TEXTMAGIC Company Announcement TextMagic A2P SMS platform sales results for Q4 2022
TextMagic A2P SMS platform's Q4 2022 unaudited consolidated revenue increased by 26% year-on-year to EUR 3.87 million (Q4 2021: EUR 3.08 million).
| Quarter | Q4 2022 | Q4 2021 | Change |
| Unaudited sales revenue (million) | €3,87 | €3,08 | +25,6 % |
| Volume of SMS messages (million) | 80,69 | 68,11 | +18,5 % |
| Active users*, 3 months | 28 148 | 25 623 | +9,9 % |
| Average revenue per user (ARPU)**, 3 months | €137 | €120 | +14,2 % |
* An active user is any unique paying customer who has used TextMagic A2P SMS platform services during the reporting period.
**ARPU is calculated as Unaudited sales revenue / Active users.
| 12 months | 2022 12 months | 2021 12 months | Change |
| Unaudited sales revenue (million) | €13,95 | €10,89 | +28,1 % |
| Volume of SMS messages (million) | 294,02 | 248,83 | +18,2 % |
| Active users*, 12 months | 37 934 | 50 258 | -24,5 % |
| Average revenue per user (ARPU)**, 12 months | €368 | €217 | +69,6 % |
* An active user is any unique paying customer who has used TextMagic A2P SMS platform services during the 12 months. If the same customer buys at different times during a 12-month period, he/she will be counted as a unique customer in each period when looking at the shorter period but only once when looking at the 12-month period. Therefore, the numbers of quarterly active users can not be aggregated.
**ARPU is calculated as Unaudited sales revenue / Active users.
The impact of exchange rate movements on 2022 sales revenue
Revenue for the fourth quarter of 2022 amounted to EUR 3.87 million, an increase of 25.6% year-on-year. If the USD, GBP and AUD exchange rates had been similar to 2021, revenue for the fourth quarter of 2022 would have been EUR 3.57 million, an increase of 15.9% compared to the fourth quarter of 2021.The positive impact of the change in exchange rates for the fourth quarter of 2022 was EUR 0.3 million.
Revenue for the 12 months of 2022 amounted to €13.95 million, an increase of 28.1% compared to 2021. Excluding exchange rate fluctuations, the 12-month revenue for 2022 would have been EUR 12.79 million, an increase of 17.4% compared to 2021. The total positive impact of the 12-month exchange rate fluctuations for 2022 was EUR 1.16 million.
Recruitment in 2022
In total, the team grew by 41 people over the year. By the end of the fourth quarter, the team had a total of 88 members.
Financial forecast 2023
For 2023, we expect revenue of EUR 16.26 million excluding the impact of exchange rates, which is an increase of 17% compared to 2022. In the revenue forecast, we have only taken into account the turnover of the A2P SMS platform. Turnover from the new product Touchpoint will start to emerge in 2024.
| 2023 | |
| Sales Revenue (mln) | €16,26 |
| EBITDA (mln) | €7,10 |
| Free Cashflow (mln)* | €1,52 |
*Free cash flow is profit before tax plus depreciation and amortisation less working capital changes and capital expenditure.
Priit Vaikmaa, CEO of TextMagic AS comments:
"The main focus for 2022 was to increase the team. In total, the company managed to recruit 41 new team members. Most of the new recruits were software developers. We will continue to grow our team in 2023, but at a slightly slower pace.
The number of active users of TextMagic in 2022 grew steadily quarter on quarter. Compared to 2021, the longer period decline in active users was expected as the corona crisis started to recede and the temporary needs-based interaction of one-off customers disappeared.
TextMagic's messaging business growth rate in 2022 was driven by the strength of the USD. Unfortunately, the economic picture has changed and as a result we have made our growth forecasts for 2023 more conservative. We forecast higher business growth in 2024 when Touchpoint sales revenues are added.
The main focus this year will be the launch of Touchpoint in the fourth quarter. To date, more than 500 potential customers have already signed up to Touchpoint's waiting list."
Fred Metsma
CFO, TextMagic AS
fred.metsma@textmagic.biz
https://investor.textmagic.com/
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TextMagic AS published this content on 10 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 January 2023 14:32:32 UTC.
