Half Year 2027 Text SA Earnings Call
Operator 2: Ladies and gentlemen, thank you for standing by. I would like to welcome you to the discussion on Text Q2 2026-2027 KPI conference call. The call today will be hosted by Marcin Droba and Lucja Kaseja from the Investor Relations Department. At the end of the presentation, we will have an opportunity to ask questions. Without further ado, I would now like to pass the line to Lucja. Please go ahead, ma'am.
Operator: Ladies and gentlemen, thank you for standing by. I would like to welcome you to the discussion on Text Q2 2026-2027 KPI conference call. The call today will be hosted by Marcin Droba and Łucja Kaseja from the Investor Relations Department. At the end of the presentation, we will have an opportunity to ask questions. Without further ado, I would now like to pass the line to Łucja. Please go ahead, ma'am.
Speaker #1: Ladies and gentlemen, thank you for standing by. I would like to welcome you to the discussion on tech's Q2 2026-2027 KPI conference call.
Speaker #1: The call today will be hosted by Marcin Droba and Łucja Kaseja from the Investor Relations department. At the end of the presentation, we'll have an opportunity to ask questions.
Speaker #1: So, without further ado, I would now like to pass the line to Łucja. Please go ahead, ma'am.
Speaker #3: Good afternoon, everyone. As always, it's great to meet you and talk about the latest data and developments at the tech group. As usual, we also ask you to take a moment to review the disclaimers related to this presentation.
Lucja Kaseja: Good afternoon, everyone. As always, it is great to meet you and talk about the latest data and developments at the Text Group. As usual, we also ask you to take a moment to review the disclaimers related to this presentation. The full presentation, together with the recording and transcript, will, of course, be available on our website by the end of the day. Today, we will focus mainly on the numbers we published in Friday's current report. First and foremost, MRR and payments received in Q2 of financial year 2026-27. Just to avoid any confusion, payments received are not equal revenue for the quarter. Before we go into the numbers, I would like to spend a few minutes talking about us, our products, and our customers. As some of you may remember, monetizing and converting online businesses has always been at the heart of LiveChat.
Łucja Kaseja: Good afternoon, everyone. As always, it is great to meet you and talk about the latest data and developments at the Text Group. As usual, we also ask you to take a moment to review the disclaimers related to this presentation. The full presentation, together with the recording and transcript, will, of course, be available on our website by the end of the day. Today, we will focus mainly on the numbers we published in Friday's current report. First and foremost, MRR and payments received in Q2 of financial year 2026-27. Just to avoid any confusion, payments received are not equal revenue for the quarter. Before we go into the numbers, I would like to spend a few minutes talking about us, our products, and our customers. As some of you may remember, monetizing and converting online businesses has always been at the heart of LiveChat.
Speaker #3: The full presentation, together with the recording and transcript, will of course be available on our website by the end of the day. Today, we will focus mainly on the numbers we published in Friday’s current report.
Speaker #3: First and foremost, MRR and payments received in Q2 of the financial year 2026–2027. And just to avoid any confusion, payments received are not equal to revenue for the quarter.
Speaker #3: But before we go into the numbers, I'd like to spend a few minutes talking about us, our products, and our customers. As some of you may remember, monetizing and converting online businesses has always been at the heart of LiveChat.
Speaker #3: This was really the original idea behind the product. Over time, of course, our customers discovered many other use cases where we could help them.
Lucja Kaseja: This was really the original idea behind the product. Over time, of course, our customers discovered many other use cases where we could help them, and that is fantastic. This original use case has always remained very important to us, and today we are putting a lot of focus on it again. One reason is that technology now makes it possible to do much more in this area than ever before. Text is particularly powerful here. It brings together, in one place, key data from customer systems, their e-commerce platforms, multiple communication channels, and of course, the capabilities of AI. What we want to show is a couple of examples of our customers. A great example of what can be achieved with Text is Nuvoo, an e-commerce company from Finland. Nuvoo sells refurbished computers to customers and businesses in Finland, Sweden, and Germany.
Łucja Kaseja: This was really the original idea behind the product. Over time, of course, our customers discovered many other use cases where we could help them, and that is fantastic. This original use case has always remained very important to us, and today we are putting a lot of focus on it again. One reason is that technology now makes it possible to do much more in this area than ever before. Text is particularly powerful here. It brings together, in one place, key data from customer systems, their e-commerce platforms, multiple communication channels, and of course, the capabilities of AI. What we want to show is a couple of examples of our customers. A great example of what can be achieved with Text is Nuvoo, an e-commerce company from Finland. Nuvoo sells refurbished computers to customers and businesses in Finland, Sweden, and Germany.
Speaker #3: And that's fantastic. But this original use case has always remained very important to us. Today, we are putting a lot of focus on it again.
Speaker #3: One reason is that technology now makes it possible to do more, and much more, in this area than ever before. And tech is particularly powerful here.
Speaker #3: It brings together in one place key data from customer systems, their e-commerce platforms, multiple communication channels, and, of course, the capabilities of AI. What we want to show is a couple of examples of our customers.
Speaker #3: A great example of what can be achieved with tech is Nuvvo, an e-commerce company from Finland. Nuvvo sells refurbished computers to customers and businesses in Finland, Sweden, and Germany.
Speaker #3: Customer service has always been very important to them. They have even received awards for it. But in April this year, they came to us with a very specific problem.
Lucja Kaseja: Customer service has always been very important to them. They have even received awards for it. In April this year, they came to us with a very specific problem. They wanted to maintain that high level of customer service outside their team's working hours. Initially, the AI agent in Text simply handled website traffic after hours, but once the team became more comfortable with the new tool, they started using campaigns and what we call custom skills. That had a huge impact on sales generated through chat. In the example we are showing in front of you, just four months later, the AI agent is handling more than 70% of all chats. Sales generated through the AI agent have grown more than fivefold. Harri, who is the manager responsible for the project, particularly appreciates the reporting capabilities behind our product.
Łucja Kaseja: Customer service has always been very important to them. They have even received awards for it. In April this year, they came to us with a very specific problem. They wanted to maintain that high level of customer service outside their team's working hours. Initially, the AI agent in Text simply handled website traffic after hours, but once the team became more comfortable with the new tool, they started using campaigns and what we call custom skills. That had a huge impact on sales generated through chat. In the example we are showing in front of you, just four months later, the AI agent is handling more than 70% of all chats. Sales generated through the AI agent have grown more than fivefold. Harri, who is the manager responsible for the project, particularly appreciates the reporting capabilities behind our product.
Speaker #3: They wanted to maintain that high level of customer service outside their team's working hours. Initially, the AI agent in tech simply handled website traffic after hours.
Speaker #3: But once the team became more comfortable with the new tool, they started using campaigns and what we call custom skills. That had a huge impact on sales generated through chat.
Speaker #3: In the example we're showing in front of you, just four months later, the AI agent is handling more than 70% of all chats. All sales generated through the AI agent have grown more than fivefold.
Speaker #3: Harry, who's the manager responsible for the project, particularly appreciates the reporting capabilities of our product. He can see exactly which chats led to sales and measure a wide range of other parameters.
Lucja Kaseja: He can see exactly which chats led to sales and measure a wide range of other parameters. Last Thursday, we had an online meeting with Nuvoo for the entire Text team. We showed them some of the new capabilities and what will be soon available in Text. I have to say, we used to think that Finns are a rather reserved nation, but this time they showed some very genuine enthusiasm. Probably, we should not really quote them literally here. Another example, we are very proud that we supported the organization of Winter Olympic Games with excellent results. You can read more about this in the testimonial on our website. We do not want to go into much detail here. What we want to show is the scale and prestige of the projects that can be supported with Text. There is also another important point.
Łucja Kaseja: He can see exactly which chats led to sales and measure a wide range of other parameters. Last Thursday, we had an online meeting with Nuvoo for the entire Text team. We showed them some of the new capabilities and what will be soon available in Text. I have to say, we used to think that Finns are a rather reserved nation, but this time they showed some very genuine enthusiasm. Probably, we should not really quote them literally here. Another example, we are very proud that we supported the organization of Winter Olympic Games with excellent results. You can read more about this in the testimonial on our website. We do not want to go into much detail here. What we want to show is the scale and prestige of the projects that can be supported with Text. There is also another important point.
Speaker #3: Last Thursday, we had an online meeting with Nuvvo for the entire tech team. We showed them some of the new capabilities, and what will soon be available in tech.
Speaker #3: And I have to say, we used to think that Finns are a rather reserved nation. But this time, they showed some very genuine enthusiasm. And probably we should not really quote them literally here.
Speaker #3: Another example we are very proud of is that we supported the organization of the Winter Olympic Games with excellent results. You can read more about this in the testimonial on our website.
Speaker #3: We don't want to go into much detail here. But we want to show you what we want to show you is the scale and prestige of the projects that can be supported with tech.
Speaker #3: And there is also another important point. Tech was selected by some of the leading experts in this field. They told us that the capabilities of our API are unique, and they are already thinking about how they can use them in future projects.
Lucja Kaseja: Text was selected by some of leading experts in this field. They told us that capabilities of our API are unique, and they are already thinking on how they can use them in future projects. I would also like to share two more customer stories. Hopefully, we will be able to talk about both of them publicly very soon. For now, however, we are still waiting for formal marketing approval. But both stories have a happy ending. They also show some of the challenges we still need to address and why our numbers are not yet where we want them to be. The first story is about a customer from Australia. Initially, they told us that they are planning to leave LiveChat. The exact reason was price increase that they got.
Łucja Kaseja: Text was selected by some of leading experts in this field. They told us that capabilities of our API are unique, and they are already thinking on how they can use them in future projects. I would also like to share two more customer stories. Hopefully, we will be able to talk about both of them publicly very soon. For now, however, we are still waiting for formal marketing approval. But both stories have a happy ending. They also show some of the challenges we still need to address and why our numbers are not yet where we want them to be. The first story is about a customer from Australia. Initially, they told us that they are planning to leave LiveChat. The exact reason was price increase that they got.
Speaker #3: I'd also like to share two more customer stories. Hopefully, we'll be able to talk about both of them publicly very soon. For now, however, we are still waiting for formal marketing approval.
Speaker #3: But both stories have a happy ending. However, they also show some of the challenges we still need to address, and why our numbers are not yet where we want them to be.
Speaker #3: The first story is about a customer from Australia. Initially, they told us that they were planning to leave LiveChat. The exact reason was the price increase that they received.
Speaker #3: But they also told us that they were looking for alternatives because they couldn't achieve everything they wanted with LiveChat due to some certain missing functionalities.
Lucja Kaseja: They also told us that they were looking for alternatives because they could not achieve everything they wanted with LiveChat due to some certain missing functionalities. Then we showed them Text, and it turned out that Text could not solve the problem. Sorry. It turned out that Text not only was able to solve the problem they had, but also it could do much more. They were achieving exceptionally strong results with AI agent. Today, after moving from LiveChat to Text, this customer is paying several times more than before, including a significant usage-based component. They have signed a one-year contract and are very happy with the results. Remember, this whole conversation started because they thought our product was too expensive. This is a very good example of something we need to improve.
Łucja Kaseja: They also told us that they were looking for alternatives because they could not achieve everything they wanted with LiveChat due to some certain missing functionalities. Then we showed them Text, and it turned out that Text could not solve the problem. Sorry. It turned out that Text not only was able to solve the problem they had, but also it could do much more. They were achieving exceptionally strong results with AI agent. Today, after moving from LiveChat to Text, this customer is paying several times more than before, including a significant usage-based component. They have signed a one-year contract and are very happy with the results. Remember, this whole conversation started because they thought our product was too expensive. This is a very good example of something we need to improve.
Speaker #3: Then we showed them text, and it turned out that text could not solve the problem—sorry. It turned out that text not only was able to solve the problem they had, but also it could do much more.
Speaker #3: They were achieving exceptionally strong results with AI agents. And today, after moving from live chat to text, this customer is paying several times more than before, including a significant usage-based component.
Speaker #3: They have signed a one-year contract and are very happy with the results. And remember, this whole conversation started because they thought our product was too expensive.
Speaker #3: And this is a very good example of something we need to improve. We need to do a much better job of showing the value of text to customers who simply don't have the time to explore the product themselves.
Lucja Kaseja: We need to do a much better job of showing the value of Text to customers who simply do not have the time to explore the product themselves. The second story I want to tell you about is actually about a new customer. This one is particularly prestigious for us. You could say this is a customer, an industry expert, a technology company with a very good understanding of the market. They looked at several competing solutions. All of them were considered top-tier products, and they chose the one they thought was the best. Obviously, we would not be telling you this story if it was not Text, and that makes us very happy, but it also highlights our biggest challenge. We believe we have one of the best, if not the best, products in our category, but we still do not have the level of visibility that this product deserves.
Łucja Kaseja: We need to do a much better job of showing the value of Text to customers who simply do not have the time to explore the product themselves. The second story I want to tell you about is actually about a new customer. This one is particularly prestigious for us. You could say this is a customer, an industry expert, a technology company with a very good understanding of the market. They looked at several competing solutions. All of them were considered top-tier products, and they chose the one they thought was the best. Obviously, we would not be telling you this story if it was not Text, and that makes us very happy, but it also highlights our biggest challenge. We believe we have one of the best, if not the best, products in our category, but we still do not have the level of visibility that this product deserves.
Speaker #3: And the second story I want to tell you about is actually about a new customer. This one is particularly prestigious for us. You could say this is a customer, an industry expert.
Speaker #3: A technology company with a very good understanding of the market. They looked at several competing solutions; all of them were considered top-tier products, and they chose the one they thought was the best.
Speaker #3: Obviously, we wouldn't be telling you the story if it wasn't text, and that makes us very happy. But it also highlights our biggest challenge.
Speaker #3: We believe we have one of the best, if not the best, products in our category. But we still don't have the level of visibility that this product deserves.
Speaker #3: And with that, we can now move on to the numbers and look at what we achieved during the quarter which has just ended.
Lucja Kaseja: With that, we can now move on to the numbers and look at what we achieved during the quarter which just has ended. Back in our quarterly report for Q1 in August, we said that MRR declined during the first 2 months of the quarter, but it still remained above the level from a year ago. September finally stopped that downward trend. We ended the month flat. So overall, MRR at the end of the quarter declined by 2.3%, while still growing by 3.3% over the year. This result is directly related to what I was talking about a moment ago. Our visibility is still not where we want it to be. As a result, customer acquisition remains weak, and this is the case despite the positive trend we have seen in customer churn over the last 3 months. Our customer churn rate fell clearly below 4%.
Łucja Kaseja: With that, we can now move on to the numbers and look at what we achieved during the quarter which just has ended. Back in our quarterly report for Q1 in August, we said that MRR declined during the first 2 months of the quarter, but it still remained above the level from a year ago. September finally stopped that downward trend. We ended the month flat. So overall, MRR at the end of the quarter declined by 2.3%, while still growing by 3.3% over the year. This result is directly related to what I was talking about a moment ago. Our visibility is still not where we want it to be. As a result, customer acquisition remains weak, and this is the case despite the positive trend we have seen in customer churn over the last 3 months. Our customer churn rate fell clearly below 4%.
Speaker #3: Back in our quarterly report for Q1 in August, we said that MRR declined during the first two months of the quarter, but it still remained above the level from a year ago.
Speaker #3: September finally stopped that downward trend. We ended the month flat. So overall, MRR at the end of the quarter declined by 2.3%, while still growing by 3.3% over the year.
Speaker #3: This result is directly related to what I was talking about a moment ago. Our visibility is still not where we want it to be.
Speaker #3: As a result, customer acquisition remains weak. And this is the case despite the positive trend we've seen in customer churn over the last three months.
Speaker #3: Our customer churn rate fell clearly below 4%. This may partly reflect the changing structure of our customer base, with much more larger customers.
Lucja Kaseja: This may partly reflect the changing structure of our customer base with more larger customers. It also reflects the fact that many customers have moved to annual contracts, something we talked about quite extensively 3 months ago on the call. While MRR was weaker than we had hoped, we had another strong month in terms of the payments received. We received $23,610,000 for a quarter. This means a growth of 6.2% year on year, and a decline of 2.4% compared with the previous 3 months. Let's also remember that the previous quarter was the period when grandfathering ended for LiveChat customers, and many customers decided to move to annual contracts. Let's repeat this once again. Payments received are not equal to revenue. Just to put this into a context, after Q1, we had a record level of deferred revenue, customer liabilities resulting from contracts.
Łucja Kaseja: This may partly reflect the changing structure of our customer base with more larger customers. It also reflects the fact that many customers have moved to annual contracts, something we talked about quite extensively 3 months ago on the call. While MRR was weaker than we had hoped, we had another strong month in terms of the payments received. We received $23,610,000 for a quarter. This means a growth of 6.2% year on year, and a decline of 2.4% compared with the previous 3 months. Let's also remember that the previous quarter was the period when grandfathering ended for LiveChat customers, and many customers decided to move to annual contracts. Let's repeat this once again. Payments received are not equal to revenue. Just to put this into a context, after Q1, we had a record level of deferred revenue, customer liabilities resulting from contracts.
Speaker #3: And it also reflects the fact that many customers have moved to annual contracts, something we talked about quite extensively three months ago on the call.
Speaker #3: So while MRR was weaker than we had hoped, we had another strong month in terms of the payments received. We received $23,610,000 US dollars for the quarter.
Speaker #3: This means a growth of 6.2% year on year, and a decline of 2.4% compared with the previous three months. Let's also remember that the previous quarter was the period when grandfathering ended for LiveChat customers, and many customers decided to move to annual contracts.
Speaker #3: And let's repeat this once again: payments received are not equal to revenue. Just to put this into context, after Q1, we had a record level of deferred revenue.
Speaker #3: Customer liabilities resulting from contracts. That was PLN 77.2 million. That amount will flow into revenue over the coming quarters. Sorry for changing the slide.
Lucja Kaseja: That was PLN 77.2 million. That amount will flow into revenue over the coming quarters. Sorry for changing the slide. Another positive point I wanted to mention here is our API business. API revenue had another strong quarter and has now exceeded $450,000. This is almost double what it was just 3 months ago. It's becoming an increasingly important part of our business. That said, we shouldn't expect this growth to be perfectly linear. You can now see also Text on this chart. For now, its share is still very small, but we expect it to grow quickly. I'll come back to that at the end of the presentation. We are also seeing another positive trend that we really want to see. The share of customers with ARPL above $500 continues to increase. This quarter, they accounted for 56% of our total MRR.
Łucja Kaseja: That was PLN 77.2 million. That amount will flow into revenue over the coming quarters. Sorry for changing the slide. Another positive point I wanted to mention here is our API business. API revenue had another strong quarter and has now exceeded $450,000. This is almost double what it was just 3 months ago. It's becoming an increasingly important part of our business. That said, we shouldn't expect this growth to be perfectly linear. You can now see also Text on this chart. For now, its share is still very small, but we expect it to grow quickly. I'll come back to that at the end of the presentation. We are also seeing another positive trend that we really want to see. The share of customers with ARPL above $500 continues to increase. This quarter, they accounted for 56% of our total MRR.
Speaker #3: Another positive point I wanted to mention here is our API business. API revenue had another strong quarter, and it has now exceeded $450,000.
Speaker #3: This is almost double what it was just three months ago. It's becoming an increasingly important part of our business. That said, we shouldn't expect this growth to be perfectly linear.
Speaker #3: And you can now see also text on this chart. For now, it's still very small, but we expect it to grow quickly. I'll come back to that at the end of the presentation.
Speaker #3: We are also seeing another positive trend that we really want to see. The share of customers with ARPL above $500 continues to increase.
Speaker #3: This quarter, they accounted for 56% of our total MRR. And in this slide, we are still showing the share of customers paying for more than one of our products.
Lucja Kaseja: In this slide, we are still showing the share of customers paying for more than one of our products. Of course, as these customers migrate to Text, this particular way of looking at our business will eventually become less meaningful. For now, it's worth noting that the share increased by 5 percentage points year over year, reaching 40% at the end of September. That's it when it comes to the numbers, but let me briefly summarize the quarter and then we'll move to Q&A. Looking at the financials, MRR grew by 3.3% year over year, while declining 2.3% compared with the end of the previous quarter. Importantly, September ended flat. If we look at the actual cash coming into the business, it was another strong quarter. Payments received were up 6.2% year over year, and API revenue, which is calculated outside of MRR, almost doubled during the quarter.
Łucja Kaseja: In this slide, we are still showing the share of customers paying for more than one of our products. Of course, as these customers migrate to Text, this particular way of looking at our business will eventually become less meaningful. For now, it's worth noting that the share increased by 5 percentage points year over year, reaching 40% at the end of September. That's it when it comes to the numbers, but let me briefly summarize the quarter and then we'll move to Q&A. Looking at the financials, MRR grew by 3.3% year over year, while declining 2.3% compared with the end of the previous quarter. Importantly, September ended flat. If we look at the actual cash coming into the business, it was another strong quarter. Payments received were up 6.2% year over year, and API revenue, which is calculated outside of MRR, almost doubled during the quarter.
Speaker #3: Of course, as these customers migrate to text, this particularly particular way of looking at our business will eventually become less meaningful. For now, it's worth noting that the share increased by 5 percentage points year over year, reaching 40% at the end of September.
Speaker #3: And that's it when it comes to the numbers. But let me briefly summarize the quarter, and then we'll move to Q&A. Looking at the financials, MRR grew by 3.3% year over year.
Speaker #3: While declining 2.3% compared with the end of the previous quarter. And importantly, September ended flat. If we look at the actual cash coming into the business, it was another strong quarter.
Speaker #3: Payments received were up 6.2% year-over-year. API revenue, which is calculated outside of MRR, almost doubled during the quarter. It was also a quarter with a lot of activity around customer acquisition.
Lucja Kaseja: It was also a quarter of a lot of activity around customer acquisition. We can see the potential, but we still need to wait for the results to fully materialize. It is worth mentioning that during these 3 months alone, our products became available on marketplaces and platforms such as Google Cloud, AWS, and ChatGPT. It was also a very intensive quarter when it comes to product development. Amongst the new integrations, I'd particularly mention Klaviyo, the world's largest SMS and email marketing platform. All in all, we've released 63 new features and functionalities in Text. Many of them are very significant. That number shows how effectively our product and engineering teams worked during the quarter. Importantly, we are also working on something else, how to communicate the value of Text much better. I mentioned this challenge at the beginning of the presentation.
Łucja Kaseja: It was also a quarter of a lot of activity around customer acquisition. We can see the potential, but we still need to wait for the results to fully materialize. It is worth mentioning that during these 3 months alone, our products became available on marketplaces and platforms such as Google Cloud, AWS, and ChatGPT. It was also a very intensive quarter when it comes to product development. Amongst the new integrations, I'd particularly mention Klaviyo, the world's largest SMS and email marketing platform. All in all, we've released 63 new features and functionalities in Text. Many of them are very significant. That number shows how effectively our product and engineering teams worked during the quarter. Importantly, we are also working on something else, how to communicate the value of Text much better. I mentioned this challenge at the beginning of the presentation.
Speaker #3: We can see the potential, but we still need to wait for the results to fully materialize. It is worth mentioning that during these three months alone, our products became available on marketplaces and platforms such as Google Cloud, AWS, and ChatGPT.
Speaker #3: It was also a very intensive quarter when it comes to product development. Among the new integrations, I'd particularly mention Klaviyo, the world's largest SMS and email marketing platform.
Speaker #3: All in all, we released 63 new features and functionalities in Text. Many of them are very significant. That number shows how effectively our product and engineering teams worked during the quarter.
Speaker #3: And importantly, we are also working on something else: how to communicate the value of text much better. I mentioned this challenge at the beginning of the presentation.
Speaker #3: The latest data shows that we've made significant progress here. We are happy with the improvement in lead-to-customer conversion for Text. And that encourages us to redirect more traffic from our other domains to Text.com.
Lucja Kaseja: The latest data shows that we've made significant progress here. We are happy with the improvement in lead to customer conversion for Text, and that encourages us to redirect more traffic from our other domains to text.com. This is an experiment, and obviously it comes with some risks. The conversion results we are seeing give us confidence to continue. The strong results our customers are achieving with Text are also encouraging us to accelerate the migration of customers from our other products to Text. In September, we moved virtually all starter plan customers from LiveChat to Text. From an MRR perspective, this is neutral. Their payments will only start being classified as Text from the following month, but this is just the beginning. The migration process is now accelerating significantly. That's the summary from us.
Łucja Kaseja: The latest data shows that we've made significant progress here. We are happy with the improvement in lead to customer conversion for Text, and that encourages us to redirect more traffic from our other domains to text.com. This is an experiment, and obviously it comes with some risks. The conversion results we are seeing give us confidence to continue. The strong results our customers are achieving with Text are also encouraging us to accelerate the migration of customers from our other products to Text. In September, we moved virtually all starter plan customers from LiveChat to Text. From an MRR perspective, this is neutral. Their payments will only start being classified as Text from the following month, but this is just the beginning. The migration process is now accelerating significantly. That's the summary from us.
Speaker #3: This is an experiment, and obviously, it comes with some risks. But the conversion results we are seeing give us confidence to continue. The strong results our customers are achieving with Text are also encouraging us to accelerate the migration of customers from our other products to Text.
Speaker #3: In September, we moved virtually all Starter Plan customers from live chat to text. From an MRR perspective, this is neutral. Their payments will only start being classified as text from the following month.
Speaker #3: But this is just the beginning. The migration process is now accelerating significantly. And that's the summary from us. Of course, we are happy to take questions.
Lucja Kaseja: Of course, we are happy to take the questions. As always, we encourage you to ask them in the best possible way, by texting. Thank you for listening.
Łucja Kaseja: Of course, we are happy to take the questions. As always, we encourage you to ask them in the best possible way, by texting. Thank you for listening.
Speaker #3: And, as always, we encourage you to ask them in the best possible way—by texting. Thank you for listening.
Speaker #1: Thank you. Thank you very much for the presentation, Łucja. We'll now be moving to the Q&A part of the call. Dear participants, if you wish to ask a question, please type it in the box provided.
Operator 2: Thank you. Thank you very much for the presentation, Lucja. We'll now be moving to the Q&A part of the call. Dear participants, if you wish to ask a question, please type them in the box provided. We'll give a few seconds for any questions to come through. We acknowledge the questions that you've already typed. We'll get to them very shortly. Our first text question comes from Marcin Nowak, IPOPEMA Securities. Following the observation about the visibility of the product, how do you want to achieve that? Would Text reconsider rehiring the sales team that was just laid off? What changes can improve this visibility?
Operator: Thank you. Thank you very much for the presentation, Łucja. We'll now be moving to the Q&A part of the call. Dear participants, if you wish to ask a question, please type them in the box provided. We'll give a few seconds for any questions to come through. We acknowledge the questions that you've already typed. We'll get to them very shortly. Our first text question comes from Marcin Nowak, IPOPEMA Securities. Following the observation about the visibility of the product, how do you want to achieve that? Would Text reconsider rehiring the sales team that was just laid off? What changes can improve this visibility?
Speaker #1: We'll give a few seconds for any questions to come through. We acknowledge the questions that you've already typed. We'll get to them very shortly.
Speaker #1: OK. Our first text question comes from Marcin Nowak at Popema Securities. Following the observation about the visibility of the product, how do you want to achieve that?
Speaker #1: Would Text reconsider rehiring the sales team that was just laid off? What changes can improve this visibility?
Speaker #3: Thank you, Marcin, for the question. First of all, the fact that we are showing the cases is one of those things. So, we need success stories from our clients.
Lucja Kaseja: Thank you, Marcin, for the question. First of all, the fact that we are showing the cases is one of such things. We need success stories from our clients, and we are displaying them, showing the real examples and real numbers for our potential customers to have a look. This also got some attention from websites or from some sector news agencies. We got some PR around that as well. This is part of what we're trying to do, the whole change of the way Text website looks. This red color and very bold statements, and especially the fact that we emphasize that we want to put the product on the offense, so on actually driving the sales for our customers. This is something that we're trying to achieve, to bring awareness of Text to customers.
Łucja Kaseja: Thank you, Marcin, for the question. First of all, the fact that we are showing the cases is one of such things. We need success stories from our clients, and we are displaying them, showing the real examples and real numbers for our potential customers to have a look. This also got some attention from websites or from some sector news agencies. We got some PR around that as well. This is part of what we're trying to do, the whole change of the way Text website looks. This red color and very bold statements, and especially the fact that we emphasize that we want to put the product on the offense, so on actually driving the sales for our customers. This is something that we're trying to achieve, to bring awareness of Text to customers.
Speaker #3: And we are displaying them, showing the real examples and real numbers for our potential customers to have a look. And this also has gotten some attention from websites, or from some sector news agencies.
Speaker #3: So, we got some PR around that as well, so this is part of what we're trying to do. We are also working on the whole change of the way the Text website looks.
Speaker #3: So this red color and very bold statements, and especially the fact that we emphasize that we want to put the product on the offense.
Speaker #3: So, on actually driving the sales for our customers, this is something that we are trying to achieve—to bring awareness of Text to customers.
Marcin Droba: Let's add that, as it was shown in the presentation, we added three huge marketplaces in Q2 alone. That's not saying that will change situation overnight. Contrary to that needs a lot of time. You need to build your credibility, your visibility on each marketplace. A lot of work was made during that quarter, even that single quarter. We need to wait for the effect, but a lot of work was done. About sales team, no, we're definitely not considering rehiring the sales team at the moment. Actually, that was something our CEO mentioned after AGM, at the last AGM, that it's not the first time actually. He actually cut the sales team. He did it some 10 plus, looks like maybe 12, 13 years ago. That was a good decision then, and we think that's the good decision again.
Marcin Droba: Let's add that, as it was shown in the presentation, we added three huge marketplaces in Q2 alone. That's not saying that will change situation overnight. Contrary to that needs a lot of time. You need to build your credibility, your visibility on each marketplace. A lot of work was made during that quarter, even that single quarter. We need to wait for the effect, but a lot of work was done. About sales team, no, we're definitely not considering rehiring the sales team at the moment. Actually, that was something our CEO mentioned after AGM, at the last AGM, that it's not the first time actually. He actually cut the sales team. He did it some 10 plus, looks like maybe 12, 13 years ago. That was a good decision then, and we think that's the good decision again.
Speaker #2: Let's add that, as it was shown in the presentation, we added three huge marketplaces in Q2 alone. So that's not saying that will change the situation overnight.
Speaker #2: Contrary to that, it needs a lot of time. You need to build your credibility, your visibility on each marketplace. But a lot of work was done during that quarter, even.
Speaker #2: That single quarter, so we need to wait for the effect. But a lot of work was done. About the sales team—no, we definitely are not considering rehiring the sales team at the moment.
Speaker #2: But actually, that was something our CEO mentioned after the AGM. At the last AGM, it's not the first time he actually cut the sales team—he did it.
Speaker #2: So, 10 plus maybe 12 or 13 years ago, that was a good decision then. And we think that's a good decision again. But of course, in the future, who knows?
Marcin Droba: But of course, in the future, who knows? Maybe we will repeat the story with them.
Marcin Droba: But of course, in the future, who knows? Maybe we will repeat the story with them.
Speaker #2: Maybe we will repeat the story with them.
Operator 2: Okay. Thank you. Thank you very much. Another question from Mr. Marcin Nowak. Do you have an estimate how the conversions to annual subscriptions have affected MRR? How much it reduced the quarter-on-quarter MRR dynamic?
Operator: Okay. Thank you. Thank you very much. Another question from Mr. Marcin Nowak. Do you have an estimate how the conversions to annual subscriptions have affected MRR? How much it reduced the quarter-on-quarter MRR dynamic?
Speaker #1: OK. Thank you. Thank you very much. Another question from Mr. Marcin Nowak: Do you have an estimate of how the conversions to annual subscriptions have affected MRR?
Speaker #1: How much did it reduce the quarter-on-quarter MRR dynamic?
Speaker #3: Well, first of all, you got the direction correctly. So this is something and we've talked about it last quarter. That the increase that affected the live chat customers for some of them was somehow limited because they chose annual subscriptions instead of the monthly subscriptions.
Lucja Kaseja: Well, first of all, you got the direction correctly. This is something, and we've talked about it last quarter, that the increase that affected the LiveChat customers, for some of them, was somehow limited because they chose annual subscriptions instead of the monthly subscriptions they were previously on. Indeed, that made a reduction in the effect of grandfathering on MRR. All in all, the effect of this end of grandfathering on MRR that we wanted to have was slightly lower than it appeared to be. But we are not giving the numbers, I'm afraid.
Łucja Kaseja: Well, first of all, you got the direction correctly. This is something, and we've talked about it last quarter, that the increase that affected the LiveChat customers, for some of them, was somehow limited because they chose annual subscriptions instead of the monthly subscriptions they were previously on. Indeed, that made a reduction in the effect of grandfathering on MRR. All in all, the effect of this end of grandfathering on MRR that we wanted to have was slightly lower than it appeared to be. But we are not giving the numbers, I'm afraid.
Speaker #3: They were previously on, and indeed that made a reduction in the effect of grandfathering on MRR. So all in all, the effect of this price, of this end of grandfathering on MRR that we wanted to have, was slightly lower than it appeared to be.
Speaker #3: But we are not giving the numbers, I'm afraid.
Speaker #1: Thank you. Thank you very much. Our next question comes from Mr. Dariusz Jackowski. Did the API payments grow to over $450,000 because customers are using the API more, or because of one-off high usage from a few customers?
Operator 2: Thank you. Thank you very much. Our next question comes from Dariusz Piaskowski. Did the API payments grow to over $450,000 because customers are using the API more or because of one-off high usage from few customers?
Operator: Thank you. Thank you very much. Our next question comes from Dariusz Piaskowski. Did the API payments grow to over $450,000 because customers are using the API more or because of one-off high usage from few customers?
Speaker #2: I would say definitely more customers are using API, but as we mentioned already, even if you look at most single months—if you look at the picture month to month—the growth of that part of our business is definitely not linear.
Marcin Droba: I would say definitely more customers are using API. But as we mentioned already, even if you look at single months, if you look at the picture from month to month, the growth of that part of our business is definitely not linear. It changed. There is sometimes a month when we see some decrease, then we are seeing huge jump. The usage is changing month to month, not only growing, but at the same time, even without that, especially bigger customers are buying some huge packages of API calls. Sometimes, yes, that is true. It is possible that some bigger customers will pay in the one month package of API calls, which will serve him for a few months. It can happen. It is happening.
Marcin Droba: I would say definitely more customers are using API. But as we mentioned already, even if you look at single months, if you look at the picture from month to month, the growth of that part of our business is definitely not linear. It changed. There is sometimes a month when we see some decrease, then we are seeing huge jump. The usage is changing month to month, not only growing, but at the same time, even without that, especially bigger customers are buying some huge packages of API calls. Sometimes, yes, that is true. It is possible that some bigger customers will pay in the one month package of API calls, which will serve him for a few months. It can happen. It is happening.
Speaker #2: It changed, so there are sometimes months when we see some decrease, and we are seeing a huge jump. The usage is changing month to month, not only growing.
Speaker #2: But at the same time, even without that, especially bigger customers are buying some huge packages of API calls. So sometimes, yes, that's true.
Speaker #2: It's possible that some bigger customers will pay for the one-month package of API calls, which will serve them for a few months.
Speaker #2: It can happen. It's happening.
Speaker #1: Thank you. Thank you very much. Another question from Dariusz: When customers start using AI features in tax, do they usually increase their usage over time, or does it stay at a similar level?
Operator 2: Thank you. Thank you very much. Another question from Dariusz. When customers start using AI features in Text, do they usually increase their usage over time, or does it stay at a similar level?
Operator: Thank you. Thank you very much. Another question from Dariusz. When customers start using AI features in Text, do they usually increase their usage over time, or does it stay at a similar level?
Lucja Kaseja: It is a very valid question. However, we do not have that much data. We just have a limited number of customers who are long enough to make such comparisons. The one example I know exactly about the customer is that they did, in fact, increase their usage over time, seeing the results they are getting. That should probably be the answer for larger customers. Once they see the value, they are not afraid to invest more and pay more. But for smaller ones, I would say that does not necessarily be the case. But again, the statistics that we have are rather limited at this time.
Łucja Kaseja: It is a very valid question. However, we do not have that much data. We just have a limited number of customers who are long enough to make such comparisons. The one example I know exactly about the customer is that they did, in fact, increase their usage over time, seeing the results they are getting. That should probably be the answer for larger customers. Once they see the value, they are not afraid to invest more and pay more. But for smaller ones, I would say that does not necessarily be the case. But again, the statistics that we have are rather limited at this time.
Speaker #3: It's a very valid question. However, we do not have that much data. I mean, we just have a limited number of customers who have been with us long enough to make such comparisons.
Speaker #3: The one example I know, exactly about the customer, is that they did in fact increase the usage over time, seeing the results they are getting.
Speaker #3: And that should probably be the answer for larger customers. Once they see the value, they are not afraid to invest more and pay more.
Speaker #3: But for smaller ones, I would say that does not necessarily have to be the case. But again, the statistics that we have are rather limited at this time.
Speaker #1: Thank you. Thank you very much. Before I move to the next question, just a reminder: if you would like to ask a question, please type it in the box provided.
Operator 2: Thank you. Thank you very much. Before I move to the next question, just a reminder, if you would like to ask a question, please type it in the box provided. Our next question comes again from Marcin Nowak, IPOPEMA Securities. If I see correctly on page 9, payments from HelpDesk decreased significantly quarter-on-quarter in Q2 2026, 2027. Why is that?
Operator: Thank you. Thank you very much. Before I move to the next question, just a reminder, if you would like to ask a question, please type it in the box provided. Our next question comes again from Marcin Nowak, IPOPEMA Securities. If I see correctly on page 9, payments from HelpDesk decreased significantly quarter-on-quarter in Q2 2026, 2027. Why is that?
Speaker #1: Our next question comes again from Marcin Nowak. If I open my securities, if I see correctly on page 9, payments from HelpDesk decreased significantly quarter-on-quarter in the second quarter of 2026 and 2027.
Speaker #1: Why is that?
Marcin Droba: Annual payments. Go ahead.
Marcin Droba: Annual payments. Go ahead.
Speaker #2: Annual payments were there. Let's go. Go ahead.
Speaker #3: Yeah, the answer is simple. If there are some bigger contracts that are paid annually, then it's inflated. And that was the case in Q1, when we had bigger payments and also annual payments.
Lucja Kaseja: Well, the answer is simple. If there are some bigger contracts that are paid annually, then it is inflated, and that was the case in Q1 when we had bigger payments and also annual payments. So, it is really dependent on when are the payments of, for example, larger clients throughout the year.
Łucja Kaseja: Well, the answer is simple. If there are some bigger contracts that are paid annually, then it is inflated, and that was the case in Q1 when we had bigger payments and also annual payments. So, it is really dependent on when are the payments of, for example, larger clients throughout the year.
Speaker #3: So it is really dependent on when the payments from, for example, larger clients, are made throughout the year.
Speaker #1: Thank you. Thank you very much. Just a final reminder for the questions: if you'd like to ask a tax question, please type it in the box provided and send it to us.
Operator 2: Thank you. Thank you very much. Just a final reminder for the questions. If you would like to ask a Text question, please type it in the box provided and send it to us. I will just give a moment or so for any additional questions to come in.
Operator: Thank you. Thank you very much. Just a final reminder for the questions. If you would like to ask a Text question, please type it in the box provided and send it to us. I will just give a moment or so for any additional questions to come in.
Speaker #1: I'll just give a moment or so for any additional questions to come in.
Marcin Droba: As usual, we had more questions at Polish meeting, at Polish webinar. The transcript of that Polish webinar will be put online, maybe even in a few minutes. You can check for that, obviously.
Marcin Droba: As usual, we had more questions at Polish meeting, at Polish webinar. The transcript of that Polish webinar will be put online, maybe even in a few minutes. You can check for that, obviously.
Speaker #2: As usual, we had more questions at the Polish meeting, at the Polish webinar. The transcript of that Polish webinar will be put online, maybe even in a few minutes.
Speaker #2: So, you can check for that, obviously.
Speaker #1: OK, thank you. Thank you, Marcin. I think at this point in time, we have no further questions from the audience. So, I will now pass the line back to you for your closing remarks.
Operator 2: Okay. Thank you, Marcin. I think at this point in time, we have no further questions to the audience. I will now pass the line back to you for your closing remarks.
Operator: Okay. Thank you, Marcin. I think at this point in time, we have no further questions to the audience. I will now pass the line back to you for your closing remarks.
Speaker #2: So thank you for being here with us. We will put all the materials from our calls online. If you have any questions, feel free to send those questions to us.
Marcin Droba: Thank you for being here with us. We will put on all the materials from our calls online. If you have any questions, feel free to send those questions to us. Thank you very much.
Marcin Droba: Thank you for being here with us. We will put on all the materials from our calls online. If you have any questions, feel free to send those questions to us. Thank you very much.
Speaker #2: Thank you very much.
Speaker #3: Thank you.
Lucja Kaseja: Thank you.
Łucja Kaseja: Thank you.
Speaker #1: Thank you very much. This concludes our call for today. We are now closing all the lines. Goodbye.
Operator 2: Thank you very much. This concludes our call for today. We are now closing all the lines. Goodbye.
Operator: Thank you very much. This concludes our call for today. We are now closing all the lines. Goodbye.
Marcin Droba: Have a good day and good week. Thank you. Bye.
Marcin Droba: Have a good day and good week. Thank you. Bye.
Speaker #2: Have a good day and good week. Thank you. Bye.
Lucja Kaseja: Thank you. Bye.
Łucja Kaseja: Thank you. Bye.
