Text S.A.

Ladies and gentlemen, thank you for standing by, and I would like to welcome you to the discussion on text Q2 2025-2026 KPI conference call. The call today will be hosted by Marcin Droba and Wuzia Kaseya from the Investor Relations Department. At the end of the presentation, we'll have an opportunity to ask questions. So without further ado, I would now like to pass the line to Wuzia. Please go ahead, ma'am.

Good afternoon. Thank you for participating and for your interest in our company. Today, we will mainly focus on discussing the operational data presented in our current report, but we will also say a few words about our new product, TexApp, which had its official premiere on September 30th at the Context event dedicated to our clients. We warmly invite you to watch the recording available on YouTube. Until recently, we did not actively promote TextApp on text.com, yet we already secured our first paying customer, a key internal milestone to validate the process. We know the product works, we use it ourselves, and it already supports more than 700 organizations in their daily operations. The past quarter was challenging, as summer is seasonally weaker for acquisitions. In addition, we concentrated our efforts on text app amid persistently difficult market conditions. Beyond macroeconomic headwinds, changes in content search and the way Google presents search results, they have impacted not only our acquisition channels, but also our customers. We are adapting to these changes, acquiring, for example, clients coming from LLMs. but we are still in a period of continuous transitions in this area. At the same time, we note improvement in payment volumes and increasing the share of larger customers with MRR above US$500 in our business. The group already accounts for more than half of our business, a trend that should have a positive impact on our future metrics. As you can see on slide six, for the past one and a half year, our key metric MRR has remained relatively stable. The trends we observe in this regard also remain unchanged. Significant declines in the number of smaller customers are being offset by increases in RPL, average revenue per license, while declines in live chat MRR are offset by growth in newer products. The past quarter, July to September, was relatively weaker compared to several previous ones, although it was expected that the summer quarter would be more difficult. During this period, we recorded a decline in MRR compared to previous quarter. This result should not come as a surprise since in the quarterly reports, we stated that MRR was decreasing after the first two months of the quarter, although it still remains higher than a year ago. All products recorded an increase in ARPL, which did not fully compensate for the decline in the number of live chat customers. For this product, however, September was positive, with customer churn falling below 4% for the first time since November 2024. At the same time, acquisition of smaller clients still has not improved. A small technical note here. We have not changed the definition of MRR compared to previous quarters. However, we want to emphasize that MRR does not include per-usage payments, whose role in our business will grow. We will include them only if they are prepaid. Currently, such payments do not exist, but customers will gain this option in the future. In terms of payments received, we see improvement compared to the previous quarter. which raised concerns among some of you. We achieved 22.24 million US dollars in payments. Quarterly fluctuations continue to reflect varying levels of annual payments within the mix. Once again, slide eight shows you the growing share of larger customers in our business. We reached an important milestone here. Customers with MRR of 500 US dollars or more already account for more than half of our MRR. Another positive trend is the growing share of customers paying for more than one text product in total MRR. For many months, we have been seeing strong and steady growth in organizations using two or three or four of our products. Year over year, this increases as much as 11 percentage points. This demonstrates our transition from a single product company to a multi-product suite provider. Looking ahead, many of these organizations will migrate to TechsApp, which integrates live chatbot helpers with additional AI-driven automation. That is all we have to show today in terms of KPIs. but we would also like to briefly discuss TXT app. The vision for Suits Class Solution has been years in the making. After purchasing TXT.com in late 2022 and rebranding the company in 2023, since September this year, TXT.com has finally become a new customer acquisition channel for us, and we have a Suits Class Solution. To make this happen, however, we had to do enormous work, both in terms of development and in implementing very difficult structural changes. The migration process to a new cloud infrastructure took a year, and preparations lasted even longer. In our reports, you now see higher costs related to this area, but for us, it is a key investment, ensuring stability, reliability, allowing us to offer better products while removing the technical limits that previously restricted us. Naturally, we ourselves became the first user of TxApp. Since June, we also started inviting selected customers to use this solution. It is worth mentioning that TxApp is evolving and will continue to develop. At the end of August, we conducted a soft launch. Without marketing, spending or communication campaigns, we simply placed our solution online for trials. The first organically acquired trials were meant to confirm whether the onboarding system works, whether we are communicating its value well, and whether the first user understands it. And although we achieved our internal goal by acquiring our first organic paying customer by the end of September, we see a lot of room for improvement. The sales funnel requires optimization, conversion improvement, and nurturing. This is not a negative thing. It is a normal part of the business, and we launched TextApp softly, precisely to gather such insights. We are already introducing changes based on the experience, and we'll start promoting TextApp. Initially, very carefully and with controlled spending. Already, however, we see the number of trials growing. On one hand, we are satisfied and optimistic. On the other hand, we want to state clearly we need time before text.com becomes a major customer acquisition channel. This is not a task for one or two quarters. The most important thing for us is that we know text app works and works well. Although, as I said, we will keep developing and refining it. We know this because we use it ourselves and currently over 700 of our customers also use it. The feedback is very positive. We do not want to take up too much of your time. You will surely have questions. If someone has not watched context yet, we warmly invite you to spend 12 minutes watching the keynote. Here is a approximate preview of the new app. As you can see, very modern and importantly for our clients, a neat one. Let's recap. TextApp brings together in one place and one experience the functionalities of LiveChat, Helpdesk and Chatbot. but it is also a solution built with native AI in mind that takes intelligence and a major role of AI agents who can handle customer interactions, but also effectively act as members of our client teams. They help find information, can chat, assist in using our product features. Also, workflows are now part of the experience. Another very important part of our offering is the MCP server, which allows TextApp to be connected with an external AI assistant. We also offer outbound campaigns, enabling clients to take initiative and actively communicate with their customers. One of the clients testing TextApp from the very beginning has actually multiplied their chat volume, and chats from many of our clients they let me translate into revenue. The whole idea behind TechStack is to be a tool that drives business growth for our customers. Another key area is quality, which is ensured thanks to the new infrastructure. The new solution also comes with new pricing, important in light of changes in our philosophy. Our market is evolving quickly, including in pricing standards. LiveChat has a rather simple pricing model, pay-per-agent or pay-per-user. Its advantage is simplicity. In TextApp, we are introducing elements of pay-per-value or pay-per-usage models. This approach is actually becoming increasingly common. On one hand, the client pays for actual use and results. On the other, the provider earns more. but only if they deliver real value. The system also protects against situations where significant costs generated by a client are not covered by the price of the product. The prices is available on tech.com, but please remember, it will evolve and change. On slide 15, we show some fundamental differences between live chat pricing and text app pricing. In live chat, the use of AI features is included in the per agent price, and there are no payments directly tied to such elements as usage or data storage, which actually generate costs on our site. These elements, of course, appear in text app pricing. In the near future, customers will receive communication from a from us regarding migration to text app. This will be done in groups. Plans and prices clients currently pay will remain the same as before. However, in the future this will change and, of course, clients will be informed well in advance. We will, however, remain flexible in this regard. This may also be a good moment to mention that at the beginning of the week we changed live chat prices. Inside the plan, the per agent price increased from 24 to 25 US dollars, and the annual payment dropped from 20 to 19. In the team plan, the increase was $10 from 49 to 59. And in case of annual payment, it meant an increase from 41 to 49 per agent. And in the business plan, it was an increase from 69 to 89. and in case of annual payment, 59 to 79. These changes actually apply to new and returning customers. And that's all from us. Thank you for listening, and let's move on to Q&A session.

Thank you. Thank you very much for the presentation, Wojciech. We'll now be moving to the Q&A part of the call. If you are dialed by the phone and would like to ask a voice question, please press star 2. That's star 2 on your keypad. Alternatively, you may ask a voice or text question via the chat. We'll give a few seconds for any questions to come through. Okay, we have our first text question from Putipor. Based on the company's prediction for 2026-2027, what is the expected approximate number of active paying users of the text app?