Text (TXT) Q2 24/25 TU earnings summary

Financial performance highlights

• Payments received reached a record USD 22.84 million in Q2 2024/25, up 14.9% year over year and 1% quarter over quarter.

• Monthly recurring revenue (MRR) grew 8.8% year over year to USD 7.04 million, but declined 0.4% quarter over quarter due to customer losses.

• Average revenue per license (ARPL) increased 1.9% quarter over quarter and 11% year over year, reaching USD 173.9.

• HelpDesk ARPL rose by over 11% to USD 191.1, and enterprise client MRR doubled.

• API as a service revenues increased by 16% over the quarter to USD 59,000, though it remains a small part of the business.

Customer and product trends

• Over 1,000 LiveChat customers churned, mainly small and non-core market clients, due to onboarding changes and anti-abuse measures, ending the quarter at 36,435 customers.

• Churn was highest in July, especially in Asia, but US churn fell below 3% in August and September.

• Most onboarding changes, including the AI+ bundle, were reversed by September due to negative impact, improving trial and lead numbers.

• ChatBot added 71 net customers in September after a new language model launch, ending the quarter with 2,962 customers; a promotional offer impacted initial ARPU.

• HelpDesk added 29 net clients, reaching 1,224 customers, with slower growth attributed to holiday months.

Strategic initiatives and outlook

• Focus remains on building a product suite, with new features, infrastructure upgrades, and a transformation roadmap targeting a suite company model.

• SOC 2 certification process started to support enterprise customer acquisition.

• Q3 product releases include unified user experience, upgraded chat widget, new campaign templates, and enhanced AI features.

• Global Billing to be released to facilitate cross-product sales.

• Dividend policy remains unchanged despite investments in infrastructure; PLN 5.98 per share was paid, totaling PLN 153.9 million.