Q2 2024 Totvs SA Earnings Call (English, Portuguese) Transcript
Key Points
- Totvs SA (TTVSY) reported a 20% year-on-year increase in consolidated net revenue for Q2 2024, up from 17% in Q1.
- The SaaS and cloud segments showed strong performance, with SaaS revenue growing by 33% year-on-year.
- Adjusted EBITDA for the quarter was BRL296 million, a 15% increase compared to Q2 2023, with an EBITDA margin of 22.2%.
- The company achieved significant advancements in AI, which are already being implemented in their operations.
- Totvs SA (TTVSY) issued debentures totaling BRL1.5 billion to lengthen the gross debt profile, demonstrating strong financial management.
- The adjusted EBITDA margin saw a year-on-year reduction of 90 basis points, primarily due to inflation impacts on personnel costs and expenses.
- Recent acquisitions have profitability below the company average, affecting overall margins.
- There was a 170 basis point drop in adjusted EBITDA margin quarter-on-quarter, attributed to seasonal declines and higher investments.
- The gross margin faced pressure year-over-year, indicating potential cost management challenges.
- The company faces risks and uncertainties related to general economic conditions and industry factors that could impact future performance.
Good morning, everyone. Welcome to our second-quarter of 2024 earnings video conference. I am Sergio Serio, Head of Investor Relations. And with me today are Dennis, CEO; and Maia, our CFO. (Operator Instructions) Before proceeding, we would like to clarify that statements made during this video conference regarding business prospects, projections, and operations, and financial goals of TOTVS are beliefs and assumptions of the management and are based on currently available information.
Forward-looking statements are not guarantees of performance. They involve risks, uncertainties, and assumptions as they pertain to future events and, therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operational factors may affect TOTVS' future performance and may lead to results that differ materially from those forward-looking statements. Now, I will hand it over to Dennis for his opening remarks, and then we will have our Q&A session.
| 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
