The Evolution of Tech Player’s Customer Service Solutions Merits Close Attention

Photo of author
Written By Kris Enyinnaya

In the ever-evolving domain of customer service technologies, Text has emerged as a pivotal player. Founded in 2002 and based in Poland, Text has significantly expanded its horizons beyond its flagship product, LiveChat.

The rebranding from LiveChat to Text in January 2024 underscores the company’s ambition to encompass a broader spectrum of customer service technologies, reflecting its adaptability and forward-thinking approach.

Product Portfolio

text offers a diverse range of products, including LiveChat, ChatBot, HelpDesk, KnowledgeBase, and OpenWidget. LiveChat remains the cornerstone, contributing to 91.2% of the company’s revenue, with approximately 37,000 customers globally.


Although smaller, ChatBot, with around 2,800 customers, represents the company’s foray into AI-driven customer service solutions.

Read More: Is LAZR’s Share Price Weakness a Buying Opportunity?

Financial Performance and Market Dynamics

Text’s financial year 2023 saw an impressive revenue generation of $90.6 million, marking a 45.4% growth from the previous year.

Despite this growth, the company faces challenges, particularly with contracting gross margins, which decreased to 82.7% in 2023 from higher percentages in the preceding years.

This trend signals increased competition and the pressing need for strategic differentiation amidst a saturated market.

Competitive Pressures and Margin Contraction

The proliferation of chat-based customer service solutions, spurred by technologies like ChatGPT, has led to an oversupplied market.

Text’s dwindling gross margins from 86.6% in 2021 to 82.7% in 2023 highlight the intense price competition. If Text cannot distinctively position its offerings, it risks further margin erosion.

Also Read: A Case Study of Unity Biotechnology and The Volatility of The Stock Market

Strategic Positioning and Growth Prospects

Despite the formidable growth of LiveChat, its customer base expansion has plateaued, with net growth stagnating around 80 clients annually.

This slowdown is indicative of a broader market shift towards AI-driven customer services, posing a challenge for LiveChat’s future dominance.

The Role of ChatBot in Text’s Future

With the global chatbot market projected to grow at a CAGR of 23.3% from 2023 to 2030, Text’s ChatBot has not mirrored this growth trajectory, increasing only by 10% from 2022.

This discrepancy raises concerns about Text’s ability to leverage ChatBot as a successor to LiveChat amidst evolving market preferences.

Valuation Concerns and Comparative Analysis

Text’s valuation, with an EV/Revenue multiple of 6.1x based on the latest OTC price, appears inflated compared to peers like Yext, which trades at a multiple of 1.6x.

This disparity warrants a cautious investment approach, especially considering Text’s competitive challenges and the inherent risks of OTC securities.

Future Outlook and Investment Implications

While Text has demonstrated significant growth and a strong dividend history, the changing dynamics of the customer service technology market necessitate a strategic re-evaluation.

The potential saturation of LiveChat’s growth and ChatBot’s underwhelming performance present critical hurdles for Text’s future trajectory.

Standing at a Crossroads

Text is at a crossroads, facing the dual challenge of sustaining growth in its flagship product, LiveChat, and catalyzing the growth of emerging products like ChatBot in a highly competitive market.


The company’s historical success and firm financial foundation are juxtaposed against the imperative for innovation and strategic differentiation.

As Text navigates this complex landscape, investors must closely monitor its ability to adapt and thrive.

Read Next: iBio Unveils Revolutionizing ShieldTx Antibody Delivery with AI


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.