Q2 2024 CIELO SA Instituicao de Pagamento Earnings Call Transcript
Key Points
- Cielo SA (CIOXY) has made significant progress in its transformation agenda, focusing on cost reduction and competitive capabilities.
- The company has seen productivity gains and healthier yields, particularly in the prepayment products segment.
- Investments in product and technology have reduced time to market by 70%, leading to new customer solutions.
- Cielo SA (CIOXY) has maintained expenses growth below inflation despite expanding its sales team.
- The company has improved its operational strategies and customer focus through the Pra Cima Cielo program.
- Short-term results are pressured by intensive investment cycles and a challenging environment in the SMB segment.
- There has been a decrease in credit card volume for SMBs, with a 3% decline quarter-over-quarter.
- The prepayment segment saw a substantial decline, despite efforts to increase penetration.
- New competitors in the SMB segment are creating pressure, with some offering aggressive pricing.
- The company is still working on improving sales force productivity and has not yet reached optimal levels.
Good morning, and thank you for waiting. Welcome to Cielo's Q2 2024 earnings conference. Joining us today are Mr. Estanislau Bassols, Mr. Filipe Oliveira, and Mr. Daniel Diniz.
We'd like to inform you that this event is being recorded and live streamed via the Zoom platform and will be available for replay on the company's Investor Relations website, ri.cielo.com.br. Please note that the questions will be taken via audio on Zoom and will be answered shortly. (Operator Instructions).
Before we proceed, we would like to clarify that any statement made during this conference regarding Cielo's business outlook, projections, operational and financial goals are based on the company's management's beliefs and assumptions, as well as information currently available to Cielo. Forward-looking statements are no guarantee of performance.
They involve risks, uncertainties and assumptions, seeing as they refer to future events and, therefore, rely on circumstances that may or may not materialize. Investors and analysts must understand that general market conditions, the state of the industry
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