In the 3rd quarter of the 2019/2020 financial year, the consolidated revenues of the LiveChat Software Group amounted to PLN 32.4 million, and the net profit was PLN 15.8 million. Cumulative revenues during all three quarters increased by 18.8% to PLN 94.9 million, and net profit grew by 11.5%, reaching PLN 47.0 million. The Company began this calendar year with a bang.
“Many important things happened at the beginning of 2020. We were able to announce that ChatBot reached its first thousand paying customers, and we changed the pricing model for LiveChat, which was something we had been getting ready to do for a long time. Personally, I am very glad that we have acquired the livechat.com domain. It is a symbolic event for us, but it will also provide an actual boost to our marketing activities” – said the CEO of the company, Mariusz Ciepły.
Starting this year, the Company has also changed its reporting method. It no longer announces monthly data regarding the number of LiveChat customers, instead publishing preliminary, estimated data concerning consolidated revenues.
“Our business is changing, and we have adapted our reports accordingly. This is a step forward because the analysts will now no longer be forced to estimate our revenues based on the number of LiveChat customers. We will simply state the revenues directly, complete with other sources of revenue, which are becoming increasingly important to us, as well as further products and the marketplace” – emphasised the head of LiveChat Software. The Company generates nearly all of its revenues in the US currency, which is why the preliminary revenues are given in dollars, to make it easier to estimate how the business is growing.
The business model of the Company is the reason it can generate very high operating margins. During 9 months, the gross margin on sales was 85.3%, the operating margin amounted to 61.4%, and the net margin was 49.4%. The cash flows on operating activities amounted to PLN 51.4 million.
In the third quarter of the financial year, the Company made the first advance payment to its shareholders towards the expected dividend, and it had PLN 39.4 million in cash as of the end of December.
The acquisition of the livechat.com domain will be shown in the cash flows for the 4th quarter. Irrespective of this transaction, LiveChat Software reaffirms its dividend policy.
“We intend to assign the maximum amount permitted by the law for dividend, and we will also be making advance payments towards it” – added Mariusz Ciepły.
LiveChat Software operates in the “customer service” business, and it is one of the leaders of the global market for live chat solutions. Its LiveChat product supports companies in customer service, online sales support and lead generation. This way, LiveChat partners can stay in touch with their customers anywhere and at any time. Other products of the Company include ChatBot, HelpDesk and KnowledgeBase.
LiveChat Software employs over 160 specialists at its headquarters in Wrocław. For almost six years, it has also been a company listed on the main market of the Warsaw Stock Exchange.
LiveChat is used by over 28 thousand companies from approx. 150 countries, and the ChatBot product has found 1000 customers in over 30 countries.