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Ladies and gentlemen, thank you for standing by, and I would like to welcome you to the Discussion on Tech's Q4 2025-2026 KPI conference call. The call today will be hosted by Marcin Droga 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, everyone. Thank you for joining our webinar. We will now present and discuss both our operational data for the past quarter and our outlook for the upcoming months, of course, this time in English. First of all, please take a moment to read the disclaimers, especially those regarding forward-looking statements.

The entire presentation is already on the website. The recording and test group of the teaching will be available on our website.

Welcome to Context 25. I'm so glad you're here with us. I'm getting straight to the point. As you already know from the current report published last week on Thursday, the MRR at the end of March stood at 6.93 million US dollars. This means that during the quarter, the tax group's MRR decreased by 50,000 US dollars. This is a smaller decline than in the previous two quarters, but of course, it is not a reason to be satisfied. What matters, however, is what lies behind it. First and foremost, January and February were quite stable. As we reported in our February quarterly statement, and the MRR drop occurred in March. That month, we introduced some changes to our customer acquisition process, specifically some experiments, including redirecting leads from the chatbot.com website to the text app. This initiative provides us with a lot of necessary data, but we are still losing some of the leads along the way, although we see improvement almost every day. In February and March, we also observed an increase in customer churn, primarily due to unpaid subscriptions. We believe that especially in March, this is an early reaction to the planned end of grant fathering for existing live chat customers, which we started communicating to them precisely since the beginning of March. This is a move that will significantly impact our KPIs, especially starting from April and into the following quarters. The picture of the past quarter looks much better when we look at our cash flow, which is reflected in the payments received data. Here we have a 0.4% year-over-year increase and a 3.1% increase compared to the previous three months. This is the highest quarterly value recorded in this financial year, and the highest since Q2 of the 2024-25 financial year. Differences in the dynamics between MRR and payments received usually stem mainly from the distribution of annual payments. However, we are also in a situation where more revenue kind of leaks from our reported MRR. We are, of course, referring to payments received under post-pay-per-usage model. Here we see a significant increase, especially in payments for API usage. We'll reach a quarterly value of over a quarter of a million US dollars, up from the previous three months by over 160%. On slide six, we can see that the steady growth in the share of larger clients in our MRR. During this quarter, the share of customers with an ARPL over 500 US dollars increased by 1 percentage point. This is a favorable trend that should translate into better revenue retention over time, and this customer group stays with us longer and is more open to upsetting. The next slide shows how the share of customers paying for more than one product from the tech's portfolio is currently growing. In Q4, they already accounted for 38.8% of our MRR, 10 percentage points more than a year ago, and 1.6 percentage points more than in the previous three months. We are always thrilled to share our customers' taxi stories. This time, it's a brand very well known in Poland, STS, which handles half a million chats annually and does it phenomenally. The video mentions a satisfaction score of 82%, but right after the filming, the team bragged that they had reached 85%. An excellent result, made possible only with the best tools. You will find a link to the video in the presentation. STS uses four of our products, LiveChat, Chatbot, Helpdesk, and Knowledgebase. It is worth noting that our AI agents are doing great and constantly improving, achieving a resolution rate of 74% compared to the industry average of around 59%. For a human agent, this measure is usually between 70-75%, while other market players recently declared 60% as a success. Importantly, this average includes accounts that has not yet fully trained their AI agents on their own data. For customers who have completed the training phase, the results are even better, ranging between 80% and 90%. And for you to understand the metric, a CAD is considered resolved if the user receives a complete and certainly reported issue, the user raises no further concerns, and the interaction ends with no unresolved follow-up questions. The most important product updates this quarter relate to the agentic AI area and were rolled out in March. We enabled our customers to create multiple AI agents within a single workspace. And most importantly, we introduced custom skills feature. Thanks to this, a user can describe in natural language what a given agent is supposed to do and the AI will autonomously prepare the appropriate workflow, enabling the agent to execute specific tasks. Our work in the last quarter also involves many initiatives, often smaller projects that fit into a bigger picture. In our quarterly report, we mentioned, among other things, that our products are now available in the Microsoft Marketplace, that we obtain Meta Business Partner status and that we entered the marketplace of Kanji, a security app. In terms of security, we also partner with Hexnode, a device management and security company, and we are launched in their marketplace. Infrastructure changes have all translated to increased reliability and quality. We've returned to actively encouraging our customers to leave us reviews and feedback. And the results are already visible in various rankings and listings. This is very important also because it directly translates into credibility and visibility in AI models, where we see clear improvement. Of course, we still have a lot of work ahead of us in this area, and we will simply have to wait a bit to see the full effects of many of those actions. To sum up the quarterly picture, we recorded the best quarter in terms of payments received in this financial year. Unfortunately, we have an MRR decrease, though it's smaller than in the previous year, and it reflects the fact that a small but rapidly growing part of our business is not captured in MRR. In this quarter, the MRR decline is at least in part the result of our deliberate actions And as we mentioned them, you usually ask about new clients and the results of our sales department. This quarter, we signed several significant renewals, some of which included upgrades. The biggest ones concerned our key accounts were hundreds of agents working with our products. These are clients from industries such as biotechnology, forex, and iGaming. These renewals and upsells were made possible by our SLC2 certification. If we look at the labor costs of obtaining the certificate, they have fully paid off. For now, it mostly helps us play defenses, but we expect

Ladies and gentlemen, please stand by.

I lost my connection. I'm back. Hopefully you hear me well now. Yes, yes, we do. Okay, thank you. Sorry for those problems. Coming back to the topic I was just discussing, so the new clients. This quarter we acquired new clients across multiple countries and industries, and our strongest sector were education, including top universities in Singapore and New Zealand, finance and insurance with new clients from the US, and sports betting. And the last slide. On my side, in the next three quarters, the biggest direct impact on our operational networks will come from ending price grandfathering for live chat customers. As the new pricing for the existing customer base has been in effect since the beginning of the month. As you surely remember, at the end of September, we raised live chat prices for new customers. The price change varied across different plans, but on average, it was around 20%. As we said three months ago, the new pricing was accepted by the market and after a short, deep conversion rate returned to their previous levels. The end of grand tag ring pricing for live chat will likely translate into some increase in chain in short term, but we estimate the net effect should be significantly positive for our recurring revenues. We assume the largest impact on MRR will be recorded in the current quarter. The price changes will not affect customers using the text product or those whose annual contracts expire after 2026. We assume 2027 will be the year of migration to text. We are continuing our work on SOC 2 type on the SOC2 Type 2 certification, which will confirm that all implemented procedures are functioning as intended, and we are currently during the observation period. Starting tomorrow, the product operation under the working name TextUp will obviously become the text solution. The communication campaign associated with this brand is scheduled to begin in May. Please don't expect fireworks, by the way. There won't be a big bang at launch. It will be a safe, scalable process where budget decisions will be made based on data and results in specific channels. And a major event related to this campaign will take place in the fall. We will certainly be much more active in PR. After a long break, we have someone on board responsible for the Syriac. And we also want to start collaborating with industry influencers, among other things. The goal is to gradually and consistently build the strength and visibility of the text brand. Realistically, the text of this campaign will be visible in our KPIs by the end of the calendar year. This aligns with what we have been saying at our previous meetings. This is not a sprint run. It's the start of marathon. Also, in subsequent quarterly reports, we have emphasized that text.com will not be a significant acquisition channel in the coming months. Looking ahead to the next three quarters, the biggest impact will come from ending the lifestyle price run furthering. Currently, a slightly stronger dollar is also working in our favor. We have also stabilized our infrastructure costs, which should actually be slightly lower in Q4 of the past financial year, the one that has just ended. Of course, we have to keep in mind that this is a dollar-denominated cost for us. Marketing and customer acquisition costs will grow, but budgets for individual channels will be closely tied to observed results. Thank you very much for your attention this time. And now we invite you to ask your questions.

Thank you. Thank you very much for the presentation, Wuzia. We'll now be moving to the Q&A part of the call. If you are dialed by the telephone 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 a text question via chat. We'll give a few seconds for any questions to come through. Okay, we have received a text question from Maximilian Rofaga from Family Office. Based on press coverage, it looks like competitors like Sierra and FinAI are growing substantially. Can you talk about their target customers and whether they are taking away potential customers of yours or if you're going after different customers?

Hi, hello, Maximilian. Marcin Rowa here. So, thank you for your questions. Thank you for being with us. So, of course, I don't want to really comment on Sierra or Intercom or any of our competitors. Definitely, we had a very good quarter in terms of as Wojciech stated in the presentation, in the term of defense. So actually we prolonged our very important deals, we kept important customers who actually had their deals close to the end, So looking at that, that was very good, very solid quarter. Of course, we are not growing, we are not as successful at this moment. at the acquisition, that was not a great quarter in that term, but we will be, I think, looking at the future, looking at our plans when it comes to this PR, to this communication offensive, which will start in the May, at some point will be more aggressive when it comes to addressing that customers which are now using some competitors' solutions. We have some arguments which should help us, like one of these arguments can be a great result of our AI agents we just presented. So at some point we'll be more aggressive when it comes to that kind of approach. But looking at the last quarter, I'm very convinced that we didn't lost any notable customers to our peers.

Okay, thank you. Thank you very much. Another text question from Maximilian. What are your main growth channels going to be for text app, given that your previous CEO strategy will likely not work anymore, given the decline of search traffic overall?

And sorry, we use very quick when it comes to the answer, but I will try at least partly to answer that question, quoting our CEO who actually stated on X that answering very similar question that internet hasn't really changed in how growth works over the last 20 years. Only the platforms have shifted when the underlying mechanics taste the same. So we have to basically repeat all the work we did over the last 20 years. We know how to do that. Actually, that was also not a bad quarter when it comes to our visibility on AI models. So we definitely work on that. We will be much more active when it comes to, for example, to PR, also when it comes to cooperation with some influencers in the coming months. But basically it's very similar work, but just in different spaces. Also, I wouldn't agree with the statements that CEO is not working at all. It's still working, it still helps us, but not at the scale we used to see. That's obviously a very important change, and you'll witness many changes in the coming years, probably.

We will definitely be more active with our brand and as I mentioned we have a new PR person on board so more of such activity will be visible. Also We will be, similarly as in this presentation, we will be more sharing the examples of brands and how they work with our products because this is something excellent that is being done and some of the customers have excellent stories. It's just our role to pick them up and showcase. So this type of activity will be definitely something that will be seen in the next couple of months.

So some things changing. For example, TPR public relations wasn't so, so important for us, historically speaking. But media coverage, media publication are probably now most more important as they are source of the knowledge, source of reputation for the AI models. Some things changes, but basically the work is very similar.

Okay, thank you. Thank you very much. Another question from Maximilian. Can you share traction of TechSnap in terms of retention, usage, etc.? Is it performing better than your legacy solutions? This seems the most crucial point, but you share very little information in your communications.

We have not even, as you correctly spotted, detailed information about text app, especially what you have mentioned, retention or usage. This is because we have not run a large-scale conversion from the legacy product. We are getting customers each month in the text app. However, these are not very large numbers, so we still do not have such history of data for those users.

So, yes, of course, as I should have said, it's still... We are aware that what we are seeing now, what is now happening in the text, is not one-to-one translatable, I don't know if that's the correct wording, translatable to that same solution, to the text, in the future, because there will be also some changes in the text, we just added like crucial things in the area of AI agents, and we migrate to take the very specific group of the customers of legacy products. So all these KPIs are very important for us, but I think in the higher communication it wouldn't be so valuable to owners to really share too much information because all these KPIs will be subject to the huge changes in the coming quarters.

Okay, thank you. Thank you very much. Maybe just a reminder to the audience, if you would like to ask a voice question and you're connected via the telephone, please press star 2 on your phone keypad and wait for your name to be prompted. If you're a Dalian via the web, you can also request to ask a voice question or send your question to the text. I'll just give a moment or so for any additional questions to come in.

As you may know, we had a Polish webinar. Before that webinar, we obviously had some more questions, but if I look at the whole picture, I don't think we share really important, substantial information, which I think all the important things we We declare, we said, we shared today, we are already told. We were asked about dividend policy is confirmed. we were asked about margins of the paper usage payments and I think it's important to stress that if you look at the API, revenues, that revenues actually, we had costs related to that revenues before, we just started to monetize that subjects, in the future it will be very important, that most important part of paper research, paper results model, will be AI agents. That's the huge area. We definitely assume very solid margins. in that area, but we will learn in the future what market will accept, what competition landscape look like, so we will observe how it works. But when we think about how current pricing is working, we definitely assume that margins on that part of our business will be at least solid.

Okay, thank you. Thank you very much. At this point in time, I'm seeing no further questions from the audience, so I'm just going to pass the line to the Investor Relations Team, so I'll pass the line back to say their concluding remarks.

Well, we basically want to thank you for listening to our presentation. As you have seen, there is a lot of things that are happening. As we mentioned, small things are changing, but are part of the much bigger picture. There are some exciting things that will be in the future, but also we constantly do day-to-day work for the numbers to be as they are. Thank you very much for your attention.

Thank you very much.