NEW YORK--(BUSINESS WIRE)--CI&T (NYSE:CINT), a leader in driving AI-powered digital transformation for global brands, will be showcasing its innovative solutions to advance the future of healthcare and life sciences at the 2024 HIMSS Global Health Conference taking place in Orlando, FL on March 11-15, 2024. CI&T partners with some of the largest pharmaceutical, consumer healthcare and medical device companies in the world to help create innovative digital experiences for patients and healthcare professiona ...

NEW YORK--(BUSINESS WIRE)--CI&T (NYSE: CINT, “Company”), an end-to-end digital transformation partner providing strategy, design and software engineering services to the world's leading brands, announces today that it will report its fourth quarter of 2023 and FY 2023 financial results before the market opens on March 7, 2024. Following the earnings release, CI&T's senior management team will host a video conference call to discuss the financial and operating results on the same day, March 7, at 08:00 AM E ...

Cesar Gon Founder & CEO | --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 541.8 1.2 36.4% 41.7 1.9 30.3 573.3 95.8 49.9 67.2 34.1 290.1 18.4% 63.3 10.1% In calculating Adjusted Gross Profit, we exclude cost components that are not related 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 e ...

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]

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 ...

Financial Data and Key Metrics Changes - The net revenue for Q2 2023 was BRL 507.1 million, a 9% increase compared to Q2 2022, with a 16% growth for the first half of 2023 totaling BRL 1,181.8 million [20][21] - Adjusted EBITDA for Q2 2023 was BRL 114.2 million, a 14% increase from BRL 100.4 million in Q2 2022, with an adjusted EBITDA margin of 20% [51][14] - Adjusted net profit for Q2 2023 was BRL 63.1 million, a 21% increase year-over-year, with an adjusted net profit margin rising to 11% from 10% in Q2 2022 [14][25] Business Line Data and Key Metrics Changes - Financial Services revenue increased by 5%, Consumer Goods by 6%, while Technology and Telecommunications saw a significant 66% growth, driven by acquisitions [21] - The adjusted EBITDA margin improved to 19.5% for the first half of 2023, attributed to operational optimization [24] Market Data and Key Metrics Changes - North America contributed 46% of total revenue in the first half of 2023, LATAM 40%, Europe 10%, and Asia Pacific 5% [48] - The number of clients with revenue exceeding BRL 20 million increased from 21 to 26, and those above BRL 10 million rose from 12 to 22 [50] Company Strategy and Development Direction - The company is focusing on artificial intelligence as a transformative technology, launching the CI&T/FLOW platform to enhance productivity and client engagement [13][4] - The strategy includes scaling AI capabilities across all clients and developing over 100 new AI agents [13] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the global economic environment but remains optimistic about capturing new demand driven by AI and hyper-productivity initiatives [54][27] - For Q3 2023, the company expects revenue to be at least BRL 545 million, reflecting a 2% decline year-over-year, with annual FX-neutral net revenue growth projected between 4% to 8% [27] Other Important Information - The company has maintained a lean organizational structure, with a focus on efficiency and high utilization rates [31][43] - Attrition rates improved to 10.5%, with leadership attrition at a low of 2.6%, indicating a strong work environment [44] Q&A Session Summary Question: When do demand trends begin to improve? - Management indicated that sequential growth is expected in Q4 2023, primarily driven by new bookings related to AI strategies [30] Question: Insights on new projects and AI engagements? - Management highlighted a growing number of use cases in various verticals, focusing on improving customer and employee experiences through generative AI [32] Question: What factors are influencing the demand outlook for the second half of the year? - The company noted that demand is impacted by budget planning from top clients, but anticipates recovery in 2024 [62][64] Question: Insights on LATAM performance and its impact on guidance? - Management clarified that LATAM is recovering faster than other regions, with the top client’s impact being a significant factor [94] Question: Expectations for M&A activity? - The company plans to resume M&A activities next year, focusing on organic growth while considering strategic acquisitions [97]

Financial Performance Highlights - CI&T achieved a Net Revenue Growth of 9% in 2Q23 compared to 2Q22, both on a reported and constant currency basis[18] - The Adjusted EBITDA Margin was 20% in 2Q23, compared to 191% in 2Q22[51] - Adjusted Net Profit Margin increased to 11% in 2Q23, up from 10% in 2Q22[36] - For 6M23, Net Revenue reached R$1,1818 million[57] - Adjusted EBITDA for 6M23 was R$2307 million, resulting in a 195% margin[77, 90] - Adjusted Net Profit for 6M23 was R$1303 million[79] Client and Revenue Metrics - The Average Net Revenue Retention Rate over the last 5 years is 123%[8] - The Net Revenue Retention Rate in 2022 was 126%[76] - North America accounts for 46% of the total Net Revenue[73] - LATAM accounts for 40% of the total Net Revenue[73] - The Technology and Telecommunications industry contributes 19% to the Net Revenue[73]

[2Q23 Earnings Release](index=3&type=section&id=2Q23%20Earnings%20Release) [Operating and Financial Highlights](index=3&type=section&id=Operating%20and%20Financial%20Highlights) CI&T achieved strong Q2 and H1 2023 growth, with net revenue and profit significantly increasing, alongside improved client metrics and cash flow Q2 2023 Financial Highlights (vs. Q2 2022) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Net Revenue (BRL) | 571.8M | 525.0M | +8.9% | | Net Profit (BRL) | 47.8M | 26.0M | +84.0% | | Adjusted EBITDA (BRL) | 114.2M | 100.4M | +13.8% | | Adjusted Net Profit (BRL) | 63.1M | 52.3M | +20.8% | | Adjusted EBITDA Margin (%) | 20.0% | 19.1% | +0.9 p.p. | | Clients > BRL 1M Revenue (LTM) | 183 | 127 | +44.1% | 6M 2023 Financial Highlights (vs. 6M 2022) | Metric | 6M 2023 | 6M 2022 | Change | | :--- | :--- | :--- | :--- | | Net Revenue (BRL) | 1,181.8M | 1,016.9M | +16.2% | | Net Profit (BRL) | 100.2M | 55.2M | +81.5% | | Adjusted EBITDA (BRL) | 230.7M | 184.9M | +24.8% | | Adjusted Net Profit (BRL) | 130.3M | 91.8M | +42.0% | | Operating Cash Flow (BRL) | 117.6M | (87.1M) | N/A | [Business Overview and Management Commentary](index=3&type=section&id=Business%20Overview%20and%20Management%20Commentary) Management emphasizes pioneering enterprise AI for digital transformation, supported by diversified revenue across geographies and key industry verticals - The company's strategic vision is to pioneer the enterprise adoption of Artificial Intelligence, aiming to enhance productivity, quality, and progress in a reliable and secure framework[7](index=7&type=chunk)[8](index=8&type=chunk)[31](index=31&type=chunk) Q2 2023 Revenue Breakdown | Breakdown | Percentage (%) | | :--- | :--- | | **By Geography** | | | North America | 45% | | Latam | 40% | | Europe | 10% | | Asia Pacific | 5% | | **By Industry** | | | Financial Services & Consumer Goods | Most relevant | | Technology & Telecommunications | Grew in relevance | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) Q2 2023 profitability improved, with higher Adjusted EBITDA and Net Profit margins driven by SG&A efficiency and reduced income tax expense - Adjusted EBITDA margin increased by **0.9 percentage points** to **20.0%** in Q2 2023, primarily due to lower SG&A expenses as a percentage of revenue[9](index=9&type=chunk) - Adjusted Net Profit margin grew by **1.0 percentage point** to **11.0%** in Q2 2023, mainly due to SG&A dilution and lower income tax expenses[11](index=11&type=chunk) - Income tax expense in Q2 2023 decreased by **37.3%** compared to Q2 2022, largely because of the amortization of goodwill for tax purposes[127](index=127&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) The company updated its 2023 full-year guidance, projecting net revenue growth and an Adjusted EBITDA margin of at least 19%, with Q3 revenue forecasts 2023 Full-Year Guidance | Metric | Guidance | | :--- | :--- | | Net Revenue Growth (Constant Currency) | 4.0% to 8.0% YoY | | Adjusted EBITDA Margin | At least 19% | - For Q3 2023, net revenue is expected to be at least **BRL 545 million** at constant currency, which translates to **BRL 525 million** on a reported basis, a **2% decline** compared to Q3 2022[120](index=120&type=chunk) [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) The Board authorized a share repurchase program for up to 1.5 million shares, with 640,148 shares repurchased by June 30, 2023 - A share repurchase program for up to **1.5 million** class A common shares was approved on May 17, 2023, and management expects to continue its execution[100](index=100&type=chunk) - As of June 30, 2023, the company held **640,148 shares** of its own shares, acquired for **BRL 18,476 thousand**, under the repurchase program[171](index=171&type=chunk) [Non-IFRS Financial Measures and Reconciliations](index=4&type=section&id=Non-IFRS%20Financial%20Measures%20and%20Reconciliations) Non-IFRS measures like Adjusted EBITDA and Net Profit are used to assess operational performance by excluding specific non-recurring items - Non-IFRS measures like Adjusted Gross Profit, Adjusted EBITDA, and Adjusted Net Profit are used to provide a better understanding of operational performance by excluding items like acquisition expenses, stock-based compensation, and certain depreciation/amortization[37](index=37&type=chunk)[39](index=39&type=chunk)[101](index=101&type=chunk) Reconciliation of Net Profit to Adjusted EBITDA (in BRL thousand) | Description | Q2 2023 (BRL thousand) | Q2 2022 (BRL thousand) | 6M 2023 (BRL thousand) | 6M 2022 (BRL thousand) | | :--- | :--- | :--- | :--- | :--- | | **Net profit for the period** | **47,839** | **25,999** | **100,222** | **55,222** | | Net financial cost | 18,482 | 17,533 | 38,451 | 34,245 | | Income tax expense | 11,298 | 18,016 | 23,021 | 33,330 | | Depreciation and amortization | 23,056 | 24,205 | 48,109 | 43,596 | | Stock-based compensation | 9,719 | (106) | 15,112 | 1,133 | | Acquisition-related expenses | 3,965 | 14,859 | 6,089 | 17,554 | | **Adjusted EBITDA** | **114,222** | **100,391** | **230,727** | **184,906** | Reconciliation of Net Profit to Adjusted Net Profit (in BRL thousand) | Description | Q2 2023 (BRL thousand) | Q2 2022 (BRL thousand) | 6M 2023 (BRL thousand) | 6M 2022 (BRL thousand) | | :--- | :--- | :--- | :--- | :--- | | **Net profit for the period** | **47,839** | **25,999** | **100,222** | **55,222** | | Acquisition-related expenses | 15,274 | 26,255 | 30,110 | 36,578 | | **Adjusted Net Profit** | **63,113** | **52,254** | **130,332** | **91,800** | [Unaudited Condensed Consolidated Interim Financial Information](index=11&type=section&id=Unaudited%20condensed%20consolidated%20interim%20financial%20information) [Consolidated Financial Statements](index=13&type=section&id=Consolidated%20Financial%20Statements) Unaudited 6M 2023 financial statements show stable assets, increased net profit, and a significant positive shift in operating cash flow [Statement of Financial Position](index=13&type=section&id=Statement%20of%20Financial%20Position) Total assets slightly decreased to BRL 2.82 billion, while equity increased to BRL 1.40 billion and liabilities decreased Key Balance Sheet Items (in BRL thousand) | Account | June 30, 2023 (BRL thousand) | Dec 31, 2022 (BRL thousand) | | :--- | :--- | :--- | | **Total Assets** | **2,817,991** | **3,026,763** | | Cash and cash equivalents | 149,232 | 185,727 | | Intangible assets and goodwill | 1,673,996 | 1,750,898 | | **Total Liabilities** | **1,421,207** | **1,688,584** | | Loans and borrowings | 863,354 | 974,231 | | **Total Equity** | **1,396,784** | **1,338,179** | [Statement of Profit or Loss](index=14&type=section&id=Statement%20of%20Profit%20or%20Loss) 6M 2023 net profit reached BRL 100.2 million on BRL 1.18 billion revenue, driven by growth and expense control Income Statement Summary (in BRL thousand) | Metric | 6M 2023 (BRL thousand) | 6M 2022 (BRL thousand) | | :--- | :--- | :--- | | Net Revenue | 1,181,824 | 1,016,887 | | Gross Profit | 399,767 | 346,393 | | Operating Profit | 161,694 | 122,797 | | **Net Profit for the period** | **100,222** | **55,222** | | Basic EPS (in BRL) | 0.75 | 0.42 | [Statement of Cash Flows](index=17&type=section&id=Statement%20of%20Cash%20Flows) 6M 2023 operating cash flow significantly improved to BRL 62.1 million, driven by profit and working capital management Cash Flow Summary (in BRL thousand) | Cash Flow Activity | 6M 2023 (BRL thousand) | 6M 2022 (BRL thousand) | | :--- | :--- | :--- | | Net cash from (used in) operating activities | 62,108 | (149,736) | | Net cash from investment activities | 48,731 | 225,143 | | Net cash used in financing activities | (144,427) | (115,042) | | **Net decrease in cash and cash equivalents** | **(33,588)** | **(39,635)** | [Notes to the Financial Statements](index=19&type=section&id=Notes%20to%20the%20Financial%20Statements) Notes detail revenue by service, industry, and geography, alongside financial risk management strategies and loan covenant compliance [Net Revenue (Note 19)](index=33&type=section&id=Net%20Revenue%20(Note%2019)) Software development drives 95% of 6M 2023 revenue, with financial services and North America as leading segments Net Revenue by Type - 6M 2023 (in BRL thousand) | Service Type | Revenue (BRL thousand) | % of Total | | :--- | :--- | :--- | | Software development | 1,124,217 | 95.1% | | Software maintenance | 32,815 | 2.8% | | Consulting | 20,736 | 1.8% | | Other | 4,056 | 0.3% | | **Total** | **1,181,824** | **100%** | Net Revenue by Industry Vertical - 6M 2023 (in BRL thousand) | Industry | Revenue (BRL thousand) | % of Total | | :--- | :--- | :--- | | Financial services | 333,814 | 28.2% | | Consumer goods | 238,149 | 20.2% | | Technology and telecommunications | 229,187 | 19.4% | | Retail and industrial goods | 143,913 | 12.2% | | Life sciences | 127,668 | 10.8% | | Others | 109,093 | 9.2% | | **Total** | **1,181,824** | **100%** | - The top client represented **11%** of total net revenues as of June 30, 2023, a decrease from **16%** in the same period of 2022, indicating reduced client concentration[173](index=173&type=chunk) [Intangible Assets and Goodwill (Note 10)](index=24&type=section&id=Intangible%20Assets%20and%20Goodwill%20(Note%2010)) Intangible assets and goodwill totaled BRL 1.67 billion, with no impairment indicators identified for the period Intangible Assets and Goodwill (in BRL thousand) | Asset | June 30, 2023 (BRL thousand) | Dec 31, 2022 (BRL thousand) | | :--- | :--- | :--- | | Customer relationship | 257,875 | 288,943 | | Goodwill | 1,387,979 | 1,432,894 | | Other Intangibles | 28,143 | 29,062 | | **Total** | **1,673,996** | **1,750,898** | - Management concluded that no impairment indicator for intangible assets and goodwill was identified for the six-month period ended June 30, 2023[145](index=145&type=chunk) [Financial Instruments and Risk Management (Note 24)](index=38&type=section&id=Financial%20Instruments%20and%20Risk%20Management%20(Note%2024)) The company manages market, credit, and liquidity risks through hedging strategies, counterparty analysis, and cash flow projections - The Group uses non-derivative financial instruments (USD-denominated debt) as a cash flow hedge against the foreign exchange risk of its highly probable future export revenues in U.S. dollars[218](index=218&type=chunk) - The Group is transitioning from LIBOR to alternative rates like SOFR for its financial instruments and has implemented appropriate fallback clauses[188](index=188&type=chunk)[214](index=214&type=chunk) - Credit risk is managed by holding cash and financial investments with bank counterparties rated from **BB- to A+** by Standard & Poor's[231](index=231&type=chunk)

Financial Data and Key Metrics Changes - The company's net revenue for Q1 2023 was BRL610 million, representing a 24.3% increase at constant currency year-over-year [6][28] - Adjusted EBITDA margin improved to 19.1%, up 1.9 percentage points compared to Q1 2022 [6][16] - Adjusted net profit reached BRL67 million, a 70% increase from Q1 2022, with an adjusted net profit margin of 11% [6][31] - Cash generated from operating activities was BRL116 million, indicating a 100% cash conversion to adjusted EBITDA [55] Business Line Data and Key Metrics Changes - The company added 70 new clients with annual revenue exceeding BRL1 million, increasing the total to 180 clients [6][15] - The number of clients with revenue above BRL20 million rose from 22 to 26 [15] - The attrition rate decreased to 12% from 16% in Q1 2022, with leadership attrition below 4% [24] Market Data and Key Metrics Changes - North America accounted for 46% of revenue, Europe contributed 9%, and Asia Pacific 5%, totaling over 60% from mature economies [14] - LATAM represented 39% of revenue, highlighting exposure to emerging markets [14] Company Strategy and Development Direction - The company is focused on maximizing growth opportunities in the U.S. market following the acquisition of NTERSOL, particularly in the financial services sector [11] - Brazil remains a key market due to its significant tech potential and progressive consumer base [12] - The company aims to enhance its capabilities in artificial intelligence and digital efficiency to drive future growth [22][54] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment, noting that while clients are maintaining digital budgets, there is a cautious approach to new initiatives [56] - The company expects revenue for Q2 2023 to be at least BRL570 million, projecting a year-over-year growth of 90% [34] - For the full year, the company maintains a net revenue growth guidance of 13% to 17% and an adjusted EBITDA margin expectation of at least 19% [34] Other Important Information - The Board of Directors approved a share buyback program for up to BRL1.5 million of Class A shares over the next 12 months [17] - The company is committed to maintaining a lean organizational structure while investing in AI initiatives [54] Q&A Session Summary Question: Demand assumptions for 2023 guidance - Management indicated that the guidance reflects a cautious outlook due to macroeconomic uncertainties, with expectations for a stable demand environment [42] Question: Profitability amid labor cost increases - The improvement in EBITDA margin was attributed to the dilution of SG&A expenses as the company grows, while closely monitoring costs [44][45] Question: Cash generation expectations for the remainder of the year - The company expects cash conversion from EBITDA to be around 50% to 70% for the full year, with Q1 showing 100% conversion [81][100] Question: Impact of AI on margins and internal processes - Management emphasized the commitment to applying AI for internal efficiency while also investing in AI capabilities for future growth [92][93]

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 ...