Livechat Software Sa

I think we're ready to go. The last thing is recording in progress. Good afternoon, everyone. Welcome to TEX Group webinar concerning KPIs for the fourth quarter of the financial year. That is the period of January to March 2024. I'm Łucja Kaseja, Manager at Investor Relations at TEX and here with me is also Marcin Droba. the head of IR at TEXT. And today it will be our pleasure, firstly mine and later on also of Marcin to discuss the recent KPIs. So let's start. The vision and mission for text remains the same as it's been for a year now. So text intelligence for better customer service. But we're also happy to share with you that next Thursday, it will be 10 years of text, previously live chat as publicly listed company. And we are very grateful to those investors who have been with us for the last 10 years because we have some investors like that. And we will take a very short moment to actually summarize those 10 years because we are quite proud of what we've managed to do. as a listed company so we started um in 2014 when there was the ipo of the company with 7 600 clients of them just live chat product now 10 years later we have almost six times more customers so actually almost 43 000 of subscriptions for paid products, live chats, chatbots, health and knowledge base. Our annual recurring revenues at the time were 6.2 million US dollars, which is less than we actually have MRR now. In those 10 years, we managed to increase those by more than 12 times. I think we were also very good at growing our earnings per share because cargo of EPS was 37.5% over that period. And we also were very consistent in paying dividends, which actually outgrew the IPO price. We did not raise the capital at the time of the IPO, but the IPO share price at the time of the offering was 18 zloty 60 groszy. And the dividends that we have paid out were over 25 Polaris Lotte. So the dividend per share actually covered well the initial share price. Once again, thank you to those investors who had been with us for those years. And that was the past. I think we will now discuss the present. And hopefully in the discussions after the presentation, we will be also able to discuss the future of the company.

Just let me say that I was there at the debut. I remember that day. So of course, on a personal level, it's also a very important anniversary for me because, you know, I remember that day and was at the Warsaw Stock Exchange at the event of the debut. So happy to be there and happy to be here now.

As always, we start with a very brief discussion of who we are. So we are a global SaaS software as a service business. We sell the products in the form of subscriptions with our main market being the United States. We have a very unique customer acquisition model. We still have the co-founders present at the company level. And we also are a dividend-paying company with, as I already mentioned, a very good track record of those. I won't go into the products in specific, because hopefully, more or less, all of you know, live chat chatbot help as a knowledge base. But I will be happy to discuss the the KPIs for Q4 of our financial year. So the very first metric that I'm going to discuss is monthly recurring revenues. So those actually stood at $660,000 at the end of March. And it is actually the good result that it is. It's the result of optimizing the structure of our product price lists and the use of products by our clients. I'm going to discuss that further. But actually, this is the quarter where we had growth. It was 2.6% year-on-year. No, sorry. 2.6% quarter-on-quarter growth and 4.1% year-on-year growth, which are a good indication of where we want to go this year.

Because, of course, it's not like our target, definitely not, but definitely better than we saw in the last quarter.

The second slide I'm going to discuss is actually the payments received. As you see, this was again a record quarter in terms of the payments. They exceeded 21 million, were actually quite close to 22 million US dollars. And what is important to mention here is actually that help desk this quarter has been very strong in terms of the growth. As you can see on the slide, you can actually see the green color on the graph. In case of customers, here we have quite long perspective because this is for the past three years, this number of customers. Actually, you cannot really see that strong what had been happening in January, February or March this year. But important things took place actually at the end of the year. We started to optimize the price lists. And so we did a couple of things aimed at the way the customers use or the way they use our terms of usage. of the product. Those started to operate at the end of 2023 and early January this year. And the immediate effect, as you can, I hope, see on this graph, is actually that the number of customers went down. That is because we targeted the customers who were using the product not properly, overusing. However, if you look at more or less the line for the quarter, it is... quite stable because actually quarter on quarter there was minus nine customers. This quite unfortunate event is that the end of the month was actually the weekend and the Easter break because it's usually the way it works with our customers that we have more churn during the weekend. So actually, if it was Monday or Tuesday, we might have seen a positive number in terms of the customers on a quarterly basis. But still, if you just look on the March data, on this number of customers that we managed to add in March, this is plus 72 customers. So it's actually quite promising. Then the second KPI for LiveJet product is ARPU. Here again you can see the history of ARPU for the last couple of years. Something important took place again at the end of the year. You can see that there was a sharp increase in ARPU in January. And this is exactly the time when we started to, or actually the end of December was the start, but the effect was mainly in January. This is when we started to optimize the pricing list and we imposed some limits on the activity of the customers in terms of the number of sessions or number of chats they could have at the same time. And the direct result of those actions is increase in ARPU. Such changes to the pricing list also meant that we lost some of the customers, so the customer churn increased. And you can see these numbers or the data when you look at the number of customers. But at the same time, there's a third component and that was improved. So net MRR churn, which at the beginning of the year was improved. So actually those changes that we did to the pricing list, to those limits that we imposed on the customers, they have worked well. all in all in a positive direction because ARPU was higher now at the level of 160 US dollars but also it meant some more churn in terms of the number of customers. We will be continuing such activities such optimization into the year So, we hopefully will see, again, a positive effect on ARPU, but also there will be some cost of that, so increased churn. In terms of the same data for chatbot, for the number of customers of chatbot product, it was a difficult quarter. Maybe we could even call it a little bit disappointing because we actually, well, the level was almost stable. We lost on a net level to customers. But what is important, we were very product focused in terms of chatbot. So there was quite a few new things were added to chatbot. We were less focused on custom accusation. But hopefully, especially that we plan to link to more live chat products with Chatbot, it will bring new customers to Chatbot. Although the number of customers was slightly disappointing, ARPU of chatbot product is still growing. So the new customers that we add to the product, they actually support ARPU. And even this added another two US dollars during the quarter. Also together, and we've always were saying that without maybe indicating specific numbers, When you think about chatbot, there is a subscription part, so this is output that we see, but also there is an additional part that the customers might pay. So if you exceed the number of interactions that are in a specific plan, you have to pay additionally per each chat. And we have increased the pricing of that. So it used to be one cent and it's still one cent for the old customers. But now for the new customers of Chatbot, each interaction that is over the limit that is imposed in a specific plan costs three cents. What it essentially means is that on top of the recurring revenue that we're getting from chatbot, there is also an additional part of the revenues. These are the revenues that we get from those additional chats. And if those additional chats were added to this ARPU that we have on the slide, that would give usually another $30. to ARPU. We cannot actually show it together because this payments for additional chats, they are not really recurring because they depend on the usage. But if you added that be another $30 and after the price increase that we had in March, those additional chats would bring another $40 to Chatbots ARPU. So it actually shows you that unlike with live chat where we optimize those price lists, here we increase the price for additional chats. And here we have data for Helpdesk. We started to show Helpdesk, I think two quarters ago, and it is actually proved to be a very good product to describe because this quarter, it was the best growing product. First of all, you can see that on that level, we added 42 customers in the quarter. So it was growing very nicely. Also, Helpdesk is part of the affiliate program for over a year now, but finally we get this source of new customers working very well. There will be also increased potential from Helpdesk because actually it will be joined together with a knowledge base. Knowledgebase will stop being a separate product. It will be combined with Helpdesk and it should actually bring more value for Helpdesk, also marketing value. So it will help us to further increase ARPU of this product. And it is also a slightly different product in terms of the usage because it has actually an excellent product retention. So the essence of Helpdesk is that many people work on tickets, on the issues within the product, and it's actually nice to add new users of Helpdesk. And for us as a SaaS business, it means that the retention of this product is very, very good. Also, you can see that on the level of ARPU, because the growth of ARPU is very well, and in the last months of this financial year, so actually for January to March, this product had a negative MRR churn, so the retention of clients was superb. And that meant that only in March this year, we added more than three US dollars to ARPU, despite the fact that the initial payments for this product in the beginning of the year were very low. So on the level of 50 US dollars, but still the product was, managed to grow very well. And in this product, the retention is key. We have discussed the KPIs of different products. Now we will more discuss the product, maybe not roadmap, but the most recent events that we had within the products. So the first one goes for live chat. We have now one. the new AI assistant. And this is the companion that helps navigating all agents using LiveChat. So at the very first moment when you open the live chat product. The first chat that you see is actually the AI assistant that allows you to ask questions. You can ask this AI assistant about your own activity, the number of chats you had, or you can ask about the product. And this is something that we really wanted to show our customers because over the last one and a half year, we've made a lot of new features. We've invested a lot in AI. But one thing that was not going so well was actually showing the value to the customers. We saw that many of the customers were reluctant to use AI and some of them even requested AI to be turned off. So in order to be able to show actually the value in our product development in AI solutions, we now display AI Assistant V1 right in front of the customer. Also, after using our chatbot, the chatbot product, for the last four months, we can share with you the results that are achieved with our own chatbot. So when you enter livechat.com website, the very first conversation that you have is with the chatbot. And it is chatbot that... I mean the product, the chatbot product. So for those four months, AI bot had 400,000 conversations on its own. So that meant without any human, without a human agent. And that is 80% of all chats that our customers had on our website. This amount of conversations means that if it was not the chatbot, we would need an equivalent work of 100 full-time agents handling those chats. So that shows that by having this chatbot on our website, that is equivalent of... savings from those 100 full-time agents of 3.6 million US dollars. So to be precise here, if we didn't have any AI, any bot in place on our website, you would need many, many more agents. Having this chatbot on our websites allows us to have so many conversations. And what is also important, our chatbot is on par with human agents, with our consultants, in terms of the customer satisfaction. The bot maintains 95% of positive customer satisfaction. This data is based on our own usage of our own products on the website. However, we think that the more you work on the bots, you can actually improve those numbers. So this is something that we are very proud of. to have. But one thing to be said as well is the fact that it doesn't mean that we want to exclude agents. In our case, the most skilled customer support people are now helping with developing more complex solutions for our customers to be able to serve them better into the future. And now the highlights of the quarter. And after that, we'll go into the questions. So for the quarter, we had an MRR growth of 2.6% compared to the previous quarter and 4% year on year. So we entered actually the calendar year with growth in terms of the MRR. Also, we had record in terms of the value of the payments received in the quarter. That was an increase of 8.6% over the last year. And it is important to say that our sales team, they had quite a good quarter and some successful customers. We have not shared in our presentations these numbers, but a little thing to be proud of, maybe as a kind of a starter, we have now 59 customers paying for all four products and 10 of them were added during the fourth quarter. In terms of the product, we started the year with the roadmap of optimization for all of the products. So with LiveChat, these are the actions to optimize the price lists and the usage of the product by the customers. And this quarter, it's translated into growth of ARPU. but also meant that the customer churn was higher during the quarter. But we also have a roadmap for further optimization activities in the following quarters. And that means, for example, removing the legacy plans that we had in place for LiveChat product. In a live chat, we also have this AI Assistant 1 implemented and it is to show the customers the value of AI in the product. In chatbot, we are very much focused on the product side, but we also made some price updates so that there is this increased price for additional chats for the new customers. To be able to show a better value of help this product, which is anyway doing very well, it will be merged with knowledge base. And for us, it means it will have a better marketing potential as a combined product. And we are also continuing works on new products and revenue streams. And hopefully we will be able to show some numbers with the presentation of the next quarter KPIs. And that's all on my side this time. We're happy to answer any questions that you have.

And we have, I think, one question for now. So let's start. Of course, you can raise your hand if you want to ask some questions. If not, please write some questions for us. But OK, we have the first brief one. Thank you, Luca. We start with this written question from Jose Ignacio Carro. Good afternoon. Thanks for the presentation and congratulations for these excellent KPIs. Thank you. You're very kind. Is there an update with the possibility of share buybacks? The current valuation of the stock is very cheap and buybacks at this moment would create value for the long-term investors. So thank you for that question. I mean, we received actually during a quarter, last quarter, we received... a lot of voices like that about that buyback. And we have this discussion. So we have internal discussion on the on the buyback right now at the moment. Of course, we have dividend policy at place. We started to gather some feedback from investors from different groups and investors and the feedback is mixed. I mean, the feedback is mixed. I think rather foreign investors are in favor of some buyback. and we can see reasons behind that voices because now definitely the share price is where it is so of course reasonable at the same time some long term investors who are in VASP for these 10 years even, like Polish fans are not in favor of that. So no decision yet, no decision made. We have this discussion. If you have some additional points you would like to make, we are open to hear that. For now, no decision made, just discussion. on that point, but thank you for raising that topic. And maybe we will let Luca ask questions.

Okay, hello, Luca, you can ask your question now. Hi, thank you, Martin. Hi, Lucia, hi. I have a question regarding the chatbot. And please correct me if I'm wrong. So you said that around $40 came from the interactions which were above the limit. So is it correct to think that around like 30%? So if we add that to the ARPU, the current ARPU of chatbot is 134 plus like 40. gives you 174, which means that around 30% of the revenues of chatbot came from that interactions above the usage limit. Is that correct?

For March it is correct. It used to be in the previous month it was rather 30. It was rather fatty. I mean, March was very good in terms of the usage. And we have some new customers who are on the new prices. So, yes, March was extremely good, was record high. But yes, it's like 40 additional dollars in March would be added to RPU.

Okay, thank you. And how much would you say that number has been on average in the past? Like, in terms of like, more close to 30 or more close to 40? 30.

It was around 30. Okay, thank you.

So on average, in a quarter, we're receiving below $300,000 from those additional chats. And in terms of ARPU, that meant on average $30 additionally.

Okay. Okay. Thank you so much. Thank you. Can I ask another question? Yes, of course. Okay. So, I mean, can you please, you know, tell us what's the outlook look like for help desk, right? I mean, you're now going to be merging that with help desk. And so how do you see like that product in five years? Thank you.

I mean, it is quite difficult for us to see where the product will be in five years time. However, we were always saying that help desk market is actually much bigger in terms of the size than live chat or chatbot. So definitely the market is huge and the potential is there, but we also have very well positioned already other players. So it will be difficult to take the first place. However, one thing about Helpdesk is actually that it is much more sticky for the customers because once you use it for your organization, it first of all usually requires more agents. And then once you have that system installed at your company, you stay with the product much longer. So it's slightly different to, for example, live chat.

So sorry for not being more, I mean, maybe exact when it comes to forecast. But, you know, very long perspective now is now something very difficult for us to really make responsibly. But I mean, even now, looking at the help desk, it's doing very good. I mean, definitely we'd like and we really hope that we'll be able to grow faster. But even looking at revenue retention, I mean, that's the absolutely perfect situation for the SaaS product when you have a negative net MRR churn. something you really would want to achieve, that would be perfect to have such a result on a permanent basis for the live chat. I mean, help desk is not so easy to embrace, it's not so easy to onboard that live chat, that live chat advantage. But when you get Helpdesk, when you start to work with Helpdesk, it's really sticky for you. So very excited. Market is huge. So we're very optimistic when it comes to Helpdesk.

Okay, got you. Thank you. Thank you so much.

Thank you. Thank you. And we have some next written questions. A question from Mr. Arnold Wenning. How is LiveChat performing versus the market and versus competitors?

That's a very broad question.

What we can track easily in terms of market, performance of the live chat is the share when you look at the number of the live chats installed on some website. So it's not exactly the full market and definitely it's not about the market share in terms of the revenue. But it's about how many websites are using each live chat technology. It's not the perfect picture, but it's easy to crack. So it's actually something which is easy to see. And we can see that Although there is a lot of new entrants, a lot of changes, actually our shares for some years is very, I would say, is very constant. Our market share is like six, seven percent, which gives us some number five position. But saying that, the most popular are free solutions, very simple solutions, which actually are offered for free. The most popular is solution called TOC2. The next is Facebook Messenger website plugin, which allows you to use Messenger on your website. And the number one among the premium providers is Zendesk. It's very stable, it's a very strong position if you look at premium providers, which is very important when you think about live chat versus free solution. We really are not perceiving them as competitors in that sense that that we really don't think they're getting some customers from us. Well, it happens, but it's usually the situation when our customers don't have chats. And if they don't have a lot of chats, they may like to have that opportunity, to have that kind of solution, but they don't want and they don't need to pay. for solutions like that. But what they're doing for us, especially Facebook, is they actually bring some customers to our space. At some point, we are able to monetize these customers. Also, Facebook Messenger is also a communication channel for the chatbot. So actually, if you look at the chatbot customer base, more than 60% of the chatbot users are using chatbot integrated with LiveChat, but some 30% are using LiveChat our chatbot, a chatbot solution integrated with Facebook Messenger. So for us, it's good to have them around, actually.

The next question we have from Radim Kramul. Good afternoon. Are you planning to expand regionally into new geographies in order to start growing number of clients? And I would say that It'd be rather opposite. So we have now again a very strong focus on the US market. That is because the US customers are much more sticky. Their behavior is much better fit to our ideal customer. we actually seen that indeed different geographies, they have different type of customer behavior and there won't be a different approach. I mean, the US is the focus of text company.

So let's be clear. I mean, we are in 150 countries. We are in every industry. So we have some data on how customers behave, when the opportunities are, and definitely the US market is... It's not matured yet, but it's by far the biggest and definitely part of our strategy is to be focused even more on the US market.

The next question. Hi guys, thanks for these details. What's the main reason for not investing more and paying out less in dividends? Do you not see more opportunities for reinvestments? Thank you. So actually, we invest as much as we need to. We won't be spending money for acquisitions. That's not how we want to grow. So actually, we will be staying to our dividend policy.

Yes, I mean, at some point, I think we even overinvested in the terms of the team. So at some point, we even had too much people in our team when you look at our needs. So yes, we would like to invest more, but... We want to be a flexible company. We want to have a fan organization. And we really don't like the idea of spending more for customer acquisition because paid customer channels of customer acquisition still don't work well for us. And question from David O. Hi, team. Thank you for hosting this session. Thank you for being here. Are you seeing any competitive threats from all the AI-powered LMEs which might enable clients to create their own low-cost chatbot or might allow competitors or new entrants to develop new chatbots?

It is a very important question to our market. And actually, I'm glad that we have heard that this question was asked. This is also a question that links to a press release of one of big companies right before the IPO. So actually, we think that the very big companies might be investing in their own bots, chatbots, or the bots built, for example, on OpenAI. However, not every company is able to spend two, three million dollars for building such bots. And the smaller companies, just like our clients, will be much better off when they will pay $200, $300, $500 monthly to providers such as us to have not only the product covered, but also the risk of processing the data, for example, covered with a third-party solution like ours. So we think there is a place actually for both.

Yes, I think David also mentioned an opportunity to create a very cheap chatbot. So yes, I think one is the case when you can spend like some three million dollars to build your own bot versus... versus a bot who, versus, I don't know, let's say $100,000, $10,000 annual for buying solution like ours with the support, which is, you know... handed, which is coming with the support, which is keeping up to date, etc. And of course, you can try to create cheaper in-house bots, very cheap bots, but I'm really not convinced. I mean, there is a lot of risk. I mean, you have also some regulation coming, like AI Act in Europe, I think very strict and not entirely clear Act which is coming to the EU. And really probably, of course, I am not entirely neutral here, But I think that could be brave to handle that case on your own, to care about data you proceed when you run your business. Also, usage of the AI is not something you can have for free. It's not working like that. I mean, you can use chat GTP for free for your personal needs and you're paying with your data. You can do that in your business and pay like that with your customers' data. You don't want to do that. So, of course, I mean, AI is creating a change to the market and change is creating a risk. And we are aware of that and we don't want to play down this risk. But... But there is a threat that we do not understand that the coming change and some of our peers are doing that much better job. But I don't think that's the most important threat which we are now facing. Next question. Congratulations on your 10th year anniversary. Thank you. When you said Chen was hired in Q1, can you please say how much? Is your chair monthly or annual numbers? We are referring to monthly numbers.

When we discuss the customer churn, we refer to monthly. In the last year and still now, the churn is at an elevated level of above 3.5%. But what I was mainly referring to when I discussed the period of January to March is the fact that it is not only the churn that is kind of usual, either voluntary or non-voluntary, but also some of the churn was caused by our updates to the price lists and to the terms of use. So that was this component that was actually followed after our actions.

Yeah, so we are below for usual and unusual. Historically speaking, we used to have this 3% customer share monthly. When we changed prices more than a year ago, for two months, we saw 4%. Now we are below that. I mean, in February, when some customers reacted to... to what we changed, it was like in the area of 3.8, which is a lot, but it's something we expected, definitely. So yes, that's how it looks. And maybe that's important to stress the fact that what we are doing was changing some things in the terms of the customers were abusing our policy in terms of use of our products and they were not profitable for us because of that.

There is another question from David. On a related note, are you using AI in terms of new revenue opportunities or opportunities to cut costs? So actually, for us, it is both. First of all, since the beginning of the last year, AI helped us, among others, to optimize the way we work at the company. So we were, first of all, investing in terms of AI, also developing the product. So far, for LiveChat product, the AI features that are in place there are not sources of new revenue. This is something that we have, for example, tried to solve with this one AI assistant to actually showcase the usage of AI in the product. But for chatbot, it is actually now the better numbers, the better satisfaction guaranteed by AI usage.

Question from Leonard Drake. Greetings from Sweden. Great to have you here, Leonard. We're always happy to see you at our webinars. Your growth seems in some ways to have reached some sort of stagnation. What do you address this to and tell, for example, any competitors taking market share? What are your key focuses going forward to drive future initiatives? Keep up a good job and look forward to follow your future. I mean, we really appreciate that. Yes, I mean, definitely. I mean, the current dynamics, it's not which we're really happy about. I mean, definitely. The last quarter, the January-March quarter, however, was much better than the previous two previous quarters. So, of course, we're happy to see better, even not as good as we'd like, but better results. At the beginning of the road, I mean, the first thing The first thing which we are doing is these things we are doing I would say, to improve our business, our price list, to concentrate on customers who really bring value. So I'm referring to to this optimization process, we started. So what we did in that quarter, in the last quarter, was the beginning of the process. We launched the process and this process will be, we have roadmaps. for what we want to achieve in some next two or three quarters. So we definitely want to clean some offering some plans which are not offered anymore, which are legacy plans. We want to reduce the number of the customers who are abusing our products. So we are concentrated on that and I think there is still a lot of potential. I mean definitely there is a lot of potential in the terms of the RPO. So we should be able to allot much more to the live chat RPO in the coming quarters. The open question is what the price is in the terms of customer churn. So how many customers which live because of that. But nevertheless, I believe that the results, the final results, which will be visible on the MRR will be positive and it will be substantial, like it was in the last quarter. But even without that, it's something we have to do. It's something which is required to do to be able to proceed further. And saying that we work on some new things and maybe because that was something we were discussing last quarter. Yes, we're working on some new things. We're working on some new revenue streams. And yes, in the next quarter, we'll be able to show you some new revenue stream. some new, let's say, product or a way to monetize what we have in store already. I'm not saying that that would be a huge thing from day one, but something we are very excited about, something which is a very interesting initiative for us. And we're working on some other things which can happen or may not. but we have some new initiatives we are working on.

Now we have another two questions from an anonymous attendee. What are your capital priorities? And the second one, how is the competitive landscape now? Do you see newer competitors? So I might start with the second one. In terms of the competitive landscape, We do not see many new competitors. It is quite as it was in the last couple of quarters. Definitely there is slightly more competition in terms of the digital presence of particular providers. And of course, AI branding of the products is of greater importance in terms of showcasing or showing the products. However, especially when we look into the reasons of churn, for example, because that be indicative of whether there are some competitors attracting our customers. We do not like no specific names stand out from others. And in terms of our capital priorities, well, we are a product company, so the development of the product is the key. We have some investments in the data, so combining the sources of data at the company. And also, of course, AI capabilities, especially with chatbots. This requires some additional capital, but there are no extensive or especially additional capital needs that we have now.

We don't plan, definitely, we don't plan to raise any capital, no. We confirm, as for now, the dividend policy is confirmed, so nothing to declare, nothing new here. The same participant, thank you both and congrats on the results. Thank you all, definitely. we'd like to achieve more. I mean, our ambitions in the terms of the growth of dynamics are definitely higher. The last year was flat, really. If you look quarter on quarter on quarter, So I think we should definitely be able to improve annual dynamics in coming quarters. Of course, any statement regarding the future is, you know, there's always some uncertainty. It's not like the forecast, but definitely something we really believe that is achievable. Regarding headcount, are you currently stable or are you anticipating any further reduction in line with what you reported in the last quarter? It looks like stable. Probably we're going to be stable. We have some open position. There is some rotation. So probably we're going to be more or less stable in the coming quarters.

Then again, same person. You mentioned that the number of customers paying for all four products is now 59 and plus 10 of those were added in Q4 alone. Were the 10 new customers which signed up for all four at the same time or were these 10 existing customers that added one or more products to get to four total? It's actually a combination of both, especially when the sales team discusses the contract with the potential customers, then that's the best time to upsell or cross-sell the products. So we had definitely some customers like that. Marcin, do you know if out of those 10 were new customers.

Definitely, some new customers here as well. So, yes, that's the mix, and I don't know the exact split, actually. Sorry for that. But thank you for bringing that, because there is a lot of potential here. We're definitely not very good at bundling. We try to improve. It looks like Helder's knowledge base is some natural bundle, but they will be merged. in the coming quarters. LiveChat plus Chatbot. Sounds like natural mergers. A bundle. LiveChat helpdesk? Not so natural yet, but we have some idea how to improve that link between these two products. So yes, we're happy for this 10th new customers with our products, although still not something which is objectively great results. We had also some nice upgrades during that quarter. We had one customer who added actually 100 new agents. So definitely good work from the sales team.

Another question. Good afternoon. I wanted to ask whether management expects revenue growth to accelerate over the next few quarters and could you give us more color on that?

Not a lot of color because we don't have official forecast. But as I said, last year was more or less flat, when you look quarter to quarter. Even looking just on what we expected to get from this optimization plan, we had definitely potential to improve annual dynamics in the coming quarters, at least when you look at MRR and US dollars dominated results. Because, of course, at the end of the day, we are reporting in zloty dollars exchange rate. It's not something we have control over. Radim Kramula. Next question. Thank you for the answer. Our pleasure. Any estimate from your side about the size of the market in the US that you are targeting? Is there still underpenetration in usage of similar products? Thank you. I think we had a very nice take last day from our sales team on that.

Definitely, the US market is very special to us because this is where we target. There are many businesses that are opened in the US annually. So there is definitely still room to provide such services as live chat to those customers. We still see that those customers that we have that start to use live chat are using this type of product for the first time. So, although we do not have statistics on that, our feeling is that there is under-penetration in the US market, but also in some other places as well.

We have this, we had, actually, last week, we had a quarterly status call with our sales team. And actually, we were told that we have at this moment. We have more discussion with companies who actually are interested in automation, but actually they don't think about AI. They don't think about bots. Actually, they're thinking now about moving from voice to text in order to add AI automation a few years time. Actually, what they're doing now, they're thinking about moving from voice to text. So yes, I don't know now if it's a huge trend or just a coincidence and just a few customers who appeared. But that's interesting. And definitely, this huge market is a growing market. That's the best opportunity we have.

There is definitely the trend for automation, not necessarily in favor of AI, but in terms of written text solutions, that's for sure.

Some of the customers are still very cautious about using AI, and I think that's a good thing. I mean really that it's great that some customers are very cautious about sharing data, about thinking about the safety of the data, about how the data is used. They also know that some regulations are coming. EA Act Neo is, I think it was, you know, passed. And with having this past AI Act, some lawyers still don't know exactly how it will look in the practice. So lots of question signs on the horizon. So it's great. that some companies are aware of that and it's also great that nevertheless some customers who are really behind in the terms of automation, in the terms of customer support are now thinking how to make that the next step. I really hope that that's a trend. The next question from Radim. You have also mentioned number of clients with all four products. Is this bounding at different RPU price? Would one assume that with more products used, the lower the churn you would see? I think that's the rule. I mean, that's the... very, very strong very strong tank rule you have in SaaS business. More products, lower churn. These customers are usual deals with the sales team. If you're dealing with the sales team, you can also discuss price. So if they were discussing price, maybe they got some some discount, but nevertheless the price is, you know, it's usually something which is discussed and really it's not always, even maybe not in most cases, the most important now. I mean, the most important for you is to being able to discuss what you can achieve. about KPIs you can have achieved having these products.

The next question is, can you tell why customers churn? Are you in touch with recent customers? Does your team investigate the reasons for why customers churn? Thank you. Yes, and well, I think it might be a good time to discuss that. Out of customer churn, we have two types of churn. One is voluntary, so that means when it is the customer who wants to quit. who wants to stop using the product. And in such case, if it's the case, we can ask the customer about the reasons of churn. And the most popular ones that we get is actually others. So a lot of different reasons, but out of those which are very specific is either lack of chats or not enough traffic on the website. So that means usually those customers would go to free solutions. Then we also have reasons such as closure of business or difficult changing the scope of the business. And that's in the last few quarters that's been up. Also, some of them are price increases, and this is usually a very small one, quite stable, although from time to time it increases, especially at the times when we touch the price lists. And so was the case at the beginning of this year when we did some adjustments. And also some of the customers leave for other providers. And so this is the churn that we can actually track but also there is a separate type of the customer churn which is involuntary and this is strictly connected to the fact that there is a problem with processing the payment and it may be because the card is invalid or there are not enough funds on the card and in such case the subscription ends. And we have no way of knowing exactly what happens, although this has been the case of increased churn for some Asian countries recently.

So yes, I think the biggest difference now between what we can see now during last year versus what we saw previously, if you look at the voluntary churn, I have a business problem, I'm out of the business, I am changing the profile of my business. The main difference is here, in that area. But of course, that's not the full picture, but that's where the difference is most visible. And we're very harsh for ourselves actually counting churn because we have also a lot of customers who are using LiveChat on a seasonal basis. Actually, we have a lot of returning customers each day and actually we count them in churn. So, yes, actually a lot of them are returns at some point. The next question, do you have any channel partners helping to sell your products?

And I'm going to combine that with another question, which is two questions down. So I'm going to read that out as well. I feel like there are many people with online businesses who could benefit from products such as LiveChat, but don't even know about the solutions like this exist and how these solutions could help them increase conversions. Would you consider sponsoring popular YouTubers with a large following of business owners to increase awareness? And this is something that our partner program does. So we indeed have a partner program where we share the revenue with a potential partner once they bring the customers. So they get a specific link. They do the marketing or they target the customers and if they bring the customers, we share the revenue. How much we share depends on the effectiveness or the number of customers that such partner converts. But it is indeed a very important source of new customers because it is roughly 25% of new customers come through that source.

Yes, so now it's the single most important channel of customer acquisition in the terms of the number of new customers. And if by any chance we have a popular YouTuber here, just look at our partner program, look at the text.com. and 30-step partners. And really, that's a good deal. Looking at the industry standards, you can get from 20% to 30% of the revenue we get from your customers, customers who came for us using your link. And that's a good deal. Really a good source of very sustainable income we will be very happy to share this revenue with you. So yeah, a good program and a growing program.

I think that the next three questions, again, I'm going to combine into one. So the read is, in late 2022, you were able to raise prices ARPU for live chat significantly without a material impact on total customer numbers. Are you planning any further similar step change in prices in the future, not including future prices optimizations? If not, why? Then another question was, how much can you increase ARPU in live chat via future optimizations in the coming quarters? And then, could you please explain what the optimization plan would entail in terms of actions? Would it be primarily turning off legacy plans and stopping customers from overusing the products? Thank you. So I think all those questions touch exactly the same. So our ability to change the prices and first of all, optimizations and what can we do? So our thinking is that first, instead of increasing the prices, For everyone, we have to ensure that we have a healthy customer base. So that means that, first of all, we checked where we have the margins in each particular plan. and where the actually usage of the product is the highest, but not necessarily bringing us money because actually the more chats a customer has, the cost of servers, for example, for us is higher. So we wanted to make sure that each and every customer is properly placed into a specific plan. And we started doing those things at the beginning of the year. The first thing we touched was the starter plan, the cheapest plan. Then we will continue to optimize other plans as well. Marcin mentioned that we will change those legacy plans. We have some old pricing plans still with some of the customers. We will be changing that. And also some legacy like pay per agent plans. few dozen remaining customers. So these things will be taken care of so that the entire customer base is on the same plans and same pricing plan. So once we do that, actually there will be two parts of that optimization. Our pool should increase But the cost of that will be, of course, the customer churn. So those who will not be satisfied with the changes will churn. And we are ready to accept such changes, provided that the overall impact on MRR will be positive. So some of the churn we will have to accept. And once that will be done, and there's quite a lot of things that can be actually done this year, we will start to reconsider the price increases.

Yeah, the next question is from... Okay. It's from... Hello, Svit. Great, absolutely great to have you here. From our shareholder, Srikant. Sorry for the spelling, Sri. I mean, it's great to have you here. For people from Poland, it's sometimes extremely difficult to pronounce this right. Maybe during our next one-to-one call, we make some classes, some exercises. Anyway, the question, across the four products, what is the percent of your customers are smaller employees than 100 employees versus enterprise employers? So I'm not sure if I had the very exact data on that. No, definitely looking at the... The customer base is still dominated by some very small companies. Do you think we can be more specific at this very moment?

The usual data that we give is that it's not against the size of the company, but against the size of what our customers are paying. Our top 50 customers represent 8% of our MRR, but that's not really answering the question about the size of those customers. So we would have to work on this data, I think.

Yes, we're looking at the number of the agents, obviously, and looking at the life chart, still some half of the customers, some 50% of the customers are paying for only one agent's account. So yes, definitely small businesses.

Then we have a question from Julian Roger. Hello, good work and thanks for your humility. I wanted to know if you're working on lost clients. Also, why do you think texts will be able to return to two digits growth in the future? So yes, of course, we are working with the churned customers. During some specific times of the year, we have bargains for the churned customers. We also target them. with, for example, our new developments or new products that we have. For example, that was the case with Open Widget. So, yes, we try to keep them into the loop, actually. Especially that some of the current customers are returning customers. We've discussed that on the Polish call that we have some seasonality in terms of the customers who are coming back to organize specific events, but also that use the product just for part of the year. So they are important clients as well for us.

Yes, of course, we are working on the huge numbers, on the big numbers here, so it's more or less automated in that area. We have the contacts for these customers and we have some offers for them, usually around At the autumn, before Black Friday, Saturday, Monday, we are coming with some special offer usually for them and we try to activate them. So yes, we're definitely trying to work with this group. And about this two-digit growth, definitely, you know, as I said, I mean, all the statements about future, no, it's definitely not like a very hard forecast, but I would say that last year was flattish and we can... We know what we want to achieve. We are RPO over the lifetime. And definitely, we think that the plan is ambitious, it's achievable, and the numbers should be substantial. The question is about the price we will pay on the churn side. So the question is on that side. But looking at the live chat RPO, we definitely have some plans and exact plans and we know what we want to achieve. And that should be a growth engine for the coming quarters. And that would be enough because really the last year wasn't really great when you look at the quarters. The question from Marcin Nowak regarding bundling is for a chatbot client that does not have a live chat solution. Hi, Marcin, once again. Actually, a lot of them. A lot of them, really. I think like in the area of 35% of the chatbots are only chatbot customers. One of the chatbot features is so-called chat widgets. Actually, you don't need a live chat. to use and you can integrate with Facebook Messenger as well. So you don't need live chat. At the same time, we have some other bots which are integrated with live chat.

Another question to follow up on your answer about the affiliate program. The limitations with these affiliate programs is that you are relying on people to find you and ask to be your affiliate. But I think you should consider finding YouTubers with large and high quality followings that can bring this solution to more people. I believe this would be a much better effective investment to grow your revenue base than other revenues of paid advertising like Facebook ads. Thank you for that.

Yes, of course. Thank you. We tried different things when it comes to paid customer acquisition. I mean, it looked like Facebook didn't work for us very well. Google Ads are making some sense for us. Facebook didn't work really well. But yes, I think you had your point. I mean, now... We're spending some money. We're spending some money on marketing. It's not like we are not really spending nothing. We spend some money for marketing. We spend more than we used to spend in the past. Not a lot of money, but more than the history. And actually... We rather don't try to target potential customers. We try to focus more on potential affiliates, potential partners. So yes, we try to spend more money to target this group. Historically speaking, YouTube didn't work great for us. We used to, for example, invest more than we're doing now for creating our own content, video content, but maybe we should try again. Definitely, we're looking for different opportunities. And I think the last question for today, the last question we have from David Nelson. Hello, David. I gathered the optimization stands for boost RPO plus remove loss-making misusers. Yes, that's definitely your point. Could you give a sense of what the potential improvement in profit per user is? I don't think so. I don't think that at this moment, especially that would be probably also... AI costs will be higher because the one we launched, so we probably spend more on the AI just for using, because our customers will use more, so actually what we gain from that optimization program we probably spend because we will have more AI research in coming quarters. Saying that being profitable is important for us and we will aim at the company's level 50% on net profit margins is something we'd like to say. It's not like that would be... most important focus to keep this profitability but with something we'd like to see on company's level. Of course, that's a lot of things which will impact that level of margins or level of profitability because that US dollar policy would be extremely important for that. But I would say that's some targets at some level. And I think we have still Luka, you have raised hands. Do you want to add something, ask some last question? No, no, sorry. No problem, no problem at all. So I think that's all the questions. Thank you very much. Thank you very much. Thank you for your patience. Thank you for being here. We'd be happy to answer all your questions you may ask in the future. Yes, Wuzia, do you want to?

No, no. Thank you for your time that you've spent with us.

Yeah.

And see you next quarter.

See you. Bye.