TEXTMAGIC Company Announcement TextMagic group's sales results for Q1 2024
TextMagic AS is the parent company of the Group, which maintains a portfolio of B2B (business-to-business) software products. The group has three subsidiaries: TextMagic Ltd, the sales unit in the United Kingdom; TM Marketing Ops Srl, the marketing unit in Romania; and Edicy OÜ, an Estonian company that operates the Voog platform.
The group's unaudited consolidated total revenue increased in the first quarter of 2024 by 23% year-over-year to €4,026 thousand (Q1 2023: €3,272 thousand). On June 1, 2023, the group acquired a 100% subsidiary Edicy OÜ, that manages the Voog website and e-commerce platform. The financial results of the Voog platform have been consolidated from the date of acquisition.
| Quarter (in thousands) | Q1 2024 | Q1 2023 | Change |
| Textmagic SMS platform | €3,870* | €3,272 | +18 %* |
| Voog website and e-commerce platform | €156 | - | - |
| Total unaudited consolidated revenue | €4,026 | €3,272 | +23 % |
* Textmagic SMS platforms revenue is affected by foreign exchange rates. If exchange rates had been the same as in 2023, SMS platform revenue in Q1 2024 would have been €3,883 thousand and the growth rate would have been 19%.
Textmagic SMS platform's sales results for Q1 2024
| Quarter | Q1 2024 | Q1 2023 | Change |
| Volume of SMS messages (thousand pcs) | 67,513 | 72,510 | -7 % |
| Active users* | 21,618 | 27,833 | -22 % |
| Average revenue per user (ARPU), 3 months** | €179 | €118 | +52 % |
* An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.
**ARPU is calculated as Unaudited revenue / Active users.
In the first quarter of 2024, the volume of SMS messages sent decreased by 7% year-on-year, but this shows a recovery compared to the higher declines in previous quarters (Q4 2023: -13%; Q3 2023: -23%). US regulations restricting the sending of bulk SMS from unregistered advertising campaigns, as well as the financial situation and price sensitivity of customers, remain the main reasons for the decline.
Average revenue per user (ARPU) increased by 52% year-on-year. The increase in ARPU was driven by a price increase in May, 2023 and the closure of low-volume customer accounts affected by regulatory restrictions and price sensitivity.
New feature of the Textmagic platform: BYOC
In March, we launched the Bring Your Own CPaaS (BYOC) service on the Textmagic platform, which allows users to integrate their own CPaaS (Communication Platform as a Service) accounts, such as Twilio or Vonage, with the Textmagic platform. Among other things, this allows users to send SMS and MMS using the numbers and terms of their CPaaS provider, while leveraging the functionality of Textmagic's software. With BYOC, we will significantly increase the attractiveness of the Textmagic platform for high-volume customers.
Distribution to shareholders
The management board of TextMagic AS has proposed to make a distribution of €0.35 per share to the shareholders, which amounts to a total of €2,975 thousand. The distribution will be made through a bonus issue followed by a share capital reduction. Shareholders have the opportunity to vote on the bonus issue and other items on the agenda until April 19, 2024, 12:00 (GMT+2). The notice of meeting and the draft resolutions are availablehere.
Additional information:
Getter Grünmann
TextMagic AS, CFO
investor@textmagic.biz
https://investor.textmagic.com/
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TextMagic AS published this content on 09 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 April 2024 05:07:02 UTC.
