Slides
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Investor Presentation Q1 2025/26 - KPI and Annual Results 2024/2025 FY July 2025
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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.
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MOST IMPORTANT EVENTS Initiatives 3 - Text App: Released to first customers (currently using our products) in June. Advanced work on final platform version and its commercial launch. - Infrastructure: The completed migration to the new cloud infrastructure will translate into improved quality, removing traffic limits on supported websites and introducing new functionalities for customers. - Customer acquisition. Continued work on current acquisition channels, strengthened sales department (Miami office opened in June), increased offline activity, introduction of crypto payments, first customer with contract worth of USD 1 mn annually. Text.com as a new channel of customer acquisition soon. - SOC 2 certification in progress. Delays due to internal structural changes do not pose a threat to the process itself. - Target of USD 100 mn ARR. Timeline dependent on Text App adoption, external conditions, and implementation of other growth initiatives.
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financial results
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-0.9% -1.3% +5.6% 5 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) -0.2% +6.8% -3.4% In Q4, 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 as company finished migration to the new cloud infrastructure.
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FINANCIAL RESULTS - EBITDA (PLN MN) +2.8% +1.6% EBITDA grew by 1.6% to PLN 201.6 mn reaching a margin of 56.9% for the whole financial year 2024/25.
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FUTURE REVENUES (IN PLN M) 8 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 2024/25 they amounted to PLN 72.1 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, in September PLN 70.1 million as the main payment and in January 2025 first interim dividend payments (PLN 42.7 mn). CASH POSITION (PLN MN) 9 cash 31.03.2025
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** REVENUE PER PRODUCT Revenues per product (PLN mn) 2023/24 2024/25 Change Q4 2023/24 Q4 2024/25 Change 305.368 314.323 +2.9% 21.912 26.160 +19.4% 8.069 13.695 +69.7% 76.771 77.687 +1.2% 3.020 4.640 +53.6% 7.049 6.682 -5.2% * *Including: Marketplace **Including KnowledgeBase 10 In the the FY 2024/25, LiveChat accounted for 88.7% of all Group revenues (vs 91.1% during previous year), and in Q4 alone - for 87.3%.
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REVENUE SPLIT BY PRODUCTS 11 7.4% 3.5% *LiveChat revenues includes marketplace. 88.7% 2024/25 revenue split 0.4%
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DIVIDEND POLICY Dividend paid (PLN mn) Dividend per share (PLN) 12 The Company's Management Board proposes to the AGM a dividend payment of PLN 6.06 per share (taking into account previous interim dividend payments). *Management Board's proposal
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HIGHLIGHTS Finances KPIs Events 13 - During the financial year revenues grew by 5.6% y/y. In Q4 alone revenues grew by 6.8%. - Consolidated net profit fell by 1.3% y/y in the full year and by 3.4% in Q4 alone. - Operating profit decreased by 0.9% to PLN 179.0 million, and EBITDA increased by 1.8% to PLN 202.0 million. - The results were significantly affected by, among others, the USD/PLN exchange rate, as well as increased cloud infrastructure costs related to the migration to Google Cloud completed in June. - The share of the LiveChat product in the Group’s total revenues dropped to 88.7% from 91.1% in the previous year. - FY’s gross margin on sales was 79.7%, operating margin: 50.1%, EBITDA margin: 57.0% and net margin: 46.4% - MRR grew by 6.9% y/y to USD 7.12 mn as growth of ARPL and new products successfully offset loss in number of LiveChat customers. - Management Board proposes to the AGM a dividend payment of PLN 6.06 per share (taking into account previous interim dividend payments). - The Management Board decided to pay a second interim dividend of PLN 1.51 per share. The proposed Dividend Date is 23.07.2025, and the Payment Date is 30.07.2025.
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KPIs
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Q1 HIGHLIGHTS Initiatives 15 - Text App: released to first customers, at the end of June over 250 existing customers using it. - Completed migration to new cloud infrastructure. - Sales team - opening an office in Miami, focus on US market. - Introducing crypto payments for enterprise customers. - MRR grew by 1.4% y/y to USD 7.17 mn and by 0.7% during a quarter. - Payments received decreased by 3.5% y/y and 2.8% q/q to a USD 21.86 mn. - HelpDesk MRR exceeded USD 0.5 mn Q4
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MRR OF ALL PRODUCTS (M USD) Monthly Recurring Revenues at the end of a given month 16
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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. 17
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Customers with MRR =>500 USD responsible for almost 50% of MRR at the end of June 2025, up from 42% 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 18 MRR, USD million
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Multiproduct customers are responsible for 34.9% of MRR a the end of June 2025, which is a 3.5 percentage points increase within a quarter. 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 19 % share of MRR
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KPI’s LiveChat (number of customers) 20 During the quarter, the number of paying LiveChat customers by 928, resulting in 33,157 paying customers at the end of June. Customer churn remains high. The number one reason for departures given by departing customers remains "closing, changing business model"
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Steady increase of ARPL of USD reaching 184.2 at the end of quarter resulting from both: successful upselling to current customers, and much lower customer churn among high ARPL customers. 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). 21
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KPI’s ChatBot (number of paying customers) 22 0 3.375 paying ChatBot customers (+96 in the quarter) at the end of the Q1 (June 2025).
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KPI’s ARPL of ChatBot (in USD) 23 Promos for the first payments resulted in a decrease in lower initial ARPL but the average continue to increase - USD 153.6 at the end of June.
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KPI’s ARPL of ChatBot (in USD) 24 The average payment for additional interactions (above the limit included in the subscription) at the level of ca USD 31 during quarter. This value is not included in ChatBot MRR and ARPL, but adds towards revenue.
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KPI’s HelpDesk (number of paying customers) 25 The number of paying HelpDesk customers continues to increase - by 178 net during the quarter to 1980 customers. The rapid growth in number of customers is the result of sunsetting of LiveChat’s native tickets and encouraging customers to try HelpDesk.
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KPI’s ARPL of HelpDesk (in USD) 26 HelpDesk ARPL (ARPU) increased by 14.4% during the quarter to USD 257.5, reflecting product development and excellent revenue retention of the product. In May a large client started to use HelpDesk.
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overview
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Global SaaS business Ca 35% of MRR generated in the US, less than 2% in Poland B2B subscription revenue model Growth story +494% EPS growth in 8 years Unique customer acquisition model Allowing high, sustainable margins. Co-founders Consortium led by co-founders is company’s leading shareholder Dividend company With a track record of sharing profit with shareholders. 28 KEY FACTS
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REVENUES BY GEOGRAPHIES 29 English-speaking countries continue to generate almost 50% of the revenues. Poland with 1.5% share in revenues is in TOP15 countries.
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VISION AND MISSION 30 We help brands provide better customer service at scale by analyzing enriching, and automating text communication. for better customer service
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COMPANY’S STRUCTURE 32 All key persons associated with the company for many years
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SHAREHOLDERS - COMPANY STILL LED BY FOUNDERS* * According to the shareholders’ notifications received by the Company, public data from the Polish pension funds’ reports 14
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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.