TextMagic
Company Announcement CORRECTION: TextMagic AS's consolidated unaudited interim report for the 12 months of 2022

NB! The revised notification includes a 12-month unaudited interim report with comparative data for the second half of 2022.

TextMagic AS was registered in the Estonian Commercial Register in April 2021. TextMagic Group offers software: the successful and long-established TextMagic A2P SMS platform and in development, the Touchpoint customer management software. The parent company TextMagic AS manages and develops the software and handles the Group's business management. TextMagic Ltd. is a UK-based customer-facing sales unit, TM Marketing Ops Srl is a marketing entity based in Romania.

A2P SMS platform sales figures and business volumes for 2022

TextMagic AS's unaudited consolidated revenue for 2022 was €13.83 million and its net profit was €4.62 million. The 2022 unaudited revenue of the TextMagic A2P SMS platform increased by 27% compared to the 2021 pro forma* revenue. The Group's cash flow from operating activities was €6.6 million, of which €3.5 million was used for investments. The cash balance increased by €3.1 million to €9.1 million (December 31, 2021: €6.0 million).

20222021*Change
Unaudited sales revenue (millions) €13.83** €10.89 +27%
EBITDA (millions) €6.24 €4.79 +30%
Investments in intangible assets (millions) €4.24 €2.03 +109%
Sent SMS (millions) 294.02 248.83 +18%
Active users***, 12 months 37 934 50 258 -25%
Average revenue per user (ARPU)**** €365 €217 +68%

* TextMagic Group in its current form has existed since the end of September 2021, and so pro forma figures are shown for the previous period. The pro forma figures show what the corresponding figures would have been, if the Group had operated with a similar structure in the reference period.

** TextMagic AS's company announcement for the fourth quarter of 2022 stated revenue of €13.95 million, which was refined during preparation of the annual report.

*** An "active user" is any unique paying customer of the TextMagic A2P SMS platform who made use the services of the platform during the relevant period.

**** ARPU is calculated as unaudited sales revenue divided by the number of active users.

Important eventsin 2022

  • TextMagic's team almost doubled in size. By the end of 2022 it comprised 88 members (2021: 47). Given the shortage of software developers and the strong competition in tech recruitment, this is a good result. The target of 100 members is planned to be reached in the first half of 2023.
  • Completion of the first Touchpoint modules and establishment of initial customer contacts. The speed and volume of development work is strongly linked to the speed of the development team's growth. The initial schedule was optimistic, but development milestones have been passed at a successful pace.
  • One notable achievement of the marketing team was the linking of the customer's journey to marketing channels and the generation of a database for more detailed analysis.
  • TextMagic AS merged with TM Ops OÜ, aiming at a more efficient management of the Group and harmonization of processes.

Plans and objectives for 2023

  • Launch of an update to the TextMagic A2P SMS platform.
  • Expansion of marketing activities, for which we plan to double the size of the marketing team.
  • ​Launch of Touchpoint initial modules in Q4 2023.
  • Continued growth in sales revenue (+17.6% or €16.26 million), EBITDA (+13.8% or €7.1 million) and investments (+27.5% or €5.65 million). Net profit is forecast at €4.95 million. In our forecasts, we have taken into account the effects on revenue of rising interest rates and the general economic environment, which is already reflected in the 2022 result. In the cost base, an increase is planned in both the development and marketing units.


Priit Vaikmaa, TextMagic AS's CEO comments:

"TextMagic continues to be a growing technology company - in terms of both revenue and profit. In 2022, the company achieved the highest profit in its history: €4.60 million. Despite the increase in investments, it also managed to increase its free cash balance to €9.1 million. We plan to continue to grow profitably.

In 2022 the shareholders decided on an equity payout of €2.55 million (30 cents per share), which will be paid in February 2023.

TextMagic plans to make future distributions to shareholders in accordance with its shareholders' resolutions, provided that sufficient funds are available for new investments.

A Touchpoint launch is planned for the fourth quarter of 2023. We believe that the launch of the new product will significantly accelerate the Group's sales growth rate in 2024. During 2023, TextMagic's messaging platform will also receive a completely new design, significantly enhancing its usability.

We plan to continue recruiting. We need more programmers, marketing specialists and product managers in order to meet our product development targets.

TextMagic AS's consolidated unaudited interim report for the 12 months of 2022 is attached to the release in PDF format.

CONSOLIDATED UNAUDITED INTERIM REPORT FOR12 MONTHS OF 2022

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in thousands of euros)31.12.202230.06.202231.12.202130.06.2021
Non-current assets
Property, plant and equipment 191 150 80 0
Intangible assets and goodwill 53,860 52,040 51,156 0
Total non-current assets54,05152,19051,2360
Current assets
Trade and other receivables 1 2 77 0
Prepayments 130 107 129 0
Cash and cash equivalents 9,145 7,555 6,035 25
Total current assets9,2767,6646,24125
TOTAL ASSETS63,32759,85457,47725
Liabilities
Current tax liabilities 102 151 213 0
Trade and other payables 890 564 1,091 0
Payables to shareholders 2,550 0 0 0
Contract Liabilities 1,546 1,428 1,458 0
Total current liabilities5,0882,1432,7620
Total liabilities5,0882,1432,7620
Equity
Share capital 850 850 850 25
Share premium 51,242 53,792 53,792 0
Other reserve 1,651 884 153 0
Foreign currency translation reserve (35) 4 14 0
Retained earnings (93) (93) 0 0
Current year profit/loss 4,624 2,274 (94) 0
Total equity attributable to owners
of the parent		58,23957,71154,71525
Total equity58,23957,71154,71525
TOTAL EQUITY AND LIABILITIES63,32759,85457,47725


CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

(in thousands of euros)01.01.2022 - 31.12.202201.07.2022 - 31.12.202221.04.2021-31.12.202101.07.2021 - 31.12.2021
Revenue 13,831 7,427 3,081 3,081
Other income 309 41 1 1
Goods, raw materials and services (4,657) (2,553) (1,039) (1,039)
Other operating expenses (1,579) (892) (734) (734)
Work performed by the entity and capitalized 4,235 2,582 629 629
Employee expenses (5,834) (3,427) (823) (823)
Depreciation, amortization and impairment of non-current assets (1,612) (823) (1,206) (1,206)
Other expenses (61) (3) (2) (2)
Operating profit (loss)4,6322,352(93)(93)
Profit (loss) before tax 4,632 2,352
(93)
(93)
Income tax (8) (2) (1) (1)
Profit (loss) for the period4,6242,350(94)(94)
Other comprehensive income
Items that are or may be reclassified subsequently to profit or loss
Foreign currency translation differences (49) (39) 14 14
Other comprehensive income for the period, net of tax (49)(39)1414
Total comprehensive income for the period4,5752,311(80)(80)


CONSOLIDATED STATEMENT OF CASH FLOWS

(in thousands of euros)01.01.2022 -31.12.202201.07.2022 - 31.12.202221.04.2021-31.12.202101.07.2021 - 31.12.2021
Cash flows from operating activities
Profit (loss) for the period4,6242,350(94)(94)
Adjustments for:
Depreciation and amortization 1,612 823 1,206 1,206
Other adjustments 551 276 57 57
Total adjustments2,1631,0991,2631,263
Changes in trade and other receivables 76 1 167 167
Changes in contract liabilities 88 118 82 82
Changes in prepayments (1) (23) (78) (78)
Changes in trade and other payables (313) 277 (533) (533)
Net cash from operating activities6,6373,822807807
Cash flows from investing activities
Net cash flows from business combinations 0 0 3,231 3,231
Acquisition of property, plant and equipment (192) (101) (9) (9)
Development expenditure (3,287) (2,095) (534) (534)
Net cash used in investing activities(3,479)(2,196)2,6882,688
Cash flows from financing activities
Contribution to the share capital and share premium 0 0 2,525 2,500
Net cash from financing activities002,5252,500
TOTAL CASH FLOWS3,1581,6266,0205,995
Cash and cash equivalents at the beginning 6,035 7,555 0 25
Effect of movements in exchange rates on cash held (48) (36) 15 15
Cash and cash equivalents at the end9,1459,1456,0356,035


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Total equity attributable to TextMagic AS shareholders

(in thousands of euros)Share CapitalShare premiumOther reservesUnrealized exchange rate differencesRetained earningsTotal equity
Balance as of 21.04.2021000000
Profit (loss) of the period 0 0 0 0 00
Other comprehensive income for the period 0 0 0 0 00
Transactions with shareholders 25 0 0 0 00
Other changes in equity 0 0 0 0 00
Balance as of 30.06.202125000025
Profit (loss) of the period 0 0 0 0 (94)(94)
Other comprehensive income for the period 0 0 0 14 014
Transactions with shareholders 825 53,792 0 0 054,617
Other changes in equity 0 0 153 0 0153
Balance as of 31.12.202185053,79215314(94)54,715
Profit (loss) of the period 0 0 0 0 2,2742,274
Other comprehensive income for the period 0 0 0 (10) 0(10)
Transactions with shareholders 0 0 0 0 00
Other changes in equity 0 0 731 0 1732
Balance as of 30.06.202285053,79288442,18157,711
Profit (loss) of the period 0 0 0 0 2,3502,350
Other comprehensive income for the period 0 0 0 (39) 0(39)
Transactions with shareholders 0 0 0 0 00
Other changes in equity 0 (2,550) 767 0 0(1,783)
Balance as of 31.12.202285051,2421,651(35)4,53158,239

Additional information:
Priit Vaikmaa
TextMagic AS, CEO
investor@textmagic.biz
https://investor.textmagic.com/

Attachments:
TextMagic AS_Consolidated Interim Report for the 12 month of 2022 unaudited.pdf

Attachments

Disclaimer

TextMagic AS published this content on 14 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2023 15:21:03 UTC.