Slide 1: Webinar will be held by Text IR Team
Webinar will be held by Text IR Team 11:00 AM CEST - Polish 2:00 PM CEST - English October 2024
Slide 2: Disclaimer
Disclaimer: The presentation was created internally by TEXT S.A. (Company) Data contained in this presentation is valid as of the date of its preparation. Consequently, this presentation will not be subject to changes, updates, or modifications to account for events that might occur after this date.
Slide 3: Text S.A. Q2 2024/25 - Financial Results
Text S.A. Q2 2024/25 - Financial Results October 3, 2024
Slide 4: KPIs
KPIs
Slide 5: 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 6: MRR of All Products (M USD)
MRR OF ALL PRODUCTS (M USD) Monthly Recurring Revenues at the end of a given month 6
Slide 7: KPIs: LiveChat Number of Customers
KPI’s LiveChat (number of customers) The drop of over 1 thousand customers in the quarter is due to: - persistently higher customer churn (especially in the Asian region) - safeguarding the product against returning customers abusing license terms - introduction of unsuccessful changes to the onboar
Slide 8: KPIs: ARPL and Initial ARPL of LiveChat
KPI’s ARPL and initial ARPL of LiveChat (in USD) During the quarter, LiveChat’s ARPL (ARPU) increased by 1.9%, which is the result of both continued customer base optimization and successful upselling activities. ARPL (average revenue per license), synonymous to the earlier used term ARPU Initial Sa
Slide 9: KPIs: ChatBot Number of Paying Customers
KPI’s ChatBot (number of paying customers) 0 ChatBot's new language model was made available to new customers in early September, which resulted in significantly better user experience and improved conversion rate. As a result, ChatBot added 71 net customers in September. The new model was released t
Slide 10: KPIs: ARPL of ChatBot
KPI’s ARPL of ChatBot (in USD) During the quarter, ChatBot ARPL (ARPU) grew by a modest 1.3%. The decline in Initial ARPU reflects a promotion under which a customer who makes a card payment within the first three days of the trial period will pay USD 1 for the first month. 10
Slide 11: KPIs: ARPL of ChatBot (Additional Interactions)
KPI’s ARPL of ChatBot (in USD) The average payment for additional interactions (above the limit included in the subscription) at the level of USD 32.7 in September. This value is not included in ChatBot MRR and ARPL. 11
Slide 12: KPIs: HelpDesk Number of Paying Customers
KPI’s HelpDesk (number of paying customers) HelpDesk added 29 net clients during the difficult holiday quarter, successfully continuing the positive trend of increasing ARPL (ARPU). 12
Slide 13: KPIs: ARPL of HelpDesk
KPI’s ARPL of HelpDesk (in USD) HelpDesk ARPL (ARPU) increased by over 11% during the quarter, reflecting product development and excellent revenue retention of the product. 13
Slide 14: Highlights Q2 KPIs
HIGHLIGHTS - Payments received grew by 14.9% y/y to a record USD 22.84 mn - MRR grew by 8.8% y/y to USD 7.04 mn and declined by 0.4% during a quarter as growth of ARPL offset loss in number of customers. - Number of LiveChat customers fell by over 1k over the quarter as a result of high churn (especi
Slide 15: Context 2024
CONTEXT 2024 Q2 KPIs 15
Slide 16: Q3 Product Releases
Q3 PRODUCT RELEASES Unification of the user experience for all products ● Upgraded chat widget interactions ● Chat widget WCAG 2.2 ● Central team and company profile management ● Common user interface across products ● Common snippet code and widget ● Message box autosuggest with canned responses ● Sh
Slide 17: Transformation: One Product to Suite Company
TRANSFORMATION One Product Company => Multi Product Company => Suite Company Q2 KPIs 17
Slide 18: Financial Results
financial results
Slide 19: Financial Results (PLN mn) in Q1 2024/25
FINANCIAL RESULTS (PLN MN) IN Q1 2024/25 +3.5% -4.6% -4.5% Q1 dynamics impacted by depreciation of the US dollar against the Polish zloty (PLN). The company generates almost all of its revenues in USD, while its costs are incurred both in USD (marketing, IT infrastructure, affiliate program) and in
Slide 20: 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 Q1 2024/25
Slide 21: Cash Position (PLN mn)
CASH POSITION (PLN MN) cash 30.06.2024 Cash flow from operating activities was 8.6% higher than in the same period last year and amounted to PLN 51.8 million. 21
Slide 22: Revenue per Product
REVENUE PER PRODUCT Revenues per product 2022/23 2023/24 Change Q1 2023/24 Q1 2024/25 Change (PLN mn) * 272 507 305 368 +12.1% 77 286 76 771 -0.7% 18 008 21 912 +21.7% 4 988 7 049 +41.3% ** 5 202 8 069 +55.1% 1 633 3 020 +84.9% *Including: Marketplace **Including KnowledgeBase For the first time in
Slide 23: Dividend Policy
DIVIDEND POLICY Dividend paid (PLN mn) Dividend per share (PLN) Annual General Meeting decided to allocate a total of PLN 153.9 million for dividend, which means a payment of PLN 5.98 per share (including two advance payments). 23
Slide 24: Overview
overview
Slide 25: 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. 25
Slide 26: 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 27: 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 28: Products: 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 29: Revenue Split by Products
REVENUE SPLIT BY PRODUCTS 2023/24 revenue split 2.1% 6.5% 91.1% 0.3% LiveChat revenues includes marketplace. 29
Slide 30: 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. 30
Slide 31: 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. 31
Slide 32: Team of 250+
TEAM OF 250+ Meet us at www.text.com/team 32
Slide 33: 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 34: Company's Structure
COMPANY’S STRUCTURE 34
Slide 35: 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 36: Clients
CLIENTS ~37 800 2900+ 150+ 25+ Companies from Clients of LiveChat Clients of ChatBot Countries Fortune 500’ list 36
Slide 37: 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 37
Slide 38: 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 39: 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