms of annualized revenue for the first time, which is really nice to see.And in terms of key events that we saw there, obviously we've seen the merger or the acquisition from this morning of PT Courses in the U.S. This is something that we are very excited about because moving into e-learning for physiotherapy is something that we had as part of our playbook since 2017 and this is a key component for strengthening our presence in the U.S. Very nice to see that and we're going to give some deeper comments on that later on in this call. In terms of other highlights, we've had a really nice time integrating Physiotools and now we have aligned their operations completely with Physitrack's and we've been able to draw on the firepower of this team of exceptionally talented individuals in building a one culture and one team. That's been very, very favorable to us in terms of acceleration and the way that we run the business.And on a note, we are upgrading some of the plumbing or the underlying framework for the systems underpinning Physitrack to support this continued growth, among other things, a new accounting system that can support us up to triple-digit million if and when we reach that level and obviously some of the other things in terms of development, infrastructure and ways for us to be more efficient and effective when we look at new features and develop them for continued commercial success. Digging in a little bit deeper into the quarter in terms of the business. Just looking at the underlying growth numbers so very, very strong. On the user side of things, we had a nice growth of the user base. But something that's very important to point out here, we're not a one-trick pony in terms of revenue generation. We don't only have to rely on a growing user base to grow revenue. We have a lot of interesting products in our portfolio and something that is continuing to generate some very nice revenue is our custom app range where we can work closely with health care providers and personalize the journey for their patients.And this is something that we indicated already in Q3 and that is something that is accelerating and the acceleration has been even more rapid in Q4 around this. So it's an effect of this increased sophistication when it comes to digital products in our space that has led to this. And notably, patients and consumers have become more savvy when it comes to digital and they're putting pressure on their health care providers to expand into that. So we're more than happy to offer a top-of-the-line range of custom apps and other services to just make -- to meet those expectations that are now upon us. It's very, very interesting. In terms of notable wins, well, obviously the big win is the very wide variety of small to medium size exposure to custom apps that we have had. But if we are to name something that stands out on the enterprise side; Mercy Children's hospital, very notable American health care system, which was part of a big RFP that we won in Q4.But acceleration continues and we're more than happy to be in this space because it is something that's expected to continue growth going forward. Few comments on the PT Courses acquisition that was announced early this morning. And as I indicated in my introduction, this is a space that we have been very keen on moving into ever since 2017. In the U.S. market, the home access prescription systems are usually bought in tandem with e-learning for physios. It's something that's part of the mandatory education for physiotherapists to be part of something like this and it's something that's usually sold in bundles. Not having access to those type of bundles in the U.S. market is something that has held us back a little bit, which is why it's been on the strategic agenda for several years and it's something that we've indicated that we were keen on expanding into via M&A for the last few quarters.So I'm very, very happy to have gotten this on board. This is a very healthy intelligent company. It's one of the older companies in the space. They've done quite well in building this from nothing similar to Physitrack with their entrepreneurial spirit and this is a nice company. The acquisition premium was $1.8 million. There's no earn-out so that was a one-off payment at the equivalent of about 3x revenue. We expect some really interesting revenue effects off of this both in terms of the PT Courses effect of having Physitrack customers come in and purchase continuing education, but most notably when we penetrate the U.S. market with home access prescription and related products, we see that these bundles with e-learning are going to be very significant for us in terms of gaining market share. So we couldn't be happier with that and we will see revenue effects both with PT Courses on a standalone basis from this, but most notably on the Physitrack SaaS side.I'm going to hand over now to Charlotte Goodman, our CFO, to talk through the financials more in detail. Over to you, Charlotte.

[Charlotte Goodwin, Chief Financial Officer]

Thank you very much, Henrik. I'll start the finances off here with an overview of the key financials. Year-to-date revenue for the 12 months ending November 2021 has more than doubled to EUR 7.7 million from EUR 3.1 million in the prior year. Some of this growth is due to the acquisitions of Physiotools, Rehabplus and Fysiotest. And on a pro forma basis with the revenue from these entities included in the prior year comparators, revenue increased 36% in excess of our medium-term organic growth target of 30%. Revenue for the quarter ended November was EUR 2.4 million, up 165% from the last year. Pro forma revenue growth in the quarter was 47%, which is in line with our previous messaging that now the impacts of COVID-19 have smoothed out, we expect revenue growth to be weighted towards the end of the calendar year driven by our large customers purchasing cycles.In the year the Physitrack Group has delivered adjusted EBITDA of EUR 2.6 million, up 58% from the prior year and this results in year-to-date adjusted EBITDA margins of 33%, down from 53% in the prior year. This fall is a result of the well-signaled impact of the recent acquisitions on the group's margins.If we move through to the next slide, looking now at a more detailed view of revenue. On the left here you can see the year-to-date growth both on an absolute and pro forma basis and on the right hand side, we see revenue by quarter with strong growth delivered in both the SaaS and Virtual Care parts of the business. Moving through to the next slide, looking now at profit. On the left hand side, we have the 12-month EBITDA. Last year we delivered EBITDA of EUR 1.6 million and in the current year, this has fallen to EUR 1 million. Within this, there was EUR 1.6 million of nonrecurring adjusting items primarily relating to the IPO, but also some M&A costs. With these amounts stripped out, adjusted EBITDA was EUR 2.6 million or an increase of 58% from last year.Adjusted EBITDA margins have fallen from 53% last year to 33% in the current year as discussed earlier due to the impact of acquisitions. And over the medium term, we expect these to rebound to our target EBITDA margins of 40% to 45%. On the right here, we have adjusted EBITDA shown by quarter. This shows EBITDA expanding as revenue grows and cost synergies are implemented. There was a drop in EBITDA in Q4 last year as in preparation for the IPO, we built in the additional governance and compliance required to be a listed company. These costs are now built into the business' run rate and consequently there was no similar drop in Q4 of the current year. Turning to the next slide, now looking at cash. We opened the year with a net debt position of EUR 0.5 million. Adjusted EBITDA in the period generated EUR 2.6 million and was offset by a working capital movement of EUR 0.5 million and a further EUR 0.1 million of interest payments.The working capital movement was driven by calendar year renewals for enterprise customers, which are often billed 1 month in advance of renewal, particularly in Physiotools, and we expect this to unwind early next year. Intangible asset additions were EUR 1.6 million in the period and predominantly consisted of development of the SaaS platform plus initial investment in the new Access virtual care product, which Henrik will speak about later. In order to ensure Physitrack can effectively scale, we reviewed our internal operating systems and made the decision to implement Chargebee as subscription management and billing system and NetSuite as our group-wide ERP system. There were some upfront capitalized bill fees in the year related to these, which will continue into the first half of next year. The largest item here on cash is of course the cash generated by the IPO shown here net of the fees incurred.At the year-end, EUR 2.7 million of this cash is being utilized to fund acquisition consideration payments and M&A-related costs. This leaves the group with a strong cash position of EUR 14.3 million to invest in future M&A activity. Moving to the next slide. This is a summarized position of the group's balance sheet. The first line here includes the internally developed technology platform as well as intangible assets and goodwill arising on acquisitions. This figure now includes the accounting for our Fysiotest acquisition. Accounting for our most recent acquisition announced this morning will be included in the Q1 2022 numbers. Cash, as we've already spoken about, has increased due to the IPO proceeds and borrowings will be repaid with these proceeds. Trade and other receivables have increased due to the recent acquisitions as well as the relative increase of our enterprise customer base and high levels of billings towards the end of the year.Deferred revenue was primarily generated by Physiotools who bill upfront for 12-month contracts. Deferred consideration relates to the Rehabplus and Fysiotest acquisitions. And then just a quick piece of housekeeping here. As we previously announced, in order to align our financial year-end with our customers' purchasing cycles, the Board has made the decision to change our year-end from November to December. So we'll be shortly releasing an interim report for the 3 months ended December 2021 to align with the new year-end alongside a 13-month annual report. All key dates related to this have been updated in the financial calendar on our website.That's all for me on the financials. Of course, feel free to ask any questions in the Q&A portion. But for now, I'll pass you back to Henrik.

[Henrik P. Molin, Co]

Thank you, Charlotte. And just a few slides here in terms of the strategy and outlook. We will reiterate here on the left side there, the market growth dynamics continue to be favorable. We are in the middle of really nice macro tailwinds. We spoke about the trends for small to midsize providers to invest in technology as well and becoming more advanced following pressure from consumers to step things up and that's a trend that we see continuing across our market space. And obviously on the enterprise side, we see a lot of RFP activity. We see a lot of investments into this space and this will continue to be quite favorable. Now in the middle there, organic growth levers. We are just in the beginning of digitization of emerging markets for example and we have nice presence there. We had some notable wins in places like Indonesia in the quarter and that's an indication that this is something that is about to take off. So we're quite happy there with the exposure that we have to these markets and we can expect more activity there in the future as we move forward.On the M&A side, we continue to see some very interesting opportunities with some great entrepreneurs that can come in with healthy fast-growing standalone businesses that can also fertilize what we do with the rest of the business. And we are happy to continue this activity and we feel that the targeted on average 1 M&A transaction in the quarter continues to be achievable. And this is a very, very exciting time to be in this space because there are some really, really nice opportunities out there. Just a quick view ahead in terms of what we're doing product development wise. We are introducing new SaaS-based products for our care providing subsidiaries, Rehabplus and Fysiotest -- Rehabplus in the U.K., Fysiotest in Sweden. And this is based on existing Physitrack technology that has been enhanced to be a holistic care product on a subscription model that gives employers access to health and wellness and rehabilitation products for emotional well-being and for physical well-being.And it's a product that we are slowly releasing here in Q1 starting in the Nordics and this is something that allows providers to tailor a digital journey for employers in a preventative way for emotional well-being and physical well-being. We come in and assess a company with employee questionnaires and also blood testing with IP from Fysiotest, which has been very, very successful with great growth, and we calibrate our offering for the individual companies and the employees. You launch widely and then you reassess based on the actual results that come in. For the individual employee, it is a personalized journey that is underpinned by great technology and great humans that work with the technology to make sure that you have a journey that fits for you under that access umbrella.If something happens, you have access to rehab professionals that can come in and do virtual care and also hands-on care because we have a physical network in the U.K. and we also have a partnership with some of the biggest care providers in the U.K. for that part of it. Very, very interesting journey to have been on for the last few months. In terms of narrative and in terms of visuals, we are very human-centric in the way that we are communicating this because we are dealing with something that's set to prevent injuries and things like that to happen, but also to increase overall well-being. And we have worked with some excellent branding consultants that have helped us develop this very human-centric culture-building habit-forming narrative, which has been a pure pleasure to market test over the last few weeks. A lot of exciting things coming based on the Access ecosystem starting in the Nordics and later in the U.K.Final slide here just reiterating our financial goals. Top line growth 30% in the medium term. This is not something we plan to abandon any time soon. In terms of profit margins same thing there, 40% to 45% in the medium term very achievable. However, keep in mind that as we acquire businesses and we work through with them to enhance them, to accelerate them, we have to accept a little bit of pressure on our margins. But in the medium term, we expect that we can clock in at the similar type of margins that Physitrack historically have been in which is in the 40% to 45% range and higher. Lastly, no dividend distribution is expected. But those of you who know us, we have communicated that we think that healthy profitable companies should have a dividend agenda and we do have that just not in the medium term because we will use our funds mainly for acquisitions.That concludes the presentation and we are now happy to take questions.

[Operator]

[Operator Instructions]

[Henrik P. Molin, Co]

All right. There's also a chat box there if you want to shoot questions straight over to us and we are on standby.

[Operator]

We received the first question via the telephone line. It's from Joachim Gunell, DNB Markets.

[Joachim Gunell, Junior Analyst]

So obviously I have a number of questions and operator, if there are any other -- if there are anybody else in the queue, let me know and I'll just pass it. But starting off, when we think about land and expand so to say, can you talk us to here what you see here in terms of the number of products that your existing customers are buying? Obviously we have seen some quite good momentum in the custom app sales as of late, but perhaps more from a broader perspective on the trajectory to getting existing customers to buy and subscribe to more products on your platform.

[Henrik P. Molin, Co]

So we stand on mainly 4 legs when it comes to the Physitrack platform. So you have the platform itself or the subscription model with access to clinical content and outcome measures and things like that, now we have the second layer which is the specialized telehealth, the third leg is data repository products or data analysis products in the PhysiData range and the fourth one is the custom app range.Now we see activity across all these 4. There is a systematic effort at pushing or introducing these products to notably RFP processes, request for proposal processes, for enterprises because it is usually you have a need for a holistic solution as an enterprise within those 4 areas. And that's actually one of our competitive edges that we actually have very, very strong products in all those 4. So it is a systematic sales effort on that side. Now there are trends that we see in the marketplace where people need to catch up to needs that have been introduced by notably the macro environment.And so in the U.S. a few years ago, the trend towards outcome analysis and data analysis was very strong following Medicare and Medicaid initiatives to give bonuses for providing outcomes data into public health care assistance for example and then you saw a boost for the PhysiData range. And obviously in 2020, you saw a big boost for telehealth and this year, the big boost is on the custom app side.And so there is some variation in that, but the process for pushing that out is always very systematic. And now obviously we will have a fifth leg, it'll be a very stable chair to sit on with e-learning that can form some very, very attractive bundles. And there is nobody in the market that has that type of product range. And so with the experience also that we have with selling a whole custom -- sorry, a whole range of products to a customer, we think that that addition is going to be a pretty natural one to our sales team to accelerate with. I hope that answers the question.

[Joachim Gunell, Junior Analyst]

Absolutely. We can actually stay on the recently announced acquisition. So when it comes to PTcourses.com, can you just help us understand what is the growth profile of that business? That it expands your platform capabilities makes sense I think, but what are the hurdles to basically roll that U.S.-based e-learning offering out in call it your existing markets? And also you say that you see an opportunity to perhaps not entirely close the gap, but at least to come closer to your target margin profile on the group business. So what needs to basically materialize for those things to happen?

[Henrik P. Molin, Co]

Well, that business is a healthy business in and of its own and I think the business development tools that we can provide as a quite sophisticated group for digital health, I think that can help boost PT Courses quite significantly. We also think that there is a lot of talent that we have uniquely with Physitrack in terms of technology development to help step that platform up and make it more sophisticated. We have quite deep experience in e-learning.And actually notably, our CFO Charlotte Goodman, she actually came from a listed e-learning company. And there are some great synergies with existing know-how that we can push into that to make that grow on a standalone basis. But obviously the bundle situation is the most important part of this and the objective is achieve a seamless integration of PT Courses into the Physitrack platform so that you have this seamless holistic experience with Access prescription and the other components that we have and that floats nicely into what you have to think about day-to-day as a health care provider that needs to do continued indication.And I would say that the short-term effects from this will be visible on the Physitrack side because they have a -- PT Courses has a very big customer base and we will be able to very quickly come out and do things like offering discounts for the Physitrack platform. And there's quite a wide penetration in the U.S. with that, over 47 states, and so I think we can quite quickly see some effects there.In terms of the enterprise effects, I think we can expect probably around say 6 to 9 months before we have something that is on par with competitors in the U.S. in terms of bundles. So there's a bit of technology enhancement that needs to be done and some integrations. But once this is done, we -- because of our presence and we are quite known as a brand in the U.S. market, we see that the acceleration of this in the enterprise space with RFPs can come relatively quickly. So I think within a 12-month period, we should probably have some quite nice effects over there.And now in terms of margins, we will of course look at PT Courses in that business. I mean it is run by some very clever entrepreneurs that will stay with us for a while. I actually think that that business is quite healthy as it is. So we will enhance that a little bit in terms of humans from the Physitrack side will come in and help accelerate and grease the wheels and then to pull out the best ideas from everybody.But overall, I think that we won't be seeing any cost synergies on the PT Courses side while we go through the transition situation here with the integration. Where we'll see margins expand mainly based on revenue acceleration at that end and obviously on the Physitrack side, it will help fuel global growth. Now last part of your question, international exposure with PT Courses. About 5% of PT Courses' customer portfolio is based on non-U.S.So there's a little bit of exposure in the U.K., Australia and in some other geos and we will take a look there to see what we can do to push some activity of PT Courses based on that. That is quite exciting. It's not right on top of the agenda because the U.S. market is just very lucrative and is something that we had planned for a very long time ever since 2017. So that will remain the priority. But I think if we do a good job in the U.S., there will be some interesting ripple effects in terms of revenue generation in other geos where we are present and very strong. So overall, very, very positive for us. I think hope that covers it, Joachim.

[Joachim Gunell, Junior Analyst]

Yes, absolutely. And perhaps a question to Charlotte on the acquisition topic here. Can you say anything about how this will impact number of users? And then perhaps more in particular, how this impacts DNA, which really have seen call it a slight step-up now in recent quarters following the recent acquisition?

[Charlotte Goodwin, Chief Financial Officer]

Sorry, I heard the first bit. The second bit, do you mind just repeating the second part of that question? You just dropped out for me for a second.

[Joachim Gunell, Junior Analyst]

Yes. How will this acquisition impact amortization of intangible assets?

[Charlotte Goodwin, Chief Financial Officer]

Got you, perfect. Well, I'll start at the end there. So on the development side so I messaged there will be around $600,000 spent, as Henrik talked about, from integration with the Physitrack platform. I would say that roughly half of that will be put to the balance sheet so as a development as opposed to a P&L so you'll see a little uptick in the amortization there, but nothing hugely significant. And the remaining will be put through as adjusting items as a P&L cost.And on the user question, well, as we've indicated, PT Courses has access to a list of over 60,000 U.S. practitioners and so we'll obviously be targeting that. So we would expect to see that drive and increase our user base.

[Joachim Gunell, Junior Analyst]

Understood. And with regards to the users or practitioners in the current Physitrack SaaS offering. Can you say anything about that? What particular markets or regions is driving growth in this quarter?

[Henrik P. Molin, Co]

North America has been very strong, Australia has also been very strong and actually the U.K. so of the Anglo markets have been really the strongest markets. In the U.K interestingly, there's a lot of new budgets in the NHS or the public health care system. So there's a lot of investment and we are increasing our footprint there. We were already a dominant player in the U.K. in public health care with Physiotools and Physitrack and this is becoming more evident now and we actually see very strong growth with both products, Physitrack and Physiotools. So U.K. extremely interesting. But North America, notably Canada, also incredibly strong. So Anglo markets and then closely followed by our old friend the Netherlands where we've been present ever since inception in 2014.

[Joachim Gunell, Junior Analyst]

That's interesting. But can you say anything about when it comes to call it growth strategy here, it's not that -- you haven't for that long time now really ramped up this Virtual Care business and obviously it consists of the 2 acquisitions as of quite late. Can you say how the whole Virtual Care venture, if I can call it that, has performed in relation to the expectations you had call it a year ago?

[Henrik P. Molin, Co]

Charlotte, we have some very nice growth numbers. I think we've been pleasantly surprised by especially the Nordic footprint there with Fysiotest. I think they've done a terrific job of growing that business. Charlotte, if you want to maybe give some data there, that would be great.

[Charlotte Goodwin, Chief Financial Officer]

Yes, definitely. I think both of our care businesses have performed really well and in line with our expectations. We have classes still a little bit driven by sort of return to normality with COVID because a lot of its work is driven by things like operations happening as usual and as expected and people being out and about and doing things to get injuries.And so we saw a little bit of a drop back during Omicron there, but that's nicely looking like it's heading in the right direction again. So that's all in line with expectations. And as Henrik says, I think with Fysiotest, we've been pleasantly surprised actually on the upside there although it's still early days. So we've seen great growth from the existing businesses. And I think as you've seen a little snippet there with Access, a lot of the good stuff is still to come. It will come when we take all these capabilities, combine them with our tech and launch some new and exciting products in that area.

[Henrik P. Molin, Co]

But I think just looking at the numbers and what we've achieved, I think it's safe to say that we actually have been very successful in moving into that space. And so I'm happy to see that entrepreneurial mindset and the culture that those companies represent that's matched very, very well with the entrepreneurial mindset and the country that we have at Physitrack overall. So some great innovation, collaborations and overall acceleration across that business line as well.

[Joachim Gunell, Junior Analyst]

And then without really jumping the gun here when it comes to the Access virtual care offering. Can you say anything about when you expect this to have like a fully commercially viable offering targeting employers here? Is it within this coming year or is this more of a, call it, 2023 vision?

[Henrik P. Molin, Co]

No, it's definitely not a 2023 vision. This is something that we have because we are already present in prevention and wellness for corporates in the Nordics via Fysiotest. Very successful business that has mainly relied on local presence and then some virtualization. And so access is actually the overall methodology within that ecosystem and the tech is actually based on their commercial activities and their use case and we expect to have client exposure with that already in Q1. So very, very carefully starting to dabble there with the commercial viability of it.So the product is more or less done. The narrative is done as you've seen some examples. So it's very much a near-term situation in terms of market introduction. Now in terms of acceleration, we want to be a little bit careful in terms of changing guidance for how we see care developing, but the indications that we've had from the market and the interest that we have in this would indicate that this could potentially be something very substantial for us across the group. But we're taking baby steps into that with commercialization here in Q1 and we'll just take it from there.

[Joachim Gunell, Junior Analyst]

Very interesting. And the final one for me for this time. We've discussed competitive landscape et cetera in the past. But how do you assume as we move further away or slightly away from the pandemic, have you seen any changes in terms of competitive landscape shifts and how do you expect the landscape to change over the coming years?

[Henrik P. Molin, Co]

On the tech SaaS side, there hasn't really been any major movement. I think if there's been any movement, it's been led by us in terms of what we've done with Physiotools and building the biggest clinical exercise library in the world and what we've been able to achieve there in terms of market footprint and also digitizing or just having the small to midsized customer base of our step-up with custom apps. That's quite unique for us so we haven't really seen any move there by anybody else. Obviously our move today with the acquisition of PT Courses in the U.S. we think will give a few players over there that have relied on quite expensive software bundles for their success combining e-learning with home access prescriptions, we expect to give those guys a good run for their money in the coming quarters.Now if you look at the care provision side of things, there's obviously a lot of movement there and you see a lot of investments. There's nobody specifically that stands out in terms of this niche focus on something that combines emotional well-being and musculoskeletal well-being and rehab. So there's nothing in Europe that just pops out. But we do expect a lot of movement there over the coming quarters and I think it's a healthy sign that you start to have competition coming out because that means that there is a market for it and there's a lot of appetite. I think we're extremely well placed with the tech that we have, the product offering that we have and the people that we have on board that have come in mainly through an M&A process. So I think we're in full position there when it comes to the European expansion there notably with Access.

[Joachim Gunell, Junior Analyst]

That's all from me for this time. Have a good day.

[Henrik P. Molin, Co]

We had a couple of questions here on the chat. So in terms of Access, please elaborate around the pricing and model?So this is based on a subscription model that's based on the size of the company so it's scalable based on the number of employees that you have in the company. So it's a flat fee subscription model and it's set to make rehab prevention and well-being costs very predictable and stable. So similar to buying subscription technology in other places where there is B2B or B2C. There has been a lot of demand for these type of things as the world has moved over to value-based health care and there's -- it was just a question of time before this was going to come to the prevention wellness and rehab space within predominantly MSK, musculoskeletal, and emotional well-being. So I think that explains that.Another question here. Could you give a hint about how Q1 '22 started?It started very well, thank you. So we are excited with the opportunity set that we are faced with. There's nothing that's changed fundamentally in terms of what is out there in terms of enterprise activity for purchasing. Same thing there with small to midsized companies coming out of Omicron or -- sorry, coming out of the pandemic led by Omicron, I should say has actually had things return more or less to normal in terms of the care activity of, first of all, our customers, but also for our own care business. And so that's actually nice to see and that's also driving investment. So as people need to be less protective of their investment portfolios or their capital because they know that there's light at the end of the tunnel, there's more money coming into digital health and that's been quite favorable for us. So we saw that notably in Q4. There's no really slowdown that we can expect here.Can we expect any more acquisitions in Q1?We'll just have to wait and see. There are a lot of interesting things going on obviously and a lot of smart people out there, healthy businesses that we're interested in. So stay tuned.Do you search for anything in Japan and South Korea?Well, actually we have more or less fully localized SaaS tech for Japan and South Korea. So we're a little bit on standby just to see what we want to do there. It's mainly related to recruitment and so we'll see what comes up. But we're quite interested in both those deals and we have technology that's more or less ready to go there.How fast do you think the implementation of PT Courses can go?Well, you will see -- I think I explained that a little bit to Joachim. But in terms of offering -- doing some quick campaigns and offering some discounts on Physitrack for PT Courses' customers, I think that can be very quick. So there's a big customer database and they would love to have access to Physitrack at a nice price point so that we'll probably see a little bit of that just following the acquisition. In terms of the deeper integration, we will phase that so you'll start with things like very simple single sign-on log-in so that just to make it easy to use those 2 systems in parallel. And step by step you will see a more seamless inclusion of PT Courses inside of Physitrack and vice versa. And eventually the vision is that it doesn't matter if you're a PT Courses' customer, you can log into that and you can use Physitrack seamlessly inside that or if you log into Physitrack, you can conversely use PT Courses. So -- and obviously some enhancements along the way that we'll be doing just to catch up a little bit with the U.S. market space. But we have a 12-month horizon on the full integration of PT Courses, but as we said, we will see things step-by-step rolling into that.And I think that concludes the question battery on the chat. Was there anybody else on the phone?

[Operator]

No, we haven't received any further questions via the telephone line.

[Henrik P. Molin, Co]

Okay. Very good. Then we are ready to wrap up. Thank you so much for attending, everybody. This call will be available on replay on physitrackgroup.com. Thank you so much and have a lovely day.