Who are the up and coming competitors - maybe some in india? South east asia? What about generative chat (i dread to use the term "AI") tools that can help accelerate Knowledgebase and other such initiatives - can they still compete with the new tools popping up? will Text's costs go up initially to ramp up their product and service offerings, and eat into margins?
1. I will say for the "up and coming" competitors, I don't have exact details on those companies.
2. The "AI" relevance is a reasonable inquiry. I think that "AI" or Large Language Models (LLMs) will make the "chat" function easier for replacing support roles. However, all the functionalities will still be required after accomplishing that initial goal (1) integrate with ticketing/payment systems or CRM tools (2) allow for manual override of chats for support teams (3) integrate with all the key business functions.
In summary for this point, I think the additional "AI" tools will actually help the incumbents to increase their product offering, rather than competitors growing from the ground up.
3. Due to the unique product development strategy (Incubator + Marketplace) and growing the team members in-line with ARR, I don't expect the product development to eat into margins.
LiveChat is implementing a LLM into their ChatBot 2.0 product. Should be more helpful as a customizable models for support groups to solve cases than a competing product. Simple ChatGPT doesn’t have the software tool, integrations, or apps
if you go to the marketplace of livechat, you see integrations such as payment or videos or pictures inside the chat window. This kind of stuff makes it really worthwhile like this https://www.livechat.com/marketplace/apps/shopify-live-chat/#description
I think that contextual chat like for cart abandonment and help with payment declines is also a long term potential.
Who are the up and coming competitors - maybe some in india? South east asia? What about generative chat (i dread to use the term "AI") tools that can help accelerate Knowledgebase and other such initiatives - can they still compete with the new tools popping up? will Text's costs go up initially to ramp up their product and service offerings, and eat into margins?
All fantastic questions!
1. I will say for the "up and coming" competitors, I don't have exact details on those companies.
2. The "AI" relevance is a reasonable inquiry. I think that "AI" or Large Language Models (LLMs) will make the "chat" function easier for replacing support roles. However, all the functionalities will still be required after accomplishing that initial goal (1) integrate with ticketing/payment systems or CRM tools (2) allow for manual override of chats for support teams (3) integrate with all the key business functions.
In summary for this point, I think the additional "AI" tools will actually help the incumbents to increase their product offering, rather than competitors growing from the ground up.
3. Due to the unique product development strategy (Incubator + Marketplace) and growing the team members in-line with ARR, I don't expect the product development to eat into margins.
Hope that all helps!
Great one!
Appreciate that Oscar! Definitely a fun one to research. No position to-date but will keep it on the watchlist in case a good opportunity arises!
I guess the bear case is Chat GPT?
LiveChat is implementing a LLM into their ChatBot 2.0 product. Should be more helpful as a customizable models for support groups to solve cases than a competing product. Simple ChatGPT doesn’t have the software tool, integrations, or apps