Slides
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Q3 2024/25 - financial results
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financial results
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-1.1% -0.7% +5.2% 3 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) 6 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) 7 cash 31.12.2024
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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. 8
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MRR OF ALL PRODUCTS (M USD) Monthly Recurring Revenues at the end of a given month 9
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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 10 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) 11 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 12 - 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 January 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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KPIs
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KPI’s LiveChat (number of customers) 14 During the quarter, the number of paying LiveChat customers dropped by 907 to 35,508, which is the result of high customer churn and weak acquisition recorded especially in December, when the number of customers dropped by 542 net. The highest customer churn remains among the smallest customers, especially in Asia region. Customer churn in key market (USA) improved quarter-on-quarter.
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Q3 confirmed LiveChat's potential to further increase of ARPL. Strong cross-selling translated into an increase in ARPL by USD 4.7 up to USD 178.6. The effect was an increase in the product's MRR (in the entire quarter and in December), even despite a decrease in the number of 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). 15
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KPI’s ChatBot (number of paying customers) 16 0 The number of ChatBot customers exceeded the milestone of 3 thousand in September. At the end of the quarter, the product had 3,090 paying customers.
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KPI’s ARPL of ChatBot (in USD) 17 Promos for the first payments resulted in a decrease in ARPL by USD 3.8 to USD 144.3, but in December this indicator returned to growth, adding USD 1.5.
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KPI’s ARPL of ChatBot (in USD) 18 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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KPI’s HelpDesk (number of paying customers) 19 The number of paying HelpDesk customers increased by 97 net (vs 29 during previous three months) during the quarter, with December being the strongest (an increase of 61 net). At the end of the quarter, the product had 1,321 customers.
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KPI’s ARPL of HelpDesk (in USD) 20 HelpDesk ARPL (ARPU) increased by 9.9% during the quarter to USD 210.2, reflecting product development and excellent revenue retention of the product.
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HIGHLIGHTS Q3 KPIs 21 - 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. - Payments received grew by 0.4% y/y to a USD 21.43 mn, which also means a 6.2% drop versus previous quarter. This is due to a lower share of payments for annual subscriptions in this quarter. - High customer churn and weak acquisition of new customers resulted in a decrease in the number of paying LiveChat customers by 907 net, of which almost 550 were the result of a weaker than expected December. However, thanks to very strong upselling, LiveChat was able to increase its MRR even this month. - Customer churn exceeded 4% in the quarter. The highest churn was among small customers, mainly from Asia. Churn in the key US market was 1 percentage point lower than the average. - Estimated revenues of API as a service fell by 10% over the quarter to USD 53k.
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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. 23 KEY FACTS
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VISION AND MISSION 24 We help brands provide better customer service at scale by analyzing enriching, and automating text communication. for better customer service
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REVENUES BY GEOGRAPHIES 25 English-speaking countries continue to generate roughly 50% of the revenues. Poland with 1.4% share in revenues is in TOP15 countries.
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COMPANY’S STRUCTURE 27 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 and shareholders’ analysis done by the Company 14
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HIGHLIGHTS Financials KPIs (USD) Company Product 29 - In the first half of the year, Text's consolidated revenues increased by 8.3% y/y and net profit by 2% y/y. - In Q2 alone, revenues increased by 13.5% y/y and net profit by 9.3%. - Payments received grew by 14.9% y/y to a record USD 22.84 mn in Q2 and by 13.5% to USD 45.46 mn during H1. - MRR was USD 7.04 mn at the and of Q2, which translates into a 8.8% y/y growth. - The Management Board requested the Supervisory Board to consent to the payment of an advance dividend in the amount of of PLN 1.66 per share. Corresponding advance payment year ago was PLN 1.63 per share. - Focus on building and complementing the Suite offering. - TeamChat product in internal testing phase. - Workflows product in Closed Beta phase.
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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.