April 7, 2026
Conference Call transcript on Text’s KPIs for Q4 2025/26
Moderator:
Ladies and gentlemen, thank you for standing by and I would like to welcome you to the discussion
on Text's Q4 2025-2026 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'll have an
opportunity to ask questions. So without further ado, I would now like to pass the line to Łucja. Please
go ahead, ma'am.
Lucja Kaseja, Investor Relations Manager, Text S.A.:
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 output 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 transcript of this meeting will be
available on our website soon after the call, so you will definitely have a chance to review it.
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. This means that during the quarter,
the tax group's MRR decreased by $50,000. 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 these 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 collected payments, 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 2024-2025 financial year. Differences in
the dynamics between MRR and payments received usually stem mainly from the distribution of
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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 AP usage, will 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 one percentage point.
This is a favorable trend that should translate into better revenue retention over time as this customer
group stays with us longer and is more open to upselling.
The next slide shows how the share of customers paying for more than one product from the tech
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' success 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 metric is
usually between 70-75%, while other market players recently declared 60% as a success. Importantly,
this average includes accounts that have 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 chat is considered resolved if the user receives a
complete answer to the 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 a 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 involved
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 obtained 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. Future changes have already translated into increased
reliability and quality. We've returned to actively encouraging our customers to give 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
period, and it reflects the fact that a small but rapidly growing part of our business is not captured in
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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. In this
quarter, we signed several significant renewals, some of which included upgrades. The biggest ones
concerned our key accounts, where hundreds of agents work with our products. These are clients from
industries such as biotechnology, Forex, and iGaming. These renewals and upsells were made possible
by our SOC2 certification. If we look at the direct costs of obtaining the certificate, they have fully
paid off. For now, it mostly helps us play defensive, but we expect...
Moderator:
Ladies and gentlemen, please stand by.
Łucja Kaseja:
I lost my connection, I'm back, hopefully you hear me well now.
Moderator:
Yes, yes, we do.
Łucja Kaseja:
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 sectors 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
metrics will come from ending price grandfathering for LiveChat 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 LiveChat 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 the
previous levels. The end of grandfathering pricing for LiveChat will likely translate into some
increase in churn in short term, but we estimate the net effect should be significantly positive for our
recurring revenue. 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 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 operating under the working name Text App” will officially become the
“Text” solution.
The communication campaign associated with this brand is scheduled to begin in May. Please don't
expect fireworks right away. There won't be a big bang at launch. It will be a phased, scalable process
where budget decisions will be made based on data and results in specific channels, and the major
events 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 this area, 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 effects 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
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previous meetings. This is not a sprint run. It's the start of a 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 lifetime price
grandfathering. 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.
Moderator:
Thank you. Thank you very much for the presentation, Łucja. 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
two. That's star two 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 Rofagha from Family Office. Based on press coverage, it looks like competitors like
Sierra and Fin.ai 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?
Marcin Droba, Vice President of Investor Relations, Text S.A.:
Hi. Hello, Maximilian. Marcin Droba here. Thank you for your questions. Thank you for being with
us today. Of course, I don't want to comment on Sierra, Intercom, or any of our competitors.
Definitely, we had a very good quarter in terms of, as Łucja stated in the presentation, in terms of
defense. Actually, we prolonged our very important deals. We kept important customers who actually
had their deals close to an end. Looking at that, that was a very good, very solid quarter. Of course, we
are not growing at this point. We are not as successful in the acquisition at this moment. That was not
a great quarter in that term, but we will be looking ahead at our plans for this PR and this
communication offensive, which will start in May. At some point, we'll be more aggressive when it
comes to addressing the customers which are now using some competitors' solutions. We have some
arguments that should help us. One of these arguments can be a great result of our AI agents we just
presented. At some point, we'll be more aggressive with that kind of approach. Looking at the last
quarter, I'm very convinced that we didn't lose any notable customers to our peers.
Moderator:
Okay. Thank you. Thank you very much. Another text question from Maximilian. What are your main
growth channels going to be for TextApp, given that your previous CEO strategy will likely not work
anymore, given the decline of search traffic overall?
Marcin Droba:
Sorry, we usually switch when it comes to the answer, but I will try at least partially to answer that
question, quoting our CEO who actually stated on X, answering a very similar question, that the
Internet hasn't really changed in how growth works over the last 20 years. Only the platforms have
shifted when the underlying mechanics stay the same. So, we basically have to repeat the work we've
done over the last 20 years. We know how to do that. Actually, that was also not a bad quarter for our
visibility into AI models. So, we definitely work on that. We will be much more active, for example,
in PR and in cooperation with some influencers in the coming months. But basically, it's very similar
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work, but just in a different space. Also, I wouldn't agree with the statement that the SEO 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 we'll probably witness many more in the coming years.
Łucja Kaseja:
Yeah, we'll definitely be more active with our brand, and as I mentioned, we have a new PR person on
board. So, more of this kind of activity will be visible. Also, similarly to this presentation, we will be
sharing more examples of brands and how they work with our products, because this is excellent work
that some customers have done, and we have some excellent stories. It's just our role to pick them up
and showcase. So, this type of activity will definitely be something that will be seen in the next couple
of months.
Marcin Droba:
So, some things are changing. For example, the PR, public relations, wasn't so important for us,
historically speaking, but media coverage, media publications are probably now more important as
they are a source of knowledge, a source of reputation for the AI models. Some things change, but
basically, the work is very similar.
Moderator:
Okay. Thank you. Thank you very much. Another question from Maximilian. Can you share traction
of Tech App in terms of retention, usage, et cetera? Is it performing better than your legacy solutions?
This seems the most crucial point, but you share very little information in your communications.
Łucja Kaseja:
We have not given, as you correctly spotted, detailed information about Text App, especially as you
have mentioned, retention or usage. This is because we have not run a large-scale conversion from the
legacy products. We are getting customers each month in the text app. However, these are not very
large numbers. So, we still do not have such a history of data for those users.
Marcin Droba:
So, yes, of course, as Lucja said, 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 is the correct wording. Translatable to that
same solution in the future, because there will be also some changes in the Text. We just added crucial
things in the area of AI agents. And we migrate to Text a very specific group of customers of legacy
products. So, all these KPIs are very important for us, but I don’t think that is so important from point
of view of investors, as it will change a lot.
Moderator:
Okay, thank you. Thank you very much. Maybe just a reminder to the audience. If you would like to
ask a voice question and are connected by telephone, please press star two on your phone keypad.
Don't wait for your name to be prompted. If you are dialing via the web, you can also request to ask a
voice question or send your question as a text. I'll just give a moment or so for any additional
questions to come in.
Marcin Droba:
As you may know, we had a Polish webinar before this webinar. We obviously had some more
questions. But if I look at the whole picture, I don't think we shared really important, substantial new
information during that previous Q&A. We were asked about the dividend policy, which is confirmed.
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We were asked about, you know, the margins of the pay per usage payment. And I think it's important
to stress that if you look at the API revenues, those revenues actually, we had costs related to those
revenues before. We just started to monetize that subject. And I think it's important to stress that if you
look at the future, it will be very important that the most important part of pay per usage, or pay per
results model will be AI agents. That's a huge area. We definitely assume very solid margins in that
area, but we will learn in the future what the market will accept, what the competition landscape looks
like. So we will observe how it will work. 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.
Moderator:
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 of Text, the line back to say
their concluding remarks.
Łucja Kaseja:
Well, thank you for listening to our presentation. As you have seen, many things 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 we also constantly do day-to-day work for the numbers to be as
they are. Thank you very much for your attention.
Marcin Droba:
Thank you very much.
Moderator:
Thank you. We are now closing all the lines. Goodbye.
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