TextMagic : 2021 consolidated 12 month unaudited interim report

TextMagic
Company Announcement TextMagic AS 2021 consolidated 12 month unaudited interim report

TextMagic AS was registered in the Estonian Commercial Register on 21 April 2021. TextMagic Group consists of TextMagic AS (the parent company), two fully owned subsidiaries (TextMagic Ltd. and TM Ops OÜ) and a subsidiary of TM Ops OÜ (TM Marketing Ops Srl).

A2P SMS platform sales figures and business volumes for 2021 **

The unaudited consolidated sales revenue of TextMagic AS, for 2021, amounted to €3.1 million, up from platform sales of €2.3 million in Q4 of 2020.*

The pro forma total revenue generated by TextMagic's A2P SMS platform in 2021 increased by 38% from the previous year (€7.9 million in 2020), and total €10.9 million. Excluding exchange rate effects, sales of platform services in our primary U.S. market increased by 44% year-on-year to $7.8 million in 2021, up from $5.4 million in 2020.

	2021	2020	Change
Unaudited sales revenue (million)	€10.9	€7.9	38%
Volume of SMS messages (million)	248.8	172.1	45%
Active users***	31,203	26,194	19%
Average revenue per user (ARPU)	€349.3	€301.6	16%

*TextMagic AS's group in its current form has existed since the end of September 2021, which is why we compare figures from the A2P SMS platform from Q4 of 2020.

**Results of the TextMagic (www.textmagic.com) platform. TextMagic AS's group has existed and is operating in its current form since the end of September 2021, which is why the results of the TextMagic platform have been consolidated in the reports of TextMagic AS since the restructuring.

***An active user is any paying customer of the TextMagic A2P SMS platform who has sent at least one SMS in 12 months.

Important events of 2021 and plan for 2022

In 2021, TextMagic AS conducted an initial public offering (IPO) of shares of TextMagic AS, which was subscribed by nearly 15 000 investors. The company raised €2.5 million.

In order to increase TextMagic A2P SMS platform's customer retention and ARPU, 2022's plans include launching a monthly subscription service in the United States, the United Kingdom, Australia and Canada.

TextMagic AS are also actively recruiting new software engineers (and various other team members) for the TextMagic A2P SMS Product Development team.

In 2021, we began the development of Touchpoint - our new customer engagement product for sales, marketing, and customer support functions.

The Touchpoint development team has grown to 23 members, consisting of product managers, designers and front-end and back-end developers. We are also considering involving outsourced software developers.

By the end of Q1 2022, we will begin beta testing the first set of product modules internally.

In 2021, we also carried out a large-scale UI/UX design project, in partnership with the Canadian interface design agency, Metalab.

In 2022, TextMagic AS continues to aim for an organic annual growth rate of between 30% and 40%.

CONSOLIDATED UNAUDITED FINANCIAL STATEMENTSFOR 12 MONTHS OF 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousand euros)	31.12.2021
Non-current assets
Property, plant and equipment	80
Intangible assets and goodwill	51 156
Total non-current assets	51 236
Current assets
Trade and other receivables	77
Prepayments	129
Cash and cash equivalents	6 035
Total current assets	6 241
TOTAL ASSETS	57 477
Liabilities
Current tax liabilities	213
Trade and other payables	1 091
Contract Liabilities	1 458
Total current liabilities	2 762
Total liabilities	2 762
Equity
Share capital	850
Share premium	53 792
Other reserve	153
Foreign currency translation reserve	14
Retained earnings	(94)
Total equity attributable to owners of the parent	54 715
Non-Controlling interests	0
Total equity	54 715
TOTAL EQUITY AND LIABILITIES	57 477

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(in thousand euros)	21.04.2021 - 31.12.2021
Revenue	3 081
Other income	1
Goods, raw materials and services	(1 039)
Other operating expenses	(734)
Work performed by the entity and capitalised	2
Employee expenses	(196)
Depreciation, amortization and impairment of non-current assets	(1 206)
Other expenses	(2)
Operating profit (loss)	(93)
Profit (loss) before tax	(93)
Income tax	(1)
Profit (loss) for the period	(94)
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Foreign currency translation differences	14
Other comprehensive income for the period, net of tax	14
Total comprehensive income for the period	(80)

CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousand euros)	21.04.2021-31.12.2021
Cash flows from operating activities
Profit (loss) for the period	(94)
Adjustments for:
Depreciation and amortization	1 206
Deferred income	(32)
Other adjustments	57
Total adjustments	1 231
Changes in trade and other receivables	167
Changes in contract liabilities	82
Changes in prepayments	(78)
Changes in trade and other payables	(533)
Net cash from operating activities	775
Cash flows from investing activities
Net cash flows from business combinations	3 231
Acquisition of property, plant and equipment	(9)
Development expenditure	(534)
Net cash used in investing activities	2 688
Cash flows from financing activities
Contribution to the share capital and share premium	2 525
Net cash from financing activities	2 525
TOTAL CASH FLOWS	5 988
Cash and cash equivalents at the beginning	0
Effect of movements in exchange rates on cash held	47
Cash and cash equivalents at the end	6 035

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Total equity attributable to owners of TextMagic AS
(in thousand euros)	Share capital	Share premium	Other reserve	Foreign currency translation reserve	Retained earnings	Non-controlling interests	Total equity
Balance at 21 April 2021	0	0	0	0	0	0	0
Profit (loss) for the period	0	0	0	0	(94)	0	(94)
Other comprehensive income for the period	0	0	0	14	0	0	14
Transactions with owners of the Company	850	53 792	0	0	0	0	54 642
Other changes in equity	0	0	153	0	0	0	153
Balance at 31 December 2021	850	53 792	153	14	(94)	0	54 715

Attachments:
TextMagic AS IFRS aruanne 2021 ENG_28.02.2022 12m interim report v2.pdf