NEW YORK--(BUSINESS WIRE)--CI&T (NYSE: CINT, “Company”), a global digital specialist, today announces its results for the third quarter of 2022 (3Q22) and the nine months ended on September 30, 2022 (9M22) in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the third quarter of 2021 (3Q21) and for the nine months ended on September 30, 2021 (9M21).
Third Quarter (3Q22) Operating and Financial Highlights
- Net Revenue was R$559.0 million, an increase of 48.7% compared to 3Q21 or a 51.3% growth at constant currency.
- The number of clients with annual revenue above R$1 million in the last twelve months grew from 76 in 3Q21 to 147 in 3Q22.
- Net Profit was R$40.6 million compared to a net loss of R$2.2 million in 3Q21.
- Adjusted EBITDA was R$107.3 million, a 34.1% growth year-over-year, equivalent to an Adjusted EBITDA margin of 19.2%.
- Adjusted Net Profit was R$69.5 million, 156.7% higher than 3Q21. Adjusted net profit margin was 12.4%.
- CI&T ended 3Q22 with 6,887 CI&Ters, a net addition of 1,489 employees (27.6% growth) compared to the end of 3Q21.
Nine months ended September 30, 2022 (9M22) Operating and Financial Highlights
- Net Revenue was R$1,575.9 million, an increase of 59.6% compared to 9M21, or a 65.5% growth at a constant currency.
- Net Profit was R$95.8 million, an increase of 16.7% in relation to 9M21.
- Adjusted EBITDA was R$293.8 million, 32.2% higher than 9M21, with an Adjusted EBITDA margin of 18.6%.
- Adjusted Net Profit was R$162.9 million, an increase of 45.6% compared to 9M21.
Cesar Gon, founder and CEO of CI&T, commented, "As we complete one year of our debut in the capital markets, I am excited to share another set of high growth with sound profitability results. With the cash proceeds of the IPO, we have expanded our operations globally through acquisitions, opening new markets and verticals, and extending our global talent base. With these moves, we amplified our footprint for robust organic growth in our four operating regions: North America, Latin America, Europe, and Asia Pacific."
"A nontrivial macro environment marked these twelve months. Nevertheless, Digital transformation is a secular trend and remains a priority in the corporate world. And CI&T positioning and value proposition focused on speed and digital efficiency resonates extremely well with large and innovative companies."
Comments on the 3Q22 financial performance
In 3Q22, the net revenue was R$559.0 million, an increase of 48.7% compared to 3Q21, or a 51.3% net revenue growth at constant currency. The acquisitions of Somo, Box 1824, and Transpire concluded in 2022 contributed to 14 percentage points of revenue growth in the quarter compared to 3Q21.
We added 20 new clients to our portfolio in 3Q22 (with annual revenue above R$1.0 million in the last twelve months), increasing our client base from 127 in 2Q22 to 147 in 3Q22. We maintained a solid year-over-year growth across all regions and all industry verticals we operate.
The cost of services provided in 3Q22 reached R$363.6 million, an increase of 47.3% compared to 3Q21, and the gross profit was R$195.4 million. Excluding costs with depreciation and amortization and stock-based compensation, the adjusted gross profit in 3Q22 was R$206.5 million, 47.9% higher than in 3Q21. The adjusted gross profit margin was 36.9%, a slight decrease compared to 37.1% in 3Q21, mainly due to lower margins from recently acquired companies.
In 3Q22, selling, general and administrative (SG&A), and other operating expenses were R$130.8 million, an increase of 45.3% compared to 3Q21, mainly due to (i) acquisition-related expenses, including bonus retention, consulting expenses, and amortization of intangible assets from acquired companies; and (ii) the strengthening of our back-office teams in connection with our IPO.
In 3Q22, the Adjusted EBITDA was R$107.4 million, an increase of 34.1% compared to 3Q21. Adjusted EBITDA margin was 19.2% in the quarter, a reduction of 2.1 percentage points compared to 3Q21, mainly due to the increase in SG&A expenses. Sequentially, the Adjusted EBITDA margin improved to 19.2% in 3Q22 from 19.1% in 2Q22 and 17.5% in 1Q22, as a result of gradual price readjustments on our contracts, a seasonal effect.
In 3Q22, net financial expenses were R$7.4 million, a decrease of 66.8% compared to 3Q21, as a result of positive foreign exchange variations in 3Q22, partially compensated by higher interest rates on loans.
In 3Q22, depreciation and amortization expenses totaled R$23.6 million, an increase of 67.3% or R$9.5 million compared to 3Q21, due to the amortization of R$10.3 million from intangible assets from acquired companies.
In 3Q22, income tax expense was R$16.5 million, a reduction of 12.3% compared to 3Q21. In the 9M22, income tax expense was R$49.8 million, a reduction of 13.3% year over year, while the income tax paid (cash effect) was R$33.5 million in the period, equivalent to a cash tax rate of 23%.
In 3Q22, the net profit was R$40.6 million, compared to a net loss of R$2.2 million in 3Q21. Adjusted net profit was R$69.5 million, 156.7% higher than 3Q21, equivalent to an adjusted net profit margin of 12.4%. The increase in the adjusted net profit margin was mainly due to a reduction in financial expenses, income tax expenses, and depreciation of property, plant, and equipment.
Business Outlook
We expect our net revenue in the fourth quarter of 2022 to be at least R$605 million compared to a net revenue of R$457 million in the fourth quarter of 2021, a 41% growth at constant currency or a 32% growth on a reported basis, which includes a negative foreign currency translation impact of approximately nine percentage points.
For the full year of 2022, we are increasing our outlook and expect a net revenue growth at constant currency of at least 58% year-over-year and net revenue growth on a reported basis of at least 51%, which includes a negative foreign currency translation impact of approximately seven percentage points.
In addition, we estimate our adjusted EBITDA margin to be at least 19% for the full year of 2022, assuming an average exchange rate of 5.10 Brazilian Reais to the U.S. dollar for the full year.
These expectations are forward-looking statements and actual results may differ materially. See "Cautionary Statement on Forward-Looking Statements" below.
Conference Call Information
Cesar Gon, Bruno Guicardi, Stanley Rodrigues, and Eduardo Galvão will host a video conference call to discuss the 3Q22 and 9M22 financial and operating results on November 17 at 8:00 a.m. Eastern Time / 10:00 a.m. BRT. The earnings call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or at the following link: https://www.youtube.com/watch?v=qeVVSmOaVAg.
About CI&T
CI&T (NYSE:CINT) is a global digital specialist, a partner in digital transformation for 100+ large enterprises and fast growth clients. As digital natives, CI&T brings a 27-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in nine countries with a nearshore delivery model, CI&T provides strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience, and driving operational efficiency. Recognized by Forrester as a Leader in Modern Application Development Services, CI&T is the Employer of Choice for more than 6,800 professionals.
Basis of accounting and functional currency
CI&T maintains its books and records in Brazilian reais, the presentation currency for its unaudited condensed consolidated interim financial statements, and the functional currency of our operations in Brazil. CI&T prepares its unaudited condensed consolidated interim financial statements in accordance with IFRS, as issued by the IASB, and International Financial Reporting Standard No 34—Interim Financial Reporting (“IAS 34”).
Non-IFRS Financial Measures
We regularly monitor certain financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Profit, Adjusted Net Profit Margin, Net Revenue at Constant Currency, and Net Revenue Growth at Constant Currency, and should be considered in addition to results prepared in accordance with IFRS, but not as substitutes for IFRS results. In addition, our calculation of these non-IFRS financial measures may differ from those used by other companies, and therefore comparability may be limited. These non-IFRS financial measures are provided as additional information to enhance investors’ overall understanding of our operations’ historical and current financial performance.
CI&T is not providing a quantitative reconciliation of forward-looking Non-IFRS Net Revenue Growth at Constant Currency and Adjusted EBITDA to the most directly comparable IFRS measure because it is unable to reasonably predict the ultimate outcome of certain significant items without unreasonable efforts. These items include, but are not limited to, stock-based compensation expenses, acquisition-related expenses, the tax effect of non-IFRS adjustments, and other items. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.
We calculate Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange average rates from the prior period to show changes in our revenue without giving effect to period-to-period currency fluctuations. Reported Net Revenue in 2021 considers the FX rate at the end of each month, while Net Revenue at Constant Currency considers the average FX rate for the period.
In calculating Adjusted Gross Profit, we exclude cost components unrelated to the direct management of our services. For the periods herein, the adjustments applied were: (i) depreciation and amortization related to costs of services provided; and (ii) stock-based compensation expenses.
In calculating Adjusted EBITDA, we exclude components unrelated to the direct management of our services. For the periods herein, the adjustments were: (i) stock-based compensation expenses; (ii) consulting expenses related to the initial public offering and corporate reorganization; (iii) government grants related to tax reimbursement in the Chinese subsidiary; (iv) non-cash expenses related to the write-off due to inventory of property, plant, and equipment, tax write-off, and the impairment related to the discontinuation of certain investments made by Dextra on intangible assets related to digital platforms; and (v) acquisition-related expenses, including fair value adjustment on accounts payable for business combination, consulting expenses and retention bonuses.
In calculating Adjusted Net Profit, we exclude cost components unrelated to the direct management of our services. For the periods herein, the adjustments applied were: (i) consulting expenses related to the initial public offering and corporate reorganization, (ii) non-cash expenses related to the write-off due to the inventory of property, plant, and equipment, tax write-off, and the impairment related to the discontinuation of certain investments made by Dextra on intangible assets related to digital platforms; and (iii) acquisition-related expenses, including amortization of intangible assets from acquired companies, fair value adjustment on account payables for business combination, consulting expenses and retention bonuses.
Cautionary Statement on Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under "Business outlook," including expectations relating to revenues and other financial or business metrics; statements regarding relationships with clients; and any other statements of expectation or belief. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “plans,” “expects,” “budget,” "scheduled,” “forecasts” and similar words are intended to identify estimates and forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the current and future impact of the COVID-19 pandemic, the ongoing war in Ukraine and economic sanctions imposed by Western economies over Russia on our business and industry; the effects of competition on our business; uncertainty regarding the demand for and market utilization of our services; the ability to maintain or acquire new client relationships; general business and economic conditions; our ability to successfully integrate Dextra, Somo, Box 1824, Transpire and Ntersol; and our ability to successfully execute our growth strategy and strategic plans. Additional information concerning these and other risks and uncertainties are contained in the "Risk Factors" section of CI&T's annual report on Form 20-F. Additional information will be made available in our annual reports on Form 20-F, and other filings and reports that CI&T may file from time to time with the SEC. Except as required by law, CI&T assumes no obligation and does not intend to update these forward-looking statements or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Unaudited condensed consolidated statement of profit or loss
(In thousands of Brazilian Reais) |
|||||||||||
|
Quarter ended September 30, |
|
Nine months ended September 30, |
||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
||||||
Net Revenue |
559,018 |
|
|
375,970 |
|
|
1,575,905 |
|
|
987,586 |
|
Costs of services provided |
(363,617 |
) |
|
(246,846 |
) |
|
(1,034,111 |
) |
|
(640,986 |
) |
Gross Profit |
195,401 |
|
|
129,124 |
|
|
541,794 |
|
|
346,600 |
|
|
|
|
|
|
|
|
|
||||
Selling expenses |
(43,337 |
) |
|
(24,122 |
) |
|
(118,428 |
) |
|
(61,902 |
) |
General and administrative expenses |
(84,804 |
) |
|
(38,966 |
) |
|
(228,115 |
) |
|
(93,056 |
) |
Research and technological innovation expenses |
- |
|
|
- |
|
|
- |
|
|
(4 |
) |
Impairment loss on trade receivables and contract assets |
325 |
|
|
(1,662 |
) |
|
(385 |
) |
|
(2,030 |
) |
Other income (expenses) net |
(3,008 |
) |
|
(25,309 |
) |
|
(7,492 |
) |
|
(23,862 |
) |
|
|
|
|
|
|
|
|
||||
Operating profit before financial income and tax |
64,577 |
|
|
39,065 |
|
|
187,374 |
|
|
165,746 |
|
|
|
|
|
|
|
|
|
||||
Finance income |
32,750 |
|
|
17,591 |
|
|
155,638 |
|
|
43,421 |
|
Finance cost |
(40,182 |
) |
|
(40,007 |
) |
|
(197,315 |
) |
|
(69,523 |
) |
Net finance costs |
(7,432 |
) |
|
(22,416 |
) |
|
(41,677 |
) |
|
(26,102 |
) |
|
|
|
|
|
|
|
|
||||
Profit before Income tax |
57,145 |
|
|
16,649 |
|
|
145,697 |
|
|
139,644 |
|
Income tax expense |
|
|
|
|
|
|
|
||||
Current |
(22,273 |
) |
|
(28,809 |
) |
|
(44,796 |
) |
|
(63,367 |
) |
Deferred |
5,736 |
|
|
9,952 |
|
|
(5,071 |
) |
|
5,852 |
|
Net profit for the period |
40,608 |
|
|
(2,208 |
) |
|
95,830 |
|
|
82,129 |
|
|
|
|
|
|
|
|
|
||||
Earnings per share |
|
|
|
|
|
|
|
||||
Earnings per share – basic (in R$) |
0.30 |
|
|
(0.02 |
) |
|
0.72 |
|
|
0.68 |
|
Earnings per share – diluted (in R$) |
0.30 |
|
|
(0.02 |
) |
|
0.72 |
|
|
0.67 |
|
|
|
|
|
|
|
|
|
||||
Weighted average number of basic shares held by shareholders |
133,332,778 |
|
|
119,960,451 |
|
|
133,006,973 |
|
|
119,960,422 |
|
Weighted average number of diluted shares held by shareholder |
133,332,778 |
|
|
119,960,451 |
|
|
133,006,973 |
|
|
122,895,435 |
|
Unaudited condensed consolidated statements of financial position
(In thousands of Brazilian Reais) |
|||||||||
Assets |
September 30,
|
|
December 31,
|
|
Liabilities and equity |
September 30,
|
|
December 31,
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
151,850 |
|
135,727 |
|
Suppliers and other payables |
26,512 |
|
|
33,566 |
Financial Investments |
181,857 |
|
798,786 |
|
Loans and borrowings |
252,629 |
|
|
164,403 |
Trade receivables |
462,793 |
|
340,519 |
|
Lease liabilities |
29,199 |
|
|
21,214 |
Contract assets |
229,165 |
|
134,388 |
|
Salaries and welfare charges |
256,028 |
|
|
234,173 |
Recoverable taxes |
6,667 |
|
7,785 |
|
Accounts payable for business combination |
63,947 |
|
|
48,923 |
Tax assets |
1,089 |
|
2,810 |
|
Loss adjustments on hedge accounting |
50,315 |
|
|
- |
Gain adjustments on hedge accounting |
13,028 |
|
- |
|
Derivatives |
6,095 |
|
|
535 |
Derivatives |
11,775 |
|
896 |
|
Tax liabilities |
3,379 |
|
|
13,345 |
Other assets |
33,173 |
|
29,994 |
|
Other taxes payable |
14,173 |
|
|
5,423 |
Total current assets |
1,091,397 |
|
1,450,905 |
|
Contract liability |
11,760 |
|
|
13,722 |
|
|
|
|
|
Other liabilities |
34,133 |
|
|
13,669 |
Recoverable taxes |
3,591 |
|
3,046 |
|
Total current liabilities |
748,170 |
|
|
548,973 |
Deferred tax assets |
34,285 |
|
31,989 |
|
|
|
|
|
|
Judicial deposits |
9,468 |
|
3,079 |
|
Loans and borrowings |
453,729 |
|
|
624,306 |
Restricted cash - Escrow account and indemnity asset |
32,877 |
|
- |
|
Lease liabilities |
50,722 |
|
|
60,674 |
Other assets |
3,925 |
|
2,974 |
|
Provisions |
14,587 |
|
|
633 |
Property, plant and equipment |
60,376 |
|
57,721 |
|
Accounts payable for business combination |
55,279 |
|
|
36,803 |
Intangible assets and goodwill |
1,123,626 |
|
738,803 |
|
Other liabilities |
2,020 |
|
|
1,660 |
Right-of-use assets |
70,366 |
|
73,827 |
|
Total non-current liabilities |
576,337 |
|
|
724,076 |
Total non-current assets |
1,338,514 |
|
911,439 |
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
Share capital |
37 |
|
|
36 |
|
|
|
|
|
Share premium |
946,173 |
|
|
915,947 |
|
|
|
|
|
Capital reserves |
26,045 |
|
|
10,105 |
|
|
|
|
|
Profit reserves |
221,787 |
|
|
125,957 |
|
|
|
|
|
Other comprehensive income |
(88,638 |
) |
|
37,250 |
|
|
|
|
|
Total equity |
1,105,404 |
|
|
1,089,295 |
|
|
|
|
|
|
|
|
|
|
Total assets |
2,429,911 |
|
2,362,344 |
|
Total equity and liabilities |
2,429,911 |
|
|
2,362,344 |
Unaudited condensed consolidated statement of cash flow
(In thousands of Brazilian Reais) |
|||||
|
September 30,
|
|
September 30,
|
||
|
|
|
|
||
Net profit for the period |
95,830 |
|
|
82,129 |
|
Adjustments for: |
|
|
|
||
Depreciation and amortization |
67,154 |
|
|
30,102 |
|
Loss on the sale of property, plant and equipment and intangible assets |
2,137 |
|
|
338 |
|
Interest, monetary variation and exchange rate changes |
29,562 |
|
|
25,998 |
|
Exchange rate changes and monetary adjustments on accounts payable for business combinations |
(7,601 |
) |
|
- |
|
Exchange variation on escrow account related to Somo acquisition |
3,798 |
|
|
- |
|
Interest on lease |
6,306 |
|
|
4,409 |
|
Unrealized loss (gain) on financial instruments |
(5,709 |
) |
|
3,898 |
|
Income tax expenses |
49,867 |
|
|
57,515 |
|
Impairment losses on trade receivables |
203 |
|
|
1,112 |
|
Impairment losses on contract assets |
182 |
|
|
918 |
|
Provision for labor and tax risks |
386 |
|
|
346 |
|
Impairment of intangible assets |
- |
|
|
21,818 |
|
Share-based plan |
1,894 |
|
|
694 |
|
Income on financial investments |
(1,628 |
) |
|
- |
|
Fair value adjustment - accounts payable for business combination |
5,243 |
|
|
- |
|
Price adjustment - accounts payable for business combination |
1,997 |
|
|
- |
|
Others |
(1,824 |
) |
|
52 |
|
Variation in operating assets and liabilities |
|
|
|
||
Trade receivables |
(107,311 |
) |
|
(87,669 |
) |
Contract assets |
(85,091 |
) |
|
(67,530 |
) |
Recoverable taxes |
(2,297 |
) |
|
(13,260 |
) |
Tax assets |
930 |
|
|
(2 |
) |
Judicial deposits |
(6,389 |
) |
|
7 |
|
Suppliers and other payables |
(34,281 |
) |
|
4,075 |
|
Salaries and welfare charges |
7,448 |
|
|
43,788 |
|
Tax liabilities |
1,568 |
|
|
(3,797 |
) |
Other taxes payable |
4,509 |
|
|
1,448 |
|
Contract liabilities |
(4,893 |
) |
|
(9,036 |
) |
Payment of share-based indemnity |
- |
|
|
(628 |
) |
Other receivables and payables, net |
6,714 |
|
|
(6,538 |
) |
Cash (used in)/ generated from operating activities |
28,704 |
|
|
90,187 |
|
Income tax paid |
(33,467 |
) |
|
(44,468 |
) |
Interest paid on loans and borrowings |
(51,152 |
) |
|
(2,296 |
) |
Interest paid on lease |
(4,796 |
) |
|
(3,972 |
) |
Net cash used in operating activities |
(60,711 |
) |
|
39,451 |
|
Cash flows from investment activities: |
|
|
|
||
Acquisition of property, plant and equipment and intangible assets |
(20,163 |
) |
|
(22,112 |
) |
Acquisition of subsidiary net of cash acquired – Dextra |
- |
|
|
(641,784 |
) |
Acquisition of subsidiary net of cash acquired - Somo |
(247,764 |
) |
|
- |
|
Acquisition of subsidiary net of cash acquired - Box 1824 |
(19,040 |
) |
|
- |
|
Acquisition of subsidiary net of cash acquired - Transpire |
(54,995 |
) |
|
- |
|
Escrow deposit (acquisition of Somo) |
(23,061 |
) |
|
- |
|
Hedge accounting realization |
20,981 |
|
|
- |
|
Redemption of financial investments |
582,367 |
|
|
- |
|
Payment of investment obligations - Dextra |
(62,338 |
) |
|
- |
|
Net cash from / used in investment activities |
175,987 |
|
|
(663,896 |
) |
Cash flow from financing activities: |
|
|
|
||
Share-based plan contributions |
- |
|
|
989 |
|
Dividends paid |
- |
|
|
(71,039 |
) |
Exercised stock options |
10,339 |
|
|
- |
|
Interest on equity, paid |
- |
|
|
(713 |
) |
Payment of lease liabilities |
(19,828 |
) |
|
(12,407 |
) |
Proceeds from loans and borrowings |
186,239 |
|
|
740,596 |
|
Settlement of derivatives |
390 |
|
|
- |
|
Payment of loans and borrowings |
(279,940 |
) |
|
(71,702 |
) |
Net cash from financing activities |
(102,800 |
) |
|
585,724 |
|
Net decrease in cash and cash equivalents |
12,476 |
|
|
(38,721 |
) |
Cash and cash equivalents as of January 1st |
135,727 |
|
|
162,827 |
|
Exchange variation effect on cash and cash equivalents |
3,647 |
|
|
(2,937 |
) |
Cash reduction due to spin-off effect |
- |
|
|
(7,752 |
) |
Cash and cash equivalents as of September |
151,850 |
|
|
113,417 |
|
Reconciliation of Non-IFRS financial measures to comparable IFRS financial measures
(Unaudited)
Reconciliation of revenue growth as reported on a IFRS basis to revenue growth on a constant currency basis: |
||||||
Net Revenue (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
Net Revenue |
559,018 |
375,970 |
48.7% |
1,575,905 |
987,586 |
59.6% |
Net Revenue at Constant Currency |
568,759 |
375,812 |
51.3% |
1,634,761 |
987,953 |
65.5% |
Revenue Breakdown |
||||||
Net Revenue by industry (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
Financial Services |
161,185 |
134,984 |
19.4% |
476,250 |
345,073 |
38.0% |
Food and Beverages |
114,835 |
78,258 |
46.7% |
316,891 |
250,426 |
26.5% |
Technology, Media and Telecom |
77,710 |
45,515 |
70.7% |
215,153 |
108,006 |
99.2% |
Pharmaceuticals and Cosmetics |
74,847 |
51,503 |
45.3% |
208,837 |
139,107 |
50.1% |
Retail and Manufacturing |
32,753 |
20,930 |
56.5% |
99,807 |
55,140 |
81.0% |
Education and Services |
18,855 |
16,458 |
14.6% |
55,508 |
40,096 |
38.4% |
Logistic and Transportation |
20,229 |
10,713 |
88.8% |
54,861 |
20,868 |
162.9% |
Others |
58,604 |
17,609 |
232.8% |
148,598 |
28,870 |
414.7% |
Total |
559,018 |
375,970 |
48.7% |
1,575,905 |
987,586 |
59.6% |
Net Revenue by geography (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
NAE (North America and Europe) |
289,758 |
170,883 |
69.6% |
798,751 |
487,811 |
63.7% |
North America |
232,697 |
165,015 |
41.0% |
655,941 |
470,563 |
39.4% |
Europe |
57,061 |
5,868 |
872.4% |
142,810 |
17,248 |
728.0% |
LATAM (Latin America) |
247,200 |
192,200 |
28.6% |
724,480 |
465,900 |
55.5% |
APJ (Asia, Pacific and Japan) |
22,060 |
12,887 |
71.2% |
52,674 |
33,875 |
55.5% |
Reconciliation of various income statement amounts from IFRS to non-IFRS for the three and nine months ended September 30, 2022 and 2021: |
Gross Profit (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
||||
Net Revenue |
559,018 |
|
375,970 |
|
48.7% |
1,575,905 |
|
987,586 |
|
59.6% |
Cost of Services |
(363,617 |
) |
(246,846 |
) |
47.3% |
(1,034,111 |
) |
(640,986 |
) |
61.3% |
Gross Profit |
195,401 |
|
129,124 |
|
51.3% |
541,794 |
|
346,600 |
|
56.3% |
Adjustments |
|
|
|
|
|
|
||||
Depreciation and amortization (cost of services provided) |
10,688 |
|
10,345 |
|
3.3% |
30,302 |
|
23,121 |
|
31.1% |
Stock-based compensation |
369 |
|
116 |
|
219.0% |
1,190 |
|
348 |
|
241.7% |
Adjusted Gross Profit |
206,458 |
|
139,584 |
|
47.9% |
573,285 |
|
370,069 |
|
54.9% |
Adjusted Gross Profit Margin |
36.9% |
37.1% |
-0.2p.p |
36.4% |
37.5% |
-1.1p.p |
||||
SG&A and other expenses (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
||||
Selling |
(43,337 |
) |
(24,122 |
) |
79.7% |
(118,428 |
) |
(61,902 |
) |
91.3% |
General and administrative |
(84,804 |
) |
(38,966 |
) |
117.6% |
(228,115 |
) |
(93,056 |
) |
145.1% |
SG&A expenses |
(128,141 |
) |
(63,088 |
) |
103.1% |
(346,543 |
) |
(154,958 |
) |
123.6% |
Other income (expenses) net (1) |
(3,008 |
) |
(25,309 |
) |
-88.1% |
(7,492 |
) |
(23,866 |
) |
-68.6% |
Impairment loss on trade receivables and contract assets |
325 |
|
(1,662 |
) |
- |
(385 |
) |
(2,030 |
) |
-81.0% |
SG&A and other operating expenses |
(130,824 |
) |
(90,059 |
) |
45.3% |
(354,420 |
) |
(180,854 |
) |
96.0% |
| (1) | Include research and technological innovation expenses |
Adjusted EBITDA (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
||||
Net profit for the period |
40,608 |
|
(2,208 |
) |
- |
95,830 |
|
82,129 |
|
16.7% |
Adjustments |
|
|
|
|
|
|
||||
Net financial cost |
7,432 |
|
22,416 |
|
-66.8% |
41,677 |
|
26,102 |
|
59.7% |
Income tax expense |
16,537 |
|
18,857 |
|
-12.3% |
49,867 |
|
57,515 |
|
-13.3% |
Depreciation and amortization |
23,558 |
|
14,083 |
|
67.3% |
67,154 |
|
30,102 |
|
123.1% |
Stock-based compensation |
761 |
|
193 |
|
294.6% |
1,894 |
|
693 |
|
173.5% |
Consulting expenses (1) |
- |
|
3,080 |
|
-100.0% |
- |
|
3,080 |
|
-100.0% |
Government grants |
(204 |
) |
(4 |
) |
n.m |
(378 |
) |
(1,418 |
) |
-73.4% |
Write-off and Impairment (2) |
2,156 |
|
21,818 |
|
-90.1% |
3,703 |
|
21,818 |
|
-83.0% |
Acquisition-related expenses (3) |
16,497 |
|
1,815 |
|
809.0% |
34,051 |
|
2,277 |
|
n.m |
Adjusted EBITDA |
107,343 |
|
80,049 |
|
34.1% |
293,799 |
|
222,297 |
|
32.2% |
Adjusted EBITDA Margin |
19.2% |
21.3% |
-2.1p.p |
18.6% |
22.5% |
-3.9p.p |
||||
| (1) | IPO-related expenses, including consulting and corporate reorganization expenses. |
|
| (2) | Non-cash expenses related to the write-off due to the inventory of property, plant, and equipment in the amount of (R$1,548) in 9M21, tax write-off of (R$2,156) in 3Q22, and impairment of intangible assets of Dextra, acquired in August 2021 in the amount of (R$21,818) in 3Q21. |
|
| (3) | Include fair value adjustment on accounts payable for business combination, consulting expenses and retention bonuses. |
Net Profit (in BRL thousand) |
3Q22 |
3Q21 |
Var.
|
9M22 |
9M21 |
Var.
|
||||
Net profit for the period |
40,608 |
|
(2,208 |
) |
- |
95,830 |
|
82,129 |
|
16.7% |
Adjustments |
|
|
|
|
|
|
||||
Consulting expenses |
- |
|
3,080 |
|
-100.0% |
- |
|
3,080 |
|
-100.0% |
Write-off and Impairment (1) |
2,156 |
|
21,818 |
|
-90.1% |
3,703 |
|
21,818 |
|
-83.0% |
Acquisition-related expenses (2) |
26,743 |
|
4,389 |
|
509.3% |
63,321 |
|
4,852 |
|
n.m |
Adjusted Net Profit (3) |
69,507 |
|
27,079 |
|
156.7% |
162,854 |
|
111,878 |
|
45.6% |
Adjusted Net Profit Margin |
12.4% |
7.2% |
5.2p.p |
10.3% |
11.3% |
-1p.p |
||||
| (1) | Non-cash expenses related to the write-off due to the inventory of property, plant, and equipment in the amount of (R$1,548) in the 9M21, tax write-off of (R$2,156) in the 3Q22 and 9M22, and impairment of intangible assets of Dextra, acquired in August 2021 in the amount of (R$21,818) in the 3Q21 and 9M211. |
|
| (2) | Include amortization of intangible assets from acquired companies, fair value adjustment on accounts payable for business combination, consulting expenses and retention bonuses. |
|
| (3) | Adjustments' amounts are gross of tax. Tax effects on non-IFRS adjustments totaled (R$1,943) in 3Q22, (R$1,413) in 3Q21, (R$2,605) in 9M22, and (R$1,570) in 9M21. |
