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CI&T Reports Strong Fourth Quarter and Full-year 2022 Results

CI&T (NYSE: CINT, “Company”), a global digital specialist, today announces its results for the fourth quarter of 2022 (4Q22), and the full-year ended on December 31, 2022 (2022) in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the fourth quarter of 2021 (4Q21) and the full-year ended on December 31, 2021 (2021).

Fourth Quarter of 2022 Operating and Financial Highlights

  • Net Revenue was R$611.8 million, an increase of 33.9% compared to 4Q21 or a 41.5% growth at constant currency.
  • The number of clients with annual revenue above R$1 million in the last twelve months grew from 94 in 4Q21 to 178 in 4Q22.
  • Net Profit was R$30.1 million compared to R$43.8 million in 4Q21.
  • Adjusted EBITDA was R$127.4 million, a 25.1% growth year-over-year, equivalent to an Adjusted EBITDA margin of 20.8%.
  • Adjusted Net Profit was R$54.5 million, 4.3% higher than 4Q21 with an Adjusted Net Profit margin of 8.9%

Full-year ended December 31, 2022 Operating and Financial Highlights

  • Net Revenue was R$2,187.7 million, an increase of 51.5% compared to 2021, or a 57.9% growth at constant currency.
  • Net Profit was R$125.9 million, compared to R$125.9 million in 2021.
  • Adjusted EBITDA was R$417.5 million, 28.8% higher than 2021, with an Adjusted EBITDA margin of 19.1%.
  • Adjusted Net Profit was R$213.6 million, an increase of 30.2% compared to 2021.
  • CI&T ended 2022 with 6,904 employees, a 24.1% growth compared to the end of 2021.

Cesar Gon, founder and CEO of CI&T, commented, "Our core competency is method-driven innovation for large and fast-growing corporations, and we are obsessed with efficiency for our clients and ourselves. We ended 2022 marking our 28th consecutive year of profitable growth, highlighting a net revenue expansion of 51% year-over-year and the addition of 84 new clients.

"We remain bullish regarding the enduring opportunities created by the intersection of technology advancements and consumer behavior. We have always been at the cutting edge of digital innovation. It's an infinite game, and we are designed to continue leading the way in the years to come."

Comments on the 4Q22 financial performance

The net revenue was R$611.8 million in 4Q22, an increase of 33.9% compared to 4Q21, or a 41.5% net revenue growth at constant currency. In 4Q22, we added 31 new clients to our portfolio with annual revenue above R$1.0 million in the last twelve months, increasing our client base from 147 in 3Q22 to 178 in 4Q22. The net revenue grew in all regions and industry verticals that we operate compared to the same period last year.

The cost of services provided in 4Q22 reached R$391.1 million, an increase of 32.7% in relation to 4Q21, and the gross profit was R$220.7 million. The Adjusted Gross Profit in 4Q22 was R$234.4 million, 36.0% higher than in 4Q21. The Adjusted Gross Profit margin was 38.3%, an increase of 0.6 percentage points compared to 4Q21, due to better pricing, despite the lower gross margins from the acquired companies.

In 4Q22, selling, general and administrative (SG&A), and other operating expenses were R$134.2 million, 61.3% higher when compared to 4Q21, mainly due to (i) an increase in personnel expenses, as a result of new hirings in the back-office areas; and (ii) acquisition-related expenses, such as retention packages, fair value adjustments on accounts payable for business combination, and amortization of intangible assets from the acquired companies.

In 4Q22, the Adjusted EBITDA was R$127.4 million, an increase of 25.1% compared to 4Q21. Adjusted EBITDA margin was 20.8% in the quarter, a reduction of 1.5 percentage point compared to 4Q21, mainly due to higher SG&A expenses. Sequentially, the Adjusted EBITDA margin improved from 19.2% in 3Q22 to 20.8% in 4Q22, due to a better utilization rate and lower SG&A expenses as a percentage of revenue.

In 4Q22, net financial expenses were R$31.9 million, an increase of R$23.8 million, compared to 4Q21, mainly as a result of a net foreign exchange loss of R$15.8 million in 4Q22, compared to a net foreign exchange gain of R$9.2 million in 4Q21.

In 4Q22, income tax expense was R$24.5 million, a reduction of 9% in relation to 4Q21. Depreciation and amortization expenses totaled R$27.4 million in 4Q22, an increase of 50.2% or R$9.1 million compared to 4Q21, due to the amortization from intangible assets from acquired companies in the amount of R$13.8 million. In 4Q22, management reduced its real state property leases based on the successful work-from-anywhere approach, which will contribute to lower leases expenses going forward.

In 4Q22, the net profit was R$30.1 million, compared to a net profit of R$43.8 million in 4Q21. Adjusted Net Profit was R$54.5 million, 4.3% higher than 4Q21. The Adjusted Net Profit margin reduced from 11.4% in 4Q21 to 8.9% in 4Q22, mainly due to an increase in SG&A expenses and the foreign exchange variation in the comparable period, as detailed above.

Comments on the 2022 financial performance

The net revenue in 2022 was R$2,187.7 million, an increase of 51.5% compared to 2021. The contribution from the companies acquired in 2022 was 15 percentage points to the revenue growth. The negative foreign currency translation impact was 6.4% in the period and the net revenue growth at constant currency was 57.9%.

During 2022, CI&T added 84 new clients with annual revenue above R$1.0 million to our portfolio, demonstrating CI&T's capability to onboard new clients and the resilience in the demand for digital services.

The cost of services provided in 2022 reached R$1,425.2 million, an increase of 52.3% in relation to 2021, and the gross profit was R$762.5 million. The Adjusted Gross Profit in 2022 was R$807.7 million, 48.9% higher than in 2021. The Adjusted Gross Profit margin was 36.9%, a slight decrease compared to 37.6% in 2021, mainly due to lower margins from the acquired companies.

In 2022, selling, general and administrative (SG&A), and other operating expenses were R$488.6 million, an increase of 85.0% when compared to 2021, mainly due to (i) the strengthening of our back-office teams as a publicly-listed Company, and (ii) acquisition-related expenses, such as retention packages, consulting expenses, and amortization of intangible assets from acquired companies.

In 2022, the Adjusted EBITDA was R$417.5 million, an increase of 28.8% compared to 2021. Adjusted EBITDA margin was 19.1% in the year, a reduction of 3.3 percentage points compared to 2021, mainly explained by the lower gross margin and the increase in SG&A expenses, as detailed above.

In 2022, net financial expenses were R$ 73.6 million, 115.1% higher compared to 2021, as a result of an increase in the debt position and higher interest rates.

In 2022, depreciation and amortization expenses totaled R$94.6 million, an increase of 95.6% or R$46.2 million compared to 2021, of which R$43.1 million are related to the amortization of intangible assets from acquired companies.

In 2022, income tax expense was R$74.4 million, a reduction of 11.9% in relation to 2021. The income tax paid (cash effect) was R$48.3 million in the period, equivalent to a cash tax rate of 24%.

In 2022, the net profit was R$125.9 million, in line with the net profit recorded in 2021. Adjusted Net Profit was R$213.6 million, 30.2% higher than 2021. The Adjusted Net Profit margin was 9.8% in 2022, a reduction of 1.6 percentage points compared to 2021, mainly due to higher SG&A and financial expenses, as detailed above.

In 2022, cash generated from operating activities net of taxes was R$112.4 million, which is reduced by a cash outflow of R$59.7 million for the operating activities of the acquiree Somo and other acquisition-related expenses. If we exclude these impacts, the cash generated from operating activities net of taxes would have been R$172.1 million in 2022.

The cash and cash equivalents position, including financial investments, was R$282.0 million at the end of 2022. Loans and borrowings totaled R$974.2 million in 2022, compared to R$788.7 million in 2021. The incremental debt position was mainly to finance the NTERSOL acquisition.

Business Outlook

We expect our net revenue in the first quarter of 2023 to be at least R$590 million compared to a net revenue of R$492 million in the first quarter of 2022, a 20% growth on a reported basis.

For the full year of 2023, we expect net revenue growth in the range of 13% to 17% year-over-year, assuming a constant currency outlook.

In addition, we estimate our Adjusted EBITDA margin to be at least 19% for the full year of 2023.

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 4Q22 and 2022 financial and operating results on March 08, 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=80LiTtgxwd4

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 28-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 6,900 professionals.

Basis of accounting and functional currency

CI&T maintains its books and records in Brazilian reais, the presentation currency for its audited consolidated financial statements, and the functional currency of our operations in Brazil. CI&T prepares its audited consolidated financial statements in accordance with IFRS, as issued by the IASB.

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, foreign currency exchange (gains)/losses, 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 2022 considers the FX rate at the end of each month, while Net Revenue at Constant Currency considers the average FX rate for the prior 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 impairment associated with 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 packages.

In calculating Adjusted Net Profit, we exclude 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 impairment associated with 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 accounts payable for business combination, consulting expenses, and retention packages.

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 the recent-acquired companies; 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.

Consolidated statement of profit or loss

(In thousands of Brazilian Reais)

 

Quarter ended December 31,

 

Full year ended December 31,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

Net Revenue

611,805

 

 

456,794

 

 

2,187,710

 

 

1,444,380

 

Costs of services provided

(391,108

)

 

(294,746

)

 

(1,425,219

)

 

(935,732

)

Gross Profit

220,697

 

 

162,048

 

 

762,491

 

 

508,648

 

 

 

 

 

 

 

 

 

Selling expenses

(45,443

)

 

(27,752

)

 

(163,871

)

 

(89,654

)

General and administrative expenses

(87,800

)

 

(58,625

)

 

(315,915

)

 

(151,681

)

Research and technological innovation expenses

-

 

 

-

 

 

-

 

 

(4

)

Impairment loss on trade receivables and contract assets

56

 

 

1,533

 

 

(329

)

 

(497

)

Other income (expenses) net

(966

)

 

1,656

 

 

(8,458

)

 

(22,206

)

 

 

 

 

 

 

 

 

Operating profit before financial income and tax

86,544

 

 

78,860

 

 

273,918

 

 

244,606

 

 

 

 

 

 

 

 

 

Finance income

17,358

 

 

26,395

 

 

172,996

 

 

69,816

 

Finance cost

(49,327

)

 

(34,525

)

 

(246,642

)

 

(104,048

)

Net finance costs

(31,969

)

 

(8,130

)

 

(73,646

)

 

(34,232

)

 

 

 

 

 

 

 

 

Profit before Income tax

54,575

 

 

70,730

 

 

200,272

 

 

210,374

 

Income tax expense

 

 

 

 

 

 

 

Current

(25,077

)

 

(32,008

)

 

(69,873

)

 

(95,375

)

Deferred

588

 

 

5,106

 

 

(4,483

)

 

10,958

 

Net profit for the period

30,086

 

 

43,828

 

 

125,916

 

 

125,957

 

 

 

 

 

 

 

 

 

Earnings per share

 

 

 

 

 

 

 

Earnings per share – basic (in R$)

 

 

 

 

0.95

 

 

1.03

 

Earnings per share – diluted (in R$)

 

 

 

 

0.93

 

 

1.01

 

 

 

 

 

 

 

 

 

Weighted average number of basic shares held by shareholders

 

 

 

 

133,186,441

 

 

121,777,128

 

Weighted average number of diluted shares held by shareholder

 

 

 

 

134,774,674

 

 

125,155,798

 

Consolidated statements of financial position

(In thousands of Brazilian Reais)

Assets

December 31,

2022

 

December 31,

2021

 

Liabilities and equity

December 31,

2022

 

December 31,

2021

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

185,727

 

135,727

 

Suppliers and other payables

33,376

 

 

33,566

Financial Investments

96,299

 

798,786

 

Loans and borrowings

231,296

 

 

164,403

Trade receivables

501,671

 

340,519

 

Lease liabilities

21,539

 

 

21,214

Contract assets

217,250

 

134,388

 

Salaries and welfare charges

260,156

 

 

234,173

Recoverable taxes

7,619

 

7,785

 

Accounts payable for business combination

71,650

 

 

48,923

Tax assets

2,959

 

2,810

 

Derivatives - hedge accounting

35,169

 

 

-

Derivatives - hedge accounting

19,637

 

-

 

Derivatives

4,109

 

 

535

Derivatives

11,194

 

896

 

Tax liabilities

3,890

 

 

13,345

Other assets

38,269

 

29,994

 

Other taxes payable

14,382

 

 

5,423

Total current assets

1,080,625

 

1,450,905

 

Contract liability

32,136

 

 

13,722

 

 

 

 

 

Other liabilities

47,501

 

 

13,669

Recoverable taxes

3,624

 

3,046

 

Total current liabilities

755,204

 

 

548,973

Deferred tax assets

35,138

 

31,989

 

 

 

 

 

Judicial deposits

9,819

 

3,079

 

Loans and borrowings

742,935

 

 

624,306

Restricted cash - Escrow account and indemnity asset

31,552

 

-

 

Lease liabilities

41,269

 

 

60,674

Other assets

3,654

 

2,974

 

Provisions

12,347

 

 

633

Property, plant and equipment

55,266

 

57,721

 

Accounts payable for business combination

133,299

 

 

36,803

Intangible assets and goodwill

1,750,898

 

738,803

 

Other liabilities

3,530

 

 

1,660

Right-of-use assets

56,187

 

73,827

 

Total non-current liabilities

933,380

 

 

724,076

Total non-current assets

1,946,138

 

911,439

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital

37

 

 

36

 

 

 

 

 

Share premium

946,173

 

 

915,947

 

 

 

 

 

Capital reserves

203,218

 

 

10,105

 

 

 

 

 

Profit reserves

251,873

 

 

125,957

 

 

 

 

 

Other comprehensive income (loss)

(63,122

)

 

37,250

 

 

 

 

 

Total equity

1,338,179

 

 

1,089,295

 

 

 

 

 

 

 

 

 

Total assets

3,026,763

 

2,362,344

 

Total equity and liabilities

3,026,763

 

 

2,362,344

Consolidated statement of cash flow

(In thousands of Brazilian Reais)

 

December 31,

2022

 

December 31,

2021

 

 

 

 

Net profit for the period

125,916

 

 

125,957

 

Adjustments for:

 

 

 

Depreciation and amortization

94,558

 

 

48,354

 

Loss on the sale of property, plant and equipment and intangible assets

3,781

 

 

1,237

 

Interest, monetary variation and exchange rate changes

55,323

 

 

45,627

 

Interest and exchange variation on accounts payable for business combinations

(2,994

)

 

3,091

 

Exchange variation on escrow account related to Somo acquisition

2,968

 

 

-

 

Interest on lease

3,823

 

 

6,369

 

Unrealized loss (gain) on financial instruments

(7,114

)

 

3,084

 

Income tax expenses

74,356

 

 

84,417

 

Impairment losses on trade receivables

423

 

 

280

 

(Reversal of) impairment losses on contract assets

(94

)

 

217

 

Write-off of intangible assets

-

 

 

21,894

 

Provision for labor risks

386

 

 

472

 

Share-based plan

5,486

 

 

2,531

 

Income on financial investments

(1,964

)

 

-

 

Fair value adjustment - accounts payable for business combination

11,497

 

 

-

 

Others

(1,855

)

 

98

 

Variation in operating assets and liabilities

 

 

 

Trade receivables

(116,574

)

 

(102,300

)

Contract assets

(69,101

)

 

(52,876

)

Other taxes recoverable

(547

)

 

(13,806

)

Tax assets

1,267

 

 

(91

)

Judicial deposits

(6,741

)

 

4

 

Suppliers

(29,769

)

 

12,215

 

Salaries and welfare charges

10,729

 

 

63,083

 

Tax liabilities

(9,681

)

 

(17,364

)

Other taxes payable

6,376

 

 

1,698

 

Contract liabilities

9,636

 

 

1,922

 

Payment of share-based indemnity

-

 

 

(628

)

Other receivables and payables, net

565

 

 

(21,054

)

Cash generated from operating activities

160,656

 

 

214,431

 

Income tax paid

(48,299

)

 

(64,150

)

Interest paid on loans and borrowings

(70,096

)

 

(12,149

)

Interest paid on lease

(6,169

)

 

(5,753

)

Net cash from operating activities

36,092

 

 

132,379

 

Cash flows from investment activities:

 

 

 

Acquisition of property, plant and equipment and intangible assets

(22,967

)

 

(29,907

)

Acquisition of subsidiary net of cash acquired – Dextra

-

 

 

(692,722

)

Acquisition of subsidiary net of cash acquired - Somo

(270,825

)

 

-

 

Acquisition of subsidiary net of cash acquired - Box 1824

(19,040

)

 

-

 

Acquisition of subsidiary net of cash acquired - Transpire

(55,724

)

 

-

 

Acquisition of subsidiary net of cash acquired - Ntersol

(400,137

)

 

-

 

Cash outflow on hedge accounting settlement

25,263

 

 

 

Hedge accounting - ineffective portion inflow

5,337

 

 

-

 

Redemption (Contribution in) of financial investments

655,533

 

 

(784,915

)

Net cash used in investment activities

(82,560

)

 

(1,507,544

)

Cash flow from financing activities:

 

 

 

Share-based plan contributions

-

 

 

1,282

 

Issuance of common shares at initial public offering

-

 

 

915,947

 

Transaction cost of offering

-

 

 

(55,874

)

Dividends paid

-

 

 

(126,045

)

Exercised stock options

12,668

 

 

-

 

Interest on equity, paid

-

 

 

(6,288

)

Payment of lease liabilities

(26,993

)

 

(17,656

)

Proceeds from loans and borrowings

527,507

 

 

740,596

 

Settlement of derivatives

390

 

 

-

 

Payment of loans and borrowings

(350,571

)

 

(75,196

)

Payment of installment related to acquisition of business - Dextra

(62,338

)

 

-

 

Net cash from financing activities

100,663

 

 

1,376,766

 

Net increase in cash and cash equivalents

54,195

 

 

1,601

 

Cash and cash equivalents as of January 1st

135,727

 

 

162,827

 

Exchange variation effect on cash and cash equivalents

(4,195

)

 

(20,949

)

Cash reduction due to spin-off effect

-

 

 

(7,752

)

Cash and cash equivalents as of December

185,727

 

 

135,727

 

Reconciliation of Non-IFRS financial measures to comparable IFRS financial measures

Reconciliation of revenue growth as reported on a IFRS basis to revenue growth on a constant currency basis:

Net Revenue

(in BRL thousand)

4Q22

4Q21

Var.

4Q22 x

4Q21

2022

2021

Var.

2022 x

2021

Net Revenue

611,805

456,794

33.9%

2,187,710

1,444,380

51.5%

Net Revenue at Constant Currency

644,956

455,712

41.5%

2,277,958

1,442,539

57.9%

Revenue Breakdown

Net Revenue by industry

(in BRL thousand)

4Q22

4Q21

Var.

4Q22 x

4Q21

2022

2021

Var.

2022 x

2021

Financial Services

172,916

142,104

21.7%

649,166

487,177

33.3%

Food and Beverages

112,132

90,283

24.2%

429,023

340,709

25.9%

Technology, Media and Telecom

72,463

67,268

7.7%

328,500

169,311

94.0%

Pharmaceuticals and Cosmetics

113,348

61,305

84.9%

281,300

206,375

36.3%

Retail and Manufacturing

35,759

34,555

3.5%

135,566

93,871

44.4%

Education and Services

22,944

22,176

3.5%

78,452

64,336

21.9%

Logistic and Transportation

18,387

16,380

12.3%

73,248

37,247

96.7%

Others

63,856

22,723

181.0%

212,454

45,353

368.4%

Total

611,805

456,794

33.9%

2,187,710

1,444,380

51.5%

Net Revenue by geography

(in BRL thousand)

4Q22

4Q21

Var.

4Q22 x

4Q21

2022

2021

Var.

2022 x

2021

North America

267,233

200,014

33.6%

923,174

664,858

38.9%

Europe

63,182

10,807

484.6%

205,992

28,148

631.8%

LATAM (Latin America)

251,466

229,681

9.5%

975,948

701,206

39.2%

APJ (Asia, Pacific and Japan)

29,923

16,293

83.7%

82,596

50,168

64.6%

Reconciliation of various income statement amounts from IFRS to non-IFRS for the three months and full year ended December 31, 2022 and 2021:

Gross Profit

(in BRL thousand)

4Q22

4Q21

Var.

4Q22 x

4Q21

2022

2021

Var.

2022 x

2021

Net Revenue

611,805

456,794

33.9%

2,187,710

1,444,380

51.5%

Cost of Services

(391,108)

(294,746)

32.7%

(1,425,219)

(935,732)

52.3%

Gross Profit

220,697

162,048

36.2%

762,491

508,648

49.9%

Adjustments

 

 

 

 

 

 

Depreciation and amortization (cost of services provided)

10,667

8,764

21.7%

40,968

31,884

28.5%

Stock-based compensation

3,045

1,582

92.5%

4,235

1,930

119.4%

Adjusted Gross Profit

234,409

172,394

36.0%

807,694

542,462

48.9%

Adjusted Gross Profit Margin

38.3%

37.7%

0.6p.p

36.9%

37.6%

-0.6p.p

Adjusted EBITDA

(in BRL thousand)

4Q22

4Q21

Var.

4Q22 x

4Q21

2022

2021

Var.

2022 x

2021

Net profit for the period

30,086

43,828

-31.4%

125,916

125,957

0.0%

Adjustments

 

 

 

 

 

 

Net financial cost

31,969

8,130

293.2%

73,646

34,232

115.1%

Income tax expense

24,489

26,902

-9.0%

74,356

84,417

-11.9%

Depreciation and amortization

27,404

18,251

50.2%

94,558

48,354

95.6%

Stock-based compensation

3,592

1,838

95.4%

5,486

2,531

116.8%

Consulting expenses (1)

-

(859)

-100.0%

-

2,220

-100.0%

Government grants

(764)

(1,063)

-28.2%

(1,141)

(2,481)

-54.0%

Impairment (2)

-

77

-100.0%

-

21,895

-100.0%

Acquisition-related expenses (3)

10,601

4,680

126.5%

44,652

6,957

541.8%

Adjusted EBITDA

127,377

101,783

25.1%

417,472

324,081

28.8%

Adjusted EBITDA Margin

20.8%

22.3%

-1.5p.p

19.1%

22.4%

-3.4p.p

(1)

IPO-related expenses, including consulting and corporate reorganization expenses.

(2)

Non-cash expenses related to the impairment of intangible assets of Dextra, acquired in August 2021 in the amount of (R$21,895) in 2021. The following adjustments were disregarded for the full year of 2022: 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 1Q22 and tax write-off of (R$2,159) in 3Q22.

(3)

Include fair value adjustment on accounts payable for business combination, consulting expenses and retention packages.

Net Profit

(in BRL thousand)

4Q22

4Q21

Var.

4Q22 x

4Q21

2022

2021

Var.

2022 x

2021

Net profit for the period

30,086

43,828

-31.4%

125,916

125,957

0.0%

Adjustments

 

 

 

 

 

 

Consulting expenses (1)

-

(859)

-100.0%

-

2,220

-100.0%

Impairment (2)

-

77

-100.0%

-

21,895

-100.0%

Acquisition-related expenses (3)

24,400

9,210

164.9%

87,721

14,062

n.m

Adjusted Net Profit (4)

54,486

52,256

4.3%

213,637

164,134

30.2%

Adjusted Net Profit Margin (4)

8.9%

11.4%

-2.5p.p

9.8%

11.4%

-1.6p.p

(1)

IPO-related expenses, including consulting and corporate reorganization expenses.

(2)

Non-cash expenses related to the impairment of intangible assets of Dextra, acquired in August 2021 in the amount of (R$21,895) in 2021. The following adjustments were disregarded for the full year of 2022: 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 1Q22 and tax write-off of (R$2,159) in 3Q22.

(3)

Include amortization of intangible assets from acquired companies, fair value adjustment on accounts payable for business combination, consulting expenses and retention packages.

(4)

Adjustments' amounts are gross of tax. Tax effects on non-IFRS adjustments totaled (R$1,182) in 4Q22, (R$365) in 4Q21, (R$3,172) in 2022, and (R$1,935) in 2021.

 

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