Slide 1: Annual Results & KPIs for April-June Quarter
Text S.A. Annual Results & KPIs for April-June Quarter July 2024
Slide 2: Agenda
AGENDA 1. Introduction 2. FY 2023/24 3. KPIs for Q1 2024/25 c 4. Additional information on the Company 2
Slide 3: Financial results
financial results
Slide 4: Financial Results (PLN mn)
FINANCIAL RESULTS (PLN MN) +13.4% +7.1% +7.3% The Company changed its revenue recognition policy during the year and compares the results to the restated financial data from the previous year 4
Slide 5: Financial Results (PLN mn) in Q4 2023/24
FINANCIAL RESULTS (PLN MN) IN Q4 2023/24 -1.4% -15.7% -15.6% Q4 results impacted by: - PLN 3.0 mn the revaluation of deferred revenues (in the separate statement, these future revenues are converted using the USD/PLN exchange rate at the end of the quarter and charged to the revenues of a given quar
Slide 6: Future Revenues (in PLN m)
FUTURE REVENUES (IN PLN M) As a result of the new revenue recognition policy the annual subscriptions and longer contracts are spread evenly over the time the service is provided, creating the revenues of the future revenues. Presented as liabilities from customer contracts at the end of Q4 2023/24
Slide 7: Earnings per Share
EARNINGS PER SHARE Despite the significant impact of exchange rates on financial results, the Company maintained constant growth also at the level of net profit per share. 7
Slide 8: Revenues by Geographies
REVENUES BY GEOGRAPHIES English-speaking countries continue to generate roughly 50% of the revenues. Poland with 1.4% share in revenues is in TOP15 countries. 8
Slide 9: Cash Position (PLN mn)
CASH POSITION (PLN MN) cash 31.03.2024 The Company generated PLN 84.8 million of cash at the end of the period. The financial activities include paying out an interim dividend in January 2024. 9
Slide 10: Dividend Policy
DIVIDEND POLICY Dividend paid (PLN mn) Dividend per share (PLN) *Management’s proposition (final decision to be made by AGM). The value of the second advance toward dividend may amount to PLN 1.59 per share. The Management Board will propose to the General Meeting to allocate a total of PLN 153.9 mil
Slide 11: Revenue per Product
REVENUE PER PRODUCT Revenues per product 2022/23 2023/24 Change Q4 2022/23 Q4 2023/24 Change (USD mn) * 60.39 73.46 +21.6% 17.56 18.96 +8.0% 3.94 5.29 +34.5% 1.07 1.45 +36.1% ** 1.14 1.95 +71.5% 0.33 0.59 +80.3% *Including: Marketplace **Including KnowledgeBase 11
Slide 12: Revenue Split by Products
REVENUE SPLIT BY PRODUCTS 2023/24 revenue split 2.1% 6.5% 91.1% 0.3% LiveChat revenues includes marketplace. 12
Slide 13: Highlights: Annual Results and Q4 Results
HIGHLIGHTS ● Total revenue was PLN 335.3 million, representing growth of 13.4% adjusting for revenue recognition policy changes ● EBITDA was PLN 198.5 million, representing +9.2% growth yoy Annual Results ● Net operating profit was PLN 179.0 million, representing growth of 7.2% ● Net profit was PLN 16
Slide 14: KPIs
KPIs
Slide 15: MRR of All Products (M USD)
MRR OF ALL PRODUCTS (M USD) Monthly Recurring Revenues at the end of a given month 15
Slide 16: Payments Received (M USD)
PAYMENTS RECEIVED (M USD) As reported in reports on preliminary results The presented data are the estimates and preliminary as published in the respective reports. Therefore, they may ultimately differ from those shown in the periodic financial reports. Because the Company generates the vast majority
Slide 17: KPIs: LiveChat Number of Customers
KPI’s LiveChat (number of customers) June ended with 37.523 LiveChat clients. The net effect on customers (-321 clients net) is also a result of 200 less clients due to the one-time reduction of the reported customers (change of the definition of client to paying and with active access to the applicat
Slide 18: KPIs: ARPU and Initial ARPU of LiveChat
KPI’s ARPU and initial ARPU of LiveChat (in USD) Pricing optimization activities which started in the end of 2023 are continued and translate into a further increases in ARPU, bringing it to USD 170.1 at the end of June. The new One AI+ paid feature introduced in June to customers significantly adds
Slide 19: KPIs: ChatBot Paying Customers
KPI’s ChatBot (number of paying customers) 0 At the end of June the number of ChatBot customers is 2.956, and it is a third consecutive month of growth of new customers. The drop in March-April numbers is the effect of excluding 70 non-profit organizations using the product free of charge in the progr
Slide 20: KPIs: ARPU of ChatBot
KPI’s ARPU of ChatBot (in USD) ChatBot's ARPU increased by over 11.2 USD (8 USD when excluding the effect of non-profit customers) during the quarter to USD 146.2. 20
Slide 21: KPIs: ARPU of ChatBot, Additional Interactions
KPI’s ARPU of ChatBot (in USD) The average payment for additional interactions (above the limit included in the subscription) at the level of USD 52.6 in June, which is more than twofold increase year-on-year. This value is not included in ChatBot MRR and ARPU. If added together, ChatBot ARPU and ad
Slide 22: KPIs: HelpDesk Paying Customers
KPI’s HelpDesk (number of paying customers) Despite the challenging environment, HelpDesk added 32 net customers during the quarter which makes 1.195 paying customers. In the following quarters, we can increase its business potential thanks to the merger with KnowledgeBase and better use of the part
Slide 23: KPIs: ARPU of HelpDesk
KPI’s ARPU of HelpDesk (in USD) Sustainable ARPU growth reflects product development and MRR expansion capacity (negative MRR churn in last two quarters). In June, a new higher subscription plan added. 23
Slide 24: Q1 Events
Q1 events
Slide 25: OpenWidget
OpenWidget - 1000+ customers - First successful migrations from OpenWidget to LiveChat - AI features powered by Chat GPT PA 25
Slide 26: Product Roadmap
PRODUCT ROADMAP - Focus on automation and suite - An ambitious list of features to be released by September 2024 - The roadmap has been made available on text.com and will be updated. PA 26
Slide 27: Monetization of AI Features
MONETIZATION OF AI FEATURES - AI functionalities as a paid package in the LiveChat product from June 2024 for new customers. - AI Assistant ONE continues to be available to all users of this product at no additional PA cost. - Significant impact on Initial ARPU after 2 weeks of effective sales. 27
Slide 28: API as a Service
API AS A SERVICE - API communicated to customers as a premium product since the beginning of the year - Monetization started in Q1 of the current financial year - The value of revenues achieved in the first quarter of monetization is estimated at USD PA 50k+ with significant growth potential related to
Slide 29: Highlights: KPIs and Product
HIGHLIGHTS ● MRR growth of 6.2% compared to the previous quarter and 9.3% year-on-year KPIs ● Payments received amounted to USD 22.62 million (12.2% more than last year) ● Boost to ARPU of all products ● Churn still undermines LiveChat number of customers, HelpDesk and ChatBot add customers in the q
Slide 30: Overview
overview
Slide 31: Vision and Mission for Text.com
VISION AND MISSION FOR TEXT.COM for better customer service We help brands provide better customer service at scale by analyzing enriching, and automating text communication. 31
Slide 32: 10 Years as Publicly Listed Company
10 YEARS AS PUBLICLY LISTED COMPANY Almost 6 times more 7.643 42.548 clients of LiveChat product subscriptions of Text paid products customers USD 6.2m ARR USD 79.9m ARR 12.5 times higher ARR Annual Recurring Revenues Annual Recurring Revenues in April 2014 in April 2024 PLN 0.38 EPS PLN 6.69 EPS 37
Slide 33: Key Facts
KEY FACTS B2B subscription revenue Unique customer Global SaaS business acquisition model Ca 35% of MRR generated in the model Allowing high, US, less than 2% in Poland sustainable margins. Products Co-founders Dividend company Consortium led by With a track record of sharing co-founders is company’
Slide 34: Products and Key Features of Our Services
PRODUCTS Customer service platform Platform to build and Ticketing system for teams A tool for gathering allowing for a contact with launch conversational knowledge and sharing all human agent across all chatbots without coding the answers with channels and customers and within team asynchronously K
Slide 35: Team of 250+
TEAM OF 250+ Meet us at www.livechat.com/team 35
Slide 36: Text History
TEXT HISTORY EBITDA+ GG PRO Positive result for Management LiveChat Software S.A. the first time in history buyout from GG First customers 63% of shares A business version 50% of shares acquired take over by GG of Gadu-Gadu Network S.A. LiveChat Sp. z o.o. by Capital Partners Network S.A communicator
Slide 37: Company's Structure
COMPANY’S STRUCTURE 37
Slide 38: Shareholders
SHAREHOLDERS* * According to the shareholders’ notifications received by the Company, public data from the Polish pension funds’ reports and shareholders’ analysis done by the Company 14
Slide 39: Clients
CLIENTS ~37 800 2900+ 150+ 25+ Companies from Clients of LiveChat Clients of ChatBot Countries Fortune 500’ list 39
Slide 40: Geography (MRR Split)
GEOGRAPHY (MRR SPLIT) MRR as at the end of June 2024 without taking into account revenues that are not allocated to specific countries. In this perspective, Poland accounts for approx. 1.5% of MRR 40
Slide 41: Dictionary
DICTIONARY Software as a Service, is a business model where a software is licensed on a subscription SAAS basis and it is stored in the cloud. Monthly Recurring Revenues, it is a measure of predictable total revenue generated from all MRR active and paying subscriptions in a particular month. It inc
Slide 42: Investor Relations
INVESTOR RELATIONS ir@text.com FIND OUT MORE: investor.text.com OR CHAT WITH US when we are not at the meetings DISCLAIMER This document may include forward-looking statements. Because such statements deal with future events, they are subject to various risks and uncertainties. The Company undertake