Slides
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Text S.A. Investor presentation April 2025
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VISION AND MISSION FOR TEXT.COM 2 We help brands provide better customer service at scale by analyzing, enriching, and automating text communication. for better customer service
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Global SaaS business Ca 35% of MRR generated in the US, less than 2% in Poland B2B subscription revenue model Products with premium customer service and its own marketplace. Unique customer acquisition model Allowing high, sustainable margins. Co-founders Consortium led by co-founders is our leading shareholder Dividend company With a track record of sharing profit with shareholders. 3 KEY FACTS
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Customer service platform allowing for a contact with a human agent across all channels asynchronously PRODUCTS Platform to build and launch conversational chatbots without coding Ticketing system for teams A tool for gathering knowledge and sharing all the answers with customers and within team KEY FEATURES OF OUR SERVICES A free tool that allows you to easily create and install a functional widget supporting e-commerce. 4 ● Premium service and support ● Focus on customer experience ● Premium 24/7 customer support ● Over 200 LiveChat integrations with other products ● Enterprise security standards (GDPR, HIPAA etc.) ● Guaranteed uptime SLA (standard level agreement) ● Advanced reporting ● Open API
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overview
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CLIENTS ~34 000 LiveChat clients 6 3200+ ChatBot clients 150+ Countries 25+ Companies from Fortune 500’ list
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63% of shares take over by GG Network S.A TEXT HISTORY First customers LiveChat Sp. z o.o. 2002 LiveChat Software S.A. GG PRO 50% of shares acquired by Capital Partners A business version of Gadu-Gadu communicator 2007 2008 2009 EBITDA+ Positive result for the first time in history 2010 SaaS 2011 Management buyout from GG Network S.A. (MBO) 2014 Debut on Warsaw Stock Exchange 2015 Customers in 120 countries 2016 Customers in 150 countries 2017 Launch of KnowledgeBase 2018 Launch of ChatBot 2019 Launch of HelpDesk 2020 1K+customers of ChatBot and 30K customers of LiveChat! 2021 50+ mn USD of ARR 2022 Launch of OpenWidget 2023 Transition into Text S.A. 7
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SHAREHOLDERS* * According to the shareholders’ notifications received by the Company and other public data from the Polish pension funds’ reports as of 31 December 2021 14 6.2%
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GEOGRAPHY (MRR SPLIT) MRR as at the end of December 2024 without taking into account revenues that are not allocated to specific countries. In this perspective, Poland accounts for approx. 1.5% of MRR 10
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TRANSFORMATION Q2 KPIs 11 One Product Company => Multi Product Company => Suite Company
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KPIs
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HIGHLIGHTS Initiatives 13 - Suite: Sunsetting LiveChat’s tickets, single trial experience for LiveChat and ChatBot, changes in cloud infrastructure. - Changes in sales team - intensification of offline presence with focus on US market. - First contract worth USD1 million per year (upselling existing customer to this value). - Introducing crypto payments for enterprise customers. - Partnership with HubSpot (App Partner Program) - SOC2 certification in progress. - MRR grew by 6.9% y/y to USD 7.12 mn (vs 4.1% of annual growth achieved in previous quarter) and by 0.3% during a quarter. - Payments grew by 3.3% y/y and 4.8% q/q to a USD 22.46 mn. Q4
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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 of revenues in the US dollar (USD), the USD / PLN exchange rate has a significant impact on the results presented in the periodic reports in Polish zloty. 14
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MRR OF ALL PRODUCTS (M USD) Monthly Recurring Revenues at the end of a given month 15
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Customers with MRR >500 USD responsible for 48% of MRR at the end of March 2025, up from 40% a year earlier, showing potential in expanding existing customers and targeting bigger customers GROWING SHARE OF CUSTOMERS WITH MRR > 500 USD MRR from customers with MRR below or above USD 500 16 MRR, USD million
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Multiproduct customers are responsible for 31.4% of MRR a the end of March 2025, which is a 9 percentage points increase within a year. Shows our journey from one-product company to multi-product company with an aim to offer a product suite in the future. INCREASING SHARE OF MRR FROM CUSTOMERS WITH MULTIPLE PRODUCTS 17 % share of MRR
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LIVECHAT KPI’s LiveChat (number of customers) 18 During the quarter, the number of paying LiveChat customers decreased by 1,423. The recorded result was significantly affected by sunsetting of native tickets in this product. Customer churn remains high. The number one reason for departures given by departing customers remains "closing, changing business model"
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LiveChat added USD 3.3 ending with ARPL of USD 181.9 end of quarter, continuing very stable and positive trend which results from both: successful upselling to current customers, and much lower customer churn among high ARPL customers. LIVECHAT KPI’s ARPL and initial ARPL of LiveChat (in USD) ARPL (average revenue per license), synonymous to the earlier used term ARPU Initial Sale ARPL (or Average Sale Price) is the average MRR of new customers at the moment they convert to a paid account). 19
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CHATBOT KPI’s ChatBot (number of paying customers) 20 0 The number of ChatBot customers exceeded the milestone of 3 thousand in September 2024. At the end of the Q4 quarter, the product had 3279 paying customers (+189 in the quarter).
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CHATBOT KPI’s ARPL of ChatBot (in USD) 21 Promos for the first payments resulted in a decrease in lower initial ARPL, but the average remains stable at USD 147.3 at the end of March.
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CHATBOT KPI’s ARPL of ChatBot (in USD) 22 The average payment for additional interactions (above the limit included in the subscription) at the level of ca USD 30 during quarter. This value is not included in ChatBot MRR and ARPL.
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HELPDESK KPI’s HelpDesk (number of paying customers) 23 The number of paying HelpDesk customers increased by 481 net during the quarter to 1802 customers as sunsetting of LiveChat’s native tickets supported cross-selling.
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HELPDESK KPI’s ARPL of HelpDesk (in USD) 24 HelpDesk ARPL (ARPU) increased by 7.1% during the quarter to USD 225.1, reflecting product development and excellent revenue retention of the product.
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SUMMARY Q4 25 - Steady progress towards transformation to a suite company - Stable business growing at single-digit rates year-on-year with new products on much faster track (126% annual growth for HelpDesk and 26% for ChatBot). - MRR grew by 6.9% y/y to USD 7.12 mn (vs 4.1% of annual growth achieved in previous quarter) and by 0.3% during a quarter. - Payments grew by 3.3% y/y and 4.8% q/q to a USD 22.46 mn. - Prospects for reducing infrastructure costs from Q1 2025/26 onwards. - Consistently in the TOP 25% of global SaaS by revenue retention according to ChartMogul Benchmark.
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financial results
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-1.1% -0.7% +5.2% 27 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 PLN (mainly the team and the leasing of the office in Wrocław). Even though, the exchange rate influences the net profit. FINANCIAL RESULTS (PLN MN)
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FINANCIAL RESULTS (PLN MN) -8.2% -0.5% -6.0% In Q3, the operating profit and net profit were negatively impacted by an increase in the costs, mainly IT infrastructure costs. Infrastructure costs should fall in the second half of the 2025 calendar year.
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FINANCIAL RESULTS - EBITDA (PLN MN) -5.1% +1.3% EBITDA grew in the first 9 months of the year by 1.3% to PLN 154.3 mn reaching a margin of 58.2%. EBITDA
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FUTURE REVENUES (IN PLN M) 30 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 Q3 2024/25 they amounted to PLN 73.0 million.
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The cash flow position was influenced by dividend payouts:, in July 2024, the Company paid PLN 40.9 million as a second interim dividend payment, and in September PLN 70.1 million as the main payment. CASH POSITION (PLN MN) 31 cash 31.12.2024
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** REVENUE PER PRODUCT Revenues per product (PLN mn) 9M 2023/24 9M 2024/25 Change Q3 2023/24 Q3 2024/25 Change 229.369 236.636 +3.2% 16.828 19.478 +15.7% 5.843 9.055 +55.0% 80.240 79.063 -1.5% 2.354 3.415 +45.1% 6.774 6.439 -4.9% * *Including: Marketplace **Including KnowledgeBase 32 In the first 9 months of the year, LiveChat accounted for 89.2% of all Group revenues, and in Q3 alone - for 88.9%.
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DIVIDEND POLICY Dividend paid (PLN mn) Dividend per share (PLN) 33 Company paid out an advance toward dividend payment of PLN 1.66 in January 2025. A year ago, the value of the corresponding advance payment was PLN 1.63 per share.
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HIGHLIGHTS Finances KPIs Events Q4 Trends 34 - During 9 months of the financial year revenues grew by 5.2% y/y. In Q3 alone revenues fell by 0.6% y/y. - Consolidated net profit fell by 0.7% y/y in 9 months and by 5.9% in Q3 alone. - MRR grew by 9.4% y/y to USD 7.10 mn (vs 8.8% of annual growth achieved in previous quarter) and by 0.9% during a quarter as growth of ARPL successfully offset loss in number of LiveChat customers. - First advance toward dividend (PLN 1.66 vs PLN 1.63 year ago) paid on January 3rd. - Sunsetting of native tickets in LiveChat finalized at the turn of January and February. - High level of payments received in USD (according to the estimates March 2025 was the best month in this regard since August 2024) - Stable MRR in 2025, which is the effect of increase of ARPL of LiveChat and HelpDesk products and substantial increase of the number of HelpDesk clients, with a simultaneous continuation of a decrease of the number of LiveChat paid customers.
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DICTIONARY SAAS Software as a Service, is a business model where a software is licensed on a subscription basis and it is stored in the cloud. MRR Monthly Recurring Revenues, it is a measure of predictable total revenue generated from all active and paying subscriptions in a particular month. It includes all recurring charges but excludes one-time fees. ARPU/ARPL Average revenue per user in a month (or per licence), calculated on the basis of MRR ARPU = MRR/ number of users (licences) Initial ARPU Initial ARPU, in other words average sale price, it is the average value of monthly revenues at the moment when the user converts to a paid account ARR Annual Recurring Revenues, MRR x 12 EBITDA Earnings before interest, taxes, amortization, and depreciation 35 PPA Pay per agent, pricing model where a customer pays for every agent they have 35
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INVESTOR RELATIONS ir@text.com FIND OUT MORE: investor.text.com 36 OR CHAT WITH US when we are not at the meetings
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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. Data presented in this presentation was prepared by the Company with particular care, hoverer it may contain ambiguities. Under no circumstances should this presentation be treated as a purchase recommendation, an invitation to subscribe to, or an offer to recommend the purchase or subscription to any securities issued by TEXT S.A. The Company is not responsible for the outcome of any decision or action taken based on this Presentation. The Company does not provide financial guidance or financial forecasts; however, the presentation may contain forward-looking statements that reflect the Company's current assessment. These forward-looking statements reflect the Company’s views at the time such statements were made with respect to future events and are not a guarantee of future performance or developments. Reliance on any forward-looking statements involves known and unknown risks and uncertainties. This presentation is not to be circulated in territories and states where public circulation and sharing of information contained herein may be subject to legal restrictions. Parties accessing this presentation are advised to familiarize themselves with any such restrictions beforehand.