Q3 2024 Lwsa SA Earnings Call Transcript
Key Points
- Locaweb Servicos de Internet SA (BSP:LWSA3) reported a significant increase in margins, with a 4.7% point rise since last year, attributed to strong cost control and operational leverage.
- The company achieved a 16% growth in ecosystem GMV, highlighting its importance in the Brazilian e-commerce chain.
- Locaweb's consolidated net revenue increased by 5.4%, with commerce operations growing by 18% excluding the impact of restructuring.
- The company launched three important products this quarter, including a successful POS system via Trey, enhancing its omni-channel strategy.
- Locaweb returned over 192 million to shareholders through stock buybacks and dividend payments, demonstrating strong shareholder returns.
- The restructuring of the subsidiary Squid has been a drag on the company's bottom line, affecting annual comparisons.
- There was a reported decrease in the acquisition of new subscribers, particularly among customers with less than 15,000 in GMV.
- Despite improvements, Squid's operation still reported a negative profit, although it is nearing break-even.
- The company's growth in online and SaaS segments was modest at 0.3% year-over-year.
- Locaweb's capital allocation strategy, including buybacks and dividends, raised questions about potential changes in capital structure or increased debt.
Good morning. Ladies and gentlemen, welcome to LW Sas Q3 2024 earnings conference. Joining us today are CEO Fernando Cne COO, Rafael Chamas and CFO and Iro Andre Koda for the Q&A session. We will also be joined by the company's senior management.
This conference is being streamed via Zoom webinar with simultaneous interpretation into English and will be available for replay at R I dot Lws A dot tech. You can download the slide deck for this presentation at the same websites Results Center under the financial information tab.
The reported figures are denominated in brazilian real and have been calculated following Brazils standard accounting practices as per the statements guidelines and interpretations issued by the Brazilian accounting pronouncements committee.
Before moving on, we'd like to mention that the statements contained in this document regarding LWS A's business prospects, operational and financial forecasts as well as future growth estimates are merely projections and as such are based solely on its management's outlook for the business.
This outlook
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
