The unaudited consolidated sales revenue of TextMagic AS, for Q4 of 2021, amounted to €3.1 million, up from platform sales of €2.3 million in Q4 of 2020.*
A2P SMS platform business volumes for 2021**
The unaudited total revenue generated by TextMagic’s A2P SMS platform in 2021 increased by 38% from the previous year (€7.9 million in 2020), and totaled €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.
The detailed financial results of TextMagic AS are presented in the unaudited annual report for the year ended 31 December 2021 on 28 February 2022, and in audited form on 31 March 2022.
2021 Review and Plans for 2022
IPO and raising capital
- Last year, we 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.
TextMagic A2P SMS platform
- In order to increase customer retention and ARPU, this year's plans include launching a monthly subscription service in the United States, the United Kingdom, Australia and Canada.
- Presently, our A2P SMS services are sold solely via a pay-as-you-go (PAYG) pricing model.
- Our A2P SMS customers will soon be able to choose between a monthly subscription, or the PAYG model.
Touchpoint product development
- Last year, we began the development of Touchpoint – our new customer engagement software for sales, marketing, and customer support functions.
- By using Touchpoint, companies can integrate multiple communication channels (SMS, email, text applications and calls) into one centralized environment.
- 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.
- For Touchpoint we also acquired the ‘touchpoint.com’ domain name, at a cost €64,000.
- In 2021, we also carried out a large-scale UI/UX design project, in partnership with the Canadian interface design agency, Metalab.
Recruitment
- We are actively recruiting back-end developers (PHP), front-end developers (Vue.js), product managers (SaaS) and QA engineers for the TextMagic A2P SMS and for Touchpoint product development teams.
- To improve strategic decision making and introduce fresh ideas to the company, we also plan on adding several senior management positions and C-suite executives to the TextMagic team – including a CFO, a HR Manager, a PR and Communications Manager and a Group Marketing Manager.
- We also launched a new TextMagic careers website
Growth strategy
- TextMagic AS continues to aim for an organic annual growth rate of between 30% and 40%.
Comment by Priit Vaikmaa, CEO of TextMagic AS:
“2021 was a year of monumental change for TextMagic AS. We conducted an IPO of shares of TextMagic AS and also created for all employees, via establishing a share option program, a possibility to become a shareholder of TextMagic AS. We are now a publicly traded company with the tools, capability and desire to implement our growth strategies faster and with greater effect.
The marketing campaign carried out as part of the IPO helped to introduce the TextMagic brand to future employees and industry talent. Total cost of the IPO marketing campaign was €158,000.
Recruitment and staff retention remain vital to building on the successes of 2021. In addition to our share options program, we want to both attract and retain talent by offering our employees competitive salaries and a good working environment.”
Additional information:
Priit Vaikmaa
CEO, TextMagic AS
investor@textmagic.biz
Links:
https://investor.textmagic.com/
https://careers.textmagic.com/