TextMagic group’s sales results for Q1 2025

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The group’s unaudited consolidated revenue decreased in the first quarter of 2025 by 9% year-over-year to €3,680 thousand (Q1 2024: €4,026 thousand).

*Textmagic SMS platform's revenue is affected by foreign exchange rates. If exchange rates had been the same as in 2024, SMS platform revenue in Q1 2025 would have been €3,440 thousand.

Textmagic SMS platform’s sales results for Q1 2025

*An active user is any unique paying customer who has used Textmagic SMS platform services during the reporting period.
**ARPU is calculated as Unaudited revenue / Active users.

The decline in usage volumes continues to be mainly affected by U.S. regulations, which restrict the sending of mass messages for unregistered marketing campaigns. To increase competitiveness and improve customer satisfaction, we have added more affordable pricing plans and offered free access to new modules.

Q1 2025 overview

Textmagic’s platform development in the first quarter continued to focus on expanding its value proposition and functionality. As part of this, additional communication channels were added to the platform, including Business Instagram and Facebook Messenger, along with the Deals module to support better customer relationship management. These updates help businesses manage various customer interactions and information exchanges within a single environment.

In the first quarter of 2025, the previously high pace of development slowed. To optimize development activities and improve cost efficiency, the team was downsized, resulting in a monthly development cost reduction of around €100 thousand. In the coming periods, the focus will shift to customer-centric development aimed at improving the existing product and customer journey, rather than building entirely new features. The goal of these customer-centric and cost-effective changes is to restore revenue growth and increase profitability.

Additional information:
Getter Grünmann
TextMagic AS, CFO
investor@textmagic.biz
https://investor.textmagic.com/