Text S.A.

Ladies and gentlemen, thank you for standing by, and I'd like to welcome you to the discussion of tax Q3 2025 and 2026 KPI conference call. The call today will be hosted by Martin Droba and Ucha Kaseja from the Investor Relations Department. At the end of the presentation, we'll have an opportunity to ask questions. So without further ado, I'd now like to pass the line to Ucha. Please go ahead, ma'am.

Good afternoon, everyone. Today is January 5th, a day when most folks are still enjoying their holiday break. Nevertheless, we are already in the second trading session on the Warsaw Stock Exchange this year, and on Saturday, we published data that we wanted to comment on promptly. We also wanted to get into interaction simultaneously with all interested investor groups. On that note, we kindly ask, especially individual investors, to review the disclaimers, particularly those concerning forward-looking statements. Our environment is challenging and highly volatile. We are adapting to it and we ask you to keep this in mind. Dialogue with investors is very important to us. As a side note, last year, our IR team spent six full days and seven hours That is 151 hours in total, talking to you via live chat alone. Interestingly, the year before that, it was just 84 hours. It is also worth highlighting that our CSAT scores of 93.7% is an excellent result that we wish every customer support team could achieve. Let me move on to the data on Q3 of our financial year. MRR as of December 31st last year amounted to 6.98 million US dollars. This represents a 1.7% decline year-over-year and 1.1% decline quarter-over-quarter. The result is in line with and even slightly better than we expected in November when we indicated that the in the half-year report that such a decline was possible. MRR is a point-in-time metric, not a period metric. In our business, the end of the year is a period when fewer new customers join and many existing ones make cutbacks. We defended the $7 million level until the end of the year. We fell below it on December 31st, the last day of the year. But data for January 1st already showed upgrades that brought us back about 7 million USD in MRR. Payment data showing exactly how much customers paid us looks slightly better for the Q3 financial year quarter. We recorded 21.89 million USD payments in the previous October-December. This is 1.6% less than in the previous three months but a 2.1% increase compared to corresponding periods a year ago. In the third quarter of the financial year, another important trend for us continued, the growing share of larger customers with MRR of at least US$500 in our overall business. Such customers now account for 51% of total MRR, an increase of 1 percentage point from the previous quarter and as much as 8 percentage points year over year. This is a positive trend that will benefit our business going forward. This slide will not stay with us much longer, but for now we continue to show the share of customers paying for more than one of our products in total MRR. The share increased by 10 percentage points over the year to 37.2% at the end of December. To summarize the October-December quarter, we recorded a small MRR decline, which of course is not pleasing, but it is consistent with our expectations. It is the result of continuing long-standing trends, a decline in number of smaller customers, largely offset by solid revenue retention and the acquisition of larger customers. At the same time, we achieved a solid level of payments received with 2.1% year-on-year increase. Worth noting here are payments for the use of our API. We improved the accessibility of the solution in our product, resulting in nearly 60% quarter-over-quarter increase for the first time. API revenue exceeded US$100,000 in this area. This is the effect of better visibility of the functionality in our product. Moreover, January, which already includes booked API usage fees for December, shows continuation of this excellent trend. Please note that the customers pay for API usage on a paper usage post-paid model, so these amounts are not included in monthly recurring revenues. Last month, we obtained Sec2 Type 1 certification, which confirms the highest level of security and quality we offer our customers. This is also something our sales team has been eagerly awaiting, and we are convinced it will help secure larger contracts in the future. This was also a quarter of significant testing for a text app, which met our internal goals. We confirmed that the solution not only works, but also we are ready to convert leads potential customers who start testing it. Of course, this was not yet the scaling stage, but that stage is getting closer. We can say we have internally confirmed readiness for it. Q3 financial year quarter was also a quarter in which we improved our liquidity position. We received a total of nearly 30 million for the result in tax refunds and fully repaid the short term bank loan. Of course, our financial year is not yet finished and we will summarize it comprehensively in June, but looking very quickly at the 2025 calendar year, it was obviously not satisfactory in terms of achieved KPIs. MRR declined 1.7% over the period while payments received, the actual money we received from customers amounted to $88.42 million US dollars, essentially flat year over year. We are talking in dollars here because the decline in the value of US currency significantly worsens the results reported in Polish Reuters. However, looking at what happened inside the company, there are achievements we can and should be proud of. During the year, we built from scratch a world-class new product that already supports our customers and extracts new ones. A very difficult and lengthy cloud infrastructure overhaul project is already improving the quality of our services and delivering uptime of practically 100%. Visibly better than many top competitors. Our quality and highest security standards have been confirmed by SOC 2 Type 1 certification. And during the ongoing year, we expect Type 2 certification, which confirms that all our procedures are effectively implemented. We view our business as safe and stable, as confirmed by the Management Board's decisions regarding dividend policy. In February, we will pay the first advance towards the expected dividend for the current financial year in the amount of 1.15 Polish zlotys. This amount reflects the net profit level in the first half of the year and expenditure on projects that are not yet completed. and it was the highest possible level under the Polish Commercial Companies Code. To summarize, 2025 was a year of investment and product development for us. In 2026, we will continue to broaden our product offering, yet we will focus more on reaching customers, acquisition, distribution, and visibility of products. You will see, among other things, the results of the work we have done with a renowned PR agency on communication, conveying our mission and product value and branding. I think we will surprise you. I want to emphasize that we look into the future with optimism, but we do not underestimate the challenges and do not want to encourage anyone else to do so. The most important challenges still include companies' concerns about implementing AI solutions and difficulties with their monetization, changes in content positioning and search on the internet, and the continuing difficult situation of smaller companies, especially in our key market, the United States. For us, the most important thing is that we know we create value for our customers. Above all, we genuinely help them earn more online, and we will Communicate this very strongly in the coming period. Thank you once again for your attention and we invite you to questions.

Thank you very much for the presentation, Musa. We'll now be moving to the Q&A part of the call. If you're dialing in by the telephone and you'd like to ask a question, please press star two. That is star two on your keypad if you're connected from the phone. You may also ask a voice or text question if you're connected from the web. We'll give it a few more seconds for any questions to come through. Just once again, it's star two if you're connected from the phone, and if you're connected from the web, you can send a text or request to ask a voice question. We'll give it a few more moments for any questions to come in. Okay, so we have a few questions from Francesco Bracchi, a private investor. First of all, I'd like to thank you for your transparent communications. I have three questions. In the 2025 and 2026 first half results you reported at page eight, the team increased by 24 people year on year. Can you please disclose which areas were affected? how many programmers versus sales. You also reported new infrastructure improved the quality of your services and gaining new capabilities in offering development, particularly for enterprise class customers. but it did not translate into cost reductions. Do you have any cost reduction initiative? There are a few more questions, but perhaps you can, if you'd like, Wuxia or Marcin to take those, or if you'd like, I can read the rest.