TextMagic

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TextMagic AS
TypePublic company
Nasdaq Baltic: MAGIC
IndustryMobile communication
Founded2001; 21 years ago (2001)
United Kingdom
FounderDan Houghton
Headquarters
Estonia
Area served
US, UK, Canada, Australia, Europe
Key people
  • Priit Vaikmaa (CEO)
  • Kärtu Vaikmaa (COO)
  • Eduard Tark (CPO)
  • Ioana Sima (CMO)
  • Dmitry Stanulevich (VP of Engineering)
Products
  • A2P SMS service
  • Customer engagement software
Revenue€10.9 million (2021)
Total equity€79.9 million (Jan 2021)
Number of employees
45
Websitehttps://www.textmagic.com/

TextMagic is a SaaS-based A2P messaging service that allows SMBs to connect with their customers via two-way SMS messages, online texts, gateway SMS via email, SMS software for desktop, and SMS distribution lists.

TextMagic is operated by TextMagic AS, a publicly listed company with its HQ in Estonia.

Company History[]

TextMagic was founded in 2001 by Dan Houghton in the United Kingdom.[1] In 2013, Monday Media OÜ, a holding company of Estonian tech executive Priit Vaikmaa, acquired 55% of TextMagic Ltd.[2]

Corporate timeline[]

  • 2001 – TextMagic Ltd. founded by Cambridge computer scientist, Dan Houghton
  • 2007 – Current CEO Priit Vaikmaa joins from Modera, an Estonian CRM company
  • 2013 – Dan Houghton leaves and a seller-financed MBO takes place, headed by Priit Vaikmaa
  • 2014 – TextMagic AS expands into America. Annual sales top €1 million
  • 2017 – The company launches its first mobile app. Annual sales exceed €2 million
  • 2020 – Annual sales approach €8 million. Development begins on Touchpoint
  • 2021 – TextMagic grows to 40 employees
  • November - December 2021 – TextMagic AS goes public on the Nasdaq First North Tallinn.
Priit Vaikmaa, TextMagic CEO

2021 IPO[]

To raise capital and present the company as an attractive investment opportunity, TextMagic AS went public with an IPO between 29 November - 9 December 2021[3] on the Nasdaq First North Tallinn – an alternative market on the Nasdaq First North Baltic focused on smaller European companies. TextMagic's first day of trading was on 15 December 2021.

TextMagic IPO, December 2021

As part of the IPO, TextMagic aimed to raise up to €2.5 million via the issue of up to 500,000 new ordinary shares. Altogether, 15,410 investors subscribed for 9,896,434 shares, totalling €49.5 million.[4]

The IPO established TextMagic as the locally listed Estonian firm with the largest number of shareholders, with a record-breaking oversubscription rate of 19.8.[5]

"We will be using the money raised through the IPO to fund the development of Touchpoint, our upcoming customer engagement platform. We are also planning to make further inroads into the European market. Currently, our largest market is the US, followed by the UK, Canada, and Australia. By growing our customer base in Europe and other markets, we plan to achieve our revenue goal of $100 million by 2030." - Priit Vaikmaa (CEO)

Products and services[]

TextMagic offers a variety of SaaS A2P SMS services:

  1. Online SMS messaging service - A complete online SMS solution that sends texts online to anywhere in the world.
  2. Email to SMS gateway - Send SMS messages as email, and receive replies as emails.
  3. SMS gateway API - Allows for SMS integration with existing business systems
  4. TextMagic Messenger - Two-way SMS software for PC & Mac
  5. Two-way SMS chat panel - Fully searchable SMS chat service, with sound and email alerts
  6. SMS distribution lists - Forward messages to mobile contacts within a distribution group

Touchpoint (2023)[]

Planned for launch in 2023 and funded by the 2021 IPO, the development of TextMagic's customer engagement platform - Touchpoint - represents a move away from a sole reliance on SMS services towards the development of software for sales, marketing, and customer support purposes.[6]

As well as standard A2P SMS services, Touchpoint is set to combine numerous commercial functions into one central application in a per-user subscription-based SaaS model.

Touchpoint ‘Promote’[]

A multi-channel marketing tool that allows business owners to generate leads alongside promoting their products and services.

Touchpoint ‘Sell’[]

A complete CRM environment that sets tasks and reminders, manages client information, nurtures your pipelines, and tracks team goals.

Touchpoint ‘Serve’[]

An all-in-one service module that facilitates the flow of information and communication between support staff, including live chat features, call/contact centre functionality and helpdesk roles.

Revenue & Growth[]

TextMagic AS predominantly operates in the US and UK markets, with the remainder of its operation spread out across Australia and Canada. In 2021, the company indicated it's intentions to become more active in European markets.

Country % of revenue
USA 68.3%
UK 18.1%
Other 5.4%
Australia 5.3%
Canada 2.7%

Revenue[]

  • 2016 – €1.96 million
  • 2017 – €2.69 million
  • 2018 – €3.83 million
  • 2019 – €5.47 million
  • 2020 – €7.92 million
  • 2021 – €10.9 million

Usage[]

Since 2016, the number of active users has grown year-on-year from 6.9K in 2016 to 25.6K by 2020.

In 2020, the total number of SMS messages sent on the TextMagic platform reached 170 million. As of 2021, this figure increased to 248 million.[7]

In October 2021, TextMagic had 25,000 business customers that used its SMS marketing platform to access more than 1,000 mobile networks.[8] At the beginning of 2022, the number grew to 31,203 active users, with an average revenue of €349.3 per user.[9]

See also[]

References[]

  1. ^ "UK-Based SMS Company Founded in 2001". TextMagic.com. 2014-06-20. Retrieved 2016-01-18.
  2. ^ "Nordic CF Advisory » Estonian CEO acquired British mobile marketing company TextMagic". Nordicadvisory.com. Retrieved 2016-01-18.
  3. ^ "TextMagic AS stock and share news".{{cite web}}: CS1 maint: url-status (link)
  4. ^ "Results of the Initial Public Offering of Shares of TextMagic AS".{{cite web}}: CS1 maint: url-status (link)
  5. ^ "Results of the Initial Public Offering of Shares of TextMagic AS".{{cite web}}: CS1 maint: url-status (link)
  6. ^ "From bootstrapping to IPO".{{cite web}}: CS1 maint: url-status (link)
  7. ^ "TextMagic AS sales figures for Q4 of 2021".
  8. ^ "From bootstrapping to IPO: Estonia tech startup TextMagic to go public on Nasdaq First North Tallinn".{{cite web}}: CS1 maint: url-status (link)
  9. ^ "TextMagic AS sales figures for Q4 of 2021".
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