Sales Improving from LiveChat (now Text)

The software from Polish company for conducting conversations with customers over the Internet to sales improving began to enjoy great popularity 3 years ago. It was during the pandemic, when companies began to implement digital solutions for communication with customers massively. Over 40,000 people currently use products from Text. With annual revenues of over $75M and a fabulous net profit of over $38M.

Currently, 99% of the company’s customers come from abroad. Almost 95% of the consolidated sales revenues of the group are realized through its subsidiary in the USA. The company was founded in 2002 in Poland. Since 2018 it has been operating globally from the USA. It has been listed on the Warsaw Stock Exchange since 2014 but does not rule out entering the NYSE. Its valuation already in 2015 exceeded $250M.

The main LiveChat product, offered by the company in the SaaS model, is currently used by over 37,000 customers. ChatBot, a platform for creating chatbots, is used by over 2,600. Initially, the company offered its solutions for the SMB sector. Now nearly 80% of sales are made in the USA to large clients. Such as Bosch, KG, Philips, Samsung, Stanford University, and UCLA. Its clients come from over 150 countries worldwide, mainly in e-commerce, web hosting, online gaming, and forex sectors.

A competition with Messenger

In 2017, when Facebook launched a free Messenger similar to LiveChat, the company’s fate seemed sealed. However, this did not happen. It was because LiveChat is incomparably more technologically advanced than its competitor. Recently, it has even come to the point that LiveChat can be integrated with it, just like with Apple, SMS, or Alexa.

Over 50% increase in revenues and profits in the first quarter of 2023 was due to the first increase in subscription fees in 9 years (by 13-30%). And the fact that the company announced that soon LiveChat would be integrated with ChatGPT. It could help Text to take a giant step towards further development. A low-cost operating model characterizes the company. It is 20 times smaller than the market leader, LivePerson, but employs 30 times fewer people and has a ten times higher operating margin. No wonder the fortune of the company’s owner, Mariusz Cieply, is currently estimated at $600 million.

Read more about Cosmose AI, platforms that influences the way customers shop, here.

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