Text (TXT) Q2 24/25 TU earnings summary

Financial performance

• Payments received reached a record $22.84m, up 14.9% YoY and 1.0% QoQ.

• September MRR was $7.04m, up 8.8% YoY but down 0.4% QoQ; it excludes usage fees beyond fixed subscriptions.

• September ARPL rose across products: LiveChat $173.9, ChatBot $148.1 and HelpDesk $191.1; all were above June and year-ago levels.

• API as a Service revenue rose 16% QoQ to $59k, remaining a small part of revenue.

• Enterprise client MRR doubled, while LiveChat's share of total revenue fell below 90% for the first time, to 88.5%.

Customer and product trends

• LiveChat ended the quarter at 36,435 customers after losing over 1,000, mainly small and non-core clients, amid onboarding changes and anti-abuse measures.

• Churn peaked in July, especially in Asia; churn in key markets fell below 3% by quarter-end, with US churn below 3% in August and September.

• ChatBot added 71 net customers in September after a new language model launch, ending the quarter at 2,962; a promotion temporarily lowered initial ARPU.

• HelpDesk added 29 net clients to reach 1,224; ARPL rose more than 11% during the quarter.

• Product and pricing changes lowered conversion rates; reverting onboarding changes helped improve trial and lead numbers.

Strategy, operations and outlook

• Suite strategy targets enterprise customers and improved customer quality; shared UI, Global Billing and unified customer profiles are planned, with SOC 2 certification underway.

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

• Most onboarding changes, including the AI+ bundle, were reversed by September after negative effects; leadership acknowledged mistakes and emphasized improving product quality.

• Pricing and utilization optimization will continue, with a smaller expected KPI impact; actions improved net MRR churn and LiveChat ARPL but raised customer churn.

• Organic growth remains the priority, though M&A is possible if aligned with the suite strategy; no customer-number guidance was provided given market unpredictability.