Testlio 2023 Reflections: An Open Client Letter of Gratitude Dear Testlio Client, In October of 2023, I passed my 5th anniversary as Testlio’s CEO and my 10th anniversary supporting Testlio’s founders, Kristel and Marko Kruustük. It’s been an amazing journey. I’m full of gratitude for the opportunity that I have to partner with you, our clients, while working with our incredible team of TestLions all over the world. This letter builds on a tradition that Kristel and I started in 2019. Since then, we’ve also posted letters in 2020, 2021, and 2023. These letters operate in the spirit of transparency and gratitude, two cornerstones of the culture of Testlio. With today’s letter, I begin by reiterating my ongoing thanks. Per my December email of appreciation, highlighting our donations and social impact strategy, I remain humbled by, and grateful for, the trust that you and your team place in Testlio. A software testing partnership requires a large, and ongoing, leap for engineering, product, and quality teams. The opportunity that you provide the Testlio team is never taken for granted; we thank you and hope that we impressed you in 2023 with our dedication, impact, approach, humanity, and value. 2023 was not an easy year for us, nor was it for many of you. Below we share some of what we’re proud of—along with challenges we faced along the way and hard decisions we made as a business. Our hope is that this helps you see us in a fuller way, equipping us both to commit to powerful, trusted quality partnership work during the year ahead. Here’s a TL/DR version of the year: We stabilized. For 2023, this meant a return to profitability, ensuring that we are a solid, predictable, long-term partner for you. We innovated. Fused software testing, signal-driven testing, and the use of GenAI for testing were major updates for our Platform-powered quality approach. We automated. While Testlio remains strong in crowdsourced manual testing, outsourced test automation is the fastest-growing part of our business. We executed. For you, and other clients, we tackled some of the thorniest, biggest, most challenging testing situations on the planet. We celebrated. Honoring our globality and diversity, we came together in new ways to honor one another and connect genuinely. Below is a fuller unpack of 2023. Stabilization Based on global economic conditions, and like many companies, we adjusted our operating model and reduced spend significantly in 2023. This included a 6% reduction in force (RIF) and a pause of some of our beloved programs (in-person LionFest and Ignite). While this was sad and hard, it equipped us to return to profitability in Q3 of 2023 and end the year with a strong cash position. We anticipate that we will remain profitable in 2024 even as our growth accelerates. For 14 straight quarters, Testlio hit or beat the Rule of 40 metric. While we did not achieve this in 2023, we anticipate a RoF return in the quarters ahead, enabling us to be a solid, dependable, predictable partner for you for years to come. Innovation While the year was hard, it was also massive for the advancement of the Testlio Platform, including: Fused Software Testing: our vision and capabilities took a big leap forward as we fused manual and automated testing along with on-demand and dedicated resources to provide faster, more fluid, software testing. Learn more. Signals-Driven Testing: expanding our DevOps and quality systems integrations equipped Testlio to more fluidly use data to guide quality processes. Learn more. Generative AI: in 2023, Testlio unveiled the power of GenAI applied to large instruction set moments (like test cases and issues). Learn more. The Testlio Platform came a long way in 2023. If you haven’t seen it lately, and are ready for an updated, guided tour, please contact your Engagement Manager. And note that there’s much more to come in 2024! Automation In 2023, Testlio made significant advancements in our quality engineering solution. These included: Platform Run-Time: with the Testlio Platform, you can execute scripts in our systems and on our device network. Automated Testing Development: via our QE CoE, we have resources, frameworks, governance, and approaches to help you automate—fast. Test Automation Management: often, the primary challenge of quality engineering is ensuring that automated tests deliver ongoing value. Testlio can help, providing a hybrid outsourced/on-demand approach to sustainable automation excellence. Execution Day in and day out, Testlio delivers testing services to some of the biggest and most innovative companies in the world. Clients leverage Testlio for everything from the Big Game to Global Payments verification. To date, Testlio has executed millions of tests for hundreds of companies touching billions of users around the world. Per above, we strive to deliver our testing with precision, joy, passion, and impact. Thank you again for entrusting us with your quality needs. Celebration Through 2023, we honored more than 20 events of importance, including MLK Day, Neurodiversity Celebration Week, Pride Month, Human Rights Day, Mother’s Day, and Earth Day. We came together through Donuts, Connections, All Hands, Cups of Kindness, and a virtual LionFest experience. We advocated purposeful testing. We welcomed people like Yasmin, our VP, Marketing, and Vassilis, our VP, Engineering. If you don’t already, please follow us on LinkedIn. There, we share a combination of industry content and human moments that we hope you enjoy. As 2024 kicks in, I’m full of hope. The world remains uncertain and we must continue to challenge ourselves as your partner, tirelessly working to increase the coverage, velocity, impact, and economic value that our model promises. Yet with our energizing purpose (“we power fused software testing to enable human possibilities”), amazing team, and innovative technology-powered offerings, I believe we are well equipped to surprise and delight you. Please hold us to this. As always, if I, or anyone on my team, can ever do more and/or answer any questions you have, please don’t hesitate to reach out. Thank you again, Steve Semelsberger CEO Testlio Inc.