Text software plans actions to improve customer acquisition amid financial decline

"If we look at churn [customer loss rate - PAP ed.], we don’t observe anything specific. As in previous months, churn has significantly approached 3 percent, but in December, churn in the USA was slightly increased. Among other clients across all locations and geographies, there are no special trends," Investor Relations Manager at Text Lucja Kaseja told the conference.

The average revenue per licence (ARPL) for the ChatBot product was USD 144.3 compared to USD 148.1 at the end of September 2024 and USD 132.4 a year ago. For the HelpDesk product, ARPL was USD 210.2 versus USD 191.1 at the end of September and USD 140 a year prior.

As of the end of the third quarter of 2024/25 financial year, LiveChat had 35,508 paying customers, while ChatBot had 3,090 customers and HelpDesk had 1,321 customers.

"We are not optimistic about customer numbers in the coming months; they may improve slightly, but we definitely need some time to implement actions on our side to enhance customer acquisition," said Text's head of investor relations Marcin Droba.

"We also don’t believe that difficult market conditions will improve overnight," he added.

Lucja Kaseja highlighted that despite a decline in customer numbers, the company experienced positive growth in monthly recurring revenue (MRR).

"Part of this growth is related to upgrades from existing customers, and we are indeed seeing an increase in customers whose MRR value is rising. Another trend over the past 12 months is an increase in customers with at least two products; about 23 percent had two or more Text products last quarter, and now it's 27 percent," she added.

"We will be expanding our sales team. Our capabilities regarding large clients are growing, and we need to leverage them. We are aware that we need to communicate differently with these clients and want to have people on-site in the USA. We will also be more active offline," Droba stated.

Text estimates that for the third quarter of the financial year 2024/25, it received USD 21.43 million in payments, marking a year-on-year increase of 0.4 percent but a decline of 6.2 percent compared to the previous three months due to lower annual fee contributions relative to total payments from the previous quarter and year.

As of December 2024, the estimated value of monthly recurring subscription revenue for all products was USD 7.10 million, reflecting a year-on-year increase of 9.4 percent and a quarter-on-quarter increase of 0.9 percent.

This MRR figure does not include payments not covered by fixed subscription fees (such as additional ChatBot interactions and API as a Service).

By the end of December 2024, ARPL for LiveChat was USD 178.6, up from USD 173.9 at the end of September 2024 and USD 156.4 a year ago.

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