Text S.A.

So, hello everyone. Life.ir team is here and we will present just released preliminary data for a quarter which ends on March 31st. And the whole team is here. My name is Marcin Roba and with me is my colleague, Wuzia Kaseya. Wuzia, do you want to start from here?

Yes, sure. So I welcome you as well on a webinar on preliminary estimated results for Q4, our Q4, that means the period January to March 2023. We, as always, try to be brief. We'll give you about 15 minutes presentation and then we are very much open to any questions that you have. So first of all, and especially because we see the new names, a very brief intro to LiveChat software. We are still LiveChat software, not for very long though. We plan to change the name of the company to Text. both for our US company and the Polish one. With that comes a new vision and mission for the company, but we still remain as text communication. This is our main focus of the entire company. The key facts about the company as it is now, we are a global software as a service business. That means our main market is the United States with roughly 40% of the revenues being generated from there. Whereas Poland where we are based is now slightly more than 1% of the revenues. We operate in business to business subscription revenue model. We have a very unique customer acquisition model. That means a lot of different channels that generate the traffic and new customers. And that actually allows us to generate high and sustainable margins. with these margins being high, we are also able to pay out dividends and we have been paying the dividends for the entire period that we are on the Stock Exchange. And actually this year in one week's time, it's more of a Interesting fact. In one week's time, we will celebrate the ninth anniversary of being on the Warsaw Stock Exchange. And when there was an IPO of the company, the price of the share was 18.5 Polish zloty. And now with the most recent interim dividend that we paid out, those dividends are more than 19 Polish zlotys. So actually, even with dividends, the investors should be happy. We still have the co-founders within the company, both in the management board and on the supervisory board. And they, with some other key managers, are also the largest shareholder that we have. And of course, products. So we currently have five of them for being the paid products, LiveChat, Chatbot, Helpdesk and Knowledgebase. And the most recent addition, so Open Widgets since November last year, it's actually our first freemium product. I'm probably not going to talk more about the products, there will be some other time for that, but I would like you to give some information about the most recent quarter. So we just, those four days ago, finished the fourth quarter in our case, the last quarter of the financial year, with 20 million US dollars of revenues in the quarter. What is important? We, first of all, receive all the payments in US dollars, and that's also the reason why we provide this information in US dollars. So no matter the country where our customer comes from, it can be Germany, can be Poland, US or China, for example, all the customers will be paying in US dollars. And as you can see, the last two quarters actually are very good ones. That is because of the price increases and also this quarter we've seen another increase of the revenues. When we look at monthly recurring revenues, this change is slightly lower and this is due to the fact of our booking of the revenues. So in terms of the revenues that we receive, the customers can choose between the monthly payments and annual payments. And in the revenues that we just showed you, all the payments, monthly and annual, are booked in the month or in a quarter when they were received. However, this approach of showing monthly recurring revenues, so actually the revenues are here distributed to particular months for which they are paid. It shows you more, well, it basically gets rid of the fact of those annual payments. And you can see that MRR in the last quarter increased by close to 1%, to 6.4 million US dollars. In terms of the number of customers and actually other key indicators, this is interesting and important. The number of live chat clients increased to Once again, we crossed 37,000. It increased to 37,061 customers at the end of March. But what is interesting is actually what was happening in the particular months. Because in January, we've seen a decrease in the number of clients. February was more or less stable. And now March, we see an increase in... Actually, it was an addition of 216 clients. And it is also important to say that those clients are mostly smaller ones. We'll come back to this when we see the ARPU and initial ARPU graphs. So, as you can see, our pool right now is on this new level of 160 US dollars, just slightly below that. And again, this is important because we did the price increase in November last year. And we see small fluctuations of ARPU. So in January, ARPU decreased by $2. Then again, it decreased $1 in February, but actually in March, It increased by two US dollars. An important thing here is the fact that I mentioned already that we have quite a lot of small customers coming and also going in March. But actually, the net MRR churn for that particular month was negative. So that means actually the customers were adding more of a business than was taken away with their churning customers. And here I want also to make this point about small customers coming and going, because you can actually see that when you look at initial ARPU, so the very first payment that our customers make, this remains and is at much lower levels than those of actual ARPU. We can now go to chatbot. For chatbot, similarly to live chat and increase in the number of customers, we now have 2706 customers active and paying. And with ARPU, in case of chatbot product, it's actually slightly different because we still see that initial ARPU for chatbot is at quite high levels and actually it adds up to the average level of ARPU. that is on the next slide, if someone is following the slides. So as you can see here, this is an important factor adding to our pool value for chatbot. One more thing though, If you were following the report that we published yesterday, you could see that actually the revenues for chatbots decreased quarter on quarter. But it's... So two factors are in here. So MRR itself increased by almost 9%, whereas what made the difference actually were these additional payments that the customers make if they exceed the number of interactions that they have in their pricing plan. So this was actually the case of chatbots. Last quarter there were quite big payments for additional chats and hence the difference that we see in the revenues now. In terms of the key events, because we are talking about the revenues and the more financials, so actually the revenues increased by 37%. So for the first time we crossed the level of 20 million US dollars per quarter. Also, MRR continuously grows. If you compare it to year-on-year figures, this is mainly due to the price increases that we made. But when you look at, because we are already more than a quarter into the price increases, when you actually see how ARPU is growing, so to say, behaving, we see the stabilization of this parameter. And what is also quite optimistic, we are back to customer growth in case of a live chat product. In this live chat product, we increased the number of customers by 211. Also for chatbot, it was an increase of over 80 customers for the whole quarter. And from other news, except for the KPIs and the revenues, we slowly transitioned to text.com. And after the acquisition of the domain, we paid out the dividend at the beginning of the year. And something that, if we were not to say that, would definitely come in the form of a question, our cooperation with OpenAI. Back in February, we signed a DPA agreement with OpenAI. And currently, if you look into our products, the first features using ChatGPT technology, OpenAI technology actually, were added to all of the products. And for a summary, that's it. But we are very open to questions that you might have.

Yes, thanks a lot, Wojciech. So yes, presenting is good. Answering questions is better. So you can use ask question feature or just raise a hand feature and we let you in. Because at this moment, I don't see questions. Neither do I. Okay, okay, William. Okay, yes, I will just... Okay, I can see two people which are raising hands. So, William, you are the first and I'm just trying to... Yes. You should be able to speak. Hello. Hi, can you hear me? Yes, yes. Thank you. Hello.