Our ambition is to build a platform that's sustainable, profitable, unified across business and brand, and that leverages all the capabilities from our acquired businesses. Once that platform is built, it will unlock great potential for inorganic growth through acquisitions. That could be a late 2024 or 2025 initiative, depending on milestones. When we get there, we’ll be ready to integrate new acquisitions effectively, not just for revenue or free cash flow, but to generate real added value.

14/11/2024 Is a share buyback program being considered due to the recent share price decline?

Not at this time. While we’re aware of short-term stock volatility, our focus remains on fundamentals that drive long-term value, like profitability, growth, and margin expansion, not on short-term stock price movements.

20/12/2024 Does the company have any near-term cash requirements or need for external funding?

Absolutely. We've built a strong platform that’s ready for scale. Our solutions are proven, high-value, and already in use with clients. Now we're focused on organic growth, particularly commercializing these services and expanding into North America and Europe. What we need now is investment in sales teams, pre-sales support, and senior consultants who can win new clients and build trust through initial engagements.

06/03/2025 Is there potential for a capital raise? If so, what would it be used for?

We’re evaluating multiple avenues to fund growth, equity, debt, or restructuring existing liabilities. Right now, we're being cautious with equity raises to protect current shareholders.

That said, our improved balance sheet, better leverage ratio, and growing lender interest open up new financing options. Any capital raised would go toward accelerating organic growth, particularly in commercialization efforts, like sales, marketing, pre-sales, and senior talent.

06/03/2025 Are acquisitions still part of the growth plan?

Not immediately. We’ve been very clear, we’re focusing on mastering organic growth first. However, M&A is in our DNA. We’ve successfully integrated 12 businesses and have a proven integration model.

Once we solidify our organic growth engine, we’ll revisit inorganic opportunities.

27/03/2025 How are operating cash flows being allocated?

Cash flow will be primarily directed toward strengthening our commercial engine, especially in North America and EMEA, to accelerate revenue growth. We’re also investing in staying ahead of data and AI technology trends so we can lead transformation efforts for our clients.

27/03/2025 Do you plan to raise capital in the near future?

No. We are currently cash positive, profitable, and well-positioned financially. There is no immediate need or plan to raise additional capital at this time.

Competitive Advantage

13/08/2024 What makes NowVertical different from competitors?

Unlike many generalist firms, we focus specifically on data analytics and AI, targeting industries and functions where we have deep expertise. This focused approach allows us to deliver differentiated value, like winning contracts against larger incumbents.

13/08/2024 Is your services-based model scalable?

Yes. While we're solutions and services-driven, we've built scalable delivery capabilities, especially in Argentina and India, that allow us to efficiently support growth without needing to increase headcount linearly.

13/08/2024 Do you need to grow headcount by 10% to grow revenue by 10%?

No. Thanks to operational efficiencies and our delivery framework, we don’t need to scale headcount one-to-one with revenue growth. We can drive growth through better utilization and productivity.

13/08/2024 Why is your gross margin higher than bigger competitors?

That’s a good problem to have. One reason is our resold software revenue, which can temporarily boost margins in certain quarters. Overall, we aim to maintain gross margins between 50% and 60%, with a continued focus on improving EBITDA.

14/11/2024 Do you have a sustainable competitive advantage that supports above-market growth and margins?

Absolutely. Our competitive edge lies in our integrated solutions, deep client relationships, and strong delivery capabilities across key markets. We are focused on balancing growth and profitability, ensuring that as we scale, margins remain healthy and sustainable. We aim to maintain EBITDA margins in the 15–20% range, using any surplus to reinvest strategically.

06/03/2025 What advantages does the company have in the U.S. market?

We have a competent team already on the ground that has been working with clients for many years. We’ve also developed specific industry solutions outside the U.S., such as in the UK, that we plan to bring to the U.S. market.

06/03/2025 How will the company differentiate itself in the U.S.?

We are focusing on the technology industry where we already have strong clients and case studies. Some very specific point solutions set us apart from the competition.

06/03/2025 How does a relatively small company like NowVertical secure partnerships with tech giants like Google and AWS?

These partnerships are foundational to our business. Every solution and service we deliver is technology-enabled, so aligning with hyperscalers like Google, Microsoft, AWS, and Snowflake is essential, not just for us, but for our clients as well.

We invest significant time and energy in building these relationships because they directly enable client value and our own growth.

06/03/2025 How do these partnerships help you stand out?

They allow us to develop deep expertise in specific areas of each platform. This specialization makes it clear to partners, clients, and competitors exactly what NowVertical brings to the table.

When clients work with us alongside a major tech provider, they know we can deliver unique outcomes, better than most others, because of our focused, deep capabilities.

06/03/2025 Do these partnerships help differentiate you from competitors?

Absolutely. Even within crowded ecosystems like AWS or Microsoft, we’re able to clearly differentiate ourselves through our niche solutions and deep technical knowledge. That’s how we win mindshare and contracts, even against much larger players.

16/05/2025 How is the Google partnership progressing?

We’re one of only 3% of Google Cloud partners with “Premier” status in data and AI, a major differentiator in a crowded market. This gives us access to Google’s sales team, who trust our delivery capabilities and bring us into key opportunities. In Latin America alone, we received about 60 inbound leads last year from Google’s commercial team. We’re now replicating that success in the UK by building out the right team and capabilities there, supported by our LatAm team.

Operations

12/06/2024 Was the Afinio business unit discontinued?

Yes, the Afinio business unit was dissolved last year. It was part of our broader restructuring efforts to streamline operations and focus on core verticals.

12/06/2024 Will government remain a key vertical going forward?

100%. The government space is active and in need of data analytics and AI solutions. The recent sale of Allegion, which was primarily in the U.S. government space, was because that part wasn’t leveraging those capabilities and was deemed non-core. But we still work with many government clients in Latin America, the UK, and the Middle East, where our work centers on data analytics and AI, which is very much in our core space. We are committed to growing in the public sector.

13/08/2024 How many strategic accounts are you currently managing?

We have 66 strategic accounts in the LatAm market, with 5 added in Q2. In North America and EMEA, we're focusing on around 35 key accounts.

13/08/2024 How important is Argentina as a delivery center?

Very important. It's becoming a major delivery hub alongside India. It allows us to serve both North American and UK clients in similar time zones, which is a competitive advantage. We're doubling down on building out that capability.

13/08/2024 Then how does AI factor into your revenue model?

AI is embedded within our broader solutions and services. When we deliver a solution to a client, AI is just one component. The real value comes from data preparation, transformation, governance, access control, agility, and then layering in AI capabilities.

13/08/2024 How do you attract and retain top talent?

Talent acquisition and retention are key priorities. We’ve built strong frameworks across our business, including a partner delivery model that gives us access to over 1,500 consultants in data and AI. We also leverage our strong presence in Argentina and India, two major delivery hubs, to attract modern tech-savvy talent.

13/08/2024 How many consultants do you currently have on staff?

We have more than 500 internal consultants across North America, EMEA, and LatAm.

14/11/2024 Is the LatAm integration on track?

Yes. The integration in Latin America is progressing well. We’ve completed major restructuring, including exiting non-core assets like A10 Sellers, and have restructured operations in Chile. While we’re about 75–80% through the integration process, the real proof will come when we start showing measurable results in 2025.

14/11/2024 How is interest in your newly combined solutions trending?

We’re starting to see real traction, though we’re staying measured until we have more repeatable metrics. One example: in healthcare, we combined product and service offerings to help a client reduce over $7M in data risk, tangibly demonstrating value. In another case, we won a $750K contract in financial forecasting against a Big 4 firm by leveraging integrated capabilities across the business. These are early wins, but they validate our strategy.

14/11/2024 How much is Core BI benefiting from the new global delivery model?

Argentina already has a mature and strong delivery model across key technologies like data engineering, data science, and Google Cloud. We’re now extending those delivery capabilities into Brazil, the UK, and other parts of Latin America. Commercial teams in those regions are helping drive adoption. While still early, we’re beginning to see cross-regional delivery momentum build.

20/12/2024 How does the sales process work when acquiring new enterprise clients?

There are two main paths. With existing clients, expansion is faster because they already know us. We often get internal referrals and can sign new contracts within four to six weeks.

For net-new clients, the process takes longer, typically three to six months. These clients often want to test our capabilities first with a smaller engagement, usually six to eight weeks and between $50,000 to $100,000. If successful, they may move into a larger project worth up to $250,000 or more. Once we've proven our value, clients tend to deepen the relationship over time, leading to multi-year partnerships, cross-departmental expansion, and introductions to new geographies or technology leaders like CIOs or CTOs.

20/12/2024 What does a typical contract look like? Are they multi-year or shorter-term engagements?

Most of our multi-year contracts are on the 20% of revenue related to software, either our own vertical software or resold solutions. Those are typically two- to three-year agreements.

On the solutions and services side, which makes up the majority of our business, contracts are generally six to twelve months in length and then renewed annually. These align with our clients’ OPEX budgets and often result in multi-year relationships through annual renewals. We refer to this as “recurring revenue,” though not SaaS-based, it’s recurring because we consistently deliver value through these service-based contracts over time.

20/12/2024 How did the NHS relationship develop, and how are you supporting them?

The NHS is a very difficult public sector client to penetrate directly, especially for a smaller company. In this case, we partnered with an organization that was already embedded there.

We provided specific data science capabilities we had developed in the private healthcare sector. One trust was struggling to understand the resource demands associated with different patient conditions, beds, equipment like oxygen cylinders, and external consultants.

They wanted to identify patterns to optimize costs and predict expenses based on patient intake. This required collecting extensive data and building intelligent models to provide actionable insights. It was a collaborative engagement, but it demonstrated our ability to bring advanced analytics to complex public-sector challenges.

20/12/2024 What are the biggest operational challenges right now?

Operations overall are going well, but integration remains a challenge. We’ve grown through acquisitions, so cross-selling between business units is both exciting and complex. We’re focused on building a scalable framework, not just quick fixes, to make integration effective long-term.

Another key challenge is cleaning up the balance sheet. We’ve made significant progress reducing liabilities since I became CEO, including renegotiating deferred acquisition-related obligations. Much of this will be behind us by the end of 2025.

As we improve EBITDA, lenders see us as lower risk, which helps us manage the cost of capital and simplify our debt structure. Growth itself isn't the issue, I’m more focused on ensuring that growth remains mindful, measured, and sustainable as we integrate, stabilize, and scale.

06/03/2025 What’s the strategy behind choosing which platforms to focus on?

While many cloud providers may seem similar at a high level, we dig deep into their capabilities. For example, with Microsoft, we evaluate their AI, data lake, BI, and analytics tools, assessing how they integrate into a client’s existing ecosystem.

By identifying standout capabilities within each platform, we build niche, high-value solutions tailored to those technologies.

27/03/2025 How is hiring and employee retention trending across regions?

Hiring plans are directly aligned with revenue growth strategies. Retention is strong overall, especially in North America and EMEA, where only one person left the company in 2024. In Argentina, attrition is higher due to economic and political conditions, though many employees leave the country rather than the company. We’re implementing measures to improve retention and have built a flexible delivery model between Argentina and India to maintain scalability.

27/03/2025 Is there any notable seasonality in the business?

There is minimal seasonality. Q4 typically sees a slight dip due to holiday shutdowns and code freezes in North America and EMEA. Similarly, Q1 shows lower performance in Latin America due to regional holidays. Other than that, the business doesn’t experience major seasonal swings, except for positive spikes during software renewal periods.

16/04/2025 Who are NowVertical’s target customers?

Our ideal clients are large enterprises, household brands and multinational companies with complex and rapidly evolving data landscapes. They’re primarily based in North America, EMEA, and Latin America.

16/04/2025 Which industries do you serve?

We work with enterprise clients across financial services, healthcare, pharmaceuticals, technology, retail, and e-commerce sectors.

16/05/2025 How is your proprietary software being used, and what’s the strategy going forward?

Our Now Privacy software identifies hidden risks in enterprise data, like PII or credit card info, and now includes mitigation services and ongoing managed monitoring, making it a full enterprise-grade solution. We’ve seen strong engagement, especially as companies prepare for AI-driven data use. While M&A could play a role later, we're currently focused on expanding our own solutions, accelerators, and frameworks, which are proving successful. Future software investments will depend on how the AI landscape evolves.

16/05/2025 How is integration across services and markets progressing?

Integration is tracking very well. We’re successfully cross-pollinating our solutions within and across regions. For example, the Google Cloud partnership strategy built in Latin America is now being replicated in the UK, accelerating growth. Similarly, we’re expanding engagements with major clients across multiple geographies, showing strong traction against our integration KPIs.

Competition

13/08/2024 Which public companies are most comparable to NowVertical?

Our competitive landscape is broad. We compete with large system integrators, consulting arms of global firms, outsourcing partners, and niche service providers. While there’s no perfect comp, third-party research has identified several peer companies. We’re carving out a unique niche focused specifically on data analytics and AI.

06/03/2025 How does the company compete against large consulting firms like the Big Four?

We don't aim to be the lowest cost provider. Our services are high-value, niche, and tech-enabled, built on modern platforms like Google, Microsoft, AWS, Snowflake, and others. We regularly compete with the Big Four at the enterprise level, and we win often.

06/03/2025 Can you give an example of winning against larger competitors?

In the past six months alone, we've won three major projects against large consulting firms. Clients choose us not based on price, but because of our unique approach, frameworks, accelerators, proven case studies, and our ability to deeply understand and speak the language of their industry.

06/03/2025 If you could eliminate one competitor, who would it be?

I actually don’t look at competition that way. Competition is healthy, it pushes us to improve and evolve. We’ve learned a lot from our competitors over the years.

06/03/2025 How do you coexist with big competitors at enterprise clients?

Very often, we share clients with them. At the enterprise level, clients typically work with multiple vendors. We’ve worked side-by-side with the Big Four, taken over projects from them, and even displaced them at times.

The key is knowing how to coexist in a complex ecosystem while still delivering differentiated value.

06/03/2025 Is competition good for your business?

Definitely. Having strong competition keeps us sharp. It challenges us to stay specialized, deliver results, and maintain trust with both clients and partners.

We see competition not as a threat, but as part of our own growth story, when managed well, it makes us better.

27/03/2025 How does global AI competition, especially from China, affect your business?

We don’t see it as a threat. In fact, we benefit from global AI advancements. We don’t build large language models ourselves but instead tailor them for clients based on their data and objectives. As AI evolves anywhere in the world, demand for our services increases. This creates more opportunity, not risk.

Growth

12/06/2024 How is growth from key accounts evolving during the integration process?

100%.

12/06/2024 How is growth from key accounts being measured?

This is going to be one of the key metrics of growth, how we measure ourselves. We’ll go deeper into this during our integration strategy webinar, which we hope to host by the end of June. There, we’ll showcase our portfolio of strategic accounts, the revenue they’ve delivered in 2023, the strategies we’re putting in place, the growth team assigned, and how we're enabling expansion within these accounts.

12/06/2024 Is growth still expected in 2024 despite current challenges?

Yes, 100%. The management team has clear growth metrics in place for 2024. Even with all the changes happening now, everyone is stepping up and focused on executing the integration strategy.

13/08/2024 Can you give context around the 2% organic revenue growth?

A lot of that growth is coming from how we're approaching new deals and positioning our solutions. We've reshaped our client engagement model, which has shifted the mindset of our teams and given clients clearer visibility into how NowVertical can support them.

13/08/2024 How are you driving growth from strategic accounts?

Our focus is to grow revenue from these accounts through cross-selling. We’ve built a strong catalog of high-value solutions and services that our clients are looking for, and we’re equipping our teams with those tools to drive more cross-sell revenue.

13/08/2024 Is this cross-sell capability now in place?

Yes, we're building the foundation and putting the right capabilities in place. This is the beginning of a long-term measurement strategy, and we’ll continue tracking progress over time.

13/08/2024 Has internal change contributed to revenue growth?

Definitely. Previously, we may have brought only one small part of a solution to a client. Now, we're bringing the full suite, joining our services and products together to deliver end-to-end value across key life cycles like data or customer journeys.

13/08/2024 What’s driving strength in the core BI business?

We’ve done extensive work in this area. Argentina, for example, accounts for nearly a third of our revenue. One of our key strengths is strong service delivery capabilities, enabled by hyperscalers like Google, Microsoft Azure, and AWS. We’re able to move quickly with proof-of-concepts and minimal viable products, and we can scale those services across many clients.

13/08/2024 Why did AcroTend and other segments decline YoY in early 2024?

I’m not overly concerned about the drop in Q1 and part of Q2. If you look at Q2 results, things are already improving. In North America and EMEA, we've rebounded in both revenue and profitability. Q1 was lighter due to some client budget shifts that pulled revenue into Q4 of 2023.

13/08/2024 Will these segments return to growth in 2024?

Yes, based on the pipeline we currently have, I expect we’ll be able to demonstrate growth in these units. Our focus remains shifting from a business unit mindset to a more integrated NowVertical and markets-based approach, which is already delivering better alignment.

13/08/2024 What is the long-term organic growth target?

We believe we can achieve double-digit top-line growth given the market we're in. At the same time, we aim to continuously improve the bottom line. Right now, we're restructuring and preparing the business to support that level of sustainable growth.

13/08/2024 Is 10% to 15% annual growth a realistic target?

That kind of growth is absolutely achievable. We've invested heavily in structuring the business correctly, refining our solutions catalog, and aligning our go-to-market strategy. These are all steps in the right direction. We’re not quite ready to issue formal guidance yet, but we’re laying the right foundation to do so.

13/08/2024 Are there any challenges to revenue growth outside of LatAm?

Not really. North America and EMEA, especially the U.S. and U.K., are strong growth markets for us. There's a lot of demand for our innovative solutions and technology capabilities that can transform business models. We expect to see explosive growth in these regions in future quarters.

13/08/2024 How prepared is the company for that growth outside LatAm?

We're actively restructuring NowVertical to operate as a scalable platform that can support rapid expansion. It’s all about laying the right foundation now so we can capture that growth when it accelerates.

20/12/2024 How sustainable is your recent growth rate? Can you maintain or accelerate it?

Our first priority is making sure the business is sustainable and consistent so shareholders can have confidence in our growth. That said, we’re already working to accelerate organic revenue growth through commercialization of our existing solutions, especially in 2025.

This business has tremendous headroom. We're embedding AI into high-value solutions and expanding across multiple geographies, North America, Latin America, and EMEA. If we invest correctly, becoming a $100 million business in two years is absolutely possible. A $150 million to $250 million market cap company in three years? Also within reach. The key is balancing growth with sustainability, we don’t want explosive short-term growth at the cost of long-term stability.

06/03/2025 What’s the strategy for growth in the U.S.?

The U.S. is one of our key markets and growth opportunities. Our market share there is currently very low to almost non-existent for the size of our business, so the opportunity is massive. We are definitely looking to expand in the U.S.

06/03/2025 What needs to change to drive growth in the U.S.?

We need to build up or boost our commercial capabilities in the U.S., that’s one of the primary things we’ll be adding to the business to enable that growth.

06/03/2025 Is expansion in the U.S. a priority?

Absolutely. It's one of our target growth markets, and you'll be hearing more about our progress there.

06/03/2025 How much have strategic accounts grown?

We grew revenue from existing strategic accounts by more than 20% in 2024. We now have over 100 strategic accounts globally, this is a major strength and a key asset of the company.

06/03/2025 Is there potential for cross-selling within strategic accounts?

Absolutely. One of the main reasons behind our integration strategy is to enable cross-selling and upselling across the business. It's already happening.

06/03/2025 Can you share an example of successful cross-selling?

One client in the U.S., originally served only by our U.S. team, is now being supported from Argentina, the UK, and India as well. The scope of work has expanded globally, and different parts of our business are now collaborating on that single account.

06/03/2025 Will cross-selling continue to drive growth?

Yes, it's one of our key growth drivers going forward. As we deepen relationships with strategic clients, we’re able to bring in capabilities from across the globe, expanding both the value we provide and our revenue per client.

06/03/2025 Is there still significant growth potential in revenue?

Absolutely. The growth potential is substantial, and what's more, it's profitable, high-margin growth. We’re not just chasing volume; we're focused on value.

06/03/2025 Where are the main growth drivers coming from?

First, our strategic accounts. We have over 100 strategic accounts globally, and our top 30 clients generate 60% of our revenue. The average revenue per client in that group reached $700,000 in 2024. With expansion opportunities, we see clear paths to increase that to $1 million or more per client.

06/03/2025 Are there other key drivers beyond account expansion?

Yes, our technology partnerships. We’re leveraging deep relationships with companies like Google (where we’re a Premier Partner), Microsoft, AWS, Snowflake, and Qlik. These partnerships give us credibility, co-selling opportunities, and new routes to market.

06/03/2025 Can you share an example of how these partnerships drive revenue?

In the UK, we’re working closely with Google on a joint business plan to unlock more opportunities. And because of our strong track record with them, we’re replicating that model with other partners like Microsoft and Snowflake.

06/03/2025 How about your own software offerings?

We’re evolving from simply licensing our software to offering full end-to-end solutions. For example, Now Privacy was once a standalone product, we now offer it as a comprehensive solution that identifies and remediates data risks for clients, creating ongoing value and recurring revenue.

06/03/2025 What’s the benefit of this approach?

It embeds us deeper into the client’s operations, increases client stickiness, and opens up more cross-sell opportunities. This kind of solution drives sustainable, high-margin growth.

06/03/2025 So overall, what’s the outlook for revenue growth?

Extremely positive. Between strategic account expansion, tech partnerships, and solutionizing our offerings, we have multiple levers driving healthy, profitable growth.

16/04/2025 What’s the long-term growth potential for NowVertical?

Beyond these targets, we see significant potential. We believe we can sustainably achieve 15% to 25% annual organic growth. Once the current foundation is solidified, we’ll also explore strategic inorganic growth through acquisitions that bring new solutions, tech-enabled services, or industry-specific client bases.

27/03/2025 What’s driving revenue growth outside of core markets?

Our business is now fully integrated across regions, and each market is largely self-sufficient in driving organic growth. We support this with cross-selling and upselling efforts. Growth is coming from several key areas: the U.S., UK, Brazil, Argentina, and other emerging markets in Latin America. We’re also exploring opportunities in the Middle East.

27/03/2025 What’s driving growth in Argentina?

The significant growth in Argentina is largely due to currency devaluation in late 2023, which stabilized the economic environment. This led to higher contract values as inflation increased, and we have pricing structures in place that adjust with inflation. The stabilization has benefited our business and improved client engagement.

16/05/2025 What’s driving growth in the UK?

The UK is a mature market where we already had many enterprise clients. With our leadership team based there, it was natural to focus more on the region. We’ve been expanding tech-enabled solutions and services to existing clients and growing net new business. Additionally, we increased $1M+ accounts from 3 in 2023 to 8 in 2024, five of which came from North America and EMEA.

16/05/2025 Are you investing in sales or service capabilities?

Yes, building a strong commercial engine, especially in North America and EMEA, is critical for sustainable growth. We’re already investing in sales, account management, and service capabilities and will continue to scale them. More updates will come next quarter.

16/05/2025 What’s driving increased client spending in strategic accounts?

Our growth in strategic accounts comes from offering a broader suite of integrated solutions. As an enterprise client works with us over time, our average relationship is six-plus years, we expand beyond initial engagements (e.g., marketing) into other functions like sales, customer service, and finance by leveraging foundational data and AI work. We also offer managed services to run ongoing data and AI operations, which adds recurring value. Plus, our partnerships with tech vendors and proprietary tools are embedded into our offerings, creating deeper client dependency and long-term value.

16/05/2025 What’s the growth trend in the top 30 client accounts?

In 2023, growth in our top 30 clients was less than 3%. In 2024, that growth accelerated to nearly 20% year-over-year. Specifically, we saw a 56% year-over-year revenue increase in Q1 among those accounts. This validates our focus on strategic accounts and gives us confidence in the sustainability of this growth.

16/05/2025 Is there upside potential in the U.S. market?

Yes, the U.S. is a high-potential market for our sophisticated data and AI solutions. We’re approaching growth methodically, “crawling before walking”, to ensure our business transformation supports sustainable expansion. The U.S. remains a key target for both organic and inorganic growth opportunities.

14/11/2024 Is the company focused solely on organic growth for now?

Yes. Our immediate focus is entirely on driving sustainable organic growth and improving margins. There are no plans for acquisitions at this time, as we want to avoid distractions and maintain momentum. M&A will be revisited later with a new, more strategic approach.

Financials

12/06/2024 What caused the large inflation impact on the income statement this quarter?

The main driver was Argentina. Inflation there jumped sharply this quarter, from around 3,500 to 5,300 index points. While this significantly increased the inflation adjustment, it had a neutral effect overall since both revenues and expenses are adjusted at the same rate.

12/06/2024 Why was the foreign currency translation adjustment so high?

The increase is due to our recent global acquisitions, like A10, Acrotrend, and SmartLytics, that operate in non-USD currencies such as Chilean peso, Brazilian real, and Indian rupee. With more intercompany transactions and cross-border activity, currency fluctuations against the USD have had a larger impact.

12/06/2024 Why were revenues lower than expected for Acrotrend, Afinio, and other segments?

Some of the decline reflects seasonality and timing shifts in client budget cycles. For example, last year we saw a spike in Q4 when some clients accelerated spending into that quarter, which led to a lighter Q1 this year. These fluctuations are normal and don’t reflect long-term trends.

12/06/2024 What is the current global cash position?

As of yesterday, we had about $6.1 million in cash available globally. This is a direct result from the Allegiance sale.

12/06/2024 What is the timeline for generating positive free cash flow?

Generating positive free cash flow is our ambition, everyone is working toward it. Every step we’re taking in this integration strategy, which is driven by sustainability and profitability, is moving us in that direction. We took a lot of steps in Q1, will see more in Q2, and will continue relentlessly after that. If we can achieve positive free cash flow by the end of Q3 or Q4, that would be fantastic.

12/06/2024 Can you explain the drop in sales and profitability in some business units like core BI?

There may have been some seasonality affecting Q1, but we're tracking sales numbers every week, even every day, and the team is working relentlessly to make sure we stay on track. Although it's a transition year with a lot of change, we're confident that any shifts seen in Q1 will be compensated for in the rest of the year.

13/08/2024 What percentage of revenue comes from strategic accounts?

Strategic accounts contribute roughly 70% of our overall revenue. The proportion varies slightly by market, but that’s the general breakdown.

13/08/2024 Are you deferring liabilities to 2026 and beyond?

We’re evaluating any opportunities to defer liabilities from 2024 and 2025. However, for liabilities tied to past acquisitions, we’re committed to fulfilling them on time and in full, as it’s the right thing to do.

13/08/2024 What about Afinio’s $2.2 million in collections, secured or contingent?

That amount is secured. It's part of a structured deferred payment schedule.

13/08/2024 Could deferring liabilities lead to issuing more shares?

Actually, AcroTrend sellers, including myself, have already invested equity into the business, converting a significant portion of cash liabilities into equity. Many of those shares were purchased at a premium compared to market value at the time.

13/08/2024 What percentage of revenue is AI software-related?

AI software by itself isn’t a major part of our revenue. We no longer position ourselves as a pure software or AI software business.

13/08/2024 Can gross margins continue to improve?

Yes. We’re committed to maintaining and growing gross margins through better pricing, service mix optimization, and operational efficiency. There may be some quarter-to-quarter variation due to seasonality or software sales timing.

14/11/2024 What’s the update on earnout payments from past acquisitions?

All existing earnout liabilities have been renegotiated and finalized. We’ve removed any uncertainty, what remains are fixed obligations with clear timelines. No further revaluations or surprises are expected.

14/11/2024 Will the company receive the $4M earnout from the sale of Allegiant?

Yes, the probability is very high. The business is performing well post-sale, and we have tracking mechanisms in place. We are confident the full earnout will be achieved, though we’ll continue to monitor progress.

14/11/2024 How is working capital being managed?

Working capital needs are well supported by operating cash flow. Since management took over, we’ve improved efficiency, reduced non-essential costs, and integrated operations to strengthen financial stability. Our strategy ensures we can fund growth organically without needing external financing.

06/03/2025 Are margins higher for strategic accounts?

Yes, definitely. Strategic accounts deliver higher margins, and they're a key growth driver for us. Since I became CEO, we've focused heavily on growing this part of the business.

06/03/2025 Are there meaningful margin differences across geographies?

We aim to maintain a consistent 50% gross margin across all accounts and geographies, which we’ve largely achieved. Margins can be higher when we're selling our own software or niche point solutions, especially those powered by modern tech like AI, automation, and advanced data analytics.

06/03/2025 What about lower-margin work?

There are some run-of-the-mill tech services with slightly lower margins, but even there, our focus on cutting-edge technology helps us maintain high overall margins across the business.

06/03/2025 What percentage of revenue comes from Argentina?

Approximately 30% of our total revenue is generated from operations in Argentina.

06/03/2025 And how much of that revenue comes from local Argentine clients?

About 70 to 80% of the revenue from Argentina comes from local clients. The remaining 20 to 30% supports international clients, mainly in the U.S., Mexico, and Chile.

06/03/2025 Why were payments to Affinio sellers deferred?

We wanted to free up cash to fuel organic growth. As part of our financial re-engineering, we discussed the situation openly with the Affinio sellers, who are also supportive shareholders, and they kindly agreed to defer their payment from mid-2025 to the end of the year.

This gave us more operational flexibility without compromising stakeholder relationships.

06/03/2025 Did you defer other payments as well?

Yes. Similar deferrals were made with other stakeholders, including Core VI and AcroTrend. These actions were all part of a broader effort to restructure our balance sheet and improve cash flow for growth initiatives.

06/03/2025 How are you managing debt maturities in 2025

There are three main components: acquisition-related liabilities, bank debt, and the convertible loan due in October 2025.

We’ve already significantly reduced the acquisition-related liabilities and are comfortably servicing them through operations. Our profitability and cash flow give us confidence in handling the bank debt as well.

06/03/2025 What’s the plan for the convertible loan?

We’re actively working on several options. One is that the loan converts at $5 per share if the stock reaches that level, we believe the company is currently undervalued.

Another possibility is renegotiating the terms with current investors, who have been supportive and understand the business turnaround. A third option is replacing the loan with new financing, especially now that our leverage ratio has improved significantly.

06/03/2025 What does the company expect to pay in earn-out payments for AcroTrend and other acquisitions?

All earn-out obligations have already been paid out. We actually converted all variable earn-outs into fixed amounts to bring clarity and certainty to the business. There are no remaining earn-out payments to be made.

We’ve also significantly reduced acquisition-related liabilities, and what remains will be fully covered by cash flow from operations in 2025.

27/03/2025 Will administrative costs remain stable in 2025?

Yes. The reductions we’ve made to admin costs are permanent and not tied to temporary cuts. We don’t expect major fluctuations moving forward, which supports consistent financial performance.

27/03/2025 What is the breakdown of SaaS revenue versus solutions and services?

Approximately 80% of our revenue comes from solutions and services, while 20% comes from software, both proprietary (like Now Privacy) and resold industry-standard tools. The software portion is fully recurring by nature. There’s also a high degree of recurring revenue in solutions and services due to long-term managed services contracts and multiyear transformation programs we're embedded in.

27/03/2025 What acquisition-related liabilities remain, and how will they be handled?

Most acquisition liabilities will be settled by the end of 2025. We are actively working on managing these obligations, including a convertible loan due in October 2025. With our improved financial position, we have multiple options available and are already evaluating strategies to address them.

16/04/2025 Can you tell us about your client concentration and average revenue per client?

Our top 30 accounts generate 60% of our revenue. In 2024, the average revenue from those clients reached $724,000. There’s strong potential to grow that to $1 million or more per client.

16/05/2025 Why have unbilled receivables increased recently?

The increase is tied to reseller subscription revenue. Under IFRS accounting rules, we recognize 100% of subscription revenue upon delivery, even if billing occurs over time. So, when we close large or multiyear contracts, unbilled receivables spike because the revenue is recognized upfront but billed gradually. This is expected and reflects strong contract performance, especially with more multiyear deals being signed starting in 2024.

16/05/2025 What explains the recent adjustment to earn-out obligations?

The nearly $600K adjustment relates to a previously settled earn-out from the AcreTrend acquisition. The earn-out was fixed at $750K and tied to employment through 2025. As part of a settlement in 2024, this obligation was converted into shares. The adjustment reflects the noncash settlement of that liability, and it won’t recur going forward.

16/05/2025 Should we expect future volatility from earn-outs or contingent payments?

No. With this most recent adjustment, we’ve largely closed out past earn-out obligations. We don’t anticipate further revaluations or significant volatility related to prior acquisitions. Settling the obligation in shares instead of cash also reduces future financial risk.

Outlook and Guidance

14/11/2024 How scalable is the business, and can 20% EBITDA be a floor going forward?

The business is highly scalable. With over 100 strategic accounts and significant headroom for upselling and cross-selling, we see massive growth potential. Many of our clients currently spend under $100K with us but resemble our top-tier $700K+ clients. Raising their spending alone represents substantial upside. Combined with expansion in the U.S., UK, and emerging LatAm markets, we believe a 20% EBITDA margin can serve as a solid baseline.

14/11/2024 What’s your outlook on organic and inorganic growth?

Organic growth is already accelerating and will continue to be our focus. Once we prove consistent performance and margin stability, inorganic growth will naturally follow. M&A will be an enabler, not a necessity, and will help us take the next step in value creation once the timing is right.

14/11/2024 What does revenue momentum look like going forward?

During our transformation, our focus was on profitability, which we’ve achieved. But we’ve also seen organic revenue growth begin to accelerate. Now that the foundation is in place, we expect to see stronger revenue performance in the coming quarters. In 2025, we’ll be able to demonstrate meaningful top-line growth driven by integration and market expansion.

06/03/2025 So overall, what’s the outlook for 2025?

Very positive. By the time we exit 2025, we expect to be free of both acquisition-related liabilities and the convertible loan. That positions us entering 2026 as a leaner, stronger business, profitable, cash-generative, and ready to accelerate growth.

06/03/2025 What are your growth expectations for 2025? Can investors expect double-digit organic growth?

Yes. In 2024, we delivered 27% organic growth in just three quarters, despite not raising any capital and undergoing a major transformation. Strategic accounts alone grew over 20%.

We’re already seeing strong momentum heading into 2025. While we aren’t issuing formal guidance yet, we're focused on delivering consistent results and building shareholder confidence before doing so.

06/03/2025 Are you confident in hitting the near-term targets of $50M revenue run rate and$10M EBITDA run rate by 2025?

100%. Our Q4 and upcoming Q1 results will reflect the strength of the business. The management team has full visibility across operations, we've traveled globally, met teams, and executed the strategy together. These targets are absolutely achievable.

27/03/2025 Are you expecting EBITDA margins to stay within the 15–20% range going forward?

Yes. Our focus is on making the business financially sustainable while maintaining best-in-class performance. We’ve already proven the business can deliver healthy profits, and we’ll reinvest any surplus strategically. This approach ensures we maintain strong margins without compromising growth.

16/04/2025 What are the company’s key goals for 2025?

Our near-term objectives are to reach a $50 million U.S. revenue run rate and a $10 million U.S. EBITDA run rate. As of Q4 2024, we already hit the $10 million EBITDA run rate, and we're well on track to hit the $50 million revenue goal in 2025.

Risks and Macro

06/03/2025 How might rising tariffs and hardware costs affect discretionary IT spending in North America and Latam?

We’ve done a thorough review of our client base, and none of our clients are currently impacted by import-related tariffs or hardware cost increases. Importantly, we don’t serve any clients that rely heavily on imported hardware.

Also, we operate across multiple industries, financial services, healthcare, pharma, tech, retail, e-commerce, and public sector, which gives us a diversified revenue base and reduces exposure to any one macroeconomic risk.

27/03/2025 Are you or your clients impacted by recent tariffs?

No. None of our clients operate in industries affected by tariffs, such as electronics manufacturing or import/export. Therefore, there has been no impact on our business or our clients’ operations.

Other

12/06/2024 What’s the leadership team’s mindset heading into this transition phase?

The leadership team is very excited about the growth potential. People are being properly invested in, incentives are being aligned with long-term value creation, and there's a lot of energy and enthusiasm across the board. We're grateful for the support from investors, and those positive messages are energizing us as we lead through this transformation.

13/08/2024 What are the key highlights for investors right now?

We’re sharpening our focus on data analytics and AI, improving margins and EBITDA, reducing liabilities, and strengthening operations. Most importantly, we're aligning our go-to-market strategy to stay relevant to our clients' future roadmaps and growth plans.

14/11/2024 What’s the plan to attract new investors?

Communication is improving significantly. We’ve launched webinars, press releases, and direct engagement efforts to better showcase the business transformation. 2025 will include even stronger outreach to build investor confidence and awareness.

14/11/2024 Are there plans to extend Darren’s share lockup?

We are in regular communication with Darren and keeping him informed of progress. While no decision has been made, we believe he remains supportive of the company’s direction. Any future discussions about lockups will depend on how the business continues to evolve.

20/12/2024 Can you provide a breakdown of insider ownership and major shareholders?

The current management team and active stakeholders own about 20%. Our founder and former CEO of NowVertical, who is no longer active in the business, owns around 30%. Together, that accounts for roughly 50% of the shares. The remaining shares are publicly traded, with some consolidation among retail investors.

20/12/2024 What are the key metrics or catalysts investors should watch to gauge progress?

There are two core KPIs we're running the business on, and everyone is incentivized around them.

First, revenue growth within our strategic accounts . We have just over 100 of them, and there's significant headroom to grow within these accounts. Demonstrating consistent expansion there is critical.

Second, cross-selling success across the business . If we've successfully sold a solution in one geography or industry, we want to replicate that in others. That’s how we unlock scalable growth.

These are the two main metrics that signal we're executing well and moving in the right direction.

20/12/2024 Is there anything important you’d like to emphasize or any final message for investors?

I want to leave investors with this perspective: yes, we may be a micro-cap business today, soon to be a $50 million revenue company, but the strengths and assets we have are some of the best I've seen in the industry.

We've already proven our ability to deliver high-value solutions at scale. If we can do it successfully with three clients, why not 30 or 50? We already have more than seven clients generating over $1 million in annual revenue.

There's a strong culture forming around execution, delivery, and growth. And from an investment standpoint, we're trading at very low multiples. Plus, we haven’t been visible enough in the market, we’re an underloved company and stock.

But that’s starting to change. Since our recent product results release, we've begun getting more attention. This is really just the beginning. There's still a lot of runway ahead.

06/03/2025 Why did NowVertical part ways with its IR firm?

It wasn’t due to any issues, we had a good relationship with the firm. The decision was strategic. As a global business with an increasingly international investor base, we’re now seeking an IR partner with stronger global reach and experience.

We want to better align our investor relations strategy with our global growth story and expanding audience.

06/03/2025 Is the company intentionally promoting bullish sentiment around the stock price? Could that backfire?

I’m bullish about the fundamentals of the business, the team, the assets, the technology, the client success stories, and our positioning for future growth.

I don't comment directly on the stock price. But if we execute on our organic growth plan, deliver consistent results, and build a strong, sustainable business, then positive investor sentiment should naturally follow.

Our management team owns 27% of the company, up from 7% in early 2024. That shows our deep confidence in the long-term value of NowVertical.

06/03/2025 Final thoughts on investor communications?

Our focus is on building a healthy, high-growth business. If we do that well, the stock will reflect it over time. We’re not chasing short-term hype, we’re unlocking real, lasting value.

27/03/2025 Is there any consideration of uplisting to Nasdaq?

There are no active plans or conversations around a Nasdaq uplisting at the moment. Our current focus is on maximizing our visibility and credibility on TSXV. That said, we’ve had preliminary discussions in the past and will consider it when the timing and scale make sense.

16/04/2025 When did NowVertical go public, and what was the original strategy?

NowVertical went public in July 2021. The initial strategy was to gain critical mass in the data analytics space through acquisitions, specifically, building a portfolio of companies offering services, solutions, and software in AI and data analytics.

16/04/2025 How many acquisitions were made during phase one?

We completed about 12 acquisitions during phase one. These were high-quality businesses delivering services, solutions, and some software products to clients globally in the data analytics and AI space.

16/04/2025 What is phase two of the company’s strategy?

Phase two focuses on consolidation and integration under a “one business, one brand” strategy. This includes driving organic growth, profitability, and achieving best-in-class metrics across performance indicators.

Personal Questions to Sandeep

06/03/2025 Can you briefly share what your childhood was like and what shaped who you are today?

I grew up near the geographic center of India, in a family that wasn’t wealthy in money, but very rich in values, culture, and emotional support. My parents instilled ambition and purpose in me from a young age.

I’m the oldest in a large family, now ten members, and I’ve always had strong family support, which has given me the emotional foundation to navigate both life and business through ups and downs.

06/03/2025 What about your education and early career?

I studied chemical engineering in India, but soon realized it wasn’t for me. A close friend encouraged me to switch to IT, which I did. I worked with firms like Deloitte in India and the U.S., and later started my own company.

My journey was shaped not just by formal education, but by people, mentors, friends, and colleagues, who played a big role in shaping my mindset and approach.

06/03/2025 Who’s had the biggest impact on your professional development?

David Inns, my long-time business coach and mentor. He helped me build the mindset of a true businessman, how to think about cash flow, financial KPIs, client growth, team building, and long-term value creation.

He’s been instrumental in helping me grow personally and professionally over the last 13–14 years.

06/03/2025 How do you manage leading a Canadian public company from London, across multiple time zones?

I’ve worked in global teams for over 25 years, so managing across time zones comes naturally to me now. I also travel frequently to Canada and am supported by a very strong management team.

Running a global operation is exciting, it brings together diverse perspectives and capabilities. And no, I don’t sleep only one hour a day! (Laughs.) I’m very fortunate to have a great team that makes this all work smoothly.

06/03/2025 As a founder-turned-CEO of a larger organization, what mistakes have you made along the way?

Many! (Laughs.) I can talk all day about them. Some key ones include:

Trying to “fly” before learning how to walk, overreaching strategically.
Underestimating the importance of understanding financial KPIs, especially coming from a non-finance background.
Focusing too much on short-term gains instead of long-term relationships and partnerships.
Believing we could pivot overnight from services to products or software without proper focus or structure.
Taking on too many opportunities at once, without creating enough depth or differentiation.

06/03/2025 What lessons have you taken from those mistakes?

Focus is critical. You can't be everything to everyone. Creating a niche, building deep expertise, and having a clear USP are essential.

I’ve learned how to hire better, structure teams effectively, and lead with empathy. Most importantly, I’ve learned that mistakes are part of the journey, and as long as you learn from them, they become valuable stepping stones.

06/03/2025 Any final thoughts on leadership and personal growth?

Absolutely. Everyone should have mentors and coaches, it makes life more fulfilling and your leadership more effective. I still work with David Inns regularly.

The journey of growth never ends. The more self-aware you become, the better leader you are. And the stronger your support system, both professionally and personally, the more resilient you are when things get tough.

06/03/2025 What’s it like being CEO of a public company going through a turnaround?

It’s incredibly exciting. I love challenges, and when I saw what NowVertical was up against a year ago, I knew this was my kind of challenge.

We came in with a poor balance sheet, no capital, and a lot of integration work to do across 12 acquisitions. It sounded almost impossible at first, but with the right mindset, experience, and team, we’ve turned things around.

This is my sweet spot, driving growth through transformation. And I’ve personally invested a lot into the business because I believe in what we’re building here.

06/03/2025 How often do you check the stock price?

Honestly, I used to only check it two or three times a week before our Q3 results, mostly because it wasn’t doing much! But after the positive momentum post-Q3, I now check it twice a day: at market open and close.

That said, I stay focused on fundamentals, not daily fluctuations. Our job is to build long-term value, and that’s exactly what we’re doing.

06/03/2025 What’s your 10-year vision, for yourself and for NowVertical?

Ten years is a long time, but if I’m still with NowVertical, whether as CEO or on the board, I see it becoming a truly massive, impactful business.

I also want to give back. Whether it’s mentoring tech entrepreneurs, helping management teams through transformation, or supporting underserved communities, I want to use my experience to help others the way I was helped.

On a personal note, I hope to be a granddad by then, spending more time with family, traveling to Spain (where I already have a place in Malaga), and enjoying life beyond the boardroom.

16/04/2025 When did you join NowVertical as CEO?

I joined as CEO in January 2024, after being part of the acquisition strategy in early 2023 when my former company, Acrotrend, was acquired by NowVertical.

Sources

Eanings Transcripts

ValueHunt Podcast

Smallcap Discoveries

Planet MicroCap

Disclaimer:

The following transcript and Q&A have been generated with the assistance of Artificial Intelligence (AI). While we strive for accuracy, completeness, and clarity, the content may contain errors, inaccuracies, or misinterpretations. Neither the company featured in this document nor ValueBridge assumes any responsibility or liability for the accuracy, reliability, or completeness of the information presented.

This material is for informational purposes only and should not be construed as official company communication, financial advice, or a definitive representation of the company's views. Readers should independently verify any information before making decisions based on it.

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