Right, okay, apologies for that. Let's go.

Thanks all for joining us this morning. We would like to run through an update, and most of you will have read as it published last week, the capital raising information and the quarterly update.

We do want to run through that with you, give you a little bit of detail, context, and then keep as much time as we can for open Q&A. We welcome all of your questions.

Please feel free to put them into the chat as we go. We are recording this, and it will be posted to our investor hub.

Obviously, Karen Gilmour, our CFO, on the right hand side, and I'm Trent Lund, your CEO.

Morning.

Good morning all. Let's jump in.

We'll start with company performance and outlook and talk a little bit about the capital raising and the intention behind it. I'll dive straight in.

I suppose just for those who are new on the call, really just a reminder we're a regtech company, regulation technology. Effectively meeting regulated transactions, particularly around super, but we focus on compliance from hire all the way through to retire.

Superannuation is the market we really started our positioning in. We're delighted with the position that that's in right now.

Obviously, that is because it gave us the greatest reach to customers in the market, in particular payroll and HR professionals who are our target audience. Purpose of the business: making compliance effortless.

The more complex compliance gets out there, the more relevant we are, and the harder our job is, but obviously, the more required we are by the market. We operate off one unified platform.

As we grow and expand into other segments, you will see our cost benefits really start to pay back. I just want to prove a reminder to people, and really to an understanding of our business, we do talk a lot about super because that is the here and now of our business, but really, our business evolves across four segments.

The main segment today is super. We believe there's a very large addressable market, and we've already seen fairly substantive success there.

Six out of 10 of the largest funds use our software in one way or another today, but we are also growing in our footprint, in particular through our MUFG partnership. That reach, we have a little over 5 million contracted users right now, and so a long way towards our 7 million target.

Of course, getting them onboard, getting them transacting and paying their super is the critical juncture we're at right now. That said, we don't see super stopping at that end.

We do see growth. We see growth across other funds.

We also see growth as we move into the decumulation phase. Actually, there's been a lot of reporting on that lately in the AFR.

[Done work?] , there's a fair bit of conjecture and conversation, but actually Wrkr is very well poised in helping and working with the funds as people move out into decumulation away from accumulation, using the same technology we provide today.

The other segments critical for us as we move into pay, wage payment, disbursements, single-touch payroll, and through the acquisition of PaySpace, paychecks and pay compliance moments. All of those we actually have fairly substantive experience in.

It is really bringing the customer base on first with super to be able to provide those products. Then credentials being the latter segment.

We see that as a more lucrative segment, but it really benefits from having infrastructure that is robust, secure, and trusted, as opposed to how it's dealt with today, which is through many, many small providers dealing with PII information that's not as secure. Long-term strategy, of course, is direct-to-the-consumer.

In engaging a consumer in their data around their credentials, around their pay, and around their super, it opens up the door for benefits, helping them navigate their wealth into the future. Right now, we're grounded in the present.

I'll let Karen talk a little bit about the performance to date, and then we'll jump in to the ramping up of users and also to the capital raise.

Thanks, Trent, and good morning to everyone. Thanks for joining.

Just wanted to jump into the quarterly results. The year finished really strong.

We had a very strong year in terms of cash receipts, a quarter in terms of cash receipts. That was really driven by seeing the funds come in for all the development and implementation that we, as Wrkr, have done across the MUFG funds.

Obviously, we're starting to onboard across AustralianSuper and Rest. The quarter also saw us bring on the four smaller boutique funds, which are busQ, [Nest?]

, Legal Super, and [Mine?] .

It was great to see to see that all happen without incident, start to get those people onboarding. Additionally, we had some big cash receipts for our annual license fees across our platform-as-a-service customers, and also with MUFG, as a component of license fees.

That's what really drove the Q4 cash receipts up $2.5 million from the prior quarter. That then obviously gave us a quite a neutral operating cash position.

We've we've spoken about the fact that we have invested quite a lot of resource into making sure that the implementation goes well across the funds. That's included data migration projects, that's included hypercare support, that's also included release management on our feature development, the two-step friction in the platform and onboarding, improved the security posture.

There's a lot of fraud in the industry around payments generally, and so making sure that that is a robust, reduced, reduced friction seen across leaders in the market, making sure that's protected there. Also went live with Payday Super on 1 July, and that came with feature development in terms of the way that super stream changes happened, and also introducing NPP payment method, PayID.

There was a lot going on in the quarter, and it was really great to see the team working together achieving the go-live with Payday Super. That leads me into the full year.

Cash receipts of $18.2 million, our best year on record, increasing from $9.9 million in $9 million in FY '25, quite quite an impressive increase in cash receipts. As I said, a lot of that is implementation and development work.

Underlying that with about $2 million, approximately $2 million of ARR that we'll be taking into FY '27, and the rest will be made up of that development and stage two. Now we're just really looking forward to getting all of the employers onboarded, that they start making contributions, which we're definitely seeing, and start to earn in our increasing our ARR throughout the year.

In terms of our cost base, we ended up with a negative operating cash flow of $1.5 million over the year, really due to the reasons that I mentioned before, making sure that we are fully resourced to make it a successful implementation on contract execution for our partner funds. We've had quite a lot of investment in the platform as well in the year, $8 million of capital investment, and really, we're seeing some amazing features in the platform, onboarding taking no time at all.

For people to get their first contribution made once they're onboarded and have gone through those AML/KYC checks, they're getting absolute feedback. It's been a really good experience for our onboarding as well.

We'll see that stabilized into the first half of this year as there's always, with any platform, continuous feature development. We're also focusing on PaySpace integrations and making sure that we can have that web stacks launched for PaySpace available to what we've build up, what we already have for Wrkr, as I think we've spoken a little bit about moving forward.

Stabilizing cost base, seeing that capital investment continue, but shifting to a more, what's the, what's this next horizon around pay, if you can compare that with what our past four years have been. Let me know if there's any questions, happy to answer at the end, or pop them in the chat.

Thanks. Thank you, Karen.

Want to talk about the numbers and the flow-on of customers. Just a couple of things to explain on that.

This slide is out there, but the controlled onboarding ramp, as it's talked, just want to give our shareholders some context here, a couple of elements. Number one, although we built data migration in and was built with the funds, so that was a large investment as well as tight fraud controls, and that has increased our cost, but actually it has made for a much smoother transition, but there are two factors that have been at play, just so everybody has context here.

Number one is we put very tight fraud control into the system. As a simple example, you can't take a photo of a photo of a photo.

Our technology can see that and understand it, we red-flag you and block you from being able to come on and make payments. That increased friction, good result, has put us in a very unique field of $0 default.

That's enormous when you consider the amount of advertising, marketing, and awareness that went on by the funds to bring people toward either Rest pay or Ozpay, or Aussie solution, or the other fintechs. While we're really happy with that, we're able to use that control period now, reduce that friction by around 90%, without actually increasing any risk.

We continue to monitor. That is one of our most critical programs.

That's an excellent result. It means, you put friction in the system, it slows users down.

The other side of that consequence is AustralianSuper and Rest have had major transformations of their contact center, taking their contact centers in-house. That means when you put friction, you provide lots of phone calls for them to have to deal with.

They have stabilized how many invites go out to users to ensure that they had the capacity to handle those calls. Now where we sit this week, just to give you an indication, the highest invite list for customers 3 weeks ago, 4 weeks ago would be 10,000 businesses.

We now go out to market this week, one of the funds alone, to 46,000 businesses. That gives you an indication of their level of confidence of their ability to bring customers on very, very quickly without unnecessary friction.

What did that mean? It really meant we've got customers on a slower pace than we would have liked.

That impacts the total ARPU per user this year because many users will be onboard 3 months less than we would have typically liked, 3 months less transactions. That's a bit of a background on the controlled ramp.

I think it was well balanced. We're really happy with the position that puts us in, but, as we now see, the jump has been quite significant, and I'll jump through those numbers a little bit with you.

Across the clearing house, we've contracted about 4.4 million users across the funds. We also have our own users on top of that, that are growing at quite a fast pace, our 600,000, and it looks to be close to 700,000 by the time we migrate them on, about 111,000 organizations.

We had set a target of ourselves of 250,000 organizations. Where have the months been?

As of the 20th of each month, most recent data we could pull for you, we had about 6,000 organizations on. They loaded their users, about a million users, and then sat quite still.

Didn't make any processing. They went through and cleaned their data and got their data ready.

221,000 users, total contributions processed about $100 million. That's May.

Moving into June, 18,000 organizations uploaded themselves onto the system by the 20th. That added about another 590,000 tax file numbers, unique tax file numbers, actually lots of small businesses in that hum.

404,000 paid their super, so that's ahead of Payday Super. Not surprising, given small businesses will try and delay we think a little bit longer.

Then hit June, as at a week ago, we're now 35,000 businesses, 1.9 million, 720,000, and about $1.36 billion in moneys, right, moneys that have processed over the clearing house. The ramp-up is actually quite significant.

We see that total number for the year, just to give you an idea, processing around about $20 billion. So 1.3 at the 20th of the first month, thereabouts, we see that growth rate pretty high, stabilizing at the moment at about $50 million of transaction every day.

In terms of users, and this is the number that really matters, for the last week, we've seen the uptick stabilize at about 30,000 users per day, so that's 30,000 tax file numbers per day. We believe that will maintain at least over the next quarter, but likely drop off as we move to the tail end of customers.

To give you an indication, our major funds have now deadlines in place. The Small Business Clearing House that's used by Rest and the boutique funds moved to read-only at the end of July, into August, and AustralianSuper complete their migrations at the end of October.

Now, we expect we'll keep the systems live and help support them for an extra month of lagged customers, but for the most part, they are driving forward now with ambition because they feel incredibly confident on where they're at in the platform. What does that mean to the revenue?

Let's just talk about that. The grey along the bottom here, the $18 million that was achieved last year, of that total revenue, what was ARR, licensed-based revenue, is sitting at around $9.9 million.

We expect that to go organically, it's already growing, we expect it to finish the year closer to $11 million. For those who have been around the business for a while, these are our licensed contracts with the other funds, ART, and so on, ART, Commonwealth Super Corporation, IWF, as well as the ClickSuper revenues.

The green line is our revenue line, because revenue lags our onboarding of members, because our ARPU of $7 takes a full year to achieve. If we take the bottom line, the brown, the yellow, the brownish color, that rate is 15,000 users a day.

If we were to maintain 15,000 users a day, the end of this financial year, we would be sitting at around $37 million of total ARR. That means FY '28 starts on a minimum base of $37 million, right, of ARR revenues, because we really moved out of consulting and one-off revenues now.

Obviously, if we can maintain the 30,000 to 35,000, we will achieve all of our contracts and have ourselves above the $40 million, and our revenue line will be much higher, earlier and ahead of schedule at April. It means we'll have capacity to be hunting for more funds to bring more users onboard to the platform.

The numbers that you see in front of you are really the MUFG contract on top of our existing licensed contracts. Revenue, the green line, does lag the ARR.

The ARR is an exit rate, it's the average of the last 3 months. Annualized revenue, licensed revenue that builds forward, we get that forever into the future until these contracts are no longer in place.

Actually, overall, really healthy position to be in for the company. I can bring this chart back up when we get to Q&A if that's helpful for people.

One question that was raised, I'll just head off here. Could our revenue be higher in the year?

Absolutely. That's, we don't have business targets at that line.

We are pushing for business targets higher. We want to set expectations because there are two things here that we don't have visibility of where I sit in front of you today, and that's the quality of users, how many users coming on a weekly and fortnightly versus monthly transaction pay is.

We won't have full visibility of that until about midway through next month. The second thing that drives variance, obviously, there is a lag of payment.

Traditionally, it's about at the end of the month, we bill, we then get paid 30 days later, although traditionally we've seen payment at the 60-day mark, which means cash is about 90 days, hence the green line, beyond the brown line. That's very much the focus for the year.

We feel actually it's incredibly strong position, which leads into the capital raise conversation. We had quite a lengthy debate in the business around the need for cash or not, and I'll talk to that a bit in detail just so you can understand the conversations and decisions that we took seriously.

Where are we? Effectively, we are looking to be incredibly confident when all eyes are on Wrkr.

Where are we right now? We are still in a sales process for four funds on top of the existing funds.

Obviously, two outside of MUFG, the two obvious candidates within MUFG. We felt that being close to our cash reserves was not the right thing going into that space, and we actually felt it made us vulnerable as a business around payments and payment terms.

We want to be in a position of negotiating strength with our partners and also with our upcoming funds. In effect, we're not in a position where we're negotiating on price, because our price discount has been set by AustralianSuper bringing the volume they brought to MUFG.

That was really what was important to us. Confidence in front of prospect funds, confidence in front of AustralianSuper and Rest, who are having to make the call to turn off and hard switch from their prior systems, what does that mean?

It means no going back. That's really good for our business, but we need to be rock-solid for that.

Also, we acquired PaySpace, we have assets already in play in pay and credentials, but we want to get on with them scaling, and we don't want to be deferring that for 12 months, because we know that there is build to be done and the revenue will significantly lag build. We want FY '28 to have all of the growth engines in play.

We really felt we had a need to be in that capital position. What that meant was, as you will have all read, we took the decision to go and take a placement of $10 million.

We chose a placement on the basis of speed and cost to execute. We didn't want this to be a lag or distraction on the business.

Look, lots of conjecture. I'll talk a little bit about it from a market perspective, but in this market, where there is uncertainty around capital gains tax rulings, where we look like we're spending money ahead of the uptake of users and look like we're likely to raise, we just felt it was doing damage to share price, share price stability, and the interest in our stock.

That was certainly one external element. We also felt the markets themselves are quite vulnerable at the moment.

We've seen the discussion on SaaSmageddon. The reality is, we use a SaaS pricing model, but we are a regulated transaction-based business, we're not vulnerable to the concerns at SaaS companies.

Also AI, which cannot be used on the data that we use, but actually can be used to fast-track new products and services into market. We see it as a distinct advantage, not a threat.

That said, you've got to explain that to a market that is fickle, and we've seen most SaaS companies come down as far as around the 50% mark. That really drove our decision to say, be prudent and be on the front foot.

Give you an insight, the debate really came down, to be honest, between ego and commerciality. If we backed my ego, we would run and thread the needle, and we would manage our cost line, and we would have gone into '27 in a very good position.

However, and good advice from the board and good healthy discussion, but to be in a position in November to need to raise, I think it would have been a difficult position for me to look my investors in the eyes and say we backed my ego as opposed to good common sense. We made the decision to raise now and be in a healthy position to move forward, and we believe that's going to pay dividends for us.

The final bit is, we've spoken about the why we're raising, but just where does the money go? Obviously, we're still going to spend very cautiously from here until we can see this current run rate of 30,000 continue.

If that continues, then we're free and clear on our core business. Customer onboarding, revenue generation is the number one focus still.

Payroll integrations, we continue to work in the payroll integration. Obviously we had 18 existing from the ClickSuper world that we've been able to migrate, but we've actually gone far deeper with both SAP and with Workday, and we feel that provides us a healthy opportunity.

In particular, they serve a lot of customers that are not with our existing funds. The third, obviously, product innovation needs to continue in this business.

We want the asset PaySpace to be yielding dividends. This is not a well done, you've won super, and that's the end of the value of this company.

Super is one segment, and one we prepared to grow into the other, but working capital is key, and obviously the capital raising helps. That really is the summary of it.

I would say, couple of insights before we jump in. Program has been an amazing success.

I won't disclose the numbers, but our fees are a fraction of what has been spent by the major super funds in building out this transformation program to use our software and take ownership of their call centers and their total experience for the employers. They are proud, and anyone who's driven past a billboard in Melbourne or Sydney will know it, because you've seen AustralianSuper advertising it on billboards, which is pretty new.

They haven't been in the position to be doing that for a long time. We're finding it difficult to beat them on digital marketing right now because they're investing so heavily out there.

Being successful, which is fantastic for us. Customers are proud, our clients are proud.

There was a collected caution as we went through the rollout. We are very confident we're through that.

I think the 46,000 invites, the turn-off dates of their existing clearing houses is just a clear answer to that. The friction, well, I'm glad we did it.

We had to train our software to understand the fraud detection, and now we're still at zero, but with low friction. I think that puts us in very good stead.

Fantastic quarter, even though we extended hypercare, so that is a positive for the business. Very strong ramp since July.

That tells us even though the ATO may not be fining aggressively out there in the market for Payday Super, there are enough organizations that are making the move, and we should also keep in mind that the concern for an organization is about cash flow management of paying super early, not the cost of multiple transactions, because that bill is being picked up by the funds because they pay the transaction fee to Wrkr. Management are bullish.

We're really excited about where the company's going to. Yet, we feel a lot more confident running at the start of the year with about $20 million in the bank, for sure.

We think that makes us a stronger partner, particularly as we continue to navigate and work with MUFG on bringing on the last couple of funds. The opportunity sitting in front of us are excellent right now.

That's where I would leave it for you. Please, fire off with questions.

We would love to hear what you're interested in, and we'll, you know us by now, we'll answer straight. Got something going on or not?

Hi, Trent. Hi, Karen.

I've got a few questions, but I'll kick off with one.

Michael, are you talking? Hang on, mate.

I can't hear you. I've got you muted.

One second, mate.

Can you hear me now?

I can't hear at all. I'm going to unmute you all, you'll have to go one at a time.

How about now? Can you hear me now?

No. I can hear.

Any luck now? No?

Okay.

Sorry, we're using a

new [unclear] interface, these may be

not great in tech.

Thanks, Karen. Thank you.

Thank you. You've muted yourself, Trent.

Can you hear us now, team? Right.

Go on. "What's the outlook for investment spend in FY '27 and the associated projects?"

Good question, John. The spend at the moment, we expect about the same profile of capitalization, but if I keep it really brief, we've set a ceiling on our cost base.

The cost base, including PaySpace, sits at $32 million. While we'll run a small buffer up and down over the year, the net position for the year is forecast and set to remain at 32.

If you assume our current revenue run rate, obviously the revenue or cash receipts will run under that 32 position. We would be obviously wanting to target higher than the $24 million line that you saw.

There is an $8 million, roughly, expected for capitalization this year in projects. That is predominantly geared for the latter projects around the payroll integration and PaySpace.

That sets us really in a position we would be expecting EBITDA positive through this year when you take into account capitalization. Major projects, we have no acquisitions planned at this stage.

We think we've bit off enough. We want to make sure that we are positive revenue position before any more bolt-on acquisitions.

That said, the investment of pay comes on the same platform. We don't expect to be adding entire builds.

It's fairly small. "For the ARR chart, please comment on where you think the rev might land between the minimum rev base..."

Look, I don't want to set the wrong expectations or forecast here. Obviously, everybody likes the line that could jump over.

We are targeting, though, for or just below 28, subject to timing. For our business, we're engineering towards that.

Feel good about that. It could be better if we get a much faster take-up.

We've got the switching over of the inter-fund gateway, which happens in November. If that happens in the correct timing of the current project plan is at, then we'll actually be in better shape.

If that's delayed, there'll be a lag on the second leg of transactions. Hence, the conservative figure, but we are expecting to go well above that, circa 20 28.

I think just adding to that, the conservative position that was shown on the chart in the green line is the $24 million revenue figure, because otherwise we believe that we're looking at the ramp-up rate at the moment in terms of how many users are being onboarded per day. Depending on how we see that continue or slow down, it will really depend on where that exit ARR rate at the end of the year will drive the revenue figure that we enter into FY '28 with.

The longer it takes, the less ARR we build up over the year. The shorter that it takes, if the figures increase, then the better that ARR exit position will be.

That

second question on the respective TAM, we see really in the shorter, FY '28, we see $50 million being the ARR, the annualized contracted revenue for the super segment. We can see pay being an equal segment, particularly with the PaySpace asset, as well as wages, single-touch payroll, and other reporting that we have the natural data flows for.

It will take longer to build to that 50, but it won't take a large cost base because the core product development will be far, far less than what the super platform has been. Just as an example, complexity in our platform of things like complex rules, when someone like Guzman y Gomez comes on and they have many, many different stores with different ownership of the stores, different payment rights and approvals inside between group ownership versus singular ownership, we've had to accommodate for all of that.

That makes our system very, very robust. When you add wage payment, we don't need to make any changes to those elements.

At that end, we think there is a similar opportunity, but won't be as near-term in the mop-up. I think there will be more M&A to achieve that, the mop-up of credentials.

It's a more lucrative segment. We think $50 million is a sensible target.

Rule of thumb: each segment in our business only exists as a segment because we believe it is a $50 million ARR potential segment. There is enough TAM, there's enough relevance in our product.

We'll get faster as we grow those off the same base, but, yeah. Hopefully that answers the point, Michael.

I'm going to say, Hayden. Can you hear me?

There we go, got you.

Cash costs are running at $36 million, what's coming out if you're saying it's a $32 million ceiling?

Switching your speakers. Sorry, Hayden, do you mind repeating that question, please?

I was just saying cash costs from last quarter was running at $36 million. If you're saying we're going to be $32 million for next year, what's coming out if CapEx is staying the same?

We've had quite a lot of cost in terms of the data migration piece of work in the year. That's been quite a material component, using subcontractors for that.

That will actually save us once that piece has come off, around $2.5 million in the year. Additionally, we're pretty much at capacity apart from, and this answers John Burgess' question as well, in terms of resources.

In order to scale up the resourcing quite quickly, we did engage recruiters. Obviously, when you've brought on about 40 employees in the year, not all were through recruiters, but we did have quite a high recruitment cost that will come off as well.

They're the kind of key material things that are coming off. We're also got some additional resource at the moment around our hypercare, and so we have a team of what we call our worker bees, who are amazing customer success people who are helping with the transition and onboarding our worker direct and ClickSuper transition customers.

That is a scalable team, which will also come off as the transition progresses. We've got some key areas of cost savings into FY '27.

Program management is the other side, Hayden, as well, where once we're through the actual program implementation, we're into a steady-state support. It's less of high-cost programmatic approach and more of a meeting SLAs, reporting on SLAs, because we're operating all the models at the same time, we already have those skills onboard.

That's been our biggest challenge of running three business models at the same time.

Sure. One more, if you don't mind, and then I'll just hop back into the queue.

Based on those metrics that you gave, even the contributions, it looks like you're running ahead even on that low onboarding outcome, and it's a pretty broad range of outcomes on rev as well. It's probably $24 to $40 million.

I guess why go $24 million given things are still looking like they're ticking up? What's the $40 million predicated on?

I think it's important to understand the chart. The dotted lines are ARR exit rate, and so not trying to forecast revenues in the year.

It's really looking at what that exit rate is on FY '27 based on the different scenarios. The $24 million solid line is really just managing the expectation around what is the conservative view, just to give our investors and market the position that the business can clearly see ahead of them, without understanding exactly what the onboarding rate will continue at, given that it is somewhat out of our control.

The key things that mitigate that obviously are the closure of the SCH Online clearing house, which is targeted for October, and the turn-off and complete switch from AustralianSuper from their previous clearing house in November, latest December. There's some mitigants to that, but we really just wanted to make sure that starting the year, we are talking to everyone about, yes, where is this conservative position, and then having a look at what those different scenarios that we'll see play out, which we'll be able to provide quarterly updates as to how that's tracking as we see the data come in.

Yeah. It sounds, yeah,

just conservative, cuz, yeah, if I use 37 exit, compare that to 50 exit, you should book $31 million in '27, versus 24. It's not that anything's going wrong, cuz, as I said, it sounds like it's picking up.

It's more just, as you said before, just a lack of visibility, just expectation-wise. Is that right?

Yep.

Correct.

Yep.

You got it. Look, we're really bullish, but I think in fairness to our investor community and where the share price is at right now, we felt let's set really conservative hurdles and continue to outperform them, and also acknowledge there are some things we just don't have visibility of or control.

As at last week, AustralianSuper sends out 46,000 invites this week. Anything could pause that, pause it by a week or 2 weeks.

We want to make sure we're across it. At this stage, they go, and there's no reason to delay, but it's a step we don't control.

I think we just have learned in dealing with the funds. We also deal with the funds through MUFG at times, we want to make sure that all of the decisions and all of our confidence is also bakes in what we can't control when some move a little slower than maybe we move as a business.

Yeah.

John, just to pick up on your one, yes, the 32, and then we take the capitalized investment...

As a part of that.

...as a part of that. So.

I think there's another question there as well: "How many FTEs currently, and is this full capacity?" We just had a new starter today, actually, who is going to be our payments and data reconciliations manager.

Obviously, as the funds scale, that role is very key. We wanted a dedicated resource around that, and that also feeds into our next growth phase around pay.

He'll be working with the product teams and working closely with them about what that strategy looks like as well.

And... I was going to say, I think the reality is there will be circa another five to six people we can see as experts, we're stretched and don't have them, but there are other areas in the business where we've now evolved the business quite well and have moved on from.

There'll be a conversation around is the repatriation of the right people internally or starting to see some change to that total headcount? We've got at 100-plus people, we've got a couple of people who move on, find the right next stage in their career.

We don't automatically replace. We're kind of picking our positions well, and we're very conscious of keeping to that 32 cap line.

It's a KPI of the management team. That said, you'll still see us putting ads out.

We still want the best talent we can get in the market. As we bring on new funds, we've got the capacity right now, we would shift some of that capacity obviously directly into helping onboard those funds.

There was a question on the funds if we just go back, the four funds. Obviously, we are very keen on concluding and bringing on Cbus and Hostplus.

That would fulfill the MUFG platform. It's healthy for both our businesses because they are dealing with one technology interface into Spire.

They've had very good feedback from their existing funds. We've had great feedback when we've presented the full solution.

Westpac is in and providing to those two right now, we keep a watch on that, whether they're going to invest heavily in their platform and compete head-to-head. The reality is their biggest client in AustralianSuper is now with us, and we think that's a pretty fair barometer of what is likely, assuming funds are looking for the same competitive proposition that they sought.

I don't know how to tell you that I feel good about that area. The other funds, we're actually seeing direct reach out.

I think we've been in market now long enough to be seen as a trusted provider. There's good feedback.

It's a very tight industry. People move around, which is great, we are getting the net benefit of that now, people who were our clients before popping up in other funds.

That said, this next 6 months to 12 months is going to really create a different type of noise, and that is when AustralianSuper and Rest are growing their default member base because of the quality of software they're putting in front of their clients, that's the test. When they achieve that, we have delivered more than what was ever expected, and also it forces other funds to really look towards us as the model to move to.

I'm not backwards in having those conversations either in the market. Either we're growing more funds, or we're helping our current clients grow.

They're all users on our platform to me. That's the brutal truth.

PaySpace, "Any update on the PaySpace integration as well?" Question from Michael.

PaySpace going well. Look, we set them a pretty tough task, which was don't let our people destabilize you or vice versa.

Even though there's enormous excitement about the coming together of the two knowledge sets, we asked them to stick to what we call 4 on 4, they were $4 million cost base, $4 million revenue. We felt comfortable enough to part ways with their CEO, who had helped navigate through the transition.

We achieved those results early. They hit the numbers we wanted, and the team are growing well.

That said, we have already started a project, and this is where AI comes into play. A lot of people are unaware, but the bulk of the market, not just those on Small Business Clearing House, there are tens of thousands of businesses not using payrolls in this country who need help, and they need something very simple.

Through PaySpace and through our system, we are starting to build out a solution into that space to allow companies to both calculate their pay and do it correctly, but also then generate the SAFF file into Wrkr, generate the STP file, generate the payment file into wages. Targeting small business, which is a massive sector.

That is the first early area where we've been able to navigate together. Actually, the funds have fed back to us, they're pretty keen on seeing that evolve, because they have a larger customer base than we originally thought in the small business area.

Hold your horses on that one in terms of we're not baking in any revenue expectation, but that is where we are doing our building. Yes, we are heavily leveraging AI around the various user interfaces and experience, but not AI around the data itself.

We have a built-in AI homegrown model inside PaySpace, which allows us to vet and assess whether someone's paid correctly. That's been the journey with them.

We're trying not to bite off too much and not let them get too excited about that when we're still on our $4 million, and they've done that in spades. We're happy.

This year, we move into create new features that will be on the Wrkr platform and transition out of that $4 million, just change the shape of it. More ARR, less services, more partners.

That's the work being done for this year. Setting expectations again low, but that said, we're pretty excited with the trajectory right now.

"When will PaySpace ARR be visible enough to be reported separate so investors can see its own progress?" It'll be reported on this year as we go and grow.

It'll be wrapped, though, into the broader pay segment, because there's a merging of some of the products there for the wage payment, back payment, and the likes, but you'll get good visibility into that. I did mention in a recent call, the main job is for Wrkr to be driving referrals into PaySpace.

Actually, it's already driven two referrals into Wrkr, which has been fantastic, we owe them right now. They were two quite substantial companies that they've opened the door for us on for our standard solution, which is excellent.

"Any comments regarding exposure in Hong Kong?" Look, just to maybe close out on a couple of these questions.

Look, no exposure, but we're in Hong Kong. We've got some choices to make.

We make a reasonable piece of license on Hong Kong. It sits inside that $10 million ARR.

Look, we're going to make a call at some point: Do we get up and grow and really be aggressive in Hong Kong, or just stay behind the scenes supporting MUFG? They've only rolled it out to HSBC.

That same solution has several other opportunities we see in the market. Again, I just think the spread we have today is quite large without taking on extra costs.

When you go into another geography, there is no way of avoiding extra costs. You need critical mass of people.

Right now, it costs us very little to support with reasonable revenue. We're going to just keep the foot and the eye on that market.

I want to win in Australia and conclude the Australian business before we look into the other geographies. I'm really happy with what it contributes.

I'll take a half a million for low to no cost, but I just don't want to go you've got to invest to grow up there, and we just don't want to at the moment. Good to have the options.

"What about the future market cap predictions?" Couldn't tell you, Luke.

We don't predict on future market cap. Look, for what it's worth, I'm incredibly bullish on this business.

Joe and I aren't sellers. Those who know me know my aspirations and where I want to take it to.

I can see a really clear path. I think we're paying the price for current market conditions and questions on is it real, right?

Because we're burning cash without people seeing the revenue. I think as people see the revenue come on this year and the customers come on, I think we go back and upwards from where we were, is my sense.

My job now is to make sure that we're sharing that information with everybody, and we're pretty excited that we're actually in a position as at today, we track it daily, and I've got green ticks across the screen. We are expecting on a monthly basis, we're in a good, healthy position, and we can see where we're tracking to that graph that you saw before.

I think that's pleasant, because this is not a great newsreel business. It's add a super fund, they're few and far between.

It's about adding the members, and that's what we want to spend the time educating the market on now.

Just got another question here: "Any update on gross margin exiting FY '27 at your targeted ARR?" Regardless of kind of where that ARR is, we're always targeting a gross margin of 80%, and that's kind of consistent with the industry and what those costs to sell are for a SaaS technology company.

That's where we will continue to target regardless of where that targeted ARR finishes.

Perfect. I think that kind of closes us on time.

We've recorded it, I'll definitely put it up. As always, feel free to use our investor hub online, fire off questions.

I look at the business where it is sitting today. This is the most confident I have ever been in this business.

We're in really good shape. I wish you could come in and take a visit into the offices, and I think our AGM will be based here in the Sydney office, and hopefully people get a chance to just see what's going on in the engine room here.

Our investors should be as proud as AustralianSuper and Rest and the other funds are with the decision to go with Wrkr. Thank you again for your time.

Again, always reach out. Thank you.

Thank you.