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Text Group: PLN 166.6 million net profit and record dividend for the FY 2023/24

Text Group recorded 335.3 million PLN in consolidated revenue and 166.6 million PLN in net profit for the 2023/24 financial year. The management announced plans to recommend to the General Meeting to allocate 154 million PLN for the dividend, which translates to a payout of 5.98 PLN per share - the highest in the company's history.

“It was a year of learning. We have a strong team focused on improving our products and new projects. We know more about our customers and their needs. We will strive to return to higher growth dynamics quickly, and we are convinced that we can achieve this by focusing on the needs of our customers and providing them with increasingly higher quality,” said the CEO, Mariusz Cepły.

Text’s consolidated revenues increased by 13.4% during the year, and net profit grew by 7.3%. Operating profit increased by 7.1% to 179.0 mn PLN, and EBITDA by 9.2% to 198.4 mn PLN. The company changed its revenue recognition policy during the year, comparing results to the restated financial data from the previous year (recalculated according to the same rules).

Payments for periods longer than monthly are broken down into subsequent quarters (previously booked entirely in the quarter of receipt). Consequently, the company recognizes a balance sheet item called "contract liabilities," representing deferred revenues. At the end of the year, its value was 71.0 million PLN.

This item is revalued as of the balance sheet date from US dollars to Polish zloty in the standalone financial statements and affects the reported revenues. As a result of this change, reported revenues were reduced by PLN 3.8 million for the entire financial year. However, it may significantly fluctuate in individual quarters, and as a result of this revaluation, reported revenues in the fourth quarter alone were reduced by approximately PLN 3 million, which harmed results at all levels of the income statement.

A valuable indicator for tracking the Group's development is MRR (Monthly Recurring Revenue). Text publishes this value in USD, the currency in which it generates almost all its revenue. The estimated value of the Group's MRR from all products at the end of March 2024 was 6.66 million USD, representing a 4.1% increase year-over-year and a 2.6% increase from December 31, 2023.

At the end of the fourth financial quarter, the number of paying customers for LiveChat was 37,848, 2,954 for ChatBot, and 1,163 for HelpDesk.

The ARPL (average monthly revenue per license) for LiveChat was 160.1 USD at the end of the quarter (compared to 159.7 USD a year earlier), for ChatBot it was 134.5 USD (an increase of 11.2%), and for HelpDesk it was 153.4 USD (an increase of 26.6%).

The company continues to generate cash very efficiently and confirms its policy of paying the highest possible dividend from a legal standpoint. In January 2024, the company paid the first advance on the expected dividend for the current financial year. The advance amount per share was 1.63 PLN compared to 1.46 PLN for the analogous payment last year.

After the publication of the annual results, the management announced that it had requested the Supervisory Board to approve a second advance in the amount of 1.59 PLN per share. The proposed Dividend Day is July 23, and the Payment Day is July 30.

Additionally, the management announced plans to propose to the General Meeting to allocate a total of 153.985 million PLN from the standalone profit for the past financial year for the dividend. This means the total dividend (including both advances) could amount to 5.98 PLN per share, compared to 5.95 PLN per share last year. The final decision on profit distribution will be made by the General Meeting.