Terms & Conditions

This presentation serves for information purposes only and should not be treated as investment-related advice.

This presentation has been prepared by LIVECHAT SOFTWARE S.A. (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for any damage resulting from the use of this presentation or a part thereof, or its contents or in any other manner in connection with this presentation.

The recipients of this presentation shall bear exclusive responsibility for their own analyses and market assessment as well as evaluation of the Company’s market position and its potential results in the future based on information contained in herein.

To the extent this presentation contains forward-looking statements related to the future, in particular such terms as ”designed”, ”planned”, ”anticipated”, or other similar expressions (including their negation), they shall be connected with the known and unknown risks, uncertainty and other factors which might result in actual results, financial situation, actions and achievements being materially different from any future results, actions or achievements expressed in such forward-looking statements. Neither the Company nor any of its subsidiaries shall be obliged to provide the recipients of this presentation with any additional information or to update this presentation.

I understand

Company presentation

LiveChat Software S.A.

Start Terms & Conditions
Mariusz Ciepły
President of the Board

Mariusz Ciepły is one of the founders and key shareholders of LiveChat Software. He graduated from the Wrocław University of Technology, from the Faculty of Electronics (specialization: Information Systems Engineering). He has been the President of the Board since 2010. He is a member of supervisory boards of Venture Incubator S.A. and Time Solutions sp. z o.o.

LinkedIn Profile
Urszula Jarzębowska
Member of the Board, CFO

Urszula Jarzębowska holds a higher MSc. qualification and graduated from Oskar Lange Wrocław University of Economics from the Faculty of National Economy, where she defended her MSc. thesis in the Department of Accounting and Corporate Control. She has also graduated from Controlling at the Wroclaw School of Banking and in International Accounting Standards (IRS/IFRS) at Kozminski University in Warsaw. She gathered her experience in, for example, Bankier.pl and Internet Works. She has been working in LiveChat Software since 2002 and is a Member of the Board since 2010.

The fastest way
to reach customers

LiveChat helps companies connect with their website users in real time.

TRY IT NOW

We will connect you to one of our agents. You do not have to talk. Just see how it works.

x

Efficient customer service for many customers at once

A tool designed for a quick and efficient communication of the customer service department
with a large number of users.

LEARN MORE

Help always
within reach

No matter where you are,
you can easily answer customer questions
using a smartphone or a tablet.

LEARN MORE

13,000+ customers

We are a global
software provider operating
in the SaaS model

130+ countries

7% market share

One of the global leaders

+200

new customers monthly

75 %

growth in revenue
during 2014

90 % EBITDA

during 2014

18,9 %

forecast of the average annual
growth in the SaaS industry

We do not incur costs
of customer acquisition
high operating leverage

Beautifully designed
product for quick
customer service

Classic sales model

SaaS model

Classic sales model

  • High cost of new software acquisition
  • Implementation process extended in time
  • High costs of implementation, support and service
  • Limited product scalability

SaaS model

  • Predictable, fixed and low subscription fees
  • Short implementation with low costs
  • Significant savings on support and service costs
  • High product scalability

Advantages of SaaS product for the vendor

Global reach
with offered services

No geographical limitations

Simplified
distribution process

The software is available and sold online

Business scalability
and high profitability

High operating leverage

Reduction of service
and guarantee costs

Online service

Keeping the copyrights
by the developer

The customer has no access to the source code

No problem with piracy

No way to duplicate the software

Dispersed customer base

Independence from particular customers

Predictable flow of income

Subscription fees allow to predict revenues

No problems with receivables

Automated fee collection

Global reach of the company operations

  •  We are a global software provider operating in the SaaS model
  •  We have an established market position and a very recognisable brand
  •  Our solution is sold in over 130 countries to over 10,000 customers
  •  We are one of the leading providers of live chat services
Sources:
- LeadLedger
- Company
Sources

LiveChat – the best product on the market

Best design

  • Product designed specifically for quick online customer service
  • Designed to satisfy the needs of customers of all sizes and from all industries
  • LiveChat is being continuously developed and improved

Modern technology

  • Offered as an application on many platforms (web, iOS - iPhone/iPad, Android, OSX, Windows)
  • Technologically independent from external suppliers (own technology, dispersed infrastructure)
  • We are prepared for a dynamic growth – full product scalability – we grow with our customers

The highest standards of customer service

The best customer service in the industry (customer satisfaction exceeding 90%)

Dynamic growth in sales and customer count

  •  As of the beginning of June 2015, our solutions were used by a total of 10,895 customers
  •  From the début on WSE, we obtained over 200 customers each month. In May we increased the number by 357 net, which is the best result in the company's history
  •  The value of repeatable sales in H1 2014/15 amounted to USD 698K
Sources:
- Company
Sources

Growth rate of live chat services

Higher number
of Internet users

  •  The growing number of Internet users contributes to the development of the SaaS market. There are now 2.4 bn Internet users, with the Internet penetration on the largest SaaS market (In North America) reaching the level of 78.6% (as of 06/30/2012).

Growth of
online sales market

  •  Predicted growth in the value of online retail sales market supports the development of alternative forms of contacting customers
  •  Predicted value of online retail sales in the USA in 2014 amounts to USD 248.7 bn

Growth in the popularity
of alternative forms
of contacting customers

  •  New service methods, alternative towards traditional forms (i.e. call center), raise the efficiency of customer service by allowing companies to provide their service to several customers at a time
Sources:
- Internet World Statistics – World Internet Users and Population Statistics
- Analytical report of LivePerson Inc., Ladenburg Thalmann (17.07.2011 r.)
- Company, using Forrester Research
Sources

LiveChat
strategy

Our strategy foresees the further dynamic growth in revenue maintaining high EBITDA profitability, due to a continuous development of the products, obtaining customers in a low-cost model and keeping fixed costs low.

Growth in customer base

  •  Automation of marketing activities and inbound marketing
  •  Strengthening the position of LiveChat in the customer service area
  •  A new subscription plan for data-driven companies that allows us to reach businesses operating on a larger scale, supported by:
    - dedicated customer service specialists
    - Key Account Managers
    - Service Level Agreements
  •  Further development of the Affiliate program through cooperation with companies offering complementary services:
    - product implementation (interactive agencies, web developers)
    - customer service outsourcing (call center companies, BPOs)

Product development

  •  Constant and balanced expenditures for the further development of LiveChat product:
    - developing new functions for the applications
    - new communication channels (development of the ticketing system, mobile systems, social media, integrated communicator)
    - tools for larger data-driven companies

Acquisitions

  •  In the long run, we do not rule out the development through selective acquisitions of entities from the customer service sector. We have been monitoring the start-up market on a continuous basis.

Sales
revenue

  •   Sales revenues are growing proportionally to the number of customers and during 2014/15 fiscal year rose by 75%.

Profitability
analysis

  •  Due to an efficient business model (high operating leverage, marginal variable costs related to obtaining new customers), the company generates extraordinarily high profitability levels
  •   During 2014FY, the company maintained high operating profitability. EBITDA margin amounted to 72.7%, while net margin rose to 56.2%.

Dividend capabilities
and cash position of the company

  •  A highly efficient model of the company that does not requires any considerable capital expenditure allows to maintain a high level of cash in the company
  •  Dividend policy foresees distribution of the whole profit, unless investment opportunities occur, which would guarantee a higher return rate to the company and shareholders

Forecast realization

The company presented financial forecast in Prospectus published on 19 March 2013. Forecast were exceeded by:

revenues - 30.5%
EBITDA - 26.9%
net profit - 24.2%

Key milestones in
2014-2015

  •  March-April: Public offering totaling to almost PLN 60 mn and evaluation at the level of over PLN 476 mn
  •  11 April: Début on WSE's main market
  •  June: Publication of 2013/14 results and realization of the financial forecast
  •  July: Over 8,000 customers
  •  23 July: General Meeting decides to pay out the entire profit for 2013/14 as dividend
  •  April: Over 10,000 customers

Thank you for your attention

Visit livechatinc.com