CI&T Inc(CINT)

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CI&T Inc(CINT) - 2023 Q3 - Earnings Call Transcript
2023-11-17 16:35
Financial Data and Key Metrics - Adjusted EBITDA margin reached 18.5% in Q3 2023, reflecting a lean organizational structure and operational optimization during a period of lower growth [5] - Cash from operating activities in the nine months of 2023 was BRL254 million, strengthening the financial position and providing flexibility for strategic investments [5] - Net revenue in Q3 2023 was BRL529 million, compared to BRL559 million in Q2 2022, with the variation mainly due to budget replanning from the top client and part of the acquired portfolio [10][24] - Adjusted net profit in the nine months of 2023 increased by 10.5% to BRL176 million from BRL159 million in the same period of 2022 [36] - Free cash flow, excluding CapEx, increased to BRL163 million in the nine months of 2023, significantly above the cash consumption of BRL81 million in the same period of 2022 [15] Business Line Data and Key Metrics - Over 20 of the largest clients are engaged with CI&T/FLOW, with more than 2,000 active users from CI&T and co-built clients utilizing the beta version [4] - The financial services segment contributed 29% to total revenue in the nine months of 2023, followed by consumer goods at 20% and technology/telecommunications at 18% [11][33] - The company successfully onboarded 40 new clients generating revenue exceeding BRL1 million in the last 12 months, serving as a catalyst for future growth [34] Market Data and Key Metrics - North America is the largest market, accounting for 44% of total revenue in the nine months of 2023, followed by Latin America at 41%, Europe at 10%, and Asia-Pacific at 5% [11][32] - Revenue share from the top client improved to 10% in 2023 from 16% in 2022, and the top 10 clients' revenue share improved to 42% from 52%, reflecting revenue stream diversification [12] Company Strategy and Industry Competition - The company is focusing on AI capabilities, particularly through CI&T/FLOW, to drive efficiency and customer experience, positioning itself for future growth [38][73] - The company is adopting a cautious approach in 2023, preparing for more aggressive growth in the coming years, with a focus on maintaining profitability and cash generation [14][38] - CI&T/FLOW is expected to contribute to winning new clients and expanding relationships with existing ones, with 20 of the largest clients already using the platform [82][87] Management Commentary on Operating Environment and Future Outlook - Management noted a cautious spending environment among clients due to macroeconomic factors but highlighted the push for digital transformation and AI-driven demand [40][41] - For Q4 2023, the company expects net revenue to be in the range of BRL519 million to BRL540 million, indicating stable sequential revenue [56] - The company is narrowing its 2023 FX neutral net revenue growth guidance to 4%-5% and maintaining an adjusted EBITDA margin expectation of at least 19% [38] Other Important Information - The company achieved a Golden Seal of Quality from the Brazilian GHG Protocol for its greenhouse gas emissions reporting, reflecting its commitment to environmental responsibility [7] - The leadership turnover rate remained at 4%, supporting high-quality service delivery and the development of a new generation of leaders [6] - The company has integrated sustainability into its operations through initiatives like the ESG powerhouse and collaborative projects with business units [8] Q&A Session Summary Question: Impact of top client's budget replanning - The decline in revenue from the top client was due to unexpected budget replanning, but the situation is now stable, with the client remaining a strategic partner [58] Question: Demand environment and outlook for 2024 - The demand environment is influenced by macroeconomic caution and AI-driven transformation, with new demand indicating growth across the board [40][41] - The company expects stable and strong Q4 performance, marking the start of sequential growth through 2024 [41] Question: International expansion and regional demand trends - Demand trends are similar across regions, with some sectors like tech being softer, while financial services and consumer goods remain strong [46] Question: Margin sustainability and pricing trends - Margins are expected to regain historical levels in the coming quarters, with cost management and AI-driven efficiency contributing to sustainability [63] Question: Utilization rate and acquisition integration - Utilization rates have remained high, and the company is forecasting continued high rates as growth resumes [108] - The integration of 2022 acquisitions is progressing well, with some acquired companies showing strong growth in client engagements [104] Question: Contribution of CI&T/FLOW to client acquisition and expansion - CI&T/FLOW is expected to drive efficiency and productivity, replacing competitors and creating opportunities for new AI-driven business use cases [73][94] Question: Capital allocation priorities - Capital is being allocated to debt service, R&D in AI, and share repurchases, with a focus on returning value to shareholders and preparing for future M&A [95][100]
CI&T Inc(CINT) - 2023 Q4 - Annual Report
2023-11-16 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report Of Foreign Private Issuer Pursuant To Rule 13a-16 Or 15d-16 Of The Securities Exchange Act Of 1934 CI&T Inc (Exact Name of Registrant as Specified in its Charter) Estrada Guiseppina Vianelli De Napoli, 1455 – C, Globaltech 13.100-000 - Brazil Campinas-State of São Paulo 13086-902 - Brazil +55 19 21024500 (Address of principal executive office)) Indicate by check mark whether the registrant files or will file annual reports under ...
CI&T Inc(CINT) - 2023 Q2 - Earnings Call Transcript
2023-08-18 20:53
CI&T Inc (NYSE:CINT) Q2 2023 Earnings Conference Call August 18, 2023 8:00 AM ET Company Participants Eduardo Galvao - Director of Investor Relations Cesar Gon - Founder and Chief Executive Officer Bruno Guicardi - Founder and President for North America and Europe Stanley Rodrigues - Chief Financial Officer Conference Call Participants Puneet Jain - JPMorgan Ernesto Gonzalez - Morgan Stanley Tyler DuPont - Bank of America Ashwin Shirvaikar - Citi Carlos de Legarreta - Itau BBA Eduardo Galvao Good morning. ...
CI&T Inc(CINT) - 2023 Q2 - Earnings Call Presentation
2023-08-18 12:24
| --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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. Since 2023 Reported Net Reven ...
CI&T Inc(CINT) - 2023 Q3 - Quarterly Report
2023-08-17 16:00
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 UNDERTHE SECURITIES EXCHANGE ACT OF 1934 CI&T INC (Translation of registrant's name into English) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Commission File Number: 001-41035 Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: CI&T Inc ITEM 1 New York - August 18, 2023 /Business Wire/ - CI&T (NYSE: CINT, "Company"), a global digital specialist, to ...
CI&T Inc(CINT) - 2023 Q1 - Earnings Call Transcript
2023-05-19 15:27
CI&T Inc (NYSE:CINT) Q1 2023 Earnings Conference Call May 19, 2023 8:00 AM ET Company Participants Eduardo Galvao - Investor Relations Director Cesar Gon - Founder and Chief Executive Officer Bruno Guicardi - Founder and President for North America and Europe Stanley Rodrigues - Chief Financial Officer Conference Call Participants Tyler DuPont - Bank of America Ashwin Shirvaikar - Citi Eduardo Galvao Good morning, and welcome to CI&T Earnings Call for the First Quarter of 2023. I am Eduardo Galvao, Investor ...
CI&T Inc(CINT) - 2023 Q1 - Earnings Call Presentation
2023-05-19 12:09
Cesar Gon Founder & CEO Eduardo Galvão IR Director investors.ciandt.com 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 diff ...
CI&T Inc(CINT) - 2023 Q2 - Quarterly Report
2023-05-18 16:00
For the month of May 2023 Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: TABLE OF CONTENTS CI&T Reports Solid Results in 1Q23 At the same time, I believe that we are on the verge of probably the most disruptive moment in the history of computers on Earth. AI is a transformative technology with real-world applications and rapid advancements. And we, at CI&T, are moving thoughtfully fast with our clients, co-creating the future in this ne ...
CI&T Inc(CINT) - 2022 Q4 - Annual Report
2023-03-28 16:00
Table of Contents ITEM 16. RESERVED 113 A. Audit Committee Financial Expert 113 113 113 114 114 114 114 114 114 115 115 115 115 | --- | |---------------------------------------------------------------------------| | | | B. Code of Ethics | | C. Principal Accountant Fees and Services | | D. Exemptions from the listing standards for audit committees | | E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers | | F. Change in registrant's certifying accountant | | G. Corporate governance | | ...
CI&T Inc(CINT) - 2022 Q4 - Earnings Call Transcript
2023-03-08 20:06
Call Start: 08:00 January 1, 0000 9:01 AM ET CI&T, Inc. (NYSE:CINT) Q4 2022 Earnings Conference Call March 8, 2023 08:00 ET Company Participants Eduardo Galvao - Head of Investor Relations Cesar Gon - Founder & Chief Executive Officer Bruno Guicardi - Director of Operations Stanley Rodrigues - Chief Financial Officer Conference Call Participants Ashwin Shirvaikar - Citi Tyler DuPont - Bank of America Puneet Jain - JPMorgan Cesar Medina - Morgan Stanley Eduardo Galvao Good morning, everyone. Welcome to CI&T ...