Interlink Electronics, Inc. Price & Performance (LINK)

This setup is creating a larger reach than many of our competitors who have a more regional or centralized approach to the market. Link's more than 50,000 clients serviced by our 30 offices in 18 countries are a result of the successful implementation of this strategy over many years. Group revenue during the last twelve months was recorded at SEK 7,000,000,000. Link has grown significantly over the last years, with a revenue CAGR of 19%. Profitability has always been a key priority. Link is growing the business while generating costs profitability growth with a CAGR of 16% the last four years. For 2024, adjusted EBITDA is reported at SEK718 million. Or a growth of SEK 105,000,000 or 17%. Think as a central position in the industry value chain, so supporting clients with connectivity and SaaS solution to enable clients to communicate with their end users.

Enterprises have a constant need to communicate and inform their end users. The enterprises are increasingly choosing the mobile phone less the communication channel towards their end users. This megatrend is being driven by the end users We prefer that enterprises communicate with us over the mobile phone and the enterprises are just adapting. Link has the connectivity to the mobile operators and the relevant OT channels. Which is combined with our software solutions to provide our enterprise clients with an end to end communication solution towards their end users. Those software solutions include chatbots combined with AI, marketing automation, [indiscernible] Linked software solutions combined with the connectivity enables a state of the art multichannel and conversational communication platform. Ensuring satisfied end users and high return on investments for our clients. Link is operating in a growing market. There are two main growth engines in our industry. Firstly, more and more enterprises are using digital communication solutions. And they are utilizing it in more and more areas. This significant upside is documented by differences in The Nordics are the most penetrated regions with the rest of Europe lagging two fifty messages per citizen per year behind The Nordics. This is 134% GAAP or a growth potential as we see it.

Successfully introducing new use cases to market will result in a higher growth momentum as the penetration rates are increasing. Link has an excellent position to extract this growth with our local approach. We have people on the ground to explain and motivate enterprises to adopt new ways of communicating digitally, learning from our experience in a more advanced Nordic Secondly, new channels like RCS and WhatsApp are opening up for new ways of engaging with end users. Through initiating conversations with the support of AI driven bots. We already see these more advanced products yielding significantly higher value for our customers. Enabling us to charge a premium for those services. Before presenting the Q4 results, I would like to summarize this strong year of 2024. Link performed in the high end of expectations with a 10% gross profit growth and 13% adjusted EBITDA. These growth numbers are well over what peers have been able to deliver, which in our view is the documentation of the strength of the Link's local approach. Our local teams are working the market, growing the number of use case in each country, and we are increasing our market share. The fourth quarter reports high performance, with an organic gross profit growth of 8% on top of higher comparable same period last year.

Adjusted EBITDA growth is reported organically at 12%. The quarter is a continuation of the solid performance the company has reported over the last seven to eight quarters. In the current quarter, gross profit growth significantly higher than revenue growth. Gross profit growth is driven by more activity on higher value clients and advanced product with higher margins. Revenue growth in the current quarter is impacted by soft development and low margin traffic, partly caused by higher comparable in the Global Messaging segment, but also on certain high volume, low margin enterprise clients. The profitability contribution on the more on the more advanced products have contracted the softer development on the low margin traffic on the gross profit. But not to the same extent on revenue, thereby resulting in a higher gross profit growth than revenue growth. The Enterprise segment is reporting a revenue growth of 50,000,000 Revenue in Global Messaging has declined EUR €78,000,000 due to link terminating traffic to lower margin destination focusing on more profitable arrangements. The aggregator business in Global Messaging is more volatile. And less sticky compared to the enterprise regions. Volumes fluctuate based on decisions on the Link side as well as clients' needs and adaptions.

Link has terminated several low margin destinations reduced revenue growth, but still increasing gross profit growth and gross margin in the segment. Gross profit is reported at SEK436 million or an organic growth of 8% in VIX currency, which is in line with the expectations of high single digit gross profit growth.

Adjusted EBITDA is reported at EUR113 million or an organic growth of 12% in fixed currency. Higher than gross profit growth due to Link's scalable business model. Link also generated high net operating cash flows of 160 Linkast invested significant resources over the last year to have a superior product offering on RCS. Combining the channel with AI driven chatbots and template managed and builders to automate and support client communications and campaigns. Juniper has recently rewarded Link with the Platinum Award for the best RCS Solution in Europe. Gross profit is reported at $430,000,000 or a growth of 8% in fixed currency. A solid contribution from the more advanced CPaaS solutions with higher margins, together with strong growth momentum on high margin clients and traffic. Was the main driver of the growth. Q4 is a retail heavy quarter and we observed strong interest for many clients to perform more advanced mobile marketing campaigns on richer channels like RCS in combination with chatbots. This effect is also evident in the organic margins with a 2.1 percentage points increase in gross profit margins. The graph at the bottom of the slide displays the margin impact from the segments. Both the Enterprise segment and Global Messaging is reporting an increase in margins with approximately one percentage points each.

Link revenue churn has historically been low, normally between 1% to 2% of revenue.

Last quarter, the churn was extraordinary impacted by terminated clients in Global Messaging with minimal effect on gross profit growth. In the current quarter, the churn on Global Messaging has returned to a normalized level. And the revenue decline on this segment is a result of terminating traffic to low margin destinations on existing clients. Enterprise journeys reported at 2.2%. Similar trend or similar trends as observed in the third quarter. The enterprise churn was impacted by a bankrupt retail client in Western Europe, increasing the churn with plus 0.2 percentage points. Net retention in the current quarter is still as a relevant KPI due to a stronger growth momentum on higher value clients and products and a softer growth on low margin revenue, resulting in solid gross profit growth while the revenue development is more stable. The softer growth on low margin revenue is partly explained by high comparables same period last year. And the refocus on profitability in Global Messaging. Terminating high volume but very low margin traffic. Net retention is expected to normalize after Q2 twenty twenty five with normalizing, the company is expecting a net retention rate more in line with gross profit growth, excluding the impact from new clients.

We have significant improvement in new business wins over the last two years. Based on the renewed focus and changes in commercial execution. The graph on the bottom left shows the estimated analyzed gross profit on new contracts. The numbers are extracted from our CRM systems and the estimations are based on contractual arrangements and specific dialogue with clients. Germany and Linc, we have a target of achieving €40,000,000 plus in gross profit from new contracts [indiscernible] except Q3, which will be lower due to some vacation. [indiscernible] The current quarter resulted in €38,000,000 in expected gross profit from new contracts, isolating new contracts for the advanced conversational products named CPaaS in the graph. The current quarter is at €14,000,000 on estimated gross profits. We observe more traction and market demand on advanced mobile marketing solutions combined with bots and WhatsApp RCS. We also see more demand for marketing automations and CDP in The Nordics. The OTT channels are in high demand. RCS and WhatsApp combined with chatbots and other software solutions are growing rapidly. The main use cases are mobile marketing and customer support use cases. Link is further enhancing its SaaS solutions with AI content creation to help our clients to automate more of their campaign activity.

Historically, about 75% of the gross profit is recorded in the P and L after twelve months. We expect the higher contract backlog to benefit gross profit growth gradually. The more advanced speed bus contracts take longer to scale volumes versus legacy products. But of course results in immediate and higher license revenue. Link has a healthy sales pipeline in addition to new agreements well. RCS is a feature rich channel that we expect significant growth on going forward. RCS can be viewed as SMS Version two as the channel is embedded in the SMS app, but with all the functionality and features we are used on, for example, WhatsApp iMessage. RCS has been on the market for several years but until now, only been available or compatible on selected Android handsets. Apple has not opened up for RCS until now. This has held back the adoption significantly. Apple launched RCS on iOS 18.1 and are gradually rolling out this feature through mobile operators in Europe. Spain, France, UK, Belgium and Germany offer RCS on both iOS and Android. Rest of the countries are waiting for iOS to be rolled out. Customer demand is driven by the additional value of this channel is creating through a better end user experience and interaction.

With a higher response rate, engagement and significantly better conversion on RCS than SMS. We expect material commercial track on RCS when it can reach all end users with the increased security features and ease of engaging into conversational dialogue. RCS is rapidly growing as we speak but we expect this growth to accelerate when the channel is available for most end users. Link has made significant investments in RCS as a channel and developed software solutions on top of the channel. The state of the art product offering has been recognized by Juno Press the best RCS business messaging solution in Europe. Specifically, Linx AI Link and software solutions supporting and automating client campaigns on RCS together with our exceptional customer support, has been highlighted by Juniper as unique in the industry. RCS is getting traction in The Nordics also. Two large Nordic brands have started utilizing RCS customer dialogue with tremendous results. RCS through the channels reached feature set is enabling increased customer value through higher sales conversion, click through rates and end user engagement. Link's state of the art RCS product offering will secure the company a leading position in this rapidly growing market. In addition to organic growth opportunities, the company is well positioned for inorganic growth through M and A. Link has the competency, the historical track record for value creation, through M and A and a solid pipeline with M and A targets.

Since 2015, Link has closed over 30 acquisitions, of which the majority have been a great success generating significant value. In 2024, Link Link closed three acquisitions. Easy for You in Portugal, NRS in Spain and Reach Interactive in U. K. And war is expected to come. Of up to €30,000,000 to €40,000,000 Of these 11 targets, linked cash forecast companies under due diligence as we speak In Q4, one target in due diligence process was dropped. Due to our findings. Has been replaced by another opportunity. Well, Dons in Europe have priority, but we're also looking outside Europe. Private companies in our space have a target valuation of between 6x to 8x cash EBITDA before synergies. The quality of the customer base, growth momentum of the [indiscernible] placing the valuation in the mentioned range of six to eight times cash EBITDA. The company is pointing to Link stable historical performance to provide further guidance on reasonable expectations going forward. We expect Link's European business to continue to display a high single digit gross profit growth rate. Additionally, we expect the adjusted EBITDA growth rate to be higher than the gross profit due to our scalable business model. Inorganic Link has a growth target of 10% on adjusted EBITDA through bolt on acquisitions.

Link has NOK2.5 billion in cash reserves The cash position will be further strengthened by time as the company historically generates approximately €400,000,000 in free cash flow on a yearly basis. The high cash reserves will be used for acquisitions and a significant repayment of the excess bond when the last charge of the bond will be refinanced in 2025. Acquisitions will not increase net debt beyond a leverage ratio of between two point zero to 2.5. That was my part of the presentation, Martin. Please take over to guide us through the financials section. Thank you, Thomas.

Link reports quarterly revenue of more than NOK1.8 billion, Revenue growth was, as in the third quarter, impacted by termination of low value traffic in the Global Messaging segment. While in Q3 twenty twenty three, we observed high comparables and higher volume loan margin clients, leading to a slight organic revenue decline in stable currency of 2%. Taking into account positive currency effects of €22,000,000 in the quarter. Acquisitions closed this year contributed €58,000,000 dollars and total reported revenue growth was 3% in the quarter. [indiscernible] Zooming in on the organic revenue development, enterprise revenue growth was 4% Central Europe contributing significantly to the total growth of EUR 50,000,000. With healthy growth on both domestic and global clients. And organic revenue growth in the region was 13%. Northern Europe delivered low digit growth in line with previous quarters and was negatively impacted by three percentage points from the internal shift of global clients to Central Europe. Western Europe remained fairly stable due to higher comparables mainly on higher volume and low margin clients. [indiscernible] Global Messaging segment reported revenues of nearly €380,000,000 an organic decline of 17% impacted by termination of low value traffic in line with the previous quarter, from refocused towards higher value traffic mix and reduced credit risk.

Total volume reported for the quarter was close to €6,000,000,000 Messages representing a reported growth of 24% and impacted by adding on significant volumes from the LatAm business part of the acquisition of NetWheels Solutions in Spain. Organic volume growth on SMS was, as for revenue, impacted by termination of traffic and higher comparable [indiscernible] While other messaging, including OTT channels, continued to grow with solid growth momentum organically at 30%. Moving over to the next slide on gross profit. Gross profit is reported at $436,000,000 a reported growth of 13% with a positive impact from currency of 5,000,000 and acquisitions adding on €16,000,000 Organic growth in stable currency was 8% and outpacing revenue growth from shift towards higher value revenue compared to the same quarter last year. We are pleased to deliver a strong last quarter of twenty twenty four with gross profit growth in line with expectations and concluding the year with double digit organic gross profit growth. The enterprise gross profit growth improved quarter over quarter by two percentage points to 8% and outpacing revenue growth of 4% from improved revenue mix towards both higher value traffic and products. In terms of regional contribution, Northern Europe delivered an underlying gross profit growth of 3% adjusted for the internal of global clients to Central Europe The underlying growth momentum is soft on existing clients influenced by price increases from operators over the last few years, while new contracts contribute positively.

Central Europe contributed positively to total growth from both top line growth, but also an improved contribution from more advanced products on selected global clients. Leading to our reported organic growth of 23% in the quarter, including approximately two percentage point growth from the internal shift of clients from the Nordics. Western Europe delivered organic growth in line with previous quarter of 2%, impacted by both the isolated bankruptcy churn of a large retail Link since last quarter a high comparable same quarter last year. In the quarter, the disputed operator price increase in Italy was resolved, resulting in a full reversal of the accrued COGS last quarter of $3,000,000 Higher interest in and increased use of richer OPT towns contributed positively in our Retail peak quarter It was partly offset by the isolated retail churn, which included a high O to 27%. Mix towards higher margin revenue as in traffic and products impacted enterprise margin positively. While the reversal of accruals related to the disputed operated price increase had a 0.2 percentage points impact on the margin year over year. Then to the next slide on adjusted EBITDA. Adjusted EBITDA is reported at $213,000,000 a reported growth of 1812% or 22,000,000 organic growth in stable currency.

Growth is driven by €30,000,000 organic gross profit growth and partly offset by an organic OpEx growth of 4% The increase in operating expenses was mainly driven by salary inflation, and growth related items. The inorganic growth contribution from acquisitions closed in 2024 was €9,000,000 in the quarter. Adjusted EBITDA margin in improved year over year by 1.5 percentage points driven by the expansion in gross margin, partly offset by increased OpEx to sales [indiscernible] Linked to revenue decline from low margin traffic. In the lower graph, we have bridged the effects from non recurring costs between adjusted EBITDA and EBITDA in the fourth quarter. In total, we recognized nonrecurring costs of €51,000,000 in the quarter, Cost related to share option was reported $8,000,000 and includes outstanding incentive programs and employee share option programs, with a declining cost recognition as programs approach maturity. M and A costs were NOK 21,000,000 in the quarter and where of EUR 15,000,000 was related to closed acquisitions while the residual is related to ongoing processes including the ongoing due diligence processes on four prioritized targets. Other nonrecurring costs was related to the restructuring Costs related to severance agreements of 5,000,000 Unfortunately, we experienced a successful phishing attempt in one of our despite high focus on awareness and training on this topic, the amount assumed lost in relation to the incident is €18,000,000 and then the insurance claim is ongoing and still pending conclusion.

Moving over to the P and L. I will only focus on a selected few items as we have been through development in adjusted EBITDA. And I have explained the nonrecurring cost The cost of depreciation and amortization is reported at $82,000,000 a $9,000,000 decrease related to our one time catch up in D and A in the fourth quarter of twenty twenty three. D and A related to acquisitions added was $3,000,000 which together with currency effect was fully offset by decline in D and A on development projects and right of use assets. Net financial items are reported at negative €27,000,000 and includes a net currency gain of $14,000,000 recognized in relation with revaluation of the earnout from Messer's broadcast investment of 50,000,000 partly offset by small net other currency loss of EUR 1,000,000. Dollars Net interest costs reported at 25,000,000 includes 27,000,000 Link bond interest costs, dollars 10,000,000 in amortized transaction cost, of 6,000,000 is an early recognition due to the partial refinancing of Link-one Link ahead of maturity. Interest and transaction cost was partly offset by net interest from cash deposits totaling €12,000,000 in the quarter. Then to the balance sheet. Non current assets amount to €6,600,000,000 versus €4,700,000,000 in goodwill.

The year on year increase of €260,000,000 is mainly driven by acquisitions closed in 2024 contributing SEK200 million. Dollars while the remaining increase is related to currency effects. The decline in non current assets from the third quarter of €860,000,000 was mainly driven by cancellation of the €74,000,000 on bonds held October 2024, in relation to the partial refinancing of the Link Trading on the receivables was reported at €1,600,000,000 and include the seller's credit and earn out related to the divestment of Messer BroadCast totaling €286,000,000 which is due in the second quarter this year. Which is the main driver for the increase together with current adjustments of €48,000,000 and €32,000,000 related to acquisitions. Underlying development was positive following termination of low value traffic and improved collections. Cash reserves were reported at $2,500,000,000 and expanding year over year mainly from contribution from The U. S. Divestiture four partly offset by buyback programs for on bonds and and shares as well as closed acquisitions. During the quarter, Link acquired owned shares were 36,000,000 and concluded the share buyback program while the consideration net of cash paid for each data acquisition in The UK was $37,000,000 The cash outflow impact of the partial refinancing was €33,000,000 in the quarter related to coal premium and transaction fees.

Reported tables was close to €1,500,000 versus slightly decline year over year with contribution from acquisitions adding €14,000,000 and currency effects adding another $55,000,000 underlying decrease reflecting normal fluctuation timing of payment payments mainly to mobile operators. Net interest bearing debt is reported at €994,000,000 calculated in accordance with our bond agreement with gross debt related to the two outstanding bonds €296,000,000 remaining €171,000,000 Link-one bond matures December. And is reclassified to short term borrowings from this quarter and is expected to be refinanced at the lower level in due time. Quarter over quarter, net debt was marginally up despite extraordinary cash outflows of more than €100,000,000 related to the acquisition of Reach Share repurchase and refinance simulated cash outflows. Which was offset by the strong operational cash flow. Leveraged end of twenty twenty four was reported at 1.3 times LTM pro form a adjusted EBITDA, or slightly down from the previous quarter. The receivables sales credit and earn out related to the divestment of Message Broadcast during the second quarter totaling €286,000,000 is not deducted in net debt calculation according to bond terms. LTM pro form a adjusted EBITDA. End of twenty twenty four. Further to the last slide, an overview of key operational and cash flow items.

In the quarter, we reported a strong cash flow from operations of SEK 166,000,000 or close to 80% of adjusted EBITDA with a slight positive net impact from interest received and other working capital items in the quarter. CapEx was supported at $41,000,000 with the impact of $3,000,000 related to acquisitions closed during 2024. Second half CapEx was somewhat elevated compared to first half as selected CPaaS solutions will have been fast tracked to secure closing of customer contracts. Interest payments at a lower level than normal due to the cancellation of on bonds held totaling €74,000,000 refinancing €125,000,000 of Link two into the Link two bond, which have quarterly interest payments. Compared to [indiscernible] and hence approximately EUR 15,000,000 in interest paid had been shifted to first quarter twenty twenty five. On an LTM basis, free cash flow after CapEx and interest paid was close to €400,000,000 Following the partial refinancing, we still reiterate that financial policy remains of net debt not exceeding two to 2.5 times LTM pro form a adjusted EBITDA which still gives ample room for executing on the inorganic growth strategy. That completes the financial section. Now we open up for Q and A. Please post questions online.

Okay. Some questions. We'll start off with some questions from Estrand Odugoi in ABG. The first one, was there some specific reason for the lower GP from new contract wins year on year or just normal fluctuations in contract sizes?

No, there were no specific reasons for it being slightly lower than the target of SEK 40,000,000. It was more, as Estrag is mentioning, normal fluctuation basically.

Second one, do you see potential for larger level of acquisitions in Europe or would you need to go outside Europe to do larger M and A? For level of acquisitions in Europe, but that doesn't necessarily mean that they're only in Europe.

It can the company can be located outside Europe and also have a significant footprint in Europe. So So there are still opportunities for M and A in Europe. I will move to some questions from Keeson Spatal in Arctic. The first one on the specific fishing incident in Q4 is NOK 18,000,000 the maximum loss or could there be more? I can take that one. That is the max exposure. That we have recognized. There is no further exposure on that incident. The second question from Kurdistan is can Link do anything to mitigate operator price increases?

Normally, our Link always transfers mobile operating to pricing is to our customers. That is mirrored in our customer agreement. We, of course, do what we can to avoid mobile operator price increases in advance, if possible. It varies from country to country. In some markets, have better opportunity to avoid mobile operator price increases like in Italy, for example, where we negotiated with got a much more favorable outcome than what the mobile operator initially flagged.

And the third one from Afghanistan is given the higher share of CPaaS in new contracts, does this imply a higher risk of growth materializing given that RCS only has partial support across Europe We've been fairly restricted [indiscernible] from the CPaaS contracts In many instances, we only include license fees. If we include volumes, it's because we have very specific guidance from the customers. So I don't think necessarily the risk profile is higher, but we do see that it takes a little bit longer to scale those contracts. So it might take a link longer to sort of get the full gross profit potentially in the P and L. And we'll take some follow-up from Stein in ABG.

Have you seen any changes in the competition for M and A targets?

No. We haven't seen any any changes in the competition. It's more or less only elite. Which is interested in acquiring companies in our industry right now.

And we haven't seen a change on that.

The last one from Astrand. So far is, are there anything special in the comparable numbers for H1 twenty twenty five? Or should we expect growth in line with your guidance? Of high single digit organic growth? I can maybe comment on that. So When it comes to sort of the gross we focus on gross profit, First half was fairly normal quarters for us. As we presented on net retention, we expect that to sort of normalize after Q2 once we sort of faded out to strong comparables on this low margin eyeball in clients and the termination of traffic in Global Messaging. Then we'll move to some follow ups from Christian had a follow-up. EBITDA contribution from acquired companies similar to Linx recognized M and A expense. How do you weigh the benefits from smaller bolt on acquisition versus the M and A expense? M and A activity taking some of our management focus away from organic growth? Yes, I can start with the last part of the question and maybe, Yvonne, you can go into the details on M and A ex expenses and the contribution from the EBITDA contribution from the acquired targets. The benefits from smaller bolt on acquisitions are quite large actually.

And it doesn't take away the focus on top management at least. I am, of course, involved in reviewing the bolt on opportunities that we're having and which which want to acquire and want to pay for them. But when you look at the onboarding, it's handled by a local manager. UK. So that is happening quite efficiently. And also the bolt ons, they give us more capacity in the certain country. We get more resources, more people, more customers and more opportunities to find the growth Yes. And I alluded to in my section, about EUR 15,000,000 is related to the closed opportunities. Fair share of that is coming from what we closed this year. There are also some some run off costs on the projects and some related to domestic broadcast divestment, which are also booked in the fourth quarter. While EUR 5,000,000 is related to ongoing processes, especially the four targets, which are in our due diligence stage. Then I have some some other questions from other listeners. There's a question here. How will AI influence on your business?

Yes. AI, we have already introduced AI into our products. The chatbot solution is combined with AI and we are selling that. So this is sort of in the beginning phase, of course, of the product. And it's only the sort of more first movers who are interested in experimenting with these kind of solutions. And as I said, we are also now working on AI when it comes to the content generation of of the more complex campaigns and communications. So, AI is something we're working on.

There's a follow-up and when will you be able to pay dividends? [indiscernible] from 2020 prohibits us from paying dividends. When that is being refinanced, the company will give some more clear our intentions regarding that topic. That is expected to happen later on in 2025.

Yes. I can just comment that there's a limitation there in the LINQ-one bond agreement. At the Link two, there's more room for dividend or it gives more dividend capacity basically. So as Thomas said, once we refinanced the last year of Link, we will come back with an update on dividend policy. And some other questions. Congrats on yet another solid quarter. Clearly, the company has ample flexibility to address final loss outstanding on the bond issue in December. How should we think about the company's cash position and liquidity beyond 2025? What is a reasonable long term liquidity position and it's revolving facility not a better option having so much cash on the balance sheet.

Yes.

I agree. We have too much cash on the balance sheet right now. This is not necessarily something we were aiming for. It was a result of the of the disposal of Message podcast. In January 2024. When we do refinance the bond, we have said that we expect a larger sum also to be down paid on the outstanding linked [indiscernible] And after the refinancing on our bank deposits. The long term liquidity need of the company when you exclude M and A is around €400,000,000 500,000,000 And then sort of we will get back to how we want to sort of add flex flexibility for acquisitions. That can be done with a smaller sum on the back statements or it can be done through an RCF. That's something we will get back. [indiscernible] And then there's a question from From [indiscernible] Securities. Do you have an update on the operator price dispute from Q3? Yes, we as we mentioned [indiscernible] writing that in the report, we have come to agreement, as Thomas said, with the operator the negotiations, and we have fully reversed the additional accrual of around €3,000,000 that we recognized in the third quarter So that is reversed in the fourth quarter financials as reported.

And there, let's see if there's some additional questions coming in. Yes. Then there is questions from Olubit Pizane in Carnegie. Could you comment on the operating momentum so far in the first quarter? [indiscernible] [indiscernible] of we have given a range for what to expect in 2025, and we wouldn't have given that range if we saw a deviating development or expected a deviating development in in Q1. So it's in line with the high single digit gross profit growth. And higher EBITDA growth than gross profit growth.

Yes. And there's a question on M and A. Is there any plan to expand the M and A pipeline or will the existing No. We are shifting targets in the pipeline as we see progress are made or not made, especially if the progress is not made, then so that we can exclude one target that was prioritized and add another one.

So from time to time, there are changes in the pipeline based on the development.

Yes. And then there is a couple of questions from [indiscernible] First one is within your own internal forecast for gross profit growth this year, what are some of the key factors or trends that you're watching, which would either result in you achieving upper end or the lower end of your organic profit growth target? [indiscernible] we are still getting the market is developing positively. There is growth in the market as we see from how sort of the penetration adoption rates are developing. When it comes to RCS, we are bit more prudent there internally when it comes to how fast this will be rolled out and but we are ready and we have the products ready to serve the clients on our side as we're doing in some markets. We also see some traction. In The Nordics, which is basically new to RCS, but we don't have the full reach to deliver RCS. So We believe as Link as the market remains fairly normalized We don't see huge downside to delivering on growth ambitions. But of course, we need to deliver on sales and get the contracts into the P and L. There are some let's see if we have some follow ups now.

Yeah. There's another one from Vinay. One of your competitors reported today with some quite positive commentary on RCS market. Can you give us a sense of what percent of your traffic currently comes from RCS That is fairly limited. It's a it's a small share of the $6,000,000,000 that we're sending Link quarter but it has healthy margins. So it is contributing positive to the gross profit growth. That was the question we had. So far, let's give it some seconds to see if there are some some follow ups. No, I think that's was all the questions. Thank you for listening in. And we'll speak next quarter. Bye bye.