CompetitorsThin moat
Text (TXT) — moat facet
The smallest market of any company here, shared with 210 rivals - and one competitor's newest product line is already larger than all of Text.
Text competes in the smallest market of any company in this collection, against the largest number of rivals.
Its own report puts the live-chat market at between 1,06 and 1,17 billion dollars in 2024, growing at 8 to 11% a year, and cites Datanyze counting more than 210 different technologies in it, a substantial number offered free or on a freemium basis1. Text's annualised recurring revenue is 89,52 million dollars2. The adjacent markets it has moved into are larger — chatbots at anywhere from 0,7 to 6,95 billion dollars growing 22 to 28%, helpdesk at 9,82 to 12,5 billion growing 7 to 10%3 — which is precisely why it moved.
The company names three competitors directly: Fin, previously Intercom; Zendesk; and Freshworks4.
The comparison that matters most is with the first. Fin's agent product passed 100 million dollars of annual recurring revenue growing at around 350% a year, inside a business at roughly 400 million dollars of ARR growing 27%5. One competitor's newest product line is larger than the entirety of Text, and growing while Text's recurring revenue fell 2,7%6.
The four pages below are four different kinds of contest, and only one of them is a fair fight over product quality — the one Text appears to be winning, with a 74% resolution rate against an industry average of 59% and Fin's reported 67%7.
What Text is losing is not the engineering argument. It is the distribution argument, and its chief executive says so: the market has strong competitors with enormous resources they can, and sometimes must to satisfy investor expectations, allocate to customer acquisition8.
Share is the measure, and the market being shared is the problem. At 89,52 million dollars of ARR in a market of roughly 1,1 billion, Text holds about a twelfth of live chat — and cannot grow much by taking share without taking it from firms that charge nothing.
Fin's agent product passed 100 million dollars of ARR growing around 350% while Text's recurring revenue fell 2,7%. Text is ahead on resolution rate and behind on everything that follows from distribution and capital.
Text cites Datanyze for the count and puts the live-chat market at $1,06-1,17bn growing 8-11%, against its own $89,52m of annualised recurring revenue - about a twelfth of the market. There is no licence, no capital barrier and no network effect between one customer's widget and another's, which is why the moat is rated thin. Watch gross margin: a crowd shows up in price before it shows up anywhere else.
Source: Text Group Management Board report for the financial year 2025/26 ↗- ReportedIts own report puts the live-chat market at between 1,06 and 1,17 billion dollars in 2024, growing at 8 to 11% a year, and cites Datanyze counting more than 210 different technologies in it, a substantial number offered free or on a freemium basis.Text Group Management Board report for 2025/26, strategy, products and market (the Service on Offense goal of turning customer service teams into revenue-generating centres, with the suite monitoring live traffic, recognising visitor intent, identifying returning visitors, enabling proactive outreach and tracking steps to monetisation or a qualified lead; a Go-To-Market period expected to be a long-term process requiring marketing expenditure with effects observed gradually; over 20 years of experience; competing solutions named as Fin, previously Intercom, Zendesk and Freshworks; the live-chat market valued at USD 1,06-1,17bn in 2024 growing 8-11%, the chatbot market at USD 0,7-6,95bn and the helpdesk market at USD 9,82-12,5bn; and Datanyze counting more than 210 different live-chat technologies, a substantial number offered freemium, with monetisation of free users judged difficult and ineffective) — FY2025/26 · publ. June 2026 · source ↗
- ReportedText's annualised recurring revenue is 89,52 million dollars.Text Group results for the first quarter of the 2026/27 financial year, published 28 August 2026 (revenue of PLN 83,20m, down 1,9% year on year and up 4,1% on the previous quarter; net profit PLN 29,11m down 6,2%; operating profit PLN 31,36m down 11,0%; EBITDA PLN 38,56m down 7,4%; revenue in US dollars of 22,61m up 2,1%; MRR of USD 7,46m at 30 June 2026, up 4,0% year on year and 7,6% on the previous quarter, giving ARR of USD 89,52m against the USD 100m goal, with the chief executive attributing the growth largely to the completion of price grandfathering for LiveChat customers; a record PLN 77,2m of deferred revenue and net operating cash flow up 22,2% to PLN 41,5m on a high share of annual payments; margins of 69,6% gross, 37,7% operating, 46,4% EBITDA and 35,0% net; SOC 2 Type 2 attestation in May 2026; the new visual identity and Go-To-Market start in May 2026; purchase of the livechat.ai domain and a seventh US patent in June 2026; a Klaviyo integration and Google Cloud Marketplace listing in July; a MarTech Breakthrough award and an official ChatGPT marketplace listing in August; and the annual general meeting of 6 August 2026 allocating PLN 109,7m to dividends, PLN 4,26 per share) — Q1 2026/27 · publ. 28 August 2026 · source ↗
- ReportedThe adjacent markets it has moved into are larger - chatbots at anywhere from 0,7 to 6,95 billion dollars growing 22 to 28%, helpdesk at 9,82 to 12,5 billion growing 7 to 10% - which is precisely why it moved.Text Group Management Board report for 2025/26, margins, costs and cash (gross profit margin on sales of 67,6%, operating margin 38,6% and net margin 35,4%; cloud infrastructure costs rising, the migration completing in July 2025 after more than a year of duplicated cost, and completion not translating into cost reductions because of price increases regardless of provider and a deliberately expanded scope of purchased services; increased consulting, legal and public relations costs; fourth-quarter costs falling on cloud optimisation; a warning that more intensive use of artificial intelligence may cause further cost increases and that rising AI costs should press hardest on competitors offering free or freemium products; operating cash flow of PLN 161,6m and PLN 62,8m of cash; and a dividend policy of allocating the highest possible part of profit to shareholders) — FY2025/26 · publ. June 2026 · source ↗
- Third-party estimateThe company names three competitors directly: Fin, previously Intercom; Zendesk; and Freshworks.Sacra research note on Intercom, now trading as Fin (approximately USD 400m of annual recurring revenue as of April 2026, up from 382m at the end of 2025 and growing 27%; the Fin AI agent surpassing USD 100m of ARR and expanding at about 350% a year across roughly 8 000 businesses, resolving close to two million support queries a week - equivalent to more than 6 500 human agents - at a 67% average resolution rate; usage-based pricing at USD 0,99 per resolved outcome, a shift that improved net revenue retention from 112% to 146%; a valuation of USD 1,3bn in 2024 with March 2026 venture debt discussions at USD 2bn or higher; and Zendesk at roughly 170 000 customers, about 30% of the global customer-service market, on a USD 9,1bn market capitalisation, with Freshworks around USD 3,7bn) — April 2026 · publ. 2026 · source ↗
- Third-party estimateFin's agent product passed 100 million dollars of annual recurring revenue growing at around 350% a year, inside a business at roughly 400 million dollars of ARR growing 27%.Sacra research note on Intercom, now trading as Fin (approximately USD 400m of annual recurring revenue as of April 2026, up from 382m at the end of 2025 and growing 27%; the Fin AI agent surpassing USD 100m of ARR and expanding at about 350% a year across roughly 8 000 businesses, resolving close to two million support queries a week - equivalent to more than 6 500 human agents - at a 67% average resolution rate; usage-based pricing at USD 0,99 per resolved outcome, a shift that improved net revenue retention from 112% to 146%; a valuation of USD 1,3bn in 2024 with March 2026 venture debt discussions at USD 2bn or higher; and Zendesk at roughly 170 000 customers, about 30% of the global customer-service market, on a USD 9,1bn market capitalisation, with Freshworks around USD 3,7bn) — April 2026 · publ. 2026 · source ↗
- ReportedOne competitor's newest product line is larger than the entirety of Text, and growing while Text's recurring revenue fell 2,7%.Text Group Management Board report for 2025/26, key performance indicators (monthly recurring revenue of USD 6,93m at 31 March 2026, down 2,7% year on year and 0,7% on December, giving annual recurring revenue of USD 83,12m; revenue in US dollars of 88,2m against 88,6m, down 0,5%; payments received of USD 87,9m, down 0,7%; Q4 dollar revenue of 22,56m, the highest since Q2 2024/25; a LiveChat customer churn rate of 4% on a monthly basis with net MRR churn described as significantly lower; LiveChat at 83,7% of group revenue with ChatBot 8,7% and HelpDesk with KnowledgeBase 7,5%; and an average USD/PLN translation rate 8,0% lower than the prior period) — FY2025/26 · publ. June 2026 · source ↗
- ReportedThe four pages below are four different kinds of contest, and only one of them is a fair fight over product quality - the one Text appears to be winning, with a 74% resolution rate against an industry average of 59% and Fin's reported 67%.Text Group Management Board report for 2025/26, the chief executive's letter (the statement that on the financial results the past fiscal year was not a successful one, with dollar revenue similar to the prior year but lower after conversion to złoty and costs incurred in both currencies; an artificial-intelligence resolution rate of 74% against an industry average of 59%, a figure said to include customers who have not yet trained the models on their own data; the intention to measure success in dollars earned rather than dollars saved on customer support, building an ecosystem that becomes a growth engine for customers rather than a cost centre; and the assessment that Text operates in a market with strong competitors, many with enormous resources they can and sometimes must allocate to customer acquisition, that Text must be smarter, more creative, harder-working and more efficient, and that success is not guaranteed) — FY2025/26 · publ. June 2026 · source ↗
- ReportedIt is the distribution argument, and its chief executive says so: the market has strong competitors with enormous resources they can, and sometimes must to satisfy investor expectations, allocate to customer acquisition.Text Group Management Board report for 2025/26, the chief executive's letter (the statement that on the financial results the past fiscal year was not a successful one, with dollar revenue similar to the prior year but lower after conversion to złoty and costs incurred in both currencies; an artificial-intelligence resolution rate of 74% against an industry average of 59%, a figure said to include customers who have not yet trained the models on their own data; the intention to measure success in dollars earned rather than dollars saved on customer support, building an ecosystem that becomes a growth engine for customers rather than a cost centre; and the assessment that Text operates in a market with strong competitors, many with enormous resources they can and sometimes must allocate to customer acquisition, that Text must be smarter, more creative, harder-working and more efficient, and that success is not guaranteed) — FY2025/26 · publ. June 2026 · source ↗
- Text Group Management Board report for the financial year 2025/26
- Intercom (Fin) revenue and valuation - Sacra