Text (TXT) Q2 22/23 TU earnings summary

Executive summary

• Q2 FY22/23 preliminary revenue was $15.47m, up 7.9% YoY; September-end MRR reached $4.91m, up 11.8% YoY.

• Global B2B subscription software business, priced in USD across markets; the U.S. represented 46% of June MRR.

Financial highlights

• Q2 revenue was $15.47m versus $15.21m in the prior three-month period; prior-year Q2 included annual payments that distorted the YoY comparison.

• September-end MRR was $4.91m, up 1.9% from June and 11.8% YoY, versus $4.39m in September 2021.

• Q1 FY22/23 net sales were PLN 66.8m, up 36.5% YoY; EBIT was PLN 38.7m, up 37.9%, and net profit was PLN 36.0m, up 35.3%.

• September LiveChat ARPU was $121.5, up $2.4 from August; ChatBot ARPU was $110.4 at month-end.

• Q1 operating cash flow was PLN 55.7m; cash rose from PLN 37.3m on Apr. 1 to PLN 87.9m on Jun. 30.

Outlook and guidance

• LiveChat and ChatBot price increases for existing customers were due to be completed in Q2: 25% for monthly billing and 18%–19% for annual billing; August price changes were expected to support following quarters.

• Existing customers could retain legacy prices by switching to annual billing, locking pricing for the contract term.

• Management expected some higher customer churn; negative net revenue churn was possible, but no formal forecast was offered.

• New-product work continued, with advanced partnership talks and possible announcements expected by year-end.