TEXTMAGIC Company Announcement TextMagic group's sales results for Q2 2023
TextMagic group is a group of four companies that manage a portfolio of SaaS products. The parent company TextMagic AS manages software development and general business operations. 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 revenues increased in the second quarter of 2023 by 6% year-over-year to EUR 3,507 thousand (Q2 2022: EUR 3,299 thousand). On June 1, 2023, the group acquired a 100% subsidiary Edicy OÜ, the company that manages the Voog website and e-commerce platform. The financial results of the Voog platform have been consolidated from the date of acquisition and the impact on the group's revenues was EUR 60 thousand.
The unaudited consolidated total revenues of the group for the first half year of 2023 amounted to EUR 6,779 thousand (H1 2022: EUR 6,404 thousand).
TextMagic SMS platform's sales results for Q2 2023 and 6 months
| Quarter | Q2 2023 | Q2 2022 | Change |
| Unaudited revenue (thousand) | €3,447 | €3,299 | +4 % |
| Volume of SMS messages (thousand pcs) | 63,898 | 69,813 | -8 % |
| Active users* | 29,240 | 27,207 | +7 % |
| Average revenue per user (ARPU), 3 months** | €118 | €121 | -2 % |
| Half year | H1 2023 | H1 2022 | Change |
| Unaudited revenue (thousand) | €6,719 | €6,404 | +5 % |
| Volume of SMS messages (thousand pcs) | 136,409 | 137,029 | -0 % |
| Active users* | 32,611 | 30,699 | +6 % |
| Average revenue per user (ARPU), 6 months** | €206 | €209 | -1 % |
* 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 second quarter of 2023, unaudited revenues and the number of active users increased compared to the same period in 2022, although SMS volumes decreased.
As in the previous quarter, the growth rate of the A2P messaging market is being affected by the general economic environment and the financial situation of users, as well as by changes in US regulations restricting the mass transmission of unregistered campaign messages. These regulations will have a positive impact on SMS marketing by reducing spam and fraudulent messages. In June, we launched new features to simplify and automate the 10DLC registration process for our customers.
At the end of May, we implemented our first price increase in eight years. The pricing change was carefully considered to reflect the value added and improvements we have made to the platform over the years. We expect this to contribute positively to revenues in the coming periods, and support our overall growth strategy and outlook. It will also fund the continued development and enhancement of the platform to meet customer expectations and needs and to support growth in usage.
Previous factors have led to a decline in volumes, but thanks to price increases we were able to maintain revenue growth of 16% in June.
Q2 2023 review
By the end of June, the team had grown to 111 members, up from 67 in June 2022. This growth included not only a general expansion of the development and marketing teams but also the addition of eight members from Voog.
In addition to the financial manager who joined the team in the previous quarter, the management team has expanded by one more member in the second quarter. In April, a Chief Strategy Officer was hired to lead the development of new growth strategies to expand operations and accelerate growth.
The acquisition of Voog was our first M&A deal, with a strategic focus on building, buying and managing a diverse portfolio of SaaS products to strengthen our market position.
TextMagic group's current portfolio:
| TextMagic - an A2P SMS platform that provides an easy-to-use and efficient solution for text messaging based communication. | Touchpoint - a customer service platform that enables companies to engage with their customers across multiple channels. | Voog - a platform that provides convenient and intuitive tools for creating and managing aesthetically pleasing websites and online stores. |
Product development progress
- TextMagic A2P SMS - During the second quarter, we continued to develop additional features for the A2P SMS platform that will enhance the user experience and support regulatory compliance.
- Touchpoint (www.touchpoint.com) is on schedule for development and launch in the final quarter of 2023. Over the past quarter, we have made significant efforts to integrate artificial intelligence (AI) technologies.
- Voog - In the first month after acquiring the Voog platform, we have focused on fostering collaboration and smoothly integrating new members into the group. We plan to expand the development team to support Voog's growth.
Additional information:
Priit Vaikmaa
TextMagic AS, CEO
investor@textmagic.biz
https://investor.textmagic.com/
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TextMagic AS published this content on 11 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2023 06:15:08 UTC.
