28.08.2020

Consolidated revenues of LiveChat Software rose by 38%, net profit by more than 41% in Q1 of 2020/21 FY

The consolidated revenues of the LiveChat Software Group in the 1st quarter of the financial year 2020/2021 (i.e. the period from April to June) amounted to PLN 41.6 million, and the net profit was PLN 20.8 million. This represents an increase by 37.9 and 41.4 percent, respectively, in comparison with the same period of last year.

We managed to smoothly transform into an organisation based entirely on home office already in March. Although we reopened our office in July, we are still a company where you can work from anywhere in the world. This requires excellent organisation, but we are good at this. What is more, the pandemic has not harmed our business because online communication with customers is becoming increasingly important to companies from all over the globe” – said the CEO, Mariusz Ciepły.

This has been proven by the financial results. Revenues grew by almost 38%, operating profit by 41.9% and EBITDA by 44.1%. These results do not take into account the potential effect of the IP Box tax relief.

The pandemic harmed many companies, including LiveChat clients, which represent virtually all sectors of the economy. As a result, the customer churn for the LiveChat product grew significantly in March and April. However, this was successfully compensated for by the inflow of new clients; also, churn in May and June was already significantly smaller than in the two preceding months. This way, the company was able to announce in June that the number of LiveChat clients exceeded 30 thousand. At the end of the quarter, this number reached 30,391.

Another product of the Company, ChatBot, is also developing quickly. At the end of June, the solution was used by 1,350 paying clients already, and the generated revenues amounted to PLN 1.25 million – i.e. 250% more than in the corresponding period of the previous year.

LiveChat Software still records very high operating margins (86.2% of the gross margin on sales, 61.7% of operating margin and 50% of net margin). It is an efficient cash generator, and the net operating cash flows in the 1st quarter of the financial year amounted to PLN 24.3 million. It shares it with the shareholders: on 18 August, the General Meeting decided to pay a record-high dividend, which will amount to PLN 2.48 per share (since the Company previously made advance dividend payments, the amount left to be paid is PLN 1.28 per share).