Text is the former Livechat company listed in Poland.
A Tech and AI company at ten times earnings.
Whether It is a AI winner or loser remains to be seen in the long term, but AI is creating more competition for Text.
It is a former market darling from Poland that I keep an eye on.
This is a company known for integrating text chat boxes into your websites or apps, and now AI into the workflows.
But before that, a word about last week article. It contained an error in the way I understood the NAV calculation page, and I have corrected it. The opportunity is more at 8 times earnings rather than 5 times earnings. The writing on the company materials does not have the clarity that we need as investors. I am however happy to hold or add.
I was lately doing a survey of the Agentic AI marketplace for professional needs and went back to look at what the major AI companies can do: short answer: not so much yet. Agentic is definitely overhyped since what I found is that it remains inferior to old school automation (Zappier/Python/Javascript). The reason why it is inferior is probably not technological. It is that the AI companies are limiting processing available to users. Prompts are just getting refusals: “no I won’t do all this work”. Or worse “I did this work” - “Well no actually, I didn’t and invented the outcomes”.
We have the technology to control screens and operate actions with screen image analysis. But it is inefficient compared to running code that connects services through APIs, or analyses data in the database itself, and will always remain inefficient unless Ram and processing power drops like 1000x in price. The takeway is that Memory and efficiency is a real bottle neck, and that manual orchestration of automation will remain key in the future due to the need for efficiency.
Back to Text SA:
Text Allows you to integrate Chatboxes onto your website, use AI chatbots, have a ticketing system, all integrated with automation and reporting.
Before AI, Text was not unique but more a rarer type of company as it focused on seamless integration with different backend workplaces and websites, to allow your agents to talk to customers and help with service or ordering.
Now the field is seeing an explosion of startups.
Text rebranded, with a new website, a new ugly unreadable logo and a newer positive focus on sales increase rather than customer service.
They claim that adding these chatboxes with AI or human agents increase conversion on websites. It’s pretty obvious. The problems are however numerous: product offering, competition and go to market. We will see that later.
Let’s review the latest KPIs for the company and the competitive environment.
After quarters of declining MRR or monthly recurring revenue, the most recent update showed an increase. This was not by a growth in customers but rather by a discontinuation of legacy pricing.
The share of customers with high MRR is growing while small customers are dropping in terms of MRR.
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