NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Nuvini Group Limited (Nasdaq: NVNI) ("Nuvini" or the "Company"), Latin America's leading serial acquirer of B2B SaaS companies, today announced the official launch of NuviniAI Lab, a dedicated internal program designed to accelerate artificial intelligence ("AI") adoption across its portfolio companies, unlock operational efficiencies, and foster scalable, repeatable AI innovation. The Lab builds on the success of Nuvini's broader AI initiative and introduces a st ...

Core Insights - The NuviniAI program is a strategic initiative aimed at accelerating AI adoption and digital transformation within Nuvini, showcasing its commitment to becoming a leader in enterprise-grade AI integration [1][10][12] - The program has demonstrated significant ROI, with an average return of 523% and a payback period of 4.2 months, validating AI as a key growth driver [2][12] Program Overview - Launched in June 2025, the NuviniAI program received ten project submissions, highlighting the company's focus on embedding innovation and operational efficiency through technology [2][12] - The program's success aligns with Nuvini's vision of leveraging AI for measurable business results and scalability [2][12] Finalist Projects - AIMÊ, an intelligent public tender analysis tool, achieved a 1400% ROI and a payback period of 6 months, processing over 2,050 tenders with 75% response accuracy [4] - Business Scout, an automated acquisition intelligence platform, has a database of over 3 million companies and promises a payback period of 6 months, enhancing M&A decision-making [5] - LeadIA, an AI marketing assistant, serves over 10,000 accounts and is expected to increase user activation by 35% and reduce churn by 20%, with a payback period of 3 months [6] Industry Context - The NuviniAI program is launched at a pivotal moment in the Brazilian technology landscape, where AI adoption is essential for survival rather than just a competitive advantage [10][12] - The SaaS sector is undergoing significant transformation driven by AI integration, with companies investing heavily in AI-enhanced products [11][12] Future Outlook - The success of the NuviniAI program lays a foundation for ongoing innovation and positions the company for future growth opportunities [13][14] - The initiative provides a replicable framework for future technology projects, contributing to Nuvini's competitive positioning in the global market [14]

Core Insights - Nuvini Group Limited is experiencing growth through strategic acquisitions and operational improvements, highlighted by the acquisition of Munddi, which enhances its B2B SaaS ecosystem in Latin America [1][2] - The company is focused on increasing operational efficiency and revenue growth through disciplined cost management and the implementation of AI initiatives [3][4] Acquisition Strategy - The acquisition of Munddi is part of a broader strategy involving four planned acquisitions this year, aimed at creating synergies and cross-selling opportunities within Nuvini's portfolio [2] - Nuvini has a strong M&A pipeline and anticipates further accretive acquisitions in the near future [2] Operational Performance - Nuvini reports continued strength in recurring revenues and disciplined cost management, with AI initiatives already reducing overhead by 8% [3] - The company expects further margin enhancement as its AI and shared services platforms scale [3] AI Initiatives - Nuvini is advancing its AI initiatives through the NuviniAI challenge, which has identified ten high-potential projects, with three expected to launch by the end of the year [4] - The implementation of AI-first products is planned for the third quarter, enhancing the company's service offerings [4] Leadership and Management - Gustavo Usero has been appointed as the new Group Operating Director, bringing experience in value creation and integration strategies to enhance operational excellence [5] - The focus of the new leadership includes strengthening budgeting discipline, expanding EBITDA margins, and implementing performance management frameworks [5] Company Overview - Nuvini is a leading acquirer of B2B SaaS companies in Latin America, focusing on profitable, high-growth businesses with strong recurring revenue [7] - The company's long-term vision is to create value through strategic partnerships and operational expertise [7]

Summary of NuVini Group Limited (NVNI) Conference Call - May 22, 2025 Company Overview - **Company**: NuVini Group Limited (NVNI) - **Industry**: Software as a Service (SaaS) in Latin America, specifically Brazil - **Business Model**: Acquires profitable, cash-generating B2B SaaS companies, focusing on niche markets similar to Constellation Software's approach [2][8][12] Core Insights and Arguments - **Market Position**: NuVini is positioned as a unique M&A platform in the Latin American SaaS market, which is currently valued at $9.2 billion and expected to double by 2030 [12][13] - **Growth Metrics**: - Organic growth of approximately 14% last year - EBITDA margin at 26% with a 30% growth in EBITDA [11][20] - 20,000 customers with no single customer contributing more than 0.25% of revenue [10][22] - **Acquisition Strategy**: - Focus on established, profitable companies rather than startups - Targeting companies with annual revenues between 10 to 30 million reais (approximately $2 to $6 million) [30] - Current acquisition multiples range from 4 to 6 times EBITDA [43] - **Financial Performance**: - Achieved first operating profit recently - Adjusted EBITDA increased by 30% [20][37] - 72% conversion ratio from EBITDA to cash, indicating strong cash flow generation [37] Industry Dynamics - **Market Growth**: The Latin American SaaS market is growing faster than the global average due to being underserved, with significant opportunities for companies transitioning from traditional methods (e.g., Excel) to SaaS solutions [13][14] - **Economic Environment**: - High interest rates in Brazil (14.5%) are creating a lack of liquidity and a unique acquisition environment, as no IPOs have occurred since 2021 [26][27] - The current economic climate is seen as an opportunity for NuVini to acquire companies at favorable terms [59] Additional Important Points - **Management Team**: The management team has extensive experience in tech and investments, enhancing the company's ability to execute its strategy [38][39] - **Investor Value Proposition**: NuVini offers investors access to a diversified portfolio of profitable SaaS companies in Latin America, emphasizing predictable revenue streams [20][22] - **Future Reporting Plans**: The company plans to transition from annual to quarterly reporting to enhance transparency and visibility for investors [48] - **Market Perception**: The company believes it is undervalued compared to peers due to a lack of visibility and understanding of its business model as a capital allocator rather than a traditional software company [65][66] Conclusion NuVini Group Limited is strategically positioned to capitalize on the growing SaaS market in Latin America through a disciplined acquisition strategy, strong financial performance, and a focus on creating value for both investors and acquired companies. The current economic environment presents unique opportunities for growth and expansion.

Core Insights - Nuvini Group Limited has successfully completed the acquisition of Munddi, marking the first of four planned acquisitions in 2025 as part of its expansion strategy in Latin America [1][2] - The acquisition aims to create new synergies that will drive revenue growth and enhance Nuvini's ecosystem of B2B SaaS solutions [1][2] Company Overview - Nuvini is a leading acquirer of private B2B SaaS companies in Latin America, focusing on profitable, high-growth businesses with strong recurring revenue [4] - The company is headquartered in São Paulo, Brazil, and aims to foster an entrepreneurial environment to help its portfolio companies scale [4] Munddi Overview - Munddi, founded in 2015, is an online platform that connects brands with consumers, suppliers, and retail chains, helping small retailers acquire new customers [3] - The platform provides strategic insights and facilitates online product sourcing from regional suppliers, streamlining connections in the retail supply chain [3] Strategic Goals - Nuvini's CEO emphasized the importance of the Munddi acquisition in unlocking cross-selling opportunities within its ecosystem, particularly in retail and supply chain solutions [2] - The company expects to close three additional acquisitions by the end of the year, further enhancing its position as a leading B2B SaaS solutions provider in Latin America [2]

Financial Data and Key Metrics Changes - The company reported a top line revenue increase of 14.4% and EBITDA growth of 30% for 2024 [18][19] - Net cash from operating activities increased to 38,600,000 reais, marking a substantial rise [18] - The company achieved its first operating profit since inception five years ago, indicating consistent historical growth in top line and improved margins [19][22] Business Line Data and Key Metrics Changes - The company has acquired seven companies across different segments, with a diversified client base of 22,000 clients, where no single client represents more than 0.25% of total revenue [13][14] - The average revenue per user increased to 8,500.0 reais, and the lifetime value of clients grew by 50% [20][21] - The company has maintained a high recurring revenue rate of 90% and low churn rates across its portfolio [20][21] Market Data and Key Metrics Changes - The total IT spend in Brazil is approximately $9.2 billion, driven by the digital transformation of small and medium businesses [11] - Brazil represents 44% of the market, with plans to expand into Mexico, Colombia, Chile, and Argentina over time [12] - The SaaS market in Latin America is growing at twice the pace of the rest of the world, presenting significant opportunities [13] Company Strategy and Development Direction - The company focuses on acquiring multisector SaaS businesses that are established, profitable, and have growth potential, differentiating itself by targeting companies too small for private equity [6][7] - The management team has a clear acquisition strategy, having evaluated over 2,500 companies since inception, emphasizing the predictability and diversification of revenue [23][40] - A partnership with Oracle is anticipated to enhance AI capabilities, driving efficiencies and margin expansion [20][46] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the current market conditions, noting a lack of IPOs in Brazil and high interest rates, which create favorable acquisition opportunities [9] - The company aims to utilize cash flow for acquisitions while maintaining operational efficiency, with a focus on EBITDA and cash flow generation as primary KPIs [34][43] - Management acknowledged the challenges of compliance with Nasdaq, including notifications regarding market cap and stock price, and outlined plans to address these issues [36][39] Other Important Information - The company has a strong governance structure, being audited by a top four auditing firm and utilizing Oracle for operational governance [26] - Employee churn has been reduced by 60% after companies are integrated into the NuVini portfolio, indicating effective management practices [25] Q&A Session Summary Question: How should success be tracked? - Management emphasized the importance of cash flow generation, EBITDA, and revenue diversification as key performance indicators [34][35] Question: What is the plan to stay compliant with Nasdaq? - Management acknowledged concerns regarding market cap and stock price, stating efforts are underway to improve compliance [36][39] Question: Does the growing pipeline impact acquisition criteria? - Management confirmed that while the pipeline is expanding, the criteria for acquisitions remain firm, focusing on revenue predictability and diversification [40][41] Question: What is management's view on the current share price? - Management stated that the market will ultimately determine the stock price, while they continue to execute operationally [42] Question: What are the capital allocation priorities? - Management clarified that excess cash generated by profitable companies is allocated for acquisitions and related expenses [43] Question: What are the current capital needs outside of acquisitions? - Management indicated that operational needs are minimal, with a focus on servicing existing obligations [44] Question: What role does AI play in the portfolio? - Management highlighted the importance of implementing AI solutions for various operational efficiencies and announced a partnership with Oracle to enhance these capabilities [46]

Financial Data and Key Metrics Changes - The company reported a top line revenue increase of 14.4% for 2024, with EBITDA growth of 30% [21] - Net cash from operating activities reached 38.6 million reais, marking a substantial increase [21] - The company achieved its first operating profit since inception five years ago, indicating consistent historical growth in top line and improved margins [22] Business Line Data and Key Metrics Changes - The company has acquired seven companies across different segments, with a diversified client base of 22,000 clients, none representing more than 0.25% of total revenue [15][16] - The average revenue per user increased to 8,500.0 reais, and the lifetime value of clients grew by 50% [23][24] - The company has maintained a high recurring revenue rate of 90% and low churn rates across its platform [23][24] Market Data and Key Metrics Changes - The total IT spend in Brazil is approximately 9.2 billion dollars, driven by the digital transformation of small and medium businesses [13] - The SaaS market in Latin America is growing at twice the pace of the rest of the world, with Brazil representing 44% of the market [14][15] - The company plans to expand into other Latin American markets such as Mexico, Colombia, Chile, and Argentina over time [14] Company Strategy and Development Direction - The company focuses on acquiring multisector SaaS businesses that are growing or profitable, positioning itself as an M&A platform in the SaaS segment [8][9] - The management team emphasizes a clear investment thesis with a focus on cash flow generation and operational efficiency [12][25] - A partnership with Oracle is expected to enhance AI capabilities, driving efficiencies and margin expansion [23][48] Management's Comments on Operating Environment and Future Outlook - The management highlighted the current high interest rates in Brazil and the lack of IPOs as opportunities for acquisitions [11] - The company aims to utilize cash flow for further acquisitions while maintaining a focus on improving EBITDA margins [25][44] - Management expressed confidence in executing operational strategies to enhance market position and stock performance [43][44] Other Important Information - The company has a thorough due diligence process for acquisitions, focusing on predictable cash flow and revenue quality [27][41] - The management team has extensive experience in both operational and investment roles, contributing to the company's strategic direction [32][34] Q&A Session Summary Question: How should success be tracked? - The company emphasizes cash flow generation, EBITDA, and revenue diversification as primary KPIs [36] Question: What is the plan to stay compliant with Nasdaq? - The company is addressing notifications regarding market cap and stock price, with plans for operational execution to improve compliance [38][40] Question: Does the growing pipeline impact acquisition criteria? - The company prioritizes revenue predictability and quality in its acquisition criteria as the pipeline grows [41][42] Question: Management's view on current share price? - Management refrains from commenting on stock price, focusing instead on operational execution [43] Question: What are the capital allocation priorities? - The company allocates excess cash generated from profitable companies for acquisitions and related expenses [44] Question: Current capital needs outside of acquisition pipeline? - The company has minimal operational needs apart from M&A activities, with a debenture reduced from 12 million to about 4 million [45] Question: Role of AI in driving efficiencies? - The company is actively implementing AI solutions for various operational aspects and has plans for a major partnership with Oracle [48]

Core Insights - Nuvini Group Limited reported record FY24 revenue of R$193.3 million, representing a 14.4% increase from R$169.0 million in FY23, driven by higher SaaS subscription revenue and improved customer retention [1][6] - The company achieved its first operating profit of R$16.5 million, a significant turnaround from a loss of R$(189.2) million in FY23 [1][6] - Adjusted EBITDA rose to R$57.4 million, marking a 30% increase compared to R$44.3 million in FY23 [1][6] - Nuvini plans to complete a minimum of four acquisitions in 2025 as part of its expansion strategy [5] Financial Highlights - Gross profit increased to R$122.5 million with a margin of 63.4%, up from R$102.8 million and 60.8% in FY23 [6] - Adjusted free cash flow improved to R$22.5 million, an increase of R$31.9 million compared to the previous year [6] - Cash and equivalents at year-end were R$18.0 million, up from R$11.4 million at the end of FY23 [6] - Churn rate improved to (2.9)% from (3.3)% in FY23, indicating better client satisfaction [6] Strategic Developments - The company announced the acquisition of Munddi, an online platform connecting brands with consumers, suppliers, and retail chains in São Paulo, Brazil, which is expected to close in Q2 2025 [3][4] - This acquisition is part of a broader strategy to enhance profitability and expand the revenue base through targeted acquisitions [4]

Financial Performance - Nuvini reported net losses of R$78.2 million, R$247.9 million, and R$114.2 million for the years ended December 31, 2024, 2023, and 2022, respectively, with a working capital deficit of R$348.3 million as of December 31, 2024[73]. - Nuvini's net operating revenue for the year ended December 31, 2024, grew 14%, from R$169.0 million in 2023 to R$193.3 million in 2024[81]. - Nuvini's future profitability may take time to achieve, as it continues to incur significant expenses and losses during its growth phase[73]. - The company has incurred an increasing amount of debt in recent years to support acquisitions, impacting its financial flexibility[242]. - Nuvini's financial performance may be significantly affected by general economic conditions and fluctuations in currency exchange rates[246]. Client Retention and Revenue Risks - As of December 31, 2024, 97.1% of clients renewed their subscriptions to Nuvini Group services or products every month, compared to 96.7% in 2023 and 95.4% in 2022[91]. - Nuvini S.A.'s future revenue flow is uncertain due to clients' ability to terminate engagements at any time, potentially leading to significant revenue loss[92]. - If a significant number of clients reduce their usage of Nuvini's SaaS solutions, the company may need to increase sales and marketing expenditures, adversely affecting its financial condition[93]. - Demand for Nuvini's SaaS solutions may fluctuate due to economic conditions, affecting clients' capital spending and, consequently, Nuvini's revenue[106]. Growth Strategy and Acquisitions - Nuvini plans to continue acquiring other SaaS businesses to expand into new markets in Latin America, with a focus on Brazil[77]. - Nuvini has completed seven acquisitions since its inception and aims to integrate these businesses while maintaining their independent operations[79]. - Nuvini's growth strategy is dependent on the successful identification and acquisition of suitable SaaS business candidates[77]. - The company faces risks related to its rapid growth, including potential strains on management and operational capabilities[81]. Cybersecurity and Data Protection - The Nuvini Group's proprietary data platform processes and stores sensitive data, making it vulnerable to security breaches that could harm its reputation and demand for its services[117]. - Cybersecurity threats, including ransomware and phishing attacks, are prevalent and increasing, posing significant risks to the Nuvini Group's operations and client data security[118]. - Security breaches could lead to litigation, regulatory actions, and significant liabilities, adversely affecting the Nuvini Group's business operations[121]. - The Nuvini Group may incur additional costs to comply with increasing cybersecurity demands from clients, which could affect its financial performance[127]. Intellectual Property and Legal Risks - The Nuvini Group's inability to protect its proprietary technologies could adversely affect its competitive position[135]. - The Nuvini Group's intellectual property rights may not provide adequate protection in jurisdictions with less stringent laws, impacting its competitive position[144]. - The Nuvini Group may face significant legal expenses and operational delays due to claims of infringement against its proprietary technology[138]. - The Nuvini Group's businesses could be adversely affected by unauthorized use of its proprietary technology, which may be difficult to police[135]. Economic and Political Environment - The Nuvini Group's business is significantly impacted by the economic conditions in Brazil, which has experienced uneven growth and mild recessions recently[156]. - Ongoing political instability and corruption investigations in Brazil have led to a decline in market confidence, adversely affecting the Nuvini Group's business and share prices[161]. - Economic and political uncertainties in Brazil may lead to adverse effects on the Nuvini Group's operations and the trading prices of its shares[159]. - The Brazilian government's fiscal reforms are uncertain, which may adversely impact Nuvini's business and financial condition[164]. Compliance and Regulatory Risks - The Nuvini Group's consolidated effective income tax rate could be adversely affected by changing tax laws and interpretations[203]. - The Nuvini Group may face increased exposure to regulatory actions and fines if unable to lawfully transfer personal data from the EEA[197]. - The evolving nature of privacy and data protection laws may require the Nuvini Group to expend significant resources to adapt to changes[202]. - The Nuvini Group operates in jurisdictions with high corruption risks and must comply with anti-corruption laws, which if violated, could result in significant liabilities[220]. Internal Controls and Financial Reporting - Nuvini has identified material weaknesses in its internal control over financial reporting, which could result in material misstatements in future financial statements[229]. - Nuvini expects to incur approximately US$1.0 million on remediation efforts to address identified material weaknesses in internal control over financial reporting in fiscal year 2025[235]. - The company plans to hire accounting and finance personnel with public company reporting experience to strengthen its internal controls and compliance[232]. - Nuvini's management has concluded that its internal controls over financial reporting were not effective as of December 31, 2024[229]. Debt and Financing - Approximately 97.5% of Nuvini's loans and borrowings were subject to floating interest rates as of December 31, 2024, primarily linked to the CDI floating rate[170]. - Nuvini's ability to generate sufficient cash flow from operations is critical to service its debt obligations, which may limit its operational flexibility[252]. - Non-compliance with financial covenants may lead to defaults, potentially resulting in accelerated debt obligations and adversely affecting cash flows and liquidity[257]. - The Company requested waivers for covenant violations on December 13, 2024, and April 24, 2025, which were granted by debenture holders, alleviating concerns regarding potential early debt maturity[255][256].

Core Points - Nvni Group Limited is not in compliance with Nasdaq Listing Rule 5550(a)(2) and 5550(b)(2) regarding minimum bid price and market value of listed securities [1][2] - The company has been granted a 180-calendar day compliance period until October 13, 2025, to regain compliance [2][3] - If noncompliance persists, the company may qualify for a second 180-calendar day compliance period under certain conditions [3][4] Company Overview - Nuvini is a leading acquirer of private SaaS B2B companies in Latin America, headquartered in São Paulo, Brazil [5] - The company focuses on acquiring profitable SaaS companies with a consolidated business model, recurring revenue, positive cash generation, and growth potential [5] - Nuvini aims to create value through long-term partnerships with the management of its acquired companies [5]